About intercompany orders

When you create an intercompany sales order, Microsoft Dynamics AX automatically creates a corresponding purchase order. Similarly, creating an intercompany purchase order prompts the automatic creation of a corresponding intercompany sales order.

This is true for both two-legged orders (transactions between two related companies) and for most three-legged companies (when an intercompany transaction originates with a sales order for an external customer).

Example

You have two related companies. Company A is a sales subsidiary, and Company B is a distribution unit. Intercompany sales orders and purchase orders are created automatically in the following scenarios:

  • When Company A creates a purchase order and the vendor is Company B, an intercompany sales order is created automatically in Company B. The two-legged order chain consists of a purchase order in Company A and an intercompany sales order in Company B.

  • When Company B creates a sales order and the customer is Company A, an intercompany purchase order is automatically created in Company A. The two-legged order chain consists of a purchase order in Company B, and an intercompany purchase order in Company A.

  • When Company A first creates a sales order for an external customer, a purchase order can be created automatically in Company A, which in turn prompts the automatic creation of an intercompany sales order in Company B. The three-legged order chain consists of a sales order in Company A, a purchase order in Company A derived from that sales order, and an intercompany sales order in Company B.

About intercompany return orders

You can return intercompany items much like ordinary returns. However, with intercompany items, the return order from the external customer creates an intercompany purchase order. This is turn leads to the automatic creation of an intercompany sales return order. You can also return an intercompany item without an external customer return order.

Intercompany return orders, like regular return orders, are initiated in the form.

For more information about creating intercompany return orders, see Return an intercompany item.

See Also