Introduction

This document describes the process of setting up new subsidiaries and the companies itself.

Prerequisites

Before subsidiaries can be setup and defined, the actual legal companies need to exist in the Business Central tenant. The following areas needs to be setup in each legal company:

• Chart of accounts
• General Posting Setup
• VAT Posting Setup
• Customer Posting Groups
• Vendor Posting Groups
• Inventory Posting Groups
• Dimensions
• General Journals
• Item Journals
• Inventory Journals

On top of this a customer card and a vendor card are required for each subsidiary. These needs to be setup in the virtual operations company.

Walk through

Subsidiaries are only required in the virtual operations company. To create subsidiaries, follow the steps below:

1. Start by searching for "Intercompany Logistix Setup".
2. Click the "Subsidiaries"-button in the upper part of the setup page.
3. The list of subsidiaries are displayed on the screen.
4. Click "New" to create a new subsidiary.

Where are the subsidiaries used?

Subsidiaries equals ownership. It tells the intercompany process who is owning the current transaction and the corresponding stock. In order for that to work the following entities needs to be assigned a subsidiary:

• Customers
• Vendors
• Locations
• Items (if setup with ownership on item)

Customers, vendors and locations without subsidiary will not be accepted in postings. If the same vendor is used by different subsidiaries, these need to be setup as duplicated vendors with separate subsidiaries.