Intercompany flow between two companies of same group

[Former Member]

Hi All,

can anyone give me some instructions or provide documentation about the intercompany flow ? If it is a replenishment or if it is a triangular trade with a shipment made by a plant of company B directly to the customer and the invoice is issued by company A.

We are using release 4.7 and in the same client we manage two different companies in different countries who are part of the same group.

We have implemented MM, SD PP and we are analyzing the opportunity to implement an intercompany flow by using sap.

Thanks in advance for your help

Regards

Vir

[Former Member · Accepted solution]

Hi,

Here is the illustration with config setting required for the scenario described by you,

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

Reward if helps

Manoj

[former_member198268]

Hi,

In an intercompany Sale,

1.The customer places a sales order at the sales company A. The goods must be delivered directly to the customer of Sales Company A from the plant of Company B.A sales order is created with Intercompany trade item category and the availability check is carried out for the plant from company B. The customer receives an order confirmation.

2.Deliveries are created via the delivery due list.

3.The goods and the delivery note are sent to customer.

4.An inter company invoice is created in the plant from company B and an invoice Idoc of type INVOIC FI is sent to the sales company. A statistical invoice sent to Sales company B. The invoice receipt is done automatically in the sales company A.Two billing types are relevant for inter company sales orders: Inter company billing from Company B to Company A and ZOF2 billing from Company A to the end customer. Both Billing types are delivery related and are running in Billing due lists.

5.The invoice to the customer is created via the billing due list. The invoice is send to the customer

Check List for the Inter Company Flow Configuration

Transaction Description

OVV8 Define order types for inter company billing

OVV9 Assign organisational units to plants

OVVA Define internal customer number by sales organization

VV31 Create output conditions, Billing.

VOE4 Blank

WEL1 Link Logical Address (company code + customer no.) to Company code Vendor

XK02 Change Vendor Master.

V/40 Set up output types for Invoice

V/31 Set up output control.

V/42 Set up output control, Billing

WE46 Global Parameters for IDOC interface.

WE21 Set up RFC port

WE20 Set up Partner Profiles (Done directly in Prod. system)

OBCA Assign Vendor no. to company code.

OBCB Assign Vendor no. to GL account.

OBCC

OBCD Assign Vendor Ext. Tax rate to Int. Tax code.

OBCE Assign Vendor to Tax calculation, Posting, Invoice doc. type.

OBA4 Set up FI Tolerance groups for use.

OBA3 Set up Customer/Vendor Tolerance.

OMR6 Set up Tolerance limits.

OVX6 Assign plant to sales organisation and distribution channel

V/06 Define condition types

V/08 Maintain pricing procedure

OVV3 Define blocking reason for billing

OVV4 Define blocking reason for billing

VOFA Create billing type

OVT0 Create customer account group

OVZC Define customer number ranges

VOPA Define partner functions

VTFL Copy control: Delivery note to billing document

[Former Member]

Hi Vir,

I worked in inter co plant transfers within the same co code if that is the question you are looking at then these are the following steps.

1) Assume Plant A wants to sell the goods to the customer but does not have the goods hence it will approach Plant B for it.Hence Plant A is the Receiving plant and Plant B is the sending Plant

2) Plant A will create stock transport order thru Me21n in this transaction code u need to mention the recieving and the sending plant along with the quantity of material and other details like the co code.

3) Once Plant A creates this stock transport order Plant B recieves the same it will create a delivery note thru VL10B and by using the stock transport order no the delivery document gets created,once it does the delivery it needs to do the picking & packing and also do the Post goods issue since it is sending goods to Plant A

4) Plant B also needs to raise an excise invoice since remember there is movement of goods which has gone out from Plant B to Plant A whenever goods leave your plant the excise invoice needs to be created thru Tcode J1IIN.

5) Plant A once it recieves the goods needs to do a goods reciept thru T-code MIGO, movement type is 101 in migo u need to specify plant, storage location, quantity,the same is done since it is recieving goods frm Plant B.

Reward Points if this helps...

Atul Keshav

[Former Member]

Hi Brown,

I am visualizing a typical 3rd party Sales Processing in your details provided:

1) Create a SO in company A for the customer

Make sure a 3rd party item category is determined

Let it create a Purchase Requisition of 3rd party item category and account assigned to the SO# above.

2) MM guys in your project should be smart enough to handle the appropriate procurement process. ie, the source list should be so designed that the requirement came from SO# should be assigned to a plant of another company code as you explained, under company code B.

3) The Purchase Requisition gets assigned to the "Vendor" defined for your supplying plant of company code B.

4) When this PR is converted into PO, it is actually an intercompany purchase order which takes care of everything a standard intercompany PO should.

The rest of the process what you explained is a cake walk for SAP within its standard solution. No big change you are asking in this solution rather, it is just Standard. In case of any ambiguity and if you are stuck with any part of the solution in this you may contact me....

Reward if it helps!

Regards

[Former Member]

Hello Brown,

The second option is what we are using. We also have lots of Manufacturing plants world wide.

It works this way out. Company A would take orders from customers, and creates a Purchase order in turn to the manufacturing plant, which would supply the goods to customer once they are manufactured. The manufacturing plant creates an Intercompany invoice to company A which inturn creates an Invoice to the customer.

This is the top view of the most intercompany Scenario.

Reward points if Helpful.

Thanks

Murtuza.