Intercompany Invoices in Financial Orchestration
If you use the Intercompany invoice option on the Manage Documentation and Accounting Rules page to include intercompany invoices, then Financial Orchestration creates the following intercompany invoices during the transaction:
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Accounts payable invoice. A transaction that records the payable accounting when one business unit buys goods or services from another business unit.
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Accounts receivable invoice. A transaction that records the receivable accounting for the shipping business unit in an intercompany flow. It records journal entries in accounts receivables for the seller, it records revenue, and it records tax and freight charges. It adds journal entries to the inventory asset account and the cost of goods sold account for the shipping warehouse.
If you specify to not include intercompany invoices, then Financial Orchestration does not create any intercompany invoices during the transaction. An intercompany invoice is not required. For example, an intracompany trade that occurs between business units that belong to the same legal entity might not require an intercompany invoice. In this situation, a trade distribution in cost accounting handles the accounting for the receivables and payable balances.
For all transactions except nonshippable sales, generation of intercompany invoices is optional. This option can be configured in the documentation and accounting rules.
This table summarizes the role requirements and parameter information to run the scheduled processes that generate intercompany invoices for financial orchestration flows.
| Invoice | Scheduled Process | Parameter to Set |
|---|---|---|
| Accounts Receivable | Import Autoinvoice | Set the Transaction Source parameter to ORA_Supply Chain Financial Orchestration. |
| Accounts Payable | Import Payables Invoices | Set the Source parameter to Supply Chain Financial Flow Orchestration. |