Global Nonshippable Sales

Global Nonshippable sales are bill-only sales in which the products aren't physically shipped to the customers. For example, a company sells a software which can be downloaded from a website, without shipping a compact disc.

Nonshippable orders are considered as fulfilled when the sales order line is closed.

The supply chain financial orchestration process routes the orchestration flow of nonshippable products through one or more business units within the corporation. These business units can belong to the same legal entity or multiple legal entities.

For the Nonshippable sales business process, you must:

• Define the transfer pricing rules and documentation and accounting rules.

• While creating the documentation and accounting rules, on the Create Documentation and Accounting Rules page, deselect the Trade Distributions option, and enable Inter Company Invoices.

• While creating the financial orchestration flow, on the Create Financial Orchestration Flow page, in the Buy and Sell Terms tab, specify the charge account for the intercompany payables invoice.

  Note: You must specify the financial route. On the Create Financial Orchestration Flow page, in the financial routes region, in General Information, unlike the shipment business process, you don't see an option to specify the buying or selling trade organizations. This is because the buying and selling trade organizations aren't relevant for nonshippable sales. For global non-shippable sales, as products aren't shipped only intercompany invoices are generated and not cost accounting entries.