Inter Company Sales

[Former Member]

Hi,

Under two company codes I have two different sales orgs. Sales org 1 sells products to Sales org2.

In this process what are the advantages I have by treating this as a Inter company sales. process, I can treat the other entity as a normal customer. If I treat it as a normal customer I can do the normal sales process why would I consider inter company sales process.

Since both company codes fall under one company group, I can give some subsidary price for the materials if Sales org 1 sell to Sales org2. This can can be achieved by condition master.

I want to know what advantages does cross comapny sales offer over normal sales process where Sales Org 2 is a customer to Sales Org 1.

I am trying to understand why not to consider Sales org2 as a reggular customer and sell products. What advantages do I have if I opt for cross company sales process.

Thanks in advance.

[reazuddin_md · Accepted solution]

Any business transaction occurs between in Company codes, will be treated as Intercompany Stock Transfer.

By this process, you can track the movement of goods like: once goods is issued wrt:STO from supplying plant liablity will be transferred to the receiving plant & stock shows as "Stock in transit" , once receiving plant perform MIGO-, then stock type will get updated.

After Intercompany billing, accounts get posted accordingly. for Supplying Company its treated as revenue & for other Co.Code booked under expense.

You will have transaparency, how much goods have been issued & how much is in transit. This monitoring isnt available in regular sales process.

[Former Member · Accepted solution]

Thanks for your reply.

By treating the Sales org2 as a normal customer, can't we generate those details with the help of any customized report.

Yet, I haven't got the clear idea why should not treat sales org2 as a normal customer and handle general sales process.

Appreciated if you could share more thoughts on this.

Thanks.

[reazuddin_md · Accepted solution]

Yeah,

Obiviously,

you can run through normal sales also. To show the stock you need to develop Zreports- with the required data as needed by the Client.

it has same difference,

Between Std sales process & STO process.

Plant to Plant transactions, you can either follow the sales process OR STO process. Both has its own advantages in terms of reporting & inventory monitoring.

[Former Member]

The objective to adopt business process as Intercompany Scenario is during financial consolidation the entries of group companies can be eliminated, which is generally a requirement from Finance.

To identify such entries we maintain Trading partner field in customer and vendor master.

Your thought process is well appreciated, but during designing, we will require to consider the possibility of Group company having consolidation functionality, in which such configuration will serve the purpose.

Regards,

Rajesh Banka