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IRISOIntercompanyPricing

14thFebruary2013 IRISOIntercompanyPricing
IRISOInternalRequisitionInternalSalesOrderprocessgeneratesintecompany
invoicesfortransactionshappeningacrossoperatingunits,acrosslegalentities
andacrossledgers.NoIntercompanyinvoicesaregeneratedforIRISO
transactionswithinthesameoperatingunit.
Usuallycorporate'shavecertainpercentageofmarkupsoncostonthe
intercompanytransactions.Theycalculatetransferpriceascostplusmarkup.
FollowingstepsneedstobeperformedtointegrateintercompanypricingwithIR
ISOprocess.
1.Createcustompricingresponsibilityforintercompanytransactions.Setthe
profilevaluesattheResponsibilitylevel.
2.CreatePricingcontextandAttributesSetupusingthenewcustom
responsibility.
3.CreateAttributelinkingandmapping
4.Createapricingformulatocalculatethetransferprice.
5.Createintercompanypricelistandassociatetheformulawithintercompany
pricelist.
6.AssociatethepricelistwiththecustomerandShippingnetworks.
Letsrevieweachstepindetail
1.Createnewcustompricingresponsibilityforintercompanytransactions.Setthe
profilevaluesattheResponsibilitylevel.
Followingaretheattributessetwhilecreatingthenewpricingresponsibility.
Unlessuntilthebelowprofileoptions(QP:SourceSystemCode,QP:Pricing
TransactionEntity)aresetthenewcustomresponsibilitywillnotproducethe
desiredresults.
ColumnName
ResponsibilityName
Application
ResponsibilityKey
Description
EffectiveDatesFrom
DataGroupName
DataGroupApplication
Menu
RequestGroupName
Application
ProfileLevel
ProfileLevelValue
Responsibility
IRISO
Intercompany
PricingManager
Responsibility
IRISO
Intercompany
PricingManager

ColumnValue
IRISOIntercompanyPricingManager
AdvancedPricing
IRISO_PRICING_MANAGER
IntercompanyPricingManager
25APR2012
Standard
AdvancedPricing
QP_PRICING_MANAGER
QPConcurrentPrograms
AdvancedPricing
ProfileName
ProfileValue
QP:Source
OracleInventory
SystemCode
QP:Pricing
Transaction
Entity

Intercompany
Transaction

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Site

INV:Advanced
Pricingfor
Intercompany
Invoice
INV:Advanced
PricingforInter
OrgTransfers
CST:Transfer
PricingOption
INV:Inter
Organization
Currency
Conversion
INV:
Intercompany
Currency
Conversion

Site

Site
Site

Site

Yes

Yes

Yes,PriceAs
IncomingCost
Corporate

Corporate

2. Create Pricing context and Attributes Setup using the new custom
responsibility(IRISOIntercompanyPricingManager).
Note: You can ignore the attribute code CONV_RATE from the setup. General
Ledger rates will automatically take care of conversion value while creating
intercompanyinvoices.
Navigation: IRISO Intercompnay Pricing Manager>Setup>Attribute
Management>ContextandAttributes

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ColumnName
ContextType
ContextCode
ContextName

ColumnValue
PricingContext
COST
Cost

ContextDescription

Cost

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AttributesCode
AttributesName
AttributesDescription
AttributesPrecedence
AttributesApplicationName
AttributesColumnMapped
AttributesValueSet

TRANSFER_PRICE
TransferPrice
TransferPrice
992
AdvancedPricing
PRICING_ATTRIBUTE1
QP:Number

AttributesCode
AttributesName
AttributesDescription
AttributesPrecedence
AttributesApplicationName
AttributesColumnMapped
AttributesValueSet
AttributesCode
AttributesName
AttributesDescription
AttributesPrecedence
AttributesApplicationName
AttributesColumnMapped
AttributesValueSet

ITEM_COST
ItemCost
ItemCost
990
AdvancedPricing
PRICING_ATTRIBUTE2
QP:Number
CONV_RATE
ConversionRate
ConversionRate
991
AdvancedPricing
PRICING_ATTRIBUTE3
QP:Number

3.CreateAttributelinkingandmapping
Navigation:
IRISO
Intercompany
Pricing
Management>AttributeLinkingandMapping

Manager>Setup>Attribute

Thereare2parametersthatneedstoberetrievedusingthisattributemapping
1. Item Cost : Item cost is defined differently for Discrete Organization and
differentlyforOPMenabledorganization.
InDiscreteorganization,thecostisdefinedintheItemCostssummary
windowforeachorganization.
InOPMenabledorganization,thecostisdefinedatthemasterinventory
organizationforthatoperatingunitandallorganizationsinthatoperatingunitwill
accessthesamecost.

WeneedtowriteasmallPL/SQLlogictoretrievethecostoftheitem.
For discrete organization, we can use cst_cost_api.get_item_cost(1,
INV_IC_ORDER_PUB.G_LINE.INVENTORY_ITEM_ID,
INV_IC_ORDER_PUB.G_LINE.SHIP_FROM_ORG_ID,NULL,NULL)
For
OPM
organization,
GMF_CMCOMMON.get_cmpt_cost(INV_IC_ORDER_PUB.G_LINE.INVENTORY_I
TEM_ID,83,sysdate,1000,0)
gl_currency_api.get_rate('USD','CAD',sysdate,'Corporate')
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2.TransferPriceMarkupvaluethatwillbesetbythecorporates.Thisvaluecan
besetupatoneofthe2places.Thisvaluecanbesetupas"RequestedValue",
"RequestedPercentage","PredefinedPercentage"and"None".
InterOrgInformationTabinInventoryOrganizationParametersWindow.
Transfer,DistanceTabinInventoryShippingNetworksWindow.
InthiscasealsoasmallPL/SQLlogicneedstobewrittentoretrievethevalue.
For Example if 30% is the markup then the value of the retrieved transfer price
attribute should be 0.3.Once the attributes are mapped correctly then save the
changes

RunBuildAttributeMappingRulesConcurrentProgram
Navigation: LIFC IRISO Intercompnay Pricing Manager > View Concurrent
Requests>SubmitaNewRequest>BuildAttributeMappingRules

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4. Create a pricing formula to calculate the transfer price and run Build Build
FormulaPackageConcurrentProgram.
5. Create intercompany price list and associate the formula with intercompany
pricelist.
Needtoenterallitemsdefinedintheitemmasterintothepricelist.Associate
theaboveformulaintheStaticformulasectionofthepricelist.
Cannotuseproductattribute"AllItems"on'intercompanyTransaction'pricing
entity.
Make sure Pricing Transaction Entity is defaulted to Intercompany and
SystemSourceCodetoINV.
6.AssociatethepricelistwiththecustomerandShippingnetworks
Intercompanypricelistshouldbeassociatedwiththeinternalcustomeratthe
BillTOSitelevel.
Intercompany Price list should also be associated in the shipping networks
window.
Note:Afterreadingthisarticleifthereareanyquestionsthensendmeamsgor
emailandIwillrespondtothematmyearliestconvenience.

BestRegards,
PrashanthiChennupati.

Posted14thFebruary2013byPrashanthiChennupati
Labels:IRISO
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