Inventory Material to be sell or transfer to group companies

[Former Member]

We have few materials on our inventory which are of no use for us and want to sell\transfer to group companies. What process should I adopt that will take care the tax and inventory part of the business.

[Former Member]

Hi Prem,

You have to use intercompany purchase order type :YNB . Create purchase order in other company whre you want to move materials. you can raise outbound delivery in sending plant against This PO. and you can raise excise invoice against this po In J1IIN t-code also.

For that you need to create your plants vendor and customer and maintain plant no. In vendor master in XK01 - click on PARTNER FUNCTION and click on  EXTRAS-ADD PURCHASING DATA-ENTER PLANT. in purchase organization data. in receiving company.

maintain same vendor number in customer master CONTROL tab in sending company.

krishnareddy

[caram]

Hi Prem,

Please follow IMG> Sales and Distribution>Intercompany Billing. and ensure you have the necessary settings in place.

Thanks,

Sitaram

[Former Member]

As per Ali, if we are selling to third party customer via our group company, then only we require Intercompany Billing setup, but this is not our case.

We need to sell our inventory material to grp company directly with reducing our inventory and raising invoice.

[former_member198650]

Then you can use your existing billing process which is using for third party customers.

[Former Member]

Existing billing process is only for scrap sale.

Can we consider these case in my existing scrap sale process?

[Former Member]

Its Work

[former_member198650]

What materials you are selling? If it is scrap, then you can use it. If other material, then copy scrap sale order,delivery & billing and create a new one for them.

[Former Member]

IT's Inventary Sale Not Scrap.

[Former Member]

That is the decision we need to take that should we go as scarp for such materials as we are not the producer of such materials. We have purchased it with some reason and now its of no use for us and wants to sell or transfer to group company .

Should we go for scrap sale for such process?

[former_member198650]

The decision should take at your client side. If there is no future sale happened then you go with scrap sale.

[former_member198650]

Hi Prem,

Create a group company as a customer and do the sale process as you do for other customer.

Regards,

Mukthar

[Former Member]

which sale order type should we choose?

[former_member198650]

Select order type which you are using for normal sale i.e. domestic sale order type.

[Former Member]

Only creating sale order type will serve the requirement and any other configuration would be require?

[Former Member]

Dear Prem,

From taxation and legal point of view, the other group companies are separate legal entity in India. You can follow the same process which you are following for the third party customer to sell the material. However in order to differentiate it from the third party sale, you can either use the trading partner field (Trading Partner field can be updated in Customer master) or a separate GL account in SAP using VKOA.

In case the business requirement is like, you are selling this part to third party customer via your group company, in that case you can follow below steps of inter company billing.

Inter-company billing process

Regards,

Sumti Bhadani

[former_member198650]

Hi Prem,

Check with your client whether they are using separate billing process for inter company or use the normal billing as a third party customer.

Regards,

Mukthar

[Former Member]

Normal billing as a third party customer.