A Guide to Global Procurement and Transfer Pricing Setups.10.06.14

A Guide to Global Procurement and Transfer Pricing Setups

Setups using ADEV instance and GB Commercial as the Global Purchasing Agent and TPCL Commercial as the Distribution entity

Shashin Bhavsar

6/14/2010

A Guide to Global Procurement and Transfer Pricing Setups 2010

Table of ContentsUser Setup--------------------------------------------------------------------------------------------------------------------------------------4

Create TPIT Employee Record---------------------------------------------------------------------------------------------------------4

Create TransferPrice User---------------------------------------------------------------------------------------------------------------4

Setup Profile Values----------------------------------------------------------------------------------------------------------------------5

Inventory Setups------------------------------------------------------------------------------------------------------------------------------7

Create the Intercompany Transaction Flow----------------------------------------------------------------------------------------7

Create the MOQITEM Item-------------------------------------------------------------------------------------------------------------9

Pricing Setup---------------------------------------------------------------------------------------------------------------------------------11

Create the Custom function in APPS schema-------------------------------------------------------------------------------------11

Setup the Pricing Transaction Entity------------------------------------------------------------------------------------------------12

Setup the Attribute Contexts and Attribute Linking----------------------------------------------------------------------------13

Create the Sales Price list--------------------------------------------------------------------------------------------------------------14

Create the Sales Modifier MOQ-----------------------------------------------------------------------------------------------------15

Create Intercompany Price Lists-----------------------------------------------------------------------------------------------------16

Create the Intercompany Pricing Modifier----------------------------------------------------------------------------------------17

Build Attribute Mappings--------------------------------------------------------------------------------------------------------------19

Purchasing Setup--------------------------------------------------------------------------------------------------------------------------- 21

Setup TPIT Employee as the Buyer--------------------------------------------------------------------------------------------------21

Setup the Pricing Transaction Entity------------------------------------------------------------------------------------------------22

Setup the Attribute Contexts and Attribute Linking----------------------------------------------------------------------------22

Sales and Purchasing Transaction------------------------------------------------------------------------------------------------------23

Create a Customer Sales Order------------------------------------------------------------------------------------------------------23

Import Requisition----------------------------------------------------------------------------------------------------------------------25

AutoCreate Requisition to PO--------------------------------------------------------------------------------------------------------26

Approve Purchase Order--------------------------------------------------------------------------------------------------------------28

Receive the Purchase Order----------------------------------------------------------------------------------------------------------31

Review Receiving Accounting--------------------------------------------------------------------------------------------------------32

Review the Logical PO Receipt and Shipment accounting in Purchasing Org--------------------------------------------33

Review the Physical Receipt Accounting in Receiving Org--------------------------------------------------------------------34


I/C AR--------------------------------------------------------------------------------------------------------------------------------------35

I/C AP---------------------------------------------------------------------------------------------------------------------------------------40


User Setup

Create TPIT Employee Record

Assign both the TPIT and the Transferprice user to the same employee record.

Create TransferPrice User


A user id is created to support the transfer price maintenance. Note the Responsibilities assigned to the user. The Only ones of value is Oracle Pricing Manager

Setup Profile Values

The QP: Pricing Transaction Entity profile option is setup to “Intercompany Transaction” for the Transferprice user

The “QP: Source System Code” profile option is set to “Oracle Inventory” for the transfer price user


Note the “MO: Security Profile” profile value for the “GB Commercial Distribution Super User” responsibility to allow access to GB Commercial and TPCL Commercial OU’s for Global Procurement

Note the “HR:Cross Business Group” profile value. This allows for Purchase Requisitions from one OU to be converted into Purchase Orders in another OU.

Note the “INV:Advanced Pricing for Intercompany Invoice” profile value. This allows I/C programs to use advanced pricing using modifiers and price lists.


Inventory Setups

Create the Intercompany Transaction Flow


Setup the Intercompany relationships like above


Create the MOQITEM Item

Copy the item attributes from any Ax item


Set the Assemble to Order attribute to ensure back to back order provision.

Setup the Inventory Item Category value as shown.


Pricing Setup

Create the Custom function in APPS schema/* Formatted on 6/14/2010 8:53:44 PM (QP5 v5.115.810.9015) */CREATE OR REPLACE FUNCTION APPS.GET_COVERED_LENGTH ( p_po_header_id IN NUMBER, p_PO_LINE_ID IN NUMBER) RETURN NUMBERIS l_covered_length NUMBER;

-- CURSOR ALL_PL IS SELECT oel.attribute18 FROM mtl_reservations mr, po_headers_all poh, po_lines_all pol, po_line_locations_all poll, oe_order_lines_all oel, per_people_f ppf, mtl_units_of_measure uom, mfg_lookups mlk, po_vendors pov, hr_operating_units ou WHERE poll.po_header_id = p_po_header_id AND poll.po_line_id = p_po_line_id AND mr.demand_source_type_id IN (8, 2) AND mr.demand_source_line_id = oel.line_id AND mr.supply_source_type_id = 1 AND mr.supply_source_header_id = poh.po_header_id AND mr.supply_source_line_id = poll.line_location_id AND poll.po_line_id = pol.po_line_id AND pol.unit_meas_lookup_code = uom.unit_of_measure AND poh.agent_id = ppf.person_id AND mlk.lookup_type = 'CTO_WB_SUPPLY_TYPE' AND mlk.lookup_code = 3 AND pov.vendor_id(+) = poh.vendor_id AND ou.organization_id = poh.org_id;BEGIN l_covered_length := NULL;

-- OPEN ALL_PL;

LOOP FETCH all_pl INTO l_covered_length;

EXIT WHEN all_pl%NOTFOUND; END LOOP;

RETURN l_covered_length;END;/


Setup the Pricing Transaction Entity

Disable the QP source system for Intercompany PTE

Setup the Attribute Contexts and Attribute Linking


Link the existing “MOQ attributes” under the PTE “Intercompany transaction” Context type “Pricing Contact”

Use the above attribute mapping for the System (Do not use) pricing attribute (pricing_attribute3) to get the value directly from the customer sales order.


Create the Sales Price list

Note the Item number include the MOQTEST item.

Note the PTE and the Source System Code for the sales Price list.


Create the Sales Modifier MOQ

Note the Item Category

Note the PTE and the Source System Code


Note the Price Break details

Create Intercompany Price Lists

Note the Items on the Intercompany Price Lists. (Ignore the Item Category ID item record)

Create the Price list using the Transfer Price User


Note the PTE and Source System Code

Create the Intercompany Pricing Modifier

Recreate the MOQ Modifier with the name changed, with the exact same setup as the Sales Modifier,

Create this using the Transferprice user.


Note the PTE and the source system code on the modifier

Note the Price break details is setups just like the sales entity modifier


Build Attribute Mappings

Check the log file to make sure the package is successfully compiled.


Run the Attribute Mapping Rules Error report to make sure all the new attributes used are included in the attribute mapping program.


Purchasing Setup

Setup TPIT Employee as the Buyer Setup the Approval Groups/Assignments


Setup the Pricing Transaction Entity

Disable the QP source system for Intercompany PTE

Setup the Attribute Contexts and Attribute Linking

Link the existing “MOQ attributes” under the

PTE Intercompany transaction


Context type Pricing Contact

Sales and Purchasing Transaction

Create a Customer Sales Order

Create a Sales Order using TPCL Commercial Distribution Super User Resp


Note the item and the line status. You may have to progress the order once the order is booked to create supply lines and Requisition lines.


Note the value in the Attribute 18 on the sales order line to support the MOQ modifier calculations.

Import Requisition

Note the Requisition OU is the same as the Sales Order OU. Note the Order source for Back to Back Order items.


Note the Imported requisition in TPCL Commercial for each line item quantity. Note the Purchasing org and the purchase Order numbers. Lines created using Auto Create function.

AutoCreate Requisition to PO

Search Requisition to Auto Create using the Purchasing super User Resp, Since it has access to both the GB Commercial and the TPCL Commercial OU’s.


Manually convert the requisition into PO. Select NTPC as the supplier.

Note the Purchasing Org is setup as the GB Commercial for the PR org as TPCL Commercial.


Approve Purchase Order

Note the OU, Item and Qty.

Note the Ship to Org on the shipment lines


Note the distributions and the Destination account descriptions. There is an error message that currently pop-up due to cross validation and security rules. Ignore them!


Note the Requesting Org and the Number in the PO Distribution details screen.

Approve the PO!


Receive the Purchase Order


Review Receiving Accounting


Review the Logical PO Receipt and Shipment accounting in Purchasing Org

Note t2C4 is an Inventory org for GB commercial OU. These are created automatically.

Review Distributions for these records. The distribution creation takes a while, since the cost processor runs every 20 mins. Only the distributions are created can you run the Create I/C AR program.


Review the Physical Receipt Accounting in Receiving Org

Note the Material distributions created for the item.


I/C AR

Run “Create I/C AR Report”


Get the I/C Sales rep id. The Standard I/c process only populates the AR interface table with Salesrep “No Sales Credit”. Need to manually update the sales rep in the Autoinvoice interface table.

Enable and compile the Line Transaction Flexfield for Global_procurement and GLOBAL_PROCUREMENT


After updating the salesrep id at the line and salescredits level. Run the Autoinvoice import program.Note the transaction source “Intercompany”.


Note the I/C AR invoice created in GB Commercial OU with the source Intercompany using the Intercompany relationship customer and site information.


Note the Line Item details including the Quantity and Unit Price calculation using the transfer price list “GB – TPCL transfer price” and the associated MOQ modifiers.

Note the unit price on the line 1 is USD 10, while on line 2 is USD 12.5 since the DFF attribute qty on line 1 is 39 which has no modifier attached to it (there should be a (lumpsum surcharge of 100USD automatically assigned to it) while the line 2 qty was 41 which means the price should be modified by 10 * 1.25 = 12.5USD.


The line contains the Global Procurement Purchase Order details for reference and reconciliation purposes.

I/C AP

Run the Create I/C AP Report from GB, after the I/C AR is created


Run the Payables Open Interface program with these parameters. This is only possible after the I/C AR invoice is successfully created in GB Commercial.

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A Guide to Global Procurement and Transfer Pricing Setups.10.06.14

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