Hi,
Scenario, - Two Company codes operating under one holding company within the FMCG Sales and Marketing.
Company A manages all sales, distribution promotions & invoicing, while Company B (the Brand owner) manages production & marketing.
The trading agreement between these 2 companies is a consignment model, i.e. transferred from Company B to Company A @ Zero price, once sold Company A returns 100% of revenue to Company B and recieves a % commission in return for their services.
Two scenarios
1 - STO replen PO -> Outb GI (Comapny B) -> Inb GRN (Comapny A) -> IV (Company B @Zero Price)
2 - Cust. Sales Order -> Outb GI (Company B) -> Cust Invoice (Company A) -> IV (Company B @Zero Price)
Issues
A. How can Company B accrue the revenue from Company A's sale into their accounts?
- COS are posted at point of goods issue and transferred to COPA through intercompany invoice
- Revenue & Commission currently journalled as AR-COPA journal at month end
B. How can Company B accrue Retro promotional spend from Company A's sale into their account?
- All promotional spend (retrospective Rebates) are settled to customer by Company A but recharged to Company B
- Company B currently accrue this at month end
Thanks