Intercompany trade setup - overview

The intercompany trade setup entails:

  • Specifying the parameters controlling the intercompany trade order approval step.
  • Defining intercompany trade agreements.
  • Specifying the intercompany trade scenario for each intercompany trade agreement.
  • For each intercompany trade agreement and linked intercompany trade scenario:

    • Specifying whether internal invoicing applies.
    • Specifying whether approval applies to the intercompany trade orders.
    • Selecting the price origins on which the internal invoices or intercompany trade transactions are based.
  • Defining intercompany trade relationships between the parts of your organization involved in intercompany trade.
  • Linking one or more intercompany trade agreements to each intercompany trade relationship.

Before setting up the intercompany trade functionality, complete the company setup. For more information, refer to Prerequisites for the intercompany trade setup.

Internal freight responsibilities

If Freight is implemented and freight costs are handled internally, you must specify the internal freight responsibilities:

  • The party responsible for freight planning
  • The party that must pay the freight costs
Internal terms and conditions

Optionally, you can link internal terms and conditions agreements to enterprise units. Internal terms and conditions are used within the context of internal ownership. The terms and conditions become effective when you link the terms and conditions to a relation between enterprise units. The enterprise unit relations defined for internal terms and conditions have no impact on the intercompany trade agreements linked to intercompany trade relationships.