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inter comp


Please give me the configuration of intercompany billing



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  • author's profile photo Former Member
    Former Member
    Posted on Jun 19, 2008 at 04:08 AM

    Hi Das,

    Please go through this link it will help you about inter company billing.

    I hope it will help you,



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  • author's profile photo Former Member
    Former Member
    Posted on Jun 19, 2008 at 05:04 AM


    please follow the below intercomapany steps

    1) Define order type to intercompany billing

    Order type-----OR assign to intercompany billing type IV

    2) Assign organizational units by plant

    A) Plant1200 (delivering plant) assign to ordering sales area (10001000)

    3) Define internal customer number by sales org?

    Sales org(1000) from ordering company and the internal customer must be define in ordering company only

    Sales org(1000) +10001internal customer number

    4) Material extension

    in mm01

    Give delivering company Plant & storage location

    Give ordering company sales org & dstr

    if it is helpfull please reward me

    Thanks & regards


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    • Former Member Former Member


      The order will be created in the ordering sales area to the end customer, but the plant will be given as the delivering plant (supplying plant).

      As you know, the material should exist in both the plants. The internal customer should be maintianed in the ordering sales organisation, the delivering plant should be assigned to ordering sales org + Distribution Channel combination and the intercompany pricing should be maintined.


  • author's profile photo Former Member
    Former Member
    Posted on Jun 19, 2008 at 05:09 AM


    Hope this help u. Award points if u find it useful.

    Please check this :

    Intercompany sales & Business Processing

    An Intercompany sale transaction takes place when a sale occurs & the selling sales orgn belongs to a different company code than that of the delivery plant.

    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.

    Ordering company Supplying company

    Company code: 5555 1000

    Sale Organisation: 5555 PBIL

    Distribution channel: 56 PW

    Division: 58 GC

    Plant: 5555 1000

    Customer: 215 Product: Nimulid

    • Ent Stru- Assignment- SD- Assignment- SD- Assign Sales Orgn: Distbn Channel- Plant

    Sales Orgn Distbn Channel Plant

    PBIL PW 1000/ 5555

    5555 56 5555/ 1000

    • 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o POR

    IVo OR

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

    o 1000 5555 – 56- 58

    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



    • 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.



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  • author's profile photo Former Member
    Former Member
    Posted on Jun 19, 2008 at 06:48 AM

    Hi Rash,

    Let me explain u the scenario.

    In Inter company sales..

    The SO receives an order and say suppoze if the plant linked to that company code cannot supply the specified materials then the SO internally passses the order to another plant which is linked to another company code.

    In this case it is pretty obvious that the Initial SO acts as a customer to the delevering plant.

    We can assign the required plant/delivering plant in VA01 by changing the value in the plant field of the Sorder.

    Then the SO bills its customer and internally the plant bills the SOrg.

    Hope this is clear.Award points if u find this explanation useful.



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