intercompany

[Former Member]

HI,

What is the difference business process between Intercompany Sales & Third party sales.

Thanks,

Rajesh.

[Former Member · Accepted solution]

intercompany Definition:

A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group.

To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B.

It is imperative that both Plants A & B should have the material. In other words, the material is created for both the Plants A & B + their respective storage locations.

Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code.

Sales organizations and plants assigned to each other need not belong to the same company code.

In other terms, a plant belonging to Company code A & assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company sales.

In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor.

In this scenario, the vendor sends a shipping notification. After that a statistical goods receipt is posted. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document can only be created after entering the invoice from the vendor.

Process Flow

This scenario consists of the following steps:

A Third-Party Sales Order is created and a purchase requisition is generated automatically

A list of purchase requisitions to be assigned is displayed

The assigned purchase requisitions are converted into purchase orders

The purchase orders are approved

A statistical goods receipt is posted

The vendor invoice is verified and posted

The billing is created

Key Points

Reduce stock and costs, increase efficiency

Handover of customer requirements directly to external supplier

Invoice from trader to customer based on quantities from supplier invoice

Fulfillment of customer requirements despite material shortage

for configuration check the link

http://help.sap.com/bp_blv1600/V5600/BBLibrary/Documentation/107_BB_ConfigGuide_EN_IN.doc

[Former Member]

Hi

Let us take an example to understand intercompany sales better. Suppose there are two company codes namely 1000 and 2000. A customer may place an order for goods in sales organization belonging to company code 3000. However, the goods may be manufactured by a delivering plant belonging the company code 1000. A sales order is created indicating delivering plant of company code 1000. The sales organization then invoices the customer for the materials purchased. SAP R/3 automatically creates an intercompany billing document at the same time as the customeru2019s billing document is created. This intercompany invoice is sent from the delivering plant to the selling sales organization.

While third party sale is between the client and the vendor. Where the goods are sold to the vendor as a customer. The ownership of the goods lies with client.

Regards

Saurabh

[Former Member]

Dear Rajesh,

Refer link:

Best Regards,

Amit

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