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Project Accounting Intercompany Transactions Overview in D365 and AX 2012 R2 CU7

By Julissa Cortez, Senior Dynamics AX Consultant, Arbela Technologies

The project management and accounting module provides functionality that allows you to loan resources from one legal entity to another. This is accomplished by allowing the lending company resources to post time for the services performed and expenses incurred from the lending company on a project that belongs to the borrowing company as shown in the diagram below.

From within the lending company, after transactions are recorded via intercompany timesheets and/or expense management for the project, the lending company will issue an intercompany customer invoice to the borrowing company.  Once completed, the intercompany Invoice gets posted generating a vendor invoice within the borrowing company which can be reviewed and posted.  When the vendor invoice is posted, it will hit the project subledger.  This means the project within the borrowing company is recording the transactions which will then be visible under the project transactions. 

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