Examples of integration transactions for borrow/loan and payback transfers
The Integration Transactions (tfgld4582m000) session displays the financial integration transactions generated from borrow/loan and payback transfers.
In the following examples, project A is the borrowing project, and project B is the lending project.
The inventory valuation method is MAUC by project.
Borrow/loan transfer
Project A borrows four items with a total value of 40.
In each of the following examples, the Business Object ID is Inventory Transaction.
| Integration Document Type | D/C | Reconciliation group | Project | Amount | Description | |
|---|---|---|---|---|---|---|
| Cost Peg Transfer/Loan | D | Borrow/Loan Accrual /1 | Loan Accrual | B | 40 | The borrow/loan transfer, from the lending project’s perspective. |
| C | Inventory/1 | Inventory | B | 40 | ||
| Cost Peg Transfer/Borrow | D | Inventory/1 | Inventory | A | 40 | The borrow/loan transfer, from the borrowing project’s perspective. |
| C | Borrow/Loan Accrual/2 | Borrow Accrual | A | 40 | ||
Payback transfer
Project A had borrowed four items from project B at a value of 10 each. The borrowed items have meanwhile been issued to fulfill a job shop requirement, so there is no inventory left. Then, project A is replenished with four items. The items have become more expensive: the value per item is now 30. After replenishment, the inventory value of project A is 4 * 30 = 120. The payback transfer is then carried out. The borrowed items are returned to project B at the value 40, which equals the value at which the items were borrowed. The inventory of project A becomes 0. The difference between the replenishment value and the payback value (120-40=80) are booked at the Project Costs & Commitments/WIP Costs of project A.
| Integration Document Type | D/C | Reconciliation group | Project | Amount | Description | |
|---|---|---|---|---|---|---|
| Cost Peg Transfer/Borrow Reversal | D | Borrow/Loan Accrual/2 | Borrow Accrual | A | 40 | The payback transfer, from the borrowing project’s perspective. |
| C | Inventory/1 | Inventory | A | 40 | ||
| Cost Peg Transfer/Payback Result | D | Inventory/1 | Inventory | A | -80 | The difference between the value of the borrowed inventory and the value of the inventory that the borrowing project received on a replenishment order, which will be used to pay back the lending project. |
| C | Interim Transit/1 | Interim Transit | A | -80 | ||
| Project Costs & Commitments/Payback Result | D | Project WIP/1 | Project WIP | A | 80 | The payback result, booked to the project WIP. |
| C | Interim Transit/1 | Interim Transit | A | 80 | ||
| Cost Peg Transfer/Loan Reversal | D | Inventory/1 | Inventory | B | 40 | The payback transfer, from the lending project’s perspective. |
| C | Borrow/Loan Accrual/1 | Loan Accrual | B | 40 | ||
Finalization by aging or manual intervention
The borrowed items are not returned to the lending project. The borrowed items and their value are added to the borrowing project’s inventory as described in Borrow - example of cost aspects, but permanently. The payback is a purely financial compensation for the lending project.
| Integration Document Type | D/C | Reconciliation group | Project | Amount | Description | |
|---|---|---|---|---|---|---|
| Cost Peg Transfer/Borrow Reversal | D | Borrow/Loan Accrual/2 | Borrow Accrual | A | 40 | The payback transfer, from the borrowing project’s perspective. |
| C | Inventory/1 | Inventory | A | 40 | ||
| Cost Peg Transfer/Loan Reversal | D | Inventory/1 | Inventory | B | 40 | The payback transfer, from the lending project’s perspective. |
| C | Borrow/Loan Accrual/1 | Loan Accrual | B | 40 | ||
| Cost Peg Transfer/Issue | D | Interim Transit/1 | Interim Transit | B | 40 | The issue of the loaned inventory made permanent. |
| C | Inventory/1 | Inventory | B | 40 | ||
| Cost Peg Transfer/Receipt | D | Inventory/1 | Inventory | B | The receipt of the borrowed inventory made permanent. | |
| C | Interim Transit/1 | Interim Transit | A | |||