third party n intercompany billing

[Former Member]

Dear All

Is Third Party and intercompany billing is same.

Thanks in Advance

Annie

[Former Member]

No. Both are two separate process.

Incase of Inter-Company Billing, the same group company is being billed, where as in case of third party billing, our company bills an external customer. Configurration & process for both are very different.

For additional information on the same, please refer to link below:

Link: http://help.sap.com/

Path: SAP Best Practices --> Baseline Packages --> Based on SAP ECC 5.00 --> Select Country: for eg, Localized for India --> Technical Information --> Building Blocks --> Select Country for eg, India --> List of Basic Configuration & scenarios will be listed.

Select the required basic configuration / scenario. These will consist of overview, configuration guide, business process, master data &so on ...........

Additionally, Third Party Scenario can be configured in two ways:

1. Third Party with Shipping Notification

2. Third Party without Shipping Notification.

Similarly, Even Inter-company scenario can be mapped differently.

You can get good information from help.sap.com

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Hi Annie,

Intercompany billing:

Billing procedure in which one utility company creates a single bill for the end customer, including services of several companies all having separate balance sheets. This one company also maintains joint contract accounts receivable and payable for the customer for all other companies.

Contract accounts receivable and payable contain the information specific to company codes and transfer the data to separate general ledgers.

Thirdparty:

Consider a Supplier who sends goods directly to your customer, and you bill him. Its just the word meaning.

That’s all

<b>**PLEASE REWARD POINTS IF YOU ARE SATISFIED**</b>

Regards

AK

[rmazzali]

No.

Thirdy party: a supplier (maybe another company not intercompany and not running SAP) sends goods directly to your customer, and you bill him when you post MM invoice verification.

Intercompany: a company of your own group also running SAP, supplies you goods based on your purchase order, and from the same delivery MM and SD invoices are posted.

pls. reward points if helpful

Roberto

[Former Member]

In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.

In detail the process is like this...

A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code.

The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.

Because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an intercompany billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.

The process of billing between two company codes is intercompany billing .So in third party sales,intercompany billing is a part of it.

Please reward if this helps.