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Intercompany Training Internal External Dropship Internal Fulfillment Scenarios
Intercompany Training Internal External Dropship Internal Fulfillment Scenarios
the Enterprise
and Oracle’s New
Intercompany Functionality –
11.5.9 and 11.5.10
Internal Sales Orders
Hans Kolbe, Celantra Systems Inc.
Hans Kolbe has managed and advised software implementation projects for
over 15, global projects for over 8 years. His extensive knowledge on
Oracle applications is combined with a formal background as a German
attorney, trained in international and comparative law.
Overview
All of these entities may operate in one and the same country.
In the multi-national environment we need to add Foreign subsidiaries and
Foreign Branches registered in other jurisdictions in any of the
categories.
All is fine if the operational entity is contained within one external legal entity and
one balancing segment corresponds to one OU. In other cases careful
investigation and discussion is needed in order to best accommodate the
business priorities.
For more information, discussions, and sample solutions please join the Multi-
National Interest Group of the OAUG.
Entity A Entity B
Selling Entity Shipping Entity
IC Invoice
INV-Org A INV-Org B
Bill-to Ship-to
Entity A Entity B
Shipment and IC
Shipping Entity
“Selling Entity” Invoicing
INV-Org B
INV-Org A
Entity A Entity B
Selling Entity Shipping Entity
IC Invoice
INV-Org A INV-Org B
- New Accounting
- Transaction Steps
- Elements of Setup
Shipping Org:
- Import Sales Order – parameter by requisition (menu
option) – price is informational only, not IC price.
- Reserve sales order and pick release (after other required
steps)
- Ship-Confirm (add freight if needed)
- Run Costing Manager
Shipping Org:
- Create intercompany AR Invoices (request)
- Run Auto-Invoice (request – source: internal)
Receiving Org:
- Create intercompany AP Invoices (request)
- Payables Invoice Import (request)
Menu path: OM, Order Management, Orders/Return, Import Orders, Import Request
Internal Sales
Orders are
immediately
booked, not
“entered” status
Sales Order Price is NOT from price list, but cost of shipping org without transfer credit. ISSUE
for documents and reports!
Puzzler: Price is: 0.50576 per unit; on Requisition it was 0.32568
Hint: The price is shown in CHF, the functional currency of shipping organization versus while the
receiving organization has a functional currency of EUR.
Tax Code shown here defaults from Internal Customer Ship-to Site; it will not be used for IC
Invoicing; only Bill-to Site tax will be used. Watch out when printing documents!
If “Direct” then no IC
invoicing
NOTE: We have to create customer bill-to and ship-to sites for the receiving entity within
the receiving operating unit. It must be tied to the inventory location and inventory
organization. This bill-to and ship-to site is used for the processing of the internal order
1. CST: Transfer Price Option, No: will leave old accounting with balancing
sheet accrual entries. Set at Site Level, i.e. for all entities.
2. INV Intercompany invoicing for internal orders = YES at User Level.
3. Automatic IC Invoicing from Price List can be activated where needed.
Manual invoices can continue where desired.
4. Additional restriction is possible by leaving IC relationship blank. Then
no IC invoices are generated.
5. Automatic IC AR and AP invoice works with accounting from Shipping
Network – mapping IC AR account and Transfer Credit account to
COGS.
6. Incoming markup can be booked either to PPV account or matched up
with Material overhead account on receiving side.