Multi-organization Structure and Intercompany Basics
Separate legal entity, company, business unit, factory and inventory organisation to avoid rework.
Learning objective
Design an organisation model aligned with management and statutory boundaries.
03
Steps
01Map legal entities, companies, factories, warehouses, profit centres and shared functions.
02Define which organisations may purchase, sell, manufacture, hold inventory and account.
03Configure inter-organisation supply, settlement, pricing and document flows.
04Test intercompany procurement, transfer, sales and production end to end.
05Validate access, accounting, tax boundaries and consolidation.
- 01
Map legal entities, companies, factories, warehouses, profit centres and shared functions.
- 02
Define which organisations may purchase, sell, manufacture, hold inventory and account.
- 03
Configure inter-organisation supply, settlement, pricing and document flows.
- 04
Test intercompany procurement, transfer, sales and production end to end.
- 05
Validate access, accounting, tax boundaries and consolidation.
04
Implementation notes
- An organisation is not simply a copied company name.
- Over-segmentation increases master-data and closing complexity.
- Freeze the model during blueprinting.