Intercompany Trade Relationship - Registration Exception - Agreement (tcitr2106m000)

Use this session to maintain the agreements of the registration exception for the intercompany trade relationship.

Note:

This session is displayed only if the Intercompany Trade is implemented in the Intercompany Trade Parameters (tcitr0100m000) session.
The data in this session is applicable only if:
- The Registration by Tax Country field is set to Active or In Preparation in the Global Registration Parameters (tctax2100m000) session.
- The Extended Registration Management field is set to Active or In Preparation in the Global Registration Parameters (tctax2100m000) session.

Field Information

From Type

The From and To fields define a range of: the types of segment of the organization for the intercompany trade relationship.

Allowed values

Entity: entity
Enterprise Unit: enterprise unit
Financial Company: financial company
Any Financial Company: Any financial company within your organization.
Any Enterprise Unit: Any enterprise unit within your organization.

From Entity

The From and To fields define a range of: the types of entity.

Allowed values

Sales Office: sales office
Shipping Office: shipping office
Project Management Office: project management office
Production Department: production department
Purchase Office: purchase office
Not Applicable
Service Department: service department
Work Center: work center
Warehouse: warehouse
Project: project
Accounting Office: accounting office
Contract: contract
Inventory Management Department: Inventory management department

Note: This field is applicable only if the From Type or To Type field is set to Entity.

From Operational Company

The From and To fields define a range of: the operational companies of the entity.

From Entity Code

The From and To fields define a range of: the entitites for the intercompany trade relationship.

From Enterprise Unit

The From and To fields define a range of: the enterprise units for the intercompany trade relationship.

Note: This field is applicable only if the From Type or To Type field is set to Enterprise Unit.

From Financial Company

The From and To fields define a range of: the financial companies. If Entity or Enterprise Unit fields are specified, this field displays the financial company of the entity or enterprise unit.

From Intercompany Trade Classification

The From and To fields define a range of: the intercompany trade classifications for the intercompany trade relationship.

From Registration Code

The From and To fields define a range of: tax registration numbers for intercompany trade.

Note: This field is applicable only if the Extended Registration Management field is set to Active or In Preparation in the Global Registration Parameters (tctax2100m000) session.

From Tax Country

The From and To fields define a range of: intercompany-trade tax countries.

Note: This field is applicable only if the Registration by Tax Country field is set to Active or In Preparation in the Global Registration Parameters (tctax2100m000) session.

Scenario

The intercompany trade scenario for the intercompany trade agreement.

Allowed values

External Material Delivery Sales

The ownership of the goods changes from an internal financial entity to an external business partner (or affiliated company) based on an order of another internal financial entity, which invoices the external customer.

Example

Sales office S1 and warehouse W1 are part of organization A, but are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. The warehouse W1 sends an internal invoice to sales office S1 to cover the costs for the goods and the delivery.

Supported price origins

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

External (Material) Delivery Purchase

The ownership of the goods changes from an external supplier (which can be an affiliated company) to an internal financial entity based on an order of another internal financial entity, which is invoiced by the external supplier.

Example

A multinational organization has a central purchase office that buys materials for its production plants located in various countries. The purchase office buys the materials from external suppliers. The production plants are modeled as separate financial entities. The purchase office charges the production plants internally for the costs it made.

To charge the production plants, the central purchase office sends intercompany trade orders to the production plants. The charges can be based on various pricing rules, such as the purchase price paid to the external supplier.

Supported price origins

Cost-Plus
Commercial Price
Purchase Order Price (Gross)
Purchase Order Price (Net)

This scenario is applicable if Order Management and Service are implemented.

Project (PCS) Delivery

Invoicing between a project calculation office and a warehouse or other departments.

Supported price origin: Cost-Plus

WIP Transfer

In case of WIP transfers, work in progress is transferred from one work center to another work center. Each work center is defined as an entity. Each entity belongs to a different internal financial entity. The shipping work center invoices the receiving work center, because ownership changes directly from one internal financial entity to another internal financial entity. Supported price origin: Cost-Plus (without markup).

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.

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)

Internal Material Delivery

Goods and the related ownership are transferred from one internal financial entity to another internal financial entity. For example, a warehouse transfer in which goods are transferred from one warehouse to another. Both warehouses are defined as entities. In this scenario, the shipping entity incurs costs on behalf of the receiving entity, or invoices the receiving entity.

Supported price origins

Cost-Plus
Commercial Price

Note:

Also used as Time and Material subscenario of the Subcontracting Depot Repair and Internal Service Deliveryscenarios, in which case the supported price origins are:

Cost-Plus
Commercial Price
Zero Price

Freight

Freight costs are invoiced by a shipping office to a warehouse, sales office, or other department.

If a freight order is created for an order, such as a sales order, transfer order, or purchase order, the shipping office pays the freight costs. If specified, to be compensated for the freight costs the shipping office sends an internal invoice to the sales office, warehouse or purchase office on whose behalf the freight costs are incurred. The shipping office and the other departments are defined as entities.

In this scenario, a shipping office is the selling entity and a warehouse, sales office or other department is the buying entity on the intercompany trade order.

See Intercompany trade scenario Freight - process and setup and Internal and external freight invoicing.

Supported price origins

Cost-Plus
Commercial Price

Subcontracting Depot Repair

Operations or activities are carried out by one financial entity on behalf of another financial entity and costs are incurred, for example, material or labor, for these operations or activities.

Example

A work order to repair an item, linked to a maintenance sales order of another financial entity.

Supported price origins:

Time and Material
Commercial Price

Internal Service Delivery

In this scenario, a financial entity within the Service package carries out activities on behalf of another financial entity within the Project package. The entity in Service invoices the Project entity for costs incurred such as the rental of equipment, labor, materials, or travel time.

Example

A service order activity for renting out equipment to a project of another financial entity. The equipment office of the service order activity invoices the project management office for equipment rented out to the project management office that uses the equipment to carry out a project for a customer.

Supported price origins:

Time and Material
Commercial Price

Expenses

The intercompany trade scenario Expenses is used to determine the intercompany trade amount that the department of the employee who made the expenses charges internally to the department on whose behalf the expenses are made.

Supported price origins

Cost-Plus
Commercial Price
Zero Price

Labor

The intercompany trade scenario Labor is used to determine the intercompany trade amount that the department of the employee who books the hours charges internally to the department on whose behalf the hours are booked.

This scenario is also used as a Time and Material subscenario of the Subcontracting Depot Repair and Internal Service Deliveryscenarios.

Supported price origins

Cost-Plus
Commercial Price

Other

Time and Material subscenario of the Subcontracting Depot Repair and Internal Service Deliveryscenarios.

Supported price origins

Cost-Plus
Zero Price

Subcontracting