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Thirdparty intercompany scenario in Business ByDesign

Third party intercompany scenario is used to sell stock to your customer to fulfill requirements by ordering products are not in stock from your partner company.


By reading this document you will see an example on how you can set this scenario on your system, how you will execute it, and of course, Common issues which you may face.

1. Prerequisites

2. Master Data

3. Executing the Scenario

4. References

5. Common Issues

6. Recording Link

1. Prerequisites

In Scoping, the following topics must be activated in following order

  • The Sell Standard Products business topic in the Product and Service Portfolio for Sales business package.
  • The Sales Orders business topic in the Selling Products and Services business package.
  • The Third-Party Procurement business topic in the Purchase Request and Order Management business package.
  • In the Purchase Requests business topic of the Purchase Request and Order Management business package, the scoping question Do you want purchase orders to be created automatically from purchase requests? has been answered with Yes.
  • You have to select the Purchasing Between Partner Companies business topic.


2. Master Data

  • Sending and receiving companies should be defined in your org structure.
  • The Products which you will use are activated for Sales and Purchasing on both companies.
  • A Valid contract or list price for one or more suppliers from which the product can be delivered has been created in the Sourcing and Contracting

        work center.

  • The product is assigned to a product category for which automatic purchase order creation is activated which is done in the Purchase Requests and Orders work center (Define Automatic Creation of Purchase Orders common task).
  • When you create a company on your system, you have a resultant business partner, which has the roles Account and Supplier.
    the output channel Internal EDX must be set for the following business documents in the Business Partner Data work center, on the Communication tab page, under Collaboration

  • For customer, you need to set the Internal EDX option for the fields "Sales Order Confirmation", "Advanced Shipping Notification Outbound" and "Customer Invoice/Credit Memo".

3. Executing the scenario

Your customer request XX ea of the product ABC from you company. Since you do not have enough stock to cover the demand, you order XX product ABC from your partner company to sell the same to your customer.


1. Create a sales order with account as your customer, sales unit and person responsible from your company however the fulfillment should be external (your partner company)

2. A purchase order is created with your partner company as supplier, your company as buyer, item type - third party, ship to greyed out, delivery to customer,

3. A new intercompany sales order  is created at partner company side with sales unit and employee responsible belong to your partner company, your company as account, ship to is to your customer address and fulfillment internal.

4. Upon releasing intercompany sales order at your partner company , an purchase order confirmation(purchase order acknowledgment) is created automatically at your company.

5. Create an standard outbound delivery against the intercompany Sales order at your partner company which in-turn will create third party delivery notification and third party inbound delivery against purchase order + third party outbound delivery against initial third party sales order at your company.

Note :

5.A) Actual delivery from your partner company to customer happens at this stage.

5.B) Two Outbound Delivery Invoice Request is created at the above step.

a.) One is for partner company to bill your company

b.) Another is for your company to bill your customer.

6. When your partner post customer invoice, the supplier invoice is posted automatically in the your company.

Note : At this stage Intercompany sales order and purchase order is changed for completed and finished respectively and intercompany scenario is executed completely.

7. As the final step, you will invoice your customer for the item delivered to him by your partner by posting customer invoice at your company.

Note: At this stage your third party sales order gets completed.

Unfortunately the system does not have a document flow which display all documents. Some documents will be hide depending of the perspective.

In the end, an third-party intercompany scenario should be as following:

4. References

In the Help Center you can find the following document which can be followed when setting or executing this scenario:

- Intercompany Stock Transfer

- Third-Party Order Processing

5. Common Issues

6. Recording Link

'Intercompany-TPOP & TPOP-Intercompany Scenarios in SAP Business ByDesign

https://service.sap.com/sap/bc/bsp/spn/esa_redirect/index.htm?gotocourse=X&courseid=70296303

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