1. Business Scenario

Process Overview:

The current intercompany process involves transactions between two legal entities: MHNZ (New Zealand) and MHDE (Germany). The process follows a direct delivery model where MHNZ creates a Sales Order, and MHDE creates a corresponding Purchase Order.

Issue Statement:

Once the Sales Order invoice is posted in MHNZ, users manually extract the invoices and send them to MHDE for manual Purchase Order invoicing.

This manual process is time-consuming, especially when handling high transaction volumes.

The risk of missing invoice postings increases during month-end financial close, leading to operational inefficiencies and potential financial reconciliation issues.

Expected Outcome:

The system should automatically post the Purchase Order invoice in MHDE as soon as the Sales Order invoice is posted in MHNZ.

This automation would streamline intercompany processing, reduce manual effort, and improve financial accuracy.

2. Current System Limitation

After thorough investigation, we identified that D365 FnO does not currently support automatic status updates for intercompany Purchase Orders to "Invoiced" when the corresponding Sales Order is invoiced.

Findings:

No direct system functionality exists to automate the intercompany invoicing process between two legal entities.

Batch jobs and FIN team consultation confirmed that available automation options are limited and do not fully support periodic intercompany tasks.

Manual intervention remains necessary, causing delays and errors in financial reporting.

3. Proposed Enhancement

Feature Request:

Enable an automated intercompany invoice posting mechanism in D365 FnO, where:

Once a Sales Order invoice is posted in one entity, the system automatically triggers the corresponding Purchase Order invoice posting in the other entity.

The system should allow configuration for legal entities to enable/disable this automation based on business needs.

A monitoring dashboard or log should track automatic postings for transparency and troubleshooting.

4. Priority & Business Impact

Given the high transaction volume and criticality of intercompany financial accuracy, this enhancement is highly beneficial for businesses operating in multiple legal entities.

We kindly request the PG team to consider this enhancement request for future updates to D365 FnO. If feasible, we would appreciate any guidance on potential roadmap inclusion or alternative solutions within the product framework.

Thank you for your time and consideration. Please let us know if additional information or use case details are required.

Best Regards,