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3rd Party Sales Order with InterCompany PO

Oct 09, 2017 at 03:26 AM


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Former Member

Hi All,

I have a SD/MM (quasi 3rd Party Sales) process that I thought was going to be a walk in the park to set up. Now, not so sure. Anyone care to steer me back on track?

Scenario summary is this:

  1. External customer A places sale order for article 1 on Site A, which belongs to C.Code A.
  2. Site A is to place an automatic PO on Site B for Article 1. Site B belongs to C.Code B.
  3. Site B then issues the article directly to the external customer A
  4. Site B then invoices Site A for Article 1 (inter-company)
  5. Site A then invoices Customer A for Article 1

So, above is the basics. Its not really 3rd party, but its not really an inter-company process either. I went down the track of creating a dummy vendor (representing Site B) and then assigning Site B to that vendor as Different Data for purchasing. Thought I was onto something there, but does not seem to work.

I would be pretty happy to get the above basics working... then to complicate it we have this grand notion that the Site A will actually be "virtual", so would prefer not to see inventory coming in / out.... hence the quasi 3rd party.

Any novel ideas most welcome.


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Apologies in advance for the dumb question, probably I misunderstood some part of the explanation.

What is the purpose of the PO between site A and B when B delivers directly the ordered product to customer A?

Former Member

HI and thanks for your reply. You highlight that I have missed an important point. The reason is that:

  1. Site A and Site B belong to two completely different companies (company codes)
  2. Site A and B therefore have an Inter-Company trading relationship, but
  3. Customer A only has a relationship with Site A (from the customer viewpoint Site B / Company B do not exist)

So, the idea of the PO is so that Site A can purchase and pay Site B for the product that Site B will send to Site A's customer directly.

Hope that makes sense....?


Still confused, sorry.

Customer A calls a sales representative in company A (Austria).

The sales rep. creates an order in sales org. A000 (this is Austrian pricing) and delivering plant B001(belonging to company B, Germany).

The customer does not need to know and usually does not care where you produce and from where you deliver the products, as long as he gets a valid sales invoice (F2) from Austria and adequate price.

With classic cross-company sales you will get inter-company invoice (IV) between Germany and Austria based on the outbound delivery without the need to go through a separate stock transfer.

There is a blog series about linking sales and procurement (just search the site for Integrating MM & SD Modules in Same Client and filter by blog type), but it looks different to what you described as a desirable outcome. To me your process looks as a normal cross-company sales.

Former Member

Well that could be because of my terrible explanation. Apologies. You may be right that this is a standard inter-company sales scenario. We are running a retail system, not sure if that makes any difference. Perhaps the whole PO piece is not necessary, and I find a way to:

  1. Create a SO to customer A
  2. Deliver to Customer A, from Site B / Company Code B
  3. Invoice Customer A from Company Code A
  4. Inter-Company Invoice Site A / Company Code A from Site B / Company Code B

Wish there was some good documentation on configuring this type of scenario, if indeed it is even possible!

Thanks for your help.


Sorry about the delayed response, but you replied to your own post instead of mine and I did not receive any notification. :)

What you describe is the standard inter-company process, but please take this with a grain of salt and add a Retail tag to your question to get a higher chance of relevant replies by people with access to a retail system.

There are some very useful SAP notes with good level of detail on the topic. I would recommend that you start by reading 308989 - Consulting note for cross-company transactions, to be more precise, the sections about delivery-related cross-company process, cross-company sales. Try replicating the sample process in a sandbox and see if it works in your system. Don't jump right away at configuring automated billing, try first to make an end-to-end case with manual invoice processing. If you manage to get the manual process working, show the result to your FICO colleagues and ask if they are satisfied with the outcome. If yes, they could probably help you with automated billing setup if this is necessary.

Former Member
Veselina Peykova

Oh, so I did..! Sorry about that. Thanks for your answer and for taking the time. It will be of great assistance.

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1 Answer

Jelena Perfiljeva
Oct 09, 2017 at 07:09 PM

To add to Veselina's answer (hidden in the comments :) ): this seems similar to our manufacturing scenario (see my very old question). Ours was a bit more complex because it was subcontracting, not just straightforward sale.

Your scenario indeed looks like a simple inter-company but if there is more to it then we've implemented a similar process without actually using the inter-company process or document types. Document creation is handled by some custom programs (between your 2 and 3 above we actually create an SO in Site B) and the standard background jobs (delivery / billing).

I don't recall what were the specific business requirements that drove this decision and I wasn't the one to configure the whole thing but I can look up more information in our system, if needed.

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Former Member

Thank you for your reply. Yes, it looks simple, I agree. Beginning to think I am over thinking it. Will keep digging. Thanks for your reply.