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Inter Company Billing

Hi All,

We are working on a scenario where one company code located in UK gets project from end customer in UK say for example for 100 GBP. They in turn offload the entire project to their counter parts in India (which is under a different company code) for 70 GBP. Billing will be done from India to UK company code for 70 GBP and UK company code bills end customer for 100 GBP.

Please let us know how to configure this scenario in SAP so that 100 GBP is the sale in the books of UK compnay code and 70 should be the purchases for UK company code. Similary 70 GBP should be the revenue for Indian company code.

Can this be taken up through Inter company billing process, if so please provide the details.



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2 Answers

  • Best Answer
    Nov 06, 2009 at 03:38 PM

    UK Company - A

    Indian Company - B

    Company A raise a PO on B @ 70 GBP. Based on this PO, Company B will create a sale order on A, make delivery and do billing.

    Company A will have to do MIGO based on above PO, create a sale order on UK customer @ 100 GBP and follow the normal SD process.

    This is only a simple explanation. Its all depends on financial implications / requirements of the client.


    G. Lakshmipathi

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  • Nov 13, 2009 at 03:04 PM


    in intercompany sales process it is possible to use the codntions PI01 or PI02 and IV01 or IV02.

    The condition PI01 or PI02 is determined in sales order with normal condition technique. It replaces VPRS and represents the cost for the selling company. It is statistical.

    The customer billing document has the same condition.

    In the intercompany billing document, the price PR00 is set inactive and the condition type PI01/PI02 is replaced with condition category IV01/IV02.

    Due to the reference to condition type PI01/PI02 defined in the definition of condition type IV01/IV02, the system determines

    identical condition values.

    So, if PR00 = 100, PI01 = 70 (or PI02 = 70%) in sales order and customer billing.

    In tercompany billing the price will be IV01 (or IV02) = 70

    Please refer to Note 308989 for more details.



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