Hi 

Have managed to find a solution to this issue?

Regards Brian

Hi, 

In a multi company example, I have used traditional IFS functionality as this would be a buy sell type arrangement. 

The key to making the process work is to use the costing functionality to perform the ICM (Intercompany mark up) and have that as part of the inventory value.    You can optionally use what I would call the supplier specific delivery overhead. In doing this when you buy parts from supplier X (company 1) you then report an ICM (10% for example) on those transactions.  This is part of the inventory value and can be booked to a different account.  That value is then released at COGS or part usage.  

Similarly on the sales side, you would make sure the ICM value would also flow to a different account. 

Best regards. 

Not really. I was able to set up cost buckets to isolate the intercompany markup and use that to map to specific accounts which I could eliminate in the consolidation process, but a portion of this was still manual, specifically the split between inventory and cost of sales.

Hi,

Did you try using the posting cost groups and the cost details to drive the cost buckets to different accounts?    The entire process should work, it has worked for a number of clients - dated back to IFS 2004 version. 

Yes, that part works fine but when I try to eliminate the markup on the buyer’s side, I could not find a way to automate the removal from inventory or cost of sales, depending on if that item was sold or remained in inventory at the end of the period. I can eliminate from one and can generate a report to identify items remaining in inventory.  It should be noted that this client did not have a consistent markup % or that could be easily automated.

Hi

In our example the selling company have there cost buckets on the inventory parts split in a number of different Cost Buckets (200 Labour, 300 Machine …..) . The buying company will receive the parts with one Cost Bucket (110 or 140), being the full cost of the internal purchase. Are there a way, where we can devide the cost at the buying company, to inheritage Material cost from the selling company and a cost bucket showing Internal markup? Then we can post accordingly, by using Posting Groups? Can you explain more specifically how this is done? 

Best regards

Hi, 

On the receiving company, you would have a cost bucket for the ICM, intercompany mark up.   That bucket would use the delivery overhead concept.  That delivery overhead could be just a standard rate or a rate used only for that supplier.   

In part cost details area of IFS, you need to establish posting cost groups, then connect the posting cost groups to the buckets.   Then posting control you would drive the account based on the posting cost group. This would be control type C90 or C91 (but use the posting cost group control type. 

Do this in TEST as you can do harm (many posting errors), if not set up correctly.  

Best regards

Thanks for the answer. So it is not possible to devide the stock value in the receiving company by the actual value from the sending company and the mark up? 

Best Regards