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intercompany sales

Hi all,

can anybody explain in detail about intercompany sales,third party sales

Regards,

chandu

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4 Answers

  • avatar image
    Former Member
    Jun 08, 2007 at 09:20 AM

    Hi,

    Go through the explanation given below with test cases.

    Business case: -

    Customer orders goods to company code/Sales organization A (Eg.4211/4211).Sales org 4211 will accept and punch the order in the system with sold to party as end customer code in the system. Company code/sales org B (Eg.4436) will deliver the goods to end customer and raise an intercom any billing on 4211 with reference to delivery. This can happen only after 4211 raises invoice to his end customer to whom the material has been delivered by 4436.

    SPRO Customization required:-

    1. Assign plant of delivering company code (Eg.SI81) to sales org/distribution channel combination of ordering company code (Eg.4211/RT)

    2. Maintain intercom any billing type as IV for sales document type OR

    3. Assign Organizational Units By Plant (Eg.SI81/4211/RT/11)

    4.Define Internal Customer Number By Sales Organization (Eg.4436 will create customer master for 4211 company code and that number will be maintained in this relationship:-4211/231)

    5. Automatic posting to vendor account (Optional)

    6. Maintain pricing procedure determination for 4211/RT/A/1/RVAA01-For customer sales and billing

    Maintain pricing procedure determination for 4436/RT/A/1/ICAA01-For intercompony billing

    Master data to be maintained:-

    1. Create end customer master in company code/sales org 4211/RT/11

    2. Create customer master for 4211 company code/sales org in 4436/RT/11

    3. Maintain PR00 as price for end customer-Active in RVAA01

    4. Maintain PI01 as price which has to be paid to 4436-Statistical in RVAA01

    5. Maintain IV01 as inter-company Price-Active in ICAA01

    Process:-

    1. Create OR with sold to party as end customer.

    2. Plant to be selected is delivering plant belonging to different company code. With this selection system will treat this order as intercomany sales.

    3. Pricing procedure is RVAA01

    4. With reference to this order delivery will be created from the delivering plant and post the goods issue for this delivery.

    5. Ordering sales org will create billing document F2 with reference to delivery for end customer.

    6. Delivering sales org will create intercompany billing IV with reference to delivery document.

    I hope this helps you.Reward points if solution is useful.

    Regards,

    Amrish Purohit

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    Former Member
    Jun 08, 2007 at 09:22 AM

    Hi CPDatt,

    Intercompany Billing:

    Go through the explanation given below with test cases.

    Business case: -

    Customer orders goods to company code/Sales organization A (Eg.4211/4211).Sales org 4211 will accept and punch the order in the system with sold to party as end customer code in the system. Company code/sales org B (Eg.4436) will deliver the goods to end customer and raise an intercom any billing on 4211 with reference to delivery. This can happen only after 4211 raises invoice to his end customer to whom the material has been delivered by 4436.

    SPRO Customization required:-

    1. Assign plant of delivering company code (Eg.SI81) to sales org/distribution channel combination of ordering company code (Eg.4211/RT)

    2. Maintain intercom any billing type as IV for sales document type OR

    3. Assign Organizational Units By Plant (Eg.SI81/4211/RT/11)

    4.Define Internal Customer Number By Sales Organization (Eg.4436 will create customer master for 4211 company code and that number will be maintained in this relationship:-4211/231)

    5. Automatic posting to vendor account (Optional)

    6. Maintain pricing procedure determination for 4211/RT/A/1/RVAA01-For customer sales and billing

    Maintain pricing procedure determination for 4436/RT/A/1/ICAA01-For intercompony billing

    Master data to be maintained:-

    1. Create end customer master in company code/sales org 4211/RT/11

    2. Create customer master for 4211 company code/sales org in 4436/RT/11

    3. Maintain PR00 as price for end customer-Active in RVAA01

    4. Maintain PI01 as price which has to be paid to 4436-Statistical in RVAA01

    5. Maintain IV01 as inter-company Price-Active in ICAA01

    Process:-

    1. Create OR with sold to party as end customer.

    2. Plant to be selected is delivering plant belonging to different company code. With this selection system will treat this order as intercomany sales.

    3. Pricing procedure is RVAA01

    4. With reference to this order delivery will be created from the delivering plant and post the goods issue for this delivery.

    5. Ordering sales org will create billing document F2 with reference to delivery for end customer.

    6. Delivering sales org will create intercompany billing IV with reference to delivery document.

    Following link

    http://help.sap.com/saphelp_46c/helpdata/en/e6/4a6dc89e0311d189b70000e829fbbd/frameset.htm then go to special business transaction n click on intercompany sales processing.

    http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b911d43ad11d189410000e829fbbd/content.htm

    http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b917843ad11d189410000e829fbbd/content.htm

    Configure Intercompany Stock Transport Order

    Material should exist in both the plants (Delivering & Ordering),

    Internal customer should be assigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.

    Assign its Sales area to the delivering plant

    Assign the document type and Delivery type NB and NLCC

    Assign the Supplying plant --> Receiving Plant --> NB

    Take the delivering plant and assign the sales area.

    Vendor master has to be created and assign the supply source (Delivering Plant).

    Create a purchase order ME21N ---> Save

    Delivery VL10 G ---> Calculation rule (appropriate) --> Assign the purchase order number here and execute.

    Select the Delivery creation line and do the back ground process.

    Start the log display and see the delivery document number by the documents button

    Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery document.

    Billing (Intercompany pricing conditions should be set).

    AND

    1. Customer No. for the Goods Receiving Plant - OMGN

    2. Availability Check- Checking Rule (if necessary) - OMGN

    3. Assign a Delivery Type for the Delivering Plant - OMGN (for Stock Transport Orders, NLCC)

    4. PO type (which i believe you have done) - OMGN

    5. Assign Vendor No. to the Supplying Plant (done) - VK02

    6. Assign Customer No. to the Purchasing Plant for the Inter-Company Invoice (but you need to assign this to the Sales Organization pre-assigned to the Purchasing Plant),

    IMG-SD-Billing-InterCompany Billing-Define Internal Customer No. by Sales Org

    ***and by the way for the Invoice to work between Cross-Company Plants, you need also to have a Sales Org for the Supplying Plant and a Pricing Determination Procedure

    --

    INTERCOMPANY PRICING:

    PI01 Intercompany: fixed amount per material unit

    PI02 Intercompany: percentage of the net invoice amount

    These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice.

    The condition records you create and maintain for intercompany billing are the same kind of records that you create for pricing in general.

    IV01 Inter-company Price ERLOS Revenue

    IV02 Inter-company % ERLOS Revenue

    STO:

    STO CONFIG:

    The following steps have to be followed in order to configure stock transport order between two plants.

    1. Create a vendor for the Company code of the receiving plant using account group 0007 via T-Code XK01.

    2. In the purchasing data view assign the supplying plant and the schema group

    3. Create customer with the sales area of the vendor.

    4. The shipping conditions, the delivering plant and the transportation zone determine the route in the STO.

    5. In the pricing procedure determination relevant to the STO assign document pricing procedure and customer pricing procedure to get the pricing in the invoice.

    6. Maintain condition records for pricing condition.

    7. Maintain carrier as a partner in the customer master.

    8. In OMGN select the supplying plant and assign the company code and sales area. Similarly select the receiving plant and assign the company code and sales area (The company code to which the plant is assigned to).

    9. Assign the delivery type and checking rule to the document type.

    10. And finally, assign the purchasing document type to the supplying plant and the receiving plant.

    11. Create the STO using T-Code ME 21N and save.

    12. Check for release strategy if any and release using T-Code ME 28.

    13. Create delivery in background using VL10G.

    14. If delivery is created, it is an indication of correct configuration and master data creation.

    Stock transfer between two plants in different company codes is known as inter company stock transfer.

    Material should be maintained in both supplying and receiving plant MM01

    Stock should maintain only in supplying plant MB1C

    Create receiving plant as a customer in supplying plants company code and sales area XD01

    Assign this customer number in receiving plant details OMGN

    Assign supplying sales area in supplying plant details OMGN

    Assign delivery type NB for in combination of supplying/ receiving plants.

    Create STO ME21N

    As it is normal there in the item details we should get shipping date i.e. customer number

    Go for Delivery VL10B

    Shipping point *****

    Select PO go for execute

    then select the delivery then go for delvy ............create delvy,,,, delvy number generated.

    Goods Issue VL02

    Delvy doc **********

    Click on picking

    enter the picking qty

    Click on PGI

    in the mean time check in the PO history you will get the details

    Goods receipt MIGO

    Stock overview the stock will be updated....

    Process Flow for 3rd Party Sales

    Customize the third party sales in summary:

    Prerequisites for 3rd party sales,

    Purchasing org,

    purchasing group,

    assign the Purchase org to company code

    assign Purchase org to plant,

    should not maintain the stock in material, it should be trading goods,

    1. Create Vendor XK01

    2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".

    3. Assign Item Category TAS to Order type that you are going to use.

    4. A sale order is created and when saved a PR is generated at the background

    5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

    6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

    7. Goods receipt MIGO

    8. Goods issue

    9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

    10. Billing *--

    SD - 3rd party sales order Create Sales Order

    VA01

    Order Type

    Sales org, distr chnl, div

    Enter

    Sold to

    PO #

    Material

    Quantity

    Enter

    Save

    SD - 3rd party sales order View the PR that is created with a third party sales order

    VA01

    Order Number

    Goto Item Overview

    Item ->Schedule Item

    SD - 3rd party sales order View the PR that is created

    ME52N

    Key in the PR number

    Save

    SD - 3rd party sales order Assign the PR to the vendor and create PO

    ME57

    Key in the PR number

    Toggle the "Assigned Purchase Requisition"

    Execute

    Check the box next to the material

    Assign Automatically button

    Click on "Assignments" button

    Click on "Process assignment"

    The "Process Assignment Create PO" box , enter

    Drag the PR and drop in the shopping basket

    Save

    SD - 3rd party sales order Receive Goods

    MIGO_GR

    PO Number

    DN Number

    Batch tab , click on classification

    Serial Numbers tab

    Date of Production

    Flag Item OK

    Check, just in case

    Post

    Save

    SD - 3rd party sales order Create Invoice

    MIRO

    Invoice Date

    Look for the PO , state the vendor and the Material

    Check the box

    Click on "Copy"

    Purchase Order Number (bottom half of the screen)

    Amount

    State the baseline date

    Simulate & Post

    Invoice Number

    *Invoice blocked due to date variance

    SD - 3rd party sales order Create a delivery order

    VL01N

    In the order screen , go to the menu Sales Document , select "Deliver"

    Go to "picking" tab

    State the qty and save

    SD - 3rd party sales order Create a billing document

    VF01

    Ensure that the delivery document is correct in the

    Enter

    Go to edit -> Log

    Save

    Third party order processing is as follows:

    Assume three companies X, Y and Z

    X - The company,

    y - The customer

    Z - Vendor

    When ever X gets a PO from Y to supply some goods, X has an option of either manufacturing those goods or procuring those goods.

    If he is procuring the goods, there are two methods that are generally followed:

    Method 1) After receiving the PO from Y, X creates a sales order against Y.

    Now at the same time he also creates a PO to a vendor Z to produce the goods

    Z produces the goods and supplies to X

    X receives the goods from Z

    Then X delivers the same goods to Y.

    After that X invoices Y and Z invoices X.

    Note : Here there is no direct/ Indirect relation between Z and Y.

    This process is known as Trading Process. and the Material here is created with Material type HAWA.

    The other method is a Third party order processing method:

    Here the glaring difference is that instead of Z supplying the material to X and X in turn supplying the same material to Y.

    X authorizes Z to supply the material to Y on his behalf and notify him once the delivery is complete.

    Now Z supplies the material to Y and acknowledges the same to X.

    Z will send a copy of delivery acknowledgement and invoice to X.

    After receiving the delivery confirmation and invoice from Z, X has to verify the invoice and this process is known as invoice verification and is done in SAP through Tcode MIRO.

    The next step for X is to create an invoice and submit to Y

    Only after the invoice verification document is posted then only X can create an invoice for Y.

    This is the business flow that is followed for third party order configuration.

    There are few steps that have to be configured to enable the system to function as mentioned above.

    Step1)

    If you are always following a third party process for a material then you have to create the material using item category group BANS.

    The procurement type should be marked as External procurement (F) in MRP 2 view of the material master record.

    if you are not always allowing third party order processing then u can create a material master record with item category group as NORM and the procurement type should be marked as ( X) meaning both types of procurement ( in house manufacturing and external procurement).

    Step 2)

    the item category in the order should be manually changed as TAS.

    For that you need to configure the item category determination

    Order type + item cat Group + Usage + High level = Item cat + Manual item cat

    OR + NORM + + = TAN + TAS

    OR + BANS + + = TAS

    Step 3)

    make sure that during the item category configuration for TAS you need to mark relevant for billing indicator as F

    step 4)

    The schedule line category for this type should be CS.

    make sure that you mark subsequent type as NB - purchase requisition in this schedule line category as this will trigger the purchase requisition order immediately after the creation of the sales order and the PO to vendor is created against this purchase requisition

    Hope this will help you alot and Please Reward If Really Helpful,

    Thanks and Regards,

    Sateesh.Kandula

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  • avatar image
    Former Member
    Jun 08, 2007 at 09:30 AM

    Hi Chandu,

    Intercompany business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code.

    The following intercompany business transactions are possible:

    Intercompany sales processing:--

    A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code.

    The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.

    Intercompany stock transfer:--

    A purchasing organization which is assigned to the ordering company code creates a purchase order ordering goods from a plant assigned to another company code.

    The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.

    Working with intercompany sales order:----

    When you create a sales order, you specify the sales organization of the ordering company code. The system can propose a delivering plant from the following master records:

    Customer info, customer and material.

    Working with intercompany deliveries:--

    Depending on the intercompany business transaction, the goods are delivered as follows:

    for intercompany

    sales processing to the customer

    for intercompany

    stock transfer to the plant assigned to the

    ordering company code

    You process the delivery as usual, selecting a shipping point that is assigned to the delivering plant.

    Goods issue is carried out in the delivering plant.

    Working with intercompany billing:-

    The delivery may have to be processed for billing twice.

    • The delivering plant processes the delivery to create an intercompany billing document (billing document type IV) for the selling company. This company code posts invoice entry for this billing document.

    The billing document is automatically billed to the internal payer that is assigned to the sales organization. The intercompany charges that appear in the intercompany billing document represent the actual amount that the delivering plant is charging the sales organization.

    • If the selling company is selling the goods to a customer, it processes the delivery to create an invoice for this customer. The system can take the prices from the order or determine new prices. It takes the quantity to be invoiced from the delivery.

    The billing due list for the intercompany invoice is generated after the customer invoice has been created.

    Working with Intercompany Sales Processing :--

    Intercompany sales processing consists of the following three stages:

    • Processing sales orders

    • Processing deliveries

    • Billing

    The sales organization and the plant are assigned to different company codes and have the following responsibilities:

    Sales organization: Processes the sales order

    Bills the customer

    Plant: Delivers goods to the customer

    Bills the ordering company code (sales organization) - this is intercompany billing.

    Intercompany billing uses SAP EDI to carry out posting to vendor account for the ordering company code.

    Prerequisites for Intercompany Business Processing:--

    Certain prerequisites must be met before you can process intercompany sales.

    The following data must be defined in Customizing for Sales by your system administrator:

    • If you need to use the intercompany billing document, billing type IV must be maintained and assigned to the relevant sales document types

    • Output type RD04 is used to enable intercompany billing to carry out posting to vendor account or invoice entry. In the standard system, billing type IV is assigned to output procedure V40000, which contains this output type.

    For information on setting up intercompany billing, see the online Implementation Guide.

    Billing type IG is used for internal credit memos.

    • For condition records used in intercompany sales processing, one of the following condition types must be maintained:

    o PI01 (fixed amount per material unit)

    o PI02 (percentage of the net invoice amount)

    • Permissible combinations of plant and sales organization must be defined

    • Sales area data (sales organization, distribution channel, and division) must be assigned to each plant that participates in intercompany sales processing

    • You must also create the following Sales master data:

    • A customer master record for intercompany billing; this must be assigned to the ordering company code.

    • Condition records for intercompany billing for every permissible combination of plant and sales organization.

    Reward points if u helpful

    Cheers,

    Govind.

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    Former Member
    Jun 22, 2007 at 07:19 AM

    thanx

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