1. Equipment Rental
  2. Rental Management
  3. Rental processes
  4. Fleet and warehouse management
  5. Business object management

Intercompany trade of business objects

You can sell a business object in Rental Management from one legal entity to another.

If you select an intercompany vendor account on a purchase order, it becomes an intercompany purchase order. The related intercompany sales order is automatically created in the selling legal entity. Any added lines are mirrored in the intercompany sales order.

Scenarios:

  • Company A wants to sell a business object owned by company B. Company A first buys the object from company B, receiving it as an inventory item. Use action "Buy an inventory business object".
  • Company A purchases equipment for all legal entities. Other companies buy the equipment at cost price from company A. Use "Buy an inventory business object" or "Buy a rental business object" as applicable.

Prerequisites:

  • In the selling legal entity, set up a customer account for the buyer and define intercompany settings.
  • In the buying legal entity, set up a vendor account for the seller and define intercompany settings.
  • Define these relationships for each trading legal entity pair.

Notes:

  • If you perform all steps yourself, switch between legal entities as needed.
  • You can receive and invoice the intercompany purchase order from either the sales or the purchase order.


Accounts receivable clerk Accounts receivable clerk Purchasing agent Purchasing agent Receiving clerk Receiving clerk Sales clerk Sales clerk Start Start Create intercompany purchase order (Buying legal entity) Create intercompany purchase order (Buying legal entity) Create an intercompany purchase order to buy a business object from another legal entity. This action automatically creates a related intercompany sales order in the selling legal entity. Select an intercompany vendor account. The purchase order will automatically become an intercompany order. A corresponding sales order is created in the selling entity for the related intercompany customer account. Note: To view the related intercompany sales order, go to the action pane. On the General tab, in the Related information group, select Related orders. Procedure 1. Go to Accounts payable > Purchase orders > All purchase orders. 2. Click New. 3. In the Vendor account field, enter or select a value. 4. In the Warehouse field, enter or select a value. 5. Fill in the other fields as desired. Click OK. Buy a rental or an inventory business object?  Buy a rental or an inventory business object?  Buy a rental business object (Buying legal entity) Buy a rental business object (Buying legal entity) You can use an intercompany purchase order to buy a rental business object or an inventory business object: If the New fixed asset field is set to Yes, a fixed asset is created in the buying legal entity. If the New fixed asset field is set to No, no fixed asset is created. When you buy a rental business object, the system creates a fixed asset to inventory journal automatically. You do these steps in the buying legal entity. Procedure 1. Go to Accounts payable > Purchase orders > All purchase orders. 2. In the Purchase order lines section, click Add line. 3. In the Item number field, enter or select a value. Fill in the other fields as desired. 4. In the Serial number field, enter or select a value. If you buy a serialized item, you must enter the serial number manually on both the intercompany purchase order and the related intercompany sales order. Note: A serial number is available at this stage only if an item was previously cross-rented between these Legal entities. If the serial number is not available skip the step and assign the serial number after the packing slip will be posted in the Selling legal entity. 5. Click the Fixed assets tab. The fixed asset tab is located on the line details. 6. Select Yes in the New fixed asset? field. 7. In the Fixed asset group field, enter or select a value. 8. On the Action Pane, click Purchase. 9. Click Confirm. 10. Close the page. Buy an inventory business object (Buying legal entity) Buy an inventory business object (Buying legal entity) You can use an intercompany purchase order to buy a rental business object or an inventory business object: If the New fixed asset field is set to Yes, a fixed asset is created in the buying legal entity. If the New fixed asset field is set to No, no fixed asset is created. When you buy a rental business object, the system creates a fixed asset to inventory journal automatically. This activity explains how to buy an inventory business object. You do these steps in the buying legal entity. Procedure 1. Go to Accounts payable > Purchase orders > All purchase orders. 2. In the list, find the desired record and click the link. 3. Click Edit. 4. In the Purchase order lines section, find and select the desired record. 5. Expand the Line details section. 6. Click the Fixed assets tab. 7. Select No in the New fixed asset? field. Ship intercompany sales order  (Selling legal entity) Ship intercompany sales order  (Selling legal entity) When a legal entity buys a business object from another legal entity through intercompany trade, a sales order is created in the selling legal entity. Ship the intercompany sales order from the selling legal entity to the buying legal entity. The steps in this activity skip the picking process. You can perform the picking steps if needed. Note: After confirming the intercompany sales order, the financial owner is cleared, the last on-rent date is set, and the category is set to Inventory. After posting the packing slip, the category is updated to External. After posting the packing slip, a serial number becomes available in the buying legal entity. If not already assigned on the purchase order, assign the serial number on the line. Procedure 1. Go to Accounts receivable > Orders > All sales orders. 2. In the list, find and select the desired sales order. 3. Click Edit. 4. In the Sales order lines section, find and select the desired record. 5. In the Serial number field, enter or select a value. 6. On the Action Pane, click Sell. 7. Click Confirm. 8. On the Action Pane, click Pick and pack. 9. Click Packing slip. 10. In the Quantity field, select 'All'. 11. Click OK. 12. Click OK. Receive business object (Buying legal entity) Receive business object (Buying legal entity) If a business object was purchased via an intercompany purchase order, you can receive it in the buying legal entity after the related intercompany sales order's packing slip is posted in the selling legal entity. You can also receive the business object from the selling entity’s intercompany sales order after posting the packing slip. To do this: Go to Accounts receivable > Orders > All sales orders. Select the required record. On the Action Pane, click Pick and pack. Select Packing slip journal. Click Intercompany. Select Generate intercompany product receipt. Note: For inventory business objects, only the physical owner is updated to the buying entity, and the category is inventory. For rental business objects, both physical and financial ownership are set to the buying entity. The first on-rent date and rental category are updated. A fixed asset is created and linked to the rental business object in the buying legal entity. Procedure 1. Go to Accounts payable > Purchase orders > All purchase orders. 2. In the list, find and select the desired record. 3. On the Action Pane, click Receive. 4. In the Generate group, click Product receipt. 5. In the Product receipt field, type a value. 6. Click OK. Invoice intercompany sales order (Selling legal entity) Invoice intercompany sales order (Selling legal entity) If an intercompany sales order is delivered, invoice the sales order in the selling company. The invoice is issued to the buying legal entity. For more information, see Create sales order invoices. Procedure 1. Go to Accounts receivable > Orders > All sales orders. 2. In the list, find and select the desired record. 3. On the action pane, on the invoice tab, in the generate group, click Invoice. 4. Click OK. 5. Click OK. Generate intercompany invoice (Selling legal entity) Generate intercompany invoice (Selling legal entity) You can generate the purchase order invoice from the intercompany sales order in the selling legal entity, if the sales invoice has been posted. The invoice number is automatically filled and matches the sales invoice number. This activity is performed by the selling legal entity. You can also generate the invoice from the intercompany purchase order in the buying legal entity, if the sales invoice is posted. For details, see vendor invoices. Procedure 1. Go to Accounts receivable > Orders > All sales orders. 2. In the list, find and select the desired record. 3. On the Action Pane, click Invoice. 4. In the Journals group, click Invoice. 5. On the intercompany section, click Generate intercompany invoice. 6. Close the page. End End Rental business object Inventory Business object

Activities

Name Responsible Description

Create intercompany purchase order (Buying legal entity)

Purchasing agent

Create an intercompany purchase order to buy a business object from another legal entity. This action automatically creates a related intercompany sales order in the selling legal entity.

Select an intercompany vendor account. The purchase order will automatically become an intercompany order. A corresponding sales order is created in the selling entity for the related intercompany customer account.

Note:

  • To view the related intercompany sales order, go to the action pane. On the General tab, in the Related information group, select Related orders.

Buy a rental business object (Buying legal entity)

Purchasing agent

You can use an intercompany purchase order to buy a rental business object or an inventory business object:

  • If the New fixed asset field is set to Yes, a fixed asset is created in the buying legal entity.
  • If the New fixed asset field is set to No, no fixed asset is created.

When you buy a rental business object, the system creates a fixed asset to inventory journal automatically.

You do these steps in the buying legal entity.

Buy an inventory business object (Buying legal entity)

Purchasing agent

You can use an intercompany purchase order to buy a rental business object or an inventory business object:

  • If the New fixed asset field is set to Yes, a fixed asset is created in the buying legal entity.
  • If the New fixed asset field is set to No, no fixed asset is created.

When you buy a rental business object, the system creates a fixed asset to inventory journal automatically.

This activity explains how to buy an inventory business object. You do these steps in the buying legal entity.

Ship intercompany sales order  (Selling legal entity)

Sales clerk

When a legal entity buys a business object from another legal entity through intercompany trade, a sales order is created in the selling legal entity.

Ship the intercompany sales order from the selling legal entity to the buying legal entity.

The steps in this activity skip the picking process. You can perform the picking steps if needed.

Note:

  • After confirming the intercompany sales order, the financial owner is cleared, the last on-rent date is set, and the category is set to Inventory.
  • After posting the packing slip, the category is updated to External.
  • After posting the packing slip, a serial number becomes available in the buying legal entity. If not already assigned on the purchase order, assign the serial number on the line.

Receive business object (Buying legal entity)

Receiving clerk

If a business object was purchased via an intercompany purchase order, you can receive it in the buying legal entity after the related intercompany sales order's packing slip is posted in the selling legal entity.

You can also receive the business object from the selling entity’s intercompany sales order after posting the packing slip. To do this:

  1. Go to Accounts receivable > Orders > All sales orders.
  2. Select the required record.
  3. On the Action Pane, click Pick and pack.
  4. Select Packing slip journal.
  5. Click Intercompany.
  6. Select Generate intercompany product receipt.

Note:

  • For inventory business objects, only the physical owner is updated to the buying entity, and the category is inventory.
  • For rental business objects, both physical and financial ownership are set to the buying entity. The first on-rent date and rental category are updated.
  • A fixed asset is created and linked to the rental business object in the buying legal entity.

Invoice intercompany sales order (Selling legal entity)

Accounts receivable clerk

If an intercompany sales order is delivered, invoice the sales order in the selling company. The invoice is issued to the buying legal entity.

For more information, see Create sales order invoices.

Generate intercompany invoice (Selling legal entity)

Accounts receivable clerk

You can generate the purchase order invoice from the intercompany sales order in the selling legal entity, if the sales invoice has been posted. The invoice number is automatically filled and matches the sales invoice number.

This activity is performed by the selling legal entity.

You can also generate the invoice from the intercompany purchase order in the buying legal entity, if the sales invoice is posted. For details, see vendor invoices.

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