Creating Intercompany Orders During Shipment Confirmation

The difference between a direct ship order and an intercompany order is that the supplier is the supplying warehouse, the sold to address is the selling branch/plant, and the ship to address is the customer number. Additionally, the intercompany order is not created until shipment confirmation.

When you confirm an interbranch sales order, the system verifies the processing options in the Ship Confirm Batch Application program (R42500) to determine whether the system creates an intercompany order and the version. The amount in the cost field of the interbranch order is passed in as the price of the intercompany order. The system creates an intercompany order from the version of the Create Intercompany Sales Orders program (R4210IC).

When you run the R4210IC program, the system can apply commissions on the intercompany order (SK) based on the customer.

Note: The calculation of commission information only occurs with standard commissions set up on the Customer Master. The system does not apply commissions that are created through Advanced Preferences

If you use taxed prices and run the Create Intercompany Orders program, the system populates the value of the Use Taxed Price field in the Sales Order Header Tax table (F4201TX), and populates taxed prices and tax amounts to the Sales Order Detail Tax table (F4211TX).

If the Use Taxed Price check box is selected on the original interbranch sales order, then the Use Taxed Price check box is selected on the new intercompany sales order and the system adds records to the F4211TX table for the new sales order. If the Use Taxed Price check box is not selected on the original interbranch sales order, then the system does not add records to the F4211TX table.

After the intercompany order is created, any changes to the interbranch or intercompany order in Sales Order Entry triggers a warning message that indicates that you must make changes to the corresponding order to maintain integrity.