End User View of Process:

 

1. Customer in LA request product to Company in LA
2. LA creates STO 

Supplier Vendor:         NL Vendor

Supplier Plant:             Plant situated in US and belongs to NL

Product:                      Material master extend to NL plant

Receiving Plant:          Plant belongs to LA

Receiving Company Code: LA         

3. US Creates a SAP Delivery document against the above STO.
4. US Creates                  Inter company Invoice.

Customer:                    NL - Inter company customer

5. NL Invoices LA. (Enhancements)

Customer: LA-Intercompany Customer

Financial Document

6. LA Invoice Receipt from NL (Enhancements)

 

The relationship between these company codes established through FI, SD and MM configuration. Trading partner relationships maintained in inter company customer and vendor master data. Apart from all these, the enhancement developed to facilitate to create FI invoice and IR to fulfill and complete the transaction in the right hand side of the triangle (ref. the triangulation picture above).

 

Advantage of this enhancement is to automate the accounting entries required to post all the three company codes simultaneously, which will eliminate the reconciliation issues.

Since this practice takes place consistently and systematically, there will not be any SOX compliance issues. Whereas the manual adjustment will leads to SOX compliance issues. Most of the manufacturing companies’ expertly pharmaceutical industries in US are handling this situation by manual entry.

 

There will be huge tax saving by adopting the bonded warehouse methodology. 

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