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Internal Material Transfer Question

Summary:

We use a transfer order with enrichment rules to flow through OM. The transfer is between two different LEs and BUs. Intercompany invoicing is not configured for this flow, this is at its basic level an in-transit interorganization transfer.

In EBS, if there were transfers between BUs there would be intercompany invoicing to recognize the intercompany revenue, intercompany COGS, the intercompany receivable and the intercompany liability.

I noticed in the accounting for our flow that there is no intercompany COGS, just the trade accounting and in-transit inventory movements. The trade accounting does include the inter-organization receivables and payables.

Is that the intended functionality?

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