Walkthrough: How to process a purchase invoice for intercompany expense.


Dynamics NAV ODT IC (Intercompany Addon)


In Dynamics NAV the ODT intercompany addon extends the functionality of NAV to accommodate for the configuration and posting of a purchase document (Expense Line) in a source company to pay on behalf of another company and transfer the expense to the target.


About This Walkthrough

This walkthrough is a step-by-step guide to demonstrate how to record an inter-company expense using ODT inter-company addon. This walkthrough illustrates the following tasks:

  • Create a purchase invoice with an intercompany expense line.
  • Post the resulting target intercomp journal batch 
  • Navigate the resulting transaction in the original source company.



To complete this walkthrough, you will need:


  •  Simon, the Accountant at CRONUS company A, pays the expense on behalf of CRONUS company B.


Create the purchase invoice to the target company

Simon creates a creates a purchase invoice for advertising expenses on behalf of Cronus company B.


To create the purchase invoice

  1. Browse or search to find Departments/Financial Management/Payables/Purchase Invoices
  2. Use the New action to start a new invoice.
  3. Select "Buy-from Vendor No." 10000, London Postmaster.
  4. Enter the "Vendor Invoice No." as yymmddhhmm (as an integer using 24 hour clock) to avoid duplicate vendor invoices in the trial company.  i.e. 12/31/15 7:40 pm as "1512311940"
  5.  Enter the line using a type "G/L Account", InterCompany as the target company, using G/L Account No. 61100
  6. Enter the line quantity and direct Unit Cost Excl. Tax
  7. Select the line button, Dimensions and enter the Dimension Code of DEPARTMENT and the Dimension Value Code of SALES
  8. When complete, post the purchase invoice


  Sales transactions are recorded the same way.

Review and Post resulting Intercompany Journal Batch

Simon must now review and post the resulting General Journal transactions created in the target comanies "INTERCOMP" batch.


To review and post the resulting journal batch.

  1. Change companies to the target company.  For assistance see How to Select a Company
  2. Browse to Departments/Financial Management/General Ledger.
  3. Select the batch "INTERCOMP"
  4. Review and Post the journal.


 There are warnings displayed if you attempt to modify the resulting journal line as the source is a posted intercompany transaction and modifying could result in a unbalanced intercompany journal if not respected.

There are setup options that allow for the "Auto-Posting" of the intercompany batch when the selected/allowed user (via user setup) is created and granted the auto-post action.


How to review the resulting posted GL transactions from the source company

  1. Select and open the source company.
  2. Browse to the Posted Purchase Invoices.
  3. Sort and find your latest posted purchase invoice.
  4. Use the Navigate action button to find the resulting posted transactions.
  5. Select the related G/L Entry lines and use the Show Related Entries or drill down on the No. of Entries to view the resulting IC G/L Transactions in both the source and target companies.


See Also



<Links to other otherwalkthroughs to be added>