Basic Process

This article presents the most common intercompany process when the BUYER company creates a purchase order and sends it using Advanced Intercompany to a SELLER company which is the IC vendor. In the SELLER company, the sales order is created. Then, both sides can start negotiating the order conditions like price, terms, and delivery dates. After the documents are confirmed by both sides, the IC vendor can issue the shipment and sales invoice. Both documents can also be sent to the BUYER company, which results in updating the shipment information or automatic posting of the purchase order.

Processing Intercompany Orders

The process includes the following steps:

1. [BUYER] Choose the icon, enter Purchase Orders, and then select a related link.
2. [BUYER] Create a new purchase order.
   • In the Vendor field, enter the name of the intercompany vendor (such a vendor has the IIC Endpoint No. field filled in). After this step, the IIC Document field should be automatically marked on the purchase order.
   • Fill in the remaining fields on the Purchase Invoice page as necessary.
   • On the Lines FastTab, enter the necessary fields at least: Type, No., Quantity and Direct Unit Cost.
3. [BUYER] Release the purchase order by using the Release action.
4. [BUYER] Send the purchase order by using the IIC Send action. After using this action, the IIC Status Code field should be changed to OUTBOUND.

Note

The action can be automatically executed, if the IIC Send On Document Release field is marked in the IIC Setup.

5. [BUYER] Use the IIC Send Outbound Messages report to send the message to the IC partner. The value in the IIC Status Code field on the purchase order will be changed to SENT.

Important

This step can be automated by setting up report 20020697 in the job queue. The Job Queue Entry card page can be created by using a dedicated function on the IIC Setup page.

6. [SELLER] Switch the company to the SELLER company. Choose the icon, enter IIC Sales Buffer Documents, and then select a related link.
7. [SELLER] Open the IIC Sales Buffer Document page for the latest entry.
   • Use the Validate action to verify that there are no errors for further processing.
   • Use the Accept action to accept the incoming message and create a sales order.

Note

Both actions can be automated by using job queues and setting up the Auto Process New Sales Order field to the Accept value on the Auto Process FastTab on the IIC Setup page.

8. [SELLER] Confirm that the buffer message is to be processed and open the sales order document card. As the result, the application has created a sales order document with the IIC Status Code field set to NEW.
9. [SELLER] Adjust the sales order document, if needed and use the Release action to release the document.
10. [SELLER] Send the sales order by using IIC Send function. After using this action, the IIC Status Code field value should be changed to OUTBOUND.
11. [SELLER] Use the IIC Send Outbound Messages report to send the message to the IC partner. The IIC Status Code field on the sales order will be changed to SENT.
12. [BUYER] Switch the company to the BUYER company. Choose the icon, enter IIC Purchase Buffer Documents, and then select a related link. Alternatively, you can access the IIC Purchase Buffer page by choosing the IIC Buffer Document Exists FlowField on the purchase order.
13. [BUYER] Open the IIC Purchase Buffer Document page for the entry related to the purchase order.
    • Use the Validate action to verify that there are no errors for the further processing.
    • Use the Accept action to accept the incoming message and process the purchase confirmation.
14. [BUYER] As the result the IIC Status Code field value in the purchase order will be changed to CONFIRMED.
15. [BUYER] Use the IIC Send Outbound Messages report to send the message to the IC partner. As the result, the documents on both sides will be confirmed.
16. [SELLER] Switch the company to the SELLER company. Post the sales order - both the shipment and the invoice.
17. [SELLER] Search for the sales shipment and posted sales invoice and use the dedicated action: IIC Send.
18. [SELLER] Use the IIC Send Outbound Messages report to send messages to the IC partner. The IIC Status Code field on the sales shipment and posted sales invoice will be changed to SENT.

Note

Sending the sales shipment and posted sales invoice can be automated, if the dedicated job queue is configured and fields: Auto Send Posted S. Shipment and Auto Send Posted S. Invoice are selected on the Auto Send FastTab on the IIC Setup page.

19. [BUYER] Switch the company to the BUYER company. Open the IIC Purchase Buffer Documents page to see new entries related to the purchase order. Validate and accept the shipment notification message. As the result, the IIC Shipment Status and IIC Shipped Qty. (Base) fields will be updated on the purchase order line.
20. [BUYER] Open the purchase order and post a purchase receipt.
21. [BUYER] Open the IIC purchase buffer documents. Validate and accept the invoice confirmation message. As the result, the purchase invoice will be posted and the purchase order will be deleted.

Important

Each process can be automated by using job queues and defining proper settings in the IIC setup. In the end, the whole flow can be fully automated and users do not need to send messages or validate buffer documents manually.

The following table presents how the IIC status changes during the process in both companies:

Understanding the Status Flow

Step	Purchase Order Status in BUYER	Sales Order status in SELLER
Purchase order is created
Purchase order is released and sent	OUTBOUND
IC message is sent from the queue	SENT
Document is validated in the sales buffer
Sales order is created	ACCEPTED	NEW
Sales order is released and sent		OUTBOUND/SENT
Document is validated in the purchase buffer
Document is accepted in the buffer	CONFIRMED	CONFIRMED
Sales order is posted.	CLOSED	CLOSED