I want to understand how cost travel from sales order, purchase order;

[nithin_pranesh]

Dear Experts,

I want to understand how the cost travels from the sales order to the purchase order. Are there any resources that you can share with me.

[erickgoulardt]

Dear Colleague, I hope you find yourself well! Thank you for joining the community. As soon as possible, a technical expert will contact you to clarify your question. I am adjusting the tags to redirect the issue to the right team. Best Regards, Erick Goulardt SAP Support

[DequanXu]

Hello,

To understand how cost transfers between a sales order and a purchase order, particularly in a 2-tier ERP system involving SAP S/4HANA Cloud, the scenario can be broken down into several steps.

Key Steps in the Cost Transfer Process

1. Initialization: The subsidiary creates a purchase order in SAP S/4HANA Cloud. This order represents a request for goods or services.

2. Using APIs: The purchase orders created in SAP S/4HANA Cloud are read using the API Purchase Order to Sales Order Creation in a 2-Tier… - SAP Community available at api.sap.com.

3. Mapping to Sales Order IDOC: The purchase orders are mapped to a Sales Order IDOC (Intermediate Document) format suitable for transmission to an on-premise system at the headquarters.

4. IDOC Transmission: The mapped IDOCs are then sent through the SAP Cloud Connector to the headquarters’ on-premise system.

5. Processing at Headquarters: The headquarters processes the received IDOCs and converts them into sales orders.

6. Cost Allocation: The cost associated with the purchase order is captured as the purchase turns into a sales order. This allows seamless integration of cost from procurement to sales, ensuring that all financials are in order as the transaction progresses from purchase to fulfillment.

Configuration

• Communication arrangements between cloud and on-premise systems need to be set up to facilitate this workflow.
• Partner Profiles and programming interfaces must be correctly configured at headquarters.

Additional Resources

• For a detailed configuration guide on how communication between the SAP S/4HANA Cloud and on-premise systems for this purpose is set, you can refer to specific documentation available on SAP’s official site.

This process ensures that costs and other financial entries are accurately transferred and reconciled between the systems, leveraging both cloud capabilities and traditional on-premise infrastructure.

Best regards, Dequan Xu