Microsoft Dynamics AX 2012 Intercompany – Principal Company Model (Part2)

Please find references to Part1 and Part3 below
Part1 - Setup and Configuration: http://ax2012manufacturing.blogspot.com/2013/09/microsoft-dynamics-ax-2012-intercompany.html
Part3 - Security and Development: http://ax2012manufacturing.blogspot.com/2013/09/microsoft-dynamics-ax-2012-intercompany_12.html

Creation

 

Now as we completed all necessary configuration we can create original Sales order in Sales company

 

Original Sales order in ICS (Sales company)

 

 

Please note that "Allow intercompany orders" [V] and "Direct delivery" [V] checkmarks have been marked based on default settings we provided on customer level

 

Address

 

 

The address has been propagated from customer to Sales order properly as well

 

Next we add Sales line for the product we sell

 

Original Sales order in ICS (Sales company)

 

 

And you will notice Intercompany chain button in the ribbon which I introduced to automatically generate entire 5 legs Intercompany chain. I'll explain how it was implemented a little later, but for now we will just press notice Intercompany chain button and the system will do the magic for us

 

Infolog

 

 

As you can see the system automatically generated entire 5 legs Intercompany chain which consists of original Sales order in ICS (Sales company), Intercompany Purchase order in ICS (Sales company), Intercompany Sales order in ICP (Principal company), Intercompany Purchase order in ICP (Principal company) and Intercompany Sales order in ICM (Manufacturing company)

 

Now let's review the components of Intercompany chain to appreciate the Supply Chain transparency

 

Original Sales order in ICS (Sales company)

 

 

From here you can navigate to

 

Intercompany Sales order -> Intercompany Sales order in ICP (Principal Company) Purchase order -> Purchase order in ICS (Sales Company)

 

Intercompany Purchase order in ICS (Sales Company)

 

 

Address

 

 

Please note that the address was properly propagated throughout Intercompany chain

 

Intercompany Purchase order in ICS (Sales Company)

 

 

From here you can navigate to

 

Intercompany Sales order -> Intercompany Sales order in ICP (Principal Company) Original Sales order -> Original Sales order in ICS (Sales Company)

 

Inventory transactions in ICS (Sales Company)

 

 

Intercompany Sales order in ICP (Principal Company)

 

 

Address

 

 

Please note that the address was properly propagated throughout Intercompany chain

 

Intercompany Sales order in ICP (Principal Company)

 

 

From here you can navigate to

 

Intercompany Sales order -> Intercompany Sales order in ICP (Principal Company) Original Sales order -> Original Sales order in ICS (Sales Company) Purchase order -> Purchase order in ICS (Sales Company) Intercompany Purchase order -> Intercompany Purchase order in ICM (Manufacturing Company)

 

Intercompany Purchase order in ICP (Principal Company)

 

 

Address

 

 

Please note that the address was properly propagated throughout Intercompany chain

 

Intercompany Purchase order in ICP (Principal Company)

 

 

From here you can navigate to

 

Intercompany Sales order -> Intercompany Sales order in ICM (Manufacturing Company) Original Sales order -> Intercompany Sales order in ICP (Principal Company)

 

Inventory transactions in ICP (Principal Company)

 

 

Intercompany Sales order in ICM (Manufacturing Company)

 

 

Address

 

 

Please note that the address was properly propagated throughout Intercompany chain

 

Intercompany Sales order in ICM (Manufacturing Company)

 

 

From here you can navigate to

 

Original Sales order -> Intercompany Sales order in ICP (Principal Company) Intercompany Purchase order -> Intercompany Purchase order in ICP (Principal Company)

 

Inventory transactions in ICM (Manufacturing Company)

 

 

Execution

 

Entire 5 legs Intercompany chain has been generated by one click, this is great!

 

Now before we ship goods to the customer we have to produce the product. In order to do that, you can first do MRP and create Production order linked to Sales order line in Manufacturing company. I'll take some time and do Master plans setup in Manufacturing company now 

 

Master Plan in ICM (Manufacturing Company)

 

 

Please note that I specified Firming time fence in order to auto-firm generated Planned Production orders. Another option would be to execute Intercompany MRP which will execute MRP processes in each company. For these purposes I'll enable "Include downstream planned intercompany demand" [V] on the Master plan

 

Intercompany planning

 

 

This is how you can execute MRP locally in Manufacturing company

 

Master Scheduling in ICM (Manufacturing Company)

 

 

In case you want to execute Intercompany MRP you will have to define Intercompany Planning Group which will include all companies involved as shown below

 

Intercompany Master Planning Group

 

 

Then you can execute Intercompany MRP specifying Intercompany Planning Group and number of iterations required

 

Intercompany Master Scheduling

 

 

Once you've done MRP the Production order will be created

 

Production order

 

 

This Production order will be linked to Sales order line in Manufacturing company and appropriate marking will exist in inventory transactions

 

Inventory transactions in ICM (Manufacturing Company)

 

 

We'll then go through the lifecycle of Production order until we End it

 

Production order – End

 

 

Inventory transactions in ICM (Manufacturing Company)

 

 

Once we produced the product we can now ship it to the customer. We'll do that by posting Packing Slip for Intercompany Sales order in ICM (Manufacturing company). Please note that because we've set up the system for automatic Packing Slip posting for entire Intercompany chain, the system will actually post Packing Slips and Receipt Lists for all Sales orders and Purchase orders in Intercompany chain automatically

 

Intercompany Sales order – Packing slip (Manufacturing company) [Trigger]

 

 

Intercompany Purchase order – Receipt list (Principal company)

 

 

Intercompany Sales order – Packing slip (Principal company)

 

 

Intercompany Purchase order – Receipt list (Sales company)

 

 

Intercompany Sales order – Packing slip (Sales company)

 

 

Inventory transactions in ICM (Manufacturing Company)

 

 

Inventory transactions in ICP (Principal Company)

 

 

Inventory transactions in ICS (Sales Company)

 

 

The last step will be to post Invoice for Intercompany Sales order in ICM (Manufacturing company) which will trigger Invoice posting for all Sales orders and Purchase orders in Intercompany chain automatically

 

Intercompany Sales order – Invoice (Manufacturing company) [Trigger]

 

 

Intercompany Purchase order – Invoice (Principal company)

 

 

Intercompany Sales order – Invoice (Principal company)

 

 

Intercompany Sales order – Invoice (Sales company)

 

 

Intercompany Purchase order – Invoice (Sales company)

 

 

Inventory transactions in ICM (Manufacturing Company)

 

 

Inventory transactions in ICP (Principal Company)

 

 

Inventory transactions in ICS (Sales Company)

 

 

Now we have all orders in Intercompany chain processed with the minimum effort as well as all inventory transactions have been consistently updated.

 

This concludes Principal Company Model functional scenario!

 

Please learn more about Principal Company Model by reviewing the materials of Ernst & Young International Tax Seminar 2012 Switzerland here: http://www.ey.com/Publication/vwLUAssets/Swiss-tax-seminar-presentation-2012-en/$FILE/Swiss-tax-seminar-presentation-2012-en.pdf

Please find references to Part1 and Part3 below
Part1 - Setup and Configuration: http://ax2012manufacturing.blogspot.com/2013/09/microsoft-dynamics-ax-2012-intercompany.html
Part3 - Security and Development: http://ax2012manufacturing.blogspot.com/2013/09/microsoft-dynamics-ax-2012-intercompany_12.html