Enhancements to facilitate inter company

transaction between three company codes

 

Introduction:

 

Most of the US based manufacturing companies are delivering goods directly from US company to their subsidiary companies situated in Latin America but the billing document needs to be routed through the bonded warehouse owned by NL subsidiary company from tax and accounting prospective.

 

Every time Intercompany invoice IV is created in US for NL with direct shipment to LA, Invoice needs to be created in NL for LA and IR (Invoice Receipt) has to be completed in LA to complete the transaction among all the three companies. This invoice should be printed together with posting of FI journal entries and include all the data, required by custom authorities.

 

Standard SAP allows inter company transactions between two company codes. The above scenario can be achieved by enhancements of the standard SAP program.

 

 

Solution:

 

All transactions, which reflect a purchase of these goods by NL from US and a sale by NL to LA, are carried by enhancement as journal entries in NL General Ledger.

ü      An invoice is generated from a delivery note when goods are shipped.

ü      The goods physically move from US to a Latin-America region affiliate but the invoice should be raised from NL to the destination country affiliate.

ü      There is no logistic transaction at NL, but from accounting and tax prospective NL is still reseller of these FG to a subsidiary hence financial transactions need to be booked in NL, this part of the document created by the enhancement.

 

ü      Company Code in USA - - US

ü      Company Code in Latin America (Mexico, Colombia, etc.,) -- LA

ü      Company Code in Netherlands -- NL

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