Intercompany trade for labor and expenses

In People, employees can book hours and expenses for various projects or orders. The employees, orders, or projects can belong to different departments.

If an employee books hours or expenses spent on behalf of another department, you can set up intercompany trade to determine the amount that the employee's department can internally charge the department owning the order or project that the employee helped complete.

In Financials, this amount is booked as revenues for the employee's department. For the order's department, the amount is booked as costs owed to the employee's department. If required, you can specify that the employee's department invoices the order or project's department.

The intercompany trade scenarios Labor and Expenses provide various options to define the rates that are used to determine these amounts.

If intercompany trade is set up for hours and expenses, the application creates intercompany trade orders for each hours or expense booking in the relevant sessions in People. On the intercompany trade order, a general hours or expense booking is displayed as the originating object. When hours or expenses are booked for an order or a project, the order or project is the originating object, and the hours or expense booking is the related object.

Hours and expenses can be booked across multiple logistic companies. For example, an employee who belongs to department A from logistic company X can book hours for a project belonging to department B from logistic company Y.