on 11-21-2014 3:08 PM
What are the key points to be taken into consideration to select either Intercompany via sales or Intercompany via sto ?
Hi Lakshmipathi,
Thanks for your reply.
Amit, has provided the suitable reply for query raised.
Can you please suggest, how can I mark his reply as helpful and correct, as the option of helpful and correct reply are now appearing.
Else if you can suggest , whim to contact , to close this thread appropriately.
Regards,
Pawan
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Hello Pawan,
Actually in design phase, there are 3 main categories of inter-company process flows to consider :
- Inter-company Sales flow
- Inter-company Procurement flow
- Inter-company Financial flow
The pure financial flow is out-of-scope for processes involving MM/SD obviously.
For each flow, it is desirable to map the various business situations (e.g. company A sells to company B a product X or service Y) and to detail the various steps along with the key requirements (e.g. postings should made to account Z and cost object U).
The mapping of the business steps will eventually help to provide rationale to decide which SAP setup is the best in which situation. There are often several SAP solutions to cover inter-company processes.
Usually each flow is detailed in many "sub-processes". Also, in a design phase the number of steps "on paper" is not that critical because it is always possible to automate the execution in SAP via interfaces (idoc/webservices...) and other enhancements (provided that we are within scope and budget).
Regards,
Alex
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As far as I understand Intercompany STO are used when both the plants are in different company codes on the same SAP system.
Advantages of using Inter-company STO :
1> You can see the requirements flowing in to the other plant's MRP.
2> There will be a single purchasing and sales document called as STO in SAP
3> There will be a single invoice
You use the intercompany sales when the plants in different company codes are on different systems - example one plant is in SAP 4.6 and other on SAP 6.0 or one on JDE and other on SAP 6.0.
You use intercompany sales as the plant is not on SAP 6.0 to be configured as an intercompany vendor.
You would need to create two documents - One Intercompany Sales Order and One Purchase Order
There will be two invoices.
Regards,
Amit
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Hi Amit,
Thanks for your reply.
What I have understood from your reply, that for INTRACOMPANY use STO and for INTERCOMPANY use SALES.
We need to design a process between two separate company codes.
Well , I know we can do it in both ways.
But I am wondering, what are the advantages and disadvantages ,so that we opt for either Intercompany via sales or sto.
Hi Pawan,
That is not the case.
So, we have 3 scenarios :
1> Plants within same company code.
Example : Say For the client there are 2 plants in Czech Republic which are part of same legal entity ABC Czech Pvt. Ltd.
For these two plants the scenario is called as Intra-company and to transfer the stock you use Intra-company Stock Transfer in SAP (Standard Doc Type "UB").
Since it is in same company code there is no billing and invoicing
2> Plants within different company codes :
Example
Plant 1 in Czech Republic Company ABC Czech Pvt Ltd Going Live on SAP 6.0
Plant 2 in Germany Company ABC - Brand 1 Germany Pvt Ltd Going Live on SAP 6.0
Plant 3 in Germany Company ABC - Brand 2 Germany Pvt Ltd On JD Edwards
a> Transfer Between Plant 1 and Plant 2
For this transfer we should use Intercompany STO. Advantages :
1> MRP of both plants will reflect the purchase request
2> Single Document for both purchase and sales - Intercompany STO
3> Single billing and invoice step - no invoice matching required, less manual steps
b> Transfer between Plant 1 and Plant 3 or Plant 2 and Plant 3
For this you cannot use and intercompany STO as plant 3 is not available in SAP and you cannot configure it as an intercompany vendor. So, you use intercompany sales. Intercompany sales will have more steps compared to intercompany STO but since plants are on different systems so you cannot use the earlier option.
Let me know if you need any additional details.
Mark as helpful and correct if I have answered your question.
Regards,
Amit
Hi Amit,
Thanks for the details provided.
You have detailed plants abroad, intra and intercompany.
I am well aware of all these.
All I am looking for is , which process to opt for intercompany sales or intercompany sto.
( What are the key points ( adv or dis adv) that consultant will opt one process over another)
Both the company codes are in SAP only.
I am not asking for "How to steps" or "what it is"
Regards,
Pawan
If both company are in SAP then you should be choosing Inter-company STO for following reasons :
1> MRP of both plants will reflect the purchase request
2> Single Document for both purchase and sales - Intercompany STO
3> Single billing and invoice step - no invoice matching required, less manual steps
These features are not available in Intercompany sales orders.
When you create intercompany sales order then :
1> You would have to create a sales order and a purchase order (normal Purchase Order)
2> there will be two billing documents
3> There will be two invoicing steps.
You will prefer the intercompany Sales Order only in case if you do not want the requirements to flow into MRP directly which is usually not the case if you want to extract full benefit of SCM integration in SAP.
Let me know if I was able to help.
Mark as helpful and correct if I have answered your question.
Regards,
Amit
But I am wondering, what are the advantages and disadvantages ,so that we opt for either Intercompany via sales or sto.
The best approach would be
Based on the above, it is upto the Client to take a final call.
G. Lakshmipathi
What is your exact requirement please be clear?
If you are asking the main difference between
Inter-company STO and Inter-company sales then.
In Inter-company STO : two plants belong to different company codes and one invoice(IV).
Where as Inter-company sales : a sales organization and a plant belong to different company codes and two invoices (F2 and IV).
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