<Insert Picture Here>

Intercompany – Basics

Presenters’ Names Mike McMillian, Rod Emenaker, Toni DavidsonPresenters’ Titles “Hard Working Engineers”

2

INTERCOMPANY

INVOICING

US - V1 Internal

Sales Order

Singapore - D1 Maker /

Shipper

3

<Insert Picture Here>

Program Agenda Example

• Intercompany – Basic Setups• Profile Options• Basic Flow• Sales Order• Inventory Transactions• Accounts Receivables• Accounts Payables• Discussion / Q & A

4

PROFILE OPTIONS (as used for THIS demo)

• INV:Advanced Pricing for Intercompany Invoice = No• INV:Intercompany Invoice for Internal Orders = Yes• INV: Intercompany Currency Conversion Corporate • INV: ALWAYS SUFFIX INTER-COMPANY AP INVOICE NUMBER = Yes• INV: Use Model % Options for Configuration Pricing = Yes• TAX: Inventory Item for Freight (R11i)• Tax: Inventory Item for Freight-1-1-1-1-1 Freight Charge (R12)• TAX: Invoice Freight as Revenue (R11i)• Tax: Invoice Freight as Revenue-1-1-1-1-1 = No (R12)• TAX: Allow Override of Tax Code = Yes (Not available in R12)• QP: Item Validation Organization = Vision Operations• QP: Pricing Transaction Entity =Order Fulfillment• QP: Source System Code = Oracle Pricing• CST: Transfer Pricing Option = No

5

BASIC FLOW

START

CREATE

SALES ORDER

VERIFY

COSTED

TRANSACTIONSWION

PICK AND SHIP

RUN INCIAR

RUN INCIAP

END

6

Sales Order Setups

• The Item must have the highest Precedence on the Price List that defaults to the Sales Order. The defaulting Price List is based on the Order Type. We set our Item to 90, to make sure it was picked up from the this Price List• Sales Order type for our instance = Mixed• Internal Sales Order• Product Ships from another Operating Unit (D1)

And now for a quick demo

7

Accounts ReceivableINCIAR - Create Intercompany AR Invoices

• Intercompany can only be initiated AFTER the Inventory Transactions are Costed• INCIAR populates data in

RA_INTERFACE_LINES_ALL table.• Run Autoinvoice to completes the Receivables

process

And now for a quick demo

8

Accounts Payable

• The INCIAP report is run after successful import of the INCIAR data into Accounts Receivable• The INCIAP report looks at the data

RA_CUSTOMER_TRX_LINES_ALL table for its input • Once the Shipping transaction is complete the

intercompany invoicing process can be completed• This causes some customer concern because the AP

Invoice is created before the PO Receipt

And now for a quick demo

9

References and Useful Information

• 784679.1 Create an Intercompany invoice AR and AP overviews Stepping through the process:

1.  Create an internal sales order : SalesOrder2.  Import the records into Accounts Receivable: Import into AR3.  Running INCIAP and  importing or Accounts Payable: INCIAP and AP

Where do the Accounts originate From:1. The Accounts used in Inventory Distributions2. The Accounts used in Accounts Receivable Distributions3. The Accounts used in Accounts Payable Distributions

The debugging  process(s) 1.Finding the Item in the AP price lists from the INCIAR  log file: Adv Pricing Info

Helpful Hint:These things cause problem in completing  the process. Useful shipping information : Shipping Hints

• 458731.1 - Intercompany Invoices SR Template

Information to gather for a Intercompany SR issue

• Intercompany brown bag handout.pdf and Demo’s

10

<Insert Picture Here>

Discussion

Questions

Answers

11

Thank You