Intercompany Trade Agreement (tcitr1600m000)

Field Information

Intercompany Trade Agreement

intercompany trade agreement

Scenario

The intercompany trade scenario to which the trade agreement applies.

Intercompany Trade Transactions

If this check box is selected, the intercompany trade transactions are generated with the intercompany trade order.

Note: By default, this check box is selected. However, you can modify the value.

Internal Invoice

If this check box is selected, internal invoicing is applicable to intercompany trade transactions.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Adopt Selling Cost Structure

If this check box is selected, the cost structure of the selling entity is adopted by the buying entity.

This is used for various types of cost and profit margin analyses.

Note: 

• This check box is:

  • Selected and unavailable for scenario WIP Transfer
  • Cleared and unavailable for scenarios Freight and Subcontracting Depot Repair.
• For the other scenarios, the setting of this check box is defaulted from the Adopt Selling Cost Structure in the Intercompany Trade Parameters (tcitr0100m000) session.
• The setting of this check box is defaulted to the Adopt Selling Cost Structure check box of the intercompany trade order sessions.
• This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

COS Cost Component

The cost component to which the intercompany trade COGS ( cost of goods sold) is charged.

Note: 

• This field is enabled only if the Adopt Selling Cost Structure checkbox is cleared.
• You can only specify a cost component for which the cost type is material.
• This field is disabled if the Scenario field is set to Freight, Subcontracting Depot Repair, Labor, Expenses or WIP Transfer.
• This field is enabled only if the Intercompany Trade Transactions check box is selected.

Description

The description or name of the code.

Margin Cost Component

The cost component on which to book the intercompany trade margin of the selling entity.

Note: 

• This field is disabled if:

  • The Adopt Selling Cost Structure check box is cleared.
  • The Adopt Selling Cost Structure check box is selected, and the Scenario is WIP Transfer.

• This field is enabled and mandatory only if:

  • The Adopt Selling Cost Structure check box is selected or,
  • The COS Cost Component field is specified.

• If the Adopt Selling Cost Structure check box is selected, this field is mandatory for these intercompany trade scenarios:

  • External Material Delivery Sales
  • External (Material) Delivery Purchase
  • External Material Direct Delivery
  • Internal Material Delivery
  • Project (PCS) Delivery
• The value of this field is defaulted to the Margin Cost Component field of the intercompany trade order sessions.
• This field is enabled only if the Intercompany Trade Transactions check box is selected.

Description

The description or name of the code.

Currency Origin

The origin of the currency of the internal invoice or intercompany settlement transaction.

Allowed values

Company (Selling)

The home currency of the company of the from-part of the intercompany trade relation is used for the internal invoice.

Company (Buying)

The home currency of the company of the to-part of the intercompany trade relation is used for the internal invoice.

Internal Business Partner (Selling)

The currency of the internal business partner of the entity that belongs to the from- side of the intercompany trade relation is used for the internal invoice.

Internal Business Partner (Buying)

The currency of the internal business partner of the entity that belongs to the to-side of the intercompany trade relation is used for the internal invoice.

Order (Selling)

The currency of the purchase order to the supplier is used for the internal invoice. This is applicable if the trade scenario is External Material Direct Delivery.

Order (Buying)

The currency of the sales order or service order is used for the internal invoice. This is applicable if the trade scenario is External Material Delivery Sales or External Material Direct Delivery.

Specific

The currency specified by the user.

Note: This field is set to Not Applicable if the Intercompany Trade Transactions check box is cleared.

Note: This field is set to Not Applicable if the Intercompany Trade Transactions check box is cleared.

Currency

currency

Agreement Text

A general text about the current intercompany trade agreement.

Trade Order Text

A text about the current intercompany trade agreement. This text is also displayed on the intercompany trade order related to the current intercompany trade agreement.

Intercompany Margin Billable in Project

If this check box is selected, the intercompany margin is added to the project costs of the project to which the current intercompany trade agreement applies.

The intercompany margin is the difference between the intercompany transfer price and the actual costs, such as the valuation price in the issuing warehouse. This implies that in case of a cost plus contract, this margin is billable to the customer.

This parameter is used for intercompany trade within a project using project cost pegs. For example, in a project pegged warehouse transfer within a logistic company with an internal invoice.

This value is defaulted from the Intercompany Margin Billable in Project check box in the Intercompany Trade Parameters (tcitr0100m000) session.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Approve (Selling)

If this check box is selected, the selling part of the intercompany trade orders based on the current intercompany trade agreement is approved automatically when the intercompany trade order is created. This value is defaulted from the Approve (Selling) check box in the Intercompany Trade Parameters (tcitr0100m000) session.

If this check box is cleared, the selling part of the intercompany trade order is approved using the Seller Approve Intercompany Trade Orders (tcitr3200m000) session.

Approve (Buying)

If this check box is selected, the buying part of the intercompany trade orders based on the current intercompany trade agreement is approved automatically when the intercompany trade order is created. This value is defaulted from the Approve (Buying) check box in the Intercompany Trade Parameters (tcitr0100m000) session.

If this check box is cleared, the buying part of the intercompany trade order is approved using the Buyer Approve Intercompany Trade Orders (tcitr3200m100) session.

Release to Invoicing

If this check box is selected, and an internal invoice is required, transaction lines based on the current intercompany trade agreement are automatically released to Invoicing when the transaction lines are created. This value is defaulted from the Release to Invoicing check box in the Intercompany Trade Parameters (tcitr0100m000) session.

If this check box is cleared, transaction lines are released using the Release to Invoicing (tcitr3210m000) session.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Post Transactions (without Invoice)

If this check box is selected, and no internal invoice is required, transaction lines based on the current intercompany trade agreement are posted to Financials automatically after the transaction lines are created. This value is defaulted from the Post Transactions (without Invoice) check box in the Intercompany Trade Parameters (tcitr0100m000) session.

An internal invoice is not required for an intercompany trade agreement if the Internal Invoice check box is cleared.

If this check box is cleared, transaction lines without invoicing are posted to Financials using the Post Transactions (tcitr3210m100) session.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Note: This check box is enabled only if the Intercompany Trade Transactions check box is selected.

Return Order

If this check box is selected, intercompany trade orders created for return orders are based on the original ITR order instead of the intercompany trade agreement.

Backorder

If this check box is selected, intercompany trade orders created for backorders are based on the original ITR order instead of the intercompany trade agreement.

Submit for Approval

If this check box is selected, intercompany trade orders based on the current intercompany trade agreement are submitted to Workflow for approval.

If this check box is cleared, the intercompany trade orders must be manually submitted.

This setting is defaulted from the Submit for Approval check box in the Intercompany Trade Parameters (tcitr0100m000) session.

This check box is available if approval is applicable for the current intercompany trade agreement and if Workflow is implemented for intercompany trade orders. For more information, refer to Workflow Management System.

1

Use the search path fields to set the priority for retrieving the labor rate that is used to determine the Commercial Price in intercompany trade scenario Labor.

Labor rates can be retrieved from an employee, an employee's department, or an employee's trade group. The value specified in level 1 is where the application looks first to retrieve the labor rate. If not found, the application looks in level 2 and if not found there, in level 3. Not Applicable means that the level is not searched.

The priorities specified in these fields are defaulted from the 1, 2, and 3 fields in the Intercompany Trade Parameters (tcitr0100m000) session.

Note: The field is set to Not Applicable if the Intercompany Trade Transactions check box is cleared.

Note: The field is set to Not Applicable if the Intercompany Trade Transactions check box is cleared.