Order Management

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Topic

    SK05
    Intercompany across LE and BU
    Topic posted June 5, 2019 by SK05, tagged Order Management, SCM, Supply Chain Financial Orchestration 
    69 Views, 4 Comments
    Title:
    Intercompany across LE and BU
    Summary:
    Document and/or pointers for intercompany transfers across LE and BU
    Content:

    Experts,

    Looking for a document or pointer on Intercompany across LE and BU. All the IMT related documents that I came across are for material transfer within BU/LE. So there is no intercompany AR/AP generation. 

    Looking for detailed document on setup, transfer pricing and process to generate intercompany AR/AP invoice after shipment from one warehouse (belonging to one BU/LE) to another warehouse (belonging to another BU/LE)

    Thanks

     

    Comment

     

    • Deepak Padhy

      Have you Defined the SFO flow between the two PCBU (across two LEs) against which you are doing intercompany flow? This SFO flow where you attach transfer price rule defines the intercompany trx cost and the "document and accounting rule" you attach indicates whether intercompany AP/AR invoice will be generated or not.

       

      don't have the documentation handy for such intercompany trx, you may check my below post for global procurement scenario set up across two PCBU belongs to different LEs.

      https://cloudcustomerconnect.oracle.com/posts/d560db8f40

       

      Thanks

       

      • Sukalyan Ghatak

        I agree Deepak, for I/C IMT, we need to configure Supply Chain Financial Orchestration. There are very limited documents available, but will be worth looking at the Costing Implementation guide. 

        Essentially, setup I/C Customer, I/C Supplier, Customer Supplier Association, FOS Rules, etc.

        Regards

        Sukalyan Ghatak

        • SK05

          Thanks Deepak and Sukalyan for your responses, 

          I am confused about the SFO being used for intercompany - the attached white paper has following paragraphs/statements that are not very clear to me. 

          "The Order Fulfillment business function manages sales orders and generates intercompany and customer invoices in Cloud
          Receivables. The Order Fulfillment business unit must be the same as the Profit Center and Billing and Revenue Management
          business units i.e. a single business unit assigned (at the very least) the Materials Management, Order Fulfilment and Billing and
          Revenue Management business functions" - page 12

          section 'Special Considerations: Order Fulfilment Integration with Financials' on pages 15, 16, 17 & 18 - it seems that intercompany can be done without SFO as well

          especially scenario 1 has a statement "In this scenario Supply Chain Financial Orchestration is not implemented to manage intercompany inventory flows. Since there is no intercompany, many Order Fulfilment business units can feed a single Billing and Revenue
          Management business unit." - the first statement imply that intercompany can be achieved without SFO; but immediately the second statement starts with "Since there is no intercompany....". 

          Also the second statement contradicts with the fact below - many OM BU to one AR BU vs one OM BU to one AR BU.

          "Fact: if the Order Management is implemented, the Order Fulfillment and Billing and Revenue Management business
          units must be the same." - page 26

          Awaiting for your responses.

          Thanks a lot.

           

           

    • Iulia Rusu

      Hi All,

      I am finding both Deepak Padhy - SFO_Global procurement .pdfand SK05 - Cloud_ERP_Enterprise_Structures_v1.3.pdf posted pdfs really useful, but I/we would like to add some integration points to the flow we am trying to put in place with colleagues from Oracle Partner:

      •        1st the PO between our entities (customer and enterprise if we are considering the drop shipment) needs to come via a Web Service, from an external system and the supplier needs to send the shipment directly to the customer. We’ll have a virtual warehouse/inventory within the enterprise, not a real one.

      – here I’ve thought of integrating the drop shipment order fulfillment integration in Procurement, please see Procurement Role in Drop Ship, https://docs.oracle.com/en/cloud/saas/procurement/18b/oaprc/manage-purchase-orders.html#OAPRC2456976

      •        2nd I know that the drop ship can be managed by the Supply Chain Financial Orchestration (SFO) application, as per the Cloud_ERP_Enterprise_Structures_v1.3, pag. 21 for e.g. – but in here, I/we should establish the SFO flow between our customer and our enterprise? As we would like to have the Intercompany Invoice between the two.

      I would really appreciate your view on this as I did not have the chance to test a flow of this type. 

      Thank you very much,

      Iulia