2 Controlling areas - Intercompany postings

[Former Member]

Hello Experts,

Our client is looking at the possibility of having more than One Controlling area and Chart of Accounts. Say for instance, the Production Plants are in different Controlling area and using different COA, whereas the Sales companies located in different countries having a Separate Controlling area and Chart of accounts.

I do certainly understand that the system will be very very complex. However, we would like to know if there would be any issues while doing Intercompany transactions like delivering from Production plants to Sales companies / Delivery directly to the customers located in sales company's country.

I came across some write ups saying Cross controlling area costing is not possible.. But would that restrict the Intercompany billing as well?

I do not understand this clearly. Can anyone please explain the Pros and Cons of following the above Org structure.

Thanks

Prasad

[iklovski]

Hi,

What funcitonal requirement lies behind the client's request to have separate controlling areas? The entire configuration of the system should be viewed in this aspect.

Regards,

Eli

[ajaycwa1981]

Hi

Its good that you already understand its a complicated design

You can very well have this design.. There are no issues as such in having sales company in a separate contr area and producing company in another

Ideally, if they both are in same Contr area and share Same Chart of account (CoA) , your life becomes easy as you will do the OBYC (FI-MM Integration) settings only once.. But, with separate CoA, you will have to do it for both

There wont be issues as such in inter comp scenarios.. By inter company costing, it means that if you transfer stock from Plant A to B, you can not transfer the std cost of plant A to B if they both are in different contr areas...

Similarly, you can not do cross contr area allocations.. But this wont impact your inter co bilings

Ajay M

[Former Member]

Hi Ajay,

Can you share any document that explains the intercompany billing setup in this scenario?

Thanks for your help.

Regards / Prasad

[Former Member]

Hi

As Ajay says you will not have problems about intercompany sales.

However, you will have a more complicated model in terms of controlling management. You need to analyse in detail your controlling model and be aware all controlling allocations you need to do. You need to taking into account CO projects that involve more than one country, information system, planning process, etc.

Best regards

Jose

[ajaycwa1981]

Hi

I dont have any doc as such.. But, it will be the usual inter co billing scenario which I am sure, your SD guy would be aware of.. there is no spl process for your case..

In Inter co scenario, you have 2 choices

1. To follow the sale-purchase route

2. To use an inter company STO

in (1), you create SO in seling company and PO in purchasing company... Using IDOCS it can be automated... I am not detailing it here

(1) is used when the Material No is not same in both the companies.... Another drawback of this is that you cannot see Stock in Transit when your goods have been despatched from A but have not reached B

(2) is used when Mat No is same in both the companies... Adv is that you get to see stock in transit till the time B posts Goods receipt in his system

The no of transactions are also less in this case

I personally prefer (2)... Your SD/MM guys wud be aware of both.. I guess you should not worry on that front

Regards

Ajay M