Inter company sales

In the normal business process the end customer place the purchase order with ordering plant (parent plant). then the ordering plant if the material is not available then the ordering plant will raise the purchase order with delivering plant (another plant), and the delivering plant (another plant) raises the sales order with reference to purchase order, subsequently it will deliver the foods directly to the end customer, and issue on intercompany billing to ordering plant. Then the ordering plant raises the standard invoice in favor of end customer. With this step intercompany billing/sales process will complete. Pre-requisites: 1) Customer and material should be extended to delivering sales (another sale) area with delivering plant (another plant).

Company HHHH (Clint)

Company Code HHHH (Parent)

Company Code HHH1 (Another)

Sale Org : HHHH Distribution Chanel: HHHH Division: HHHH Plant: HHHH Stor Loc: HHHH Customer: 456 & Material No: 1717

Sale Org: HHH1 Distribution Chanel: HHH1 Division: HHH1 Plant: HHH1 Stor Loc: HHH1

Configuration steps: Create customer by using Transaction code XD01 with the account group HHHH under Sales Area HHHH HH HH (Parent). Plant must be HHHH (parent) Create material master by using Transaction code MM01 Industry sector -> Mechanical engineering Material type -> finished product Select the views and specify the organization level like below: Plant = HHHH, Storage location = HHHH, Sales organization = HHHH, and Distribution channel = HH

Extend Material and Customer to HHH1 (another) under Plant HHH1 (Another) in (T-code) MM01

Harsha Halyal

harschal007@gmail.com

Only change plant as HHH1 in Sales: Sales organization 1 view while extending, Save & Exit.

Same way Customer Extension in XD01 or VD01

Harsha Halyal

harschal007@gmail.com

IMG Configuration

Define Order Types for Intercompany Billing

Path: IMG-> Sales and Distribution-> Billing-> Intercompany billing-> Define Order Types for Intercompany Billing Here I am using standard billing type IV.

Assign Organizational Units by Plant (Important Step) Path: IMG-> Sales and Distribution-> Billing-> Intercompany billing-> Assign Organizational Units By Plant-> Assign Organizational Units to the Plants

Define Internal Customer Number by Sales Organization Path: IMG-> Sales and Distribution-> Billing-> Intercompany billing-> Define Internal Customer Number By Sales Organization

Harsha Halyal

harschal007@gmail.com

Setup sales line with delivering plant Path: IMG-> Enterprise structure-> Assignment-> Sales and Distribution-> Assign Sales organization Distribution channel Plant Choose our sales organization and distribution channel HHHH HH (Parent) Click on assign icon Select the HHH1 (Another) plant and assign it.

Raise the sales order by using Transaction code VA01 under HHHH HH HH (Parent) sales area and maintain all the relevant data in the sales order, and check which plant system determined automatically for a line item. System determines HHHH (Parent) plant. So as to process the intercompany sales, we have to change the plant as HHH1 (Another). Then we get an ERROR mandatory condition PI01 is missing. Then go to the condition (T Code) VK11 screen and maintain the price for PI01. NOTE: PI01 is the base price that charged by HHH1 (Another) company code to the HHHH (Parent) company code.

Go to MB1C to initialize the stock Specify the plant = HHH1 (Another) and storage location HHH1 (Another). Save and Exit

Go to VL01N for outbound delivery Specify shipping point = HHH1 (Another) Go pick the quantity Go to Subsequent functions Create TOR Go to change mode of VL02N and do the PGI. Save and Exit

Harsha Halyal

harschal007@gmail.com

Go to VF01 and raise the invoice This is the normal invoice that rose by HHHH (Parent) company code to the end customer.

For Intercompany Billing

Go to VF04 to raise the inter company billing Specify the billing (Document) type [IV] Intercompany billing option under Documents to be selected Click on display billing list on the application tool bar

Harsha Halyal

harschal007@gmail.com

Select delivery document and click on Individual billing Then system generates intercompany billing Save and Exit

Thank You Harsha Halyal harschal007@gmail.com