intercompany billing

7/29/2019 Intercompany Billing

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INTERCOMPANY BILLING : CONFIGURATION

Business case: - Customer orders goods to company code/Sales organization A(Eg.4211/4211). Sales org 4211 will accept and punch the order in the system with

sold to party as end customer code in the system. Company code/sales org B(Eg.4436) will deliver the goods to end customer and raise an inter-company billing

on 4211 with reference to delivery. This can happen only after 4211 raises invoice tohis end customer to whom the material has been delivered by 4436.

SPRO Customization required:-

1.Assign plant of delivering company code (Eg.SI81) to sales org/distribution channelcombination of ordering company code (Eg.4211/RT)

2.Maintain intercom any billing type as IV for sales document type OR3.Assign Organizational Units By Plant (Eg.SI81/4211/RT/11)

4.Define Internal Customer Number By Sales Organization (Eg.4436 will createcustomer master for 4211 company code and that number will be maintained in this

relationship:-4211/231)5. Automatic posting to vendor account (Optional)

6. Maintain pricing procedure determination for 4211/RT/A/1/RVAA01-For customersales and billing

Maintain pricing procedure determination for 4436/RT/A/1/ICAA01-For inter-company billing

Master data to be maintained:-

1.Create end customer master in company code/sales org 4211/RT/11

2.Create customer master for 4211 company code/sales org in 4436/RT/113.Maintain PR00 as price for end customer-Active in RVAA01

4.Maintain PI01 as price which has to be paid to 4436-Statistical in RVAA01

5.Maintain IV01 as inter-company Price-Active in ICAA01

Process:-1. Create OR with sold to party as end customer.

2. Plant to be selected is delivering plant belonging to different company code. Withthis selection system will treat this order as inter-company sales.

3. Pricing procedure is RVAA014. With reference to this order delivery will be created from the delivering plant and

post the goods issue for this delivery.5. Ordering sales org will create billing document F2 with reference to delivery for

end customer.6. Delivering sales org will create inter-company billing IV with reference to delivery

document.

A company arranges direct delivery of the goods to the customer from the stocks ofanother company belonging to the same corporate group. To put in simple terms,

Company code A orders goods through its sales organization A from Plant Bbelonging 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 + theirrespective storage locations.

Sales Organizations and Plants are uniquely assigned to Company codes. It is not


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possible to assign either a plant or a sales organization to more than one companycode.

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 SalesOrganization A can also be assigned to Sales Organization B of Company Code B.This enables cross company sales.

PARTIES INVOLVED1) End Customer

2) Ordering Company code3) Supplying Company Code.

End customer: Customer who orders goods from the ordering company code.

Ordering Company Code: Which orders goods from Plant belonging to Supplying

Company code through its sales organization and bills the end customer.

Supplying Company Code: Supplies goods from its plant to the end customerspecified by the ordering company code and bill the ordering 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 byPlant.

Define Internal Customer Number By Sales Organization:

Menu Path: IMG/ SD / Billing/ Intercompany Billing/ Define Internal CustomerNumber 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 Supplyingcompany code.

We need to create customer master in Account Group Sold to Party and maintain

minimum required financial & Sales Area data.


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This internal customer number has to be assigned to the ordering sales organization.

Hence, the system automatically picks up this Internal customer number wheneverthere is Intercompany billing.

PRICING:

We need to maintain two pricing procedures RVAA01 & ICAA01. Pricing procedureRVAA01 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 ofSales 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 codes 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 Orderingcompany 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:

1) Sales Area (of supplying company code) + Document pricing Procedure of Billingdocument 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 forinformation purposes only and does not have bearing on the value of the document.

PI01 represented under pricing procedure RVAA01 is reference condition type forIV01 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 theSupplying Company. But its corresponding condition type PI01 in the billing

document to the end customer is shown as a statistical item meant for informationpurposes.

Condition Type VPRS in the intercompany-billing document indicates cost to thesupplying company code.


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The use of two different condition types in Intercompany billing is necessary toensure that data is transmitted correctly to the financial statement (Component CO-

PA).

intercompany billing

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