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Intercompany Invoice

We are implementing Intercompany solution for one of our joint venture. The process is to create sales order in selling operating unit say US (where as shipping operating unit will be different e.g. Singapore), create inventory transaction in shipping operating unit, running common Create AP and AR invoice programs. Transfer Price List is being used to calculate item cost and this costs is Mark Up by 10%. Same cost appears in AR invoice program. An expense import program runs to bring this item in AP and book an invoice.

Problem

In AP invoice progrem application shows Transfer Price Cost where as vendor is interested to see standard item costs. I am trying to figure out why Oracle doesn't book variance in AP. For example if item costs appears in AR based on Transfer Price List is $120 and standard item costs is $100. I think in AP this costs should be booked as

Dr :
Supplier $100
Variance $20

Cr:
Payables $120

I have tried to work around CST: Transfer Pricing Option profile to make sure items book at standard cost in AP. It doesn't work.

Any solution for this issue.

Please post your comments that might help us.

Thanks
Rajan

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Replies to This Discussion

Permalink Reply by Sanjeev Kanherkar on March 28, 2008 at 10:59am: Rajan,

Intercompany AR / AP is a standard set up in Oracle. Please le tme know if you need the document and I will gladly send it across. I have implemented that in coupe of large clients.; ▶ Reply to This

Permalink Reply by Rajan Rai on March 28, 2008 at 11:02am: Hi Sanjeev,

Sure. That might be helpful.

Cheers
Rajan; ▶ Reply to This

Permalink Reply by Sanjeev Kanherkar on March 28, 2008 at 11:23am: Rajan,

Please email me at sanjeevsk on hotmail so I can send this to you.

Thnx,

Sanjeev; ▶ Reply to This