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Intercompany Steps

Hi All...

Can anyone guide me step by step process for the Configuration settings for Intercompany Scenaria i,e for Company Code, Sales Org and Plant.

Thanks

Aleem

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    author's profile photo Former Member
    Former Member
    Posted on Nov 30, 2007 at 04:11 PM

    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

    OBSERVE THE CONDITIONS SCREEN OF THE INTERNAL INVOICE:

    IV01 Condition type represents revenue for the supplying company code.

    VPRS condition type represents cost to the supplying company code.

    PR00 in intercompany billing document displays amount billed to the end customer. It serves as just an information item and is inactive.

    If the ordering company enters the incoming invoice manually, the delivering company can print out an invoice document with the help of output type RD00, which is then sent to the Payer.

    If automatic invoice receipt has been agreed, we must use the SD output control functions to ensure that output type RD04 is found in internal billing. In R/3 system, output determination procedure V40000, which includes this output type, is assigned to Intercompany billing type IV.

    The automatic posting to the vendor account is initiated when output type RD04 is processed. The system uses the EDI output type INVOIC in the FI variant.

    To ensure that payables are posted in financial accounts of the ordering company, the delivery company must be created as a vendor.

    Configure Inter company 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 assaign the supply source ( Delivering Plant).

    Create a purchase order ME21N ---> Save

    Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign 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

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 30, 2007 at 03:55 PM

    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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  • author's profile photo Former Member
    Former Member
    Posted on Dec 01, 2007 at 08:11 PM

    hi all

    i am very much confused about the intercompany customer whether to create in the ordering sales area or the delivering plant sales area.

    please guide me

    thanks

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    • Former Member

      hi

      you have to create the customer from delivering plant sales area and assign to ordering plant sales area so that ordering plant becomes customer

      regard

      Mahesh

      otc consultant

      reward points

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