Intercompany sales process

Prepared by: Rawan Zeyad

Intake:43

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Table of Contents
Business Case: .............................................................................................................................................. 3
Configuration Steps ...................................................................................................................................... 6
Business process cycle ................................................................................................................................ 12

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 Intercompany sales process

Company code Company code

1000 2000

Sales area 2000,20,00

Sales area 1000,10,00

Plant
Plant
order 2000
1000
Delivery

Customer

Kamal

Business Case:
Customer Kamal (the end customer) places an order from company code 1000 for material toys.
If 1000 company satisfy this requirement, it will send the material directly from their plant 
normal cycle.

Consider the situation: this customer has placed an order with C.C 1000 but it doesn’t have
enough stock, or it has stock that is reserved for other customers, but you know that there is stock
of the material available in plant 2000, so the material will be delivered from 2000
plantintercompany sales.

The sales organization 1000 took the material from plant 2000 and satisfied the customer.

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Notes:

 The sales organization is assigned only to one company code.

 To configure intercompany sales, it is possible to assign a sales organization to a plant
from another company code.

We assign the distribution chain (sales organization - distribution channel - plant).

 The material that is being sold to this customer should be available at either of these
plants.
 1000 company code would have a specific price for the end customer.
o PR00 is the end customer price.
 2000 company code would charge a specific price for company code 1000.
o PI01 or PI02 is the intercompany price.
 Both prices are differentiated using the condition types in the pricing procedure.

The Intercompany sales cycle

Sales orderdeliveryPGIEnd customer invoice intercompany invoice.

The end customer invoice  the customer will be the end customer.

Intercompany invoice the customer will be the internal customer.

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Entries

Good issue

Dr COGS (C.C 2000)

Cr inventory (C.C 2000)

End customer invoice

Dr customer

Cr Revenue (C.C 1000)

Intercompany invoice

Dr customer (C.C 1000)

Cr revenue (C.C 2000)

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Configuration Steps
1. Define order types for intercompany billing.

We need to maintain intercompany billing for sales document types.

Path:

Spro sales and distribution billingintercompany billingdefine order types for

intercompany billing.

ORIV

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From vov8, we will see the intercompany billing will be updated.

2. Assign sales organization -distribution channel -plant.

Sproenterprise structure assignment sales and distribution assign sales organization-

distribution channel -plant

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 3. Assign organizational unit by plant (default)

Path:

Spro sales and distribution billingintercompany billing Assign organizational unit by

plant.

Define internal customer number by sales organization.

Path:

Spro sales and distribution billingintercompany billing Define internal customer number
by sales organization.

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Note: The customer should be extended to the delivery sales area.

Also, we can enter the internal customer number in the sales organization.

Path:

SproEnterprise structure Definition Sales and distribution Define, copy, delete, check
sales organization.

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The material stock for plants 1000 and 2000.

T-code: MMBE

The pricing procedure

 The condition type stat means that at the customer billing level, it should be statistical
and not affect net value.
 B  means c.c. 2 is collecting costs from c.c. 1

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Display the condition type.

T-code: V/06

Pi01 (Intercompany price)

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Business process cycle
To maintain a pricing condition record

T-code: VK11(PR00-PI01)

PR00

PI01 (intercompany price condition)

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 1. Sales order

T-code: VA01

sales area 1000-10-00 change plant to 2000

Pi01 intercompany condition type in redetermined

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 2. Delivery

T-code: VL01n

3. Post goods issue

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 4. Billing
 You cannot create intercompany billing without creating the customer invoice because of
the copy control.
 The two invoices are created with reference to the delivery number.

First billing document

(End customer) with reference to delivery

T-code:VF01

Accounting document

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Document flow

Second billing document

(intercompany billing) with reference to delivery

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Accounting document

Final document flow

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