Intercompany RRB billing

[former_member308318]

Hi,

I am working on the follwing scenario.

-Company code A is Responsible for the Project to bill its External Customer

-Company Code B Provides its services to Company code A and enters its time in CATS

-In Compnay Code B , an Internal Billing Request(DMR) will be genrated and sends the internal Billing Document to Company Code A through IDOC.There the system posts the incoming invoice in Finance.In this way Company Code B genrates Internal Revenue.

-Therefore Company Code A sends the Billing document to its External customer and genarates External Revenues.

The question we have is there should be a markup(Labor cost +Labor Markup) added to this Internal rate.How/where can we find CO object For Example WBS and to add markup amount there?

Please advise.

Regards,

Ashley.

[former_member308318]

Hi Paulo,

I understood the process after your response.Thank you!

-Supplying Company Code will enter the Time and uses Requesting Company Code WBS element as a CO object.

-Rate will be fixed in KP26 and a mark up will be added on top of the rate.Example: 1000$+20% markup=1200$(this will be done when you run Intercompany RRB(DP93) as you said.

Can you please send me a brief note about running DP93 process in order to add MARK UP to the Actual cost?(Apologies my knowledge is limited in Intercompany billing).

Please advise.Thanks.

Thanks,

Ashley.

[Paulo_Vitoriano]

Hi Ashley,

I am glad it was helpful.  As for the document the links to external web sites are not allowed on SCN, so I cannot post them here.

Regards,

Paulo

[former_member183879]

Ashley,

If I understand, Paulo's response is about the markup company B has over its cost when it is sending invoice to Company A.

Transfer of invoice from B to A is transfer price if both are of same company code, but in case of different company code, the outbound invoice of RRB (Debit memo) will be received as an inbound invoice in A towards the PO they provide to B.

In such a situation, the invoice value of Company B will become the cost to Company A. So far the cost flow from B to A is clear.

If the issue is to do a markup on the invoice company A gives to end customer, the solution lies in SD. For this you should have a sales order from which the PO we initially said should get created automatically. In this case, when GR happens for the PO (Or I.R), the value becomes the cost of the service in the sales order in the condition type VPRS. This has to be enabled by means of a suitable pricing procedure in SD, which an SD consultant should be able to do without much difficulty.

Once VPRS value is updated, it is again very easy to make a markup and arrive at selling price in SD by using the correct pricing schema in the pricing procedure. This should again be designed by an SD consultant.

Hope this helps. If you have any queries, letme know.

[former_member308318]

HI Navaneetha,

Thanks for your response.

-Requesting Company code faces external customer whereas employee from Supplying compnay code enters time in CATS and Supplying company code creates IC billing request at the end of the period based on the cross company code.

Example:10 hrs and rate 100$/hr =1000$/hr which transfers to Requesting Company code CO object WBS element as an Actual cost.Now,the question we have is Supplying company code has to add intercompany markup to the internal cost of hours. Where should it happen? or

Should the cost of hours of the supplying company code employee recorded in the timesheet include the markup? Or it has to be added in the internal billing document (as a condition)?

Please advise.

FYI Supplying company code will internally bill by sending internal billing request(through IDOC) to Requesting company with total of $Actual Cost + Mark Up which is a cost for Req company code and revenue for Supplying company code.

To keep it short the mark up cost also should be posted on same CO object where Actual employee cost has been posted.

Please advsie.Thanks.

Cheers,

Ashley.

[vishal]

Hi Ashley,

Hopefully you might have found the answer to your question.

Anyways, Mark up should be added when seller company code is creating DMR/sales order to the buyer company code.  The cost transfer from the time sheet gets you the cost/price.  Process the RRB Intercompany & add your mark up at time of creation sales order/DMR.

Thank you

Kris

[Paulo_Vitoriano]

Hi Ashley,

Why would you need another CO account assignment for a markup?  Company A has a project where part of the structure belongs to Company B.  Company B runs RRB where markup is part of the pricing procedure in SD, that credits the WBS in B structure and debits cost in A structure of the same project.  Next A can proceed with external invoicing.

Regards,

Paulo

[former_member308318]

HI Paulo,

-Company Code (B) creates an Internal Sales order once in a year for future Debit Memo requests. Note: Internal customer specifies Company Code A

-Company Code A creates a Project and REAL Sales Order in Requesting Company Code.

-Company Code B enters time and Actual cost is captured at Project

Below are the details I am looking for. Please advise.

1. Supplying company code has to add intercompany markup to the internal cost of hours. Where should it happen (At WBS or Pricing Procedure in SD)?
2. Should the cost of hours of the supplying company code employee recorded in the timesheet include the markup?
3. Or it has to be added in the internal billing document (as a condition)? If adding the markup in the billing document, then it has to be allocated to the correct WBS element in the requesting company code project. Can necessary config be done on DIP profile level for WBS analytic in IC billing?”

[Paulo_Vitoriano]

Hi Ashley,

1. I suggest having markup in SD pricing procedure.

2. See point 1.

3. Account assignment in the receiving Company code is the same for both markup and the cost.  WBS never makes sense as characteristic for DIP profile.

Regards,

Paulo

[former_member308318]

HI Paulo,

Approciate your response.You always been a great help.

-May I ask you doing Markup in SD Pricing? Do you have any corresponding documents?

-Yes,account assignment is in the requesting company code is same for both markup and cost that we use to tranfer time from Supplying company code.But,May I know why you don't recommned adding a markup to billing document?

[Paulo_Vitoriano]

This is something I'd suggest to address in the SD forum...

[former_member308318]

HI Paulo,

Revenue is booked in WBS but Revenue is posted to GL which is non-relvant to CO since the amount already passed to CO object via CTS timesheet.

Time recorded directly in Supplying comoany code to WBS in Requesting Company code and the requirement is "mark up of sending company code should be recorded as the cost in the requesting company code"? Is it possible?

OR Does it make sense to add Mark up time in time sheet for cost purpose?Is it a best approach?

Please advise.

Thanks,

Ashley.

[Paulo_Vitoriano]

Hi Ashley,

Maybe I do not understand your question because I thought I did answered it already.

For example, you capture 1000 USD labor cost from CATS on WBS Company code B.

Next you run RRB with for example 2% markup, so same WBS will be posted with 1020 USD credit.

That goes in as cost of 1020 USD on WBS Company code A.

Yes, markup of company B is obviously a cost of company A, how else that can be recorded?

Thank you,

Paulo