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Intercompany Sales and Billing With Pre-requisites and Configurations

ak00710902
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Hello Experts,

After Reading Some Blogs and Trying the same in a system I have developed some understandings about the Intercompany Sales and Bilking Scenarios.

Please Go through and assess the same.

  • Process flow

Intercompany sales and billing is a business process between two company codes of the same company group where the company that receives order from the end customer is ordering company and the other company code is either the supplying company code if the the material is procured by the ordering company or a delivering company code if the company delivers the goods to the end

It is used in the scenarios where the stock of the ordered material is not available with the ordering company.Now there could be two cases

  1. The material can be procured from the plant of the Supplying company code and delivered to the end customer
  2. The material can be delivered to the end customer from the delivering plant through a forwarding agent using a shipment.
  • Pre-Requisites

Consider the below table

  1. The end customer MNO is created under the sales area of ABCD AB CD.
  2. Material PQRS Should be extended to both the Distribution chain ABCD AB(With Division CD in the SOrg1 View and Plant ABCD1 View) and EFGH EF(With Division GH in the Srg1 View and Plant EFGH1 View). Then the material can be procured from both the plant.
  3. A dummy customer PQR is to be created under the sales area EFGH EF GH.
  • Configurations
  1. From enterprise structure The Distribution Chain EFGH EF must be assigned to the Delivering plant EFGH1 Only then it becomes a delivering plant (SPRO-->IMG-->Enterprise Structure-->Assignment-->Assign sales organization - distribution channel - plant)

  2. Also, the Combination of Sales organization and Distribution Channel EFGH EF must be assigned under a distribution Channel EF and the combination of Sales organization and Division EFGH GH Must be assigned under division GH only then the material can be extended with the sales organization view and the Dumy customer can (SPRO-->IMG-->Sales&Distribution-->Master Data-->Combine Distribution Channel & SPRO-->IMG-->Sales&Distribution-->Master Data-->Combine Division)

  1. SPRO-->IMG-->Sales&Distribution-->Billing-->Intercompany Sales and Billing

  • Assign Organizational Unit by Plants-Here the Combination of Sales Organization and Distribution Channel ABCD AB is assigned to plant EFGH1 To make it delivering Plant for intercompany sales process.

  • Assign Intercompany Billing to sales document type-Here the Sales order type is assigned with intercompany billing type(The sales document category is to be maintained as 5) this can also be achieved in VOV8 Sales document configuration with Intercompany billing type field( SPRO-->IMG-->Sales and Distribution-->Sales-->Sales Document-->Sales Document Header-->Define Sales Document Type).

  • Define Internal Customer Number By Sales Organization-The customer Internal customer PQR is assigned to the Sales Organization ABCD such that ABCD Becomes the internal customer for procuring material PQRS from the plant EFGH1.

  • Pricing Procedure(T Code:V/08)

The Standard Pricing Procedure for Intercompany sales and billing is ICAA01 with Transaction specific indicator checked. The Intercompany Price PI01 should have requirement 22 and IV01 should have Requirement 24(it restricts the determination of the price only to the billing document IV01 for internal Purpose) and Subtotal 9 that adds it to the gross price while internal posting of the invoice)

  • Condition Types(T Code:V/06)
  1. PI01-Condition Class-B Calculation Type C(Quantity) and Condition Category-I and Pricing Procedure ICAA01 Access Sequence PI01.
  2. IV01-Condition Class-B Calculation Type-C and Condition Category-I and Pricing Procedure Access Sequence PI01, Reference Condition Type PI01 and Reference Application V
  3. PI02-Same as PI01 But with Calculation type A i.e%.
  4. IV02-Same as IV01But with Calculation type A i.e %.
  • Order to Cash Process(VA01-->VL01n-->VF01)
  1. Create a sales order with the End Customer MNO in the Sales area ABCD AB CD with required document type and enter the Order quantity of the material and the delivering plant EFGH1 should get determined in the respective column at the line item.
  2. Create a delivery with reference to the sales order.
  3. There will be two invoice created one of the Document Name F2 i.e standard invoice that will be sent to the end customer MNO and will be posting to the accounting and other will be intercompany invoice that will will be internally sent to the sales organization ABCD.
  4. If the delivering company is sending the goods to the end customer and the standard invoice is still sent to the end customer MNO Then the delivery can be contained in a shipment(The forwarding agent should be created in the delivering plant of the company code and purchasing organization of the delivering company code before doing PGI and then invoice can be created.

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