When entering a customer order line, you can choose to source the line in different ways. If you choose to source the order from an internal supply site, two different supply codes are available: Internal Purchase Transit or Internal Purchase Direct. This document only describes the financial postings that occur when goods or services are moved using either of these two supply codes.
It is important to distinguish between two sites that belong to the same financial company, and two sites that belong to different financial companies. In the latter case, an internal invoice is created by the supply site and sent to the demand site.
Note: For further information about postings and posting control, please read the document on About Business Control - IFS Supply Chain and Manufacturing.
Site A: Demand site, inventory value 50 per pcs
Site
B: Supply site, inventory value 10 per pcs
On Site B: When delivering the customer order in site B, the following transaction recorded in the Site B inventory records:
SHIPTRAN: Ship Customer Order Internal Transit (instead of OESHIP, which would happen with a delivery of an external customer order).
| Debit | Credit | ||
| M4 Inventory Transfer between Sites | 10 | M1 Inventory | 10 |
On Site A: At the same time the SHIPTRAN transaction is created, there is a INTORDTR transaction created that moves the value of the parts to transit on site A. If different inventory values are used on the different sites, there will also be revaluation postings added to the INTORDTR transaction.
INTORDTR: Move to internal order transit due to issue (including revaluation postings due to different inventory values used on the two sites).
| Debit | Credit | ||
| M3 Inventory Transfer | 50 | M4 Inventory Transfer between Sites | 50 |
| M4 | 40 | M156 Inv Value Increase - Order Transit | 40 |
On Site A: The following is recorded, when the arrival of the purchase order is registered in an arrival location.
ARRTRAN: Arrival inventory internal transit (instead of ARRIVAL, which would happen with an arrival of an external purchase order).
| Debit | Credit | ||
| M1 Inventory | 50 | M3 Inventory Transfer | 50 |
Then the parts are moved to a picking location:
INVM-ISS: Internal transfer - issue
| Debit | Credit | ||
| M3 Inventory Transfer | 50 | M1 Inventory | 50 |
INVM-IN: Internal transfer receipt
| Debit | Credit | ||
| M1 Inventory | 50 | M3 Inventory Transfer | 50 |
Since both sites are in the same financial company, Site B does not create and send an invoice to Site A once it has delivered the internal customer order.
Since the sites are not in the same financial company, Site B sends an invoice to Site A once it has delivered the internal customer order. This financial flow is very similar to a normal external flow.
Site A: Demand site, inventory value 50 per pcs
Site
B: Supply site, inventory value 10 per pcs, sales part price 50
On Site B: When delivering the customer order in site B, the following transaction is recorded in the Site B inventory records:
OESHIP: Ship customer order (same as with an external customer order)
| Debit | Credit | ||
| M24 Cost of Goods Sold, Sales | 10 | M1 Inventory | 10 |
The invoice is created and posted:
INVOICE-D: Invoicing on Non-taxable Sales
| Debit | Credit | ||
| IP2 | 50 | M30 Non-taxable Sales | 50 |
On Site A: The following is recorded, when the arrival of the purchase order is registered in an arrival location.
ARRIVAL: Receipt of purchase order (as an arrival of an external purchase order)
| Debit | Credit | ||
| M1 Inventory | 50 | M10 Receipt with Purchase Order | 50 |
Then the parts are moved to a picking location
INVM-ISS: Internal transfer - issue
| Debit | Credit | ||
| M3 Inventory Transfer | 50 | M1 Inventory | 50 |
INVM-IN: Internal transfer receipt
| Debit | Credit | ||
| M1 Inventory | 50 | M3 Inventory Transfer | 50 |
When the invoice arrives and it is posted, the following is recorded:
APINVOICE: Check Supplier Invoice
| Debit | Credit | ||
| IP5 Preliminary Cost | 50 | IP1 Supplier Debts, invoice | 50 |
Here is the final posting:
| Debit | Credit | ||
| M18 Purchasing unbilled material | 50 | IP5 Preliminary Cost | 50 |
Then, in turn, Site A will pick, deliver, and invoice the external customer order as usual.
Site A: Demand site, inventory value 50 per pcs
Site
B: Supply site, inventory value 10 per pcs
On Site B: When delivering the customer order in Site B to the end customer, the following transaction is recorded in the Site B inventory records:
SHIPDIR: Ship customer order internal direct (instead of OESHIP, which would happen with a delivery of an external customer order).
| Debit | Credit | ||
| M4 Inventory Transfer between Sites | 10 | M1 Inventory | 10 |
On Site A: At the same time the SHIPDIR transaction is created, there is a INTORDTR transaction created that moves the value of the parts to transit on site A. If different inventory values are used on the different sites, there will also be revaluation postings added to the INTORDTR transaction.
INTORDTR: Move to internal order transit due to issue (including revaluation postings due to different inventory values used on the two sites).
| Debit | Credit | ||
| M3 Inventory Transfer | 50 | M4 Inventory Transfer between Sites | 50 |
| M4 | 40 | M156 Inv Value Increase - Order Transit | 40 |
On Site A: A direct delivery is registered manually or (better) automatically, using the DIRDEL message. The following transaction is recorded in the Site A inventory records:
INTPODIRSH: Inter-site direct shipment of customer order
| Debit | Credit | ||
| M24 Cost of Goods Sold, Sales | 50 | M3 Inventory Transfer | 50 |
No further transactions are recorded, since the goods never arrive physically in inventory.
Again, since both sites are in the same financial company, Site B does not create and send an invoice to Site A once it has delivered the internal customer order.
Since the sites are not in the same financial company, Site B sends an invoice to Site A once it has delivered the internal customer order.
Site A: Demand site, inventory value 50 per pcs
Site
B: Supply site, inventory value 10 per pcs, sales part price 50
On Site B: When delivering the customer order in site B to the end customer, the following transaction is recorded in the Site B inventory records:
OESHIP: Ship customer order (same as with an external customer order)
| Debit | Credit | ||
| M24 Cost of Goods Sold, Sales | 10 | M1 Inventory | 10 |
The invoice is created and posted:
INVOICE-D: Invoicing on non-taxable sales
| Debit | Credit | ||
| IP2 | 50 | M30 Non-taxable Sales | 50 |
On Site A: A direct delivery is registered manually or (better) automatically, using the DIRDEL message. The following transaction is recorded in the Site A inventory records:
PODIRSH: Direct ship customer order
| Debit | Credit | ||
| M24 Cost of Goods Sold, Sales | 50 | M10 Receipt with purchase order | 50 |
No further transactions are recorded, since the goods never arrive physically in inventory.
When the invoice from Site B arrives and it is posted, the following is recorded:
APINVOICE: Check supplier invoice
| Debit | Credit | ||
| IP5 Preliminary Cost | 50 | IP1 Supplier Debts, invoice | 50 |
Here is the final posting:
| Debit | Credit | ||
| M18 Purchasing unbilled material | 50 | IP5 Preliminary Cost | 50 |
Then, in turn, Site A invoices the external customer as usual.