Solution for an intercompany sales.

[Former Member]

Hello SAP gurus,

The same company is divided into two companies in SAP based on business processes which are upstream

and downstream. The upstream company deals with production and is completely on SAP whereas the downstream only has SAP FICO. The production is done in upstream and the sales happen from downstream. The sales are handled completely through third party system and the client does not want to get rid of third party system. Now the concern here is that how do i move the stock from upstream company which is produced in SAP to the downstream company which has only SAP FICO. So we thought of making the downstream company as a customer to upstream company and selling the stock to it. The client will open a Sales Order every month and by the end of month whatever stock they have sold in total in that month they can do a delivery for that quantity against the Sales Order. The client has around 8 commercial products which it sells. The question i have is

1) is this a feasible solution if we structure it like this are there any issues that we should be aware of while designing it this way

2) What kind of sales document should we use, a sales order or may be a sales contract against which this can be done.

3) are there any inter company billing issues which i should be aware of.

4) Can the experts suggest a better way to do this.

• Please note its a template rollout so the I wont be in a position to change the org structure

• all the sales are handled through third party system and most f the products sold are tax exempt

Look forward for help on this.......Thanks in advace for help.

[Lakshmipathi · Accepted solution]

how do i move the stock from upstream company to the 
    downstream company which has only SAP FICO

Since the downstream company has implemented only FICO, why do you want to move the stock to this, as anyway, you are not going to generate delivery and billing from this. Only through manual entries, you have to update the FICO.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hello Laxmi,

Thanks for your reply. That's what we were planing initially but in the upstream company once the Production Order is confirmed, we have stock showing for those materials. I can do the FI entry based on the sales from 3rd party. But how do i reduce the stock from the upstream company based on the sales done in the downstream.

Thats where I am stuck.

Thanks for your help

[Lakshmipathi · Accepted solution]

But how do i reduce the stock from the upstream company 
   based on the sales done in the downstream

It is nothing but you are moving the stock from SAP plant to non SAP plant in which case, you can execute MB1A with movement type 291.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Thank You for your reply. I had a look at the movement type and looks like we can use it. Just a doubt from the financial postings side. So the Material Inventory account will be credited but which account should be debit. Should i post directly to a seperate G/L account or i need to create any costing object and than do it.

Thanks again.