In SAP sales & distribution module, an intercompany sales occurs when the selling organization belongs to a different company code than the delivering plant. The transaction path for accessing intercompany sales billing is:
IMG >> Sales and distribution >> Billing >> Intercompany billing
Let us take an example to understand intercompany sales better. Suppose there are two company codes namely 1000 and 2000. A customer may place an order for goods in sales organization belonging to company code 3000. However, the goods may be manufactured by a delivering plant belonging the company code 1000. A sales order is created indicating delivering plant of company code 1000. The sales organization then invoices the customer for the materials purchased. SAP R/3 automatically creates an intercompany billing document at the same time as the customers billing document is created. This intercompany invoice is sent from the delivering plant to the selling sales organization.
As a rule of thumb, when dealing with different company codes, one may find a need to transfer stock between two different company codes. However, if the stock be transferred within the same company code, there is no need for an intercompany transaction. But in case the stock is transferred between different company codes, a transfer of value occurs and is an intercompany sale.
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Intercompany business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code.
The following intercompany business transactions are possible:
Intercompany sales processing:
A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code.
The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.
Intercompany stock transfer:
A purchasing organization which is assigned to the ordering company code creates a purchase order ordering goods from a plant assigned to another company code.
The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.
Because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an intercompany billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.
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Thanks for the reply.....Okey the scenario is simple ....it there are 2 companies one is trading (A) and other is manufacturing(B)....Now A buy the things from company B and put in the store and when the customer they sell the thing to the customer from company A.......Company B is only selling the goods to Company A.......So how we are goin to cater this thing in SAP......I mean through simple process that Company B Sales out there thing by Sales order
deliveryInvoice or Company A will make purchse order -Good ReceiptInvoice verification.......or there is some other way out for this thing......
Intercompany sales means that the transaction is done between the two company codes that are under single company
for example there is one company named TATA
under TATA there are two company codes called TISCO and TATA Motors
both are dealing with the same product (for Example)
if the custome wants a material for example ABC and came for inquiri to the company code TISCO and that company code is not having the material at that time then the TISCO raises an order with the TATA Motots for the ame material and the TATA Motors will delivers the material to the customer
this is the process
configuration settings that u need :
1.Create the customer with the tcode xd01
2.create the material ABC in the plant of TISCO
3. Extend the mataerial ABC to the plant of the TATA Motors
4.Create an intercompany billing cutomer and
5. ASSign this intecompany billing customer to the sales org of TISCO so that he can bill the TISCO plant
6.Create the sales line with the sales org and distribution fo TISCO and Plant of the TATAMotots
7.Create the sals org with the sales org , distributio channel, and division fo the TISCO and in the item overview screen i the shiping view enter the plant of the TATA Motors so that deliveary will be from the TATA Motors
8.give the condtion type pio1 for which th inercompanycustomer will bill the receiving plant
9.while doing the delivery u havae to do create transfer order so that the goods are received from the delivery plant
10.u wull get the billing document intercompany billing document from the TATA Motors and the standard billing document to the customer
hope u understand best
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INTERCOMPANY SALES & BUSINESS PROCESSING:
An Intercompany sale transaction takes place when a sale occurs & the selling sales organisation belongs to a different company code than that of the delivery plant.
Intercompany business processing describes business transactions, which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant, which is assigned to another company code.
Ordering company Supplying company
Company code: 5555 1000
Sale Organization: 5555 PBIL
Distribution channel: 56 PW
Division: 58 GC
Plant: 5555 1000
Customer: 215 Product: Nimsulied
Ent Stru- Assignment- SD- Assignment- SD- Assign Sales Organization: Distribution Channel- Plant
Sales Organization Distribution Channel Plant
PBIL PW 1000/ 5555
5555 56 5555/ 1000
SPRO- IMG- SD- Billing- Intercompany Billing:
o Define Order types for Intercompany billing
o Assign organizational units by plant
o Define internal customer no by sales organization
Assign Sales Doc relevant for Intercompany billing
Assign Organizational Units by plant: assign sales area of ordering company to the delivery plant.
o 1000 5555 56- 58
Plant Descp Sales Organisation Descp Distribution Descp Division Descp
1000 5555 56 55
Define internal customer no by sales orgn: create the customer of the ordering company in the company code of the delivering plant, but with the sales area of the ordering the company
Sales Orgn Descp Customer Inter Comp Descp
Pricing procedure: PI01 (Intercompany pricing)
Determination Rule: OVKK
PBIL PW GC A 1 RVAA01
PBIL PW GC I 1 ICAA01
Create Order: VA01: POR: 5555-56-58: customer- 215, product- Nimulid, supplying plant: 1000.
Invoice for customer
Invoice Intercompany billing
rewards if it helps
here is the scenarion of Intercompany sales.
Customer XXX orders materials or services from company A.
Company B (Supplier Company Code) sends the materials or services to the customer XXX of Company A (Ordering Company Code ).
Company A (Ordering Company Code ) is a customer for Company B so there have to exist as customer Master Record to Company B (Supplier Company Code) .
Company B sents an internal invoice to Company A , and Company A create a billing document for the Customer XXX.
Billing Type IV is the Default type for InterCompany-Billing.
The Standard Pricing Condition is PI01.
The Company Code at intercompany invoice defined based on the Company Code of Delivering or Supplying Plant.
You also have to do the settings in customizing which gurus mentioned to their messages.
Best Regards George.