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SAP Business One · Intercompany

Multi-company, multi-entity: make the group auto-linked and consolidation-ready

Internal trade auto-generates, master data is shared, and intercompany balances post automatically — SAP Business One (B1) Intercompany builds the base for multi-entity coordination and group consolidation. Built for group-structured and IPO-bound companies.

OVERVIEW

Overview

SAP Business One's Intercompany module addresses the duplicate data entry and master-data inconsistencies that arise when transactions span multiple companies. It can automatically replicate corresponding transactions across multiple company databases and synchronize master data such as items, business partners, and the chart of accounts, with branch and consolidation companies configured through a management console. This significantly reduces the manual effort of maintaining intercompany balances and consolidated reports, keeps data consistent across multiple entities, and simplifies multi-company operations.

The 5 real pains this module solves

Internal trades keyed twice

When one subsidiary sells to another, the sales and purchase documents are entered by hand in two company databases — duplicated work that rarely reconciles.

Master data done separately

The same item or customer is coded differently in each company; the group wants one definition but the numbers don’t line up.

Intercompany reconciliation by hand

Receivables and payables between related companies are checked manually at month-end with back-and-forth emails — slow and error-prone.

Consolidation is manual labor

Reports from multiple entities are aggregated by hand and intercompany trades eliminated manually — one group report takes days.

No group-wide view

Leadership wants the whole group at a glance but has to wait for each company to report and then stitch Excel together — always lagging.

Core capabilities

Multi-Company

  • Manage multiple entities & databases
  • Internal sales ↔ purchase auto-generation
  • Shared & distributed group master data
  • Intercompany pricing & trade rules

Intercompany Balances

  • Auto-posted intercompany AR/AP
  • Automatic related-party reconciliation
  • Internal allocation & cost distribution
  • Multi-currency internal settlement

Consolidation & View

  • Foundation for group consolidation
  • Intercompany elimination support
  • Group-level operating view
  • Multi-entity permission isolation

How it connects to other modules

Intercompany weaves separate companies into one network — a single internal trade carries its documents, balances and group view along automatically.

Subsidiary A sales orderAuto-creates subsidiary B PO
Group master dataDistributed to each entity
Intercompany tradeAuto-posts intercompany entries
Each entity’s reportsRoll up to group view

Typical use by scenario

ScenarioHow Intercompany is used
Group ManufacturingProduction sites and sales companies are separate; internal supply auto-generates documents, and the group sees through to plant-level cost.
Trade / Distribution GroupStock transfers and internal settlement between regional subsidiaries are automated; the group sees inventory and balances in one place.
IPO / Group ReadinessStandardize intercompany trade and consolidation under a multi-entity structure, building a traceable group ledger for audit and listing.

FAQ

Is Intercompany the same as “multiple databases”?
Not quite. Multiple databases is the base — each legal entity keeps its own books. Intercompany sits on top, automating internal trade, master-data sharing and related-party reconciliation across companies, and laying the base for consolidation. In short: multiple databases is “each on its own”; Intercompany is “automatically linked”.
Can internal sales and purchases really auto-generate?
Yes. Under Intercompany, when subsidiary A raises a sales order to subsidiary B, the system can auto-create the matching purchase order in B’s database, cutting double entry and mismatches. MTC configures the rules to your group structure.
Does it produce group consolidated statements directly?
Intercompany lays the data foundation for consolidation (unified master data, identifiable and eliminable intercompany trades); how statements are produced depends on group structure and accounting standards. MTC plans a pragmatic consolidation flow with the finance module and your consolidation rules.

Book an Intercompany demo

Let an MTC consultant show how multi-company internal trade auto-generates and how it sets the base for consolidation and IPO readiness.

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