Time Saving Automation Feature of Dynamics 365 Business Central

Automation of Intercompany Transaction

With the release of Dynamics365 Business Central Microsoft has enhanced the traditional Dynamics NAV application platform with many features and functionalities, which help Dynamics 365 Business Central grow as a modern solution for modern businesses.
This article is designed to exhibit the new feature of “Automation of Intercompany Transaction” in Dynamics 365 Business Central.

What is Intercompany Transaction?

Intercompany business processing describes business transactions which take place between two companies/legal entities belonging to one parent organization. In simple terms one entity is selling the goods and another entity is purchasing it within same the same parent company.

Why Intercompany Transaction in ERP System?

When any organization consist of a number of different legal entities, and finds itself short staffed to handle financial activities related to different internal legal entities, intercompany functionality lets you do business with different internal legal entities.

Traditional/Manual Intercompany Functionality of Microsoft Dynamics NAV

Intercompany functionality has been available since Microsoft Dynamics NAV 4.0 release. It had to be manually managed till NAV 2017, and was a time consuming activity. During manual process business user needed to ensure both the parties (whoever is involved in Intercompany Sales & Purchase transactions) were provided with the accurate record of these transactions.

Automated Intercompany Functionality of Dynamics 365 Business Central

After Microsoft Dynamics NAV 2018 and later release of Dynamics 365 Business Central we get Automated Intercompany functionality within the system. It improves the efficiency of an organization by automating this process and ensures that both the parties receive an appropriate record of these transactions.

Here I will highlight the new automation feature of Intercompany functionality in Dynamics 365 Business Central and its main business benefits. To understand the complete process of Intercompany functionality of Dynamics 365 Business Central Click Here.

The highlighted configuration in the below images is what makes the Automation possible for the Intercompany transactions.

Intercompany Setup Window

This Auto. Send Transactions allows the automatic transaction flow between intercompany entities.  

Intercompany Partners List Window

This AUTO. ACCEPT TRANSACTIONS specifies that transactions from this intercompany entity are automatically accepted.

After it is enabled these new configuration in Dynamics 365 Business Central, it ensures that both the parties receive the appropriate invoices every time a transaction is made without individual manual process.


1.Increased productivity as a result of time saved and simplified transactions
2.Minimized error potential with one-time entry of information and system-wide, automated updates
3.Complete audit trail and full visibility into business activities and transaction histories
4.Efficient, cost-effective transactions with affiliate and subsidiary companies.

Jaymesh Shah

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