Action policies
Action policies are internal business controls that you can create to enforce business rules that you outline for your business. Before creating intercompany purchasing policies, you must set up the intercompany purchasing policy parameters. Each policy type has its own policy parameters.
Activate trading relationships
To set up purchase order action policies, set up intercompany trading relationships for the vendor by going to Procurement and sourcing > Vendors > All vendors > General > Intercompany.
You can also set up the intercompany sales policy relationship from the customer. Open Sales and marketing > Customers > All customers, select the General tab, and then select Intercompany on the Action Pane.
You don't need to go through both sides (vendor and customer) to set up the relationship. Instead, you can perform the complete configuration from one side. Then, you can access it from the vendor and customer in each company.
In the Sales relation section of the Trading relationship page, select the Customer company field and then select the company that you want to use for intercompany transactions in the My account field.
Turn on the Active option to activate the relationship between the two companies. Then, the complete trading relation (both directions) is activated, which makes the relationship available in the designated Customer company.
Purchase order policies, purchase value mapping, and purchase agreement policies apply to the vendor, while sales order policies, sales value mapping, and sales agreement policies apply to the customer.
You can deactivate the relationship by setting the Active field to No, which saves the configuration. If you prefer to delete the relationship completely, which sets all parameters to blank, you must select the Remove relationship button.
Purchase order policies - Set up purchase action policies
You can define the purchase order action policies that control the interaction (business rules) between business entities. The parameters on the Set up purchase action policies page are separated into three categories:
Process parameters - Determine how to update packing slips and invoices and how the system performs the document printings for the original sales order and intercompany purchase order.
Purchase order price parameters - Determine the ability to edit prices and discounts.
Synchronization parameters - Determine which data the system syncs.
The Customer information parameter in the Header group for the intercompany purchase order and intercompany sales order controls the customer information synchronization. When you turn on the Customer information option, the system syncs the header information from the intercompany purchase order to the intercompany sales order and vice versa.
Set up sales action policies
On the Set up sales action policies page, the sales order policy parameters are in the following categories:
Process parameters - Intercompany sales order creation and picking list initiation.
Price and discount control parameters - Control of pricing between the intercompany sales order and intercompany purchase order.
Intercompany sales order invoice posting - Sales order posting and the price that you use for posting.
Payment journal - Payment journal settings.
Synchronization - Control of data synchronization between the intercompany sales order and intercompany purchase order.
If you activate Unit price equal to cost price, you can't use intercompany agreements.
Defining the Intercompany sales order numbering parameter works together with the sales order parameter that's set up in Accounts receivable.
The available options for the Intercompany sales order numbering parameter include:
Number sequence code - The system creates the sales order number according to a number sequence. You can set up the sequence in Accounts receivable > Setup > Accounts receivable parameters > Number sequences > Sales order.
Original number - If present, the system uses the number from the original sales order. Otherwise, it uses the defined number sequence for the sales order.
Company + Original number - The system uses the company ID and the original sales order. Otherwise, it uses the number sequence.
When you select Number sequence in the Sales order numbering field, you can use this number sequence instead of the standard sales order number sequence that's set up on the Accounts receivable parameters page. If the field is empty, the system uses the standard sales order number sequence.
The system uses the Customer information parameter in the Header field group for the intercompany purchase order and intercompany sales order to control the customer information synchronization through the intercompany chain.