Advanced Intercompany Sales & Stock Transfer in SA... - Page 2

Gerhard_Welker · ‎2022 Jun 27

Last updated: 2nd December 2024

Today, I would like to introduce you to an amazing solution that you as our customer have desired for a long time, the Advanced Intercompany Processes. If you cannot wait, then check out the magic in this system demo here already.

Table of content (for quick access, just click on one of the business area links):

Value Chain Monitoring Framework (VCM)

More Information / Additional links

Overview

Business Reasons for Intercompany Processes

A split between the entities handling sales and production is often needed for various reasons. This leads to the need to support Intercompany Sales:

Separate risks between domestic and international sales and production
Easier local and regional sales
Tax advantages
Safeguarding of brand
…

Intercompany supply chains are spread across various localizations and lead to the need of Intercompany Stock Transfer between group legal entities to run company value chains

Production plants close to raw materials
Leverage local advantages on company group level (labor costs, free trade, and industry zones, …)
Tax advantages
…

Most SAP customer companies with two or more company codes need Intercompany Processes.
Intercompany processes are a must for:

All manufacturing industries
All companies running on a dedicated internal supply chain

The Advanced Intercompany (ICO) processes

Supports first E2E SAP standard processes for ICO
Supports process automation
Reduces TCO for customers as this standard process relieves them of custom developments, maintenance and upgrades

(🔙Table of Contents)

Financial Drivers

Classic intercompany processes (such as scope items 1MX, 1WO, 1P9) are in maintenance and the advanced processes are the clear way forward. Especially from a financial perspective, there are compelling benefits that every CFO should be aware of:

Must-have for Group Valuation (5W2) and End-to-End Value Chain Analysis

The advanced intercompany processes make use of valuated-stock-in-transit goods movements. It therefore supports
Financial value chain integrity and transparency

Supports automatic, event-based COGS and revenue recognition in line with IFRS15 matching principle
Real-time consolidation between the affiliated companies with the margin eliminated at group level
Includes actual freight costs with integrated transportation management (TM)
Enables cost components split with Universal Parallel Accounting (UPA)

Important: Technically, if you have activated scope item 5W2 (Group Valuation) the system will not allow you to activate classic intercompany processes in Public Cloud.

For more information watch the video:

Advanced Intercompany Process in SAP S/4HANA and SAP S/4HANA Cloud (ondemand.com)

(🔙Table of Contents)

New Best Practice Processes

With the continuous feature delivery 2202.3 for SAP S/4HANA Cloud Public Edition we launched two new scope items for the Advanced Intercompany processes:

With the 2022 release for SAP S/4HANA Cloud, private edition and SAP S/4HANA we launched the new scope item

Advanced Intercompany Sales (‏5D2‏)
For SAP S/4HANA Cloud, private edition and SAP S/4HANA there is no scope item for Advanced Intercompany Stock Transfer available

(🔙Table of Contents)

Process Activation and Restrictions

The Advanced Intercompany Sales process is per default disabled for the standard document types and item categories.
To activate the Advanced Intercompany Sales process, specific configurations must be enabled through an expert configuration request. Some configurations have to be done by the customer.
For further details read the Set-Up Instructions document that you will find in the details section of the scope item Advanced Intercompany Sales (‏5D2‏).

Currently the process can be activated for item categories TAN and CBXN.

The release restrictions for Advanced Intercompany Sales are described in SAP note 3192584.
Also the scope item Advanced Intercompany Stock Transfer (‏5HP‏) provide a Set-Up Instructions document.
Regarding SAP S/4HANA Cloud Private Edition and SAP S/4HANA read the great blog posts from Kazuhisa Iwamoto with detailed information about the set up:

(🔙Table of Contents)

Release Information

Advanced Intercompany Processes are available with

2202.3 release for SAP S/4HANA Cloud Public Edition
2022 release for SAP S/4HANA Cloud Private Edition and SAP S/4HANA (see blog post Highlights for Supply Chain in SAP S/4HANA Cloud, private edition and SAP S/4HANA | 2022 Release)

So this blog post is relevant for SAP S/4HANA Cloud Public Edition, SAP S/4HANA Cloud Private Edition, and SAP S/4HANA (on premise).

Further developments since first launch of the Advanced Intercompany Processes:

With the 2308 release, the new configuration activity Configure Posting Date for Advanced Intercompany Invoices (ID 106441) is available (see blog post Supply Chain in SAP S/4HANA Cloud, Public Edition 2308).

For more information read the PDF documents that you will find under 'Attachments' in the SAP Notes listed at the end of this blog post in chapter More Information / Additional links. These documents are kept constantly up to date.

(🔙Table of Contents)

Outlook

The first launch of the Advanced Intercompany processes covers the scenario for Single Level / Single System that is explained below. In addition, it is planned to extend the Advanced Intercompany processes also to cover the scenario for Multi Level / Single System with one or more additional Intermediate Companies between the Selling Company and the Delivering Company. This is a subject to be changed.

With the 2502 release in Q1 2025 it is planned to support basic advanced intercompany sales processing with make-to-order (MTO) and advanced variant configuration (AVC). For more details check out the roadmap item Advanced intercompany sales: basic make-to-order process with variant configuration.

(🔙Table of Contents)

Intercompany Sales

Classic Intercompany Sales - Single Level / Single System

First let us have a look on the classic intercompany sales process. For example, a local sales office sells to a customer and the goods are delivered from a plant, which is assigned to another company code, directly to the customer as shown in the next figure.
Starting point of the process is the purchase order of an US customer (step 1) that triggers the creation of a sales order in the US selling company (step 2). The US selling company triggers directly the outbound delivery in the German delivery company (step 3). The US customer receives the goods directly from the physical warehouse in Germany, but the invoice is issued by the US selling company. During the process no valuated stock is created in the US selling company and business documents like the purchase and sales order between the affiliated companies are missing.

Fig. 1: Classic Intercompany Sales - Single Level / Single System

(🔙Table of Contents)

Advanced Intercompany Sales - Single Level / Single System

The process for advanced intercompany sales provides functions that allow two affiliated companies to participate in a single intercompany process, such as the following:

A local sales office sells to a customer. The producing company delivers the goods directly to the customer.
A local sales organization sells to a customer. A central warehouse delivers the goods.

A standard sales order can initiate the entire process, which is integrated into the value chain monitoring framework. To orchestrate and monitor each process step, this business processes makes use of the Monitor Value Chains app.

Fig. 2: Advanced Intercompany Sales - Single Level / Single System

What are the key features of the Advanced Intercompany Sales process?

It is a seamless E2E process that is highly automated and embedded into the following areas:

Product Compliance
Trade Compliance
Profitability Reporting across legal entities
Support of IFRS 15 compliant revenue recognition and COGS postings
Product Costing
Group Reporting / Consolidation

Changes in customer-facing sales order are possible and automatically managed by the system.
Valuated Stock in Transit in the Selling Company allows seamless change of control between affiliates and customer.
Purchase Order in the Selling Company enables landed cost in product costing.
E2E value chain and process monitor allows issue detection and posting services.

(🔙Table of Contents)

System Demo - Advanced Intercompany Sales

My colleague Markus Oertelt has recorded the Advanced Intercompany Sales process for you. Watch the next video by clicking on the video figure or the video link below!

Video: System demo 'Advanced Intercompany Sales'

Video link: https://sapvideo.cfapps.eu10-004.hana.ondemand.com/?entry_id=1_2ultb4ci

The system demo is structured into the following sections:

Video time / min	Topic
00:39	How to create a sales order?
02:48	How to monitor your value chains after the sales order is created?
04:22	How to check automatic creation of intercompany purchase and sales order?
05:30	How to create delivery documents?
07:19	How to check transfer control of goods?
07:58	How to pick the delivery goods?
09:20	How to post goods issue?
10:16	How to create billing document?
11:45	How to monitor your value chains?

openSAP Microlearning

In addition, watch the new openSAP Microlearning from Seyba Elik about Advanced Intercompany Sales Value Chain Analysis for SAP S/4HANA Cloud .

(🔙Table of Contents)

Intercompany Stock Transfer

In analogy to the chapter above, let me also briefly compare the process of Classic Intercompany Stock Transfer and Advanced Intercompany Stock Transfer with the help of process flow diagrams:

Classic Intercompany Stock Transfer - Single Level / Single System

Fig. 4: Classic Intercompany Stock Transfer Process - Single Level / Single System

Advanced Intercompany Stock Transfer - Single Level / Single System

Fig. 5: Advanced Intercompany Stock Transfer Process - Single Level / Single System

(🔙Table of Contents)

Value Chain Monitoring Framework (VCM)

The Value Chain Monitoring Framework (VCM) is a generic framework for designing, running and monitoring business processes within SAP S/4HANA that supports pre-configured SAP standard E2E processes. The benefits are:

Increased end-to-end process visibility, efficiency, and collaboration
Issue detection providing posting services
Tightly integrated into relevant business applications

Fig. 6: Value Chain Monitoring Framework

The Monitor Value Chains app enables you to track all steps of the Advanced Intercompany Sales, Advanced Intercompany Stock Transfer, and Sell from Stock with Valuated Stock in Transit (VSiT) business processes. This app provides you with a detailed overview of all relevant steps and documents in these processes. In addition, it directly integrates these processes with other business applications. The business benefits are increased transparency, efficiency, and cross-team collaboration.

Fig. 7: Monitor Value Chains app

(🔙Table of Contents)

More Information / Additional links

SAP Community Call
Also check out the recording of the SAP Community call with my colleague Bernd Strecker (SAP Product Manager for Advanced Intercompany Sales). First, Bernd explains Advanced Intercompany Sales in SAP S/4HANA via his slide deck that is available here. I would especially like to draw your attention to the topic "Planned Features" at 28:46 min with an interesting outlook. The "Q&A" that answers a lot of interesting questions starts at 30:30 min. At 40:57 min Bernd shows a live system demo and finally at 49:13 min he answers some more questions.

For more information on Advanced Intercompany Sales, check out the detailed descriptions from Bernd Strecker and Felix Senger:

SAP Learning: Advanced Intercompany Sales (from May 2022)
Advanced Intercompany Sales & Stock Transfer in SAP S/4HANA Cloud and SAP S/4HANA - Process Overview (from October 2023).

SAP Notes
Find more information on current features (Restrictions and General Information) in SAP Notes:

3192584 - SAP S/4HANA Cloud: Restrictions and General Information for Advanced Intercompany Sales
3192546 - SAP S/4HANA Cloud: Restrictions and General Information for Advanced Intercompany Stock Transfer
3226683 - SAP S/4HANA 2022: Restrictions and General Information for Advanced ICo Sales
3226677 - SAP S/4HANA 2022: Restrictions and General Information for Advanced ICo Stock Transfer
3366067 - SAP S/4HANA 2023: Restrictions and General Information for Advanced ICo Sales
3366080 - SAP S/4HANA 2023: Restrictions and General Information for Advanced ICo Stock Transfer

For more information on SAP S/4HANA, check out the following links:

SAP S/4HANA release info: sap.com/s4hana
SAP S/4HANA Community here
SAP S/4HANA Cloud for Manufacturing & Supply Chain – The Link Collection here
Help Portal Product Page here
What’s New here
Best practices for SAP S/4HANA here

Thanks for reading this blog. Stay tuned!

Follow us via @SAP and #S4HANA, or myself via LinkedIn and @GerhardWelker.

(🔙Table of Contents)

Gerhard_Welker · ‎2023 Apr 18

Hi Rohit,

We didn’t test or validate the usage of advanced intercompany sales process for customer consignment fill-ups.

We have even not done any concrete investigation; therefore, we don’t have any solid knowledge or experience.

Accordingly, we don’t offer any documentation or guidance.

Without any detailed analysis I already can see issues with using advanced intercompany sales for consignment fill-ups:

There is no movement type available for the stock transfer from valuated stock in transit to customer consignment stock in the transit plant

The intercompany invoice relevance of the delivery item is based on the customer invoice relevance of the item

Generally, issues that occur due to the usage of advanced intercompany sales process for the customer consignment fill-up aren’t covered by SAP support.

Best regards,
Gerhard

pavan_misra · ‎2023 Apr 20

Hi Gerhard - Great content!!!!!

There's a link mentioned above - SAP is working on 2-tier scenarios (SAP S/4HANA Cloud for Hybrid Deployment), too. More information on 2-tier scenarios can be found via this link.

This link is not working anymore.

I am looking for the Adv ICo capabilities around an interim deployment, where the customer legacy is still in ECC and we have a progressive S/4 plant cluster deployment & there are Inter Co scenarios between the 2 systems.

Regards,

Pavan

Gerhard_Welker · ‎2023 Apr 21

Hi Pavan,

Sorry, that the BPX link that you mentioned is outdated because it was from the 2208 release. Here is the current BPX link valid for 2302 release SAP S/4HANA Cloud for Hybrid Deployment (2-Tier ERP)

Best regards,
Gerhard

NeerajSaxena · ‎2023 Jun 06

Hi Gerhard

I have enabled scope 5HP in public cloud and have configured the system as per the guidelines but PO creation is not triggering the creation of sales order and also the monitor value chains app is missing.

How i can resolve this issue ?

LiudmilaTurkina · ‎2023 Jun 19

Hi Gerhard,

thanks for the great content. Could you recommend, describe an E2E process for a Subcontracting operation model. A principal company transits raw materials to an affiliated subcontractor (a toll manufacturer). We use SAP Subcontracting order. Now, we can't get Multi Level valuation of Goods and WIP before the processing will have been finished.

Gerhard_Welker · ‎2023 Jun 21

Hi Neeraj,

Please check in detail that you have performed all steps being described in the set-up instruction of 5HP.
The set-up instruction is available in the best practices explorer 5HP - Advanced Intercompany Stock Transfer - https://rapid.sap.com/bp/scopeitems/5HP.

I’m not aware of any issue triggering the process if the configuration guide has been executed correctly.
If the process is still not started after a solid validation you should create a customer ticket.

Best regards,
Gerhard

Gerhard_Welker · ‎2023 Jun 21

Hi Liudmila,

Advanced Intercompany Sales (including Multilevel) and Subcontracting are different processes. Therefore, in SAP standard Advanced Intercompany Sales process is not the basis for subcontracting.

Defining new subcontracting processes would be a huge program with high effort and complexity. Recommending a new E2E process for subcontracting is not possible.

Best regards,
Gerhard

parveen_thakur2 · ‎2023 Jun 28

Hello Gerhard,

From the TM planning and cost allocation (at selling or delivering plant) perspective, I understood that there will be 1 FU across various business documents. Could you please help me to understand, against which document (whether it is std. order, Intercompany PO, or intercompany SO), the FU will be created in the TM system and what will be INCOTERMs (1 & 2) in that order

I am finding it difficult to understand how TM planning and cost allocation to selling and delivering company code will be done.

Regards.

former_member863994 · ‎2023 Jun 29

Hello Gerald,

Thanks a lot for such an informative and detailed structured blogs.

Just wanted to check by when we can get hands on Multi-Level Advance Inter-Company Scenarios.

There are few queries could you please explain on that :-

Why system doesn't allow to manually add or change the Payment term & Incoterm in the CBIC Sales document, that field is always grayed out , if it is not properly determined from the Master Data.

Why we need to have Payment term field determination at header and item level both separately in the CBIC Sales document.

If other document have any issue that can be resolved and we have option to reprocess it so that document can be corrected and follow on document can be generated or processed easily, but unfortunately, we don't have that option in CBIC Sales documents.

Status in the VCM its shows completed even though there are issue with document such as incomplete document either because of pricing issue or some other data issue which couldn't be able to determine properly and once document shows completed, we don't have options to reprocess the document post fixing the errors or incompletion.

Could you please help us above query.

Thank,

Abhishek Suman

Gerhard_Welker · ‎2023 Jul 04

Hello Parveen,

The freight unit is created the by the sales order in the selling company. TM uses this freight unit to manage the transport from the delivering plant to the ship-to-party.

TM knows both Incoterms, the external Incoterms between the selling company and the external customer (SO in the selling company) and the internal Incoterms between the selling company and delivering company (ICo PO and ICo SO). TM selects the internal Incoterms from the ICo purchase order.

Depending on the internal and external Incoterms, the system assigns the transportation stages to the delivering company, selling company or customer.

Best regards,
Gerhard

Gerhard_Welker · ‎2023 Jul 04

Hello Abhishek,

ad 1.) Why system doesn't allow to manually add or change the Payment term & Incoterm in the CBIC Sales document, that field is always grayed out , if it is not properly determined from the Master Data.

When we have started with the implementation of the replication logic, we had to make a decision:
- Do we open all fields in the sales order in the delivering company for a manual change creating the risk that a manual change can or will be overwritten by the automatic replication. As we found no easy solution to mitigate that risk, we have decided to open only fields where the replication is not overwriting manual changes and where we had customer feedback that to be open for a change is a must.
- If you check our note 3226683 on Advanced ICO Sales you will find already one exception:
  - Manual changes of the tax destination can be overwritten by the automated replication of data triggered by changes in standard sales order.

A manual workaround to cancel the existing intercompany sales order and to trigger a new one is to change the delivering plant and to save the standard sales order. In a second step you change the delivering plant back to the original plant and save the standard sales order again.

ad 2.) Why we need to have Payment term field determination at header and item level both separately in the CBIC Sales document.

Advanced ICo Sales has not implemented any specific function regarding payment term determination. It’s executed as in a standard sales order.

ad 3.) If other document have any issue that can be resolved and we have option to reprocess it so that document can be corrected and follow on document can be generated or processed easily, but unfortunately, we don't have that option in CBIC Sales documents.

Reprocess is only possible if a process step has failed. It’s not possible to reprocess a process step execution that was successfully done before.

Reprocess of the IC Sales Order process step is possible if the process step execution has failed before

It would be great to have a VCM function to cancel a process step and to reprocess it again. This function is not available due to prioritization and capacity constraints.

ad 4.) Status in the VCM its shows completed even though there are issue with document such as incomplete document either because of pricing issue or some other data issue which couldn't be able to determine properly and once document shows completed, we don't have options to reprocess the document post fixing the errors or incompletion.

VCM is taking care for process execution. Therefore, the status in VCM is about process step executions and doesn’t cover the status of the respective business application document.

It would be great to have the status of all business application document available (separately) in the Monitor Value Chain app. This function is not available due to prioritization and capacity constraints.

The integration of the status of the supplier invoice is available

The monitor value chain app provides an overview on the end-to-end process execution. The monitor is not meant to be a replacement of business application monitors or transactions. These monitors can be very specific to the respective business application process and business application documents, providing application specific functions.
- Issues in the business application are to be managed with transactions and reports of the business application

It would be great to integrate (in a generic manner) more functions and information of business applications into the Monitor Value Chain app. This function is only partially available due to prioritization and capacity constraints.

Best regards,
Gerhard

parveen_thakur2 · ‎2023 Jul 04

Hello Gerhard,

Does that mean the freight units are created only against customer sales orders?

I was going through the documentation over SAP help and noticed that a freight unit along with 2 stages will be created against intercompany SO. Could you please put some more insight into this, is it so that the freight unit will be created against customer order and ICO SO?

Regards

Gerhard_Welker · ‎2023 Jul 06

Hello Parveen,

There are 2 different aspects:

1.) Which document creates the freight unit?

The sales order in the selling company creates freight units.

The intercompany sales order and the intercompany purchase order don’t create freight units.

2.) Which organization is assigned to a transportation stage?

That the sales order in the selling company creates the freight unit has no impact to which organization a transportation stage is assigned to. For example, if both the internal Incoterms and external Incoterms are DAP, the delivering company is accountable for the transport from the delivering plant to the ship-to-party. Therefore, all transportation stages that have been created are assigned to the delivering company. In this case the sales order in the delivering company is the reference for all freight costs postings into financial accounting (in the delivering company).

Best regards,
Gerhard

frankma · ‎2023 Jul 10

Hello Gerald,

Thanks a lot for such an wonderful blogs！

Just wanted to check by when we can get hands on Multi-Level Advance Inter-Company Scenarios.

Now I have such a customer with On-Premise S4 SAP 2022 that needs to use such a feature, Advanced Intercompany Sales is a three-party transaction, the customer, the selling company and the delivering company.

If there are two selling companies, one delivering company and the customer.One of the selling company as a middleman to earn part of the profit, forming such a four-way transaction. May I ask whether such a business scenario can be realized Advanced Intercompany Sales by using SPRO in the On-Premise SAP system without any development?

Looking forward to your reply very much!

Thank you!

Best,

Frank

Gerhard_Welker · ‎2023 Jul 19

Hello Frank,

Multilevel ICo Sales is not being supported with S/4HANA 2022 or S/4HANA 2023.

I’m not a consultant but I think it will be difficult that a customer can enhance Adv ICo Sales to cover Multilevel ICo Sales even with customer development.

Best regards,
Gerhard

Rauno · ‎2023 Jul 19

Hello Gerhard

as Q3 of 2023 is aproaching very soon, can you sneekpeak to us, which new functionality will be covered in the next release?

Is there already a roadmap for the next releases after 2023? As i understand from SAP, there will be no Release 2024. So how will be new features of the process be delivered? Will it be part of the FPS?

Kind regards

Rauno

former_member868205 · ‎2023 Jul 20

Hello Gerhard,

We need to manually add or change the purchase condition price on PO3, can we do it?

Best Regards,

Wolf

Gerhard_Welker · ‎2023 Jul 27

Hello Rauno,

These are the planned enhancements and are therefore not a commitment:

- In 2308 you can assign a WBS element to the sales order item in the selling company. For S/4HANA OP 2023 final validation / tests are open.

- In OP 2023 you can configure the reason for rejection that is used to reject a sales order item in the delivering company in special business scenarios.

- In OP 2023 you can use a BADI to define if an ICo sales item is executed as classic ICo sales or as advanced ICo sales.

- In 2308 and OP 2023 you can configure that the current day is used as posting date of the ICo supplier invoice.

- In 2308 and OP 2023 you can see the ICo sales order in the document flow of the IC Customer Invoice

Best regards,
Gerhard

Gerhard_Welker · ‎2023 Jul 27

Hello Wolf,

Currently it’s not possible to change the intercompany purchase order, this includes the price information. We are hesitant to open the purchase order for manual changes as there is the risk that manual changes are overwritten by the automatic replication.

In S/4HANA OP you can use the transaction “MEI1 – Changes to Purchasing Documents Due to Changes in Conditions” to trigger repricing of purchase order items.

In S/4HANA Cloud there is currently no possibility to trigger repricing of purchase order items.

Best regards,
Gerhard

lvbarat · ‎2023 Aug 07

Hi Gerhard

Thank you for the detailed blog. We have activated the scope items in our client system 2308 version and it works well. Do we also have an integration scenario planned for this?

Regards

Lakshmi

Gerhard_Welker · ‎2023 Aug 08

Hi Lakshmi,

Advanced ICo Sales is a one system scenario only. Both companies need to run in the same client.

SAP is working on 2-tier scenarios (Two-Tier ERP), too. More information on 2-tier scenarios can be found via this link. Here you will find the scope items:
for Sales: Integration of Sales with External Buyers (2EL)
and for Procurement: Integration of Procurement with External Suppliers (2EJ)

Best regards,
Gerhard

anders_holstpedersen · ‎2023 Aug 14

Hi Gerhard

Thanks a lot for a very well-prepared and informative blog.

I’m in a project where we are setting up Advanced IC Sales at S/4HANA 2022 OP. The delivering company is located in DK and the selling company/customer in DE. One requirement is that the internal trade between the two companies is settled according to the cost+ model – meaning a fixed percentage surcharge is added to the delivering company's cost price, which then becomes the internal sales price to the selling company as well as the cost price in the selling company.

Are you aware of any standard way to add that surcharge automatically? I’m asking because we want to avoid maintaining internal sales prices as PPR0 condition records.

Thanks and best regards

Anders

Gerhard_Welker · ‎2023 Aug 15

Hi Anders,

When we talk about intercompany, we need to distinguish between two conditions:

In the legal view, the prices between the companies are always transfer prices that must satisfy many general conditions. Usually the transfer prices are calculated outside of S/4 and loaded into S/4 as conditions.

In the group view, the prices are calculated using the cost structure and an overhead rate, and the overhead is later eliminated. The cost split is then passed on between the companies.

I'm not sure which view (legal view or group view) you meant in your comment. By pointing to the internal sales price, it could be the legal view and then my first remarks regarding legal view are relevant.

Best regards,
Gerhard

abdul_01 · ‎2023 Aug 16

Hi MR.Welker,

I'm getting issue in Purchase order (Shipping tab is not coming in purchase order) in public cloud

I'm Activated 5HP Scope item and worked on set -up instructions but im not getting shipping tab.

Anybody can give some guidance to resolve that issue .

Kindy check that attached file .

Thank you

Gerhard_Welker · ‎2023 Aug 16

Hi Anders,

Let me add the following information:

In classic IC Sales, there are two condition types:

PI01 Inter-company Price

PI02 Inter-company %

With PI02, the "sales price minus" is calculated automatically and represents the sales price in the internal business (Delivering Company) and the costs in the external (selling company).

In Adv. IC, we do not offer this in the standard system.

Maybe your question goes in that direction.

Best regards,
Gerhard

Gerhard_Welker · ‎2023 Aug 16

Hi Mr. Abdulali,

Please check in detail that you have performed all steps being described in the set-up instruction of 5HP.
The set-up instruction of 5HP - Advanced Intercompany Stock Transfer is available here https://support.sap.com/content/dam/SAAP/Sol_Pack/S4C/Library/Setup/5HP_Set-Up_EN_XX.pdf

I’m not aware of any issue triggering the process if the configuration guide has been executed correctly.
If the issue persists after a solid validation you should create a customer ticket.

Best regards,
Gerhard Welker

abdul_01 · ‎2023 Aug 17

Hi MR.Welker ,

Actually issue was resolved.

Thank you for supporting.

Thank &Regards,

Shaik Abdulali.

Gerhard_Welker · ‎2023 Aug 17

Hi Mr. Abdulali,

Thank you very much for your feedback. I'm glad to hear that the issue was resolved. Good luck!

Best regards,
Gerhard Welker

anders_holstpedersen · ‎2023 Aug 17

Hi Gerhard

Thanks for a swift reply. So if I understand you correctly - we have no other options than to calculate the transfer price (delivering company's cost price + X %) outside the system and then maintain PPR0 conditions records to be determined at the IC Sales order?

Thanks and best regards

Anders

berndstrecker · ‎2023 Aug 21

Hi Anders,

your requrirement should be covered by normal pricing functionality that is available in sales orders in S/4HANA OP.

The information below should help that you are able to get an Intecompany Sales Price calculated by the system automatically.

A condition type (for example “PCIP” or “VPRS”) that is customized with the condition category “G – Internal Price” determines the internal price of a material in the relevant plant.
- In the sales order in the delivering company the delivering plant is used to determine this internal price.

Using this “special” condition type you can determine the costs in the delivering company and use it as the starting point (Price - condition class “B – Prices”) for price calculation.

By defining a second condition type with condition class “A – Discount or Surcharge” you can define your margin as a surcharge.

Both condition types can be determined automatically.

The sum of both condition types is the ICo Sales Price (being called by you internal sales price)

Notes:

Internal Price and Intercompany (Sales) Price are 2 different prices. The internal price is the value of a material in financial accounting, ICo (Sales) Price is the price that is billed between 2 affiliates.
- SAP doesn't use the term "Internal Sales Price".
- Intercompany Sales Price represents the Transfer Price.

In the sales order in the selling company the transit plant (belongs to the selling company) is used to determine the internal price.

Condition types that are customized as “Intercompany” are not used in Advanced ICo Sales.

Best regads,
Bernd

100985314489 · ‎2023 Aug 22

Very informative Blog.

You have mentioned that the Advanced Intercompany Sales is compliant with IFRS 15. Is there any SAP note or knowledge base article which describes the integration of Advanced Intercompany Sales and SAP Revenue Accounting and Reporting( SAP RAR) in terms of how the Revenue contracts look like in this scenario.

100985314489 · ‎2023 Aug 22

Amazing Blog.

You have mentioned that Advanced Intercompany Sales is compliant with IFRS 15. Is there any SAP note or knowledge base article which describes how the Advanced intercompany scnerio works with SAP Revenue Accounting and Reporting(RAR).

anders_holstpedersen · ‎2023 Aug 22

Thank you so much Bernd. That info is exactly what I asked for.

BR Anders

berndstrecker · ‎2023 Aug 25

In S/4HANA Public Cloud edition EBRR (Event-Based Revenue Recognition) is assigned as revenue recognition solution to the Advanced Intercompany Sales process.
The support of the IFRS15 functionality in S/4HANA Public Cloud is described in note:
2524569 - SAP S/4HANA Cloud: Information of IFRS15/ASC 606 Revenue Recognition Functionality

In S/4HANA OP or S/4HANA Private Cloud edition the EBRR is assigned to the Advanced Intercompany Sales process, too.
The IFRS15 bundling functionality from EBRR is not supported. On the roadmap, a linkage of EBRR and RAR (Revenue Accounting and Reporting) of the solution is foreseen (URR - Universal Revenue Recognition). By linking you get the advantages of both solutions. Further information is available in:
3110074 - Best Practice Document for the Use of Event-Based Revenue Recognition for Sell from Stock ...
3067643 - Activation of Event-Based Revenue Recognition integration with Sell from Stock in SAP S/4H...

Best regards,
Bernd

berndstrecker · ‎2023 Aug 25

See reply below.

xavierskoczek · ‎2023 Sep 12

Hello Liudmila Turkina, Hello Gerhard Welker,

What is the standard SAP process for managing a subcontracting flow between two affiliated companies (intercompany) ?

Should we use :

a STO and then the PP module ?

a Subcontracting STO ? But how we manage the production in the second company ?

Thank you very much.

Xavier

xavierskoczek · ‎2023 Sep 12

Hello Liudmila Turkina, Hello Gerhard Welker,

What is the standard SAP process for managing a subcontracting flow between two affiliated companies (intercompany) ?

Should we use :

a STO and then the PP module ?

a Subcontracting STO ? But how we manage the production in the second company ?

Thank you very much.

Xavier

SFC · ‎2023 Nov 14

Hi Gerhard, I’m glad I found this blog as it helps to string all the information together. Also, I have been trying to get confirmation on whether the Advanced ICo Sales and STO is available in S/4HANA 2023. Base on what I read here, can I assume that we a set up the Advanced ICo Sales and STO functionality even if the scope items are not shipping to the S/4HANA private cloud and on premise? I am talking about New Zealand where both scope items are not available. Appreciate if you can clarify that. Cheers.

former_member383908 · ‎2023 Nov 14

Great knowledge sharing.

Is there a corresponding solution for the goods return senario of AIC sales?

Best Regards,

Jiafan

muna333 · ‎2023 Nov 17

Hi Gerhard,

I'm trying the intercompany Sales Process. I create Saloes order, transit plant appears, mvt type - 687 as well. But upon saving SO, No auto PO creation. did configure, Maintain default values for PO order type at Materials management - Purchasing - Purchase order - Advance intercompany process - Purchase order defaults in advance intercompany sales for

Sales org - 1010, Porg - 1010, Purchase group - 001 and PO Order type - NBAI

The following is the message that system shows when i try and create delivery from Intercompany Sales , SO:

"

intercompany sales order 0000000398, item 000010 cannot be delivered message no. le_shp_vl009 system..."

Please check in Monitor value chains to see exact error. I don't see Monitor value chains app in my SAP Fiori provided to me for the SAP Practice system. it further says, 1. PO may not be created. 2. PO may be created, but on hold due to errors"

I checked all config settings, they seem to check out fine. Set up Config as per this document - Advanced Intercompany Sales - Configuration Guide
SAP S/4HANA 2022 - Based on Client 000 Customizing. this latest version of the said Doc: Version 1.6, 2023_06_21

• 2.6.2 Permit Sales Document Type for a Sales Area (Optional) added
• 2.10.1 Business Function LOG_MM_SIT added
• 2.4 Information on usage of retail sites added
• 2.5.3 Assign Blocking Reasons for Billing to Billing Type added

Could you please help me? Appreciate your help

berndstrecker · ‎2023 Nov 20

Hi Liu,

currently there is no customer return process available that corresponds to Advanced Intercompany Sales process.

The informatiin below is an exctract from the SAP note "3366067 - SAP S/4HANA 2023: Restrictions and General Information for Advanced ICo Sales" on returns of advanced intercompany sales items:

To return advanced intercompany sales items, you can use customer returns processing and lean customer returns processing.

For information about customer returns processing, see scope item BKP – Customer Returns or SAP Note 2967795 .

Intercompany customer returns processing:

Intercompany customer returns processing is a returns processing of a sales organization that has a different company code than the plant that is used as receiving plant.
There is no process for intercompany customer returns available that includes inventory postings in the selling company (for example, in the transit plant).
Intercompany customer returns processing doesn’t post consolidation items for cost of goods sold or revenue in group valuation.
Intercompany customer returns are only available in classic intercompany business processing.
- Financial data in the returns order item belongs to the delivering company.
- Financial data includes the profit center in the delivering company.
- For the profit center in the selling company, the partner profit center in the customer return order can be used.
- In the returns order, pricing is performed for the delivering company (intercompany business) and the selling company (external business).
When using advanced returns management, instead of using an intercompany return you can use returns processing involving the supplier by IDoc exchange.
- In the returns order, the used external supplier represents the receiving company or receiving plant.
- The plant that is used in the returns order has the same company code as the sales organization.
- For information about customer returns processing and IDoc exchange, see SAP Note 2967795 attachment ARM_Product_Overview_IDoc_Exchange.pdf.

Best regards,
Bernd

berndstrecker · ‎2023 Nov 20

Hi Sri,

based on the provided informion it's very difficult to analyze why the intercompany purchase order is not created automatically by the system.

To run Adv ICo Sales you need correct settings / customizing and addtional master data.
Please check in detail that eveything that is being described in the set-up instruction has been executed. In the moment I'm not aware of any case where Adv ICO Sales is not executed successfully if the set-up instruction (including master data) has been executed correctly.

As the error message you receive, relates to VCM, I assume that Adv ICo Sales is triggered by the sales order item in the selling company, and that master data or customizing for the PO creation is missing.

The Value Chain Monitor app will provide insight why process step execution has failed, therefore it's essential to have the Value Chain Monitor app in place.

If you need assitance to have a proper system set-up including the availability of the Monitor Value Chain app you should contact SAP consultancy.

Best regads,
Bernd

muna333 · ‎2023 Nov 21

Hi Gerhard,

Thank you very much for your guidance. I will ask for the Monitor Value chain App. I got few questions:;

Does the Inter company PO have item category? if yes, what's the item category used and how is it determined by the system?

How does the system populate Customer no in the customer field in delivery address tab page of PO item details? Hard coded in program or config set up?

Does the intercompany PO have a shipping tab in PO Item details?

Thank you.

muna333 · ‎2023 Nov 21

Hi Gerhard,

Thank you for your response. I will ask for the Monitor value chain App. have a few questions:

Does the Intercompany PO have item cateory? if yes, what's the item category thatsystem uses and how is it determined?

How is the customer no in the customer field in delviery address tab page of PO Item details determined?

Does the Inter company PO have a Shipping tab page as well?

Thank you again.

muna333 · ‎2023 Nov 21

Hi Gerhard,

Thank you for your response. I will ask for the Monitor value chain App. have a few questions:

Does the Intercompany PO have item cateory? if yes, what's the item category thatsystem uses and how is it determined?

How is the customer no in the customer field in delviery address tab page of PO Item details determined?

Does the Inter company PO have a Shipping tab page as well?

Thank you again.

berndstrecker · ‎2023 Nov 21

Hi Kayithi,

Does the Intercompany PO have item cateory? if yes, what's the item category thatsystem uses and how is it determined?
--> Yes, the intercompany purchase order item has the item category third-party.

How is the customer no in the customer field in delviery address tab page of PO Item details determined?
--> Ship-to-party number and address in the sales order header (or item) in the selling company is copied to the intercompany purchase order item

Does the Inter company PO have a Shipping tab page as well?
--> The ICo purchase order has Delivery Schdule, Delivery and Delivery Address data

Best regards,
Bernd

muna333 · ‎2023 Nov 24

Hi Bernd,

Thank you for your guidance. I do have couple of questions though.

How does the system determine populate Item category - Third party? is it maintained at item category/schedule line category for the system to auto determine Third party item category? Item ctegory TAN in Sales order doesn't have Third party item category. So, schedule ine categories like CP, CN, CV etcetc. how does sytem auto populate third party item catefory in Inter copany PO?

For Third party item category, Account assignment is necessary - in this case the corresponding Inter Co Sales Order Number, Does the Intercpmpany PO have third party item category? if it does, how does the system determine appropriate Account assignment category?

Apprecitae your help.

Thank you

Krishna

berndstrecker · ‎2023 Nov 24

Hi Krishna,

In avanced intercompany sales the created IC purchase order is always a third-party order, therefore the third-party category of the purchase order item is hard-coded (for the VCM process category "Intercompany Sales").

In advanced intercompany sales the IC purchase order must not have an account assignment as the underlying process is a procure to stock (valuted stock in transit) process.

Best regards,
Bernd

berndstrecker · ‎2023 Nov 24

Hi Siow,

Advanced ICo sales and advanced ICO STO are available in S/4HANA private cloud edition (PCE) and OP. Both processes are available in S/4HANA PCE and OP independent on the availability of scoe items in a system.

The scope item "5D2 - Advanced ICo Sales" is available for S/4HANA PCE and OP.
The scope item "5HP - Advanced ICo Stock Transfer" is not availale for S/4HANA PCE or OP, nevertheless advanced ICo STO as a process is available.

The respective configuration guides are defined for systems based on 000 client Customizing.

Ÿ3233830 - Configuration Steps for Advanced Intercompany Sales in SAP S/4HANA

Ÿ3233845 - Configuration Steps for Advanced Intercompany Stock Transfer in SAP S/4HANA

Set-Up Instructions for systems based on SAP Best Practices are available in the Scope Items.

Ÿ5D2 - Advanced Intercompany Sales (SAP S/4HANA 2022)

Ÿ5D2 - Advanced Intercompany Sales (SAP S/4HANA 2023)

Localization - General / New Zealand:
Currently there is no plan to make country versions of scope items of S/4HANA public cloud available for S/4 HANA PCE or OP.

Nevertheless, as the functionality is part of S/4HANA PCE and OP scope you can configure your country versions by yourselve.

With this link you can access the Administration Guide to Implementation of SAP S/4HANA Cloud, Private Edition 2023 with SAP Best Prac...

Best regards,
Bernd

FrankJacobs · ‎2023 Nov 27

Advanced Intercompany Sales, Universal Parallel Accounting and E2E Value Chain Analysis are often mentioned in conjunction. Since they are all new and have both capabilities as well as restrictions it is hard to determine the exact relationships. E.g.
- can we implement Advanced Intercompany sales without Universal Parallel Accounting?
- can we implement E2E Value Chain Analysis without Advanced Intercompany sales?

Would it be possible to provide a little bit more clarity about the relationship of these functionalities?

Advanced Intercompany Sales & Stock Transfer in SAP S/4HANA Cloud

Overview

Intercompany Sales

Intercompany Stock Transfer

Value Chain Monitoring Framework (VCM)

More Information / Additional links

Overview

Business Reasons for Intercompany Processes

Financial Drivers

New Best Practice Processes

Process Activation and Restrictions

Release Information

Outlook

Intercompany Sales

Classic Intercompany Sales - Single Level / Single System

Advanced Intercompany Sales - Single Level / Single System

System Demo - Advanced Intercompany Sales

openSAP Microlearning

Intercompany Stock Transfer

Classic Intercompany Stock Transfer - Single Level / Single System

Advanced Intercompany Stock Transfer - Single Level / Single System

Value Chain Monitoring Framework (VCM)

More Information / Additional links

Useful documents on SCN

Evolution of ABAP

Analytics in S/4HANA - real shape of embedded analytics and beyond embedded analytics