Inter Company Process

[Former Member]

Could any one provide the configuration for Inter Company Process.

[Former Member · Accepted solution]

INTER COMPANY BILLING

Definition:

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: 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.

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: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.

[Former Member]

> Could any one provide the configuration for Inter Company Process.

Hi Rakesh,

Follow these steps for intercompany process:

Step 1: DEFINE ORDER TYPES FOR INTERCOMPANY BILLING

Path: IMG - SD-Billing - Intercompany Billing - Define Order Types for Intercompany Billing.

Step 2: ASSIGN ORGANISATIONAL UNIT BY PLANT

Path: IMG - SD - Billing - Intercompany Billing - Assign Organizational unit by Plant

Step 3: EXTEND CUSTOMER

Extend a customer of one sales organization belonging to the ordering company code to another sales org. belonging to the 2nd company code in customer master data.

T-code: Xd01

Continue and create customer i.e. ship to party.

Step 4: ASSIGNMENT OF SALES ORG - DISTRIBUTION CHANNEL -PLANT

Path: IMG - Enterprise Structure - Assignment - SD

Step 5: CREATE CUSTOMER AND ASSIGN CUSTOMER NUMBER TO 2ND SALES ORG

This customer is nothing but the corporate office. We assign a customer no. to the corporate office. This corporate office will be assigned as an internal customer.

T-code: Xd01

Step 6: DEFINE INTERNAL CUSTOMER NUMBER BY SALES ORG

Path: IMG - SD - Billing - intercompany billing - Define internal customer number by sales org

Step: 6 MAINTAIN CONDITION RECORD

T-code: VK11 -- PI01 Here we maintain the price for intercompany that is for the corporate office.

Step: 6A T-code: VK11u2014PR00

Maintain a condition record for material in both sales orgs.

This PR00 is for the customer who is actually ordering the Material.

Step 7: CREATE SALES ORDER

T-code: VA01

Step 8: PICKING & PGI

Step 9: DELIVERY

[former_member218017]

Great explanation!

[Former Member]

Hi,

Suppose One Customer Orders for a Material to Reliance Mumbai. and Stock is available in Reliance Pune.In that scenario Reliance pune will deliver that Material to customer.

1. Reliance Mumbai Will bill to customer.

2. Reliance Pune Will Bill to Reliance Mumbai.(Intercompany Billing)

Config Part.

1. Create One customer(X) in Reliance Pune and extend the same to Reliance Mumbai

2. Extend Material to both Reliance Pune & Mumbai.

3. Assign Customer X to sales organisation Of Reliance Mumbai in CustomisationEnterprise structureSales & Distribution-Define Sales Organisation-Intercompany Customer

4.Assign Plant of Reliance Pune to Sales Org & Dist Channel of Reliance Mumbai in customisation.

5. SproIMGSD-Billing-Intercompany Billing

A) Assign Document Type with IV

B) AssignPune Plant With Sales Area of Mumbai

C) Assign Customer X With sales Org of Mumbai.

6. Maintain Pricing Proc of Reliance Pune by condition type IV01 with subtotal-B & Req-22.

7.Maintain Pricing Procedure of Reliance Mumbai with condition type PI01 ,S=statistical,Subtotal-B,& Req-22

8.Maintain Condition Records In Vk11 of IV01 and enter Sales org of Reliance Mumbai & Plant of Relaince pune.

9. Maintain Account Determination in VKOA of Sales Organisation of Reliance Pune.

10. Maintain Pricing Proc Determaination Relaince Pune by maintaining (I) in doc Pricing Procedure and assigned it with sales area of Reliance Pune.

11. Create Sales Order with Sales Area Of relaince Mumbai & Plant Of Reliance Pune.

12.Deliver that order & invoice to customer.

13. Create intercompany billing through VF04.

Hope it helps you to understand Intercompany Billing Procedur.

Revert in case of further clarification.

Regards

Amit Gupta

[Former Member]

INTER COMPANY STO

1. Create a customer in the supplying sales area.

2. Create a vendor in the ordering sales area.

3. Extend the material from ordering to supplying.

4. Then go the IMG >MM >Purchasing >Purchase Order >STO > define

shipping data to plant, here select supplying plant and maintain its own sales

area. Then go to ordering plant and enter customer which was created in the

step 1.

5. Then assign document type NB and Delivery type NLCC maintain it for

supplying plant and maintain Checking rule as u201C01u201D.

6. Decide between 1 step and 2 steps.

7. In XK02 in the vendor master go to purchasing data > purchasing > Extras >

Additional Purchasing data, here assign the supplying plant.

8. Maintain pricing procedure with supplying organisational data with Dopp N

and Maintain Pricing for PI01(combination of supplying sales are and its

Plant)

9. Go to ME21N put the vendor and material with quantity and enter the

supplying plant in the line item.

10. Go to VL10B give the PO No. and enter, select the line item and click back

ground. ( where del. Will be created in the back ground)

11. Go to VL02N for picking and PGI.

12. Then do the Billing with billing type IV.

[Former Member]

Hi,

For intercompany biling Company 2 Pricing Procedures has to be maintained ie. one regular Pricing procedure and another ICA001 i.e Intercompany Pricing Procedure.

1. As in intercompany billing company 2 (supplying company)bills to company 1(ordering company).

2. Maintain Pricing procedure ICA001 for sales org-2 with Subtotal-B, Req-22

3. Maintain condition type IV01in vk-11 with sales og-1 & Plant.

4.Maintain Pricing procedure(I) in doc pric proc and assigned it with sales area-2

5.create intercompany billing in vf04

Revert in case of further clarification.

Regards

Jaiprakash P.T