on 12-23-2010 3:02 PM
Dear expert,
I read the intercompany billing process and have some confuse.
The process like that: CC1(company code 1) sells to end customer, CC2 (conpany code 2) (internal relationship) issues good.
1, CC1 sells to end customer. CC1 create the SO
2, CC2 creates the DO and PGI, that recognize the COGS at CC2 for the internal sales.
3. CC1 creates the billing to end customer --> record the revenue of CC1
4. CC2 creates the internal billing to CC1 --> record the internal revenue of CC2
My question is, follow this process, I don't see the COGS of CC1, there is only a outbound delivery create by CC2 and COGS of CC2.
I read the document about cross transaction, but it guide me only for steps above.
Are there any mistake here?
Please give me a help.
Thank you in advance!
HongDM
Not only that, there is another thing that apparently gets missed. When CC2 bills CC1, CC2 knows that it has to collect money from CC1 BUT how does CC2 from its books know that it has to pay money to CC1
I think you have missed 1 last step that generally happens in the background that answers both these questions.
When CC2 creates the internal billing to CC1, in that intercompany invoice, there is a standard output type RD04 that triggers. This ouptut type is EDI and generates an IDoc that does the accounts payable entry in the books of CC1. This entry then books the COGS and also the accounts payable thus completing the process.
Hope this helps
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Dear expert,
I have some question about the document flow of the intercompany billing process.
Company code 1 (CC1) sell to customer
CC2 issue goods to customer of CC1, then internal billing to CC1.
the step as below:
1. CC1 create SO (sell to customer)
2. CC2 create outbound delivery to Customer of CC1, recognize COGS of CC2
3. CC1 bill to customer, recognize revenue of CC1
4. CC2 create internal invoice to CC1, recognize revenue of CC2
in internal invoice of CC2, update the output RD04. Does it recognize COGS and goods receipt to CC1? Because as above document flow, I see that, the CC1 don't have COGS, not receipt goods to plant of CC1 and Account Payable for CC2. There my thinking as logic of flow, but I'm not sure what the EDI and RD04 can do. Can you tell me about that.
Thank you very much, this is very helpful for me.
Best regard,
HongDM
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Hi,
RD04 output triggers one Outbound Idoc first, then the outbound idoc will convert into Inbound Idoc. The inbound idoc will post Accounts payable document in company code CC1. There will be no Goods receipt only accounting document. The accounting document credit the Vendor and debit the COGS.
Vendor Cr
COGS DR
Regards,
Lakshmikanth
Because of some technical problem, I can't make the EDI, that why I can't process full this one. What's a pity!
Thanks all of you for helping!
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Hi HongDM,
Your steps are correct, no mistake. But one more step needs to be added. The last step is Payable document needs to be geneared in CC1. This can be creared automatically through RD04 output type from IV billing document.
Please let me know if you need RD04 EDI setup and FI setup for creating payable document from Idoc.
Regards,
Lakshmikanth
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Dear expert,
Thank you for your help. As your answer, I need to create one more step to post the Account Payable via EDI and use RD04 output. You also said that It will recognize COGS for CC2. Is this alright?
If yes, can you give me the direction to config and create the RD04 output because I can't create this. The SAP system give a message: "Maintain outgoing EDI-connection data for partner 87"
Please give me the guider.
Thank you very much!
HongDM
Hi,
Step1: Maintain the EDI partner profile for the intercompany customer - Take EDI consultant help
Step2: Complete the configuration in OBCA, OBCB, OBCD and OBCE tcodes - FI Setup
Step3: Maintain output condition record for RD04 in VV21 tcode - You can maintain RD04 manually in billing also
Regards,
Lakshmikanth
Hi Hong,
cc1 posts the intercompany price as COGS. You have an intercompany price condition in your pricing procedure and you can copy that to a COGS condition for posting.
The profit of cc2 is the difference between intercompany price (the cc1 COGS) and the cc2 COGS.
best regards
Michael
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