Intercompany trade ordersAn intercompany trade order is created from an originating business object such as:
The intercompany trade order is created when the order lines or project lines of the originating business object are created, provided that an intercompany trade relationship with an applicable intercompany trade scenario is defined for the entities related to the originating business object. The application creates an intercompany trade order for each originating business object line. Transaction lines and related business objects A transaction line is linked to an intercompany trade order and displays the details of a delivery, service, or other activity performed for the originating business object. The transaction line triggers the creation of the internal cost and revenue transactions, and, if specified, the internal invoice lines. A transaction line is created when a delivery is made or a service is rendered for the originating business object. In some scenarios, deliveries are created using related business objects, such as warehousing orders or work orders. Intercompany trade order numbering The application creates an intercompany trade order for each business object line of an originating business object. Intercompany trade order numbering is based on standard intercompany trade order numbering or user defined order series. For more information, refer to Intercompany trade order numbering. 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. Applicable intercompany trade scenarios and
agreements An intercompany trade order is created if:
These settings determine the amounts of the cost and revenue transactions and, if specified, the internal invoice lines. Depending on the settings, you can adjust the transfer pricing rules or the amounts of the intercompany trade order. 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. An intercompany trade relationship is defined for W1 and S1. The intercompany trade scenario External Material Delivery Sales is linked to the intercompany trade relationship. According to the intercompany trade agreement linked to this scenario, internal invoicing is applicable and the internal invoice must be based on the Sales Order Price (Net) price in this example. Therefore, the conditions of this intercompany trade agreement are retrieved to create the intercompany trade order. The internal invoice amount is based on the Sales Order Price (Net) price. Approval Intercompany trade orders can include an approval step. If approval is specified, deliveries are not allowed until the intercompany trade order is approved. Both the buying and the selling organization must approve the intercompany trade orders. In the intercompany trade process the selling organization is the entity that delivers goods or renders services. The buying organization purchases goods or services. Approval can be done automatically or manually. For example, you can specify that the selling organization must approve manually and the buying part must approve automatically.
| |||