Intercompany Sales & Purchase

16 Mar 2015

Creating value is
Process Snapshot

Process Flow
 Process Snapshot
 Intercompany Purchase Process wherein all Purchases by
Origin are routed thru Singapore.

 Quick Overview of Process

 Origin raises requirements on Singapore based on
local demand
 Singapore negotiates with third party and raises PO
on third party vendor.
 Third party vendor supplies goods directly to origin
 Singapore accounts for purchase invoice from third
party vendor and pays the same
 Singapore raises sales invoice on origin
 Origin accounts for purchase Invoice from Singapore
and pays the same.
 Origin Entry
Document Flow Singapore Entry

Sales Contract SC will be raised by Singapore to Origin

SAP (Manual) SC will contain delivery schedules and origin transfer price

PO is raised by the Origin on Singapore based on Sales Contract in step 01

Purchase Order above.
Origin (Automatic) PO price should be as near to intercompany transfer price as possible (last
PO price).

Sales Order
SO will be raised by Singapore on Origin by copying the SC.
SAP (Automatic)

Third Party Pur. Req Third Party Purchase requisition will be created to the third party vendor
SAP (Automatic) (based on source list) with delivery address as origin.
 Origin Entry
Singapore Entry

Third Party Purchase Order will be created converting the Pur. Reqs .
Pricing details will be copied from Purchase Info record. Vendor will
Third Party Pur. Ord be copied from source list.
SAP (Manual) PO will be blocked when created. Review / change / create of origins,
price details , third party vendor , unblock of PO to be done at
Singapore.

Once the Vendor ships the goods, then a statistical GR should be

Statistical GR
completed in the system which will also create a notification to
Singapore (Manual) Origin

Purchase Invoice The Purchase Invoice should be booked by Singapore when the
Singapore (Manual) vendor issues the invoice

Sales Invoice The Sales invoice to Origin is created with the details of SO once the
SAP (Automatic) Purchase invoice is booked on vendor
 Origin Entry
Document Flow Singapore Entry

Purchase Invoice Purchase Invoice for Material Cost is created with reference to Sales
SAP (Automatic) Invoice of Singapore

Goods Receipt
Once the Actual Goods are received, the GR is posted in the system
Origin (Manual)

GR IR Clearing Any Pur. Price variance between PO & Pur. Invoice due to Qty
Origin (Automatic) difference (subject to tolerance) will be loaded to stock

Key is to automate intercompany reconciliation. Steps 9, 10 and 11 are priority.

 Next Steps

 Decide on sample data for demo

 Prepare a demo for 26 Mar or 27 Mar 2015

 Queries

 Event Management

 Business Process Owner (Shekhar Nautiyal)

 Standard process flow across products & origins