Classic intercompany sales and return with MTO process

[Feng_Chen]

Overview

Before S/4HANA CLOUD 2408 Version, there is one Note:3334657 shows E-stock didn't support intercompany return business process (SI:2F4)

After 2408 Upgrade, the limit is fixed. Now you can successfully use the classic intercompany sales and return business with MTO process. This blog shows the process example and some key points.

System Behavior

• Classic intercompany sales with MTO process

1. Create Sales Order, order type OR.

Choose Goto-> Header-> Billing, field Tax Departure C/R choose US(the same country as sold-to-party)

Select Goto-> Billing Plan

Check the condition type of intercompany price, PI01 or PI02

2. After create SO, please follow the SI:BJE (Make-to-Order Production - Finished Goods) to finish the MTO process steps. You could download the test script in SAP for Me.

Finish the steps in BJE:

• Material Requirements Planning for Sales Order
• Create Production Order
• Release Production Order
• Pick Components
• Confirm Assembly Activities
• Post Goods Receipt for Production Order

3. Create Outbound Delivery, finish the picking and post good issue steps.

4. Create the customer billing document based on sales order billing plan, billing type F2

5. Create the intercompany billing based on outbound delivery, billing type IV.

Check the IDOC in output item

6. Check the journal entries of vendor invoice created automatically via IDOC

• Classic intercompany return with MTO process

1. Refer to SI:2F4, create intercompany customer return based on sales order, APP: Manage Customer Return.

In line item, Refund choose Credit Memo

Note: Refund "replacement product" is not support for MTO products.

Choose Save and Release, check the workflow, the return delivery and credit memo request created automatically.

2.Picking and post good issue the return delivery.

3. Perform material inspection, APP: Enter Inspection Results - from Warehouse

4.Create credit memo based on credit memo request, billing type G2

5. Create internal credit memo based on return delivery, billing type IG

Check IDOC in output item

6. Check the journal entry of vendor credit memo created automatically via IDOC

Prerequisites Implementation

You have to finish all the steps in 1HO Set-up instructions first.

There are some additional key points about IDOC:

1.OPD, without this the IDOC will fail to create

2.Make setting for posting, select the field Tax Jur.Code Transf.

3. Assign G/L Accounts, you need create additional assignment for Valuation Class 7920(Finished Goods)

4. Assign Tax Codes

5.OPD for return process

Many thanks