🌐 Intercompany Flows (LRD Model)
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Intercompany Flows (LRD Model)

How orders and stock move between Wygwam entities in Odoo.

Principle

The local sales entities operate as Limited Risk Distributors (LRD): they sell to the end customer, while the principal entity (BE) holds the stock and carries the main risk. Odoo's intercompany rules generate the counterpart documents automatically.

Flow: customer order via LRD

  1. The LRD confirms a sales order to the end customer.
  2. An intercompany purchase order is created from the LRD to the principal.
  3. Odoo mirrors this as a sales order in the principal entity.
  4. The principal delivers — either to the LRD warehouse or directly to the end customer.
  5. Intercompany invoices follow the transfer price from the intercompany pricelist (cost-plus or resale-minus).

Points of attention

  • Transfer pricing policy per product family — to be confirmed with finance.
  • Whether the LRD ever holds its own stock, or everything ships from BE.
  • Responsibility when the principal cannot deliver.