Intercompany trade scenario 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.

Business processes

The Internal Material Delivery scenario is used in warehouse transfers.

In this scenario, the originating order is a transfer order. The intercompany trade order is created when the transfer order is created. There is no separate related order. For the intercompany trade order, the Related Business Object field is blank.

The transaction lines are created when the shipments of the outbound order lines of the transfer order are created. At this point, the issuing, or selling, warehouse can invoice the receiving warehouse. In this scenario, on the intercompany trade order the issuing warehouse is the selling organization and the receiving warehouse is the buying organization.

For one shipment from the issuing warehouse, multiple receipts can be generated in the receiving warehouse. Therefore, multiple receipts can exist on a transaction line.

Multicompany warehouse transfers

For multicompany warehouse transfers, two warehouse transfer orders are created. One in the company of the issuing warehouse, and the other in the company of the receiving warehouse. The transfer order of the issuing warehouse is the originating order of the intercompany trade order and the transfer order for the receiving company is the related order.

Child orders in subcontracting depot repair scenario

The Internal Material Delivery scenario is also used as Time and Material subscenarios in subcontracting depot repair scenarios involving child orders. For more information, refer to Subcontracting depot repair for intercompany trade - process and setup.

Supported price origins

  • Cost-Plus
  • Commercial Price
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