Describe intercompany capabilities
Supply Chain Management provides a comprehensive setup for balancing intercompany transactions between two legal entities. In intercompany trade, the order transactions are synchronized between two legal entities.
On the customer page, you need to define the customers who are used for the intercompany transactions. Similarly, on the vendor page, you need to define the vendors who are used for the intercompany transactions.
In the standard data of the Supply Chain Management app, there are two legal entities: USMF and DEMF. You perform intercompany purchase transactions between these two legal entities, where DEMF purchases items from the USMF company. Therefore, you need to create an intercompany purchase order in the DEMF company. Correspondingly, an intercompany sales order is created automatically in the USMF company.
To perform this process, you first need to create an intercompany vendor in the DEMF company, which is US-001. You also need to create an intercompany customer in the USMF company, which is DE-001. Next, set up the trading policy between customer DE-001 in USMF and vendor US-001 in DEMF, which will be the trading policy between DEMF and USMF.
The Vendor page of the DEMF company has an Intercompany button under the General menu in the action pane. You need to define the trading policies by selecting the Intercompany buttons.
On the Vendor > Intercompany page, you need to change the Active field to Yes to make the vendor an intercompany vendor.
Under the Sales Relation section in the Customer company field, you need to define the legal entity with whom intercompany trading should be done by the DEMF company. Here you need to select USMF. In the My account field, you need to select DE-001, the intercompany customer.
The Customer page of the USMF company has an Intercompany button under the General menu in the action pane. You need to define the trading policies by selecting the Intercompany buttons.
On the Customer > Intercompany page, first you need to change the value of the Active field to Yes. This makes the customer an intercompany customer.
Under the Purchase Relation section, in the Vendor company field, you need to define the legal entity with whom intercompany trading should be done by the USMF company. Here, you need to select DEMF. In the My account field, select US-001, the intercompany vendor.
When you create a purchase order in the DEMF company for the vendor US-001, a sales order is automatically created in the USMF company for the customer DE-001. The Purchase order policies tab helps automate processes like printing or posting packing slips, product receipts, or invoices. You can also define rules to modify the purchase order if the sales order is modified in the USMF company.
On the Purchase and sales value mapping tab, you can map the common fields in both the legal entities, which include the mode of delivery, delivery terms, and charges codes.
You can maintain a different number sequence for the intercompany sales order by configuring it on the Sales order policies tab. You can also define rules here to modify the sales order if the purchase order is modified in the DEMF company.