SyteLine Intercompany Trading Setup Guide
Intercompany trading in SyteLine automates the sales and purchase order flow between legal entities within the same enterprise. When one entity sells to another, SyteLine can automatically generate the corresponding purchase order in the buying entity, apply transfer pricing rules, and create the intercompany accounting entries. Proper configuration eliminates manual data entry, ensures transfer pricing compliance, and streamlines month-end reconciliation.
Intercompany Trading Partner Configuration
The foundation of intercompany trading is the Trading Partner setup in the Intercompany Trading Partners form. Each entity pair requires a trading partner record defining the selling entity, buying entity, and the intercompany customer and vendor accounts used for transaction processing. The customer record in the selling entity must be flagged as intercompany and linked to the corresponding vendor record in the buying entity. SyteLine uses these links to auto-generate the mirror transaction in the counterparty entity.
- Create intercompany customer records in the selling entity linked to the buying entity code
- Create corresponding intercompany vendor records in the buying entity linked to the selling entity code
- Configure the Trading Partners form with entity pairs and their intercompany customer-vendor mappings
- Set default warehouse, shipping method, and payment terms for each intercompany trading relationship
- Enable auto-PO generation flag to automatically create purchase orders when intercompany sales orders are entered
Transfer Pricing and Intercompany Pricing Rules
Transfer pricing controls the price at which goods and services move between entities. SyteLine supports multiple transfer pricing methods through the intercompany pricing configuration: cost-plus margin, market price, negotiated price, or a custom formula. The transfer price is applied when the intercompany sales order is created and flows through to the corresponding purchase order in the buying entity. For multinational organizations, transfer pricing must comply with OECD guidelines and local tax authority regulations.
- Configure transfer pricing rules per item, item group, or trading partner pair in the Intercompany Pricing form
- Support cost-plus pricing using the item standard cost plus a configurable markup percentage
- Apply market-based pricing using the standard customer price list assigned to the intercompany customer
- Override transfer prices at the order line level for special situations with approval workflow enforcement
- Generate transfer pricing documentation reports for tax compliance and audit support
Intercompany Order Processing Workflow
The end-to-end intercompany trading workflow begins with a sales order in the selling entity and concludes with receipt and invoice matching in the buying entity. When a sales order is entered against an intercompany customer, SyteLine auto-generates a purchase order in the buying entity. Shipment confirmation in the selling entity triggers receipt processing in the buying entity. Invoice generation in the selling entity creates the corresponding AP voucher in the buying entity, and both sides generate the intercompany accounting entries for reconciliation.
- Sales order entry against intercompany customer auto-creates PO in buying entity with matched line items
- Shipment confirmation in selling entity triggers automatic receipt notification in buying entity
- Invoice generation creates paired AR invoice and AP voucher with intercompany account references
- Month-end reconciliation uses the Intercompany Reconciliation report to identify unmatched transactions
- Configure exception handling for quantity mismatches, price variances, and partial shipments between entities
Automate your intercompany trading workflows in SyteLine. Netray can help configure end-to-end intercompany order processing and transfer pricing rules.
Related Resources
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Set up multi-company financial configuration in Infor SyteLine including separate chart of accounts, intercompany journals, and consolidated financial reporting.
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Infor SyteLineSyteLine Multi-Company Setup and Administration
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