Physicals

A typical application of Intra Company is where an ITAS Entity needs to operate Profit Centre tracking of P&L and the Buy and Sell departments for a Physicals allocation are different i.e. need to establish a transfer price. TRADE can be used to create an internal physical whereby there is no Thirdparty and the Department code is the only difference on the craeted Sale and Purchase trades. ITAS reporting allows the exclusion of these trades or explicit inclsuion of those trades. The ITAS processes for TRADE allocation i.e. marry Buy and Sell tonnages can also be configured to activate Internal TRADE creation. The transfer price can be a fixed price or the subject of F&O Pricing mechanism.

The completion of realised P&L is the process of Sales Invoicing. Complexities include the fulfillment of marking the associated TRADE tonnages as being Sales Invoiced/Title Transferred. The end Sale being Invoiced needs to mark its' Internal (allocated) Purchase, locate/split its' Internal Sale tonnage and possibly its' originating Purchase tonnage. Another complexity is that there does not need to be consistent tonnages across the chain. If the Sales Invoicing can not achieve a complete marking of the chain, messages are output to the user and an audit is created for the ITAS procedures INTINV and INTVIEW.  INTVIEW is used to complete Internal Invoicing

F&O

A typical application of Intra Company F&O is where an ITAS Entity operates a Jobbing/Speculative departmnet and needs to transfer trades to Hedging Dept. 

Internal trades, i.e. inter department, can be created in TERM (S01 configuration needed) and can be created when Physical trades need to use a Futures Hedge instrument to achieve Price transfer i.e. when allocating Buy and Sell physicals across Departments and the S01 configuration (ctrl30_allocdept) has been activated.

The procedure DEPT needs to be configured (F&O Client) to enable Hedge/Mirror trades to be setup in TRADE when auto-hedge is being applied.