Intercompany Order Processing - Midwest User · PDF fileBilling for each Intercompany...
Transcript of Intercompany Order Processing - Midwest User · PDF fileBilling for each Intercompany...
Intercompany Order Processing
Introductions
Brian Clark Joined Logan Consulting in 1997 Equity Partner in the Firm QAD implementation experience since 1997 Manufacturing and Distribution Focus
Why Interco?
International Transactions require an arms-length transaction.
Allows variability between sites for item numbers.
Some intercompany transactions are revenue generating transaction – funds change hands.
Intercompany vs. DRP
Release management similar to customer/supplier process.
Control the pricing/costing element more precisely.
Scales to multiple domains/databases more easily than DRP.
Interco vs. EMT
BuySite
Customer
SellSite
Customer
Customer
Interco EMT
Example
Buying SiteSite: US02
Supplier: IC5000
Selling SiteSite: US01
Customer: IC1000
FG0074
I0042I0007I0002I0007I0002
• Purchased Parts• Schedule Based
• Manufactured Parts• Sold to many customers
COMP3COMP2COMP1
Interco Setup
Selling Site
Buying Site
Create Intercompany
Supplier Records
Create Supplier Intercompany
Price List
Supplier Schedules
created with ERS
activated.
Create Intercompany
Customer Records
Create Customer
Intercompany Price List
Customer Schedules created.
Enable Self-Billing for eachIntercompany
customer.
Interco Setup
Selling Site
Buying Site
Create Intercompany
Supplier Records
Create Intercompany
Customer Records
Enable Self-Billing for eachIntercompany
customer.
- Credit Terms considerations.
- Business Relation/Address conventions.
- Supplier/Customer Type or simplified screens.
- Automation not likely required.
Customer Data
Supplier Data
Interco Setup
Selling Site
Buying Site
Create Supplier Intercompany
Price List
Create Customer
Intercompany Price List
- Determine intercompany pricing policy.
- Synchronization is critical, consider automation.
- Discrete orders require different support.
Price Lists– Scheduled Orders
Interco Setup
Selling Site
Buying Site
Supplier Schedules
created with ERS
activated.
Customer Schedules created.
- Opportunities for 862 & 830 data exchange.
- Monitor using appropriate browses/custom reports.
- Again, synchronization is critical.
- Automation more complicated, but possible.
- Netting logic and CUM adjusts possible.
- Item Replacement possible.
Customer/Supplier Schedule
Processing Orders
Process 830 / 862 against Customer Scheduled
Order (EDI).
Run Required Ship Schedule
Update to generate RSS.
Pick/Ship process
results in shipper.
Confirm Shipper and capture Self-
Billing information.
Material leaves selling
site.
Shipment ASN Export
(35.4.1)
Self-Bill Created for matching invoice or
adjustment
EDI 830/862 transmitted to shipping
site.
EDI 856 transmitted to receiving
site.
EDI 820 imported generates Self-Bills
Run MRP to create
Planned Purchase
Orders
Update from MRP to 830/862 Releases.
Run Supplier Shipping Schedule
Export (35.4.8)
ASN imported into receiving site as a PO
Shipper.
Material arrives at
purchasing site.
Purchasing site processes PO Shipper Receipt.
Run ERS Processor to
generate supplier invoices
Supplier Payment Selection
Create
Supplier Payment Selection Confirm
Supplier Payment Selection Execute(Generates 820)
Self-Bill Confirm
Customer Invoice Paid. AR Cleared
EDI
Selling Site
Buying Site
Processing Orders
Process 830 / 862 against Customer Scheduled
Order (EDI).
Run Required Ship Schedule
Update to generate RSS.
EDI 830/862 transmitted to shipping
site.
Run MRP to create
Planned Purchase
Orders
Update from MRP to 830/862 Releases.
Run Supplier Shipping Schedule
Export (35.4.8)
EDI
Selling Site
Buying Site
- Planning and Shipping Schedules align.
- RSS allows merging per netting logic.
- Standard EDI process on both sides.
- Critical to keep orders in alignment.
- Similar process can be handled for discretes.
FG Forecast
FG Demand
MRP Detail
Update Schedules from MRP
PO_BUYER
Supplier Schedule Release
Customer Schedule Release
Processing Orders
Pick/Ship process
results in shipper.
Confirm Shipper and capture Self-
Billing information.
Material leaves selling
site.
Shipment ASN Export
(35.4.1)
EDI 856 transmitted to receiving
site.
ASN imported into receiving site as a PO
Shipper.
Material arrives at
purchasing site.
Purchasing site processes PO Shipper Receipt.
Run ERS Processor to
generate supplier invoices
EDI
Selling Site
Buying Site
- Pick/Ship process similar to normal orders.
- ASN Export triggers PO Shipper import.
- ERS creates payable records automatically.
- Consider ASN container/lot contents.
- Discrepancy resolution still an issue.
Shipper Workbench
Shipper Confirm
ASN/PO Shipper
PO Shipper Maintenance
PO Shipper Confirm
ERS Processor
six_ref Browse
Processing Payments
Self-Bill Created for matching invoice or
adjustment
EDI 820 imported generates Self-Bills
Supplier Payment Selection
Create
Supplier Payment Selection Confirm
Supplier Payment Selection Execute(Generates 820)
Self-Bill Confirm
Customer Invoice Paid. AR Cleared
EDI
Selling Site
Buying Site
- Timing of payment drives the workload.
- Selection Execute creates the electronic payment file (EE).
- Import of 820 creates the Self-Bill, does not confirm it.
- Reconciliation still a month end event, but with more helpful information.
- Likely need a browse for in-transit PO Shippers for reversing journal entry.
Supplier Dashboard
Supplier Payment Selection
Payment Confirm
Supplier Payment Execute
Supplier Dashboard
Customer Dashboard
Self-Bill Maintenance
Self-Bill Confirm
Customer Dashboard
QAD Modules
QAD Version
Release Management
Self-Billing/ ERS
Shippers vs. Standard Shipping
EE and SE differ from a banking transaction standpoint. Bank Driver approach (820) will be optimal for EE. SE will likely require some development to achieve 820 automation.
Release Management not required for this process, but offers ideal forecast and shipment requirement capability. Spot orders can be handled by discrete orders.
Released in QAD SE version 9.0. Could require some patching in earlier versions of QAD. Good way to begin using Evaluated Receipts Settlement for the first time.
Required for ASN’s and PO Shipper import. Difficult to implement shipment/payment benefits without the use of Shippers.
eCommerceWithout eCommerce, the interfacing would need to be custom extracts/uploads.
Automation
Process 830 / 862 against Customer Scheduled
Order (EDI).
Run Required Ship Schedule
Update to generate RSS.
Pick/Ship process
results in shipper.
Confirm Shipper and capture Self-
Billing information.
Material leaves selling
site.
Shipment ASN Export
(35.4.1)
Self-Bill Created for matching invoice or
adjustment
EDI 830/862 transmitted to shipping
site.
EDI 856 transmitted to receiving
site.
EDI 820 imported generates Self-Bills
Run MRP to create
Planned Purchase
Orders
Update from MRP to 830/862 Releases.
Run Supplier Shipping Schedule
Export (35.4.8)
ASN imported into receiving site as a PO
Shipper.
Material arrives at
purchasing site.
Purchasing site processes PO Shipper Receipt.
Run ERS Processor to
generate supplier invoices
Supplier Payment Selection
Create
Supplier Payment Selection Confirm
Supplier Payment Selection Execute(Generates 820)
Self-Bill Confirm
Customer Invoice Paid. AR Cleared
EDI
Selling Site
Buying Site
Thank You!