Set up intercompany agreements and direct deliveries
A sales agreement locks in special prices and discounts for customers buying products over time. Purchase agreements are used for large orders with discounts, each commitment shown as a line. Intercompany trading uses sales and purchase agreements between company branches. Direct deliveries streamline orders by shipping goods directly from vendor to customer, bypassing the seller. In intercompany scenarios, direct delivery happens between the selling and buying company, ensuring smooth logistics. Features include synced addresses and order quantities across sales and purchase orders, with only the vendor setting ship dates. Automated packing slips and invoices simplify processing.
Intercompany agreements
A sales agreement is a contract that commits the customer to buying a product in a certain quantity or amount over time in exchange for special prices and discounts. The prices and discounts of the sales agreement overrule prices and discounts that are in trade agreements that might exist.
Frequently, you would use purchase agreements when you buy large quantities from a vendor and when you obtain special discounts. A purchase agreement can have several commitments in the agreement contract. A line on the Purchase agreements page represents each commitment. When assigning a commitment type to a commitment, you can define how to complete purchase agreements.
You can create sales or purchase agreements for an intercompany trading relationship for the order chain of sales and purchase orders. The selling entity documents the agreement event by using an intercompany sales agreement, and the buying entity documents the agreement event as a purchase agreement.
Intercompany sales agreements
On the Sales agreements page, you can create, apply, and follow up on sales agreements that exist between your organization and its customer. For example, after you create a sales agreement, you can order directly from it.
A sales agreement is valid for a period that the creator of the sales agreement defines. A sales agreement that you create for an intercompany trading relationship must have the Requested receipt date that's specified on the Sales order page fall within the validity period. On the corresponding intercompany purchase agreement, the Delivery date must fall within the validity period.
By default, a sales agreement is on hold. You can order from a sales agreement only when it's set to Effective.
Direct deliveries
Direct deliveries help users create a purchase order directly from a sales order. Then, the vendor ships the order directly to the customer without the selling company handling the physical goods.
In intercompany, the direct delivery occurs between the company that supplies the item and the company to whom the items are shipped.
Intercompany direct delivery extends the regular functionality of direct delivery by controlling the logistical process from the delivering company, that is, the company from which you purchase the items.
Features for intercompany direct delivery include:
The system syncs the delivery address with the purchase order and the intercompany sales order. If you want to update the address at a later stage, you can only do so on the original sales order, not on the purchase order or the intercompany sales order.
The system syncs over-delivery and under-delivery percentages from the original sales order to the purchase order and intercompany sales order. You can only update the over and under-delivery percentages on the original sales order.
You can't set a confirmed receipt or ship date on the original sales order because only the intercompany vendor can specify the confirmed receipt or ship date. When the company specifies the confirmed ship or receipt date, the system also updates them in the original sales order and intercompany purchase order.
The system automatically creates an intercompany direct delivery order if the Direct delivery parameter is selected on the sales order. The default status of this parameter derives from the selection status of the Direct delivery parameter on the customer specified for the sales order.
To simplify the processing of direct deliveries, you can automate the posting and printing of the packing slip and invoice in the intercompany purchase order, the intercompany sales order, or both.
Direct delivery parameters
The direct deliveries parameters are:
Print packing slip automatically - Select this parameter to automatically print the packing slip on the original sales order when you post the packing slip on the intercompany sales order.
Post invoice automatically - Select this parameter to post the invoice automatically for the original sales order when you post the intercompany sales order.
Print invoice automatically - Select this parameter to print the invoice automatically for the original sales order when you post the invoice on the intercompany sales order.
Scenario 1
The delivering company USMF wants to pack the packing slip with items from the original sales order in company DEMF. This packing slip contains all information (for example, original sales order related order) that the customer needs when receiving the items.
For this scenario, you should select Print packing slip automatically.
Scenario 2
The sales company wants to invoice the order to the external customer immediately after the manufacturing company posts the invoice.
For this scenario, you should select Post invoice automatically.
Scenario 3
The sales company wants to invoice the order to the external customer immediately after the manufacturing company posts the invoice. If you want to send the invoice to the external customer, you must print it.
For this scenario, you should select Print invoice automatically.
The following list explains the Intercompany purchase order (direct delivery) field group:
Print product receipt automatically - Select this parameter to automatically print the product receipt for the intercompany purchase order when you post the packing slip on the intercompany sales order.
Post invoice automatically - Select this parameter to automatically post the invoice for the intercompany purchase order when you post the invoice on the intercompany sales order.
Print invoice automatically - Select this parameter to automatically print the invoice for the intercompany purchase order when you post the invoice on the intercompany sales order.
