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Former Member

Intercompany Sales settings


Can anyone please tell me in brief the necessary and mandatory settings required in case of Intercompany Sales Scenario?

I checked few threads but couldn't get a satisfactory answer.

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3 Answers

  • Best Answer
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    Former Member
    Jul 17, 2008 at 03:13 PM

    Hi christino,



    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.


    1) End Customer 2) Ordering Company code 3) Supplying Company Code.


    Assign Delivery Plant of the supplying company code to Sales Org + Distribution channel of the Ordering company code in the Enterprise Structure.


    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: XD01

    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.


    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: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).



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    • Former Member

      Hi Rupali,

      Nice to see ur mail, here let me know the reversal document flow in intercompany sales...

      here me getting the error like, after canceling/reversing the invoice, i rev resed delivery document with VL09. then tried to post the delivery again after doing some corrections... but there me not see the quantities available...

      so, please do respond immediately....

      with regards


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    Former Member
    Jul 17, 2008 at 03:33 PM

    Hi Christino

    Please go to SAP building Block

    and look for

    J62: Cross-Company Code Sales Order Processing

    This would definitely help you.


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    Former Member
    Jul 17, 2008 at 03:34 PM


    The internal customer must be assigned to the ordering plant sales organisation. (Internal customer must created in delivering plant / Sales area). This customer will act as intercompany customer.

    The deliering plant must be assigned to the ordering sales org and distribution channel (SPRO --> Enterprise structure --> Assignment --> Sales adn distribution --> Assign plant to sales and distribution channel) This assignment is only possible when the internal customer assignment is done correctly.

    The material must exist in both the plants. The intercompany pricing condition PI01 should be set. Copying control should be set. In standard SAP, the copying control will be already set.

    These are the settings in brief. Once you start configuring, you may get more doubts, post those in forum.


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