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Intercompany Trade
If Freight is implemented and freight costs are handled internally, you must specify the internal Freight
responsibilities:
• The party responsible for freight planning
• The party that must pay the freight costs
Optionally, you can link internal terms and conditions agreements to enterprise units. Internal terms
and conditions are used within the context of internal ownership. The terms and conditions become
effective when you attach the terms and conditions to a relationship between enterprise units. The
enterprise unit relationships defined for internal terms and conditions have no impact on the intercompany
trade agreements linked to intercompany trade relationships.
Prerequisites
Before setting up intercompany-trade master data, these enterprise modeling attributes must be set
up:
• Entities
• Enterprise units
• Internal business partners
• The enterprise units must be linked to the appropriate internal business partners.
• Logistic and financial companies
In addition to specifying intercompany trade relationships between financial companies, enterprise
units, and entities, you must link the enterprise units to internal business partners.
The business partner data is complementary to the relationship data. For example, based on the
specified price origins, LN retrieves the price from the internal price book used for the business partner.
How to set up intercompany trade
The most efficient way to set up the intercompany trade functionality is to define the smallest building
blocks first:
1 In Implemented Software Components (tccom0100s000) the session, select the Intercompany
Trade check box.
2 If desired, in the Intercompany Trade Classification (tcitr1630m000) session, define intercompany
trade classifications.
3 In the Intercompany Trade Agreement (tcitr1600m000) session, define an intercompany trade
agreement.
For each intercompany trade agreement, you must specify the intercompany trade scenario to which
the trade agreement applies. This determines the available transfer pricing rules that determine the
amounts of the internal costs and revenue bookings and, if specified, internal invoices.
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