SD Inter Company Sales process
Inter company sales is the process in which a certain legal entity sells products from within a delivering plant that does belong to another legal entity.
A company arranges for direct delivery of goods to its customers from the stocks maintained by the other company, but belonging to the same corporate organization. Thus leading to Inter Company Sales.
This prevents the company from over stocking the goods beforehand in the their own warehouse and can choose from whom to deliver the customer.
Posting of the Inter Company Invoice
The delivering company and the ordering company belong to the same corporation. Therefore, the inter company billing document for the delivering company is posted as invoice receipt for the ordering company. The ordering company can post an invoice receipt either:
The delivering company must be created as a vendor to enable posting to the financial document of the ordering company
Configurations
Inter company billing document type ‘IV’ is assigned to all those order document types for which inter company sales processing can be carried out.
Menu Path: IMG-> Sales & Distribution ->Billing->Inter Company Billing-> Assign Organizational Units by Plant
Assign Organizational Units by Delivering Plant:
Sales organization, Distribution Channel and Division are allocated to the plants for which intercompany sales processing is possible. The delivering plant uses these specifications to process intercompany billing.
Menu Path: IMG-> Enterprise Structure->Assignment->Sales and Distribution-> Assign Plant to Sales Organization and Distribution Channel.
Assign Plant to Sales Organization and Distribution Channel:
Sales Organization and Distribution Channel have to be assigned to the Delivering Plant to enable sales processing.
Master Data Maintain– Customer
Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Master Data -> Customer -> Create.
Code: XD01
A Customer Master record is to be created in the Sales Organization representing the Delivering Plant. The Internal Customer created represents that Sales Organization belonging to the ordering Company Code
Menu Path: IMG-> Sales & Distribution ->Billing->Inter Company Billing-> Define Internal Customer Number By Sales Organization
Define Internal Customer Number By Sales Organization:
The Internal Customer number has to be assigned to the Ordering Sales Organization.
Master Data – Material .Extend the material in the Delivering Plant:
Enter the Delivering Plant in the material records, which will be relevant for sales processes carried out by the Ordering Sales Organization.
Menu Path: IMG - Sales and Distribution -Basic functions - Pricing -Pricing Control - Define Condition type.
T-code: V/06
A company arranges for direct delivery of goods to its customers from the stocks maintained by the other company, but belonging to the same corporate organization. Thus leading to Inter Company Sales.
This prevents the company from over stocking the goods beforehand in the their own warehouse and can choose from whom to deliver the customer.
Occasionally we come across companies that operate several companies and carry on trading of goods and services among themselves. A Customer -Vendor relationship is established between them.
The organization may be required to handle several production and sales companies. They have to ensure that the flow of documents between two companies adheres to the same overall organization.
Prices need to be set up either as the cost price + extra charges or by trade agreements. Any change in values or information need to be synchronized immediately in the other company. A process shall enable to ensure the integrity of orders and documents in during sales
Inter Company Sales process prevents the company from over stocking the goods beforehand in the their own warehouse and can choose from whom to deliver the customer.
Benefits of Inter comapny sales process
Enables all company codes to share information on inventories, tracking inter-company shipments, and viewing automatic FI postings and settlements
- Automatic Inter Company account reconciliation and settlement
- In-transit inventory visibility and reporting
- Workload reduction in processing invoices
- Eliminate invoicing errors
- Eliminates reconciliations
Lets focus on configuration part of it .
Pre-requistites configuration Org’ Units
- The ordering sales organization and delivering plant must belong to different company codes.
- Required combination of Sales Organization and Delivering Plants have to be maintained.
- Sales Area-Sales Organization, Distribution Channel and Division, must be assigned to all the plants in which Inter company sales processing is being carried out
- Inter company Billing Document type must be assigned for required sales document types.
- An internal customer number must be created, to represent the ordering Sales Organization, in the Sales organization representing the delivering plant.
- Material must exist in all the plants participating in Inter Company Sales process.
- Condition types representing the Inter company sales processing is to be maintained in the pricing procedure.
- Condition records have to be maintained for the required combination of sales organization and plants
- manually after posting goods issue and can print out an invoice document with the help of output type RD00, which is then sent to the end customer or
- automatically with the inter company billing document: via IDOC/EDI. The system uses the output type RD04 contained in the output determination procedure V40000, which is assigned to internal billing type.
The delivering company must be created as a vendor to enable posting to the financial document of the ordering company
Menu Path: IMG-> Sales & Distribution ->Billing->Inter Company Billing-> Define Order Types For Inter company Billing.Define Order Types For Inter company Billing:
Inter company billing document type ‘IV’ is assigned to all those order document types for which inter company sales processing can be carried out.
Assign Organizational Units by Delivering Plant:
Sales organization, Distribution Channel and Division are allocated to the plants for which intercompany sales processing is possible. The delivering plant uses these specifications to process intercompany billing.
Menu Path: IMG-> Enterprise Structure->Assignment->Sales and Distribution-> Assign Plant to Sales Organization and Distribution Channel.
Assign Plant to Sales Organization and Distribution Channel:
Sales Organization and Distribution Channel have to be assigned to the Delivering Plant to enable sales processing.
Menu Path: Easy Access -> Logistics -> Sales & Distribution -> Master Data -> Customer -> Create.
Code: XD01
A Customer Master record is to be created in the Sales Organization representing the Delivering Plant. The Internal Customer created represents that Sales Organization belonging to the ordering Company Code
Menu Path: IMG-> Sales & Distribution ->Billing->Inter Company Billing-> Define Internal Customer Number By Sales Organization
Define Internal Customer Number By Sales Organization:
The Internal Customer number has to be assigned to the Ordering Sales Organization.
Enter the Delivering Plant in the material records, which will be relevant for sales processes carried out by the Ordering Sales Organization.
Menu Path: IMG - Sales and Distribution -Basic functions - Pricing -Pricing Control - Define Condition type.
T-code: V/06
Condition Type -Creating Inter Company Condition Types:
The delivering plant uses one of the following condition types to bill the sales organization.
PI01 Inter company: fixed amount per material unit
PI02 Inter company: percentage of the net invoice amount.
These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice.
The delivering plant uses one of the following condition types to bill the sales organization.
PI01 Inter company: fixed amount per material unit
PI02 Inter company: percentage of the net invoice amount.
These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice.
