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INTERCOMPANY BILLING

Former Member
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hi gurus

the following is my intercompany sales scenario

Orering comp. code delivering comp.code

COMP CODE AAAA HHHH

SALE.ORG AAAA

DC AA

DIV AA

PLANT AAAA HHHH

SHIP POINT AAAA HHHH

This is my scenario.

my question is

1. How can I make a inter company customer, means which company code and sales area &plant?

2. In “Assign organizational to plant” step which plants I have to assign?

3. how to configure inter company price?

thanks

Accepted Solutions (0)

Answers (4)

Answers (4)

Rohit_Zalani
Participant
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Hi,

The intercompany sales process is between two company codes. Sales is under one company code and delivery is under the second company code.

Having said that, the following needs to be performed:

On the customization aspect, you have to assign the delivering plant to the sales org / dist channel combination. <b>Note that the delivering plant still belongs to the second company code.</b> Esteemed members of this forum have already pointed out the other aspects of the customization required.

On the master data requirements:

a. The material to be sold needs to have sales views in the selling sales org / dist channel.

b. The sold to party remains in the sales area of the selling sales organization.

c. The internal customer that you assign to the selling sales organization is maintained in the sales area that would be used for intercompany sales. This is the sales area that you would have maintained for the delivering plant.

Hope this helps.

Regards,

Rohit Zalani

Former Member
0 Kudos

hi

taking u r scenario

AAAA=ORDERING COMPANY

HHHH= DELIVERING COMPANY

1) First create Inter company customer AAAA in delivering company HHHH/HH/HH sales area

2)goto IMG-enterprise structure-assignment---sales and distribution--assign sales organisation dc,plant

here assign delivering plant to u r sales i.e HHHH plant to sales area AAAA/AA/AA

and in 'ASSIGN ORGANISATIONAL UNITS BY PLANT" assign

HHHH to sales area AAAA/AA/AA.

3)and maintain intercompany priice PI01 in ordering company i.e., AAAA

hope i am clear

regards

Former Member
0 Kudos

thank u prasanth,

but still i hav some doubts.

1.while creating customer,

i hav to use which

company code

sales org

dist.channel

div

and plant.

2.how can i assign plant HHHH to company code AAAA ,that is already assigned to company code HHHH.

kindlly help me

thanks

Former Member
0 Kudos

Hi mani,

Quest no 1:

Customer will be created using supplying sales organisation..

That customer will be assigned to ordering sales organisation.

So that intercompany billing can be raised for Ordering sales Org

by Supplying sales Org.

Quest no 2:

Supplying plant is assigned to ordering sales organisation and distribution channel.

No need of assigning it to ordering company code.

This assignment is possible since you have assigned supplying plant to

respective sales area in intercompany billing configuration.

Regards,

vimal

Former Member
0 Kudos

> thank u prasanth,

>

> but still i hav some doubts.

> 1.while creating customer,

> i hav to use which

> company code

> sales org

> dist.channel

> div

> and plant.

<b> u have to create the customer in delivering company sales area. IN u r case HHHH?HH?HH sales area</b>

> 2.how can i assign plant HHHH to company code AAAA

> ,that is already assigned to company code HHHH.

>

<b> u r assigning plant to the sales area of the ordering company not to the company code </b>

> kindlly help me

>

> thanks

Former Member
0 Kudos

A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group.To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B. It is imperative that both Plants A & B should have the material. In other words, the material is created for both the Plants A & B + their respective storage locations.

Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code.Sales organizations and plants assigned to each other need not belong to the same company code.

In other terms, a plant belonging to Company code A & assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company sales.

PARTIES INVOLVED

1) End Customer 2) Ordering Company code 3) Supplying Company Code.

End customer:

Customer who orders goods from the ordering company code.

Ordering Company Code:

Which orders goods from Plant belonging to Supplying Company code through its sales organization and bills the end customer.

Supplying Company Code:

Supplies goods from its plant to the end customer specified by the ordering company code and bill the ordering company code.

CONFIGURATION SETTINGS

Assign Delivery Plant of the supplying company code to Sales Org + Distribution channel of the Ordering company code in the Enterprise Structure.

DEFINE ORDER TYPES FOR INTERCOMPNY BILLING:

Menu path: IMG/ SD/Billing/Intercompany Billing/Define Order Types for Intercompany billing

Assign Organizational units by Plant:

Menu Path: IMG/ SD/Billing/Intercompany Billing/Assign Organizational units by Plant.

Define Internal Customer Number By Sales Organization:

Menu Path: IMG/ SD / Billing/ Intercompany Billing/ Define Internal Customer Number By Sales Organization:

Creating / Showing Ordering Sales Organization as Internal Customer for Supplying Company code:

Transaction Code: XD0

The ordering sales organization is represented as Internal customer of Supplying company code.

We need to create customer master in Account Group – Sold to Party and maintain minimum required financial & Sales Area data.

This internal customer number has to be assigned to the ordering sales organization. Hence, the system automatically picks up this Internal customer number whenever there is Intercompany billing.

PRICING:

We need to maintain two pricing procedures RVAA01 & ICAA01. Pricing procedure RVAA01 represents condition type PR00 & any other discounts or surcharges that are meant for end customer.

We assign Pricing procedure RVAA01 to combination of Sales area (Of Ordering company code) + Customer Pricing Procedure + Document Pricing Procedure of Sales document type.

This pricing Procedure (RVAA01) is determined both at Sales Order level & Billing processing for the end customer.

We maintain PR00 condition type to represent the ordering company code’s price to the end customer.

Condition records for PR00 are maintained using organizational elements of Ordering company code, end customer & the Material.

Eg: Sales Org. of Ordering company code + End customer + Material.

We also need to maintain PI01 condition type to represent costs to Ordering company code (in other words revenue to supplying company code). It is statistical condition type & meant for information purpose only.

Condition records for PI01 are created with the following key combination:

Ordering sales Org + Supplying Plant + Material

Pricing Procedure ICAA01is determined at Intercompany billing processing level.

Pricing Procedure ICAA01 – Pricing Procedure for Inter company billing is assigned to the combination of:

1) Sales Area (of supplying company code) + Document pricing Procedure of Billing document type IV + Customer Pricing Procedure of the Internal customer.

Pricing Procedure ICAA01 has condition type IV01 that represents revenues for Supplying company code in the intercompany billing.

PR00 condition type also appears in Intercompany billing document. It is for information purposes only and does not have bearing on the value of the document.

PI01 represented under pricing procedure RVAA01 is reference condition type for IV01 and the same is defined in the condition type IV01. Due to this these two condition types represent same value.

The condition type IV01 in intercompany billing document represents revenue to the Supplying Company. But its corresponding condition type PI01 in the billing document to the end customer is shown as a statistical item meant for information purposes.

Condition Type VPRS in the intercompany-billing document indicates cost to the supplying company code.

The use of two different condition types in Intercompany billing is necessary to ensure that data is transmitted correctly to the financial statement (Component CO-PA).

ILLUSTRATION:

STEP 1: Create Sales Order

Manually Enter the Delivery Plant of the Supplying Company Code:

OBSERVE CONDITIONS SCREEN FOR ITEM:

PR00 represents Price to the end customer (in other words, revenue for the ordering company).

PI01 represents cost to ordering company (in other words, revenue for the supplying company). It is represented as statistical item only.

DELIVERY:

Delivery is carried out from the supplying point & hence we can observe that it is done from shipping point assigned to the supplying point.

Subsequently, Picking & PGI are carried out.

BILLING TO END CUSTOMER:

T-Code: VF01

Create Intercompany Billing:

T-code: VF01

Former Member
0 Kudos

HI

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

Former Member
0 Kudos

Hi prashanth,

Could you elaborate more on Intercompany billing with Payment Guarantee Procedure(i,e Letter Of Credit).....?

Regards

Md Shafi

Former Member
0 Kudos

Hi,

go through the Intercomapny billing process

• SPRO- IMG- SD- Billing- Intercompany Billing:

o Define Order types for Intercompany billing

o Assign organizational units by plant

o Define internal customer no by sales orgn

• Assign Sales Doc relevant for Intercompany billing

IV&#61472;&#61614;o POR

IV&#61472;&#61614;o OR

• Assign Organizational Units by plant: assign sales area of ordering company to the delivery plant.

o 1000 5555 – 56- 58&#61472;&#61614;

Plant Descp Sales Orgn Descp Distbn Descp Division Descp

1000 5555 56 55

• Define internal customer no by sales orgn: create the customer of the ordering company in the company code of the delivering plant, but with the sales area of the ordering the company

Sales Orgn Descp Customer Inter Comp Descp

PBIL 215

• Pricing procedure: PI01 (Intercompany pricing)

• Determination Rule: OVKK

PBIL PW GC A 1 RVAA01

PBIL PW GC I 1 ICAA01

• VK11: PI01

• Create Order: VA01: POR: 5555-56-58: customer- 215, product- Nimulid, supplying plant: 1000.

• Delivery

• Goods issue

• Invoice for customer

• Invoice Intercompany billing

Processing an Intercompany sale:

To create an Intercompany sales transaction proceed with creating the standard sales order. In the sales order, change the delivering plant at the line item level & create a delivery for the new shipping point represented for the delivering plant. Proceed with the delivery functions of selecting the packing & posting the goods issue. Then create an external invoice that will be sent to the customer & create an Intercompany invoice. That will represent the billing doc between the delivering plant & the selling sales orgn.

An internal Intercompany invoice can be created by entering the delivery no again for processing when using the transaction VF01. One can also select the doc due for Intercompany billing by using the billing due list VF04. When using the billing due list be sure to select the Intercompany-billing doc as the documents to be used, by checking Intercompany billing.

A Check List for Intercompany sales processing can be the following:

The enterprise structure must be maintained correctly, i.e., the plants must be assigned to the correct company codes as well as to the correct combination of sales orgn’s & distbn channels.

The Intercompany customer must be assigned to relevant sales orgn’s

The delivering plant must be assigned to the sales orgn.

The material to be sold must exist in the original & delivering plant.

The sales order must be relevant for Intercompany sales & have an assigned billing doc type

The copy control rules must be defined between the standard invoice, such as F2, & the inter company invoice, such as IV.

The pricing proc may have a special cond type assigned to it. This special cond type may represent the price to Intercompany sales orgn or it may represent a special discount offered to the Intercompany sales orgn for the material sold

The standard system has the following cond types:

To represent the Intercompany price as quantity-dependent.

To represent the Intercompany condition as percentage