Hi team,

Subject: Feature Request: Intercompany Indirect Process Across Three Legal Entities

1. Description of the Request:

A customer has requested an enhancement to the intercompany functionality in Dynamics 365 SCM to support a more flexible and indirect process flow across three legal entities (e.g., DRU (USA), DRN (ALK), and DRT (LPN)).

Specifically, they would like to introduce a setting that allows manual intervention at the DRN entity for processes like "Manually Post Packing" and "Manually Post Sales Invoice", instead of relying on automatic processes throughout the intercompany chain. This manual control at the DRN stage would allow the organization to align with operational needs and compliance requirements in certain scenarios.

2. Current Behavior:

In the current intercompany functionality:

• Intercompany purchase orders and sales orders are automatically created and processed between entities.
• Automatic actions, such as posting product receipts, packing slips, and sales invoices, are typically performed for seamless intercompany operations.
• There is limited support for breaking this automated flow for indirect manual steps within intermediate legal entities.

In the customer's scenario, manual intervention at DRN is crucial for operational flexibility and compliance requirements.

3. Expected Functionality:

The customer envisions the following enhancements:

• New Setting: Add an "Indirect Process" configuration option within intercompany settings to enable manual steps for specific legal entities within the chain.
• Example: DRN (ALK) handles manual processes for packing slips and sales invoices while maintaining automatic processes for the DRU (USA) and DRT (LPN) entities.
• This setting should be configurable on a per-entity or per-transaction basis.
• Customizable Workflow: Enable manual steps (e.g., posting) at intermediate entities (e.g., DRN) without disrupting the overall intercompany automation flow.
• Enhanced Visibility: Improve tracking and synchronization of manual and automatic processes across all entities in the chain, ensuring transparency and accuracy in the intercompany transactions.

4. Benefits of the Enhancement:

1. Operational Flexibility:

• Allows intermediate legal entities to control critical processes manually, aligning with their internal workflows.

1. Compliance Support:

• Ensures entities can meet local compliance requirements where manual intervention is necessary.

1. Scalability:

• Supports more complex intercompany scenarios involving multiple legal entities with varying process requirements.

1. Customer Satisfaction:

• Builds trust and confidence in the Dynamics 365 SCM intercompany functionality as a flexible and robust solution for real-world scenarios.

5. Business Case (Example Flow):

1. Entity DRU (USA):

• Creates a sales order for the end customer.
• Automatically creates a purchase order to DRN (ALK) as the vendor.

1. Entity DRN (ALK):

• Automatically creates a sales order to DRU (USA).
• Manually posts packing slip and Manually posts sales invoice for DRU, as required by local compliance or business rules.

1. Entity DRT (LPN):

• Processes production and updates on-hand stock.
• Automatically creates and completes subsequent intercompany processes, including shipping and invoicing.

This approach ensures seamless integration while allowing manual control at key points.

Let me know if additional details or clarifications are required. This feature would greatly enhance intercompany usability and address real-world customer needs.

I'm looking forward to hearing from you soon!