Intercompany Inventory Transfer

[Greg Hoey]

We are bringing on a new company setup in JDE E1 for a segment of our business. We already have multiple companies setup running distribution and financials. This new JDE system company is not a separate legal entity. We are separating in JDE because of separate balance sheet and foreign currency requirements.

Question: We would like to manage and maintain inventory in our primary company and then do some type of intercompany transfer order at the time of order fulfillment to transfer inventory from company A (existing) to company B (new) so that company B can fulfill an order to the customer. The goal of doing so is to leave purchasing and inventory management centralized in company A. We would like to do this using the most automated method possible. Does anyone have experience/recommendations on the SK/OK/SI order types for this application? We do branch to branch transfers all of the time within the same company using ST/OT but have never crossed companies before so wanted to reach out. Any feedback is greatly appreciated.

 

[UrbanSpaceman]

You could set up the SI document type and have it processed as an intercompany order; the SK/OK combination is created by R4210IC which is typically called from ship confirm (P4205).

If you do not want to set up another doc. type for customer service to memorize and use, you can set up your usual sales order doc. type (SO) to be intercompany.

Keep in mind that this process would lead to the assumption that Company B is a sales-only entity and Company A makes and ships the products that Company B sells.

Basically: Company B enters a sales order and either types in or uses a preference to direct the supply branch to be a branch in Company A's realm (this is the branch that sees the demand and ships the product). Company A gets/makes the product and ships it to Company B's customer. During their ship confirm, R4210IC is called to create an SK (so Company A can bill Company B) and an OK (so Company B can voucher and pay Company A). The sales order is invoiced then run through a version of Sales Update (R42800) that processes the sales order, the SK, and vouchers the OK.

You will have processing options to work with in several programs. The standard JDE documentation (Sale Order Management) has a decent description of the details I glossed over. As a shameless plug, the JDEtips manual has a good walkthrough of this process (I have done and am doing work with JDEtips).

One thing to watch for: If your version of R4210IC is not working, the base versions of that UBE may be corrupt--just click "Add" to create your version instead of "Copy".

I hope this helps.

 

[smcdowell]

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Content-Type: text/plain; charset=ISO-8859-1

Hi Greg,

We set up intercompany about three years ago. It worked so well that we
were asked to set it up for three other companies as well. The
implementation definitely saved us from hiring more people.

Sent from Sherry's iPhone



We are bringing on a new company setup in JDE E1 for a segment of our
business. We already have multiple companies setup running distribution and
financials. This new JDE system company is not a separate legal entity. We
are separating in JDE because of separate balance sheet and foreign
currency requirements.

Question: We would like to manage and maintain inventory in our primary
company and then do some type of intercompany transfer order at the time of
order fulfillment to transfer inventory from company A (existing) to
company B (new) so that company B can fulfill an order to the customer. The
goal of doing so is to leave purchasing and inventory management
centralized in company A. We would like to do this using the most automated
method possible. Does anyone have experience/recommendations on the
SK/OK/SI order types for this application? We do branch to branch transfers
all of the time within the same company using ST/OT but have never crossed
companies before so wanted to reach out. Any feedback is greatly
appreciated.