Sometimes goods or services are purchased from a related concern within the same organization.

Thus, this translates to one division of a

parent company purchasing from another one to fulfil its sales order. Hence the sales order of former becomes purchase order for the

second.

Example: A multi-national company ABC Limited manufactures and distributes laptops. There is a single plant in Japan which is assigned to

company code of Japan. The sales orders are received in various countries and this should automatically raise a PO to Japan. So, if any

order is received from end customer in USA, an automatic PO must be raised from USA company code to Japan.

This article describes the steps in which you can set up an automatic Intercompany Process in SAP.

1. Create headquarters as a vendor

Using XK01 create the headquarters as a vendor in the purchase organization of the buying company code. In above example, this is the

USA entity.
2. Maintain the purchase order information at Sales
Organization Level
For the entity which is placing order to the headquarters, maintain the purchase information as shown below:
3. Click the automatic PO for item category
Navigate to the menu node of the SPRO and mark the Automatic PO checkbox for the respective item category.
4. Maintain purchase info records
Maintain the purchase info records as shown below:
 Effect

Whenever a new sales order is raised in the buying organization (in above example USA), it automatically creates a purchase order to the

headquarter organization (Japan).