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Introduction

Ingold Intercompany Integration is a powerful solution designed to streamline and automate processes between different business entities within a corporate group, especially when these entities are using SAP Business One as their ERP (Enterprise Resource Planning) system. This solution is particularly beneficial for organizations with multiple subsidiaries, branches, or business units that need to coordinate operations and share data effectively.

Intercompany Features

SAP Intercompany Integration refers to the set of tools and processes used to manage and synchronize data and transactions between different legal entities or units within the same organization that use SAP systems. In a large organization, different branches or departments might operate as separate entities but need to interact and transact with each other. SAP Intercompany Integration is designed to streamline and automate these interactions.

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Intercompany Feature List

Item Master Syncronisation
(SAP B1 << B1if >> SAP B1)

Creation and Update of Items in One database updates items in other SAP B1 Database.

Purchase Order to Sales Order(Draft)
(SAP B1 << B1if >> SAP B1)

Creation of Purchase Order in One SAP B1 Database creates Draft Sales Order on other SAP B1 Database.

Delivery to Good Receipt PO (Draft)
(SAP B1 << B1if >> SAP B1)

Creation of Delivery in One SAP B1 Database creates Draft Goods Receipt PO on other SAP B1 Database.

AR Invoice to AP Invoice(Draft)
(SAP B1 << B1if >> SAP B1)

Creation of AR Invoice in One SAP B1 Database creates Draft AP Invoice on other SAP B1 Database.

Intercompany Monitoring
(SAP B1 << B1if >> SAP B1)

Monitoring the Intercompany syncronisation process.

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Integration Endpoints

Item Master Data

In SAP Business One, the Ingold Intercompany Integration solution facilitates the synchronization of item master data across different company databases. This is particularly useful for businesses operating with multiple branches or subsidiaries. The properties synchronized typically include key details that are essential for ensuring consistency in inventory, sales, and purchasing processes across the business entities. Here are some of the common properties that are synchronized:

Item Code

The unique identifier for each item.

Item Name

The descriptive name of the item.

Foreign Name

The Name of item in other language.

Item Group

The classification or category to which the item belongs.

Item Type

Specifies whether the item is a product, service, or another type.

Unit of Measure

The standard unit in which the item is sold, purchased, or stored.

Pricing

Information related to the item's selling and purchasing prices.

Weight and Dimensions

Physical characteristics of the item, such as weight, volume, and dimensions.

Inventory Data

This includes information like default warehouse, inventory valuation method, and inventory levels.

Manufacturer

Details about the item's manufacturer.

Supplier Catalog No

The catalog number provided by the supplier for the item.

Default Vendor

The preferred vendor or supplier for purchasing the item.

Item Properties

All 64 Item Properties can be synchronised from one SAP Business One Database to another SAP Business One database.

Barcodes

Barcode information for the item.

Sales and Purchasing Information

Details related to how the item is managed in sales and purchasing processes.

Custom Fields

Any additional fields that have been customized to meet specific business requirements User Defined fields(UDF’s) that are created can be synchronized from one SAP Business One database to another database.

It's important to note that the specific properties synchronized can vary based on the business's configuration of SAP Business One and the Intercompany Integration solution. The synchronization helps ensure that all relevant branches or subsidiaries of the business are operating with consistent and up-to-date information about their items, which is crucial for effective inventory management, procurement, and sales processes.

Document Exchange Cycle

PO to Draft SO

In SAP Business One, using the Ingold Intercompany Integration solution, you can streamline operations across multiple business units or subsidiaries by converting purchase orders in one company database to draft sales orders in another. This feature is particularly useful for organizations that frequently transact between their own branches or subsidiaries. Here's an overview of the process for converting a Purchase Order to a Draft Sales Order using SAP Business One's Intercompany Integration:

1. Initiating the Purchase Order

In the purchasing company (Subscridary Company), a Purchase Order is created. This Purchase Order is directed towards the selling company (Head office Company) within the same organization but in a different company database.

2. Intercompany Transaction

The Intercompany Integration solution recognizes this transaction as an intercompany transaction. It automatically replicates and transfers the Purchase Order details from Branch Company database to Head office Company database.

3. Creation of Draft Sales Order

In Head office Company database, the information from the Purchase Order is used to create a corresponding Draft Sales Order. This Draft Sales Order contains all the relevant details from the original Purchase Order, such as item codes, quantities, prices, and delivery dates.

4. Sales Order Processing

The Sales Order in Head Office Company is then processed in the usual manner, leading to the delivery of goods or services to Branch Company.

5. Synchronization and Updates

Throughout the process, data is synchronized between the two company databases to ensure accuracy and consistency. Any updates or changes made in the sales or purchase order on either side can be reflected in the corresponding document in the other company's database.

6. Document Flow and Traceability

SAP Business One allows for complete traceability of intercompany transactions. Users can track the document flow from the Purchase Order in Branch Company to the Draft Sales Order and subsequent Sales Order in Head Office Company.

7. Integration and Automation

The process is largely automated, reducing the need for manual data entry and minimizing the risk of errors. It ensures efficient and consistent transaction processing between the interconnected companies.

8. Compliance and Reporting

The system ensures that all intercompany transactions comply with internal policies and external regulations. Reporting is streamlined, providing clear visibility into intercompany transactions. This feature of SAP Business One's Intercompany Integration solution greatly enhances operational efficiency for businesses with multiple subsidiaries or branches, ensuring that intercompany transactions are handled smoothly and accurately.

Delivery to Draft GRPO

In SAP Business One with the Intercompany Integration solution, the process of converting a Delivery from one company database to a Draft Goods Receipt PO (GRPO) in another is a key functionality. This process is especially beneficial for businesses operating with multiple branches or subsidiaries, ensuring a streamlined and automated flow of goods and corresponding documents between them. Here's a step-by-step overview of how a Delivery is converted to a Draft GRPO:

Initiating the Delivery

In the selling company (Head Office Company), a Delivery document is created based on a Sales Order. This is typically done after a Sales Order from the purchasing company (Branch Company) has been fulfilled. The Delivery document includes details like item codes, quantities, shipping details, and delivery dates.

Intercompany Transaction Recognition

The Intercompany Integration solution identifies this Delivery as part of an intercompany transaction. It automatically replicates and transfers the Delivery details from Head Office database to Branch Company database.

Creation of Draft GRPO

In Branch Company database, the information from the Delivery is used to create a corresponding Draft Goods Receipt PO. This Draft GRPO mirrors the Delivery details from Head Office Company, ensuring that the received goods are accurately recorded.

Review and Modification

The Draft GRPO in Branch Company can be reviewed and modified if necessary to reflect any discrepancies or additional details not captured in the original Delivery. Modifications could include adjustments in quantities received, condition of goods, or additional charges incurred during shipping.

Finalizing the GRPO

Once the Draft GRPO is reviewed and confirmed, it can be converted into a final Goods Receipt PO. This finalizes the receipt of goods in Branch Company inventory system.

Synchronization and Data Accuracy

The data is continuously synchronized between Branch Company and Head Office Company databases, maintaining accuracy and consistency. Any updates or changes made to the delivery or GRPO are reflected in the corresponding document in the other company’s database.

Document Flow and Traceability

The entire process, from the creation of the Delivery in Head Office Company to the Goods Receipt in Branch Company, is tracked and recorded. This traceability is crucial for auditing, compliance, and managing intercompany transactions effectively.

Automated Processing and Efficiency

The automation of this process minimizes manual data entry, reduces errors, and saves time. It ensures a smooth and efficient transfer of goods and information between the interconnected companies.

Compliance and Reporting

The process ensures that all transactions comply with internal control policies and external regulations. It also simplifies reporting and analysis of intercompany transactions. By automating the conversion of Deliveries to Draft GRPOs, SAP Business One's Intercompany Integration solution significantly enhances operational efficiency for businesses with multiple entities, ensuring a seamless and accurate process for handling intercompany stock transfers.

AR to draft AP

In SAP Business One, when using the Intercompany Integration solution, the process of converting an Accounts Receivable (AR) Invoice in one company database to a Draft Accounts Payable (AP) Invoice in another is a crucial functionality. This process is particularly valuable for businesses with multiple branches or subsidiaries, as it ensures seamless financial transactions and accounting entries between the entities. Here's how the AR Invoice to Draft AP Invoice creation works:

Creation of AR Invoice

In the selling company (Head Office Company), an AR Invoice is generated. This invoice is typically raised after a sale is made to a purchasing company (Branch Company) within the same organization but operating under a different company database. The AR Invoice includes details like product or service descriptions, quantities, prices, and total amount due.

Intercompany Transaction Recognition

The Intercompany Integration solution identifies this AR Invoice as part of an intercompany transaction. It then automatically replicates and transfers the AR Invoice details from Head Office Company’s database to Branch Company’s database.

Draft AP Invoice Creation

In Branch Company’s database, a corresponding Draft AP Invoice is created using the details from the AR Invoice. This Draft AP Invoice mirrors the details of the AR Invoice from Head Office Company, ensuring that the purchasing entity accurately records the liability.

Review and Adjustment

The Draft AP Invoice in Branch Company can be reviewed and adjusted if necessary. Adjustments might be needed if there are discrepancies, additional charges, or specific interHead Office Companygreements that need to be reflected.

Finalizing the AP Invoice

Once the Draft AP Invoice is reviewed and confirmed in Branch Company, it can be converted into a final AP Invoice. This finalizes the financial transaction and records the liability in Branch Company’s accounting system.

Synchronization and Data Consistency

The data is continuously synchronized between the databases of Head Office Company and Branch Company, ensuring consistency and accuracy. Any updates or changes made in either the AR Invoice or the AP Invoice are reflected in the corresponding document in the other company’s database.

Document Flow and Audit Trail

The entire process, from the creation of the AR Invoice in Head Office Company to the creation of the AP Invoice in Branch Company, is recorded. This provides a clear audit trail and is important for internal controls and compliance purposes.

Automation and Efficiency

The automation of this process reduces manual data entry, minimizes errors, and increases efficiency. It ensures accurate and timely recording of intercompany financial transactions.

Compliance and Reporting

The process supports compliance with internal policies and external regulatory requirements. It simplifies the consolidation of financial statements and reporting for the entire organization. By converting AR Invoices to Draft AP Invoices automatically, SAP Business One's Intercompany Integration solution facilitates efficient and accurate financial management across different branches or subsidiaries, ensuring that interBranch Companyilling is handled seamlessly.

Intercompany Monitoring

In SAP Business One with the Intercompany Integration solution, the Intercompany Monitoring feature plays a vital role in overseeing and managing both Intercompany transactions and Item Master Data synchronization. This tool is designed to ensure that data across the connected companies is consistent, accurate, and up to date. Here are some key aspects of Intercompany Monitoring in this context:

1. Monitoring Intercompany Transactions

Intercompany Monitoring allows you to track the status of various intercompany transactions like AR Invoices, AP Invoices, Purchase Orders, Sales Orders, Deliveries, Goods Receipt POs, and more. It provides visibility into the lifecycle of each transaction, from initiation to completion, across different company databases.

2. Synchronization of Item Master Data

The tool also monitors the synchronization of Item Master Data across different companies. This includes details such as item descriptions, pricing, unit of measure, and other key attributes. It ensures that any changes made to Item Master Data in one company are accurately and promptly reflected in the other connected companies.

3. Error Handling and Alerts

Intercompany Monitoring can identify and alert users about synchronization issues or errors in intercompany transactions. This helps in prompt resolution of discrepancies or issues, maintaining the integrity of data across the business network.

4. Reporting and Analysis

The monitoring tool provides reports and analysis tools to review the flow of intercompany transactions and the status of data synchronization. This is crucial for auditing, compliance, and making informed business decisions.

5. Data Consistency and Validation

Regular checks and validations are performed to ensure data consistency across the interconnected databases. This includes verifying that transactional data matches in corresponding documents between the companies.

6. User Notifications and Workflow Management

Users can receive notifications about pending actions, required approvals, or any issues that need attention. It aids in managing the workflow of intercompany processes efficiently.

7. Customization and Configuration

Intercompany Monitoring can be configured and customized based on specific business requirements, such as setting up specific synchronization intervals or defining alert conditions.

8. Integration with Core Processes

The tool is integrated with the core processes of SAP Business One, ensuring that intercompany activities are aligned with overall business operations.

9. Enhanced Collaboration

By providing a transparent view of intercompany transactions and data synchronization, it enhances collaboration and coordination among different entities within the organization.

10. Scalability and Adaptability

The monitoring system is scalable and adaptable to accommodate the growth of the business and changes in the organizational structure.

In summary, Intercompany Monitoring in SAP Business One is a comprehensive tool that ensures the smooth functioning of intercompany transactions and the synchronization of item master data, thereby playing a critical role in maintaining data integrity and efficiency in a multi-company environment.

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