How does the intercompany shipping flow work ? (Ship stock from
different Operating Unit)
Sales Order - OU A
- Create a Sales
order for OU A
- Every sales
order line has a field called "Warehouse", if the "Source
Type = Internal" then you can choose any of the inventory orgs from
where the good need to be shipped. If the inventory org selected belong
to a different OU then system automatically treats this as intercompany
transaction
- Select the
warehouse as inventory org B which belongs to OU B
- Book the order
(Note that the workflow status can be different depending on item
attributes (if the item is ATO item then there is more detailed tracking
of status)
- Reserve, Pick
Release and Ship the order
- "Interface
Trip Trop" concurrent request determines the "Transfer"
price charged by OU B to OU A
- Once this
process is complete, system automatically generates following accounting
entires in R12
- OU B - Shipping
OU
- Deferred COGS
based on Cost in Inv Org B - Debit
- Inventory
Valuation - Credit
Customer Invoice - OU A
- Run Autoinvoice
for Selling OU A, it would create following account entries (Depending on
accounting rule choosen)
- Trade
Receivables - Debit
- Deferred
Freight Revenue - Credit
- Deferred Trade
Revenue - Credit
Intercompany AR Invoice - OU B
- Now run
"Create Intercompany AR Invoices" under "Inventory".
This will then populate data into AR interface tables for intercompany AR
invoice from OU B to OUA
- Run autoinvoice
in OU B, this process will create intercompany AR invoice based on
transfer price. In case "Invoice Freight As Revenue" profile is
turned on, "Freight Charges" are also automatically included as
a separate line in the invoice. In case TAXes are defined, tax is also
automatically applied
- This process
will also create accounting entries for OU B
- Intercompany
Receivables - Debit
- Intercompany
Revenue - Credit
- Intercompany
Freight Revenue - Credit
Intercompany AP Invoice - OU A
- Now run
"Create Intercompany AP Invoices" under "Inventory".
This will then populate data into AP interface tables for intercompany AP
invoice from OU A to OUB
- Run "Open
Invoices Import" program under Payables to create a Intercompany
payables invoice which will have exactly same amount as receivables
invoice
- Trade COGS -
Debit
- Freight - Debit
- Intercompany
Payables - Credit
- Once GL posting
is done then Deferred COGS and Deferred Revenue both get recognized
