Working with Intercompany Sales Processing 

Intercompany sales processing consists of the following three stages:

 Processing sales orders

 Processing deliveries
 Billing

The sales organization and the plant are assigned to different company codes and have the
following responsibilities:

Sales organization: Processes the sales order

Bills the customer

Plant: Delivers goods to the customer
  Bills the ordering company code (sales organization) - this
is intercompany billing.

Intercompany billing uses SAP EDI to carry out posting to

vendor account for the ordering company code.

Company Structure

Company code Sales organization Plant

0001 0001 0001
0002   0002

Condition Record

A condition record specifies that plant 0002 bills sales organization 0001 for goods at
80% of the net invoice value.

Sales orders

Sales organization 0001 receives the following sales order from customer XYZ:

Item 10 Product A 20 pcs (Plant 0001) USD 200

Item 20 Product B 50 pcs (Plant 0002) USD 500

The second item requires intercompany sales processing, since product B must be
delivered from a different company (company code 0002).

Page 1|5

Copyright by SAP AG
 Intercompany Sales Processing

The intercompany sales functions are carried out as follows:

o Pricing for customer invoice: Sales organization 0001

o delivery: Plant 0002

o billing: Sales organization 0001 bills the customer for USD 500

Sales organization 0002 bills sales

organization 0001 for USD 400

(with an intercompany billing document)

o Financial accounting: In company code 0001, SAP EDI is used to carry out
posting to vendor account

Working with Intercompany Sales Orders 

When you create a sales order, you specify the sales organization of the ordering company code. The
system can propose a delivering plant from the following master records:

 Customer-material info
 Customer
 Material

The order of priority is as in the list above.

To maintain the delivering plant information in the sales order, select one of the following:

 for the whole sales order: Overview Procurement

 for each item: Item Business data

You can overwrite the proposed delivering plant or use a match code to list the alternative plants from
which the material may be delivered.

The system then checks to see if the combination of sales organization and delivering plant is
allowed. If it is, you can proceed with the intercompany transaction.

The system automatically carries out pricing using pricing master data from the sales organization.

The intercompany charge appears in the pricing screen of the sales order as a statistical value (the
charge has no effect on the final value of the sales order for the customer). Since the intercompany
charge is of internal interest only, this pricing element is not printed out on documents for the
customer.

Page 2|5

Copyright by SAP AG
Working with Intercompany Deliveries 
Depending on the intercompany business transaction, the goods are delivered as follows:

when where to
for intercompany to the customer

sales processing
for intercompany to the plant assigned to the

stock transfer ordering company code

You process the delivery as usual, selecting a shipping point that is assigned to the delivering plant.

Goods issue is carried out in the delivering plant.

You can create the delivery just like any other delivery on the Shipping screen:

 for a single delivery with the menu path Delivery Create.

You can then enter the shipping point assigned to the delivery plant in the field Shipping
Point.

 for several deliveries with the menu path Delivery Process dlv. due list.

You can

o select Settings Organizational data to enter relevant sales area data as some of

the selection criteria for your delivery due list.
o select Settings Further sel. screen  to enter further selections (such as the ship-to
party or the material number).

If you are delivering to another plant on the basis of a purchase order (i.e. stock
transfer):

 you cannot process a single delivery; i.e. you must process the delivery due list and mark the
field Stock transport

 you can enter the purchase order number by selecting  Settings Further sel. screen and
use the field Purchase doc. from.

Page 3|5

Copyright by SAP AG
Working with Intercompany Billing 
After goods issue has taken place, you can process the delivery for billing. You can create the billing
documents just like any other billing document on the Billing screen:

 for a single billing document with the menu path Billing document Create.

 for several billing documents with the menu path Billing document Billing due list.

The delivery may have to be processed for billing twice.

 The delivering plant processes the delivery to create an intercompany billing document (billing
document type IV) for the selling company. This company code posts invoice entry for this
billing document.

Offsetting Entries for Intercompany Business 

The delivering company and the ordering company belong to the same organization. Therefore, the
intercompany billing document for the delivering company is posted as invoice receipt for the ordering
company.

The ordering company can post an invoice receipt:

 manually after posting goods issue: on the Invoice Verification screen with the menu
path Document entry Enter invoice
 automatically with the intercompany billing document: via IDOC/EDI.

For intercompany stock transfer the intercompany billing document can be posted as
an incoming invoice against the purchase order.

The billing document is automatically billed to the internal payer that is assigned to the sales
organization. The intercompany charges that appear in the intercompany billing document
represent the actual amount that the delivering plant is charging the sales organization.

 If the selling company is selling the goods to a customer, it processes the delivery to create
an invoice for this customer. The system can take the prices from the order or determine new
prices. It takes the quantity to be invoiced from the delivery.

Page 4|5

Copyright by SAP AG
The billing due list for the intercompany invoice is generated after the customer
invoice has been created.

Page 5|5

Copyright by SAP AG