Odoo Inter-Company Transactions: Rules and Setup Guide

What Are Inter-Company Transactions?

When you operate multiple companies in a single Odoo database, inter-company transactions automate the paperwork between them. When Company A sells to Company B, Odoo can automatically create the corresponding purchase order in Company B, matching invoices to bills and keeping both sets of books synchronized.

Prerequisites

• Multi-company setup in Odoo (Settings → Companies)
• Users with access to multiple companies
• Inter-company rules enabled in Settings

Inter-Company Rules

Go to Settings → General Settings → Inter-Company Transactions to enable and configure rules.

Available Rules

Rule Configuration

# Inter-company rule setup:
# Company A (Parent):
#   Rule: Synchronized Sales/Purchase
#   Warehouse: Company A Warehouse
#   When SO confirmed → Create PO in counterpart company

# Company B (Subsidiary):
#   Rule: Synchronized Sales/Purchase
#   Warehouse: Company B Warehouse
#   When PO confirmed → Create SO in counterpart company

Sales Order to Purchase Order Flow

Step-by-Step

1. User creates a Sales Order in Company A with Company B as the customer
2. SO is confirmed in Company A
3. Odoo automatically creates a Purchase Order in Company B with Company A as the vendor
4. The PO is auto-confirmed (configurable)
5. When Company A delivers, Company B receives
6. Invoicing follows the same inter-company pattern

# Example flow:
# Company A: Holding Company (sells services to subsidiaries)
# Company B: Operating Company

# Step 1: Company A creates SO for Company B
#   Product: Management Services
#   Amount: $10,000/month

# Step 2: Auto-created in Company B
#   PO from Company A
#   Product: Management Services
#   Amount: $10,000/month

# Step 3: Company A invoices Company B
#   Invoice in A: $10,000 (Revenue)
#   Bill in B: $10,000 (Expense) — auto-created

Invoice to Bill Synchronization

When invoice-to-bill rules are active:

• Posting an invoice in Company A for Company B automatically creates a vendor bill in Company B
• The bill references the original invoice number
• Amounts, tax, and line details are copied
• Both documents are linked for reconciliation

Warehouse Transfers

Inter-Company Stock Transfers

For physical goods moving between companies:

1. Company A creates an internal transfer to Company B's warehouse
2. Odoo creates corresponding receipt in Company B
3. Goods leave Company A's inventory
4. Goods enter Company B's inventory
5. Optional: Inter-company pricing for transfer pricing compliance

Transit Location

# Inter-company transfer routing:
# Company A Stock → Inter-Company Transit → Company B Stock

# The transit location ensures:
# - Goods are tracked during transfer
# - Both companies have accurate inventory counts
# - Transfer pricing is applied at the transit point

Centralized Procurement

A central purchasing company buys for all subsidiaries:

• Company B (operating) creates a purchase need
• Company A (central purchasing) creates the vendor PO
• Goods are received at Company B (direct delivery from vendor)
• Company A invoices Company B for the goods plus markup

Transfer Pricing

Inter-company pricing must comply with transfer pricing regulations:

• Set specific inter-company pricelists
• Apply arm's-length pricing between entities
• Document pricing methodology for tax compliance
• Different markup rates by product category or service type

Accounting Impact

# Inter-company journal entries:
# Company A (seller):
#   Debit: Inter-company Receivable  $10,000
#   Credit: Revenue                  $10,000

# Company B (buyer):
#   Debit: Expense                   $10,000
#   Credit: Inter-company Payable    $10,000

# Consolidation:
#   Both entries eliminate during consolidation
#   Net impact on group P&L: $0

Multi-Currency Inter-Company

When companies operate in different currencies:

• SO/PO created in the currency of the target company
• Exchange rates applied at transaction date
• Currency differences handled through standard Odoo exchange rate mechanics

Reporting

• Inter-company Balances — Receivables and payables between companies
• Transaction Volume — Inter-company sales and purchases by period
• Reconciliation — Matching status of inter-company invoices/bills
• Transfer Pricing — Markup and margin on inter-company sales

Best Practices

• Use dedicated inter-company accounts — Separate AR/AP accounts for inter-company balances
• Reconcile monthly — Verify inter-company balances net to zero
• Document transfer pricing — Maintain a transfer pricing policy document
• Auto-confirm POs — Reduce manual steps in the inter-company flow
• Test both directions — Verify rules work from both company perspectives

DeployMonkey + Inter-Company

DeployMonkey's AI agent configures inter-company rules, transfer pricing, and inter-company accounts for seamless multi-entity operations.