Intercompany Transaction Flow: Tiba ↔ Al-Khadra Pharmaceuticals

Overview

This article explains the Intercompany Transaction Flow between two affiliated companies in the Tiba Pharma group:

• طيبة للأدوية (Tiba Pharmaceuticals) — acts as the Buyer / Customer
• الخضراء للأدوية (Al-Khadra Pharmaceuticals) — acts as the Seller / Supplier

When goods move between these two companies, all purchasing and selling documents are created, linked, and reconciled automatically on both sides of the system.

Full Process Flowchart

Step-by-Step Process

📦 Step 1 — Purchase Order (Tiba)

Who: Procurement team at Tiba
Action: Create a Purchase Order with Al-Khadra set as the Supplier.
System Result: ERPNext automatically creates an Intercompany Sales Order in Al-Khadra’s company with Tiba as the Customer.

📋 Step 2 — Pick List (Al-Khadra)

Who: Warehouse team at Al-Khadra
Action: Generate a Pick List from the Sales Order.
Result: Warehouse staff physically pick the items from shelves for shipment.

🚚 Step 3 — Delivery Note (Al-Khadra)

Who: Logistics team at Al-Khadra
Action: Create a Delivery Note to confirm shipment of goods.
System Result: ERPNext automatically creates a Purchase Receipt in Tiba’s company, updating their inventory.

✅ Step 4 — Purchase Receipt (Tiba)

Who: Warehouse team at Tiba
Action: Review and submit the Purchase Receipt.
Result: Tiba’s stock levels are updated.

💵 Step 5 — Sales Invoice (Al-Khadra)

Who: Finance team at Al-Khadra
Action: Create a Sales Invoice against the Delivery Note.
Result: Accounts Receivable posted in Al-Khadra’s books.

🧾 Step 6 — Purchase Invoice (Tiba)

Who: Finance team at Tiba
Action: Create a Purchase Invoice to match the Sales Invoice from Al-Khadra.
Result: Accounts Payable posted in Tiba’s books. Transaction complete.

Document Linkage Summary

Key Setup Requirements

• Al-Khadra must be configured as a Supplier in Tiba’s system.
• Tiba must be configured as a Customer in Al-Khadra’s system.
• Both companies must share the same ERPNext multi-company environment.
• Intercompany Settings must define the Sales/Purchase trigger pair.
• Items and price lists must be shared across both companies.

Tips & Best Practices

• Complete the Pick List before creating the Delivery Note to prevent stock discrepancies.
• Invoice amounts on both sides must match exactly to avoid reconciliation issues.
• Use Intercompany Journal Entry for any manual adjustments between the two companies.
• Run Accounts Receivable / Payable reports in both companies periodically to confirm all balances are reconciled.