Intercompany Purchasing

This scenario covers collaboration within a corporate group where the subsidiary acts as a sales office and the headquarters supplies the products. The scenario has two variants: Sales from Central Stock and Sales from Local Stock. The headquarters or parent company supplies its subsidiaries with products. Associated subsidiaries act mainly as sales offices and sell these products - often in different countries. This makes it easier to adhere to local and legal requirements.

Sales from Central Stock

  • Subsidiary acts as sales office
  • Subsidiary sends purchase order to headquarters
  • Shipment is directly from headquarters to customer
  • Headquarters bills subsidiary
  • Subsidiary bills customer

Sales from Local Stock

  • Subsidiary acts as local distributor with its own warehouse
  • Subsidiary determines its demand for products from headquarters
  • Subsidiary sends purchase orders for products on a regular basis
  • Shipment is from headquarters to subsidiary
  • Products are shipped from local warehouse to customer

Process Flow

This scenario consists of the following steps:

  • Create sales order
  • Create purchase order based on sales order
  • Receive sales order confirmation
  • Send purchase order confirmation
  • Receive inbound delivery
  • Receive shipment notification and post statistical goods receipt (Sales from Central Stock only)
  • Receive billing document
  • Create billing document

Key Points

  • Automated collaboration between headquarters and subsidiary
  • Exchange of business process documents (sales order, purchase order, shipment notification, invoice)
  • Significant reduction of transaction costs by eliminating manual steps (sales order confirmation, inbound delivery, invoice verification)
  • Transactional focus providing fully-integrated business processes
  • Built upon established Baseline package scenarios
  • Reuse of customary business processes (order-to-cash, procure-to-pay, sales processing using third-party)
 
 
Business Details
Scenario Overview
Business Process Documentation

Technical Details
Configuration Guide