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):
For SAP S/4HANA Cloud, private edition and SAP S/4HANA there is no scope item for Advanced Intercompany Stock Transfer available
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.
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.
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
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:
Profitability Reporting across legal entities
Support of IFRS 15 compliant revenue recognition and COGS postings
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.
System Demo - Advanced Intercompany Sales
My colleague Markus Oertelt has recorded the Advanced Intercompany Sales process for you. Watch the next video! The system demo is structured into the following sections:
Video time / min
How to create a sales order?
How to create a sales order with SAP Fiori?
How to monitor your value chains after the sales order is created?
How to check automatic creation of intercompany purchase and sales order?
How to create delivery documents?
How to check transfer control of goods?
How to pick the delivery goods?
How to post goods issue?
How to create billing document?
How to monitor your value chains?
Video: Advanced Intercompany Sales (system demo without voice demo)
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.
[Update 20221207]: 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 description here.
For more information on SAP S/4HANA, check out the following links: