Intercompany trade scenario External material direct delivery

The ownership of the goods changes from one external legal entity to an external business partner based on two orders, for example a sales order and a purchase order, from different internal legal entities.

Example

To fulfill a sales order for an external customer, sales office A instructs purchase office A1 to purchase goods from an external supplier. The supplier delivers the goods directly to the external customer. Sales office A invoices the external customer. The external supplier invoices purchase office A1. To be compensated for the costs incurred, purchase office A1 sends an internal invoice to sales office A.

On the intercompany trade order, purchase office A1 is the selling entity and sales office A is the buying entity.

Business processes

The External Material Direct Delivery scenario is used in sales and service processes in which the goods are delivered directly from an external supplier to the external customer:

  • Sales process

    Sales order for which the deliveries are made from the buy-from business partner of the related purchase order.

  • Service process

    Service order for which the deliveries are made from the buy-from business partner of the related purchase order.

In this scenario, the originating order is a direct delivery sales or service order and the related order is the purchase order that registers the items to be delivered directly from the buy-from business partner to the customer.

The intercompany trade order is created when the purchase order related to the originating sales or service order is created, provided that an intercompany trade relation and the applicable scenario are defined for the sales office of the sales or service order and the purchase office of the related order. The transaction lines are created when a receipt is specified for the related purchase order.

Note: If approval is required, you must approve the intercompany trade order to complete the administrative receipt for the purchase order. The actual receipt at the customer's is a separate process that is not affected by the approval process of the intercompany trade order.

Supported price origins

  • Cost-Plus
  • Commercial Price
  • Sales Order Price (Gross)
  • Sales Order Price (Net)
  • Sales Order Customs Value
  • Purchase Order Price (Gross)
  • Purchase Order Price (Net)
  • Profit Split (Gross)
  • Profit Split (Net)
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