Multi-entity accounts payable means running supplier bills for several companies, each with its own books, from one team.
What Dynamics 365 Finance does on its own
Finance supports intercompany accounting between legal entities and consolidation into a separate consolidated legal entity. Intercompany accounting pairs legal entities with Due from and Due to accounts, and intercompany purchase orders can be matched to invoices within set rules.
What you need in Dynamics 365 Finance
- Intercompany accounting pairs of legal entities
- Intercompany main accounts for Due to and Due from
- A legal entity ticked Use for financial consolidation process
Setting it up in Dynamics 365 Finance
Where to find it: Organization administration > Organizations > Legal entities
- Create the intercompany main accounts for Due to and Due from, and a journal name with Journal type set to Daily.
- On the Intercompany accounting page create each pair of legal entities and pick the Debit account (Due from), Credit account (Due to) and Journal name.
- Use Create reciprocal relationship to copy the pair the other way.
- For group reports create a legal entity and tick Use for financial consolidation process.
- Set its ledger details and the currency exchange rates for the subsidiaries.
Good to know in Dynamics 365 Finance
- The intercompany accounting setup is shared, so all legal entities can see it.
- The consolidated legal entity can print reports but cannot be used for daily transactions.
- For intercompany purchase orders the net amounts on the vendor and customer invoices must be equal. That rule overrides invoice matching approvals and price tolerance.
How to do it in Dynamics 365 Finance
How to set up vendor invoice approval in Dynamics 365 Finance
In Dynamics 365 Finance, set up vendor invoice workflow: choose who can approve and their limits, then test it with a real vendor invoice before you rely on it.
How to close the month in accounts payable in Dynamics 365 Finance
In Dynamics 365 Finance, enter and approve all vendor invoice records dated in the month, accrue goods received, reconcile the Vendor aging report to the ledger, then lock the period.
What Pulsify adds
- Each company in Pulsify is connected to its own set of books with its own documents, suppliers, approval rules and forwarding address.
- One login reaches every company a person has access to.
- Each person has a role per company: Admin, Approver, Reviewer or Submitter.
- The company menu shows how many documents wait on you in each company.
Pulsify connects to Dynamics 365 Finance. We set up the connection for you. More about multi-entity accounts payable in Pulsify.
What Pulsify does not do
- Pulsify does not split one bill across several companies or post intercompany entries.
More help
- Multi-entity accounts payable for Kinetic
- Multi-entity accounts payable for IFS Cloud
- Multi-entity accounts payable for CloudSuite Industrial
- PO matching for Dynamics 365 Finance
- Supplier price checks for Dynamics 365 Finance
- Purchase orders for Dynamics 365 Finance
- All Dynamics 365 Finance how-to guides
Sources
Last checked 2026-10-19.
Common questions
How does Finance post between legal entities?
Through intercompany accounting. You create pairs of legal entities with Due from and Due to accounts and a journal name. Intercompany journals then work for daily, vendor invoice and payment journals.
Can the consolidated entity take daily transactions?
No. Microsoft says you can print reports from it but cannot use it for daily transactions. It collects results and balances from the subsidiaries by import or online consolidation.
Can one approver work across companies?
Yes. A person can have a role in each company. Their waiting count shows per company.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles multi-entity accounts payable in Dynamics 365 Finance.