Scenario:
The user enabled Supply Planning and configured Planning Rules to generate inventory transfers between locations. While testing, Supply Planning successfully proposed Intercompany Transfer Orders when inventory movement between subsidiaries was required. However, the business requirement was to use Arm’s Length Intercompany Transfers instead of standard non-arm’s length Intercompany Transfer Orders.
Solution:
Currently, NetSuite Supply Planning does not support direct generation of Arm’s Length Intercompany Transfers.
By design:
- Supply Planning only creates standard Intercompany Transfer Orders
- These are considered non-arm’s length transactions
- Arm’s Length transfers require:
- Intercompany Sales Orders
- Intercompany Purchase Orders
- These transactions are managed through the Automated Intercompany Management feature rather than Supply Planning
Workaround Options:
- Use Supply Planning to generate standard Intercompany Transfer Orders.
- Manually convert or recreate the transactions as:
- Intercompany Sales Orders
- Intercompany Purchase Orders
- Alternatively, manually create Arm’s Length intercompany transactions outside of Supply Planning entirely.
Important Notes:
- There is currently no native configuration setting within Supply Planning to switch transfer proposals from non-arm’s length to arm’s length transaction types.
- Additional customization or external planning processes may be required if fully automated Arm’s Length intercompany replenishment is needed.
Reference:
SuiteAnswers ID 24271 – Managing Intercompany Inventory Transfers - Arm's Length
