Solutions for Oracle ERP exchange between companies

Because 111 of the group companies, there is such a business: 222 of the business after receiving the sales order, from 333 of the company delivery to the customer, but from the customer's receipt is 222 of the business.

 

For such a business, we have the following three solutions.

solution 1
using the integration relationship between Oracle Applications, the company invoicing function of the inventory management system and order entry management system is used to calculate internal transactions.
for business office 222, set company 333 as the supplier, and set the liability account as "Internal transaction-company 333" in the Account Payable account at the supplier location layer.
for company 333, set "222 business office" as the customer and define a virtual sales representative. The receivables corresponding to the sales representative are "internal transactions-222 business office ".
after the sales department enters the sales order in the system, the Planning Department issues the sales order from the warehouse of 333 Co., Ltd. and confirms the delivery, submit the request "receivables interface" in the om system of the 222 business office and enter the "transaction processing Source: Import sales order" parameter. After the operation is completed, the system automatically sends the customer, item information and amount, tax and freight information are imported into the AR interface.
222 the accounting department of the Business Office should check the interface table in the receivables management system, submit the running request "automatic invoicing master Program ", and the transaction processing source is "Import sales orders ", the system automatically converts the transaction processing information in the interface into an invoice. Accounting entries:
222 business office, Dr: Accounts Receivable
Cr: business revenue-a product
in the inventory management system, submit a request for "create an inter-company Ar invoice" and "create an inter-company AP invoice ".
333 in the receivables management system, the finance department of the company limited can view the content in the interface table and submit the running request "automatic invoicing main program". The invoice source is "inter-company ". By setting automatic accounting rules, the main accounts receivable and sub-accounts are defined to be from the "sales representative" and indirectly from the customer (222 business office). The system generates exchange entries between companies:
333 Company Limited:
Dr: Internal transaction ----- 222 Business Office
Cr: business Income
222 the accounting department of the Business Office submits a request for "Import of payable invoices" in the payable management system. The invoice source is "inter-company ", use the payable management system to generate inter-company transaction entries:
222 business office, Dr: procurement expenditure
Cr: Internal transaction ----- 333

Solution 2

> The Oracle application is integrated with each other to implement internal accounting through the inter-organization transfer function of the inventory management system.
> 222 after the sales department enters the sales order in the system, if the shipping company planned by the Planning Department is a 333 Company Limited, the 333 Company Limited will perform "Inter-organizational transfer" in the system ", the goods are transferred from the warehouse of 333 limited in the system to the 222 business office. This will generate such a credential in INV:
222 business office, Dr: Inventory
Cr: internal transactions-333 companies
333 Company Limited,
DR: internal transactions-222 Business Office
Cr: Inventory
> Then, after sending a sales order from the company's warehouse at the 222 business office and confirming delivery, submit the "receivables interface" in the system and enter the parameters: after the invoice source is "sales order import", the system automatically includes the information about the accounting period, customer information, item information, amount, tax Amount, freight, and other information are imported into the interface of AR at business office 222.
> 222 the accounting department of the Business Office should view the content in the interface table in the receivables management system, submit the run request "automatic invoicing main program", and the invoice source is "Import sales orders ", the system automatically converts the transaction processing information in the interface into an invoice.
> 222 the accounting department of the Business Office can view and modify the invoice information in the transaction summary window.
> 222 the revenue of the business office is confirmed at one time when the invoice is imported, and the creditor's rights of the receivables are recorded at the same time. The accounting entries generated at the 222 Business Office are:
DR: Accounts receivable
Cr: business income-a product

Solution 3

> Each company independently processes the company's business and uses the general ledger management system to calculate the creditor's rights and debts between the companies.
> After the sales department enters the sales order in the system, the Planning Department issues the sales order from the warehouse of 333 Co., Ltd. and confirms the delivery, submit the request "receivables interface" in the om system of the 222 business office and enter the "transaction processing Source: Import sales order" parameter. After the operation is completed, the system automatically sends the customer, item information and amount, tax and freight information are imported into the AR interface.
> 222 the accounting department of the Business Office should view the content in the interface table in the receivables management system, submit the run request "automatic invoicing main program", and the transaction processing source is "Import sales orders ", the system automatically converts the transaction processing information in the interface into an invoice. Accounting entries:
222 business office, Dr: Accounts receivable
Cr: business income-a product
> 222 the accounting department of the Business Office enters inter-company transaction processing in the general ledger to generate inter-company exchange creden.
222 business office, Dr: procurement expenditure
Cr: internal transactions-333 companies
333 Company Limited:
DR: internal transactions-222 Business Office
Cr: business income-a product

 

advantages and disadvantages
all three solutions can meet business needs, but they have different focuses in different solutions.
solution 1 is the most standard and perfect practice. It makes full use of the system functions and ensures the consistency and integrity of the financial and physical management processes. Through om, the integration of INV and Ar forms a complete sales, shipping, and invoicing process. However, the solution is also the most cumbersome, with the greatest workload and operational difficulty, requiring close coordination and cooperation between the Finance, warehouse management, planning, and business departments.
solution 3 is the simplest and most direct practice. Accounting for inter-company transactions involves only the financial departments of the two companies, there is no need to put forward special requirements to other departments such as the Warehouse Management and Planning Department, while the operational difficulty and management effect of solution 2 are defined between solution 1 and solution 3.
in terms of system function implementation requirements and prerequisites, solution 1 requires you to enter a complete and direct price list at the Shantou business office. Solution 2 requires that all the items involved in the inventory have entered the cost separately, so that the warehouse can be transferred to calculate the amount of inter-organizational transfers, solution 3 does not have any additional conditions except for maintaining the exchange date between companies.
in general, we recommend that you use the third solution in the current phase to facilitate daily business operations in the system. In the subsequent stages, the transition to the first solution will be gradually considered based on the customer's proficiency in the system and management improvement.