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Former Member

Intercompany process Flow

Hello friends,

Company AB makes FG for Company AD, and  company AD may be making components for AB in near future.  How will all of these intercompany transaction work?

I know two flows by definition as below ;

a)You will send components from AD to AB.

b) Finished goods from AB to AD.

However, I would like gather few thoughts on how to design and implement into system.

Appreciate any valuable input here. Thank you in advance.



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2 Answers

  • Best Answer
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    Former Member
    Jun 10, 2014 at 07:21 AM

    Hi Suvi

    I have a similar scenario in one of the client. This is how the setup is in SAP for me. I do not know if this will work for you, but anyways it is mentioned below as a guideline.

    The prerequisites are as below.

    • AB & AD are 2 plants categorized under one company code.
    • AD is an external vendor & also configured as Plant in the same company code.
      • Plant AD & Vendor AD (Do not Confuse)
    • Intracompany configurations to be completed.

    Points to note

    • AB sends components to AD
    • AD processes components & does a value add and sends finished goods back to AB.


    • Plant AD creates a Scheduling Agreement (subcontracting) with the Vendor AD to supply the finished goods.
    • Plant AD provides the WIP materials to the vendor using the ME2O.
    • If the WIP is in shortage quantity the Plant AD creates an STO (intracompany) for the supplier Plant AB.
    • Plant AB delivery materials (using outbound delivery) to the Plant AD wrt the STO.
    • Plant AD receives the WIP goods using MIGO 101.
    • Plant AD moves the shortage qty after receiving to the vendor AD using ME20 - 541 movement.
    • Vendor AD processes the finished goods & Plant AD receives it via the MIGO 101.
    • Then Plant AD moves the finished goods to the Plant AB via the intra plant transfer.

    Hope this helps.

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    • Former Member

      Hi Vishal,

      Thank you very much for so in detail response on my Intercompany business process.  Sorry for the late response to your helpful answer.

      I've one hunch on your process flow explanation . Since in my case, I'm going to use two different company codes. Wherein , in your explanation you have mentioned Plant AB and AD categorized under same company code. So I'm bit confused. I've done intercompany scenarios earlier but were bit different.

      So in my Intercompany scenario this intercompany transaction will take place between two different company codes and so I wont be able to configuration two different plants ( AB and AD) under one company code. But yes, for sure they will be two different plants in two different company codes.

      Please let me know your further response on this . Rest process explained by you make sense and I can go with it for the config stand point.

      Thank you so much for your time and valuable input on this process.

      PS. Let me know your email add ( if you are okay) & can exchange few more details on this issue .



  • Jun 16, 2014 at 06:58 PM

    Hi Suvi

    Your question/problem is not clear?

    Can you re-post your question clearly with example of a Purchase/sale amounts (between two/more  Inter company's ) with transactions you would like to do? posting of entries in  both company's? so as to provide suitable solution.


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