Currently the intercompany module only allows one currency to be used for an intercompany partner, but in reality, intercompany partners might use multiple currencies. Please adjust Business Central to allow creating multiple intercompany partner codes for a single entity, with a currency specified for each (e.g., PARENTCO-USD, PARENTCO-CAD, SUBSIDIARY-USD, SUBSIDIARY-CAD).
Ideas Administrator

The Intercompany Posting feature lets you set up IC partners as vendors/customers, hence will allow you to carry out your business transactions in currencies. 

The Currency Code for the IC Partner is only used to default in IC Gen. Journal postings, and you can overwrite it in journal lines.

Best regards,
Brian Nielsen
Business Central Team



Hi Brian, I think this deserves another look as I think you do not understand the issue. BC only allows one IC partner code per entity, so you can set up all the vendors and customers you want, but the IC functionality will only work with one of them (I'm referring specifically to IC cost allocation.). That means all intercompany transactions between those partners, regardless of currency or whatever, will also be directed to the same accounts. This causes an issue with different currency transactions. While you can specify the currency on the transaction itself, that will be overridden by whatever currency is selected on the IC partner setup. The system then forgets the original currency.

Here's an example: Partner A and B routinely allocate purchase invoices in both CAD and USD. Only one currency can be selected on the IC partner setup though, so let's say USD. Now move forward to the point where there's a 100 CAD cost allocated. After posting, BC forgets it was in CAD and now thinks the original transaction was in USD (likely because of the IC setup). Now when we run the FX adjustment, it will keep the USD balance as is, despite the FX rate changing. This is apparent when using CAD as an additional reporting currency. The CAD amount is updated (incorrect) but the USD balance remains the same (also incorrect).

Does this make sense?

Category: Financial Management