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POs split across entities

  • 1.  POs split across entities

    Posted Jan 10, 2019 11:45 AM
    ​Hi,
    Does anyone have any tips on managing/creating purchase orders when different lines need to be allocated to different entities? We currently create separate POs in each entity but this causes issues when we receive 1 invoice for the purchase.  Is there a way to setup intercos when creating the PO?
    Thank you!
    Ilana

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    Ilana Azancot
    PSP Investments
    Montreal QC
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    AXUG Summit - Post


  • 2.  RE: POs split across entities

    TOP CONTRIBUTOR
    Posted Jan 11, 2019 02:17 AM
    Hi Ilana,

    Legal entities in D365 are supposed to represent separate legal entities in real life, separate companies.
    As such , technically, and from a strictly legal point of view - one company cannot create a single invoice for multiple other companies/legal entities.

    That's why the way D365 is designed, a purchase order can only be feeding into a single company/legal entity.

    Can you tell more about your core setup?
    What does a D365 company represents in your particular use of Dynamics?
    Maybe it would be possible to think about a creative idea.

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    Zvika Rimalt
    Functional Consultant
    Vancouver BC
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  • 3.  RE: POs split across entities

    TOP CONTRIBUTOR
    Posted Jan 14, 2019 01:37 AM
    Edited by Zvika Rimalt Jan 14, 2019 01:38 AM
    If indeed these are separate legal entities, in my opinion, from accounting/legal point of view you need to record the invoice to the one company to which the invoice was issued to (I do believe that's a legal requirement).
    The company recording the invoice is the company holding the legal liability to the vendor

    Then, using inter-company journal transactions you would distribute the costs from the single company to all the legal entities sharing that cost.


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    Zvika Rimalt
    Functional Consultant
    Vancouver BC
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    AXUG Summit - Post


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