Cross company sales

[Former Member]

I just implemented the standard SAP process called 'Cross-Company Sales'. My Finance people are complaining that there is no posting to the Cost of Goods Sold GL account in the ordering company. There is a posting to Cost of Goods Sold in the delivering company at goods issue, but not in the ordering company at any point in the process.

How would I create a posting to COGS in the ordering company?

[Former Member]

Hi Mohsin

I had done similar process for one of my Clients and even they wanted the posting in "Purchasing" plant of COGS.

But logically speaking there is no "Purchasing" happening over here. A Sales Organisation is placing an order on B Plant and the B Sales Organisation after supplying the goods (COGS entry) is raising an invoice on A Plant (Intercompany Dr, Revenue Cr.). Once the goods are shipped to the Customer A Sales Organisation can raise an invoice on Customer (Customer Dr, Revenue Cr.)

In the meantime once the invoice is received from B Sales Organisation the Invoice Receipt takes place (Vendor Cr., Stock Cr). Entries happen.

I just would like to know

How can a COGS entry happen in the Receiving Plant (If the receiving plant is at no point in physical possession of goods)

Regards

Sunil

[Former Member]

Hi Sunil,

well the entry is raising on ur side but its not raising from my....can u please send me setting for that so i can apply on it and try to see if there is any entry raise on my side too or no? Plz it would be a great help for me......

Regards,

Mohsin

[Former Member]

Dear Friend,

I have done all the things.....but is there any setting going to be done by BASIS side? coz its very important....Plz help me on that.....

Regards,

mohsin

[Former Member]

Dear All,

I treid really hard for the COGS but i failed.....i also maintaining the rd04 in the in the intercompany but its not showing in the accounting document....only one entry is there.....company A is debit and sale is crdit....i just want to that where COGS entry is creating....is it will create in the same accounting document in the intercompany or its creating some where else dat i dont know......can u please explain me? Thanks once again....

Regards,

Mohsin

[Former Member]

Hi Mohsin,

You need to make certain settings in Customizing for billing document copying control at item level, if you want the cost for the billing document to be taken from the vendor invoice with proportional conditions. The quantity indicator in the billing document’s document flow then controls where the cost comes from. Activate indicator F in the Billing quantity field (billing quantity equals goods receipt quantity minus quantity already billed).

All the best.

Regards,

Vishal

[Former Member]

hello guys,

i have done the invoice with the setup of RD04 but still the COGS is not workin for company A........can any one tell whats the configration for RD04.......and one more i want to know that accounting document will create in the intercompnay accounting document or it will create some where that i might dot know.....can u please help me on this.....? i will be very thank full to u......

[Former Member]

I have done this thing also but intercompany invoice is only making one entry.....and its not making payable entry.....wht should i do more?

[Former Member]

I really appreciate for your answer.....but RD04 is not working......can anyone give me the configration for this RD04.....? so it will be very help for me.......

[Former Member]

HI,

In your scenario you are creating two Billing documents. Normally they will be document type F2 for customer billing and IV for Intercompany billing.

From document type IV, trigger output RD04 to post the Intercompany AP side of the posting (configure using Intercompany EDI settings from SPRO). This is where you should be posting to the COGS account.

Regards

[Former Member]

They are saying that where this entry is.....

Purchasing -

---

>DR

To Factory -

---

>CR

Please help me on this situation

Regards,

[former_member417490]

The payable for the ordering company will be generated from the condition type that is assigned to the ordering company (PI01) which is the intercompany price and for the supplying com[any that will be generated from IV01 which is the reference condition type and picks data from PI01 condition type.

PI01 (ie intercompany price is assigned to ordering company) ZIv1 is reference condition type to(PI01) and is assigned to selling company.

Moreover the supplying plant is maintained in the ordering sales area so ,material document will be created in supplying c.code.

In ordering c.code cogs will be derived from pI01 as that is the cost of the item. that is it will come from the invoice.

[Former Member]

Every thing is fine but my finance people ask that from where the payable will be genrated for the order company...... well when making the good issue from the delivering plant the enteries posted are

COGS --->DR

Stock----

---

> CR

And then two invoice has been generated one for the customer from ordering compnay and second invoice will be the intercompany invoice.....

The entries are for the ordering company is:

Customer -

---

> DR

Sales -

---

>CR

The enteries for the intercompany is:

Ordering Company -

---

> DR

Sales -

---

> CR

Now they are saying the where is the payable for the ordering company......and they are saying that it should have to be generated......

Please advise that wht should be done.....

Regards,

Mohsin

[Former Member]

Here you go,

You came with the right question. I thought the same yesterday.

You missed the configuration for the Vendor invoice posting.

Once you create the inter-company invoice (IV) it will create an EDI INVOIC Idoc and will park the Vendor Invoice in the ordering company.

Please refer this thread.

or

Go through the last 2 steps in the below inter-company billing process..

1. In the sales order document type in the Billing tab, enter the Inter-company billing doc as IV. (VOV8).

2. In the Copy control of Delivery to Billing (VTFL) , Maintain the header copy control of the Delivery type (LF) to Inter company Invoice IV.

3. In the item level, Maintain the copy control for the item category that is relevant for our process, we can copy this from the standard one TAN or TAW.

4. Maintain the copy control for IV Billing

5. Define Order types for the Intercompany Billing.

6. Assign Organizational units by Plant. ( Assigning the Shipping plants to particular sales organization and distribution channel)

7. Define Internal customers for each sales organization.. An intercompany billing document will be created for this customer.

8. Automatic Posting to Vendor Account. Assign the Vendor for automatic posting of the Account payables.

Eg. Logical Address- 0010IC0331 -

---

0331IV0010

In the above case if the IV billing document was generated from the 0010 code for the customer IC0331 then the Posting document should be posted in the company code 0331 with vendor as IV0010.

9. Configure the RD04 output type for IV billing document which will park a vendor invoice through EDI.

Regards,

Aj

DOn't forget to reward points if helpful

[Former Member]

Please any one can help me on this situation....

[Former Member]

Dear Parsad,

My scenario is that customer give order to Company A (Sales order is made in Company A) and Company A dont have the material (where they change the plant from 1000 to 2000 for company B in the sales order)they send the customer to Company B to pick the material now the PGI is being in Company B. Two invoice will be made one will be from company A to the customer and second will from company B to Company A.

Now there only one COGS is posted in Company B only. So i want to know which COGS should be posted to Company A. My Finance people and the client are complaining that there is no posting to the Cost of Goods Sold GL account in the company A. There is a posting to Cost of Goods Sold in the delivering company B at goods issue, but not in the ordering company A at any point in the process.

How would I create a posting to COGS in the ordering companyA?

Please help me on this matter.Coz we r go living on march 1st.

Thanks & Regards,

Mohsin

[Former Member]

Mohsin,

The COGS account will be hit only in the Delivery company code. It doesn't make any sense to post something into COGS Account in the company code that doesn't deliver any goods but just sold the goods.

In your example.. Company B delivered the goods and so COGS account will be posted in Company B.

For Company A only the Sales G/L Account will be posted no COGS will be posted.

Please check with the business exactly what they are expecting, I'm sure 2 COGS G/L can't be updated in two company codes for one transaction.

Regards,

Aj.

Reward points if helpful.

[Former Member]

Hi Mohsin

in Cross Company Sales.

For Ex: Company A is ordering Goods 10 will raise PO

Company B is selling it to Company A will raise sales order, when PGI the COGS is done at Supplying Plant level which is Company B. when they do GR in Company A it will update the Goods Receipts G/L Accounts.

Prasad