SD Organization Structure

Intercompany Stock Transfer

 Inter company stock transfer involves transfer of stock from one plant to another wherein the plants belong to different company codes.

•          The ordering/receiving plant places a stock transport order on the delivering plant.

•          The delivering plant then creates a delivery document on the basis of the purchase order received.

•          The delivering plant then bills the receiving plant by means of inter company billing.

•          An incoming invoice with reference to the purchase order can be posted in the following ways -

•          Manually, after the invoice has been checked.

•          Automatically, with an internal billing document via SAP EDI.

•          As the supplying and receiving plants belong to different company codes, document type – NB, is configured for the required combination of supplying and receiving plants.

•          A physical stock transfer is then carried out with delivery and billing document.

•          Depending on the supplying and issuing plants, the stock transfer can be executed according to the one-step or two-step procedure.

•          With the one-step-procedure, the goods receipt in the receiving plant is posted at the same time as the goods issue in the issuing plant.

•          With the two-step procedure is to be used, the goods receipt is posted as soon as the goods are received in the receiving plant

•          Configurations are done to determine whether an SD delivery is to be created in the case of a PO for the required combination of supplying plant and document type.

•          Delivery type is assigned to replenishment delivery for cross-company stock transfer.

•          The delivery type determines how a delivery is to be handled.

•          In case, stock transfers are created with a billing document, the delivery type 'NLCC' is used. The delivery type 'NL' is used for stock transfers without a billing document

Before processing inter company stock transfer ,Transnational data needs to maintain as  below

•          Assign Internal Customer number:

            An internal customer number for the particular sales area is assigned to the receiving plant. This customer number is used to represent the plant when an inter company invoice is created.

•          Define Shipping Data for Plants:

            The shipping data is maintained for plants for stock transfer processing. Sales area is defined for the supplying plant, with the help of which the system determines the shipping data for the material to be transferred (e.g. the shipping point).

Third-party order processing

Third-party order processing

In third-party order processing, the business passes the order from the customer, to a third-party vendor who then ships the goods directly to the customer and bills the business.

•          When a third party order is saved, purchase requisition is automatically created and forwarded to the purchase department.

•          The purchase department then creates the purchase order on the third-party vendor indicating that all goods are to be delivered directly to the customer.

•          The vendor delivers the goods to the customer and bills the business for the same.

•          The business then bills the customer for the goods delivered by the vendor after verifying the invoice receipt.

The processing of third-party orders is controlled via material types which define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible.

•          If a material is always delivered from one or more third-party vendors, material is maintained as third-party item. BANS is entered in the Item category group field in the Sales 2 screen of the material master record. System determines the item category as TAS while processing the material in the order.

•          In the case of a material that business delivers itself but occasionally orders from a third-party vendor, the item category of the material is manually changed from TAN to TAS during sales order processing.

Maintain Schedule line cateogories

•          Third-party items are processed by creating a normal sales order.

•          The system uses TAS as the standard third party item category.

A sales order may consist partly or wholly of third-party items

1.  Purchase requisition is automatically created in purchasing once the sales order is saved.
2. Each third-party item in a sales order automatically generates a corresponding purchase requisition item.
3. If a third-party order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
4. Purchase requisition is automatically created in purchasing once the sales order is saved.
5. Each third-party item in a sales order automatically generates a corresponding purchase requisition item.
6. If a third-party order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
7. Once the goods have been delivered to the customer by the vendor, the business then bills the customer.
8. No delivery exists in the system for third-party order items.
9. The system is set for order related billing during selection of the documents to be billed.