Search Results mtl_intercompany_parameters

The MTL_INTERCOMPANY_PARAMETERS table in Oracle E-Business Suite (EBS) 12.1.1 and 12.2.2 serves as a critical repository for configuring intercompany transaction parameters within the Inventory and Order Management modules. This table stores organizational-level settings that govern how transactions between different legal entities or operating units are processed, ensuring compliance with accounting, tax, and business rules. Below is a detailed exploration of its structure, purpose, and functional significance.

Table Overview

MTL_INTERCOMPANY_PARAMETERS is part of Oracle Inventory’s data model and is primarily used to define default values and rules for intercompany transfers, sales orders, and procurements. It acts as a bridge between trading partners within an enterprise, facilitating seamless data flow while maintaining financial and operational integrity.

Key Columns and Their Significance

• ORGANIZATION_ID: Links to HR_ORGANIZATION_UNITS, identifying the inventory organization for which parameters are defined.
• INTERCOMPANY_INV_ORG_ID: Specifies the default inventory organization for intercompany transactions.
• INTERCOMPANY_COGS_ACCOUNT: Stores the default Cost of Goods Sold (COGS) account for intercompany transfers.
• DEFAULT_CURRENCY_CODE: Defines the currency used in intercompany transactions if not explicitly specified.
• TRANSFER_PRICE_TYPE: Determines the pricing method (e.g., cost-based, fixed markup) for intercompany transfers.
• INTERCOMPANY_SALES_ORDER_TYPE: References OE_TRANSACTION_TYPES to set the default sales order type for intercompany sales.
• AUTOMATIC_ORDER_CREATION_FLAG: Controls whether sales orders are auto-generated during intercompany transfers.

Functional Role in Oracle EBS

The table’s configurations directly impact processes such as:

• Intercompany Transfers: Defines sourcing rules, transfer pricing, and inventory movement between entities.
• Order Management: Automates sales order creation for cross-entity transactions when enabled.
• Financial Integration: Ensures proper GL account mapping (e.g., COGS, revenue) for intercompany postings.

Integration with Other Modules

MTL_INTERCOMPANY_PARAMETERS integrates with:

• General Ledger (GL): Via account mappings for COGS and revenue recognition.
• Order Management (OM): Through default order types and auto-order creation.
• Accounts Receivable (AR): For invoicing and settlement rules.

Implementation Considerations

For successful deployment:

• Ensure ORGANIZATION_ID aligns with the enterprise’s legal entity structure.
• Define transfer pricing rules to comply with tax regulations (e.g., arm’s length principles).
• Validate default accounts and currencies to prevent posting errors.

Example Use Case

A multinational corporation with entities in the US and UK configures MTL_INTERCOMPANY_PARAMETERS to:

• Set the UK entity as the default intercompany supplier for the US.
• Apply a 10% markup on transfer prices.
• Auto-generate sales orders in GBP for UK-bound transfers.

Conclusion

The MTL_INTERCOMPANY_PARAMETERS table is a cornerstone of Oracle EBS’s intercompany functionality, enabling standardized, auditable, and automated transactions across entities. Proper configuration ensures operational efficiency, regulatory compliance, and accurate financial reporting. Its integration with Inventory, OM, and GL underscores its role as a linchpin in multi-organization deployments.