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Intercompany Sales + Subcontracting Dropship Process

Feb 11 at 01:38 PM


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Company Code A creates an Intercompany sales order for a customer for a product with delivering plant from Company Code B. While creating a Sales Order, a PR should be raised to company code B

Based on the PR, Company Code B sends the product to a subcontractor for enhancement on the product. Ship to in sales order is final customer.

Company Code B ships the product to subcontractor in a subcontracting PO.

Subcontractor receives the product and performs enhancement operation and ships enhanced product to final customer.

Once customer receives the enhanced product, invoice the customer, Company Code B creates inter-company invoice to Company Code A at Cost + mark up.

Please help me in how shall I Map the scenario? system is S/4 Hana.

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2 Answers

Jürgen L
Feb 11 at 03:54 PM

It sounds as if your subcontracted material is the same material number as the component.

It is from my point of view not logical to create a PR "to company code B", what ever this "to company code B" really means.

With a sales order which has already plant B as delivering plant there is no reason for an additionally create PR.

The requirement is immediately seen in plant B when the sales order is saved. And when the product to be sold to the customer is not in stock then the MRP run in plant B will create a requisition or planned order to get this material into stock so that it can be shipped from here.

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Hey Jürgen,


I agree with your point of view. Now, another catch in this is I shall be creating an inter-company sales order, after which the delivery would take place through subcontracting drop-ship method. How will I be able to generate the invoice to the customer and Inter-company Invoice for the company code A from company code B, without SD delivery?

I am stuck literally here.

Is there any functional module to be used or an Idoc or any other solution to this.


Tejas Raval

Tejas Mahesh Raval

Why can your plant B not create a delivery?

if your plant B is not even on SAP to create deliveries then you can't just do this scenario in SAP and you need to use a normal sales order in company A and bill it from here after you got an email or telephone call informing you that the material is one the way to the customer.


Actually that's the scenario which you have identified. The customer is going to provide us a notification that they have received the goods, after which we will raise an invoice to them and than to company A.

Now, the question that I am embroiled in is, With which documents reference will I be able to create and invoice to the customer and than generate the inter-company invoice.

PRASOON AK Feb 11 at 04:01 PM


Seems the complexity is mainly with the subcontracting along with third party. You may check the option with the business function:

LOG_MM_OM_2 - refer the documentation on the standard feature "Third-Party Order Processing for Subcontracting" in the help doc:



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Will surely check, Thanks for you input Prasoon.


Tejas Raval