Intercompany Sales and Billing Transactions Overview

The Automated Intercompany Management feature lets you manage intercompany sales and billing transactions. You can create, manage, and eliminate intercompany transactions between the subsidiaries in your organization. This feature reduces the manual work associated with tracking intercompany transactions and calculating elimination amounts.

You can generate an intercompany sales order from an existing intercompany purchase order, which pairs the transactions and sets the Intercompany Status to Linked. The Paired Transaction field provides a link to the paired transaction. When the orders are billed or invoiced, the intercompany amounts are eliminated during the period close process.

With the intercompany transaction workflow you can:

Create intercompany purchase orders
Detect the need for corresponding intercompany sales orders by subsidiary
Generate intercompany sales orders from intercompany purchase orders
Manually create matching intercompany sales orders, when needed
Reject intercompany purchase orders for a subsidiary, if needed

You can perform these tasks, except creating purchase orders, from the Manage Intercompany Sales Order page. See Manage Intercompany Orders.

For information about creating intercompany purchase orders per subsidiary, see Entering a Purchase Order.

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