the working process across branch companies

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Global Roll-out, SAP

The Working Process Across Branch CompaniesIntercompany Integration Solution for SAP Business One

2PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The Working Process Across Branch Companies:

▪ Topic 1: The Intercompany Trade Process

▪ Topic 2: Allocation of Amounts Across Branch Companies

▪ Topic 3: Centralized Payments

Process Overview


At the end of this course, you will be able to:

• Follow the workflow across companies:

▪ Run the intercompany trade process - post documents (AR/AP)

▪ Allocate expense and income amounts

▪ Post centralized payments

• Work with the involved master data in the different companies.

Topic Objective






Process Overview


▪ OEC Computers has three branches in the US: The head office in New York and

branches in California and Texas.

▪ All branches run SAP Business One.

▪ New York and California are selling the company products, while Texas

manufacturers them.

▪ When one of the retail companies receives an order from a customer, they place a

back-to-back purchase order to the manufacturing company.

▪ This initiates the intercompany trade process that allows an automatic document

flow.

The Intercompany Trade Process:

Business Scenario


▪ For each branch company define:

▪ Vendor

▪ Customer

▪ Define these master data records as Global

▪ Connect each customer and vendor record

to the relevant branch

▪ A Purchase Order for a vendor (Texas) in the

retail branch (NY) will initiate a Sales Order in

the manufacturer branch (Texas)

The Intercompany Trade Process

Prerequisites – Branch Business Partner

Branch Customer Code Vendor Code

OEC-NY OEC-NY-CUST OEC-NY-VEND

OEC-TX OEC-TX-CUST OEC-TX-VEND

OEC-CA OEC-CA-CUST OEC-CA-VEND

Purchase Order

OEC-TX-VEND

Sales Order

OEC-NY-CUST

OEC-NY OEC-TX


Intercompany Trade – Document Flow

OE

C-N

Y

OE

C-T

X

Purchase Order Sales Order

A/R ReserveInvoice

Automatic using B1i

A/P ReserveInvoice

DeliveryGoods Receipt PO

A/R InvoiceA/P Invoice

A/R Debit MemoA/P Debit Memo

A/R Credit MemoA/P Credit Memo

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

Company A Company B

A/P CorrectionInvoice

A/P CorrectionInvoice Reversal

A/R CorrectionInvoice

A/R CorrectionInvoice Reversal

Goods Return Return

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

User Action

User Action


Inter-Branch Transaction Scenario


A/R ReserveInvoice

Automatic using B1i

A/P ReserveInvoice





Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

Company A Company B





Goods Return Return

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action

OE

C-N

Y

OE

C-T

X


Inter-Branch Transaction Scenario

OE

C-N

Y

OE

C-T

X


A/R ReserveInvoice

Automatic using B1i

A/P ReserveInvoice





Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

Company A Company B





Goods Return Return

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action


Intercompany Trade – Document Status

Pending

Accept

Reject

Document

Total

Comparison

Engine


The Intercompany integration solution:

▪ Replicates serial numbers and batch numbers

as part of the document exchange cycles.

▪ Blocks creation of intercompany marketing

document until the base document is confirmed.

More about Marketing Documents


Cancelling Marketing Documents

You can cancel most sales and

purchasing documents that trigger

postings:

▪ A corresponding cancellation document is created

▪ The base documents of the canceled documents

are reopened

▪ The application automatically cancels the reciprocal

document


▪ Make sure you create separate control

accounts for each of the business

partners representing a branch company

▪ In each branch you define the control

accounts for the business partners

representing the other branches

▪ This is the New York branch account

setup

Branch Business Partner

Dedicated Control Accounts

Branch Vendor Control

Account

Customer Control

Account

OEC-NY __ __

OEC-TXPayable OEC-TX

Company

Receivable OEC-TX

Company

OEC-CAPayable OEC-CA

Company

Receivable OEC-CA

Company

OEC-NYControl Account Setup




Steps 15 and 16 in the Intercompany Setup Wizard in each branch runs the

users through the steps relevant for setting up the Receivable and Payable

control accounts of the other branches.


▪ Let us look at the Texas control

account setup



OEC-TXControl Account Setup


Account

Customer Control

Account

OEC-NYPayable OEC-NY

Company

Receivable OEC-NY

Company

OEC-TX__ __

OEC-CAPayable OEC-CA

Company

Receivable OEC-CA

Company


▪ Let us look at the California control

account setup



OEC-CAControl Account Setup


Account

Customer Control

Account

OEC-NYPayable OEC-NY

Company

Receivable OEC-NY

Company

OEC-TXPayable OEC-TX

Company

Receivable OEC-TX

Company

OEC-CA__ __




In each branch, for

the business partners

representing the other

branches, define the

control account.


Inter-Branch Transaction ScenarioIncluding an External Customer


A/R ReserveInvoice

Automatic using B1i

A/P ReserveInvoice





Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

Company A Company B





Goods Return Return

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

User Action

User ActionOE

C-N

Y

OE

C-T

X

User Action

Custo

mer

Emphases:

◼Choose a drop ship

WH

◼Check the Procurement

Document box



Emphases:

◼ Choose a drop

ship WH.

◼ Check the

Procurement

Document box.

OE

C-N

YC

usto

mer



OE

C-N

YC

usto

mer

OE

C-T

X

Emphases:

◼Choose the branch

vendor BP

◼Use the Ship to BP

field


A/R ReserveInvoice

Automatic using B1i

A/P ReserveInvoice





Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

Company A Company B





Goods Return Return

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action



Emphases:

◼ Choose the

branch vendor BP.

◼ Use the Ship to

BP field.



OE

C-N

YC

usto

mer

OE

C-T

X

Emphases:

◼ Use the Create

Delivery option.


A/R ReserveInvoice

Automatic using B1i

A/P ReserveInvoice





Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

Company A Company B





Goods Return Return

Automatic using B1i

Automatic using B1i

Automatic using B1i

Automatic using B1i

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action

User Action



Emphases:

◼ Use the Create

Delivery option.






Process Overview


▪ The head office branch allocates expenses such as

travel, payroll, and audit

▪ The head office also allocates income earned from

Interest to the branch companies

Branch Allocation: Business Scenario

▪ At the end of each month the head office branch (NY) allocates expense

and income amounts to the other branch companies (California and Texas)


▪ You allocate expenses and

incomes to other branch

companies using the G/L

Branch Allocation window

G\L Branch Allocation Window

Financials → G/L Branch Allocation.

Top Matrix – Allocating Company


G\L Branch Allocation Window

▪ You allocate expenses and

incomes to other branch

companies using the G/L

Branch Allocation window


Bottom Matrix – Receiving Companies


G\L Branch Allocation - Target Company Allocation Account

▪ If you specify the target

company allocation

account for a branch code,

then this allocation account

will be used instead of the

receiving company´s

default expense account or

default income account



G\L Branch Allocation - Target Company Allocation Account

▪ To be able to specify the

target company allocation

account for a branch code,

run the Allocation Accounts

Synchronization option

Administration → System Initialization →

Company Details → Accounting Data tab.


▪ When you add the G/L Branch

Allocation form, a journal

entry is automatically created

in the current company, the

company that allocates the

amounts

(NY in our example).

Expense Allocation to Branch Companies

The Journal Entry in the Allocating Company

Dr Cr

Due From

BR002

R$ 250

Expense –

Management

Fee

$ 1000

Due From

BR003

$ 350

Due From

BR004

$ 400

Dr Cr

Due To BR001

$ 250

Default

Expense

Account

$ 250

Dr Cr

Due To BR001

$ 350

Default

Expense

Account

$ 350

Dr Cr

Due To BR001

$ 400

Default

Expense

Account

$ 400

Head Office

BR001

Subsidiary 1

BR002

Subsidiary 2

BR003

Subsidiary 3

BR004

G/L Allocation Screen

Journal Voucher Screen



Sender System

Receiver System

Receiver System

Receiver System


▪ When you add the G\L Allocation,

a journal voucher is created in

the allocated companies

(Texas and California)

Expense Allocation to Branch Companies

Journal Voucher in the Allocated Companies

Dr Cr

Due From

BR002

R$ 250

Expense –

Management

Fee

$ 1000

Due From

BR003

$ 350

Due From

BR004

$ 400

Dr Cr

Due To BR001

$ 250

Default

Expense

Account

$ 250

Dr Cr

Due To BR001

$ 350

Default

Expense

Account

$ 350

Dr Cr

Due To BR001

$ 400

Default

Expense

Account

$ 400

Head Office

BR001

Subsidiary 1

BR002

Subsidiary 2

BR003

Subsidiary 3

BR004

G/L Allocation Screen




Sender System

Receiver System

Receiver System

Receiver System


▪ Make sure you define due from and due to

accounts in each branch company

▪ These accounts are used as the default

accounts for the transactions:

▪ G/L branch allocation

▪ A/P service invoice allocation

▪ Centralized payment

▪ In each branch you define the due from and

due to accounts for transactions representing

the other branches

Allocate Amounts Across Branch Companies

Prerequisites - Due To + Due From Accounts

Branch Due To Account Due From Account

OEC-NY __ __

OEC-TXDue to OEC-TX

Company

Due From OEC-TX

Company

OEC-CADue to OEC-CA

Company

Due From OEC-CA

Company

OEC-NYBranch Account Setup


Due To + Due From Accounts Setup


▪ Another way to

allocate expense

amounts to other

branch companies

is by using the

Allocation window

on the A/P Service

Invoice document

A/P Service Invoice Allocation


Additional Definitions for the G/L Allocation and the A/P Service Invoice

Allocation

Default Accounts Setup


Additional Definitions for the G/L Allocation and

the A/P Service Invoice Allocation

Account Classification

Sending Company


Additional Definitions for the G/L Allocation

and the A/P Service Invoice Allocation


Receiving Company


Additional Definitions for the G/L Allocation and

the A/P Service Invoice Allocation


Receiving CompanyAccount Classification

Sending Company






Process Overview


Centralized Payments:Business Scenario

▪ For this process, the branch companies

(California and Texas) need to delegate

outgoing payment lines to the paying branch

(NY)

▪ At the end of each month the head office branch (NY) centralizes the

outgoing payments and pays the company vendors on behalf of the other

branches (California and Texas)


Centralized Payments Transaction Flow

Company B Head Office -BR001

Company A Subsidiary Company BR002

Dr Cr

Due From Account BR002

Vendor Account

Dr Cr

Vendor Account

Due to AccountBR001

Automatic using B1i

Dr Cr

Vendor Account

Cash/Bank Account

Delegation of payment line to BR001

User Action

Journal Entry

Outgoing Payment

OEC-NYOEC-TX


Centralized PaymentsTransaction Flow

Company B Head Office -BR001

Company A Subsidiary Company BR002

Dr Cr

Due From Account BR002

Vendor Account

Dr Cr

Vendor Account

Due to AccountBR001

Automatic using B1i

Dr Cr

Vendor Account

Cash/Bank Account

Delegation of payment line to BR001

User Action

Journal Entry

Outgoing Payment

OEC-NYOEC-TX

Thank you.

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