Intercompany settlements - ST/OT or SK/OK/SI???

[SSG]

On reading the KG sheet on Intercompany, I'm not sure if we should use this for our process. My understanding of intercompany in JDE is: to fill an order from a branch other than the revenue/header branch, invoice the customer and generate an intercompany sales order and purchase order. We are not wanting to supply from another branch, we would just like to sell from our own branches to other companies with our group. Should we use ST/OT or Intercompany?? How are settlements done?

 

[Mgroeneveld]

Hi,

Maybe this helps to make things clear:

In a previous project, products could be shipped from the selling branch plant but also from a central DC. In the last situation, the products where shipped directly from the central DC but revenue was logged on behalf of the selling BP. In this situation you can use SK/OK in order to solve the shipment from the central DC. So, the normal shipment procedure occurs with on the background automatically an SK/OK generated.

The ST-OT is only used when e.g. the central DC supplies a local selling point/branch plant. So basically an inventory transfer but then WITH proper documents, shipment procedures, invoice handling, etc.

 

[jfw]

If you are simply selling from one Company to another use the ST/OT. If you are shipping directly to a customer with two of your companies involved use SK/OK/SI. It sounds like you just want an ST/OT. One point to look out for, Kits and Configured item generally do not behave with either process.

 

[Sef]

Hi Dawn

It sounds like an ST/OT type setup will suffice. If you have transfers with as well as transfers without settlement, you could create another set of transactions (eg SX/OX) and not bypass AR in R42800. Typically at order entry you will need to define the cost or base price mark up to be '1' (cost plus markup) or '2' (Base price). If you have a header branch, a delivery branch as well as a receiving branch you will need to set the processing options for Interbranch.

Good luck,

 

[SSG]

Thank you all for your input we have decided to use the standard ST/OT that we currently use for consignment transfers and turn on subledger flag at sales update, set it to pick up the sold to AB number, and keep AR off. This way we can net the accounts by running reports.