What are the steps required to configure an Intercompany
sales process upto billing?
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Answer Posted / sandhya
INTER COMPANY BILLING
Definition:
A company arranges direct delivery of the goods to the
customer from the stocks of another company belonging to
the same corporate group.
To put in simple terms,
Company code A orders goods through its sales organization
A from Plant B belonging to Company code B.
It is imperative that both Plants A & B should have the
material. In other words, the material is created for both
the Plants A & B + their respective storage locations.
Sales Organizations and Plants are uniquely assigned to
Company codes. It is not possible to assign either a plant
or a sales organization to more than one company code.
Sales organizations and plants assigned to each other need
not belong to the same company code.
In other terms,
a plant belonging to Company code A & assigned to Sales
Organization A can also be assigned to Sales Organization B
of Company Code B.
This enables cross company sales.
PARTIES INVOLVED
1) End Customer 2) Ordering Company code 3) Supplying
Company Code.
CONFIGURATION SETTINGS
Assign Delivery Plant of the supplying company code to
Sales Org + Distribution channel of the Ordering company
code in the Enterprise Structure.
DEFINE ORDER TYPES FOR INTERCOMPNY BILLING:
Menu path: IMG/ SD/Billing/Intercompany Billing/Define
Order Types for Intercompany billing
Assign Organizational units by Plant:
Menu Path: IMG/ SD/Billing/Intercompany Billing/Assign
Organizational units by Plant.
Define Internal Customer Number By Sales Organization:
Menu Path: IMG/ SD / Billing/ Intercompany Billing/ Define
Internal Customer Number By Sales Organization:
Creating / Showing Ordering Sales Organization as Internal
Customer for Supplying Company code:
Transaction Code: XD01
The ordering sales organization is represented as Internal
customer of Supplying company code.
We need to create customer master in Account Group - Sold
to Party and maintain minimum required financial & Sales
Area data.
This internal customer number has to be assigned to the
ordering sales organization. Hence, the system
automatically picks up this Internal customer number
whenever there is Intercompany billing.
PRICING:
We need to maintain two pricing procedures RVAA01 & ICAA01.
Pricing procedure RVAA01 represents condition type PR00 &
any other discounts or surcharges that are meant for end
customer.
We assign Pricing procedure RVAA01 to combination of Sales
area (Of Ordering company code) + Customer Pricing
Procedure + Document Pricing Procedure of Sales document
type.
This pricing Procedure (RVAA01) is determined both at Sales
Order level & Billing processing for the end customer. We
maintain PR00 condition type to represent the ordering
company code's price to the end customer.
Condition records for PR00 are maintained using
organizational elements of Ordering company code, end
customer & the Material.
Eg: Sales Org. of Ordering company code + End customer +
Material.
We also need to maintain PI01 condition type to represent
costs to Ordering company code (in other words revenue to
supplying company code). It is statistical condition type &
meant for information purpose only.
Condition records for PI01 are created with the following
key combination:
Ordering sales Org + Supplying Plant + Material
Pricing Procedure ICAA01is determined at Intercompany
billing processing level.
Pricing Procedure ICAA01 - Pricing Procedure for Inter
company billing is assigned to the combination of:Sales
Area (of supplying company code) + Document pricing
Procedure of Billing document type IV + Customer Pricing
Procedure of the Internal customer.
Pricing Procedure ICAA01 has condition type IV01 that
represents revenues for Supplying company code in the
intercompany billing.
PR00 condition type also appears in Intercompany billing
document. It is for information purposes only and does not
have bearing on the value of the document.
PI01 represented under pricing procedure RVAA01 is
reference condition type for IV01 and the same is defined
in the condition type IV01. Due to this these two condition
types represent same value.
The condition type IV01 in intercompany billing document
represents revenue to the Supplying Company. But its
corresponding condition type PI01 in the billing document
to the end customer is shown as a statistical item meant
for information purposes.
Condition Type VPRS in the intercompany-billing document
indicates cost to the supplying company code.
The use of two different condition types in Intercompany
billing is necessary to ensure that data is transmitted
correctly to the financial statement (Component CO-PA).
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