Intercompany Trade Agreements (tcitr1100m000)

	Intercompany Trade Agreements (tcitr1100m000) Use this session to view and maintain intercompany trade agreements. 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 Related topics Intercompany trade setup - overview Intercompany trade - introduction 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. Allowed values Intercompany Trade Scenarios Note The Labor and Expenses scenarios are unavailable if the: From Entity is Warehouse or Project. To Entity is Warehouse, Shipping Office, or Project. The External Material Delivery Purchase scenario is unavailable if the: From Entity is any of these: Warehouse Project Shipping Office Project Management Office To Entity is 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. Related topics Adopt selling cost structure Cost Component Scheme in Manufacturing COGS Cost Component The cost component to which the intercompany trade COGS ( cost of goods sold) is charged. Note This field is enabled only if the Adopt Selling Cost Structure checkbox is cleared. You can only specify a cost component for which the cost type is material. This field is disabled if the Scenario field is set to Freight, Subcontracting Depot Repair, Labor, Expenses or WIP Transfer. Description The description or name of the code. Margin Cost Component The cost component on which to book the intercompany trade margin of the selling entity. Note This field is disabled if: The Adopt Selling Cost Structure check box is cleared. The Adopt Selling Cost Structure check box is selected, and the Scenario is WIP Transfer. This field is enabled and mandatory only if: The Adopt Selling Cost Structure check box is selected or, The COGS Cost Component field is specified 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 Delivery Purchase 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. Related topics Adopt selling cost structure Specifying a margin cost component Cost Component Scheme in Manufacturing Description The description or name of the code. Currency Origin The origin of the currency of the internal invoice or intercompany settlement transaction. Allowed values Intercompany Currency Origin Currency The currency of the intercompany trade transaction. The currency is displayed if the currency origin is Specific. Price Origin The pricing that must be used for the internal invoice or intercompany settlement transaction. Allowed values Intercompany Price Origin 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. Submit Trade Order for Approval During Generation If this check box is selected, intercompany trade orders based on the current intercompany trade agreement are submitted to Workflow for approval. If this check box is cleared, the intercompany trade orders must be manually submitted. This setting is defaulted from the Submit for Approval check box in the Intercompany Trade Parameters (tcitr0100m000) session. This check box is available if approval is applicable for the current intercompany trade agreement and if Workflow is implemented for intercompany trade orders. For more information, refer to Workflow Management System. 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. Related topics Intercompany trade scenario Labor 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. Related topics Profit split Retrieve Original Settings for Return Order If this check box is selected, intercompany trade orders created for return orders are based on the original ITR order instead of the intercompany trade agreement. Related topics Intercompany trade for backorders and return orders Retrieve Original Settings for Backorder If this check box is selected, intercompany trade orders created for backorders are based on the original ITR order instead of the intercompany trade agreement. Related topics Intercompany trade for backorders and return orders