Transfer Material to Customers from a Third Party Warehouse

You can import goods from the overseas branch organization to your organization within Brazil for self use or to be delivered to your customer organization.

The companies based out of Brazil, say Supplies OG Brazil, can have a requirement to import goods from United States of America (or any other foreign country). In this business process, there can exist multiple legal entities and business units across countries involved in the financial flow, even though the physical flow of goods is directly from source location to destination location, there are requirements to handle price based and cost based transfers along with intercompany invoice generation. Hence, it's mandatory to have supply chain financial orchestration (SFO) flow to implement an import flow in Brazil. The SFO flow (trade agreements) is created based on the business requirement involving countries, companies, or business units.

The financial orchestration flow (agreements) is price based (primary) or cost based. A transfer order gets an estimated price from the SFO. Once the transfer order shipment is complete, the SFO trade events are generated in the source, intermediate, and destination business units. The intercompany invoices are generated in the respective business units. The intercompany invoices are generated in the respective business units based on the trade events. For the functioning of this workflow, price currency has to be in BRL for transfer order and intercompany invoice.

The goods that arrive at the Brazil ports are cleared by customs. These goods are the property of Supplies OG. In Brazil, for the goods to move from customs to the destination location, fiscal documents are required.

An import fiscal document is prepared by a broker and this document is captured and processed by Supplies OG. Based on the commercial invoice (I/C AR Invoice) generated in the intermediate node (say ORGPACT), the broker creates an import fiscal document for the shipment. The commercial invoice is always in the Brazilian currency based on the financial orchestration flow (agreement) setup.

While processing the import fiscal document, there is a requirement to validate the price on the fiscal document to ensure that the price is as expected. As SFO is orchestrating transfer pricing and is the source of truth for transfer price, the fiscal document price is validated against the SFO transfer price at the destination organization.

During the price validation of the import fiscal document, for every schedule of fiscal document line, SFO provides the transfer price used in the destination node in Brazilian currency for the given shipment number. This information is stored as source document price in the Lines infotile > Schedules. Once the price is successfully validated, the fiscal document is further processed. A fiscal document is put on hold if the price is out of tolerance or if there is no price returned. After necessary corrections, from SFO, you can source the transfer price used in the destination node in the Brazilian currency for the same shipment number.

In the import goods work flow, the FOB shipment flow is recommended. However; if a FOB receipt flow is done, then SFO doesn't return any transfer price and the fiscal document is kept on price tolerance hold. You must manually release this hold and validate the fiscal document. On successful validation, a transfer order receipt is created.

The transfer work flow without invoicing and without SFO agreement isn't supported for Import fiscal document. This also means that the transfer is processed at cost only in the shipping organization and receiving organization without any accounting in the intermediary nodes.

For shipments that don't have an SFO agreement, transfer price isn't available and the fiscal document is placed on a manual release price tolerance hold and the validation of the fiscal document is completed after creation of a transfer order receipt.