Search sequences for intercompany trade relationships
When an order is created, such as a sales order or a warehouse transfer order, the application checks whether intercompany trade relations are available for the entities involved in the order. If yes, intercompany cost and revenue bookings must be posted and, if specified, internal invoices must be created based on the intercompany trade agreements for the applicable intercompany trade scenarios.
Various trade relations can be available that correspond with the entities involved in the order. Of the available relationships, the relationship defined for the most detailed level is given priority.
Example
These intercompany trade relationships correspond to the entities involved in order SLS A:
| Relationship | From | To |
|---|---|---|
| 1 | Enterprise Unit A | Any Enterprise Unit |
| 2 | Enterprise Unit A | Entity sales office B |
Relationship 2 is defined for a more detailed level. Therefore, relationship 2 is given priority. Consequently, the trade agreements of relationship 2 determine the amounts of the intercompany cost and revenue bookings and, if specified, the internal invoices.
The Search Sequence Intercompany Trade Relationships parameter
The setting of the Search Sequence Intercompany Trade Relationships parameter in the Intercompany Trade Parameters (tcitr0100m000) session determines whether the from-side or the to-side of the intercompany trade relationships is given priority.
Example
These intercompany trade relationships are present:
- From warehouse W1 to any enterprise unit
- From any enterprise unit to sales office S2
For internal invoicing between W1 and S2, both relations are applicable. If the setting in the Search Sequence Intercompany Trade Relationships parameter is From, the relationship of the most detailed level on the from-side is taken: From warehouse W1 To any enterprise unit. If the priority setting is To, the other relationship is given priority.