Intercompany Setups

Intercompany Transactions are the transactions between two legal entities related to same Organization. Following are the setups need to be defined for Intercompany Transactions.

Selling Operating Unit: Ulradent Utah (japan) Shipping Operating Unit: Ulradent Ohio (vision) Step1: Define Transaction Type Responsibility: Receivables Manager, Ulradent Ohio Navigation: Setup Transactions Transaction Type Define New transaction type as shown below.

Step2: Assign Document Sequence to new Transaction Type (Defined in Step1) Responsibility: General Ledger Manager, Ulradent Ohio Navigation: Setup : Financials Sequences Document Assign Assign a document sequence to the transaction type 'Intercompany' as shown below.

Step3: Define Intercompany Transaction Flow and Intercompany Relations Responsibility: Inventory Manager, Ulradent Ohio Navigation: Setup Organizations Intercompany Transaction Flows Define Intercompany Transaction flow and Intercompany Relations as shown below.

Mandatory Setups to Check: 1. Make Sure there are no security rules defined when shipping the item from other Operating unit and Auto Accounting rules are defined(for Selling OU) to default the balancing segment values with Table Name as Standard Lines(Which will get the values from Standard line item or Inventory Item used)

Path for Security Rules: Responsibility: General Ledger Responsibility Navigation: Setup Financials Flexfields Validation Security Define Path for Auto Accounting: Responsibility: Receivables Responsibility Navigation: Setup Transactions Auto Accounting
2. Make Sure Shipping parameters are defined for both Shipping and Selling operating units. Responsibility: Order Management Responsibility Navigation: Shipping Setup Shipping Parameters 3. Make Sure that the COGS account is assigned to the Transaction Type used for SO in Selling Organization. Responsibility: Order Management Responsibility Navigation: Setup-> Transaction Type 4. Make sure that a value is assigned for System parameter 'Inventory Item For Freight' Responsibility: Order Management Responsibility Navigation: Setup System Parameters Values

Intercompany Transaction Process: 1. Create and Book Sales Order: Responsibility: Ulradent Utah Order Management Responsibility Navigation: Orders, Returns Sales Orders Create a Sales Order with Ulradent Ohio Shipping Warehouse and book the order as shown below.

2. Release the Order and Ship the Item Responsibility: Ulradent Ohio Order Management Responsibility Navigation: Shipping Release Sales Orders Release Sales Orders Release and ship the order. Then notice the transaction status as 'Shipped' or 'Interfaced' on Shipping Transactions form as shown below. Navigation: Shipping Transactions

3. Run Workflow Background process Responsibility: Ulradent Utah Inventory Responsibility Navigation: Workflow Background Engine Run Workflow Background Process. 4. Run Auto Invoice Master Program to create Customer Invoice Responsibility: Ulradent Utah Receivables Responsibility Navigation: View Requests Auto Invoice Master Program The invoice created is shown below. Navigation: Transactions Transactions

5. Create Intercompany AR Invoice Responsibility: Ulradent Ohio Inventory Responsibility Navigation: Reports Intercompany Invoicing Run the Program 'Create Intercompany AR Invoices' to create Intercompany AR invoice. 6. Import Intercompany AR invoice Responsibility: Ulradent Ohio Receivables Responsibility

Run Auto Invoice Master Program with parameter Source as 'Intercompany'. The Intercompany invoice created is shown below. Navigation: Transactions Transactions

7. Create Intercompany AP Invoice Responsibility: Ulradent Utah Inventory Responsibility Navigation: Reports Intercompany Invoicing Run the Program 'Create Intercompany AP Invoices' to create Intercompany AP invoice. 8. Import Intercompany AP invoice Responsibility: Ulradent Utah Payables Responsibility Run Payables Open Interface Program with parameter Source as 'Intercompany'. The Intercompany AP invoice created is shown below. Navigation: Invoices Inquiry Invoices

Possible Errors while making Intercompany Transactions: 1. Please correct the revenue account assignment 2. INCIAP - Create Intercompany AP Invoices Terminated By Signal 11 Error 3. Can not retrieve payment term from bill-to site information 4. Returned warning from extra function Solution: Check Mandatory Setups Section.