3 Replies Latest reply on Nov 19, 2009 7:16 PM by 731897

    Centralized Procurement

    sharonkovac
      I have a question regarding the setups for Centralized Procurement. I'm creating the Intercompany Transaction flows. My starting Operating Unit is US and the end is AU. When I create the intercomapy relations, I'm not sure what to put for 'AR Invoiving for Procuring - Customer' and 'AP Invoicing for Recieving - Supplier.' Any suggestions or guidance? Is the AR Invoicing Customer the US operating unit and the AP Invoicing for Receiving Suppier AU?

      Thanks!
      Sharon
        • 1. Re: Centralized Procurement
          731897
          Centralized Procurement works pretty much the same was as regular Procurement. AR always invoices the Customer for Receivables and AP always invoices the Supplier for Payables.

          Considering your example, you Invoice Customer/Requesting Org in US for Receivables and the Supplier/Shipping Org in AU for Payables. Once you have received the goods:
          1) Run 'Create Intercompany AR Invoice' for the Shipping operating unit (AU)
          2) Run ' AutoInovice Master' program for the internal order with Invoice Source as "Intercompany" in AU Receivables. This generates the
          accounts receivable invoice for the Shipping Operating Unit.
          3) Run "Create Intercompany AP Invoice" for the Requesting (US) Operating Unit in the receiving Inventory. This creates the Payable Invoice.
          4) Run the Expense Import program with source "Intercompany" in the Requesting (US) Operating Unit.
          • 2. Re: Centralized Procurement
            sharonkovac
            Thank you very much for the quick reply. What you said makes sense. I think I was confusing myself on the inetrcompany relations with the actual supplier.

            For example, in the US org, I create a global blanket purchase agreement for Company ABC. Then in AU, I create a PO referencing the global blanket purchase agreement for Company ABC. My intercompany relations setup has nothing to do with Company ABC, correct?

            Thanks again!
            • 3. Re: Centralized Procurement
              731897
              yes. your Inter-company relationships donot affect the supplier and have nothing to do with Company ABC.

              If this solved your query, would you mind to mark this thread as resolved?

              Edited by: Sai Dharanikota on Nov 19, 2009 11:16 AM

              Edited by: Sai Dharanikota on Nov 19, 2009 11:16 AM