Inter Company Billing

[Former Member]

Hello All,

I have a question in Intercompany billing....

I understand that based on the configuration of "Assign Organizational Units by Plants" the system determines for which sales org to create the intercompany billing document.

But I see that in the configuration one plant can be assigned to only one combination of Sales Org and Dist channel and Division.

My question is what if one plant is relevant for Intercomany billing to multiple Sales org, Dist channel and Division ?

Is it to be maintained in "Assign Organizational Units to the External Plants" ?

Appriciate any help in this regard.

Thanks,

Raj

[Former Member · Accepted solution]

Raj,

Let me explain you the importance of the step "Assign Organizational Units by Plants" ..

It is to identify the internal customer number of the selling plant by looking at the sales organization to which the Plant was assigned to, and get the customer associated to the sales org.

Think at the company code level not at the sales org level. In an order when ever the delivering plant belongs to the other company code then system tries to pick the internal customer to whom the Invoice need to be sent, and the associated vendor to which the internal payment need to be posted to.

So in the selling company if the plant was associated to multiple sales organizations, We need to maintain the main sales organization under which this inter-company sales need to be accounted into. The system can identify it as an inter company transaction by looking at the delivering plant which belongs to difft company code.

Hope you should be clear. Please let me know if you have any concerns.

Regards,

Ajai.

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[Former Member · Accepted solution]

Hi Ajay,

Thanks for your reply....

I understood what you are saying but my question is can we configure the system as in the below example...

There are three Company codes in different countries 1000/2000/3000 , corresponding plants - 1000/2000/3000 and the corresponding sales org 1000/2000/3000. Now my question is ...can we configure the system so that plant 1000 can act as relevant for intercompany billing for both the CC 2000 and 3000 ?

Thanks again ...

Raj

[Former Member · Accepted solution]

Raj,

Its quite possible.Its common scenario at any company.

In the config the plant 1000 will be defined with the Sales area belonging to the company code 1000.

and the other company codes 2000, 3000 should have their own sales orgs with proper internal customers defined eg, IC2000 and IC3000 respectively.

When ever the sales orgs 2000 or 3000 places an order with the materials that belongs to plant 1000, an inter company billing document would be triggered by the company code 1000 for the internal customer IC2000 and IC3000.

Regards,

Ajai.

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[Former Member · Accepted solution]

Thank again for your reply. Appriciate it.

But I think we are missing someting here...

Based on your previous mails this is what I understand...

Based on the plant the system determines the selling sales area. Then determine the Internal customer number assigned to the sales org determined.

Since in the configuraton "Assign Organizational Units by Plants" one plant can be assigned to only one sales area, how does the system determine if it has to pick internal customer number of 1000 or 2000 or 3000 ( Also, one sales org can have only one internal customer number only)?

Am I missing something ?

Thanks Again...

Raj

[Former Member · Accepted solution]

Raj,

Let me put in another way.

--> Sales order was placed on sales area 2000/10/10 to customer XYZ ( External customer ) with material MAT1, delivered from plant 1000 ( which belongs to company code 1000)

---> Delivery will be created .

---> Customer XYZ will be invoiced with regular invoice type F2 by the sales organization 2000, and they will get the entire cash from the customer.

--> But major percentage of this cash belongs to the sales organization 1000 as the material was shipped from there.. The plant company code 1000 ( one to one mapping with Plant ) will create an Inter company invoice to the internal customer of 2000 sales org( IC2000) .

Now the main questions answer :---- The sales area that you define in the config for the plant is " the Sales area under which the inter company sales is happening " . In this case the sales is happening between company code 1000 and company code 2000. In SD every sale should come under a sales area right.. so here its between sales area of 1000 company code ( 1000/ XX/XX that u define in the config) and (2000/10/10 - on which the order was placed). Hope you got it.

Regards,

Ajai.

[Former Member · Accepted solution]

Hi Ajay,

Thanks again for your reply... Really appriciate it..

Your explanation is perfect when Two Company codes are involved. What if third CC say 3000 ( sales area 3000/10/10) also orders goods from 1000 ?

In that case

1) How does the system determine sales area 3000/10/10 as plant 1000 is assigned to sales area 2000/10/10 already and each plant can be assigned to only one sales area ( under customization "Assign Organizational Units by Plants" ) ?

2) Now since in the configuration plant 1000 is assigned to sales area 2000/10/10 only, even when the order is placed by 3000/10/10 internal customer maintained for 2000 is determined instead of internal customer number of sales org 3000.

I think its a valid question...

Appriciate your effort..

Thanks,

Raj

[Former Member · Accepted solution]

Raj,

First thing, "Assign Organizational Units by Plants" is used to assign Delivering Sales area to the plant and not the Ordering sales area. Various ordering sales area might order from the same plant but the delivery sales area for the plant would be the same.

Giving an example

Plant 1000 would be assigned to the Delivering sales area 1000/01/01

Now when Ordering sales area 2000/01/01 places an order to the plant 1000, the delivery is carried out from the plant 1000. Now plant 1000 needs to bill sales area 2000/01/01. To create billing document, we need two main info..customer and delivering sales area..

- Customer comes from the intercompany customer maintained against the Ordering sales org 2000 in the config

- Delivering sales area comes from the "Assign Organizational Units by Plants" i.e 1000/01/01

When Ordering sales area 3000/01/01 places an order to the plant 1000, the customer is picked up from the intercompany customer maintained against the Ordering sales org 3000 in the config. The delivery sales area is the same 1000/01/01 which comes from the "Assign Organizational Units by Plants"

Hope it makes clear to you. Let me know if any questions.

Regards,

[Former Member · Accepted solution]

Thanks Sagar,

Your explanation made more sense than what I was thinking..

I will will try to configure the system accordingly.

Thanks Again for your help. Appritiate it!

Raj

[Former Member · Accepted solution]

Raj..

Looks like you are thinking in wrong way.

in your reply 2nd point.

"2) Now since in the configuration plant 1000 is assigned to sales area 2000/10/10 only "

its wrong.

THe configuration would be for 1000 plant would be assigned to sales area 1000/xx/xx . It represents the company from which the goods are being delivered.

I hope rest of the things you got perfectly..

Regards,

Ajai.

Don't forget to reward points if helpful.

[Former Member · Accepted solution]

Thanks Ajay for all your time and effort explainig me this concept. I get it now.

Appritiate it !

Thanks Again

Raj

[Former Member]

Hi Raj savi

Here is the step by step to configure intercompany.

Step: 1

DEFINE ORDER TYPES FOR INTERCOMPANY BILLING

Path: IMG -- SD-Billing -- Intercompany Billing -- Define Order Types for Intercompany Billing.

Step: 2

ASSIGN ORGANISATIONAL UNIT BY PLANT

Path: IMG – SD --Billing -- Intercompany Billing -- Assign Organizational unit by Plant

Step: 3

EXTEND CUSTOMER

Extend a customer of for eg.us05 sales organization i.e. eg.7000006001 to sales org. in customer master data. This is the customer who is actually ordering for the material.

T-code: Xd01

Step: 4

ASSIGNMENT OF SALES ORG - DISTRIBUTION CHANNEL -PLANT

Path: IMG -- Enterprise Structure – Assignment -- SD

Step: 5

Create Customer and assign customer number to Sales Org ie e.g. 100358 (payer) This customer is nothing but the corporate office. We assign a customer no. to the corporate office. This corporate office will be assigned as an internal customer.

T-code: Xd01

Step: 6

DEFINE INTERNAL CUSTOMER NUMBER BY SALES ORG

Path: Img – SD --Billing-intercompany billing -- Define internal customer number by sales org

Step: 6

MAINTAIN CONDITION RECORD T .C

T-code: VK11 -- PI01

Here we maintain the price for intercompany that is for the corporate office.

Step: 6A

T-code: VK11—PR00

Maintain a condition record for material eg. sales org-US05 and dc- U4.

This PR00 is for the customer who is actually ordering the Material.

Step: 7

Create Sales Order

T-code: VA01

Then do delivery and Billing

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[Former Member]

Hi Raj Ravi,

INTERCOMPANY BILLING PROCESS

Intercompany Billing:

Go through the explanation given below with test cases.

Business case: -

Customer orders goods to company code/Sales organization A (Eg.4211/4211).Sales org 4211 will accept and punch the order in the system with sold to party as end customer code in the system. Company code/sales org B (Eg.4436) will deliver the goods to end customer and raise an intercom any billing on 4211 with reference to delivery. This can happen only after 4211 raises invoice to his end customer to whom the material has been delivered by 4436.

SPRO Customization required:-

1. Assign plant of delivering company code (Eg.SI81) to sales org/distribution channel combination of ordering company code (Eg.4211/RT)

2. Maintain intercom any billing type as IV for sales document type OR

3. Assign Organizational Units By Plant (Eg.SI81/4211/RT/11)

4.Define Internal Customer Number By Sales Organization (Eg.4436 will create customer master for 4211 company code and that number will be maintained in this relationship:-4211/231)

5. Automatic posting to vendor account (Optional)

6. Maintain pricing procedure determination for 4211/RT/A/1/RVAA01-For customer sales and billing

Maintain pricing procedure determination for 4436/RT/A/1/ICAA01-For intercompony billing

Master data to be maintained:-

1. Create end customer master in company code/sales org 4211/RT/11

2. Create customer master for 4211 company code/sales org in 4436/RT/11

3. Maintain PR00 as price for end customer-Active in RVAA01

4. Maintain PI01 as price which has to be paid to 4436-Statistical in RVAA01

5. Maintain IV01 as inter-company Price-Active in ICAA01

Process:-

1. Create OR with sold to party as end customer.

2. Plant to be selected is delivering plant belonging to different company code. With this selection system will treat this order as intercomany sales.

3. Pricing procedure is RVAA01

4. With reference to this order delivery will be created from the delivering plant and post the goods issue for this delivery.

5. Ordering sales org will create billing document F2 with reference to delivery for end customer.

6. Delivering sales org will create intercompany billing IV with reference to delivery document.

Following link

http://help.sap.com/saphelp_46c/helpdata/en/e6/4a6dc89e0311d189b70000e829fbbd/frameset.htm then go to special business transaction n click on intercompany sales processing.

http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b911d43ad11d189410000e829fbbd/content.htm

http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b917843ad11d189410000e829fbbd/content.htm

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Former Member]

Hi Vijay,

Thanks for your reply.

But my question is... what if we have one plant serving for two different sales orgs for the purpose of intercompany billing.

For example, how do you configure the system to make one plant 1000 relevant for intercompany billing for sales areas 1000/10/10 and 2000/10/10 both.

I am seeing that one plant can be assigned to only one sales are in customization SPRO -> SD->Billing->Intercompany-> Assign Organizational Units By Plant.

Can you please help?

Thanks,

Raj