[v11] Supplier - logic behind checkbox "is internal supplier"

I have noted that in the Suppler Form there is a checkbox “Is internal Supplier” which seems to be new.

can someone explain what usecase this is meant to be checked for? Smells a bit like internal budgeting (let’s say the manufacturing unit provides a Service to the Sales department which can spend a certain budget on manufacturing).

Just discovered that upon checking that box another selection field turns up where a Company (not Suppliers/Customers) must be selected. So this seems to target interactions between entities in a multi-company scenario. Does it have direct implications to invoicing/accounting?


Check the following link

thanks @Pawan seems the central point of the article is

you can create a Purchase Invoice for a company say ‘Company ABC’, and create a Sales Invoice against this Purchase Invoice for a company say ‘Company XYZ’ and link them together.

  1. I don’t quite get the practical usecase to do that?
  2. Could you, on the other hand, create such Intercompany Invoices between ABC & XYZ without Sales/Purchase Invoices that are linked (this would be a usecase I clearly see a need for. One of your companies serving the other as a Supplier so to speak)?

I think you yourself have answered your question in your point no.2

If you do not want to link inter-company sales and purchase then you could use intercompany journal entry.

I think linking inter-company sales and purchase is a good idea in most cases here in India as there can be audit queries regarding the which purchase invoice in one company resulted in which sales invoice in another company etc.