Professional Documents
Culture Documents
Intercompany Flow
Ravi Sagaram
Agenda
Introduction
Intercompany (IC) Shipping Flows
2 OUs
3 OUs
IR ISO Process
Intercompany (IC) Procurement Flows
2 OUs
3 OUs
Questions and Answers
Introduction
Shipping Flow
Procurement Flow
These two invoices are recorded by the system using the intercompany
transaction flow
Inter Company Shipping Flow
Set of Books
Legal Entity
Operating Unit
Order is Booked in
one OU
It is shipped out of a
different OU
India China
Booking OU Shipping OU
Inter Company Shipping Flow
It is shipped out of a
different OU
There is a financial OU
in between these two
OUs
India US China
Booking OU OU Shipping OU
Inter Company Shipping Flow with 2 OUs
Shipment Receipt
Logical Physical
Sales Order Sales Order
Issue Issue
Customer
Inter Company Shipping Flow with 3 OUs
Logical IC Logical IC
Sales Issue Sales Issue
India US China
Booking OU Intermediate OU Shipping OU
Logical IC Logical IC
Shipment Receipt Shipment Receipt
Logical Physical
Sales Order Sales Order
Issue Issue
Customer
Inter Company Shipping Flow
Logical Material Transactions
IC AR in China OU
against US OU @ Tr Price
US China
Booking OU Shipping OU
IC AP in US OU
against China OU @ Tr Price
AR invoice
to Customer
Customer
Inter Company Shipping Flow
Financial Flow with 3 OUs
IC AR in US OU IC AR in China OU
on India OU @Tr Price on US OU @ Tr Price
India US China
Financial OU
Booking OU Shipping OU
IC AP in India OU
on US OU @ Tr Price IC AP in US OU
on China OU @ Tr Price
AR invoice
to Customer
Customer
Inter Company Shipping Flow– Transfer Price
DR CR 1 DR CR
1
IC Inventory
Inventory Clearing
COGS($100) $100
$110 $110
DR CR
1
IC Inventory 1 IC IC 2
Inventory Clearing
120 COGS 110 Receivables Revenue)
$120
110 $110 $110
IR ISO Process
System is designed only for 2
Hongkong OU US OU
IR ISO
OUs in IR ISO Process
Shipping OU
The transfer type in the
shipping networks should be
setup to Intransit to enable
the intercompany invoicing
for IR ISO process
US Places PO
On Supplier Goods shipped to
Supplier sends
Supplier China OU directly
Invoice to US OU
Inter Company Procurement Flow
Financial Flow with 3 OUs
Logical
US Hongkong China
Receipt Intermediate OU
of goodsPurchasing OU Receiving OU
Supplier
Inter Company Procurement Flow
Financial Flow with 3 OUs
IC AP in HK OU IC AP in China OU
on US OU @PO/Tr Price on HK OU @ PO/Tr Price
US Hongkong China
Intermediate OU
Purchasing OU Receiving OU
AP Invoice
In US OU
On Supplier IC AR in US OU IC AR in HK OU
on HK OU @ PO/Tr Price on China OU @ PO/Tr Price
Supplier ships
PO is raised The Goods
On the Supplier
Supplier
Inter Company Procurement Flow Setups
Navigation Inventory
Setup Organizations
Intercompany Transaction
Flow
Ravi Sagaram
ravi.sagaram@utstar.com
sagaram@hotmail.com
630-849-9888 mobile