Define Internal Sales

Define the internal supplier

You must define the internal supplier as 7-'Internal' in Internal supplier in 'Supplier. Open' (CRS620).

Define the internal customer number

The customer number that is used for the internal customer order is assigned per supplier number and receiving warehouse in 'Supplier. Connect Our Customer Number' (CRS680). The receiving warehouse is defined as the warehouse of the purchase order header in 'Purchase Order. Open' (PPS200). The supplier can thereby assign the same customer number to several warehouses placing a purchase order against the supplier.

Define the internal CO type

The customer order (CO) type that is used for the internal customer order is either defined per batch origin for internal sales in 'Settings - Batch Orders' (OIS278) or per supplier number and receiving warehouse in (CRS680). The later takes priority.

Define the selling facility of the internal customer order

The financial owner of the customer order is defined by its selling facility. For an internal sales order, the selling facility is defined based on either the customer or supplier record.

Each customer is assigned to a facility on 'Customer. Open' (CRS610/B). This facility is used as the selling facility of the internal customer orders. This is controlled by defining the Facility default setting *CUS in 'CO Type. Update Field Selection' (OIS014).

For the scenario that the selling facility differs for the same customer number, the facility is defined per supplier in 'Supplier. Define Purchase Financial' (CRS624).

If a facility is defined in (CRS624), it is given the highest priority and used on the internal customer order. If left blank, the rule defined per order type in (OIS014) is used.

Define the supplying warehouse of the internal customer order

The supplying warehouse defined per main supplier in 'Item. Connect Warehouse' (MMS002) is used for both the demand calculations and as the default supplying warehouse for the internal customer order.

Note: If a supplying warehouse is defined in (CRS624), it is set as supplying warehouse for that specific supplier in (MMS002) by default.

Once the purchase order is printed, the supplying warehouse is retrieved based on the purchase order line’s item and receiving warehouse settings in (MMS002).

For business scenarios where a supplier number always equals a specific warehouse, the warehouse is defined as the supplying warehouse per supplier in (CRS624).

In addition, each customer is assigned to a supplying warehouse in 'Customer. Open' (CRS610), which is used as the selling facility of the internal customer orders. This is controlled by defining the Warehouse default setting *CUS in 'CO Type. Update Field Selection' (OIS014).

The search for a default supplying warehouse on the internal CO header is performed in this hierarchy:

1. The supplying warehouse in (CRS624).
2. The supplying warehouse based on the CO type setting in (OIS014).

The search for a default supplying warehouse on the CO lines is performed in this hierarchy:

1. The supplying warehouse in (MMS002) for the purchase order line’s item and receiving warehouse. If the supplier of the purchase order and the main supplier in (MMS002) are the same, then this supplying warehouse is used on the CO line.
2. The supplying warehouse in (CRS624).
3. The supplying warehouse based on the CO type setting in (OIS014).

To manage more advanced sourcing rules of supplying warehouses, a supply model is defined for the internal customer order. The supply model is, however, only supported for sourcing of a firm purchase order and not the demand driven off a planned purchase order.

Define warehouse interface settings for internal sales

Internal sales use the warehouse interface functionality to transfer outbound delivery information to the purchase delivery note, which is used for the goods receipt.

Number series 1 with number series type 17 is defined in 'Number Series. Open' (CRS165). Qualifiers must exist in 'Order Init Stock Trans Qualif. Open' (MHS860).

Stock message partner and message type is defined in 'Stock Msg Partner. Open' (MMS865) and in 'Settings - Deliveries' (CRS721) for internal sales.

Auto start jobs for warehouse interface must be active for creation of purchase delivery (MHS855 and MHS855T9).

Define a taxable address

A taxable address is defined to control VAT determination for internal customer orders created through direct delivery. This address is added to the header of the internal customer order when the order is created from a purchase order that originates from an external customer order line of type 2.

Users can define the taxable address in the 'Taxable address ID' (FIAD) field, which is added in 'Supplier. Connect Our Customer Number' (CRS680) for internal suppliers and 'Warehouse. Open'(MMS005) for warehouses. If a record exists in (CRS680), the specified taxable address is prioritized. If not, the taxable address defined for the warehouse in (MMS005) is used.

When a taxable address is present on the internal customer order header, VAT is determined based on this address instead of the final delivery address of the external customer order.

The Invoice BOD contains the taxable address in the CustomerTaxRep party type.

The taxable address is stored on the internal customer order. This address applies to all lines on the order. If you manually add lines to the purchase order, these lines are created on the internal customer order and inherit the taxable address. As a result, VAT determination for these lines is based on the taxable address, even though the lines are not linked to an external customer order for direct delivery.

When a taxable address is present on the internal customer order header, the VAT triangulation logic treats the delivery address of the external customer as the third party for VAT purposes. This behavior overrides the standard logic for order lines with line type 2, where the supplier is treated as the third party. It also overrides the logic for order lines where delivery is made from a warehouse in a different division, where the delivering warehouse is treated as the third party. Therefore, the combination of such order lines and a taxable address on the same internal customer order is not supported.

Settings on the delivery term

'Goods responsibility' (DELT) controls how goods in transit are updated when the goods in transit functionality is activated in 'Settings - Cost Accounting' (CAS900). Depending on the goods responsibility set for the delivery term in 'Delivery Term. Open' (CRS065), goods in transit transactions are created either for outbound or for inbound transactions.

Settings on the dispatch policy

The dispatch policy parameter '470 Ship-via control' is set to 1-'Consignee' on 'Dispatch Policy. Open' (MWS010/H).

Batch order entry settings

An entry for batch source I-'Internal sales' must exist in 'Settings - Batch Orders' (OIS278). All the batch origin settings are similar as for the external batch origin A-'API'.

The setting Source sales price in (OIS278) controls whether the purchase price is accepted or disregarded as the sales price. In addition, the setting Price/discount origin is always activated for internal sales implying that the sales price origin is set to A-'API or internal sale' when the purchase price is used as the sales price of the CO.

Customer order type settings

A specific CO type is defined for internal sales, since there are specific CO type settings required for a CO is created based on an internal purchase order. This implies that the same CO type is not used for other types of orders, for example sales to external customers.

The CO type is enabled for internal sales through activating the 'Internal sales' setting on the E panel in 'CO Type. Open' (OIS010). Once activated, there are several CO type settings that are disabled both in (OIS010) and 'CO Type. Update Field Selection' (OIS014). Upon copy, the new CO type is defined as internal sales by activating the 'Internal sales' setting on the copy panel C in (OIS010). The CO type settings are upon copy automatically set to qualify for internal sales.

This table shows the required CO type setting in (OIS010) for internal sales: