The Inter-company sales generation process adds accurate royalty expenses (to be paid to the author later) into the inter-company cost by selecting the IC price from the cost and royalty.
The Royalty cost calculator process (RYO052) calculates the royalty cost by order line i.e. no rising royalty. Rising royalties and offsets are not taken into consideration nor are anything that is targeted or returns that activate different rates. In the case of systems or packs it will accumulate all detail lines. This is set up in TMSRY/RYO052.
The process is to calculate the royalty component in the Company A sale which will be added to the print cost currently stored in the Company B inventory to derive the “Company A cost of sale”. The “inter-company price list” is not used as this cost is calculated “on the fly”. The stock is then receipted into Company A warehouse (logical) and sold to the customer to complete the transaction.
The “margin” made on the Company B sale to Company A (inter-company) is offset against the royalty payable to the author and any differences will be borne by Company B. The GL interface identifies these for correct accounting.
TMSDS/ICS-DFT determines how to calculate the cost of ICS.
1=Inter-company price list (default)
2=Cost in from-wh + Royalty
3=Cost in from-wh
If set to 3=Cost in from-wh, then the system will use the exact original cost for inter-company invoice price.
When calling RYO052 to calculate royalty a base currency for ICS is used to return royalty amount in the currency. TMSDS/ICS-RTYP nominates an exchange rate type to be used when converting amount in the inter company sales processing.
Whether order qty or dlv qty is used depends on TMSRY/RY-BMVT.
