Hi friends

[Former Member]

Can anyone of you can tell me about intercompaney sales and theird party sales briefly,

including the whole process.

hope any of you can answear me the question.

[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.

The processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.

Processing Third-Party Orders in Sales

Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.

Automatic third-party order processing

If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.

Manual third-party order processing

In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.

If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.

If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.

You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.

Processing Third-Party Orders in Purchasing

When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.

Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.

All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order.

How Purchasing Data Affects Delivery Scheduling

During the automatic delivery scheduling of third-party items, the system takes into account lead times specified by the purchasing department. For example, the system allows for the time required by the vendor to deliver the goods to your customer and also the time required by the purchasing department to process third-party orders.

Comparing Purchasing Data with Sales Data

You can create a list of all sales orders with third party items for which there are discrepancies between the quantities ordered, invoiced, canceled, or credited in Sales and the quantities ordered, invoiced or credited in Purchasing. For more information

Intercompany business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code.

The following intercompany business transactions are possible:

Intercompany sales processing

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.

Intercompany stock transfer

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

The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.

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.

Intercompany sales processing consists of the following three stages:

Processing sales orders

Processing deliveries

Billing

The sales organization and the plant are assigned to different company codes and have the following responsibilities:

Sales organization:

Processes the sales order

Bills the customer

Plant:

Delivers goods to the customer

Bills the ordering company code (sales organization) - this is intercompany billing.

Intercompany billing uses SAP EDI to carry out posting to vendor account for the ordering company code.

Company Structure

Company code

Sales organization

Plant

0001

0001

0001

0002

0002

Condition Record

A condition record specifies that plant 0002 bills sales organization 0001 for goods at 80% of the net invoice value.

Sales orders

Sales organization 0001 receives the following sales order from customer XYZ:

Item 10 Product A 20 pcs (Plant 0001) USD 200

Item 20 Product B 50 pcs (Plant 0002) USD 500

The second item requires intercompany sales processing, since product B must be delivered from a different company (company code 0002).

Intercompany Sales Processing

The intercompany sales functions are carried out as follows:

Pricing for customer invoice: Sales organization 0001

delivery: Plant 0002

billing: Sales organization 0001 bills the customer for USD 500

Sales organization 0002 bills sales

organization 0001 for USD 400

(with an intercompany billing

document)

inancial accounting: In company code 0001, SAP EDI

is used to carry out posting to vendor account

Relationship to Pricing

The system processes intercompany pricing elements in exactly the same way as other pricing elements. The data for intercompany sales is stored in condition records. Pricing for intercompany billing is controlled by condition types, pricing procedures, and access sequences. Intercompany billing itself is controlled in a separate menu point in Customizing. This control data is defined in Customizing for Sales by your system administrator.

[Former Member]

hi

send test mail at shesagiri@gmail.com

[Former Member]

Hi

The Inter company Business process describes the business transaction which takes place between two companies which belong to same client.

In this transaction the plant belongs to delivering Company and Sales organisation belongs to ordering company.

The Sales Organisation of ordering company process the sales order and bill's the customer,where as Plant of delivering company delivers goods to customer and Bills the ordering company. which is Inter Company Billing Document.

For this we need to maintain the fallowing settings in the SAP system

1. A customer master record must be created to represent the Ordering Company. i.e We have to creat SALES ORGANISATION OF 1'st COMPANY AS CUSTOMER ( CMR) in company code 2 as WHich is a Delivering Company.

2. For creating the Inter Company Billing Document we need to maintain the Document Type "IV" and assign it to the Sales document type "OR"

Note : For "IV" The document category is "5"(Inter company Invoice)

Note : The corresponding cancellation type is "IG"

Note: We need to specify the document type "IV" in the defination of "OR" in the field inter company billing Type "IV"

3 The permisable combination of Plant and Sales Organisation must be maintained i.e Tha Plant of Delivering Company has to be assigned to Sales Organisation of Ordering Company.

4 For maintaining the inter company price we need to maintain the condition Records for either of the condition types PI01 or PI02

Note : For PI01 and Pi02 the condition category is I (Price for inter company Billing)

For "Pi01" the calculation type is Quantity anf for "Pio2" it is Percentage.

Note :

While placing these condition types in the Pricing Procedure. we need to specify the SUBTOTAL "B" and the Requirement "22"

5 While maintaing the Condition records. we need to specify the sales Organisation of Ordering Company and the Plant of Delivering Company

After this Settings

Step 1

Create Order VA01

Note :

While creating the Sales Order for the Material the system by default Determines the Plant of Ordering Company which has to be changed to Plant of Delivering Company. This can be done on the "Procurement View "

To enter the delivering Plant in the Sales Order. The material Has to be Extended to that Plant

Step 2:

Creating Delivering Document VL01N Create

Note :

while creating the delivery Document we need to specify the SHIPING POINT that is assigned to the delivering Plant.

Step : 3

Creating Billing Document VF01 Creat

We need to process the Delivery Document twice for creating Two Billing Documents.

A. The delivery Plant procesess the delivery document for creating the Inter Company Invoice

B. The Ordering Company Procesess the Same Delivery Document for Creating the Invoice for Customer.

Thanking You

Yoganand

[Former Member]

hi

In third party sales the goods are directky delivered by the vendor to customer.

Third party material uses BANS as item category group which should maintainied in MM01on the sales org 2 tab page.

The item category is TAS and it has schedule line CS where u have to maintain "NB" in the order type field which generates automatically purchase requisiton as soon as u save the order.

U should create a vendor in XK01

VA01 order creation

ME57 assign purchase requistion to purchase order

MIGO

MIRO

and finaaly invoice

before that you need to maintain source list, purchasing info record all these are normally done by MM consultants.

regards

[Former Member]

hi

Definition:

A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group.To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B. It is imperative that both Plants A & B should have the material. In other words, the material is created for both the Plants A & B + their respective storage locations.

Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code.Sales organizations and plants assigned to each other need not belong to the same company code.

In other terms, a plant belonging to Company code A & assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company sales.

PARTIES INVOLVED

1) End Customer 2) Ordering Company code 3) Supplying Company Code.

End customer:

Customer who orders goods from the ordering company code.

Ordering Company Code:

Which orders goods from Plant belonging to Supplying Company code through its sales organization and bills the end customer.

Supplying Company Code:

Supplies goods from its plant to the end customer specified by the ordering company code and bill the ordering company code.

CONFIGURATION SETTINGS

Assign Delivery Plant of the supplying company code to Sales Org + Distribution channel of the Ordering company code in the Enterprise Structure.

DEFINE ORDER TYPES FOR INTERCOMPNY BILLING:

Menu path: IMG/ SD/Billing/Intercompany Billing/Define Order Types for Intercompany billing

Assign Organizational units by Plant:

Menu Path: IMG/ SD/Billing/Intercompany Billing/Assign Organizational units by Plant.

Define Internal Customer Number By Sales Organization:

Menu Path: IMG/ SD / Billing/ Intercompany Billing/ Define Internal Customer Number By Sales Organization:

Creating / Showing Ordering Sales Organization as Internal Customer for Supplying Company code:

Transaction Code: XD0

The ordering sales organization is represented as Internal customer of Supplying company code.

We need to create customer master in Account Group – Sold to Party and maintain minimum required financial & Sales Area data.

This internal customer number has to be assigned to the ordering sales organization. Hence, the system automatically picks up this Internal customer number whenever there is Intercompany billing.

PRICING:

We need to maintain two pricing procedures RVAA01 & ICAA01. Pricing procedure RVAA01 represents condition type PR00 & any other discounts or surcharges that are meant for end customer.

We assign Pricing procedure RVAA01 to combination of Sales area (Of Ordering company code) + Customer Pricing Procedure + Document Pricing Procedure of Sales document type.

This pricing Procedure (RVAA01) is determined both at Sales Order level & Billing processing for the end customer.

We maintain PR00 condition type to represent the ordering company code’s price to the end customer.

Condition records for PR00 are maintained using organizational elements of Ordering company code, end customer & the Material.

Eg: Sales Org. of Ordering company code + End customer + Material.

We also need to maintain PI01 condition type to represent costs to Ordering company code (in other words revenue to supplying company code). It is statistical condition type & meant for information purpose only.

Condition records for PI01 are created with the following key combination:

Ordering sales Org + Supplying Plant + Material

Pricing Procedure ICAA01is determined at Intercompany billing processing level.

Pricing Procedure ICAA01 – Pricing Procedure for Inter company billing is assigned to the combination of:

1) Sales Area (of supplying company code) + Document pricing Procedure of Billing document type IV + Customer Pricing Procedure of the Internal customer.

Pricing Procedure ICAA01 has condition type IV01 that represents revenues for Supplying company code in the intercompany billing.

PR00 condition type also appears in Intercompany billing document. It is for information purposes only and does not have bearing on the value of the document.

PI01 represented under pricing procedure RVAA01 is reference condition type for IV01 and the same is defined in the condition type IV01. Due to this these two condition types represent same value.

The condition type IV01 in intercompany billing document represents revenue to the Supplying Company. But its corresponding condition type PI01 in the billing document to the end customer is shown as a statistical item meant for information purposes.

Condition Type VPRS in the intercompany-billing document indicates cost to the supplying company code.

The use of two different condition types in Intercompany billing is necessary to ensure that data is transmitted correctly to the financial statement (Component CO-PA).

ILLUSTRATION:

STEP 1: Create Sales Order

Manually Enter the Delivery Plant of the Supplying Company Code:

OBSERVE CONDITIONS SCREEN FOR ITEM:

PR00 represents Price to the end customer (in other words, revenue for the ordering company).

PI01 represents cost to ordering company (in other words, revenue for the supplying company). It is represented as statistical item only.

DELIVERY:

Delivery is carried out from the supplying point & hence we can observe that it is done from shipping point assigned to the supplying point.

Subsequently, Picking & PGI are carried out.

BILLING TO END CUSTOMER:

T-Code: VF01

Create Intercompany Billing:

T-code: VF01

OBSERVE THE CONDITIONS SCREEN OF THE INTERNAL INVOICE:

IV01 Condition type represents revenue for the supplying company code.

VPRS condition type represents cost to the supplying company code.

PR00 in intercompany billing document displays amount billed to the end customer. It serves as just an information item and is inactive.

If the ordering company enters the incoming invoice manually, the delivering company can print out an invoice document with the help of output type RD00, which is then sent to the Payer.

If automatic invoice receipt has been agreed, we must use the SD output control functions to ensure that output type RD04 is found in internal billing. In R/3 system, output determination procedure V40000, which includes this output type, is assigned to Intercompany billing type IV.

The automatic posting to the vendor account is initiated when output type RD04 is processed. The system uses the EDI output type INVOIC in the FI variant.

To ensure that payables are posted in financial accounts of the ordering company, the delivery company must be created as a vendor.

Configure Inter company Stock Transport Order

Material should exist in both the plants (Delivering & Ordering),

Internal customer should be assigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.

Assign its Sales area to the delivering plant

Assign the document type and Delivery type NB and NLCC

Assign the Supplying plant --> Receiving Plant --> NB

Take the delivering plant and assign the sales area.

Vendor master has to be created and assaign the supply source ( Delivering Plant).

Create a purchase order ME21N ---> Save

Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign the purchase order number here and execute.

Select the Delivery creation line and do the back ground process.

Start the log display and see the delivery document number by the documents button

Goto VL02N --> do picking and PGI --> Then do the MIGO with

[Former Member]

hi

Also search in this forum u will get lot of information on Third party and inter company

regards