VPRS in Intercompany Sales Order

[Former Member]

Hello everyone,

We have a scenario in our company as follows:

We are implementing Inter-company Sales in our environment.

Sales Org 1 (ccode1) sells goods belonging to Plant 2 (ccode2).

Later the ccode 2 cross charges ccode 1 via Inter Company Invoice.

Now material cost is generally calculated using standard price on Material Master by VPRS.

However in the Inter Company Sales Order, VPRS fails due to requirement 004 not satisfied.

Since the customer is created in ccode1 & the item has the delivering plant of ccode2, this requirement fails.

Due to this the cost is not calculated in the Sales Order as well as on the customer Invoice.

Thus COPA is not fed with the cost.

Since this will happen with anyone who will implement Inter Company sales process, I am wondering how other people have got over this issue ?

Any thought

Thanks

Vinit

[Former Member · Accepted solution]

If you use condition category G for PI01....then what ever VPRS determines then PI01 will get that price. However since there will be 2 cost conditions in the invoice, the first one will be getting the cost and the second one will be made as zero. This is standard functionality of SAP. There is a OSS note if you want to fix it.

SAP Note 15462 - The cost in the billing document is '0'.

Regards

Sai

[former_member182378 · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Sai,

I created ZPRS same as VPRS and am using with req. 22. Thus the Inter company items are getting a cost.

However as u said that there will be an issue with double cost in Invoice.

I dont get that as VPRS has req 4 & ZPRS has 22 ... so they should be mutually exclusive.

Can u explain more why ur getting double cost.

Typewriter,

For a normal process VPRS is statistical too .. so how come PI01 being statistical causing profitability issues ?

Did u map PI01 to a value field in COPA ?

BTW a question to both of u:

now based on the updated process,

1) Sales Order placed in ccode 1

Non ICB items get VPRS

ICB get ZPRS

2) Delivery created & PGI'ed (COGS for ICB hit ccode 2 and non ICB hit ccode1)

3) Customer Invoice works correctly for both type of items in terms of Account Determination and feed to COPA

4) Intercompany Invoice:

This determines VPRS as cost .. coz ccode 2 is raising invoice to ccode 1.

Though in point 1 & 3 these items determined ZPRS, in ICB invoice as the headed ccode = ccode 2 & items also belong to ccode 2 .. thus req. 4 is satisfied and VPRS is determined.

Now since the price to be cross charged = cost price i.e. same value as VPRS.

I have created a condition type ABCD based on % and placed after VPRS in PP.

Now the base value for ABCD = line number of VPRS & condition record is set to 100%

Thus it takes the determines a condtion value = 100% of VPRS value.

The only issue I am having is that since this new condition type gets determined, it makes VPRS inactive as both belong to Condition Class = B.

How do I avoid this ?

Also if u can think of a better way of cross charging a value = value of VPRS -- let me know.

Note: Here if I define ABCD same as VPRS .. then I get the double cost issue and ABCD throws an error = Quantity/Value Determination error.

Thanks for your time

Vin

[former_member182378 · Accepted solution]

I can not find one of my posts (calculation after making PI01 cond category = G) in this thread. Did you delete it?

[Former Member · Accepted solution]

nope i did not.

[Former Member · Accepted solution]

In fact if u see .. i had replied after ur reply .. coz my reply has mention to what u suggested.

Just wondering .. how it vanished.

[former_member182378 · Accepted solution]

It was something I had tested, that is the basis to answer the questions you have now asked.

Now because that has been deleted, I would have to redo my tests; in order to answer your questions. Moreover someone reading the thread, might not understand your questions based on my post, because my post is deleted.

Hi Lakshmipathi,

Could you please explain why my previous post was deleted?

It is adding value to this thread and is relevant information based on tests done.

[Former Member · Accepted solution]

Typewritted

I pulled up what u posted from the email that i receive from SDN when someone updates a thread:

I just tested this -

1. In bill to End customer (F2) - PI01 is statistical, thus profit calculations are not correct & posting to G/L accounts shall also be incorrect.

2. In Intercompany bill IV - PI01 is statistical, thus profit calculations are not correct & posting to G/L accounts shall also be incorrect. Also VPRS is not shown.

Will the OSS note fix the above too?

Hopefully now u can help my querries

Thanks

vin

[former_member182378 · Accepted solution]

Vin,

I would try to help you!

But question is to understand why the moderator deleted the post.

Anyway,

Regards,

Typewriter

[former_member182378 · Accepted solution]

Vin,

When I follow the suggestion of in cond type PI01, put cond category = G. I.e. make PI01 = VPRS.

Following problem is taking place -

1. For bill to end customer (F2) - OK

2. For intercompany bill - NOT OK

PR00 is still active

PI01 is VPRS value

Thus the profit is incorrect.

In normal situation without changing cond category to G

in 2. For intercompany bill

PR00 becomes deactivated (yellow traffic light)

PI01 become active as the price

VPRS is the cost.

Test this your self and let me know.

Also test statistical cond type & update to COPA, i think it would be OK, I have not tested this.

[former_member182378 · Accepted solution]

For me the last part * (your post) is not easy to understand. I think if you test this, it will be clear to you.

*Extract from your post -

This determines VPRS as cost .. coz ccode 2 is raising invoice to ccode 1.

Though in point 1 & 3 these items determined ZPRS, in ICB invoice as the headed ccode = ccode 2 & items also belong to ccode 2 .. thus req. 4 is satisfied and VPRS is determined.

Now since the price to be cross charged = cost price i.e. same value as VPRS.

I have created a condition type ABCD based on % and placed after VPRS in PP.

Now the base value for ABCD = line number of VPRS & condition record is set to 100%

Thus it takes the determines a condtion value = 100% of VPRS value.

The only issue I am having is that since this new condition type gets determined, it makes VPRS inactive as both belong to Condition Class = B.

How do I avoid this ?

Also if u can think of a better way of cross charging a value = value of VPRS -- let me know.

Note: Here if I define ABCD same as VPRS .. then I get the double cost issue and ABCD throws an error = Quantity/Value Determination error.

[Former Member · Accepted solution]

Hello VINIT,

Why would a intercompany pricing procedure has PR00? Are you using the same pricing procedure for F2 & Intercompany. However Place PI01 next to PR00. Both has condition class as B - Price and hence PR00 should be deactivated if PI01 kicks in. PI01 should be active....VPRS will be statistical.

To capture cost in COPA....map PI01 to COPA and bypass VPRS for this instance. Assign subtotal B to PI01 & VPRS.

Tywriters posts are also fine and you can test in that direction too which ever resolves your issue.

Hope this helps

Regards

Sai

[Former Member · Accepted solution]

Typewriter/Sai

I have to tell you that I am making Intercompany Invoice redetermine pricing.

Also it has a different pricing procedure assigned to it which does not have PR00 ...Not sure why Typewriter is getting PR00 in ICB Invoice.

It simply has VPRS And I have added ABCD which is not statistical (which equates the cost in a fashion which i explained earlier).

Thus the net value of the invoice will be equal to the cost incurred by ccode 2.

Sai - I am a bit confused about ur suggestion.

Let me restate what ur asking me to do -

PI01 in sales order will determine the cost for Intercompany items. (PI01 has req = 22 & is statistical)

Now when ICB invoice is created, is PI01 redetermined ? OR is it copied from the Sales Order ?

Thanks

Vin

[former_member182378 · Accepted solution]

PI01 = cost price for the Ordering co cd 1

PR00 = price for End customer

in F2 -

PR00 - PI01 = Profit

PI01 = selling price for Manufacturing co cd 2 = cost price for Manufacturing co cd 2 = VPRS

in IV -

PI01 - VPRS = Profit

in your case 0 as PI01 = VPRS

-

I had included PR00 was in pricing procedure for IV, because I have one pricing procedure for OR, F2 and IV.

In IV PR00 is deactivated.

Correctly PI01 and VPRS are activated, when having standard settings.

But when you change cond cat. of PI01 = G

Then in IV you get PR00 is activated, and PI01 = cost (VPRS is red traffic light)

[Former Member · Accepted solution]

Typewriter

I am assuming that PI01 statistical in ur PP.

So if the Invoice is also having the same PP - PI01 should be statistical too in there.

So what is the net value of the Invoice IV ?

Vin

Edited by: vinit parkar on Jul 12, 2011 8:48 PM

[former_member182378 · Accepted solution]

Vin,

I have one pricing procedure, in it PI01, VPRS are marked statistical. The pricing procedure is RVAA01 SAP Standard, take a look.

Yes, in F2 I see PR00 and PI01 & resultant profit.

So what is the net value of the Invoice IV ?

after making the change in PI01 cond cate = G, then net value in IV is PR00 - discounts etc.

before making any changed, i.e. have SAP standard, the net value in IV is PI01 - discounts etc.

Edited by: Typewriter on Jul 12, 2011 9:04 PM

[former_member182378 · Accepted solution]

Sai,

Extract from your post -

"Are you using the same pricing procedure for F2 & Intercompany. However Place PI01 next to PR00. Both has condition class as B - Price and hence PR00 should be deactivated if PI01 kicks in. "

What do you mean by "next to"? (below?)

[Former Member · Accepted solution]

Typewriter

Considering ur case where the PP is same

PI01 & VPRS is statistical.

Customer Invoice has profit = PR00 - PI01

ICB Invoice should ideally have profit = PI01 - VPRS .. however in ur case it would have PR00 - PI01 which is incorrect.

Now regarding my case ---

PI01 with req = 22 is used to calculate cost to ccode 1 in the Sales Order. (PI01 is defined same as VPRS)

So in F2 .. PR00 - PI01 = profit ... so far so good.

Now

For IV, the PP only has VPRS. I have not kept PI01 in the PP due to 2 reasons.

1) PI01 = VPRS ... hence keeping both of them will have the double cost issue that Sai mentioned ealier.

2) Both are statistical .. hence no point keeping both.

Instead i hv created ABCD as discount/surcharges & maintained 100% as the record.

The condition base value comes from VPRS line number.

This is a acceptable solution i think.

Let me know if u see any issues.

Vin

[Former Member · Accepted solution]

What sai means is that SAP by default allows only 1 price per item.

You cannot have another price allowed.

Hence the last condition which is determined, deactivates all the above conditions of type = B.

That would work in ur case .. but in my case since PI01 is not maintained but internally calculated as cost ... PI01 & VPRS together have issues.

[former_member182378 · Accepted solution]

Vin,

Read the pricing part of the link I had sent to you. It shall be helpful for IV part.

From your post -

"For IV, the PP only has VPRS. I have not kept PI01 in the PP due to 2 reasons.

Instead i hv created ABCD as discount/surcharges & maintained 100% as the record.

The condition base value comes from VPRS line number.

Check condition type IV01, this is in standard SAP.

Basically IV01 is price for Manufacturing co cd 2 & IV01 = PI01

So you can use IV01 and make cond cat = G in V/06

Then in IV billing type you have pp2 which does not have PR00 or PI01 but it has IV01 and VPRS.

Then test.

Your post -

This is a acceptable solution i think.

Let me know if u see any issues.

Just test it and let us know. On a whole, it is very much like standard SAP functionality, thus should work.

[Former Member · Accepted solution]

typewriter

I see an issue with IV01

1) Now if i change it to G .. VPRS & IV01 will co-exist causing 2 cost conditions to exist for the same item. And then the condition that is placed second int he PP will have an error. In my case it is VPRS.

[former_member182378 · Accepted solution]

Vin,

Then go for it your way with ABCD.

Just explain again how you want to make value of ABCD = VPRS.

Thanks!

[Former Member · Accepted solution]

yes i mean below.

[Former Member · Accepted solution]

Typewriter,

ABCD is of cond class = Discount/surcharge

calc. type = %

In PP, the from field should hv the line number of VPRS>

Note ABCD is placed after VPRS in the PP>

finally maintain 100% as the condition record for ABCD.

Hope this helps

Vin

[Former Member · Accepted solution]

Finally I have another question.

Now I was thinking of designing a Free of Charge Order as a subsequent order for this standard Intercompany sales order.

But the cost it not getting calculated.

Here the requirement tied to VPRS (004) & PI01 (22) are failing.

Anyone thoughts on this ?

Vin

[former_member182378 · Accepted solution]

Vin,

I like the way you are "brainstorming", creative idea. The disadvantage of going away for SAP standard functionality is risk, more testing & all-in-all more work!

e.g.

Intercompany item cat. TAN & Free Delivery item cat. KLN - one is relevant for billing & standard pricing; other one is NOT

schedule line category CP & CN - One takes in to consideration TOR, Availability check; the other does NOT

Why did you NOT go for the method you last said?

[Former Member · Accepted solution]

Typewriter

The standard Intercompany Sales Transaction settings are done. I have followed what we finally decided.

As a business process, due to the product that we sell .. there is a chance of customer complaints.

Hence either we credit him the money back thru Credit Memos or send a reshipment which is create a follow up Free Of charge Sales Order.

So now I was setting the FOC process.

The FOC item cat. is exactly same as the Std Item cat except that it is not relevant for pricing.

When I placed an FOC order for an Intercompany Item - neither VPRS nor PI01 was calculated.

Requirement 004 and 22 both fail.

Basically ccode 1 will send a reshipment to the customer free of charge. But ccode 2 will invoice ccode 1 the same way @ cost price.

I am trying to set this up right now.

Any input on the Cost determination for the ICB item in a FOC order ?

Vin

[former_member182378 · Accepted solution]

Vin,

Co cd 1 Ordering co cd shall send material to End customer without any charge.

But co cd 1 Ordering co cd has to pay manufacturing co cd 2 the cost price.

Is above correct?

If End customer was NOT happy with the material, why Ordering co cd should have to pay to manufacturing co cd?

Material does not satisfy the quality standards and customer has complaints.

Apart from above, you can use PR00, just create a cond table with additional field "Sales document type". Put this cond table right on top of the access sequence (e.g. PR02) and have exclusivity.

So for all the Sales doc types except for SDF (subsequent delivery free) PR00 shall have the normal price. But for SDF, PR00 shall have 0.

As given in VK11 for PR00.

I hope you shall award points for the help we provided for this interesting and comprehensive thread!

[Former Member · Accepted solution]

Typewriter

I will defi. award points. I just dont want to award it right now and close the thread.

Well customer complaints might not be due to quality stds always. May be due to damaged product in transit ,, etc

The point is that ccode 1 will create a subsequent FOC order which will be fulfilled by ccode 2.

And hence ccode 2 will cross charge it to ccode 1.

My issue is cost is not getting calculate in FOC order.

Vin

[former_member182378 · Accepted solution]

Vin,

1. for PI01 -

Req 22 for PI01 must hold, your billing type is IV, correct?

From SAP, req 22 -

"This requirement is met if the document is an inter-company billing document. Inter-company billing documents are created for inter-company sales transactions and represent the delivering company code's bill to the sales organization's company code. This requirement should be assigned to those condition types in the pricing procedure that are only relevant in the inter-company billing document. In the standard system, this corresponds to delivered condition types PI01 and PI02."

2. for VPRS -

Check in VOV7, for your item category, field "Determine Cost" = activate it.

Another other specific reason why requirement 4 is not fulfilled?

[former_member182378]

Hello

Yes, this is standard functionality for Intercompany billing.

The concept is as follows -

(as per your scenario)

1. Manufacturing CoCd = 2, SOrg =2, Plant = 2

2. Ordering CoCd =1, Sorg =1; this Co cd then sellings the material to the End customer

3. End customer

Bill to end customer, has the following

PR00 = Price for material charged to End customer e.g. 2000Euros

PI01 = Price for material charged by manufacturing co cd to Ordering Co Cd = 1500Euros

So for Ordering co cd 1, PI01 acts like cost price (something like VPRS but NOT VPRS)

Thus profit for co cd selling to End customer = 2000 - 1500 = 500Euros

Bill to Ordering co cd, has the following

PI01 = Price charged to Ordering co cd = 1500Euros

VPRS = cost of manufacturing the material by manufacturing co cd 2 = 850Euros

Thus profit for co cd seling to Ordering co cd 1 = 1500 - 850 = 650Euros

When you make required FI and SD settings, then from bill to End customer, the cost shall be updated in Accounts etc. (COPA.....)

-

PI01 is maintained in VK11

VPRS is coming from MM01 Tab Accounting 1.

Very helpful link -

http://www.sap-basis-abap.com/sd/configuring-intercompany-billing.htm

[Former Member]

Typewriter,

That makes perfect sense to me.

Now here is the problem I have.

PI01 = VPRS in our scenario as the Manufacturing ccode charges the fulfilling ccode at cost price.

In the intercompany billing document, cost to ccode 2 is calculated via VPRS which picks it from the material master standard price.

Also PI01 needs to be maintained in VK11.

How do i match it up to what VPRS would have calculated ?

Thoughts ?

Vin

[former_member182378]

So, you are saying that "manfacturing co cd 2" is not making any profit when it bills the Ordering co cd 1.

i.e.

PI01 = VPRS

First, for intercompany SAP has standard configuration; in V/08 pricing procedure, due to Requirements (like 22, 4) you do not get VPRS in the bill by Ordering co cd 1 to End customer.

But you get PI01.

I suggest that in VK11 create condition record for PI01 with the value of VPRS. The downside would be when you change cost in MM02 for that mat. then that cost would not be updated automatically, some user would have to do that in VK12.

Or else you would have to create a routine for AlCalType for PI01 in VOFM and include that in your pricing procedure in V/08.

In your business process do you change the cost price in MM02 often?

[Former Member]

Nope, ccode 2 does not want to make profit.

Well the price does not change often. However I am sure if i propose that everytime the price changes they need to update PI01, they will crib about it.

I think writing a routine would be better.

Now since VPRS is calculated internally .. what would the formula be ?

Do you know how VPRS calculates the cost ?

Thanks

Vin

[eduardo_hinojosa]

Hi

See these notes:

SAP Note 338922 - Analysis note for cross-company transactions (delivery)

SAP Note 1365939 - VPRS logic and Customizing settings in SD

SAP Note 543821 - FAQ: cross-company processing

Regards

Eduardo

Edited by: E_Hinojosa on Jul 8, 2011 10:09 AM

[Former Member]

Eduardo

None of these notes are helpful to calculate cost for the ICB item in the Sales order.

Any thoughts ?

[Former Member]

Hi,

In your pricing procedure consider std condition type PI01 for Intercompany sales, which contains the cost irrespective of different company codes.

FICO has to map that field to characteristic and key fields updation in COPA, which will reflect the cost.

Regards,

Amit

[Former Member]

Amit

I have checked the condition type PI01. It is a ICB sales price.

I am trying to find if it is possible to determine the cost of an ICB item in the Sales Order.