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Third party sales with Intercompany scenario

Nov 29, 2017 at 09:27 PM

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Former Member

We have 3 companies in SAP. C1, C2 and C3. and product is make to order.

C1 - registers customer sales order

C2 and C3 are manufacturing facilities.

we want to register sales order in C1 and deliver the material directly from C2 or C3. which means the inventories will directly deliver to Customer from manufacturing facilities C2/C3. The final invoice to customer will be done in C1.

I have below questions.

1. How the billing will be done between C2/C3 and C1.

2. How to map process in SAP. Can any one specify the process/steps or refer to related document?

CR

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1 Answer

Veselina Peykova
Nov 30, 2017 at 03:41 AM
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Maybe I missed some important part of the explanation.

This looks like a normal inter-company sales process to me.

In the sense of SAP SD third party sales is when an external vendor produces the finished product and delivers directly to the customer on your behalf.

Here you only mention structures of own companies.

Customer A calls the sales office of company C1 (C1A1) to place an order. The clerk creates OR for sales organization C100 with delivering plant C220 (of company C2).

Is there a reason why inter-company sales process cannot be used?

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Former Member

Yes I believe. The delivery is happening directly from C2 (C220) company and there is no stock transfer to C1 therefore STO seems irrelevant here.

I am mainly looking for intercompany billing, how that has to take place.

any advise..

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Intercompany sales do not involve STO.

You have sales order -> outbound delivery->warehouse activities->goods issue -> F2 billing -> IV billing.

If you are not familiar with it: if you search online for intercompany sales process sap you can find a lot of information, including youtube videos with demos and explanation of customizing.

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Former Member

Thank alot Veselina, this solved a mystery for me.

One more annoying question :), what is standard process to handle advance payment between these 2 entities for inter company sales.

for example, C1 received an order from customer. and delivery plant is from C2. Now if C2 wants an advance payment from C1 for a particular order then what is the standard process and how does it reflect in document flow.

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Why would C2 ask C1 for advance payment? They don't believe that they will be paid for delivering to A?

I have never worked for a company where subsidiaries sue each other over unpaid invoices, this is probably rare.

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Former Member

certain items are quite expensive and have longer lead time and requires advance payment from the facility to procure raw material. This is something they put as process.

is there any way of handling advance between 2 companies?

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