Steps: Create Intercompany Contracts

Intercompany contracts document the details of business relationships between legal entities of global organizations. These contracts offer different transaction rates for worker time and expenses, and supplier invoices between the companies under negotiated transfer pricing. You can invoice these transactions separately through direct intercompany invoices.

Maintain Companies as Customers or Suppliers.

Set up the customer and supplier relationships between your companies.

Create Transfer Pricing Rate Sheets.

Create standard or custom rate rules for your intercompany project workers to apply to the intercompany contract.

Access the

Create Intercompany Contract

task.

Set up an evergreen 1-way contract between your companies.

Select any accepted currency of the customer on the intercompany contract.

You can change the intercompany contract currency until you create either an:

Intercompany Billing Schedule. When you have an intercompany billing schedule and need to change your currency, cancel your billing schedule. Change your currency, then recreate your billing schedule.

Invoice for the contract. Once you've created an invoice for your intercompany contract, you can't change the currency.

Configure the Intercompany Customer Contract Event
business process and security policy in the Projects functional area.

Access the

Create Billing Schedule for Intercompany Contract

task.

Create your schedule for intercompany contract billing.

Security: Process: Transfer Pricing
domain in the Projects functional area.

Review Intercompany Billable Transactions.

Update and approve the transaction associated with this intercompany contract.

Access the

Create Intercompany Invoices for Intercompany Transactions

task.

Create a direct intercompany invoice.

Security: Process: Intercompany Contract
domain in the Customer Contracts and Project Billing functional areas.

Concept: Intercompany Transactions