Importance of assignment of Intercompany Master to Ordering Party Sales Organization in Intercompany Sales Process ?

[Former Member]

Hello,

I would like to know about the importance of assignment of Intercompany Customer Master to Ordering Party Sales Organization in Intercompany Billing Process.

As per below e.g. I understood the process as :-

Ordering Party :

Company Code        : 0308

Ordering Sales Area  : 0022, 01 , 54

End Customer          : 3001

Default Del. Plant     : 3001 [ Will be changed at item level for plant linked to other company code ]

Material                    : m-12 [ extended to del.plant of other CC for Intercompany ]

Delivering Party

Company Code                                 : 0306

Sales Area                                          : 0020, 12, 54

Material                                               : m- 12

Delivering Plant                                 : 1021 [ will be used in sales order item level for Intercompany sales ]

Intercompany Customer Master      : 10308

Intercompany Process : SO -> Change Del plant(to other CC plant ) at item level -> PR00 Rs.100 active ( PI01 Rs.90 Inactive ) -> LF -> PGI-> F2 (End Customer Billing )

Intercompany Billing : VF01 ( Billing Type IV ) with ref. to ( above) outbound delivery [ PI01 Rs.90 active , PR00 Rs.100 inactive ]

I would like to understand the importance of Intercompany master ( Payer ) of Intercompany Billing Document ( IV ).

Requesting to please help me in the process.

Thanks

Ankit Mehrotra

[former_member182378]

Ankit,

The customer wants to buy goods. It informs a sales organization (0022).

This sales organization does not have the goods, and wants another sales org (0020) to send the goods to the customer.

Based on the demand of 0022, 0020 sends the goods to customer. Therefore 0022 is the customer and contact point for 0020.

SAP has given a functionality to represent sales organization 0022 as a internal customer 10308 also.

0020 will bill 0022 or 10308 when an invoice is created (after external customer confirms that goods have reached)

TW

[Former Member]

Hello,

I guess since sales org of Ordering plant (internally) has placed the order from another Sales Org of

Delivering Plant Hence it acts as a "Customer" and Will be billed later on with bill doc type IV.

I believe  since this acts as a "customer" May be that's why we create a Dummy Customer in Delivering Plant and Assign it to the Sales Org of Ordering

Plant ( T code OVX5)   .

Thanks.

[Former Member]

Hi Hemant,

As mentioned in my example , End Customer 3001 ( SP,PY - for SA Ordering Party) will get billed for Rs.100 ( PR00 ) eventually generating an accounting document ,contributing to Ordering Party Company Code ( 0308)

However, Intercompany Billing Document ( IV ) takes Payer 10308 ( XD03- SA - 0020-12-54 )of Delivery Party Company Code (0306).

This Payer act as Intercompany master and is assigned to Sales Organization of Ordering Party ( CC-0308). [ SPRO-> SD-> Billing-> Intercompany Billing-> Assign Inter.Master...

Another Accounting Document linked to Intercompany billing document will be generated , contributing towards Delivering Party CC ( 0306 )

My query here is how Payer of Delivering Party CC ( 0306 ) is contributing for the revenue of its CC ?

As per my understanding, payment should come from ordering party towards delivery party.

Please refer below screenshot for the same.

Let me know if I am wrong anywhere.

Thanks

Ankit Mehrotra

[prashant_sharma21]

Ankit,

We should understand the concept of Inter company sales. In Inter Company sales our Plant does not delivery the goods to our customer instead of this the plant belong to another company code directly deliver the goods to our customer.

In Inter company sales one plant is selling the goods to another plant how ever while selling the good to another plant it deliver the goods to customer place.

Intercompany master ( Payer ) is nothing but the ordering sales org/company code. while inter company invoicing this sales org play the role as a customer.  means when you create the inter company invoice IV with payer 10308 you are raising the invoice for sales org 0022. As we know inter company invoice is created on Delivering side hence we have to create this onter company payer with delivering sales area  0020-12-54

in your case Company Code : 0306/1021 is selling the goods to Company Code: 0308/3001.

Customer Invoice: The condition Cost (VPRS) is part of the pricing procedure. It has statistic character and shows the goods issue value in the invoice. In this case goods issue is posted in a different company code to that of the billing document, so the condition is ignored. The cost that is transferred to the Sales Information System and to Profitability Analysis is the condition value for the internal price, rather than your value.

Unlike the end customer invoice in the ordering company code, the system determines the condition Cost (VPRS) for the inter company invoice in the supplying company code. You see the goods issue value that is forwarded as costs to the Sales Information System and to Profitability Analysis.

Revenue of inter -company invoice becomes the Cost of goods sold in Customer Invoice.

Thanks

[jobis]

Hi Ankit,

Prashant has explained it well in detail.

The inter-company master (10308) represents the ordering party. And he is a customer for the delivering company code and so he is present in delivering company's sales area (0020, 12, 54).

This is in brief.

Thanks

Jobi

[Former Member]

Hi Prashant,

Thanks for the detailed explanation.

So, I understood it as, under SPRO->SD->Billing->Intercompany Billing

1) Assign Org Unit to Plant - says assignment of SA ( for which IV billing needs to be generated - 0020 12 54 ) to Delivering Plant ( 1021 ) of other CC ( 0306 ) . Eventually, increasing the revenue of delivering party CC 0306 with the help of Internal Customer of the ordering party (0308).

2) Define Internal Customer by Sales Org - says the intercompany billing document is created for this customer ( PY - 10308) which represent Order Party( CC 0308) Sales Organization ( 0022 ).

Regards,

Ankit Mehrotra

[prashant_sharma21]

Hello Ankit,

>> 1) Assign Org Unit to Plant -

Once we maintain the Delivering Sales Area to Delivering plant it reflect to table-LIKP and when system creates the inter company invoice with reference to Delivery  system take the reference of this sales area.

Additionally we see the VPRS reflect to intercompany invoice only to it increase the revenue of delivering company code/sales org and customer is nothing but ordering company code/sales org.

>> 2) Define Internal Customer by Sales Org.

Yes, your understanding is correct.

I hope now picture would be clear about inter company