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Intercompany billing for intercompany cost allocation

former_member94298
Active Contributor
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We have a business scenario as follows:

An organisation carries out cross-company allocation of Group management costs (and I know that we need to follow note 2855105 to be able to do this part of the process using old style CO allocations) - perhaps a couple of different types of costs - say exec salaries, and shared service costs.

Obviously, the organisation then needs to do intercompany billing to support the correct creation of the intercompany payables / receivables etc (and as part of this, they also wabt to apply a markup).  So far, so good - scope item 16T used to do this very nicely - we would use the E0* materials on the intercompany sales order to pick up the different recharges. 

Let's say the organisation actually want to bill separately for the two different recharges - so I have two separate sales orders, one using E006 and one E007 for example.

For some reason, the system now seems to be ignoring the materials on the intercompany sales order - and picking up both types of recharge on a single DMR (not to mention other project related intercompany time bookings, which we would defintiely want to handle separately).

What has changed with the solution - do 4AU and 4AN make the solution work differently to the old 16T scope?

Has anyone else come across these issues - obviously, it's a slightly off the wall use of 16T to support this requirement - but it used to work fine.  Just checking before I log an issue with OSS...

Accepted Solutions (1)

Accepted Solutions (1)

former_member132023
Active Participant
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Hi Clare,

Kindly refer the below documentations/blogs.

Intercompany Cost Allocations and Intercompany Billing in SAP S/4HANA Cloud for Finance:

https://blogs.sap.com/2020/06/09/intercompany-cost-allocations-and-intercompany-billing-in-sap-s-4ha...

Intercompany Cost Allocations in S/4HANA Cloud

https://blogs.sap.com/2020/06/01/intercompany-cost-allocations-in-s-4hana-cloud/

Regards,

Komathi

former_member94298
Active Contributor
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Thanks you komathi.sap1 - I have already seen that - and they don't really answer the specific question.

I did find OSS note https://launchpad.support.sap.com/#/notes/2894516 - which seems to suggest that teh intercompany sales order will simply sweep up EVERYTHING for teh relevant intercompany relationship - what if I only want to bill part of what has been allocated intercompany in a single invoice?

stefan_walz
Advisor
Advisor
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Hi Clare,

it is foreseen that the intercompany billing takes all intercompany postings - because it is legal required. (Technically, there is an option in the periodic job to control the selection for a single invoice.)

regarding the derivation of the billed materials:

the billed material derivation is independent of the used material in the intercompany sales order. the sales order is just for triggering the invoice and define the receiving company.

Same as for T&M customer billing, the billed material is derived by the G/L accounts in case of expenses.

This functionality is independent of the scope item.

regards stefan

former_member94298
Active Contributor
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stefan.walz - thanks for getting back to me and for clarifying... I just wanted to double check - and what you say makes sense. Just wanted to confirm that there wasn't a degree of flexibility - if, for example, different people in the receiving company are responsible for, say, re-allocated Group Exec costs vs. reallocated shared service costs.

Answers (1)

Answers (1)

former_member132363
Active Contributor
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Here are some SAP resources you may review based on your topic "shared | of | allocation | group management costs | costs | service costs | intercompany billing | intercompany cost"

Activity Types and Service Materials for Project Services

Aug 18, 2019 ... To enable activities to be planned and allocated, quantities of output are measured ... to again subdivide the employee groups (activity types) more granular. ... For planning and posting costs for a project, the Activity Type is used to find ... and cost postings for the project as well for the intercompany billing?...

https://blogs.sap.com/?p=570

Best Practices for SAP S/4HANA Cloud

Revenue is calculated based on quantity, and costs are matched with revenues ( posted ... based on the referenced billing plan, using group ledger IFRS functionality. ... Managing Material Price Changes and Inventory Values - This scope item ... Intercompany Process for Sublease Accounting - This scope item allows the?...

https://support.sap.com/en/product/best-practices-s4hana-cloud.html

Customer Projects Migration - Part 1: Migration of Fixed Price ...

Sep 20, 2019 ... Posting Logic; Migration of Fixed Price Projects (ongoing and partially ... Migration of Bundles in Projects (Fixed Price & Periodic Service) ... App: Enter Activity Allocation. In order to calculate the PoC the already posted costs in the legacy ... Create billing documents for already billed revenue of the project.

https://blogs.sap.com/?p=567