Intercompany idoc.

[Former Member]

Hi Friends,

Kindly explain how following configuration is achieved.

Intercompany invoice is created.

IDOC is created form invoice output.

IDOC is processed as inbound into the Account payable side for supplying company code.

Thanks

Shiv

[Former Member]

Shiv,

Below are the steps for the config required to post the IDOC that updates the AP.

Path for the config is SALES AND Distribution/Billing / Intercompany Billing..

Lets take with Example.

<b> SALES ORDER Sales area is 2000,10/10 And this sales org 2000 belongs to 0200 Comp code.

Shipping plant is 1000 and it belongs to Comp code 1000.

</b>

1. Assign Organizational units by Plant. : In this select "Assign Organizational Units to the Plants" : In this you have to assign the shipping plant to some sales org and distribution channel that it belongs to.

In our example 1000 belongs to 1000 comp code and so Assign the Sales org 1000 and Dis channel 10 .

2. Define Internal customers for each sales organization.: For the sales org 2000 create an internal customer # ad IC2000 and assign it here to the sales org 2000. .An inter-company billing document will be created for this customer.

3. Automatic Posting to Vendor Account. First create an internal vendor for each sales org that is used for selling the goods. eg. IV2000, IV1000.

In this config section select "Assign vendor"

In our case it is Logical Address- 1000IC2000 -

---

2000IV1000.

In the above case if the IV billing document was generated from the 1000 code for the customer IC0331 then the Posting document should be posted in the company code 2000 with vendor as IV1000.

4. Maintain the Output type RD04 should be configured properly with the Condition records and make sure the Output determination procedure "V40000" contains RD04 output and it was assigned to the IV billing type.

5. Lastly you need to maintain the patner profiles

a. For Outbound processing : with IC2000 customer and KU as partner, maintain the outbound Invoice processing config.with message control using SD08 as process code.

b. For inbound processing: WIth IV1000 Vendor and LI partner type maintain the Inbound Invoice processing config with process code as INVF .

This completes the Configuration process.

For your convenience..

*******************

Below is the explanation from SAP regarding the Automatic Posting to Vendor Account.

***********

Automatic Posting To Vendor Account (SAP-EDI)

In this activity, you set up automatic posting to vendor account for intercompany billing with SAP-EDI direct to financial accounting.

EDI outbound processing for intercompany billing links to EDI inbound processing for invoice receipt in FI and posting to vendor account is carried out in the selling company code.

prerequisites:

Before making the settings in Customizing you must create a vendor master record that represents the delivering company code. This vendor master record must be created in "Selling company code".

You also need an output condition record (transaction VV31) for output type "RD04" and the customers for intercompany billing.

Customizing settings:

1. Message type:

Message type RD04 is set for posting to vendor account in intercompany billing. (TA:V/040)

2. Message determination procedure:

Message determination procedure V40000 is valid for billing type IV.

3. Message control:

In the administration of EDI processing, a partner agreement must be defined for message control of inbound and outbound processing, since sender and receiver data are needed. The outbound process code is used to initiate a function module version 5 (function module version 3.0 for initiating inbound processing).

Process code outbound: SD08.

For further information on settings for messages, see the IMG section "messages".

4. Outbound processing:

a) Partner agreement (transaction WE20)

Partner number : Specify customer number IV

Partner type : KU

b) Message controlling:

Partner number : Customer number IV

Partner type : KU

Partner role : RE

Application : V3

Message type :RD04

Message:

Message category:INVOIC

Message variant: FI

Outbound options:

Outbound code : SD08 INVOIC Intercompany billing,

c) Outbound parameters:

Outbound options:

Receiver port : e.g. SAPP30 EDI MM development

IDoc cat. : INVOIC01

Basis IDoc cat. : INVOIC01

5. Inbound processing (transaction SBPT) for customer

a) Inbound parameters:

Partner number : Specify vendor number

Partner type : LI

Partner functions:

Message category : INVOIC invoice / billing document

Output variant : FI

Process code :INVF

6. Check assignment of process code and processing function modules.

Transaction: WE42 >>Basis >> Control>> Process code inbound >> Processing with funct. modules>>With or w/o ALE

Code :INVF

Identification:idoc_input_invoice_fi (INVOIC FI invoice receipt)

or

code FI03 up to 3.0E

Identification:idoc_input_invoice_fi

7. Vendor:

A vendor must be assigned per company code and customer for intercompany billing (transaction WEL1)

Example:

Data:

Delivering company code: 0001

Customer: 0000000001, created in delivering company code

Selling company codekreis: 0099

Vendor: ALECRED01, created om selling company code

Settings:

Application: V3

Logical address 00010000000001

is made up of:

a) 4 place delivering company code : 0001

b) 10 place customer number : 0000000001

Target:

Company code: 0099

Vendor : ALECRED01

Note

The logical address must contain 14 digits. If the customer number does not contain 10 digits, zeros must be put before it.

If the logical address is not correctly maintained in table EDILOGADR, error message: " Company code could not be determined for intermediate document XXXXX" appears.

8. Account assignment:

You can set an indicator that determines whether account assignments are to be copied from the customer billing document during creation of posting to vendor account in the selling company code

This affects the following account assignments:

9. Projects

10. Profit center

11. Cost center

12. Profitability segment

13. Business area

a) Partner Profit Center (delivering profit center)

The same settings must be made for the internal credit memo.

Regards,

Ajai

Don't forget to reward points if helpful.

[Former Member]

Hi Ajai,

In intercompany billing, please explain the use of the following step

Automatic Posting to Vendor Account (SAP-EDI)

I don’t understand how vendor comes into picture here.

As we know once customer order, material would be supplied to him from the plant of another company code. Then two invoices would be generated one for customer (F2) another as intercompany (IV).

Thnaks

Shiv

[Former Member]

Shiv,

Let me put it in this way.

Comp1 sold the goods to customer. Comp 2 delivered the goods.

So Comp 1 generates F2 invoices with payer as the Customer and

Comp 2 generates IV invoice with payer as the Comp1(Internal customer).

In this step you should understand some Accounting concepts, what happens exactly when you post an Invoice. With the creation of IV Invoice, the account receivables of Comp1 will be updated with the Invoice amt.(i.e Comp1 have an accounting doc that tells comp 2 needs to pay some amount ).

Now Comp 2 needs to pay that amount to Comp1 right.. How that should happen ? As both comp1 and comp2 belongs to same organization, we want these payments to be automatically posted.This is what we are doing through EDI. The IDoc that gets generated will create an FI Document in the comp 2 that pays(or clears) the amt to comp1.

When you are paying some thing, to whom you will pay?. its obviously to some one who provided the goods or services to you, right.. so while paying you need to use some vendor #(Who provides goods/services). As in this process there is no third pary involved we created an Internal vendor in comp1 and posted the payment from comp2 against him.

Regards,

Ajai.

[Former Member]

Ajai,

You mean to say, comp 2 deliver goods thats why becomes vendor for comp 1. Then comp 1 pay payment to vendor (i.e comp 2)

If that is the case why we use step to create internal customer.

Thanks

[Former Member]

Ajai,

Could it be possible to directly post invoice to ordering company code ( I mean ordering company code is customer for supplying company code), instead of creating internal vendor?

Thanks

[Former Member]

Shiv,

In the entire process, we are saying comp1 and comp2 as selling and delivering. But for accounting purpose, there should be some person associated to the transactions right..

That is why we create one of them as Internal Customer and another one as Internal Vendor.

Regarding your 2nd Question..

Could it be possible to directly post invoice to ordering company code ( I mean ordering company code is customer for supplying company code), instead of creating internal vendor?

IF you are trying to post the FI Document.,,,, who will be the receiver.. you need to enter some Customer/Vendor number right... what will you enter with out having the Vendor number.

Take the example of a personal checK.. there should be some persons name to whom we are giving it right.

Hope you got it..

Regards,

Ajai

Don't forget to reward points if helpful.

[Former Member]

Ajai, really good explanation!

please tell me how internal vendor is created ?

is it the same process whihc we use for creating vendor usually. (I mean we do creates vedore with vendor account group)

Thanks.

[Former Member]

Yes Shiv,

Create like a regular Vendor but with Account group 0007 (Plant).

Regards,

Ajai

[Former Member]

Ajai, I got my answer and definitely would reward you for that.

ple tell, <b>all this we discuss is about scenario where two company codes in one client OR two company codes having different client?</b>

Next if it is transaction between two company codes why do we use EDI-IDOC?

Why not ALE-IDOC.

Thanks.

[Former Member]

Shiv,

Here you are linking between EDI and ALE.. There is nothing much to worry about why to use one instead of another.. From IDOC point of view... there is nothing difference as far as you are communicating within a system.

Once you get acquaintance into EDI systems,, you will get clear picture..

Sorry I can't explain this one in a simpler way... Again it would become an EDI vs ALE discussion... which I think you are aware of..

[Former Member]

yes Ajay,

I am aware of that, thanks for guiding me. It was systematic, step by step explanation.

i reward point for you.

Anyway, where you based at ?

Thanks.

Shiv