Intercompany Trade Relationship (tcitr2600m000)

Use this session to define intercompany trade relations.

In the From and To sections of this session, specify the financial companies, enterprise units, or entities to which the trade relation applies. Optionally, select an intercompany trade classification and enter a description. In the Agreements tab, select the applicable intercompany trade scenario and intercompany trade agreement.

Note
  • If you define an intercompany trade relation with scenario Freight, in the Internal Freight Responsibilities (tcitr2130m000) session, you must also specify the entity responsible for freight planning and the entity that pays the freight costs.
  • For intercompany trade scenario Subcontracting Depot Repair, you must define one or more of these time and material subscenarios:

    • Internal Material Delivery
    • Labor/ Expenses
    • Other

 

Type
The type of segment of your organization that constitutes the from- side of the intercompany trade relation.
Entity
The type of entity that constitutes the from- side of the intercompany trade relation. This field is empty and unavailable if Entity is not selected in the From Type field.
From Operational Company
The operational company of the entity in the From Entity field.
From Entity
The entity that constitutes the from- side of the intercompany trade relation.
Enterprise Unit
The enterprise unit that constitutes the from- side of the intercompany trade relation. This field is empty and unavailable if Enterprise Unit is not selected in the From Type field.
Financial Company
The financial company that constitutes the from- side of the intercompany trade relation. If you specified a specific entity or enterprise unit, this field displays the financial company of the entity or enterprise unit.
Intercompany Trade Classification
An attribute consisting of a code and a description that is used to create groups of entities or enterprise units. To create a group, a number of entities or enterprise units is linked to an intercompany trade classification. These groups can be used to define intercompany trade relationships.
Example

A large international organization includes these enterprise units:

In Europe

  • UK
  • France
  • Belgium

In Asia

  • India
  • China
  • Japan

Trade classification Europe is linked to the European enterprise units and trade classification Asia is linked to the Asian enterprise units. You can set up trade relations, for example to define different trade agreements in Europe and Asia, such as:

  • Asia to Europe
  • Europe to Asia
  • Asia to Asia
  • Europe to Europe
Type
The type of segment of your organization that constitutes the to- side of the intercompany trade relation.
Entity
The type of entity that constitutes the to- side of the intercompany trade relation. This field is empty and unavailable if Entity is not selected in the To Type field.
To Operational Company
The operational company of the entity in the To Entity field.
Entity Code
The entity that constitutes the to- side of the intercompany trade relation.
Enterprise Unit
The enterprise unit that constitutes the to- side of the intercompany trade relation. This field is empty and unavailable if Enterprise Unit is not selected in the From Type field.
Financial Company
The financial company that constitutes the to- side of the intercompany trade relation. If you specified a specific entity or enterprise unit, this field displays the financial company of the entity or enterprise unit.
Intercompany Trade Classification
An attribute consisting of a code and a description that is used to create groups of entities or enterprise units. To create a group, a number of entities or enterprise units is linked to an intercompany trade classification. These groups can be used to define intercompany trade relationships.
Example

A large international organization includes these enterprise units:

In Europe

  • UK
  • France
  • Belgium

In Asia

  • India
  • China
  • Japan

Trade classification Europe is linked to the European enterprise units and trade classification Asia is linked to the Asian enterprise units. You can set up trade relations, for example to define different trade agreements in Europe and Asia, such as:

  • Asia to Europe
  • Europe to Asia
  • Asia to Asia
  • Europe to Europe
Description
The description of the current intercompany trade relation.
Search Sequence
The search priority that LN uses to retrieve the intercompany trade relations that correspond with the entities involved in an order. The lower the search sequence number, the higher the search priority, which means the more specific the trade unit type, the higher the priority. The first digit of the search sequence number represents the from-side, and the second digit the to-side of the intercompany trade relation. The setting of the Search Sequence Intercompany Trade Relationships parameter in the Intercompany Trade Parameters (tcitr0100m000) session determines whether the from-side or the to-side of the relation has priority.

How the priority number is composed

The first digit of the search sequence number represents the from-side, and the second digit the to-side of the intercompany trade relation. Each Trade Unit Type has a number:

Intercompany Trade Unit TypeNumber
Specific Entity1
Specific Enterprise Unit and Intercompany Trade Classification2
Specific Enterprise Unit3
Specific Financial Company and Intercompany Trade Classification4
Specific Financial Company5
Any Financial Company and Intercompany Trade Classification6
Any Financial Company7
Any Enterprise Unit and Intercompany Trade Classification8
Any Enterprise Unit9

 

For example, if you specify this relation: From enterprise unit EU 1 with trade classification ABC To any financial company, the search sequence number is 27 if the Search Sequence Intercompany Trade Relationships parameter is set to From. If the setting is To, the search sequence number is 72.

Text
An informative text about the current trade relation. This text is copied to the trade orders to which the trade agreements of the trade relation apply.