7 Replies Latest reply: Sep 27, 2007 3:10 PM by George Ress RSS

InterCompany Sales

Mohammed Mohsin Aslam
Currently Being Moderated

Dear SAP Gurus,


Can any one have the idea of InterCompany Sales? What is the main process of InterCompany Sales? Its important and urgent......




  • Re: InterCompany Sales
    Shesagiri G
    Currently Being Moderated


    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 customer’s 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.


    <b>Make a small search on sdn to find more on this issue</b>

  • Re: InterCompany Sales
    narendran vajravelu
    Currently Being Moderated

    HI Mohammed


    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.


    Link will help u




    Reward if useful to u


    Message was edited by:

            narendran vajravelu

  • Re: InterCompany Sales
    Mohammed Mohsin Aslam
    Currently Being Moderated

    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 orderdeliveryInvoice or Company A will make purchse order-Good ReceiptInvoice verification.......or there is some other way out for this thing......




  • Re: InterCompany Sales
    Currently Being Moderated



    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


    reward points if necessary oand useful


  • Re: InterCompany Sales
    venkata k
    Currently Being Moderated

    dear mohammed




    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

    o POR&#61614;&#61472;IV

    o OR&#61614;&#61472;IV

    • Assign Organizational Units by plant: assign sales area of ordering company to the delivery plant.

    o 1000 &#61614;&#61472;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

    PBIL 215

    • Pricing procedure: PI01 (Intercompany pricing)

    • Determination Rule: OVKK



    • VK11: PI01

    • Create Order: VA01: POR: 5555-56-58: customer- 215, product- Nimulid, supplying plant: 1000.

    • Delivery

    • Goods issue

    • Invoice for customer

    • Invoice Intercompany billing



    rewards if it helps


  • Re: InterCompany Sales
    George Ress
    Currently Being Moderated

    Hi Mohammend.


    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.