| Intercompany Trade ScenarioExternal 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. The warehouse W1 sends an internal invoice
to sales office S1 to cover the costs for the goods and the delivery. 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)
External Material Delivery Purchase The ownership of
the goods changes from an external supplier (which can be an affiliated
company) to an internal financial entity based on an order of another internal
financial entity, which is invoiced by the external supplier. Example A
multinational organization has a central purchase office that buys materials
for its production plants located in various countries. The purchase office
buys the materials from external suppliers. The production plants are modeled
as separate financial entities. The purchase office charges the production
plants internally for the costs it made. To charge the
production plants, the central purchase office sends intercompany trade orders
to the production plants. The charges can be based on various pricing rules,
such as the purchase price paid to the external supplier. Supported price origins - Cost-Plus
- Commercial Price
- Purchase Order Price (Gross)
- Purchase Order Price (Net)
This scenario is applicable if Order Management and Service are
implemented. Project (PCS) Delivery Invoicing between a project calculation office and a warehouse
or other departments. Supported price
origin: Cost-Plus WIP Transfer In case of WIP transfers, work in progress is transferred from one work
center to another work center. Each work center is defined as an entity. Each entity belongs to a different internal
financial entity. The shipping work center invoices the receiving work center,
because ownership changes directly from one internal financial entity to
another internal financial entity. Supported price origin: Cost-Plus (without markup). External Material Direct Delivery The ownership
of the goods changes from one external legal entity to an external business
partner based on two orders, for example a sales order and a purchase order,
from different internal legal entities. Example To fulfill a
sales order for an external customer, sales office A instructs purchase office
A1 to purchase goods from an external supplier. The supplier delivers the goods
directly to the external customer. Sales office A invoices the external
customer. The external supplier invoices purchase office A1. To be compensated
for the costs incurred, purchase office A1 sends an internal invoice to sales
office A. Supported price origins - Cost-Plus
- Commercial Price
- Sales Order Price (Gross)
- Sales Order Price (Net)
- Sales Order Customs Value
- Purchase Order Price (Gross)
- Purchase Order Price (Net)
- Profit Split (Gross)
- Profit Split (Net)
Internal Material Delivery Goods and the related
ownership are transferred from one internal financial entity to another
internal financial entity. For example, a warehouse transfer in which goods are
transferred from one warehouse to another. Both warehouses are defined as entities. In this scenario, the shipping entity incurs
costs on behalf of the receiving entity, or invoices the receiving
entity. Supported price origins - Cost-Plus
- Commercial Price
Note Also used as Time and Material subscenario of the Subcontracting Depot Repair scenario, in which case the
supported price origins are: - Cost-Plus
- Commercial Price
- Zero Price
Freight Freight costs are invoiced by a shipping office to a warehouse, sales office, or other department. If a freight order is created for an
order, such as a sales order, transfer order, or purchase order, the shipping
office pays the freight costs. If specified, to be compensated for the freight
costs the shipping office sends an internal invoice to the sales office,
warehouse or purchase office on whose behalf the freight costs are incurred.
The shipping office and the other departments are defined as entities. In this scenario, a shipping office is
the selling entity and a warehouse, sales office or other department is the
buying entity on the intercompany trade order. See Intercompany trade scenario Freight - process and setup and Internal and external freight invoicing. Supported price origins - Cost-Plus
- Commercial Price
Subcontracting Depot Repair Operations or activities are
carried out by one financial entity on behalf of another financial entity and
costs are incurred, for example, material or labor, for these operations or
activities. Example A work order to repair an item, linked to a maintenance sales
order of another financial entity. Supported price origins: - Time and Material
- Commercial Price
Expenses The intercompany trade scenario Expenses is used to determine the intercompany trade
amount that the department of the employee who made the expenses charges
internally to the department on whose behalf the expenses are made. Supported price origins - Cost-Plus
- Commercial Price
- Zero Price
Labor The intercompany trade scenario Labor is used to determine the intercompany trade amount that the department of the
employee who books the hours charges internally to the department on whose
behalf the hours are booked. This scenario is also used as a Time and Material subscenario of the Subcontracting Depot Repair scenario. Supported price origins - Cost-Plus
- Commercial Price
Other Time and Material subscenario of the Subcontracting Depot Repair scenario.
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