Parent and child intercompany trade orders

An intercompany trade order provides the overall intercompany trade information that is applicable for the linked transaction lines. In some scenarios, however, part of the information applies only to some of the transaction lines. For example, in a Subcontracting Depot Repair scenario, to repair the main item various other items can be used. In such cases, the parent intercompany trade order lists the details of the main item, and the child intercompany trade orders list the details of the repair items.

In the Intercompany Trade Orders (tcitr3100m000) session, the Parent Order Line field refers to the parent intercompany-trade order of an intercompany trade order. The child order adopts the order number of the parent order.

Parent and child intercompany trade orders are also used for bill of material (BOM) items. 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.

Example

Service department SDept1 creates a maintenance sales order for the repair of item A. The repair is carried out by service department SDept2, who invoice SDept1 based on materials used and hours spent. A parent intercompany trade order is created for item A with price origin Time and Material.

For the repair of this item, the items B1 and B2 are used and 20 hours are booked. Consequently, these additional child intercompany trade orders are created:

  • Item B1
  • Item B2
  • 20 hours work

On both the parent and the child orders, you can maintain the details. For example, on the child orders you can change the price origin for the repair items B1 and B2, or the rate on which the work hours are based.

Transaction lines are created for both the parent and the child orders.