Intercompany trade scenario External material delivery sales

The ownership of the goods changes from an internal financial entity to an external business partner (or affiliated company) based on an order of another internal financial entity, which invoices the external customer.

Example

Sales office S1 and warehouse W1 are part of organization A, but are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. W1 sends an internal invoice to S1 to cover the costs for the goods and the delivery.

On the intercompany trade order, W1 is the selling entity and S1 is the buying entity.

Business processes

The External Material Delivery Sales scenario is used for these business processes:

  • Sales process

    • A sales order with a delivering warehouse. In case of returns, credit notes are created.
    • A sales schedule with a delivering warehouse.
    • A sales order with a delivering work center (for FAS items).

  • Service process

    • A service order with a delivering warehouse. In case of returns, credit notes are created.
    • A maintenance sales order with a delivering warehouse on a part delivery line. On a part receipt line, a credit note is created.
    • A customer claim with a delivering warehouse.
  • Project
    A project contract delivery with a delivering warehouse. In case of returns, credit notes are created.

In this scenario, the intercompany trade order is created when the originating order lines are created. The transaction lines are created when a delivery is made for the originating order. For more information, refer to Intercompany trade orders

Supported price origins

  • Cost-Plus
  • Commercial Price
  • Sales Order Price (Gross)
  • Sales Order Price (Net)
  • Sales Order Customs Value
  • Profit Split (Gross)
  • Profit Split (Net)
Deliveries from work center instead of warehouse

Deliveries of FAS items for sales order lines can be made straight from the work center instead of a warehouse. In such cases, the From Entity field on the intercompany trade order displays the work center from which the delivery is made. On the shipment of the related warehousing order, the Ship-From field displays the issuing work center instead of a warehouse.

Intercompany trade if part loan changes into part delivery

Part loan deliveries for maintenance service orders are not regarded as intercompany trade. Nevertheless the application creates an intercompany trade order for a part loan line, because the part loan can change into a part delivery. A part loan changes into a part delivery if the customer does not return the loaned item. If an intercompany trade relation is present for the entities involved in the part delivery, this is an intercompany trade transaction.

If an intercompany trade order is created from a part loan line, the Part Loan check box is selected in the Intercompany Trade Orders (tcitr3100m000) session.

Before converting the part loan delivery to a part delivery, the user must approve the intercompany trade order if approval is specified for the applicable intercompany trade agreement. After the conversion, the application creates transaction lines for the intercompany trade order.

If the maintenance sales order is closed and the part loan lines are not converted to part deliveries, the relevant intercompany trade orders are cancelled.

BOM items and kit items

If the originating sales order line lists a bill of material (BOM) item, a parent intercompany trade order is created for the main item, and a child order is created for each of the bill of material (BOM) component items. If the price origin of the intercompany trade agreement is Commercial Price, the price is determined according to the setting of the Commercial Price in case of BOM Lines field in the Intercompany Trade Parameters (tcitr0100m000) session. You can change this setting on the intercompany trade order.

Similarly, if the price origin is Sales Order Price (Gross) or Sales Order Price (Net) for kit items, the sales price is apportioned to the component items.

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