Intercompany purchase - Inventory not updating

  • 27 November 2022
  • 3 replies

Userlevel 3

Hi Team,

Recently , I have tried posting Intercompany purchase process. I have created PO and triggered the SO then shipment also completed. When I checked the “Inventory summary” inquiry I couldn’t find the movement of inventory from one company to another company.

Actually, Purchasing company will receive the inventory and the selling company inventory will be reduced by the quantity which is in the sales order.

Please let me know the issue here.

Thanks in Advance.



Best answer by nithyashankar 1 December 2022, 16:03

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3 replies

Userlevel 7
Badge +16

Hi @nithyashankar71 

Are you doing a transfer? What are the actual steps you are taking? I think we need a bit more detail here. 

On your Sales Order Preferences, do you have Automatically Release IN documents checked?


Userlevel 3

Hi Kbetty,

Thanks for your response.

I have already checked the posting settings in the Sales order Preference.

Let me narrate the steps followed in the process testing.

  1. Creation of Purchase order to Company A from B.
  2. In Company B, I required a material which is available in Company A.
  3. Once the PO is released, Click on Generate Sales Order option to create the Sales order
  4. Once the sales order is created and released.
  5. Shipment is confirmed
  6. Then Purchase request is triggered and released.
  7. Once released both the shipment and Purchase request, Batch was created.
  8. Meanwhile, I have checked the “Inventory Summary” inquiry to check the movement of material(stock item). I have found in company A, qty reduced but in the Company B qty was not increased.
  9. Even, I have completed the invoice for AP, AR no changes happened.

Did I miss any steps in performing the Purchase process of Intercompany.

Userlevel 3

Hi Kbetty,


I tried again with the steps which were mentioned by me earlier, now I can able process the intercompany flow successfully. The only change I made is updating the default warehouse for the vendor and customer Data.




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