Intercompany Pricing (Markup)

[Former Member]

Hello

we have a scenario where company A does all the purchasing for company B from external vendors.

The requirement is for the company A to bill company B with a markup (say 10%).

We configured the EDI process for the inter-company billing (per SAP guide). When we did the PGI and invoicing - we see that the material cost is coming to company B twice. Once during PGI and once with the invoice.

Is there a way to markup the price during PGI itself? Or are there better ways of doing this?

Thanks

[Former Member · Accepted solution]

The accounting during PGI is for cost of goods sold.. This is based on the movement type assigned to your schedule line category.

I thinks its better to keep the markup at the invoice level.

Regards

Sai

[Former Member · Accepted solution]

Yes, we are doing the mark up only during the invoice.

The issue we see is that there is an inter-company material charge when we do the PGI. (both on Company A & B). We think this is happening because the material is being ordered for a particular WBS in company B.

Is there a way around this - as this will result in double booking the cost on company B?

Thanks

[Former Member · Accepted solution]

Cost should flow to CO once the billing is created through the VPRS condition which is mapped to the value field in CO-PA. In your case the P/L account which you are using for the COGS posting has been created as a Cost Element & that's the reason the cost is going to CO twice once during PGI & once during billing. In short the COGS account should not be a cost element or else you need to do a reconciliation.

[Former Member]

Has anyone come across a similar requirement? And how was this implemented?