distribution channel in inter-company scenario

[Former Member]

Hello Friends,

Is it correct that

A plant can be assigned to a Sales organisation of another company but with the distribution channel that is in the same company as the plant. The effect of this will be an inter company transaction ?

Or should it be that the distribution channel is in the same company code as the Sales Org?

regards

John

[Former Member · Accepted solution]

Hi John,

Please go thru the below link for clear understanding of Intercompant business process.

Please let me know your thoughts.

Thanks and Regards,

Satheesh Durgi

[Former Member]

Hi John,

If one legal company delivers product to the customer, sourced from the plant, which belongs to another company code, then the scenario is termed as Inter-company sale Delivering company bills the ordering company.

This is called as Inter-company billing. Standard inter-company billing type is IV Let us take scenario as below: Customer u2013 300001 Sales area for creating sales order u2013 3000/10/00 Delivering plant u2013 1200 Material is R-1006 Supply Customer 300001 Plant 1200Sales org. 3000 Company code 3000 Company code 1000 Let us understand configuration behind

u2022 Determination of Billing type IV

u2022 Payer to which, supplying plant should bill.

u2022 Sales area in which payer should be defined

u2022 Pricing procedure for inter-company billing

u2022 Posting of inter-company invoice in MM Instructions Menu path

: IMG u2192 Enterprise structure u2192 Assignment u2192 Assign sales organization u2013 distribution channel u2013 plant Click Plant 1200 has to be assigned to sales organization 3000, as it is a delivering plant.

Hope it helps.....

Thanks/Rajesh