Introduction to SAP S/4HANA Advanced Intercompany Sales

[MIAOMIAOHU]

SAP S/4HANA Advanced Intercompany Sales is a robust solution designed to streamline and optimize the sales processes between affiliated companies within a corporate group. This functionality is particularly useful for organizations where a local sales office sells products to external customers, but the goods are delivered directly from a producing company or a central warehouse. The process ensures seamless integration between sales, procurement, delivery, and billing operations, enabling efficient intercompany transactions.

Business Process Overview

The Advanced Intercompany Sales process involves the following key steps:

1. Sales Order Creation: A standard sales order is created by the selling company for an external customer. The system automatically identifies if the delivering plant belongs to a different company code, making the order relevant for intercompany processing.
2. Intercompany Purchase Order: Upon saving the sales order, the system generates an intercompany purchase order in the selling company. This purchase order is directed to the delivering company, which is responsible for supplying the goods.
3. Intercompany Sales Order: The delivering company receives the purchase order and creates an intercompany sales order. This order is used to manage the internal transaction between the delivering company and the selling company.
4. Delivery and Goods Movement: The delivering company processes the outbound delivery and ships the goods directly to the external customer. The system manages the goods movements, including the transfer of goods into and out of stock in transit, ensuring accurate inventory tracking.
5. Billing: Two types of invoices are generated:
• Customer Invoice: The selling company bills the external customer for the goods delivered.
• Intercompany Customer Invoice: The delivering company bills the selling company for the intercompany transaction.
6. Invoice Verification: The intercompany supplier invoice is verified against the intercompany customer invoice to ensure accuracy and compliance.

Key Features

• Real-Time Integration: The process is fully integrated into the SAP S/4HANA value chain monitoring framework, allowing real-time tracking and monitoring of each step.
• Valuated Stock in Transit: The system uses valuated stock in transit to manage the transfer of goods between affiliated companies, ensuring accurate financial reporting and inventory management.
• Automated Workflows: Many steps, such as the creation of intercompany purchase orders and sales orders, are automated, reducing manual effort and minimizing errors.

Setup Steps

To enable Advanced Intercompany Sales in SAP S/4HANA Cloud Public Edition 2502, the following setup steps are required:

1. Enable the Process: Activate the Advanced Intercompany Sales process (scope item 5D2) through expert configuration. This involves enabling specific pre-delivered configurations.
2. Assign Purchasing Organization and Group: Assign a purchasing organization and purchasing group to the sales organization of the intercompany sales order.
3. Configure Pricing: Set up pricing independently for the delivering and selling companies. This includes defining pricing procedures and condition types for internal and external customers.
4. Define Transfer of Control Dates: Configure the internal and external transfer of control dates to manage the timing of goods movements and revenue recognition.
5. Monitor Value Chains: Use the Monitor Value Chains app to orchestrate and monitor each step of the intercompany sales process.

Analyzing the Process

To analyze and resolve issues in the Advanced Intercompany Sales process, you can use the following tools:

• Sales Order Fulfillment - Analyze and Resolve Issues App: This app helps identify and resolve issues that may impede the fulfillment of sales orders. It provides insights into critical stages of the process and facilitates collaboration with relevant contacts.
• Monitor Value Chains App: This app offers a comprehensive view of the entire intercompany sales process, allowing you to track the status of sales orders, deliveries, and invoices.

Conclusion

SAP S/4HANA Advanced Intercompany Sales provides a comprehensive solution for managing complex intercompany sales processes. By automating key steps and integrating them into a unified framework, it enhances efficiency, accuracy, and visibility across the supply chain. Proper setup and configuration, along with the use of analytical tools, ensure smooth operation and timely resolution of any issues that may arise.

[erickgoulardt]

Dear Colleague,

I hope you find yourself well!

Thank you for joining the community.

I am adjusting the tags.

Best Regards,
Erick Goulardt
SAP Support

[Thierry-Navez]

For countries that need e-invoices to transit to government: how would you manage the incoming vendor invoice (B2B message) coming back from a government: cfr SDI in Italy, or Peppol, or other future site in France from 2026... The SAP note 3366067 explaining the restrictions for advanced intercompany sales explains that we cannot avoid the automatic intercompany supplier invoice even if the it has to come officially via a B2B message from tax authority. I think it makes sense to keep the sap automatic invoice (to use all available infos to generate the parallel valuation for group valuation needed for interco flow).but we should probably link into the official invoice coming back from Tax authorities: either via a transit account or whatever ==> shouldn't we improve our standard set-up to make it possible. This question is of course valid also for "old" classic interco vendor invoive generated with an idoc. I am looking forward to reading you.

[erpr3]

Is Multi-level Advanced intercompany sales and stock transfer process available now? If yes, then from which release or FPS beginning can be available?

[preben_holstnielsen]

Great post. When is the Advanced intercompany, Stock Transfer multi-stage planned to be released ? Can't find it in the Roadmap explorer.