INTERCOMPANY REQUIREMENTS FOR ECR RETAIL SCENARIOIS

[Former Member]

Hi Experts,

I am trying to do the below scenarios for Intercompany STO process.

Situation: 

HQ Corporate Ops has a different company code than the stores it supplies.

HQ DC warehouse is also in that same company code.

Stores are in a different company code from HQ Operations

1. E.G.:

HQ Corp Company code 1

HQ DC                   Company code 1

Store 1234           Company code 2

Store 1235           Company code 2

Store 1236           Company code 2

Scenario #3: Third party drop ship to stores with HQ Pays

Store creates a PO for product to be shipped by the supplier directly to the store, bypassing the DC.

Store receives (counts) the merchandise – creates GR

But the Invoice is sent by the supplier to HQ AP for payment.

HQ needs to do invoice match and clears for payment

Show the intercompany financials postings

I am trying to create the PO for the above scenario but I am getting the below error in PO. Would like to know is above scenario feasible via standard Intercompany STO.

Have enclosed the snap shot for the error message I got.

For that error message on further on scn I got the OSS Note :

1918552 - Third Party Purchase in Cross Company STO: error 06769

With respect to this OSS Note in the resolution they have mentioned that is not possible in standard SAP.

Refer the OSS Note attachment.

I would like to seek your expert advice if this scenario is a valid scenario or not.

If Valid and is it feasible via standard configuration and how to rectify that error message.

Scenario #4: Third party drop ship to stores with HQ Pays with markup to the stores

Store creates a PO for product to be shipped directly to the store, bypassing the DC.

Store receives (counts) the merchandise – creates GR

But the Invoice is sent to HQ AP for payment.

HQ needs to do invoice match and pay BUT WITH A MARKUP based on a % of the cost of the item.

Show the intercompany financials postings

I am yet to work on this scenario.

Immediate inputs and help will be highly appreciated.

Thanks,

Farhan.

[Tobias_König]

Well, it sounds to me that at least maybe scenario 4 could - in regards to the payment flow - be covered by Agency Business where the vendor is the "vendor", the store is the "customer" and the HQ is the "agency" doing the pooled payment.

But as I am no expert in Agency Business, one with detailed background in this topic would have to judge this.

Regards

Tobias

[amit_tunara]

Hi Farhan,

This can be addressed by using a third party sales order. Third party sales order is created when you are buying the goods from vendor and want vendor to directly supply to your customer. So in your case,

• Your DC company will create a third party sales order.
• You will need to create customer which represents your store.
• Once, the sales order is saved, it will generate a PR which can then be converted into PO.
• The supplier directly sends the goods to your store.
• Vendor sends you the invoice.
• Upon GRN by store, you will be able to process the vendor invoice.
• Billing is executed for store to pay to DC company code.

You can try to build the process around this. Try to search SCN for third party Sales Order scenario and you can also check cross company code. You will need configuration to support this entire process.

I hope this will help.

Regards,

Amit

[Former Member]

Hi Amit,

Thanks for your reply.

So the process I am trying to do in MM is not the right way and is not valid for third case. Confirm me on this.

I understood the third part process as I am SD consultant.

Can you also check the 4th case and confirm me the approach in MM or SD. I think they both are same addition is mark up cost.

Thanks,

Farhan.

[amit_tunara]

Hi Farhan,

I am not sure whether this can be done in MM, but looking at the requirement you mentioned above, i suggested to use third part sales order process. So, you will have to take a call which suits you best.

As far as mark up is concerned, i think it is adding a condition type in relevant pricing procedures. Using condition techniques, you can add this condition type in SD Billing pricing procedure to appear in the billing document to store.

I hope this will help.

Regards,

Amit