When you process and invoice an order, the selling organization records entries to accounts receivable, for revenue, tax, and freight. The shipping warehouse records entries to the inventory asset account and the cost of goods sold (COGS) account. When the above scenario involves a selling organization in one operating unit, and a shipping organization in another operating unit additional accounting must take place.
The shipping organization must bill the selling organization at the transfer price, and the selling organization must make the corresponding payment. The intercompany accounts receivable invoice is the transaction the system uses to record the intercompany receivable accounting for the shipping organization. It debits the intercompany accounts receivable at transfer price, charges tax, freight, and credits intercompany revenue.
The intercompany accounts payable invoice is the transaction the system uses to record the payable accounting for the selling organization. The system debits intercompany COGS and freight, and credits the intercompany payable account.
This course teaches students about the basic Oracle Intercompany Invoicing, including the way to to setup an organizational's functional Enterprise Structure in Oracle E-Business Suite.
It will be useful to anyone who is new to Oracle Inter-company Invoicing and looking for understanding the basic concepts inter-company orders and associated inter-company invoicing across Operating Units.
We will be using the following environment for demonstration:
+ Oracle E-Business Suite Release 12.2.7
+ Operating System = Oracle Linux 6.4 (x86-64) installed on VM
By the end of this course you will be able to learn complete Inter-company business process flow spanning across multiple Operating Units.
Oracle EBS instance can be used for demo or personal learning purposes. Following are potential audience for this course:
+ Business Users
+ Anyone who wants to learn Oracle E-Business Suite Financials and SCM
+ Oracle Functional Consultants