Intercompany Process

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tercompany Process

Intercompany invoicing is possible only between two operating units. You cannot invoice bet
The intercompany AR invoice is the transaction used to record intercompany receivable acco
tax, and freight and crediting intercompany revenue.
The intercompany AP invoice is the transaction used to record the payable accounting for th
and crediting the intercompany payable account.

Oracle supports intercompany invoicing when:

Shipping operating unit is different from selling operating unit and
Receiving operating unit is different from procuring operating unit.
The intercompany transaction flow establishes the relationship between one operating unit (
Unit) about the actual movement of goods
Intercompany transaction flow is of two types shipping flow and procuring flow.
You need to setup intercompany transaction flow of type shipping when selling operating un
You need to setup intercompany transaction flow of type procuring when buying operating u
By enabling advanced accounting for an intercompany transaction flow, you would be able
same physical movement of goods.

you need to use the Advanced Accounting option for enabling intercompany invoicing for procurin
Accounting option at the intercompany transaction header, then no logical transactions will be gene
When advanced accounting is enabled for an intercompany transaction flow, you will be able to define
accounting is set to No, then an intercompany transaction flow can have only one intercompany relati

Intercompany Transaction Flow, physical goods never flow through intermediate operating unit. Oracle
intercompany invoices between multiple operating units are raised. No logical transactions will be cre

Advanced Accounting option is not available for internal requisitions internal sales order busines
You have an flexibility to switch off intercompany invoicing for internal sales orders by setting the profi

Intercompany invoicing is possible for inter-org transfers of type In-transit only through Internal sa
inventory orgs belonging two different operating units without internal sales Orders. Also note tha
through Internal sales Orders.
At present intercompany invoicing does not support any sales credit check
Transfer Price: Transfer Price is the price at which an item is transferred from one operating unit to a

You can make use of the external API feature of the intercompany invoicing to develop your own custo
MTL_INTERCOMPANY_INVOICES.get_transfer_price and the name of the file is INVICIVB.pls

Please ensure that the transfer price is not 0, You will be able to create an intercompany AR invoice bu
reconciliation discrepancy.
You need to set the profile QP: Security Control to Off, to generate logical transactions and for ra
Freight: Freight charges can be added to the intercompany invoice only for shipping flows. Auto-invo
defined at the intercompany transaction relationship between two operating units. You need to define
Item as Freight. You need to setup a modifier of type Freight and Special Charge List and define the
the item to be mentioned on the invoice line is determined from the profile Tax: Invoice Item as Freig

Tax: You can also apply tax to intercompany invoices. Auto-invoice will apply taxes only if you set Tax
relationship between two operating units. If you do not want tax to be calculated on freight lines, mak
AR creates a line item of type 'Line' on the invoice for the freight amount and the tax will be calculate
Freight

You have different currency options to be used in an intercompany invoice. The attributes that determ
option INV: Advanced Pricing for Intercompany Invoice and Currency Code attribute in int

Intercompany Drop
Process Steps
1 Order Fulfillment

2 Create Purchase requisitions Purchase Release

3 Create Purchase Release Requisition Import

4 Requisition to Receipt

5 Create Intercompany AR Invoice

6 AutoInvoice Master Program

7 Create Intercompany AP Invoice

8 Payables Open Interface Import

9 Journal Processing

Demo

External Drop Shipment

In this business process the sales order is placed in one operating unit, and good

Sr.No

Process

1 Enter, book the customer order

2 Run Import Requisition
3 Run Auto Create PO

4 Receive the PO

5 Cost the transactions

6 Create Intercompany AR invoices

7 Validation
8 Run Auto Invoice Master Program
9 Create AP intercompany invoices
10 Run Expense Report Import

rcompany Drop Ship - External Drop Ship

Orders, Returns > Sales Orders

Orders, Returns > Purchase Release

Purchasing Super User > Requests >

Requisition Import

Purchasing Super User > Receiving >

Receipts

Inventory > View > Requests

Receivables Manager > Interfaces >

AutoInvoice

Inventory Super User > Requests

Purchasing Super User > Requests

d in one operating unit, and goods are directly shipped from a supplier belonging to another business unit.

Resposibility

V1 Order management
VC Purchasing
VC Purchasing

S1 Inventory
S1 Costing
T1 Costing
M1 Costing
S1 Inventory
T1 Inventory

VC Receivables Receivables
VJ Receivables Receivables
T1 Inventory
M1 Inventory
VJ Payables
V1 Payables

hip - External Drop Ship

If it is an intercompany order, fulfillment will be done from warehouses under other operating units.
Depending on the source of order line, shipping warehouse, receiving warehouse and item attributes,
External Drop Shipment
Internal Transfer
Internal Drop Shipment
In sister operating unit if the item is there in stock then it will reserved for the order line.
In case it needs to be manufactured internally then a WIP job will be created.
If it is to be procured or shipped directly by the supplier then a purchase requisition is created.
Invoice is generated once the item is shipped and the line is closed.

If on order line the receiving org is under a sister operating unit and the source on order line is Extern
In this scenario, purchase requisition would be created to a supplier in sister operating unit. The requi
Blanket release. And then supplier will send the items directly to the End Customer.
To create purchase requisition run the program Purchase Release from OM responsibility

Parameters available for this program are

Import Source = CTO (for the lines from OM)--- Check it should be "Order Entry"
Group By = Item (Other options available are Buyer, Vendor, Category Location and All)
Initial Approval After Req Import = Yes
The requisition number can be viewed from sales order form > Actions > Additional Order Information

Once the supplier of sister operating unit ships the goods to end customer, the logical receiving of goo
This process covers logical receiving of goods in inventory.
Once the logical receiving is done, the sales order line will be ship confirmed automatically
Run the request Create Intercompany AR Invoices,
Enter the shipping operating unit in the parameter
Shipping/Procuring Operating Unit
Note :
Profile INV: Advanced Pricing for Intercompany Invoice to No to avoid using advance pricing to dete
price list) attached in the internal customer bill-to site will be used to determine the transfer price.
In case the program Create Intercompany AR Invoices ends in error, please open the log and see th
price is available for item in transfer price list. If it is not available, then update the price list manually
again.
The profile INV:Intercompany Invoice for Internal Orders should also be set to Yes to enable intercom

To create invoice for selling operating, AutoInvoice Master Program has to be run.
Successful completion of Create Intercompany AR Invoice program is a pre-requisite to run the Auto i
Enter following parameters for AutoInvoice Master Program
Invoice Source = Intercompany
Default Date

Run the request Create Intercompany AP Invoice, enter selling operating unit in the parameter
Selling/Receiving Operating Unit
This program will populate data in the AP interface table, it uses details from Intercompany receivable

Run the request Payables Open Interface Import, enter following parameters
Operating Unit the selling operating unit
Source select source as intercompany
This will create payables invoices from data populated in interface tables by Create Intercompany AP

The sub-leger accounting entries will be created at the time of creation of accounts receivables and ac
This process will post those entries in GL

directly shipped from a supplier belonging to another business unit.

Description

Record the order header and order line. Order currency is EUR. Source at the order line is set to Exter
operating unit VC.
This program creates requisition for the sales order. Source needs to be set as Order Entry. Make su

Convert the requisition to the PO. Check the supplier on the PO and order currency. Check that Ship-To
Send the PO to the Supplier.
After supplier ships the goods to customer, make a receipt against the PO. This receipt will be of type
transactions in other operating unit. If the parameter Defer logical transactions in S1 organization is
Once the logical transactions are deferred then you can run the concurrent program Create Deferred
organizations associated in Intercompany Transaction Flow (i.e., S1, T1 and M1) to create the logical tr
All the logical transactions need to be costed.

Run the concurrent program Create Intercompany AR invoices. This program populates AR interface
both operating units i.e., you can still run T1 intercompany AR program before S1 intercompany AR.

AR intercompany invoice cannot be created for the following reasons:

1. Logical transactions are not created.
2. Transactions are not costed.
3. Transfer price cannot be determined. Check that the transfer price is correctly setup.
4. Exchange rate could not be determined.
This step successfully populates AR interfaces tables. Check for freight and tax codes.
This program will create AR invoice from the data populated in AR interface tables. Once this program
invoice in Oracle Receivables.

Run the concurrent program Create Intercompany AP invoices. This program populates AP interface t

This program generates intercompany AP invoice from the data populated in the AP interface tables a
Payables.

Intercompany Drop
Process Steps
1 Order Fulfillment

2 Create Purchase requisitions Purchase Release

3 Create Purchase Release Requisition Import

4 Requisition to Receipt

5 Pick Pack Ship

6 Create Intercompany AR Invoice

7 AutoInvoice Master Program

8 Create Intercompany AP Invoice

9 Payables Open Interface Import

10 Journal Processing

Demo

Often you will find that sales organization is different from the distribution organ

Sr.No

Process
1 Enter, book the customer order
2 Run Pick Release Sales Order

3 Ship Confirm the delivery

4 Cost the transactions

5 Create Intercompany AR invoices

6 Validation
7 Run Auto Invoice Master Program
8 Create AP intercompany Invoice
9 Run Expense Report Import

rcompany Drop Ship - Internal Drop Ship (like Back

Orders, Returns > Sales Orders

Orders, Returns > Purchase Release

Purchasing Super User > Requests >
Requisition Import

Purchasing Super User > Receiving >

Receipts

Order Management Super User >

Shipping > Transactions

Inventory > View > Requests

Receivables Manager > Interfaces >

AutoInvoice

Inventory Super User > Requests

Purchasing Super User > Requests

erent from the distribution organization. In these cases, goods are only financially transferred from manufacturi

Resposibility
V1 Order management
V1 Order management

S1 Shipping
VC Costing
VJ Costing
V1 Costing
VC Inventory
VJ Inventory

VC Receivables
VJ Receivables
VJ Inventory
V1 Inventory
VJ Payable
V1 Payable

hip - Internal Drop Ship (like Back To Back Order)

If it is an intercompany order, fulfillment will be done from warehouses under other operating units.
Depending on the source of order line, shipping warehouse, receiving warehouse and item attributes,
External Drop Shipment
Internal Transfer
Internal Drop Shipment
In sister operating unit if the item is there in stock then it will reserved for the order line.
In case it needs to be manufactured internally then a WIP job will be created.
If it is to be procured or shipped directly by the supplier then a purchase requisition is created.
Invoice is generated once the item is shipped and the line is closed.

If the item ordered is an ATO item and a buy item and if the shipping warehouse is under sister operat

Parameters available for this program are

Import Source = CTO (for the lines from OM)
Group By = Item (Other options available are Buyer, Vendor, Category Location and All)
Initial Approval After Req Import = Yes
Sales order line would be reserved with the Purchase Requisition. This can be seen in Tools > Scheduli

After supplier ships the items, receive the items in sister operating units inventory using purchase ord
On Find Expected Receipts form go to Supplier and Internal tab and enter purchase Order number and
In case of Direct routing, receive the items directly in the Subinventory by entering Subinventory an
items.
In case of standard routing, receive the items first in receiving area and then transfer the items to co
Once item is received in Subinventory, the sales order line status will change to Awaiting Shipping. It
directly from sister operating unit.
Once the item is available in sister (shipping) operating unit for the sales order line through any of the
On-hand stock available
WIP job for item is complete
Item procured from supplier
Then, the item would be picked up from the stores and moved into staging for packing and shipping.
Once packed, lines are assigned to a delivery or Trip and ship confirmed.

Run the request Create Intercompany AR Invoices,

Enter the shipping operating unit in the parameter
Shipping/Procuring Operating Unit
Note :
Profile INV: Advanced Pricing for Intercompany Invoice to No to avoid using advance pricing to dete
price list) attached in the internal customer bill-to site will be used to determine the transfer price.
In case the program Create Intercompany AR Invoices ends in error, please open the log and see th
price is available for item in transfer price list. If it is not available, then update the price list manually
again.
The profile INV:Intercompany Invoice for Internal Orders should also be set to Yes to enable intercom

To create invoice for selling operating, AutoInvoice Master Program has to be run.
Successful completion of Create Intercompany AR Invoice program is a pre-requisite to run the Auto i
Enter following parameters for AutoInvoice Master Program
Invoice Source = Intercompany
Default Date

Run the request Create Intercompany AP Invoice, enter selling operating unit in the parameter
Selling/Receiving Operating Unit
This program will populate data in the AP interface table, it uses details from Intercompany receivable

Run the request Payables Open Interface Import, enter following parameters
Operating Unit the selling operating unit
Source select source as intercompany
This will create payables invoices from data populated in interface tables by Create Intercompany AP

The sub-leger accounting entries will be created at the time of creation of accounts receivables and ac
This process will post those entries in GL

n. In these cases, goods are only financially transferred from manufacturing company to the sales company with

Description

Record the order header and order line. Order currency is EUR. Source at the order line is set to Intern
(S1) in China.
This program creates a move order in S1 for shipping the goods.

Allocate the material for this move order and transact the move order. This transaction will create logi
issues in S1 and M1.
If the logical transactions are deferred then, the inventory manager in each operating unit needs to ru
All the logical transactions need to be costed.

Run Create Intercompany AR invoices. This program can be run mutually exclusive in both operating
program before VJ intercompany AR.

AR intercompany invoice cannot be created for the following reasons:

1. Logical transactions are not created.
2. Transactions are not costed.
3. Transfer price cannot be determined. Check that the transfer price is correctly setup.
4. Exchange rate could not be determined.
This successfully populates AR interfaces tables. Check for freight and tax codes.
Once this program is run successfully, you will see the intercompany AR invoice in Oracle Receivables

This program populates AP interface tables. Only those records that were successfully processed in ste

This program generates intercompany AP invoice and you will see the intercompany AP invoice in Ora

ganization.

Intercompany Drop
Process Steps
1 Order Fulfillment

2 Schedule to Release

3 Pick Pack Ship

4 Create Intercompany AR Invoice

5 AutoInvoice Master Program

6 Create Intercompany AP Invoice

7 Payables Open Interface Import

8 Journal Processing

rcompany Drop Ship - Internal Drop Ship

Orders, Returns > Sales Orders

Order Management Super User >

Shipping > Transactions

Inventory > View > Requests

Receivables Manager > Interfaces >

AutoInvoice

Inventory Super User > Requests

Purchasing Super User > Requests

hip - Internal Drop Ship

If it is an intercompany order, fulfillment will be done from warehouses under other operating units.
Depending on the source of order line, shipping warehouse, receiving warehouse and item attributes,
External Drop Shipment
Internal Transfer
Internal Drop Shipment
In sister operating unit if the item is there in stock then it will reserved for the order line.
In case it needs to be manufactured internally then a WIP job will be created.
If it is to be procured or shipped directly by the supplier then a purchase requisition is created.
Invoice is generated once the item is shipped and the line is closed.

If the order is to be fulfilled by sister (shipping) operating unit and the item on sales order line is an AT
automatically if on-hand stock is not available. System will reserve the WIP job against the SO line aut
After Manufacturing WIP job would be completed and SO line status will be changed to 'Awaiting Shipp

Once the item is available in sister (shipping) operating unit for the sales order line through any of the
On-hand stock available
WIP job for item is complete
Item procured from supplier
Then, the item would be picked up from the stores and moved into staging for packing and shipping.
Once packed, lines are assigned to a delivery or Trip and ship confirmed.

Run the request Create Intercompany AR Invoices,

Enter the shipping operating unit in the parameter
Shipping/Procuring Operating Unit
Note :
Profile INV: Advanced Pricing for Intercompany Invoice to No to avoid using advance pricing to dete
price list) attached in the internal customer bill-to site will be used to determine the transfer price.
In case the program Create Intercompany AR Invoices ends in error, please open the log and see th
price is available for item in transfer price list. If it is not available, then update the price list manually
again.
The profile INV:Intercompany Invoice for Internal Orders should also be set to Yes to enable intercom

To create invoice for selling operating, AutoInvoice Master Program has to be run.
Successful completion of Create Intercompany AR Invoice program is a pre-requisite to run the Auto i
Enter following parameters for AutoInvoice Master Program
Invoice Source = Intercompany
Default Date

Run the request Create Intercompany AP Invoice, enter selling operating unit in the parameter
Selling/Receiving Operating Unit
This program will populate data in the AP interface table, it uses details from Intercompany receivable

Run the request Payables Open Interface Import, enter following parameters
Operating Unit the selling operating unit
Source select source as intercompany
This will create payables invoices from data populated in interface tables by Create Intercompany AP

The sub-leger accounting entries will be created at the time of creation of accounts receivables and ac
This process will post those entries in GL

Intercompany- I
Organization
Selling/Source

Process Steps
1 Order Fulfillment

Selling/Source

2 Create Internal Requisition

Selling/Source

3 Approve Internal Requisition

Selling/Source

4 Run Create Internal Orders Program

Sister/Destinatio
n

Selling/Source

Run Import Orders Program

(Internal Order created in Booked
State)

Query Internal Order created

Selling/Source

Change Management

Sister/Destinatio
n

Schedule Internal Sales Order

Sister/Destinatio
n

Reserve Internal Sales Order

Sister/Destinatio
n
Sister/Destinatio
n

Schedule to Release

Pick Pack Ship

Selling/Source

Receive Against an IR

Selling/Source

Pick Pack Ship

Sister/Destinatio
n

Create Intercompany AR Invoice

Selling/Source

AutoInvoice Master Program

Selling/Source

Create Intercompany AP Invoice

Selling/Source

Payables Open Interface Import

Selling/Source &
Sister/Destinatio
n

Journal Processing

Demo

A common business practice in multi-national companies is interna

Manufacturing operations are spread out geographically. For exam
assembly is done in each country.
Central manufacturing facility but multiple distribution centers.
The demand is mostly generated by a min-max planning at the sou

Sr.No

Process
1 Run Mi-Max Planning Report
2 Run Import Requisition request
3 Approve Internal Requisition
4 Run Create Internal Order
5 Run Order Import request
6 Pick Release the Sales Order
7 Confirm shipment of the goods
8 Receive the goods
9 Cost the transactions
10 Create Intercompany AR invoices
11 Run Auto Invoice Master Program
12 Create AP intercompany invoices
13 Run Expense Report Import

Intercompany- Internal Transfer (IR-ISO)

Orders, Returns > Sales Orders

Purchasing Super User >

Requisition > Requisitions

Purchasing Super User >

Requisition > Requisitions
Purchasing Super User >
Requests >
Orders, Returns > Import Orders
> Order Import Request

Orders, Returns > Order

Organizer

Orders, Returns > Sales Order

Orders, Returns > Sales Orders

> Line

Orders, Returns > Sales Orders

> Line

Order Management Super User

>
Shipping > Transactions

Inventory Super User >

Transactions > Receiving >
Receipts

Order Management Super User

>
Shipping > Transactions

Inventory > View > Requests

Receivables Manager >

Interfaces > AutoInvoice

Inventory Super User >

Requests

Purchasing Super User >

Requests

Create Accounting

in multi-national companies is internal fulfillment. You will find two common scenarios that need internal fulfillm
are spread out geographically. For example, in automobile industries critical assemblies like engine and gear ass
untry.
ity but multiple distribution centers.
ated by a min-max planning at the source organization

Resposibility
M1 Inventory
V1 Purchasing
V1 Purchasing
V1 Purchasing
VC Order Entry
S1 Shipping
S1 Shipping
M1 Inventory
S1 Costing
S1 Inventory
S1 Receivables
M1 Inventory
M1 Payables

y- Internal Transfer (IR-ISO)

If it is an intercompany order, fulfillment will be done from warehouses under other operating units.
For this an Internal Requisition will be created to procure item from sister operating unit.
In sister operating unit if the item is there in stock then it will reserved for the order line. In case it nee
job will be created.

Internal requisitions would be created in two ways:

1. From the external sales order, system would automatically create based on sourcing rules.
2. Manually create internal requisition for internal replenishment which can be used to fulfill the sales
manufacturing.
To create Internal Requisitions Manually follow the below
Type = Internal
Enter Item = HMD60U ( For example)
Need by date = 30-Jun-2014
Price = Will be populated from the Source Inventory Orgs Cost
Select the Destination (Receiving) and Sourcing Inventory Org and locations as appropriate
Note:
If the profile POR: Urgent flag maps to shipping Priority is set to a value of either High or Standard pr
the Urgent flag in Details (T) tab is ticked, shipping priority of line on internal sales order will be deci

Internal requisitions created from external sales order would be auto approved in general.
Manual requisitions will go for approval as per the employee supervisor hierarchy.

The approved internal requisition details needs to be interfaced to order management module so that
operating unit.

To create internal sales orders from the interface data of internal requisition run the request Order Im
This program needs to be run from the OU from where Internal Sales Order to be created.
Select following parameters while running the request
Operating Unit Select operating unit in which internal sales order to be created
Order Source select Internal as the data interfaced from internal requisition will have a source as
Order Reference give internal requisition number that was created in which inventory has to be rep

To query internal sales order created go to Order Organizer screen, enter below details,
Order Source = Internal
Order Source Reference = Internal Requisition number
Click on find to query the internal sales order. The order will be created in booked status and line woul
eligible.

Now the internal requisitions are converted in to Internal Sales Orders.

If changes are needed on the sales order or in the requisitions, it can be done. System will cascade th
Sales Order and Vice Versa.
To sync changes between internal sales order and internal requisition following setting is to be done
Profile POR: Sync up Need by date on IR with OM is set to yes
Processing constraint restricting changes on request date and quantity is disabled for an internal sal
Quantity, need by date and cancellation of requisitions would be automatically reflected in the sales o
reflected in the Request date field in Sales OrderAt the time of changing quantity it will ask for a reaso
save the changes.
To do the changes in Requisitions go to Requisitions Summary, query the Requisition then go to Tools >
This will open the HTML page, where you can do the changes in Need by date and quantity.
Before submitting the changes, system will highlight the old and changed values.
After submission system will display a message that the changes have been done in the correspondin
Same kind of messages will be popped up, when you do the changes in internal Sales order.
Note:
These changes will work on the booked orders too. However, if the WIP Jobs are created from Sales ord
requisition still go to sales order line, but not to the WIP jobs. Hence it is not recommended to do the c

Scheduling of internal sales order lines is done automatically, while booking the order if there is no ho
The request date on each line is used for deriving the schedule ship date.
For manual scheduling follow the below steps.
Orders, Returns > Sales Orders > Line > Tools > Scheduling > Schedule
Scheduling can be done by running the concurrent program too.

The system will allow reservation on line once the scheduling activity on the order lines are complete.
To reserve the lines go to
Orders, Returns > Sales Orders > Line > Tools > Scheduling > Reserve
To enter serial number select
Orders, Returns > Sales Orders > Line > Tools > Scheduling > Reservation Details
If on-hand stock is not available for the ATO item ordered then system would create a WIP job and the
and Sales order line would be reserved against the WIP job
The details of WIP job can be obtained from Tools > Scheduling> Reservation Details.

After the line is progressed for ATO item, system would create a WIP job automatically and reserve ag
These WIP jobs would be scheduled based on schedule ship date in SO and released for manufacturin
completed and so line status will be changed to Awaiting Shipping from Production Open.

Once the item is available in sister (shipping) operating unit for the sales order line through any of the
On-hand stock available
WIP job for item is complete
Item procured from supplier
Then, the item would be picked up from the stores and moved into staging for packing and shipping.
Once packed, lines are assigned to a delivery or Trip and ship confirmed. After ship confirmation, inter
close the delivery and interface the line to AR for invoicing

After sister operating unit ships the items, items needs to be received in Selling Orgs inventory using
On Find Expected Receipts form go to Supplier and Internal tab and enter internal requisition number
In case of Direct routing, receive the items directly in the Subinventory by entering Subinventory an
the items. ( This is used in Vaisala)
In case of standard routing, receive the items first in receiving area and then transfer the items to co
Once item is received in Subinventory, the line status in the sales order would be changed to Awaiting
external Sales orders.

Once the item is available in sister (shipping) operating unit for the sales order line through any of the
On-hand stock available
WIP job for item is complete
Item procured from supplier
Then, the item would be picked up from the stores and moved into staging for packing and shipping.
Once packed, lines are assigned to a delivery or Trip and ship confirmed. After ship confirmation, inter
close the delivery and interface the line to AR for invoicing

Run the request Create Intercompany AR Invoices,

Enter the shipping operating unit in the parameter
Shipping/Procuring Operating Unit
Note :
Profile INV: Advanced Pricing for Intercompany Invoice to No to avoid using advance pricing to dete
(transfer price list) attached in the internal customer bill-to site will be used to determine the transfer
In case the program Create Intercompany AR Invoices ends in error, please open the log and see th
then check if price is available for item in transfer price list. If it is not available, then update the price
price and run the program again.
The profile INV:Intercompany Invoice for Internal Orders should also be set to Yes to enable intercom

To create invoice for selling operating, AutoInvoice Master Program has to be run.
Successful completion of Create Intercompany AR Invoice program is a pre-requisite to run the Auto i
Enter following parameters for AutoInvoice Master Program
Invoice Source = Intercompany
Default Date

Run the request Create Intercompany AP Invoice, enter selling operating unit in the parameter
Selling/Receiving Operating Unit
This program will populate data in the AP interface table, it uses details from Intercompany receivable

Run the request Payables Open Interface Import, enter following parameters
Operating Unit the selling operating unit
Source select source as intercompany
This will create payables invoices from data populated in interface tables by Create Intercompany AP

The sub-leger accounting entries will be created at the time of creation of accounts receivables and ac
operating units. This process will post those entries in GL

ternal fulfillment. You will find two common scenarios that need internal fulfillment from another operating unit:
example, in automobile industries critical assemblies like engine and gear assemblies are produced in a centra

ers.
e source organization

Description
Min-Max planning will generate an internal requisition depending on the Min-Max setting and on-hand
Import the internal requisition.
Approve Internal Requisition
This will populate OE interface tables.

An internal sales order is created. Book the order. Check that the source is internal with shipping org a
Check that the intercompany price list is setup properly so that the price on sales order is correct
The internal sales order is pick released. Pick release creates a move order and then allocate the mate
Check that the shipping network between S1 AND M1 is of type In-Transit.
No intercompany invoice will be created if the shipping network is of type Direct Transfer.
Receive the goods
Check that the cost manager is running and has costed the internal sales order issue

Run Create Intercompany AR invoices.

The currency of the intercompany AR invoice is based on the parameter Currency Code for in interco
Once this program is run successfully, you will see the intercompany AR invoice in Oracle Receivables
This program populates AP interface tables.
This program generates intercompany AP invoice and you will see the intercompany AP invoice in Ora