Exercise - Process a purchase order-initiated intercompany chain

  • 15 minutes

Note

Before you perform this exercise, you must complete the preceding exercise Configure intercompany relations.

Scenario

You are the purchasing assistant in USRT, and you must purchase 10 units of the new item D0001 from the production plant USMF. You start the intercompany chain with a purchase order for a quantity of 10 units of D0001 from USMF.

In this exercise, you will perform updates in both USRT and the vendor company USMF until the intercompany purchase order is invoice-updated. The purchase order initiated intercompany chain is also known as the two-legged chain.

Create the intercompany purchase order in USRT

  1. Start in company USRT and go to Accounts Payable > Purchase orders > All purchase orders.
  2. Select New in the Action Pane to create a new purchase order.
  3. Select Vendor 9001 in the Vendor account field.
  4. In the General FastTab, select Central in the Site field.
  5. Select Chicago in the Warehouse field.
  6. Verify that the Intercompany option is set to Yes.
  7. Select OK.

    Note

    You may get a message that an Intercompany sales order has been created.

  8. The purchase order will be generated and the purchase order page will open.
  9. In Purchase order lines FastTab, add item number T0004, color of Silver in the first line.
  10. Verify the following on the line: Site: Central, Warehouse: Chicago.
  11. In the Quantity field, enter 10.
  12. Unit price will be set to the default price of 160.00.
  13. Select Save in the Action Pane.

    Note

    If you see an error that the ship date is invalid, it can be ignored. The PO is confirmed.

  14. Select the Purchase tab on the Action Pane.
  15. In the Actions group, select Confirm to confirm the purchase order.
  16. Close the purchase order.

Verify the intercompany sales order in USMF

  1. In USMF, go to Sales and marketing > Sales orders > Intercompany orders.
  2. Verify that the new intercompany sales order was created. The prefix of the sales order number is usrt.
  3. Select the new intercompany sales order.
  4. Double-click the intercompany sales order.
  5. The Unit price may reflect the normal sales price for the item. Change it to 160.00.

Remove credit blocking – prerequisite step

  1. Go to Credit and collections > Setup > Credit and collections parameters.
  2. Select the Credit tab, and then the Credit management checkpoint FastTab.
  3. Remove the check mark on Confirmation, Picking list, and Packing slip in the Posting column.
  4. Select Save in the Action Pane.
  5. Close the page.

Generate picking lists, packing slips, and product receipts

You are the purchasing assistant in USRT, and you have purchased 10 units of item T0004, Silver from the production plant (USMF).

You have started the intercompany chain with a purchase order for a quantity of 10 units of T0004, Silver from USMF.

Generate the packing slip and product receipt that are associated with this purchase order

  1. In USMF, go to Sales and marketing > Sales orders > Intercompany orders.
  2. Select and access the intercompany sales order to generate the packing slip.
  3. Select the Pick and pack tab on the Action Pane, under the GENERATE group, and then select Generate picking list.
  4. On the Posting picking list page, verify that All is selected in the Quantity field.
  5. Select OK.
  6. Select OK when prompted to post the document without printing it.
  7. In the Pick and pack tab on the Action Pane, select Picking list registration.
  8. On the Action Pane, select Updates, Update all.
  9. Close the page.
  10. On the Sales order page, on the Pick and pack tab of the Action Pane, under the GENERATE group, select Post packing slip.
  11. On the Packing slip posting page under PARAMETER, verify that All is selected in the Quantity field.
  12. Select OK.
  13. Select OK if prompted to post the document without printing it.
  14. On the INTERCOMPANY ORDERS page, verify that the sales order status is updated to Delivered.

Generate a product receipt

To complete these steps, ensure you are working in the USRT company.

  1. In USRT, go to Procurement and sourcing > Purchase orders > All purchase orders.
  2. Select the intercompany purchase order to generate the product receipt. Ensure you select the order you have been working with for this exercise.
  3. On the Receive tab of the Action Pane, under the GENERATE group, select Product receipt.
  4. On the Posting product receipt page, under PARAMETERS, verify that Ordered quantity is selected in the Quantity field.
  5. Select OK at the bottom of the page.
  6. On the Purchase order page, verify that the purchase order status is updated to Received.

Generate invoices

Now you need to generate the sales order invoice in USMF and then post the purchase order invoice in USRT that is associated with this intercompany sales order.

Generate the sales order invoice in USMF

Ensure you are working in the USMF company to complete these steps correctly.

  1. Go to Sales and marketing > Sales orders > Intercompany orders.
  2. Select the intercompany sales order to generate the invoice.
  3. On the INTERCOMPANY ORDERS page, select the INVOICE tab. Under the GENERATE group, select Invoice.
  4. On the Posting invoice page, under PARAMETER, verify that Packing slip is selected in the Quantity field.
  5. Verify the information in the Lines FastTab and then select the OK button.
  6. Select OK when prompted to post the document without printing it.
  7. On the INTERCOMPANY ORDERS page, verify that the sales order status has been updated to Invoiced.

Post the purchase order invoice in USRT

Ensure you are working in company USRT to compete these steps.

  1. Go to Procurement and sourcing > Purchase orders > All purchase orders.

  2. Select the intercompany purchase order to generate the invoice.

  3. On the INVOICE tab of the Action Pane, under the GENERATE group, select Invoice.

  4. From the Action Pane, select the Match product receipts button to match the product receipts to the invoice.

  5. On the Match product receipts to invoice page, select the OK button at the bottom of the screen.

  6. In the Action Pane, select Update match status

  7. To finish, select Post on the Action Pane, and the invoice will post.

    Note

    You may receive an error that the invoice amount should be another amount (due to Sales tax), and if so, make a note of the amount, go back into the invoice and change the amount.

  8. On the ALL PURCHASE ORDERS page, verify that the purchase order status is updated to Invoiced.