Intercompany trade for customer furnished materials

When a customer provides goods, known as customer furnished material, the material is used in the production process. Because the customer owns this material, the sales price does not include the value of these goods. Intercompany trade is applied between the shipping warehouse and the sales office for Scenraio of the type External Material Delivery Sales. The intercompany trade order costs are based on the company owned part. Intercompany trade is supported between a warehouse and a sales office for the sales order lines and contract deliverable lines containing the customer furnished material.

To enable the Intercompany Trade functionality for the sales transactions with customer furnished material, the External Material Delivery Sales with Customer Furnished Materialcheck box must be selected in the Intercompany Trade Parameters (tcitr0100m000)session.

For return orders, intercompany trade must be generated if the External Material Delivery Sales with Customer Furnished Material check box is selected in the Intercompany Trade Parameters (tcitr0100m000)session, in these two cases:

  • Return as company owned
  • Return as issued