Help with Inter company/ third party

[Former Member]

Hi Guys

Can some of you guys can help me

Here is the situation

Plant A belongs to Company code A

Plant B belongs to company code B

External customer

Plant A got the order from External Customer.

So plant A created a PO to Plant B to Supply the goods directly to External Customer.

Plants A invoices the External Customer onces he receives the goods

But the client i am working doesn't want Plant B to invoice the Plant A.- Now How can we close the FI books for this scenario

Please suggest the best way to handle this situation

Thanks

Amar

[Former Member · Accepted solution]

HI

Are both these company codes in the same clent i mean if they are then thay may share the same chart of accounts, according to your scenario if plant A is going to make a PO then he has got to clear that either by receiving a invoice or a GR. in your case the materials are to be received by the external customer, so in FI for plant A there will be a in balance resulting in the accountind document not generated if plant B does not invoice plant A so plant A should be invoiced. also plant B can straight away take the order and deliver rather than going thru plant A.

hope this helpl.

Regards

Vignesh

[Former Member]

Hi,

From what you have described i could see this to bea typical intercompany billing(assuming that they belong to the same client).

now if company A and B does not transact by PO and internal invoice may lead to one company making revenue without

cost and the other will be making Loss as there will not be any reveue to it.

If the management of company B wants to supply the material and still not invoice it then you could simply follow

Free of charge delivery process from Company B.record the details in the order level text.So no Po and no accounting entries

as well.

Thanking you,

Best regards,

R.srinivasan

[Former Member]

Hi,

It is a third party scenario.

If plant B is not raised invoice to Plant A, then your accounting entries are not going to complete

Both party's having pending Invoice and pending P.O respectively

Kapil