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Oracle E-Business Suite: Coping With EBS Intercompany Invoicing
Oracle E-Business Suite: Coping With EBS Intercompany Invoicing
Eric Guether
eguether@gmail.com
Objectives
Explore intercompany (I/C) invoicing topics and issues not addressed in the Inventory Users Guide Learn tips for coping with I/C invoicing in areas of:
Reconciliation Scheduling G/L Dating Error Detection Valuation
Presentation Scope
In Scope
Shipments to fulfill customer sales orders Loosely referred to as internal drop shipments Simple pricing of I/C invoices from price lists EBS 11i functionality; applicable to Release 12
Out of Scope
Step-by-step configuration Internal Sales Order / Internal Req-specific scenarios Global Purchase Agreement-specific scenarios External Drop Shipments (EBS SO spawns a PO) Advanced Pricing to value intercompany invoices
Note: Child not created until Parent record has been Transacted and Costed
Japan Sales
Sales Order Price Transfer Price Transfer Price Sales Order Price Transfer Price Transfer Price
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Dr
Cash Cr Accounts Receivable Not an intercompany transaction Dr Dr Intercompany Payables Cr Cash [or I/C Netting acct.] Cash [or I/C Netting acct.] Cr Intercompany Receivables
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Record Payment Against Intercompany Payable Receive Payment for Intercompany Receivable [or record I/C netting]
Intercompany Relation
Reconciliation
How do you ensure the completeness of all intercompany Payables invoices?
Each I/C Receivable should have matching I/C Payable
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The SQL script provided in the white paper can accommodate matching to A/P invoice #s with or without the suffix
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Error Detection
Request status does not necessarily indicate whether errors occurred with some records
For 3 of the 4 concurrent programs (except Create Intercompany AR Invoices), the request status will be Normal even if the output or log file indicates some records were rejected
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Resolved in release 11.5.8 and patch 3114322; request concatenates the batch_id to batch name
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If GL Date Basis for I/C A/P invoices were set to Invoice Date, then their G/L Date would always match the G/L Date of their I/C A/R Invoice
I/C A/P Invoices G/L Date =
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Custom triggers guarantee that the G/L dates of I/C A/P and A/R invoices match Add triggers at your own risk!
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Payments
Oracle EBS 11i offers no automation:
For corporate netting of I/C A/R and A/P invoices To apply cash collections to I/C receivables when a payment is recorded against I/C A/P invoices
One intercompany cash collection could be for hundreds or thousands of I/C A/R invoices depending on shipping volumes
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Valuation
Two methods for valuing intercompany invoices:
Static price list in Order Mgmt. module Advanced Pricing engine rules for more complexity
Static price list for an internal customer is defined within the customers bill-to location
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The G/L date of the I/C invoice has no bearing on the transfer price selection
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Issue: Some companies want the invoice to be priced at the new price ($1,100) based on the G/L date regardless of the invoice creation date
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Additional Resources
I/C Invoicing for Internal Reqs / Internal Orders: Han Kolbe presentation [2006 NorCal OAUG Seminar on Intercompany Transactions] COGS Account Generator for I/C Payables: John Peters presentation [2006 NorCal OAUG Seminar on Intercompany Transactions] Overview of Intercompany Invoicing Oracle white paper by Sharma Manda [Oracle Support doc # 336129.1] Internal Drop-Shipping: Multi-Org Inter-company Invoicing in 11.5.10 by David S. McCurry [OAUG COL06 white paper presentation] Multiple Organizations in Oracle Applications Oracle white paper, Appendix B Using The Account Generator to Generate the Intercompany COGS Account [Oracle Support doc # 226456.1] 11i Cost Cutoff Date to Retroactively Cost Transactions by Eric Guether [NorCal OAUG 2007 Training Day presentation and Oracle Support doc # 432515.1 ]
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