Integration of Advanced Pricing and Intercompany Invoicing

Case 1

INV: Intercompany Invoice for Internal Sales Orders is set to 'Yes' INV: Advanced pricing for Intercompany Invoice is set to 'Yes' and Advanced Pricing is installed

Intercompany Invoicing will look for an external APIa customer/user programmable hookto return the price for the item included on the Internal sales order. If the API does not return a value then pricing logic gets the price from the price list. If it is able to find the price for that item in one of the price lists then Intercompany Invoicing uses that value. If it is unable to find the correct price for that item then the Intercompany Invoicing process logs an error message.

Case 2

INV: Intercompany Invoice for Internal Sales Orders is set to "Yes" INV: Advanced Pricing for Intercompany Invoice is set to "No"

The pricing logic gets the price for the item from the static transfer price list that has been specified for that customer (Internal) in the Customer setup. If there is no price defined then an error message is logged. Advanced Pricing setup allows you to define different rules based on which price list should be used to get the invoice price for an item. New Request Type, Global Structure, Context and a new set of Qualifier and Pricing Attributes are seeded.

Implementation Considerations
If you want to use Advanced Pricing feature for Intercompany Invoicing, you have to set the following profiles at the user level with the following values: QP: Pricing Transaction Entity - Intercompany Transaction, QP: Source System Code - Oracle Inventory. This will allow you to see and use the Intercompany context, in addition to the Order Fulfillment context to define attribute-mapping rules. Two new mappings/relationships between request type and source system codes have been seeded. One is between request type IC and source system INV, and the second is between request type IC and source system QP. The request type IC and Source system INV are new set of seed data. The above two mappings allow you to have price lists that are common to both inter-company invoicing and sales order invoicing. For trade orders, price lists are created with source system code of "QP," and the mapping between OM (Oracle order management system) and QP (Advanced pricing) is used to pick price lists for trade order invoices. Similarly, intercompany users may decide to create separate price lists for intercompany invoicing,

that is with source system code of INV. This can be achieved by setting the profile "QP: Source system code" to INV. In order to use only these prices lists for inter-company invoicing, the mapping between IC and QP should be disabled, otherwise if pricing engine finds a better fit for the price list defined under QP, it will return use that price list. A new global structure has been defined that can be used to define mapping rules for qualifier attributes and pricing attributes for price lists. This global structure is based on all the information that is captured and available in a sales order or an internal sales order record. All seeded defaulting rules are defined by using this global structure. Users can use the data in this global structure to define more mapping rules.

Intercompany Invoicing
You can view intercompany invoices for internal sales orders on the sales orders window (Actions > View Additional Line/Order Info > Invoices / Credit Memos) There is no provision for internal sales order to be invoiced using Invoice Interface Line workflow activity. Order Management extracts data from the Accounts Payables and Accounts Receivables tables to display the data in the Invoices / Credit Memo tab for internal sales orders. If the value of the profile option OM: View Intercompany AR invoice is set to Yes, you will be able to view Intercompany invoices for internal sales orders. The other options are No or Null.

Process Steps

Requesting (Receiving) Operating UnitPurchasing: Create Internal Requisition with Source organization and Destination organization. Approve the internal requisition . Note: The destination inventory organization must be a part of a separate operating unit such as the Shipping Operating Unit in order to trigger Intercompany transactions.

Requesting (Receiving) Operating UnitPurchasing: Launch the Create Internal Sales Order program Shipping Operating UnitOrder Management: Import the Internal Sales Order. Pick and Ship confirm the Internal Order Requesting (Receiving) Operating UnitPurchasing: Perform a Receiving transaction. Source OrganizationInventory: Run 'Create Intercompany AR Invoice' for the Shipping operating unit Shipping Operating UnitReceivables: Run ' AutoInovice Master' program for the internal order with Invoice Source as "Intercompany." This generates the accounts receivable invoice for the Shipping Operating Unit.

Destination OrganizationInventory: Run "Create Intercompany AP Invoice" for the Requesting (Receiving) Operating Unit Requesting (Receiving) Operating UnitPayables: Run the Expense Import program with source "Intercompany."

Intercompany Invoicing Incoming Cost

When using Intercompany Invoicing for Internal Sales Orders you can allow the Incoming cost for the Destination organization to be based purely on the Transfer price and not the item cost from the Source organization. In order to use this feature you must:

Setup Intercompany Invoicing for Internal Sales Orders. See the Oracle Advanced Pricing User's Guide and the Oracle Inventory User's Guide. Set the profile option CST: Transfer Pricing Option to "Yes - Price As Incoming Cost" o If it is set to "Yes - Price as Incoming cost" or "Yes - Price Not As Incominng Cost," new accounting entries are generated in Costing. When set to 'Yes - Price Not As Incoming Cost' - incoming cost to the Destination organization is the Source organization inventory cost. o If it is set to "No" then existing costing entries occur.

Both Inventory Cost of Goods Sold Account and the profile OM: Generate Cost of Goods Sold Account workflow processes must be defined.