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365 Finance Architec

Automated Accounting Part 6, Entangled Customers and Vendors

Updated: Aug 29, 2023



Now why would we want to do that ?

Well... this is an introductory setup for processing D365 Intercompany Purchase and Sales Orders: Entangled Vendors and Customers


In this scenario, D365 Legal Entity US02 will buy from D365 Legal Entity US01.

We will create a Vendor in US02 to buy from US01, and

we will create a Customer in Us01 to sell to US02.


We will use a smart numbering for the Vendor and the Customer.

V for Vendor, C for Customer, followed by the digits 99 (to force them to the bottom of the Vendor and Customer master lists). We will end the smart Vendor and Customer numbers with the corresponding Chart of Accounts number to facilitate validation of the the related Vendor and Customer Posting Profiles (see step 6).

Example V99.290001 C99.190002


1. Chart of Accounts

Create the following Accounts.

Notice that the Main Accounts end with digits that correlate to the Legal Entity ID.

General ledger > Chart of Accounts > Accounts > Main Accounts (New)

  • 190002, IC PO/SO Receivable US02, Asset

  • 290001, IC PO/SO Payable US01, Liability


2. Groups

Create a new Vendor Group

US02 \ Accounts payable > Setup > Vendor groups

  • IC, Intercompany


Create a new Customer Group

US01 \ Accounts receivable > Setup > Customer groups

  • IC, Intercompany


3. Create Vendor and Customer


Create the following vendor, in company US02, with a user assigned vendor number.


US02 \ Accounts payable > Vendors > All vendors (new)

  • Vendor # = V99.290001,

  • Vendor name = US01 Legal Entity Name,

  • Vendor group = IC


Create the following customer, in company US01, with a user assigned customer number.


US01 \ Accounts receivable > Customers > All customers (new)

  • Customer # = C99.190002

  • Customer name = US02 Legal Entity Name

  • Customer group = IC


4. Entangle the Vendor

Go back to company US02 and open up vendor V99.290001


Within the new vendor, go to > General > Intercompany to setup the trading relationship.



Setup the Trading Relationship for the US02 Vendor like the exhibit.

Note: you are choosing the US01 customer that you setup above.


5. Entangle the Customer

Go back to company US01 and open up customer C99.190002


Within the new customer, go to > General > Intercompany to setup the trading relationship.


Notice, because you already activated the trading relationship, the setup is already done,

The Intercompany Vendor and the Intercompany Customer are now entangled.


Exhibit: US01 Customer, C99.190002


6. Posting Profiles

Let us round off today's blog with Vendor and Customer Posting Profiles


This will point any transactions we setup in later sessions to the appropriate Intercompany Payable / Intercompany Receivable accounts on the Trial Balance


Setup posting profiles in the proper Legal Entity.


US02 \ Accounts payable > Setup > Vendor posting profiles

Choose the General posting profile and "Add"

Account code = Table

Account / Vendor group = V99.290001

Summary account = 290001


US01 \ Accounts receivable > Setup > Customer posting profiles

Choose the General posting profile and "Add"

Account code = Table

Account / Vendor group = C99.190002

Summary account = 190002


Notice how easy it is to visually validate the proper combination of accounts.

(290001 and 190002)


In subsequent blogs we will dive into policies and integration with inventory.

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