Sage X3 Tips and Tricks: How to Set-up Intercompany Transactions in Sage X3

Intercompany Transactions Set-up - Sage X3 Tips and Tricks 

Our team of Sage X3 consultants get a lot of support questions from our Sage X3 customers. Some include everyday common "How do I" questions and others involve solving for more complex business process and workflow challenges. Since Sage X3 has such robust functionality, we wanted to share a few tips that you can do yourself to automate and streamline everyday business process to help you save time and increase productivity. 

We hope these Sage X3 tips and tricks help you get the most out of your Sage X3 investment. We encourage ongoing Sage X3 training and Sage X3 support because most users do not learn how to take full advantage of the functionality of Sage X3.  One common thing that users often misunderstood is that customers can take take advantage of modifying the software without knowing how to write code.

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Question:  One of our customers placed a purchase order (PO) for items that we don’t keep in inventory at our current location. We do carry the inventory at another location.  How is this handled in Sage X3?  In our old system, this was an intercompany transaction and it took many transactions to get the goods delivered to our warehouse and, ultimately, to our customer.

Answer:  Luckily, setting up intercompany transactions in Sage X3 is easy. First, you need to create the customer PO, then create a PO to your other warehouse to request the goods from that location. Then, they need to create their own sales order (SO) to pick, pack, and ship the required good(s).

Without entering the corresponding customer PO number on all documents, you will lose traceability and not know how each transaction ties together. In some instances, you may receive these parts and not know why or who was meant to receive them.

With Sage X3, however, creating these transactions (PO to the warehouse and SO to pick, pack, and ship) is as simple as clicking one button on the customer PO.

How to Set up Intercompany Transactions - Sage X3 Tips and Tricks 

STEP 1

To create this environment, you will need to set up the intercompany transactions in the intercompany function.

STEP 2
Then, you need to create the warehouse providing the goods as a vendor and your own site as a customer. Finally, make sure that the primary supplier for this part is the supplier you created previously.

This is the vendor:

The highlighted fields in the bottom left corner of the above screenshot are to specify which site is related to the supplier code you created; it's good practice to make the supplier code and the site code the same for clarity purposes.

This is the customer:

This is the ship-to address for this customer:



Note that the shipment site where you ship the goods from is the supplier site you previously configured.

This is the part number with its vendor:


STEP 4

Make sure there's associated pricing for the PO, or it won't be created successfully.

STEP 5

First, enter the customer PO.

The trick is to make sure that we won’t be pulling our inventory from stock but rather generating a PO for it and transitioning it to our warehouse first.

On the SO line, there's a field called “Source for delivery” that manages this behavior. Instead of stock, we'll use PO – receive and ship. Literally, we'll first receive the goods into our warehouse and ship them to our customer: receive and ship.

STEP 6

Make sure you don't default quantity to allocate at the line level. If you do, the system will assume you want to pull from stock.

STEP 7

The only thing left to do at this point is to hit the back-to-back button in the right panel of the SO.



After hitting the back to back button, a log should display with the different transactions that were created.



This log tells us that from SONNA0110096, we generated PONA0110066.

Because of the way X3 is designed, the PO that was automatically generated also created a corresponding SO in the supplying site; that way, the other warehouse can pick, pack, and ship based on a document that is tied to the PO.

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The line of our original customer PO now shows the PO that was generated by pushing the back-to-back PO. If we drill down to our PO from this screen, we can take a look at the PO that was generated. Drilling down is as easy as clicking on the action button of the line and clicking on the PO number.

This is the first tab of the PO:

And this is the line that was generated:



Notice the SO number this PO is tied to. The one at the top right represents the original customer PO that generated this PO. The one at the bottom represents the SO that was generated in our warehouse, so they can pick, pack, and ship against it.

Then let’s take a look at the SO that was automatically created for the warehouse.



Notice that the SO will be shipped from NA012, as specified during all our configurations.

Hopefully, this blog post will help alleviate some of the pains associated with entering all these POs and SOs manually. If you have any questions about the process of setting up intercompany transactions, please contact us so we can help.

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About Southeast Computer Solutions

Southeast Computer Solutions is based in Miami, Florida and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care.

Learn more by visiting our website or calling 305-556-4697.

Another version of this blog was posted on Southeast Computer Solutions' Blog by Benjamin Partout on November 16. 2017 - Setting Up Intercompany Transactions in Sage X3