Examples of integration transactions for borrow/loan and payback
transfers
The Integration Transactions (tfgld4582m000) session displays the financial
integration transactions generated from borrow/loan and payback transfers.
In the following examples, project A is the borrowing project,
and project B is the lending project.
The inventory valuation method is MAUC by project.
Borrow/loan transfer
Project A borrows four items with a total value of 40.
In each of the following examples, the Business Object ID is Inventory Transaction.
| Integration
Document Type | D/C | Reconciliation group | Project | Amount | Description |
|---|
| Cost Peg
Transfer/Loan | D | Borrow/Loan Accrual /1 | Loan
Accrual | B | 40 | The borrow/loan
transfer, from the lending project’s perspective. |
| C | Inventory/1 | Inventory | B | 40 |
| Cost Peg Transfer/Borrow | D | Inventory/1 | Inventory | A | 40 | The borrow/loan
transfer, from the borrowing project’s perspective. |
| C | Borrow/Loan Accrual/2 | Borrow
Accrual | A | 40 |
Payback transfer
Project A had borrowed four items
from project B at a value of 10 each. The borrowed items have meanwhile been
issued to fulfill a shop floor requirement, so there is no inventory left.
Then, project A is replenished with four items. The items have become more
expensive: the value per item is now 30. After replenishment, the inventory
value of project A is 4 * 30 = 120. The payback transfer is then carried out.
The borrowed items are returned to project B at the value 40, which equals the
value at which the items were borrowed. The inventory of project A becomes 0.
The difference between the replenishment value and the payback value
(120-40=80) are booked at the Project Costs and Commitments / WIP Costs of project A.
| Integration
Document Type | D/C | Reconciliation group | Project | Amount | Description |
|---|
| Cost Peg
Transfer/Borrow Reversal | D | Borrow/Loan Accrual/2 | Borrow
Accrual | A | 40 | The payback transfer, from the
borrowing project’s perspective. |
| C | Inventory/1 | Inventory | A | 40 | |
| Cost Peg
Transfer/Payback Result | D | Inventory/1 | Inventory | A | -80 | The difference between the value of the
borrowed inventory and the value of the inventory that the borrowing project
received on a replenishment order, which will be used to pay back the lending
project. |
| C | Interim Transit/1 | Interim
Transit | A | -80 |
| Project Costs &
Commitments/Payback Result | D | Project WIP/1 | Project
WIP | A | 80 | The payback result, booked to
the project WIP. |
| C | Interim Transit/1 | Interim
Transit | A | 80 | |
| Cost Peg Transfer/Loan Reversal | D | Inventory/1 | Inventory | B | 40 | The payback
transfer, from the lending project’s perspective. |
| C | Borrow/Loan Accrual/1 | Loan
Accrual | B | 40 |
Finalization by aging or manual intervention
The borrowed items are not
returned to the lending project. The borrowed items and their value are added
to the borrowing project’s inventory as described in Borrow - example of cost aspects, but
permanently. The payback is a purely financial compensation for the lending
project.
| Integration
Document Type | D/C | Reconciliation group | Project | Amount | Description |
|---|
| Cost Peg
Transfer/Borrow Reversal | D | Borrow/Loan Accrual/2 | Borrow
Accrual | A | 40 | The payback
transfer, from the borrowing project’s perspective. |
| C | Inventory/1 | Inventory | A | 40 |
| Cost Peg Transfer/Loan Reversal | D | Inventory/1 | Inventory | B | 40 | The payback
transfer, from the lending project’s perspective. |
| C | Borrow/Loan Accrual/1 | Loan
Accrual | B | 40 |
| Cost Peg
Transfer/Issue | D | Interim Transit/1 | Interim
Transit | B | 40 | The issue of the
loaned inventory made permanent. |
| C | Inventory/1 | Inventory | B | 40 |
| Cost Peg Transfer/Receipt | D | Inventory/1 | Inventory | B | | The receipt of the
borrowed inventory made permanent. |
| C | Interim Transit/1 | Interim
Transit | A | |