Multisite example - item data in the intercompany trade scenario
At each site, the completed aircraft are internally transferred from the inspection warehouses to the finished goods warehouses. The inspection warehouses belong to enterprise units EUA, EUB, and EUC, and all of the finished goods warehouses belong to EUS.
The Eagle Long Range is manufactured at site A. The aircraft are transferred from the inspection warehouse to the finished goods warehouse. The inspection warehouse belongs to enterprise unit EUA and the finished goods warehouse belongs to enterprise unit EUS. EUA internally charges EUS for the transfer costs incurred.
Likewise, at sites SB and SC, where the Eagle Midrange and the Buzzard Pro are manufactured, the aircraft are transferred from the inspection warehouses to the finished goods warehouses. The inspection warehouses belong to EUB and EUC, respectively, and the finished goods warehouses belong to EUS. EUB and EUC internally charge EUS for the transfer costs incurred.
To define the intercompany trade price between each production unit and sales unit S, intercompany trade relationships are set up between EUA and EUS, EUB and EUS, and EUC and EUS.
For the intercompany trade scenario, item costing data for the completed aircraft is set up at these enterprise units:
- EUA
- EUB
- EUC
- EUS
At enterprise units EUA, EUB, EUC, the standard costs are calculated for the aircraft manufactured at sites SA, SB, and SC. At enterprise unit EUS, the standard costs are calculated for the aircraft that are internally bought from EUA, EUB, and EUC by sales office SO. Sales office SO sells the completed aircraft to the external customers.
This item data must be set up for the completed aircraft:
Item by site
In the Items by Site (tcibd1550m000) session, set the supply source to Job Shop for all sites. You can also specify data such as configuration and customization settings.Item-ordering by site
In the Items - Ordering by Site (tcibd2150m000) session, for each site, you must specify the default warehouse from which the completed aircraft are shipped.Item costing by enterprise unit
For enterprise units EUA, EUB, EUC, in the Item - Costing (ticpr0107m000) session, for each type of completed aircraft, specify costing source Job Shop and the inspection warehouse at each site where the completed aircraft are received from production, inspected, and transferred to the finished goods warehouses.
Consequently, the data in the Items - Production by Site (tiipd0151m000) session related to the site of the selected warehouse is used to calculate the standard costs.
For enterprise unit EUS, in the Item - Costing (ticpr0107m000) session, for each type of completed aircraft, specify this information:
- Costing source Intercompany Transfer
The finished goods warehouse in which the aircraft is received:
- For the Eagle Long Range, this is the finished goods warehouse at site SA.
- For the Eagle Midrange, this is the finished goods warehouse at site SB.
- For the Buzzard Pro, this is the finished goods warehouse at site SC.
The enterprise unit from which the aircraft is transferred:
- For the Eagle Long Range, this is enterprise unit EUA.
- For the Eagle Midrange, this is enterprise unit EUB.
- For the Buzzard Pro, this is enterprise unit EUC
Consequently, for each type of aircraft the standard cost is calculated based on the intercompany trade price specified between the selling and the buying enterprise unit:
- For the Eagle Long Range, this is the intercompany sales price specified for intercompany transfers between enterprise unit EUA and EUS.
- For the Eagle Midrange, this is the intercompany sales price specified for intercompany transfers between enterprise unit EUB and EUS.
- For the Buzzard Pro, this is the intercompany sales price specified for intercompany transfers between enterprise unit EUC and EUS.