doubt about intercompany process

[Former Member]

hello sd gurus

1) I have a doubt in intercompany scenario...we treat customer is an internal customer...so what does it mean and the sister comapny deliver the goods to parent company or customer directly....plz clarify my doubt....

2) in third party process sceanario...how the company knows the vendor has supplied this much of quantity....i know one thing that is miro and billing relevance is (F)....and is there any other answer for this question...if any answer plz let me know......

3) what ever i post the question u guys are saying the answers...so how can i make reward points to u....whats the process to give reward points...

Thanking you

[Former Member]

Hi Kramsapsd

1)Inter-company Sales-Parent Company is the internal customer i.e when customer gives order to Parent Company there is no sufficient stock in storage location. So the Parent company will give order to the sister company who has the same products & deliver the goods to end customer. So here the internal customer is the Parent company for the Supplying Sales Organization of Sister company.

Two Invoices will generate in Inter Company Sales

1)Ordering company will generate the invoice to the customer &

2)Supplying company will raise the inter-company invoice to the ordering company

2)Third Party Sales

By doing the MIGO (Goods Receipt) you can confirm how many goods been delivered by the vendor to the end customer.

Accounting Entries will be generated for MIGO

COGS a/c

To GR/IR Clearing a/c

Regards

Pradeep

Edited by: Pradeep Kumar.A on Oct 29, 2011 4:54 PM

[Former Member]

Hi,

1) I have a doubt in intercompany scenario...we treat customer is an internal customer...so what does it mean and the sister comapny deliver the goods to parent company or customer directly....plz clarify my doubt....

A) The produts are reached to th customer directly from sister company. in iter company sales inter customer means in your parent company will be internal customer,because sister company will send the goods to the customer and it bills(inter company billing) to the parent company(internal customer).but commercial invoice is created to the external customer.

2) in third party process sceanario...how the company knows the vendor has supplied this much of quantity....i know one thing that is miro and billing relevance is (F)....and is there any other answer for this question...if any answer plz let me know......

A)Yes based on MIGO and MIRO.

3) what ever i post the question u guys are saying the answers...so how can i make reward points to u....whats the process to give reward points...

You can see the points to offer in our answer itself, you can find left side for every post.

Based on the answer you satisfied you can offer the points.like 2 or 6 or 10

Thank you,

[Former Member]

Hi Ravi Kumar,,,

a small doubt

1) In my view actually in third party process migo should not happen ....directly the vendor send goods to customer ...so by miro we can understand how much quantity he has sended....there is no migo.so how can we understand through migo...

2) I know the intercomapany process and configuration...but that internal customer i m not understanding....actually in intercompany process what happens is

1---sales order

2---delivery with supplying plant

3---f2 billing to customer

4--iv billing parent company to sister company

so here internal customer we assign to receiver sales organisation....so the parent company to whom the goods will deliver weather sister company or customer......

plz u can explain it clearly...its very helpful for me...

thanking you

[Former Member]

Hi Ram,

1) In my view actually in third party process migo should not happen ....directly the vendor send goods to customer ...so by miro we can understand how much quantity he has sended....there is no migo.so how can we understand through migo...

A) We do MIGO in third party sale,it is a proof for deliverd goods to the customer.even we do MIGO,based on the MIRO quantity ordering company bill to the customer.

2) Internal customer:

A) For intercompany sales we take 1 example-

Ordering company-1000

Delivering company-2000

External customer-10050

Internal customer-1000 (Ordering company)

here external customer will raise the order to ordering company.the goods are delivered from the delivering company,but this delivering company will not bill to the external customer.so this delivering company(2000) has to bill ordering company(1000).here payer for delivering company is ordering company.so that we have to create a payer master record by the name of ordering company and it has to assign in intercompany sales menu path.

so that while creating intercompany the system automatically determines the payer master not external customer.

I hope you understood.

Thank you,

[Former Member]

Dear kramsapsd

Welcome to SDN

For these questions many times the answers were given you please check in the forum.

However i will try to explain the crux of the above queries

1. In inter company scenario when customer wants to purchase the goods from a plant( ordering plant )then ordering plant finds no sufficient quantities to deliver the goods to the end customer in that case , the ordering plant raises the purchase order to supplying plant. Then supplying plant raises the sales order to ordering plant in a favor of end customer and initiates the outbound delivery to the end customer directly.

Here 2 invoices will be generated customer invoice and inter company invoice.

2.In third party apart from that in MIGO also the goods recite will be confirmed .

3. For your third question you please go through he forum rules which have been attached in the threads column.

Please let me know if you have any further clarifications

Thanks&Regards

Raghu.k