Does Dynamics NV Support the Automation of Intercompany Transactions?

Our research with MSFT resellers indicates that, out the box, NAV does not support the automation of intercompany due to/from entries when processing interco transactions (e.g. a central vendor invoice or a central payroll JE that needs to be charged to various subsidiaries). My client has around 100 subs and this will grow to 200 soon.

MSFT resellers state that a customization (available from some resellers) is required to automate this ad that this is how they solve it for clients who need this functionality.

If you have experience solving this, I'd welcome your comments on:

1. does the customization work automatically? i.e. can the entry post in both companies' ledgers automatically, assuming the user has permission to work in both companies?

2. are there any gotchas to look out for (e.g. at a version upgrade, using foreign currency invoices, subs in foreign currency, etc)

Answers

Keith Perry Director of Global Accounting • June 25, 2012

Len,

When we launched this, the answer was "no" from a NAV perspective and from a process perspective.
-Process: we had separate gatekeepers (and only 3 GLs, not 200). Automation would have bypassed the gatekeepers so would have been a process violation.
-Tech: we didn't pursue in too much detail, but my understanding was that any interaction between the GLs was static, not active. For example a consolidation would create a new, static DB that had limited click-thru because it was not a live combination of the other GLs. This lack of active interaction went to the transaction level.

With our license, we couldn't have more than one company open at a given time, so what you're asking would have required something out of the ordinary (multiple live sessions, for example). This gives me pause about how such a function could work.

Note that while there are good reasons for this approach, the lack of transaction-level integration meant that eliminations, when they didn't work, was a manual process. It wasn't like reconciling a bank account (which would be really nice, MSFT!). For this reason we consolidated and checked our interco's separately, and had a periodic process for posting them (tied to our monthly close process).

We were on separate currencies; NAV handled that brilliantly. Postings were in the main currency (typically USD) and NAV handled the conversion and posted the variance itself.

Cheers,

Len Green Performance Improvement Consultant and ERP Strategist • June 26, 2012

Keith - that's great insights, thanks.
Len

Nick Sinigaglia SVP • July 6, 2015

Len, I hope this isn't too late. I used Dynamics in my last role and we found that a third party plug-in was the best solution. Specifically, we used Nolan Intercompany. It requires some setup, and if you don't have an intercompany segment to your GL, it may require some extra effort, but it did take care of automatically recording the other side of an intercompany transaction. For reference, we had about 80 entities. Again, it requires a fair amount of setup and a logical and consistent set of rules. We did continue to perform intercompany reconciliation, but they were more efficient at that point.

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Does Dynamics NV Support the Automation of Intercompany Transactions?

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