EKT AdvancedIntercompanySales 22023 CE

Advanced Intercompany Sales
SAP S/4HANA Cloud

Sales 2202.3 Update
May 2022
PUBLIC
Agenda
Key Features
Process Overview
Value Chain Monitoring
Process Activation
Appendix: Detailed Process Flow
© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 2

Objectives
After completing this learning module, you will be able to:

▪ Understand the key features of this process
▪ Know how the overall process works
▪ Understand the important role the Monitor Value Chains app plays

Business Example
Intercompany business processing comprises business transactions that

take place between two affiliated companies (company codes that may or
may not be based in different countries) belonging to the same corporate
group.
For example, a local sales office sells to a customer and the goods are
delivered from a plant, which is assigned to another company code,
directly to the customer.
A standard sales order initiates the entire process, which is integrated into
value chain monitoring. For the transfer of control of goods between the
affiliated companies and the customer, the system uses valuated stock in
transit.

Key Features
Advanced Intercompany Sales – Key Features
Key Features
▪ Seamless E2E process - highly automated and embedded into the following areas:
▪ Product Compliance
▪ Trade Compliance
▪ Profitability Reporting across legal entities
▪ Support of IFRS 15 compliant revenue recognition and COGS postings
▪ Product Costing
▪ Group Reporting / Consolidation
▪ Changes in customer-facing sales order are possible and automatically managed by the system
▪ Valuated Stock in Transit in the Selling Company
▪ Seamless change of control between affiliates and customer
▪ Purchase Order in the Selling Company
▪ Enabling landed cost in product costing
▪ E2E value chain and process monitor
▪ Issue detection and posting services

Process Overview
Advanced Intercompany Sales - Process Overview

• Generic framework to run and monitor business

processes within SAP S/4HANA
• Supports pre-configured SAP Standard E2E processes
• Increases end-to-end process visibility, efficiency, and

collaboration
• Detects issues and provides posting services
• Integrates tightly into relevant business applications

• Integrated into existing monitors
• Integration of process relevant information
© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public *vision for future releases 10
Monitor Value Chains App
Document and item overview and

option to take actions
Visualization of the process flow
Process overview and option to take

actions

SAP Fiori Launchpad: Monitor Value Chains
To access this app, please check Authorizations for the Monitor Value Chains App.

Process Activation
Activation
The Advanced Intercompany Sales process is per default disabled for the standard document types and item
categories.
To activate the Advanced Intercompany Sales process, specific configurations must be enabled through an expert
configuration request.
Currently the process can be activated for item categories TAN and CBXN.

Summary
You should now be able to

▪ Understand the key features of this process
▪ Know how the overall process works
▪ Understand the important role the value chain monitoring framework for SAP S/4HANA plays
For more information

▪ Best Practices
▪ Product Assistance
▪ Restrictions

Appendix
Advanced Intercompany Sales - Detailed Process Flow
Group
1 Order product 2 Process sales order

External Selling Delivering
Customer Company Company

Selling company records a sales order, which is the leading
document for the intercompany sales process, performing
Advanced ATP check, integration into MRP, product
compliance check, trade compliance check, integration
with transportation management.
Trigger of process: The delivering plant of the item

belongs to a different company code (1010) than
the company code of the sales area (1710)

Delivering Plant is 1010 from
the delivering company.
Transit Plant is 1710 from the

selling company.
The transit plant in the selling
company is mainly used for
the integration with financial
accounting, including
valuated stock in transit.
Condition type PCIP (condition category ‘G’ – Cost) contains the cost from
the valuation segment of the material master of the transit plant (in the
selling company).

For a sales order item that is relevant for
advanced intercompany sales, the movement
type must be 687, because the goods issue is
posted into valuated stock in transit. You can
display the movement type in the schedule line
data on the Procurement tab.
System confirms quantity based on the

availability check in the plant 1010 of the
delivering company.

1
System automatically creates

intercompany purchase order
and intercompany sales order.

Group

3 Buy from affiliate company

1
When the sales order is saved, the system

automatically creates an intercompany purchase
order in the selling company for all items relevant for
advanced intercompany sales. If the goods are to be
sourced from different plants, multiple purchase
orders are created. For this step, the quantity of the
sales order item must be at least partially confirmed
in the delivering plant (1010).
▪ Intercompany purchase order is automatically created.
▪ One purchase order per delivering plant.
▪ One purchase order item per sales order item.
▪ Business partner of delivering plant is used as vendor.
▪ Confirmed quantities with confirmed delivery dates are taken over from the
initial sales order (2).

Deliver to the external
customer’s delivery address.

Group

3 Buy from affiliate company Sell to affiliate company 4

1
Subsequently to the creation of the intercompany

purchase order, in the delivering company, the
system automatically creates an intercompany sales
order (4) per purchase order. This sales order of
sales document type CBIC (intercompany order)
uses the sales area of the delivering company.
Intercompany sales order is created
automatically. Data is copied form the
intercompany purchase order.
The customer number of the selling

company is copied to the sold-to-party of
the intercompany sales order.
The intercompany purchase order If the ship-to-party exists in the
number is copied to the customer delivering company, the customer
reference number of the ship-to-party is copied to
the intercompany sales order. Otherwise
the customer number of the selling
company is used as the ship-to party.
Intercompany sales order item has no

logistic relevance. No shipment from
intercompany sales order.

Standard condition type PPR0 is used.

Group
1 Order product 2 Process sales order 5 Trigger delivery

3 Buy from affiliate company Sell to affiliate company 4

7102
The delivering company creates an outbound

delivery with reference to the sales order and
delivers the physical goods directly to the
external customer for whom the sales
organization of the selling company placed the
initial sales order.
Transfer of Control Dates – Background Information
With the Transfer of Control feature, you can recognize revenue based on the transfer of control required by IFRS-15.
Goods are transferred to a customer when the customer gains control of them. Control in this case is the customer’s ability to direct the use of,
bear all risk, and obtain substantially all remaining benefits from an asset. It also includes the ability to prevent other entities from directing
the use of and obtaining the benefits from an asset.
Goods movements using valuated stock in transit (VSiT) for the internal and external transfer of control are automatically posted by the
Monitor Value Chains app.
There are two types of transfer of control dates:

▪ Internal Transfer of Control Date (Transfer from Delivering Company to Selling Company)
▪ External Transfer of Control Date (Transfer from Selling Company to Customer)
▪ Available in Delivery header as planned and actual dates
Use Case Details

• Planned Goods Issue Date for the planned internal transfer of control date
Default in SAP Standard
• Delivery Date for the planned external transfer of Control Date
Manually in the Change Outbound Delivery app • Fields are available on the Shipment tab in the Header details.
• Modify Delivery Header (BAdI Definition LE_SHP_MODIFY_HEAD)
Customer-Specific Calculation using Cloud BAdIs
• Modify Delivery Items (BAdI Definition LE_SHP_MODIFY_ITEM)

Transfer of control dates determine when valuated stock in transit
(VSiT) postings happen.
On this date, the goods On this date, the goods issue

issue from VSiT in from VSiT in the delivering
selling company is company and the goods receipt
posted. into VSiT in the selling company
are posted.
Group

External Selling Delivering 6 Pick, pack,
Customer Company Company ship product
9 Receive
product 3 Buy from affiliate company Sell to affiliate company 4
Transfer control of
8 goods 7 Transfer control of goods

Goods Movements Postings Overview
Goods Receipt to Stock in Transit (7b) Goods Issue from Stock in Transit (7a)
▪ Is posted automatically after Goods Issue from Stock in ▪ Is posted at the internal transfer of control date automatically
Transit (7a) or manually via the Value Chain Monitoring
▪ Takes over quantity and UoM from Outbound Delivery (5) ▪ Takes over quantity and UoM from Outbound Delivery (5)
▪ Takes over financial and pricing data from Purchase Order (3) ▪ Takes over financial and pricing data from Sales Order (4)
▪ Is registered in Value Chain Monitoring which determines ▪ Is registered in Value Chain Monitoring which determines
Goods Issue from Stock in Transit (8) as next expected step Goods Receipt to Stock in Transit (7b) as next expected step
Plant 1710 Plant 1010

7b2 7b1 7a
8 6 5
GI from SIT GI from Storage GR to Storage GI from SIT GI into SIT Outbound
Location (to GR location 1710 Delivery
1710 1010 1010
SiT) 1710
Stock Transfer from 1010 to 1710 7
Goods Issue from Stock in Transit (8) Goods Issue into Stock in Transit (6)
▪ Is posted at the external transfer of control date ▪ Is posted as Goods Issue for Outbound Delivery (5) in the business
automatically or manually via the Value Chain Monitoring application via the today’s functionality
▪ Takes over quantity and UoM from Outbound Delivery (5) ▪ Takes over quantity and UoM and financial relevant data from
▪ Takes over financial and pricing data from Sales Order (2) Outbound Delivery (5)
▪ Is registered in Value Chain Monitoring ▪ Is registered in Value Chain Monitoring which determines Goods
Issue from Stock in Transit (7a) as next expected step

As soon as the physical goods issue is
posted in the physical plant of the
delivering company, the system
automatically creates a stock transfer into
stock in transit.

Created by business application with physical
goods issue of the outbound delivery

Automatically created based on planned or
actual internal change of control date

7b1
GR to Storage
location 1710

7b2
GI from Storage
Location (to GR
SiT) 1710


Group

Customer C Bill customer Company Company ship product
9 Receive
Transfer control of
B Receive Supplier Invoice Charge affiliate company A

Intercompany billing document can
be created by the delivering
company after the goods issue to the
outbound delivery and the stock
transfer into stock in transit
(document 6). This is independent
from the external customer invoice.

Group

Customer Company Company ship product
9 Receive
Transfer control of

The intercompany supplier invoice is marked as
“Goods-Receipt-Based Invoice Verification“. So
the intercompany supplier invoice is automatically
created after the material posting Good Receipt to
Stock in Transit (7b) in the transit plant or after
creation of the intercompany customer invoice (A)
in the delivering company.

Group

Customer C Bill customer Company Company ship product
9 Receive
Transfer control of
8 goods 7 Transfer product control

Invoice to external customer can be
created directly after goods issue of the
delivery in the delivering company. The
final invoice posting is not depended on
© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public the intercompany invoice. 56
Monitor Value Chains
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Advanced Intercompany Sales

SAP S/4HANA Cloud

Value Chain Monitoring

Appendix: Detailed Process Flow

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 2

After completing this learning module, you will be able to:

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 3

Intercompany business processing comprises business transactions that

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 4

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 6

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 8

• Generic framework to run and monitor business

• Supports pre-configured SAP Standard E2E processes

• Increases end-to-end process visibility, efficiency, and

• Detects issues and provides posting services

• Integrates tightly into relevant business applications

Document and item overview and

Visualization of the process flow

Process overview and option to take

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 11

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 12

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 14

You should now be able to

For more information

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 15

1 Order product 2 Process sales order

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 17

Trigger of process: The delivering plant of the item

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 18

Transit Plant is 1710 from the

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 20

System confirms quantity based on the

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 21

System automatically creates

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 22

1 Order product 2 Process sales order

3 Buy from affiliate company

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 23

When the sales order is saved, the system

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 25

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 26

1 Order product 2 Process sales order

3 Buy from affiliate company Sell to affiliate company 4

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 27

Subsequently to the creation of the intercompany

The customer number of the selling

Intercompany sales order item has no

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 29

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 30

1 Order product 2 Process sales order 5 Trigger delivery

3 Buy from affiliate company Sell to affiliate company 4

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 31

The delivering company creates an outbound

There are two types of transfer of control dates:

Use Case Details

© 2022 SAP SE or an SAP affiliate company. All rights reserved. | Public 33

On this date, the goods On this date, the goods issue

1 Order product 2 Process sales order 5 Trigger delivery