Intercompany
Transactions between two legal entities of the same group, accounted for separately in each company's books and eliminated on consolidation.
Intercompany transactions are sales, purchases, payments, or transfers that happen between two legal entities within the same corporate group. Each entity records its side independently — a sale in one company is a purchase in the other — and the matched balances are eliminated on group consolidation so they don't double-count revenue or inventory. Business Central supports intercompany posting between linked companies in the same database. Dynamics 365 Finance scales it across hundreds of legal entities with shared chart-of-accounts policies, intercompany payments, and intercompany inventory transfers. Both products produce the intercompany ledger entries needed for group consolidations.