Intercompany Billing

[Former Member]

Hi All,

How is the intercompany billing is settled in the books of accounts of the orrdering company code?

For Ex: Plant B belonging to the Company code B supplies material to the End customer and sends an Intercompany invoice IV-1 to the sales organization A belonging to the company code A which is the Ordering company code.The ordering company code then inturn bills the end customer and receives the payment.But how is the intercompany invoice IV-1 is settled? Will there be a debit note or stock adjustments?

Regards,

Raghav

[Former Member]

Hi there,

If both plants A & B are setup in different company codes, then the accounts are managed independently. When Plant B raises an intercompany invoice to plant A, it will inturn make the payment to B which will post into B accounts.

Trade invoice that the Plant A raises to the customer is not related to plant B. Trade invoice is managed independently in company code as Plant A. Customer payment made by customer is posted into the A/c'g of plant company code. In either case invoice verification is done before making the payment.

Regards,

Sivanand

[Former Member]

a will do the invoice verification and make payment to b, that's it.