| Intercompany Trade Agreements (tcitr1100m000)Note - To add a text about a trade agreement, select the trade
agreement and click Text in the toolbar. This prompts you to add an agreement
text or a trade order text. The agreement text is a general text about the
trade agreement, which you can view if you click Text in the toolbar. The trade
order text is also displayed on the intercompany trade order related to the
selected intercompany trade agreement.
-
For intercompany trade scenario Subcontracting Depot Repair, in addition to the price origins you must define one or
more of these time and material subscenarios: - Internal Material Delivery
- Labor/ Expenses
- Other
Intercompany Trade Agreement An attribute that includes the intercompany trade details for
an intercompany trade scenario. An intercompany trade
agreement is linked to an intercompany trade relationship, together with the
intercompany trade scenario. For the applicable intercompany trade scenario and trade
relationship, an intercompany trade agreement: - Determines whether internal invoicing is used.
- Determines whether intercompany trade orders must be approved
before they can be processed.
- Includes the transfer pricing rules that determine the
amounts of the intercompany trade transactions.
- Determines the amounts of the internal invoices, if internal
invoicing is specified.
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. The
amount of the internal invoice is based on the sales order price. Scenario A business process, such as External Material Delivery Sales, involving two parts of
an organization defined as entities. An intercompany trade scenario is linked to an intercompany trade agreement. The intercompany trade
scenario and the intercompany trade agreement are linked to an intercompany trade relationship. Example The entities sales office S1 and warehouse W1 are part of
organization A, but they 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. The amount of the internal invoice is based on the sales
order price. Note The Labor and Expenses scenarios are not available if the: - From Entity is Warehouse or Project.
- To Entity is Warehouse, Shipping Office, or Project.
Internal Invoice If this check box is selected, internal invoicing is
applicable to intercompany trade transactions. Adopt Selling Cost Structure If this check box is selected, the cost structure of the
selling entity is adopted by the buying entity. This is used for various types of cost and profit margin
analyses. Note -
This check box is: - Selected and unavailable for scenario WIP Transfer
- Cleared and unavailable for scenarios Freight and Subcontracting Depot Repair.
- For the other scenarios, the setting of this check box is
defaulted from the Adopt Selling Cost Structure in the Intercompany Trade Parameters (tcitr0100m000) session.
- The setting of this check box is defaulted to the Adopt Selling Cost Structure check box of the intercompany trade order
sessions.
Margin Cost Component The cost component on which to book the intercompany trade margin of the selling
entity. Note -
This field is unavailable if: - The Adopt Selling Cost Structure check box is
cleared.
- The Adopt Selling Cost Structure check box is selected,
and the intercompany trade scenario is WIP Transfer.
-
If the Adopt Selling Cost Structure check box is selected,
this field is mandatory for these intercompany trade scenarios: - External Material Delivery Sales
- External Material Direct Delivery
- Internal Material Delivery
- Project (PCS) Delivery
- The value of this field is defaulted to the Margin Cost Component field of the intercompany trade
order sessions.
Currency The currency of the intercompany trade transaction. The
currency is displayed if the currency origin is Specific. Markdown Percentage The percentage by which the internal invoice is reduced. For
example, if the sales price for the customer is EUR 100 and the markdown
percentage is 5%, the internal invoice amount is EUR 95. Only applicable to: - Sales Order Price (Gross)
- Sales Order Price (Net)
- Sales Order Customs Value
Markup Percentage The percentage by which the internal invoice is increased. Only applicable to: - Cost-Plus
- Purchase Order Price (Gross)
- Purchase Order Price (Net)
Markup Amount The amount by which the internal invoice is increased. This is only applicable to the Freight scenario and the Cost-Plus price origin. Currency The currency of the markup amount. Seller Approve of Trade Order during Generation If this check box is selected, the selling part of the
intercompany trade orders based on the current intercompany trade agreement is
approved automatically when the intercompany trade order is created. This value
is defaulted from the Approve (Selling) check box in the Intercompany Trade Parameters (tcitr0100m000) session. If this check box is cleared, the selling part of the
intercompany trade order is approved using the Seller Approve Intercompany Trade Orders (tcitr3200m000) session. Buyer Approve of Trade Order during Generation If this check box is selected, the buying part of the
intercompany trade orders based on the current intercompany trade agreement is
approved automatically when the intercompany trade order is created. This value
is defaulted from the Approve (Buying) check box in the Intercompany Trade Parameters (tcitr0100m000) session. If this check box is cleared, the buying part of the
intercompany trade order is approved using the Buyer Approve Intercompany Trade Orders (tcitr3200m100) session. Release Transaction Lines to Invoicing during Generation If this check box is selected, and an internal invoice
is required, transaction lines based on the current intercompany trade
agreement are automatically released to Invoicing when the
transaction lines are created. This value is defaulted from the Release to Invoicing check box in the Intercompany Trade Parameters (tcitr0100m000) session. If this check box is cleared, transaction lines are
released using the Release to Invoicing (tcitr3210m000) session. Post Transaction Lines (without Invoicing) during Generation If this check box is selected, and no internal invoice
is required, transaction lines based on the current intercompany trade
agreement are posted to Financials automatically after the transaction lines
are created. This value is defaulted from the Post Transactions (without Invoice) check box in the Intercompany Trade Parameters (tcitr0100m000) session. An internal invoice is not required for an intercompany
trade agreement if the Internal Invoice check box is cleared. If this check box is cleared, transaction lines without
invoicing are posted to Financials using the Post Transactions (tcitr3210m100) session. Intercompany Margin Billable in Project If this check box is selected, the intercompany margin
is added to the project costs of the project to which the current intercompany
trade agreement applies. The intercompany margin is the difference between the
intercompany transfer price and the actual costs, such as the valuation price
in the issuing warehouse. This implies that in case of a cost plus contract,
this margin is billable to the customer. This parameter is used for intercompany trade within a
project using project cost pegs. For example, in a project pegged warehouse
transfer within a logistic company with an internal invoice. This value is defaulted from the Intercompany Margin Billable in Project check box in
the Intercompany Trade Parameters (tcitr0100m000) session. Search Path for Intercompany Labor Rate Use the search path fields to set the priority for retrieving
the labor rate that is used to determine the Commercial Price in intercompany trade scenario Labor. Labor rates can be retrieved from an employee, an employee's department, or an employee's trade group. The value specified in level 1 is where the application looks
first to retrieve the labor rate. If not found, the application looks in level
2 and if not found there, in level 3. Not Applicable means that the level is not searched. The priorities specified in these fields are defaulted from
the 1, 2, and 3 fields in the Intercompany Trade Parameters (tcitr0100m000) session. Profit Split Percentage The profit percentage of the external sales order, contract
deliverable, or service order that the selling entity of the intercompany trade relationship is to receive. The remaining percentage goes to the
buying entity. | |