give me the Configuration steps for intercompany billing and third party s

[Former Member]

Hi Gurus,

Give me the Configuration steps for intercompany billing and third party sales and give me a brief description with examples.

Regards,

YSR

[Lakshmipathi · Accepted solution]

Dear YSR

Check the links

[Cross Company Configuration|http://help.sap.com/bp_bblibrary/500/Documentation/J62_BB_ConfigGuide_EN_DE.doc]

[Third Party Without Shipping Notification|http://help.sap.com/bestpractices/BBLibrary/html/J55_ThirdPartyWOSN_EN_US.htm]

Third party order processing is as follows:

Assume three companies X, Y and Z

X - The company,

y - The customer

Z - Vendor

When ever X gets a PO from Y to supply some goods, X has an option of either manufacturing those goods or procuring those goods.

If he is procuring the goods, there are two methods that are generally followed:

Method 1)

After receiving the PO from Y, X creates a sales order against Y.

Now at the same time he also creates a PO to a vendor Z to produce the goods

Z produces the goods and supplies to X

X receives the goods from Z

Then X delivers the same goods to Y.

After that X invoices Y and Z invoices X.

Note : Here there is no direct/ Indirect relation between Z and Y.

This process is known as Trading Process. and the Material here is created with Material type HAWA.

The other method is a Third party order processing method:

Here the glaring difference is that instead of Z supplying the material to X and X in turn supplying the same material to Y.

X authorizes Z to supply the material to Y on his behalf and notify him once the delivery is complete.

Now Z supplies the material to Y and acknowledges the same to X.

Z will send a copy of delivery acknowledgement and invoice to X.

After receiving the delivery confirmation and invoice from Z, X has to verify the invoice and this process is known as invoice verification and is done in SAP through Tcode MIRO.

The next step for X is to create an invoice and submit to Y

Only after the invoice verification document is posted then only X can create an invoice for Y.

This is the business flow that is followed for third party order configuration.

There are few steps that have to be configured to enable the system to function as mentioned above.

Step1)

If you are always followwing a third party process for a material then you have to create the material using item category group BANS.

The procument type should be marked as External procurement (F) in MRP 2 view of the material master record.

if you are not always allowing third party order processing then u can create a material master record with item category group as NORM and the procurement type should be marked as ( X) meaning both types of procurment ( in house manufacturing and external procurement).

Step 2)

the item category in the order should be manually changed as TAS.

For that you need to confugure the item category determination

ord type + item cat grp + usge + Hiv level = Item cat + Manual item cat

OR + NORM + + = TAN . + TAS

OR + BANS + + = TAS

Step 3)

make sure that during the item category configuration for TAS you need to mark relevnat for billing indicator as F

Step 4)

The schedule line cateogry for this type should be CS.

make sure that you mark subsequent type as NB - purchase requisition in this schedule line category as this will trigger the purchase requision order immediately after the creation of the sales order and the PO to vendor is created against this purchase requiesion.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Lakshmipathy,

Can you please give the example and configuration steps for intercompany billing.

regards,

YSR

[Lakshmipathi · Accepted solution]

Dear YSR

STO is Stock Transport order. It is used for inter company transfer of goods. Plant to plant transfer and even transferring raw material to Third party contractors (Job Work).

The Process is you create a STO do delivery against the STO and create a Billing Document against the STO.

How to configure the inter-company Stock Transport Order? - Prassee

Material should exist in both the plants (Delivering & Ordering),

Internal customer should be assigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.

Tcode : OMGN

Assign its Sales area to the delivering plant

Assign the document type and Delivery type NB and NLCC

Assign the Supplying plant --> Receiving Plant --> NB

Take the delivering plant and assign the sales area.

Vendor master has to be created and assaign the supply source ( Delivering Plant).

Create a puchase order ME21N ---> Save

Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign the purchase order number here and execute.

Select the Delivery creation line and do the back ground process.

Start the log display and see the delivery document number by the documents button

Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery document.

Billing (Intercompany pricing conditions should be set).

Also please go through the link

[Inter Company Billing - Automatic Posting to Vendor Account|http://www.sap4u.com/documents/InterCompany_Billing_IDoc.pdf]

thanks

G. Lakshmipathi

[vamshikrishnajm]

Hi,

Please go through the link below.

Please search the forum.. you have lot of information on the above subject.

Thanks

Vamshi