4. Background Intercompany Billing Concepts Evolution of IC Billing Capabilities in AX IC Set-up and Rules Demo Extending IC Billing Solution Demo Q&A

5. Microsoft Confidential

6. 6

7. 7 Costs are transferred automatically to the CLE No taxes are calculated on transfer No auditable documents are generated Limited transfer pricing model (only fixed supported) RLE recognizes revenue before CLE accepts the costs

8. Microsoft Confidential

10. 10 Costs are transferred to the CLE only after accepting the IC invoice Taxes are correctly calculated Auditable documents are generated More flexible pricing model (adding cost plus) Can now WIP revenue in the RLE RLE recognizes revenue only when CLE recognizes the costs

12. Microsoft Confidential