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 is Inventory Transaction.

Integration Document TypeD/CReconciliation groupProjectAmountDescription
Cost Peg Transfer/LoanDBorrow/Loan Accrual /1Loan AccrualB40The borrow/loan transfer, from the lending project’s perspective.
CInventory/1InventoryB40
Cost Peg Transfer/BorrowDInventory/1InventoryA40The borrow/loan transfer, from the borrowing project’s perspective.
CBorrow/Loan Accrual/2Borrow AccrualA40

 

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 job shop 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 TypeD/CReconciliation groupProjectAmountDescription
Cost Peg Transfer/Borrow ReversalDBorrow/Loan Accrual/2Borrow AccrualA40The payback transfer, from the borrowing project’s perspective.
CInventory/1InventoryA40
Cost Peg Transfer/Payback ResultDInventory/1InventoryA-80The 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.
CInterim Transit/1Interim TransitA-80
Project Costs & Commitments/Payback ResultDProject WIP/1Project WIPA80The payback result, booked to the project WIP.
CInterim Transit/1Interim TransitA80
Cost Peg Transfer/Loan ReversalDInventory/1InventoryB40The payback transfer, from the lending project’s perspective.
CBorrow/Loan Accrual/1Loan AccrualB40

 

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 TypeD/CReconciliation groupProjectAmountDescription
Cost Peg Transfer/Borrow ReversalDBorrow/Loan Accrual/2Borrow AccrualA40The payback transfer, from the borrowing project’s perspective.
CInventory/1InventoryA40
Cost Peg Transfer/Loan ReversalDInventory/1InventoryB40The payback transfer, from the lending project’s perspective.
CBorrow/Loan Accrual/1Loan AccrualB40
Cost Peg Transfer/IssueDInterim Transit/1Interim TransitB40The issue of the loaned inventory made permanent.
CInventory/1InventoryB40
Cost Peg Transfer/ReceiptDInventory/1InventoryBThe receipt of the borrowed inventory made permanent.
CInterim Transit/1Interim TransitA