sd: Intercompany business scenario

[Former Member]

Hi all,

can yu explain me the difference between:

Intercompany Sales Processing

Intercompany stock transfer

any other type of intercompany process

Third part process.

thanks in advance

[Former Member · Accepted solution]

hi cmm,

Third Party

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 following graphic shows how a third party business transaction is processed.

Individual Purchase Order - IPO

If you order products from a third-party vendor, who delivers the goods directly to you so that you can then deliver them to the customer yourself, this is called as IPO.

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

regards

sadhu kishore

[Lakshmipathi]

Dear cmm

1) Inter Company Sales

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.

2) Inter Company 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.

thanks

G. Lakshmipathi

[Former Member]

Hi,

Basically there are two types of intercompany transactions :

InterCompany Sales

Intercompany Stock Transfer

For Intercompany Sales -> allows a company to sell goods from a plant which is allocated to another company code. The system checks the company codes of the sales organization and of the delivering plant, and automatically carries out intercompany billing processing for different outcomes.

Two billing documents are created in this case:

A customer billing document - Sent from the sales organization to the customer who receives the goods.

An intercompany billing document - Sent from the delivering plant to the sales organization.

For Intercompany Stock Transfer -> Allows transfer of material between plants within different company codes.

Material leaves the plant from one company codes , and when goods receipt is done, comes under the inventory of the Recieving plant under different company code.

For this case, Intercompany billing document needs to be created , which further creates posts the Vendor invoice.

Reward Point if this helps.

Regards,

Harsh