Example of Intracompany Organization Configuration
The following example explains Intracompany Invoices.
In this example, Vision Corporation has one legal entity, Vision Operations Legal Entity which is associated with multiple intercompany organizations within the corporate structure. In the following configuration, the Vision Operations intercompany organization provides goods to Vision Administration intercompany organization and in other circumstances Vision Administration provides services to Vision Operations. The business has a requirement for each of these intercompany organizations to be able to invoice the other as well as record a payables invoice received from the other intercompany organization.
Intercompany Organizations Setup
The following figure illustrates the Intercompany Organizations Setup.
The following figure illustrates the Customer And Supplier assignments.
The following table describes the Intracompany Organization as a Provider:
Type |
Intercompany Organization |
Legal Entity |
Receivables Business Unit |
Payables Business Unit |
Comments |
---|---|---|---|---|---|
Provider |
Vision Operations |
Vision Operations Legal Entity |
Operations AR |
Operations AP |
AR invoice is created in Operations AR business unit which is the receivables business unit of the Provider. Customer is the one assigned to Vision Operations Legal Entity. |
Receiver |
Vision Administration |
Vision Operations Legal Entity |
Operations AR |
Administration AP |
AP Invoice is created in Administration AP business unit which is the payables business unit of the Receiver. Supplier is the one also assigned to Vision Operations Legal Entity |
The following table describes the required Customer Supplier Assignments Setup.
Type |
Legal Entity |
Customer Account |
Customer Site |
Supplier |
Supplier Site |
---|---|---|---|---|---|
Provider |
Vision Operations Legal Entity |
Supplier 123 |
Supplier 123 must have a site with Primary Pay site purpose enabled in Administration AP business unit |
||
Receiver |
Vision Operations Legal Entity |
Customer Account 456 |
Customer Account 456 must have a Bill To site in Operations AR business unit. |
The following table describes the Invoices created.
Type |
Intercompany Organization |
Legal Entity |
Invoice |
---|---|---|---|
Provider |
Vision Operations |
Vision Operations Legal Entity |
AR Invoice 101 raised for Customer Account 456 in Operations AR business unit |
Receiver |
Vision Administration |
Vision Operations Legal Entity |
AP Invoice 101 recorded for Supplier 123 in Administration AP business unit |