Microsoft Dynamics® AX 2012
Intercompany Trade
Visibility and integration are crucial elements for ensuring excellent customer service in a global
supply chain.
Microsoft Dynamics AX 2012 enables globally dispersed manufacturing sites, distribution centers, and
sales subsidiaries to act as one unified organization. It improves accuracy, reduces operational cost,
and improves productivity of employers by linking order chains, eliminating repetitive data entry, and
ensuring full transparency within the supply chain network.
Real-time creation and update of intercompany order chains ensures that data is always up to date in
all legal entities and is always synchronized.
Built-in configuration capabilities ensure that every organization can design internal process controls
to fit its needs.
DEFINING INTERCOMPANY TRADING POLICIES
Microsoft Dynamics AX 2012 intercompany trade supports a variety of business processes
by allowing each legal entity to define intercompany trading policies.
Transfer pricing can be determined by utilizing out-of-the-box trade agreements, cost
price plus markup, or intercompany purchase/sales agreements.
Value mapping utilizes out-of-the-box shared tables such as products, zip codes, and
units of measure. For tables that are not shared, different mapping techniques are
offered. There is no secret precondition that requires natural keys to be the same in all
legal entities.
Prices are defined and maintained by the purchasing or selling legal entity or both.
Principles for automatic allocation of landed cost can be defined.
Serial and batch numbers can be synchronized automatically or upon request.
In drop shipment scenarios, you can decide whether the intercompany-selling
company should be allowed to update and issue a packing slip and invoice for the
original sales order when processing an intercompany sales order.
A legal entity can be defined as a dimensional entity and ensure traceability of
intercompany trade-related entries in the general ledger.
The intercompany feature set can be utilized for intracompany purposes as well for
inter-department trading if policies require this.
Formalized payment processes can be defined, or payment to settle outstanding
amounts can simply be made directly to intercompany due-to and due-from accounts
in the general ledger.
Defining
intercompany policies
CREATING INTERCOMPANY PURCHASE ORDERS AND PURCHASE AGREEMENTS
Microsoft Dynamics AX 2012 supports a number of ways to create purchase orders. The
buying agent does not need to know whether a purchase order is an intercompany
purchase order or just a normal purchase order for an external vendor. This is controlled
by a predefined setting on the vendor account and ensures that intercompany sales
orders are created automatically.
An intercompany purchase order or an intercompany purchase agreement is a type of
ordinary purchase order or purchase agreement. Intercompany purchasing fully utilizes
the capabilities within the purchase order module and no special setup or special routines
need to be learned in order for the buying agent to work with Microsoft Dynamics AX
intercompany trade.
Microsoft Dynamics AX 2012 supports the creation of intercompany purchase orders in
the following ways:
Automatic creation of intercompany purchase orders and intercompany sales orders
when purchase requisitions, purchase request-for-quote replies, planned purchase
orders, sales order drop shipment, project item requirements, and purchase
agreements call-off orders are approved.
Synchronization of intercompany purchase agreements. Call-off of intercompany
purchase agreements is synchronized with call-off of intercompany sales agreements.
Full support of return scenarios.
Automatic synchronization of commercial information, such as quantities, price,
discounts, delivery dates, delivery addresses, and others between intercompany
purchase order and sales order.
One-point access to process-state information for all orders in a chain.
Full visibility into on-hand across legal entities.
Automatic search for price and discounts in purchasing or selling company. It is
defined per intercompany relation whether price and discount are controlled by the
purchasing or selling company.
Process state for all
orders in chain
PROCESS ORDERS IN AN INTERCOMPANY ORDER CHAIN
Out-of-the-box policies combined with company-specific policies determine behavior
when processing orders in an intercompany chain.
Microsoft Dynamics AX ensures that intercompany purchase orders that participate in
three-legged drop shipment chains cannot perform a product receipt, because product
receipt must be controlled by the issuing of a packing slip from the intercompany sales
order.
Requested receipt dates on intercompany sales orders are controlled by intercompany
purchase orders and the confirmed receipt date is controlled by the intercompany sales
order.
Order chains are constantly synchronized and all orders in the chain are up to date
with the most resent information.
Chain update of the process state between orders linked in intercompany chains is
automatic. An example in a three-legged drop shipment chain could consist of an
original sales order, an intercompany purchase order, and an intercompany sales
order. The processing of the sales order packing slip for the intercompany sales order
will automatically update the process state of the intercompany purchase order to
“received” and the original sales order to “delivered.”
Users can utilize documentation from orders down the chain when updating the
process state for orders up the chain. For example, the intercompany sales orderpacking slip can be utilized when the product receipt is updated, ensuring data
consistency between the legal entities operating the chain.
Outstanding invoices can be settled by using a variety of methods, ranging from
traditional payment processes to fully automated settlement of outstanding invoices.
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make
business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and
streamlining financial, customer relationship and supply chain processes in a way that helps you drive business success.
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