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Intercompany Trade Workflow

To complete the intercompany trade processes, ensure the setup is performed so that transactions can be processed with minimal manual processing.

Setup

Ensure the an administrator sets up the following areas: 

Working with Purchase Orders

When using intercompany trade with purchase orders, the general process is as follows:

  1. If the Create Intercompany Trade on Purchase Transaction is set to Release:

    2. When the purchase order is released, the sales order is automatically created, and the following message appears:

    Sales order number XXXXXX has been created.

    If the purchase order is posted without first being released, the following message appears:

    The purchase order is created with an intercompany customer. Do you want to create a sales order using the intercompany entity of the customer?

  2. If the Create Intercompany Trade on Purchase Transaction is set to Post:

    3. When the purchase order is released, a sales order is not created.

    When the purchase order is posted, the following message appears:

    The purchase order is created with an intercompany customer. Do you want to create a sales order using the intercompany entity of the customer?

  3. In either scenario, if you select Yes when prompted to create the sales order, the sales order is automatically created.

    4. When reviewing the sales order on the Sales Order page:

    The External Document No. is updated with the purchase order number.

    The Vendor Invoice No. is updated with the posted sales invoice number.

In some situations, a purchase order might need to be reopened so that changes can be made, and then it will be released or posted again. If an associated sales order exists, a message appears asking you to apply one of the following actions:

  • Create a new sales order: Creates a new sales order based on the updated purchase order. This sales order replaces the previous sales order.
  • Update existing sales order: Updates the existing sales order with the changes made.
  • Keep the existing sales order as is: No changes are made to the existing sales order.

If Cancel is selected instead of selecting an action, the purchase order is not release or posted, but remains open.

When creating a purchase order for an intercompany trade transaction, keep the following in mind: 

  • If an entity is assigned an intercompany vendor, that vendor cannot be selected as the vendor in the header of the purchase order.
  • If the purchase order is created with an intercompany vendor, and it is released, the associated sales order is created with the following information (as shown in the table): 
Sales Order Fields Value
Header level fields  
Header Entity Entity assigned to the intercompany vendor from the purchase order
Customer Intercompany customer assigned to the entity of the purchase order
Posting Date Work Date
Order Date Work Date
External Document # Purchase order number
Line level fields  
Line level entity Header level entity of the sales order
Item Item from the purchase order
Location Location assigned to the intercompany customer
Qty Quantity from the purchase order
Unit Price Unit price from the purchase order
  • If an invoice or shipment/invoice is created and then posted, the original purchase order is updated with the invoice number.

Working with Sales Orders

When using intercompany trade with sales orders, the general process is as follows:

  1. If the Create Intercompany Trade on Sales Transaction is set to Release:

    2. When the sales order is released, the purchase order is automatically created, and the following message appears:

    Purchase order number XXXXXX has been created.

    If the sales order is posted without first being released, the following message appears:

    The sales order is created with an intercompany customer.

    Do you want to create a purchase order using the intercompany entity of the customer?

  2. If the Create Intercompany Trade on Sales Transaction is set to Post:

    3. When the sales order is released, a purchase order is not created.

    When the sales order is posted, the following message appears:

    The sales order is created with an intercompany customer.

    Do you want to create a purchase order using the intercompany entity of the customer?

  3. In either scenario, if you select Yes when prompted to create the purchase order, the purchase order is automatically created.
  4. When you review the purchase order on the Purchase Order page:

    5. The IC Doc Number is updated with the sales order number.

    The Vendor Invoice No. is updated with the posted sales invoice number.

In some situations, you might need to reopen a sales order to make changes and then release or post it again. If an associated purchase order exists, you are asked to apply one of the following actions:

  • Create a new purchase order: Creates a new purchase order based on the updated sales order. This purchase order replaces the previous purchase order.
  • Update existing purchase order: Updates the existing purchase order with the changes made.
  • Keep the existing purchase order as is: No changes are made to the purchase order.

If Cancel is selected instead of selecting an action, the sales order is not release or posted, but remains open.

When creating a sales order for an intercompany trade transaction, keep the following in mind: 

  • If an entity is assigned an intercompany customer, that customer cannot be selected as the customer in the header of the sales order.
  • At the time of posting, if the customer in the sales order is an intercompany customer, the following additional confirmation message appears:

    This sales order is created with an intercompany customer. Would you like to create a purchase order in the vendor entity? 

    • When Yes is selected, the associated purchase order is created with the following information (as shown in the table).
      After the sales order is posted for the shipment, the purchase order is updated with the sales invoice number.
    • When No is selected, nothing further is processed on the sales order. When the sales shipment is created and posted, a purchase order is created with the following information (as shown in the table).
  • If the sales invoice is created and posted, the associated purchase order is created with the following information (as shown in the table): 
Purchase Order Fields Value
Header level fields  
Header Entity Entity assigned to the intercompany customer from the sales order
Vendor Intercompany vendor assigned to the entity of the sales order
Posting Date Work Date
Order Date Work Date
Vendor Invoice # Sales invoice number (delayed if shipment to invoice is posted in two steps)
Line level fields  
Line level entity Defaulted from the header
Item # Item #number from the sales order
Location Location assigned to the intercompany vendor
Qty Quantity from the sales order
Unit Price Include or exclude tax

For the sales order, note the following information:

  • For an intercompany trade transaction, the sell-to customer number, buy-from vendor number cannot be changed.
  • When deleting a sales order that is an intercompany trade, a warning message appears. Additionally, after the sales order is deleted, the associated purchase order cannot be edited.

Working with Return Orders

Review the following information for processing a purchase return order that creates a sales return order.

When using intercompany trade with purchase return orders, the general process is as follows:

  1. On the Purchase Return Order page, create the purchase return order and release or post it.

    2. When the purchase return order is released or posted, the following message appears: 

    The purchase return order is created with an intercompany vendor. Do you want to create a sales return order using the intercompany entity of the vendor?

  2. If Yes is selected, the sales return order is automatically created.
    When reviewing the sales order on the Sales Return Order page, the External Document No. is updated with the purchase return order number.
  3. Post the sales return order.
    When reviewing the purchase return order on the Purchase Return Order page, the Vendor Cr. Memo No. is updated with the posted sales credit memo number.

In some situations, a purchase return order might need to be reopened so that changes can be made, and then it will be released or posted again. If an associated sales return order exists, a message appears asking you to apply one of the following actions:

  • Create a new sales return order: Creates a new sales return order based on the updated purchase return order. This sales return order replaces the previous sales return order.
  • Update existing sales return order: Updates the existing sales return order with the changes made.
  • Keep the existing sales return order as is: No changes are made to the existing sales return order.

If Cancel is selected instead of selecting an action, the purchase return order is not release or posted, but remains open.

When creating a purchase return order for the intercompany vendor, and it is released, the associated sales return order is created with the following information (as shown in the table).

After the sales return order is created, the invoice or invoice/receipt can be created. The invoice number for the purchase order is updated with the invoice number of the sales return order.

Sales Return Order Fields Value
Header level fields  
Header Entity Entity assigned to the intercompany vendor from the purchase return order
Customer Intercompany customer assigned to the entity of the purchase return order
Posting Date Work Date
Order Date Work Date
External Document Purchase return order number
Line level fields  
Line level entity Header level entity of the sales return order
Item Item from the purchase return order
Location Location assigned to the intercompany customer
Qty Quantity from the purchase return order
Unit Price Unit price from the purchase return order

For the sales return order, note the following information:

  • For an intercompany trade transaction, the sell-to customer number, buy-from vendor number cannot be changed.
  • When deleting a sales return order that is an intercompany trade, a warning message appears. Additionally, after the sales return order is deleted, the associated purchase return order cannot be edited.