PMCLTD

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PMCLTD

• Intercompany Invoicing
• NCOAUG
• August, 2003

Kimberlee DeLong Parker Management Consultants,
Ltd kdelong_at_pmcltd.com www.pmcltd.com
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Intercompany Invoicing Overview
Intercompany Invoicing is used when the Shipping
Operating Unit is different from the Selling
Operating Unit within the same company. An
example would be a United Kingdom Operating Unit
(the Selling OU) creates a Sales Order to their
trade customer and the product is shipped from a
Chicago Inventory (the Shipping OU). A
Receivables invoice to the Selling Operating
Units trade customer would then be created in
the United Kingdoms Operating Unit. Because
the product was shipped out of a Chicago
Inventory (the Shipping OU) on behalf of the
United Kingdom (the Selling OU), an Intercompany
Receivables Invoice needs to be created in the
Chicago Operating Unit (the Shipping OU) to send
to the United Kingdom Intercompany Customer
account to pay for the product shipped to their
trade customer. This Intercompany Receivables
Invoice is created through the Intercompany
Invoicing process in Oracle Inventory, Create
Intercompany AR Invoices. An Intercompany
Payables Invoice then needs to be created in the
United Kingdom Operating Unit (the Selling OU) to
make payment to the Chicago Intercompany Supplier
account for the product shipped out of the
Chicago Inventory. This Intercompany Payables
Invoice is created through the Intercompany
Invoicing process in Oracle Inventory, Create
Intercompany AP Invoices.
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Intercompany Invoicing Overview of Basic Setups
For demonstration purposes, this Step by Step
Process will assume the Selling Operating Unit is
the United Kingdom and the Shipping Operating
Unit is the Chicago Inventory. Based on 11.5.4
Functionality.

• Oracle Inventory Setup
• The Shipping and Selling Organizations need to be
  setup as both Operating Units and Inventory
  Organizations.
• Navigation Inventory ResponsibilitygtSetupgtOrgani
  zationsgtOrganizations
• Items are enabled in both the Selling and the
  Shipping Inventory Organizations.
• Navigation Inventory ResponsibilitygtItemsgtMaster
  ItemsgtChoose an Inventory OrggtQuery Items to be
  used across Operating UnitsgtToolsgtOrganization
  Assignment
• Note Receivables, Payables, and Order
  Management Responsibilities need to be created
  for each specific Operating Unit. Then the
  System Profile Option, MO Operating Unit needs
  to be set for each corresponding Operating Unit
  at the Responsibility Level.
• Oracle Receivables Setup
• A Trade Customer Account in the Selling
  Operating Unit (United Kingdom) along with a
  valid Ship To and Bill To.
• Navigation UK Receivables ResponsibilitygtCustome
  rsgtStandard

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Basic Setups Continued

• Oracle Receivables Setup Continued
• An Intercompany Customer Account for the United
  Kingdom Site in the Shipping Operating Unit
  (Chicago) along with a valid Bill To.
• Navigation Chicago Receivables
  ResponsibilitygtCustomersgtStandard
• A Trade Invoice Transaction Type setup in the
  Selling Operating Unit (United Kingdom).
• Navigation UK Receivables ResponsibilitygtSetupgtT
  ransactionsgtTransaction Types
• An Intercompany Invoice Transaction Type setup in
  the Shipping Operating Unit (Chicago)
• Navigation Chicago Receivables
  ResponsibilitygtSetupgtTransactionsgtTransaction
  Types
• Oracle Payables Setup
• An Intercompany Supplier Account for the Chicago
  Inventory Site in the United Kingdom Selling
  Operating Unit.
• Navigation UK Payables ResponsibilitygtSuppliersgt
  Entry
• Oracle Inventory Setup
• Intercompany Relations setup linking the Selling
  OU and the Shipping OU along with the Defaults
  for the Intercompany Receivables and Intercompany
  Payables Invoicing.

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Basic Setups Continued

• Oracle Order Management Setup
• The Trade Invoice Transaction Type linked to the
  Order Transaction Type in the Selling Operating
  Unit (United Kingdom).
• Navigation UK Order Management Super
  UsergtSetupgtTransaction TypesgtDefine
• Oracle Pricing Setup
• A Trade Customer Price List setup with the
  selling price and the selling unit of measure in
  the Selling Operating Unit (United Kingdom).
• Navigation UK Order Management
  ResponsibilitygtPricinggtPrice ListsgtPrice List
  Setup
• An Intercompany Price List setup with the
  Intercompany selling price and the selling and
  shipping unit of measure. Then linked to the
  United Kingdom Intercompany Customer Account
  setup in the Chicago Shipping Operating Unit
• Navigation Chicago Order Management
  ResponsibilitygtPricinggtPrice ListsgtPrice List
  Setup

Both the Selling and Shipping UOM must be on the
Intercompany Price List or errors will occur when
Creating the Intercompany Receivables Invoice.
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For demonstration purposes, this Step by Step
Process will assume the Selling Operating Unit is
the United Kingdom and the Shipping Operating
Unit is the Chicago Inventory.
Step 1 Enter the Trade Customers Sales Order in
the Selling Operating Unit (United Kingdom) to
Ship from the Chicago Shipping Inventory. Navigati
on UK Order Management ResponsibilitygtOrders,
ReturnsgtSales Orders Step 2 Book the Trade
Customers Sales Order in the United Kingdom
Selling Operating Unit. Step 3 Once the product
is eligible for shipping, Pick Release the Sales
Order to ship from the Chicago Shipping Inventory
creating a Delivery to the Selling Operating
Units Trade Customer. Navigation Chicago Order
Management ResponsibilitygtShippinggtRelease Sales
Ordersgt Release Sales Orders
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Step 4 Ship Confirm the Delivery from the
Chicago Shipping Inventory. Navigation Chicago
Order Management ResponsibilitygtShippinggtTransacti
ons
The OM Interface process updates the Sales Order
lines with the Line Status of Shipped and the
Delivery Information, such as Delivery Number,
Ship Date, Lot, and Tracking Number.
At the time of Ship Confirm, the Interface Trip
Stop includes the processes, Order
Management Interface and Inventory Interface.
The Inventory Interface process creates the Cost
Of Goods Sold Accounting and the information to
update the Quantity on Hand. Another Inventory
process, the Material Transaction Manager, does
the actual update of the Quantity on Hand in the
Shipping Inventory.
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Step 5 The Workflow Background Process for OM
Order Lines, needs to be submitted to close the
Sales Order Lines and load the Invoicing
information into the United Kingdom Selling
Operating Units Receivables Interface
Table. Navigation UK Order Management
ResponsibilitygtReports, Requestsgt Run Requests
Step 6 In the United Kingdom Selling Operating
Unit, Submit the AutoInvoice process to create
the Trade Customers Receivables
Invoice. Navigation UK Receivables Manager
ResponsibilitygtInterfacesgt AutoInvoice
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Step 7 Run the Intercompany Invoicing process in
Oracle Inventory, Create Intercompany AR
Invoices specifying the Chicago Shipping
OU. Navigation Inventory ResponsibilitygtReportsgtI
ntercompany InvoicinggtSelect Create Intercompany
AR InvoicesgtSelect Shipping Operating Unit,
Chicago
The Create Intercompany AR Invoices process
loads the Invoicing Information into the Chicago
Operating Units Receivables Interface Table.
Step 8 In the Chicago Shipping Operating Unit,
Run AutoInvoice to create the Intercompany
Receivables Invoice with the Bill To to the
United Kingdoms Intercompany Customer
Account. Navigation Chicago Receivables
ResponsibilitygtInterfacegtAutoInvoice
The Intercompany Receivables Invoice will
reference the United Kingdom Selling Operating
Units Trade Customers Sales Order Number.
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Step 9 Run the Intercompany Invoicing process in
Oracle Inventory, Create Intercompany AP
Invoices Specifying the United Kingdom Selling
OU. Navigation Inventory ResponsibilitygtReportsgt
Intercompany InvoicinggtSelect Create
Intercompany AP InvoicesgtSelect Selling
Operating Unit, United Kingdom
The Create Intercompany AP Invoices process
loads the Invoicing information into the United
Kingdom Selling Operating Unit's Payables
Interface Table.
Step 10 In the United Kingdom Selling OU, Run
the Payables Invoice Import to create the
Intercompany Payables Invoice made payable to the
Chicago Intercompany Supplier Account. Navigation
UK Payables ResponsibilitygtOthergtRequestsgtRungtSe
lect Payables Invoice ImportgtSelect Source,
Intercompany
The Intercompany Payables Invoice Number in the
United Kingdom Selling OU will be the same as the
Intercompany Receivables Invoice Number in the
Chicago Shipping Operating Unit.
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PMCLTD

• Intercompany Invoicing Q A
• NCOAUG
• August, 2003

Kimberlee DeLong Parker Management Consultants,
Ltd kdelong_at_pmcltd.com www.pmcltd.com