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Intercompany Sales

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When we use intercompany sales?

The customer can directly go to the supplying company instead of his regular company.

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Answers (4)

Answers (4)

Former Member
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Hi Azeemuddin,,

Inter Company Sales.

In the Normal Business Process the end customer place the purchase order with ordering plant. Then the Ordering plant if the material is not available then the ordering plant will raise the purchase order with the delivery plant and the delivering plan raise the sales order with reference to purchase order. Subsequently it will deliver the goods directly to the end customer. And Issue on INTER COMPANY BILLING. To ordering plant. Then the ordering plant raise the invoice in favor of end customer .With this step Inter Company sales Billing/Sales Process will complete

Thanks

A.Susheel.

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Azeemuddin,

Here is the answer to part 2 of your question.

"The customer can directly go to the supplying company instead of his regular company."

Lets call supplying company as B, who has the stock and Regular company as A on whom the order was placed, but do not have stock.

There are lots of reasons:

1. The Sales Order, Customer and Pricing is created in SAP system of company A on whom the order is placed. How do you expect the company B to deliver to this customer. There are no records in Company B.

2.  The customer could have a negotiated contract / special pricing / scheduling agreement etc with Company A. They do not even know company B.

3.  Who will invoice the customer? How will the customer recognize the invoice from company B.  The order was placed on company A.  Company B is not on their vendor list.

There could be many more reasons.

Hope it helps.

former_member204590
Participant
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Hi Azeemuddin,

Could you explain what is purpose of your question? However, Lalit has already answered your second concern. Let me know if you have any specific question.

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In Business Process Procedure of Inter-company Sales

1) Create a Sales order for a Normal Customer and change the Plant(Supplying Plant of different Company code)

2) Create a Delivery for the Sales Order.

3) Create an Invoice for the Delivery(Normal Invoice)

4)Again create an Invoice for the Delivery (Inter-company Invoice)

In this we are creating a Sales order for a normal Customer,

That is, the customer can directly go to the Supplying company instead of a Regular company.

Please Clarify.

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Hi Azeemuddin,


I think if you need clarification about the business scenario for the reason of Inter Company Sales, there can be multiple reasons and for the same Customer can't go to Supplying Company.


In real time one of the reason can be, Stock is not available with the regular company and they didn't want to loose the customer so instead of loosing customer they can get the material from Supplying company and can satisfy the customer needs.



Former Member
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Inter-company sales is done when you are selling goods from one company to another company. It is not meant for regular customer sales.