Company B takes an item in the inventory of Company A for "expensive Office use"? How do we do that?

Hello !

I couldn’t find much information online regarding this “is internal” check option and wonder if it is linked to what I would like to do.

I have a situation where I would like to know if it’s possible to automate stock, invoice, expense scripts, price list between 2 companies into the same ERP Site.

For example:

  1. Company B takes an item (pencil) in the inventory of Company A as “current expense as Office use”.
  2. Company A decides to sell the pencil with a different price list when it comes to Company B as a customer.

Normal manual solution:

Company A creates a sale invoice using a special price list and sells the pencil to a customer called Company B.
Then the pencil is deducted from the inventory of Warehouse store Company A and an amount should reflect in the chart of account Sales.
Company B creates a purchase invoice for the pencil and enters it as Office Expense.


  1. All transactions are to be made by which account and which mode of payment regarding both companies A and B?
  2. There is this option in erpnext Is Internal, how useful is it for this situation, or is it used for that purpose?
  3. How can we automate all this in ERPnext?
  4. Can the item list be created automatically in both Company A or B (can an item be created in a warehouse of Company A and a warehouse of company B)?

Thank you! Any recommendations are much appreciated.


@NCP Hey, would you happen to know the answer of my question? Thanks!

Hi @l4cky,

“Is Internal” checkbox is used to indicate whether an item or transaction is internal to the company or if it involves external parties. This option is mainly used for inter-company transactions within a single instance. It helps differentiate between internal transfers and transactions with external customers or suppliers.

Each company in ERPNext will have its own accounts and mode of payment for transactions.

“Is Internal” checkbox is not directly related to automating transactions between companies. It is used for internal transfers within a single company.

To automate the process, you can use features like stock reconciliation, price lists, and custom scripts. Set up a custom workflow or script to create sale invoices, purchase invoices, and expense entries based on specific conditions.

You can create items separately in each company’s warehouse for separate inventory tracking.

We haven’t deep knowledge. so we provide enough ideas and scenarios.

Thank You!

Hi NCP, I see. Thank you for such a quick reply.

So if I understand there is no way to connect information (database) or fetched database between different companies.

For example:

Company A has pencil item to sell.
Company B has an eraser to sell.

Can POS in Company A able to sell to a customer with Pencil and Eraser and have the amount of the invoice of Pencil to add the income account of Company A and the sale of Eraser to be added in Company B income account, while both Pencil and Eraser are in the same invoice?

“Is Internal” checkbox, can it be used to remove an item (eg Stapler) from the inventory and use it as an office expense (will the accounting accounts be automatically generated)?