To set up intercompany trade

The most efficient way to set up the intercompany trade functionality is to first define the smallest building blocks. The process:

1. In the Implemented Software Components (tccom0100s000) session, select the Intercompany Trade check box.
2. Specify the required settings in the Intercompany Trade Parameters (tcitr0100m000) session.
3. If required, in the Intercompany Trade Classification (tcitr1630m000) session, define intercompany trade classifications.

4. In the Intercompany Trade Agreement (tcitr1600m000) session, define an intercompany trade agreement.

5. For each intercompany trade agreement, you must specify the intercompany trade scenario to which the trade agreement applies. This determines the available transfer pricing rules used to calculate the amounts of the:

   • Internal costs and revenue bookings
   • (If specified) the internal invoices

6. In the Intercompany Trade Agreement - Transfer Pricing Rules (tcitr1605m000) session, for the intercompany trade agreement, specify the:

   • Price origins
   • Priorities
   • Markup or markdown percentages or amounts
   • Profit split percentage. See Profit split.

   The available price origins and pricing options vary for each intercompany trade scenario.

7. If you selected intercompany trade scenario Subcontracting Depot Repair or Internal Service Delivery for the trade agreement, you must define one or more subscenarios for each price origin as described in Using and defining subscenarios.
8. Repeat steps 3-7 to add more intercompany trade scenarios.
9. In the Intercompany Trade Relationships 360 (tcitr2300m000) session, click New to start the Intercompany Trade Relationship (tcitr2600m000) session.
10. In the header section of the Intercompany Trade Relationship (tcitr2600m000) session, define an intercompany trade relation.
11. On the Agreements tab, add an intercompany trade scenario and link an intercompany trade agreement to the intercompany trade scenario. You can only add trade agreements with matching intercompany trade scenarios.
12. Repeat step 10 to add more intercompany trade scenarios to the intercompany trade relation as required.