| Status | Approved |
| Owner | |
| Stakeholders |
Issue
Syensqo has multiple intercompany processes with different stock in transit valuation methods. This KDD is to assess the option to harmonise the intercompany processes and evaluate the Advanced Intercompany process in SAP.
Background & Context
Following are all the intercompany processes available in Syensqo.
| Process | Description | Logistics Flow | Transport Management | Transfer Price | QM | Returns |
|---|---|---|---|---|---|---|
| Stock Replenishment | Standard Intercompany | Purchase Order: Standard purchase order Logistics: GI/GR Invoice: Posted with EDI | Separate service purchase order: Multiple shipment cost documents are raised | Cost+ Trading price | ||
| Direct Shipment (Drop Shipment / Intercompany Sales) | Sales done by the selling entity to customer with sending entity's plant, Goods are shipped from the sending entity | Sales Order: Standard sales order with sending entity plant Purchase Order: No Logistics: GI/GR Invoice: Automatic invoice is generated on the back of customer billing (EDI) | Separate service purchase order: Multiple shipment cost documents are raised Service purchase order raised in the delivering company code?? | Cost+ Trading price Transfer price is determined and stored in the Sales Order | ||
| Direct Trading (Third Party Sales) | Sales done by Syensqo and the sale is fulfilled using an external purchase order. The goods are shipped directly from the vendor | Sales Order: Standard sales order with a third-party item category Purchase order: Created from Sales Order Logistics: Customer inbound / GR(auto) Invoice/Billing: Generated on back of customer inbound. | Separate service purchase order: Multiple shipment cost documents are raised shipment cost is captured against inbound delivery Note : Multiple trading plants are created to cater to the transportation and taxes for this scenario | ?? | ||
| Indirect Trading (Buy - Sell) | Sales done by Syensqo and the sale is fulfilled using an external purchase order. The goods are shipped to the warehouse and then sent to the supplier | Sales Order: Standard sales order with a third-party item category Purchase order: Created from Sales Order Logistics: GI / GR Invoice/Billing: Standard PO invoice and Sales order billing | Separate service purchase order for PO and SO: Multiple shipment cost documents are raised | Cost+ Trading price | ||
| Consignment | Goods are sent to the customer and stored in customer site. Customer is billed only when the goods are consumed | Sales Process: Consignment process Note: There are virtual plants created in the countries where Syensqo presence is not there. The movement of the stock to the virtual plant will follow the stock transfer process / Stock Replenishment process | Separate service purchase order: Multiple shipment cost documents are raised The shipment cost is captured against the SO inbound delivery | ?? | ||
| Stock Transfer | ||||||
| Sample / Free goods |
Assumptions
Constraints
Impacts
Business Rules
Options considered
Option A: Classic Intercompany Sales
Option B: Advanced Intercompany Sales
Option C: Classic Intercompany Stock Transfer
Option D: Advanced Intercompany Stock Transfer
Evaluation
Classic Intercompany Sales / Classic Intercompany Stock Transfer | Advanced Intercompany Sales / Advanced Intercompany Stock Transfer | |||
|---|---|---|---|---|
| Process Completeness | Low: Process has gaps and manual steps / customisations are required to patch the gaps |
| High: Seamless intercompany stock transfer between affiliated organizations |
|
| Document Flow | Simple Intercompany Sales: All the transactions are based on the Sales Order created Intercompany Stock Transfer: All the transactions are based on the Purchase Order created |
| Complex There are extra sales orders and purchase orders created to support the process. The logistics / finance documents are posted against the relevant Sales Order / Purchase Order |
|
| Valuated Stock in Transit (SIT) | There are gaps in the SIT process. Intercompany Sales: The valuated stock can be posted against the sending entity and not the selling entity. |
| SIT is supported |
|
| Transportation | Incoterms: Not all combinations of Incoterms can be used due to the issue with the SIT Issues with Freight cost accruals and distributions |
| All the incoterm combinations can be used |
|
| Margin Analysis | ||||
| Automation | ||||
| Legal / Regulatory | ||||
| Implementation Complexity | ||||
| Recommendation |
See also
Change log
Workflow history
| Title | Last Updated By | Updated | Status | |
|---|---|---|---|---|
| There are no pages at the moment. | ||||