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In normal business, we may decide to source our selling products from group companies to cover excess demand, or to optimally use excess capacities of group plants. When we source our selling product from a plant of another company within the group, we can use inter-company billing and generate required documents for both selling company and supplying company.

We assign plant of other company code to designated sales area (distribution channel for inter-company sales) of our company code, and we can use standard SAP inter-company pricing for the same. Here we can specify any special prices applicable via condition types IV01 & IV02. There are condition types PI01/02 which serve as reference condition types for IV01/02.

IV01 & IV02 are used with subtotal 9 (gross value) and routine 22 (inter-company billing) as shown below.

Now, we will look at two company codes 1002 & 3000. Go to IMG–>Sales & Distribution –> Billing –> Intercompany Billing

First, we define order types for inter-company billing. Specify IV (standard billing document type) in required sales document type inVOV8.

or IMG–>Sales & Distribution –> Billing –> Intercompany Billing –> Define order types for inter-company billing

Here, I have assigned 2010 plant (company code 3000) to sales area 3031/71/00(company code 3000) for internal costing.

I have created a customer id (XD01) in 1002 and assigned the same to the sales organization of 1002. This customer id will be payer & represent 1002 for inter-company billing of plant.  IMG–>Sales & Distribution –> Billing –> IntercompanyBilling –> Define internal customer number by sales org

Customer places an order on company code 1002. 1002 decides to deliver from plant 2010 belonging to company code (3000). I have created normal sales order and saved. Inventory postings for the delivery are in plant 2010 & company code 3000. Further, two billing documents are generated with reference to the same delivery document. Document flow is as under:

First billing document created in company code 1002 and payer is customer.

Create second invoice with reference to the same delivery document number. This second invoice is the inter-company billing document created in company code 3000 and here payer is the first company (1002 here) for sales area 3031/71/00. Price (IV01) will be active for inter-co bill where as PR00 will be active for customer bill.

Related accounting documents & excise documents can be generated as per pricing procedure with reference to respective billing documents.

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45 Comments

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  1. Sriram D

    Hi Karuna,

     

    Its indeed good post. I would have been spellbound if this has shown how Price IV01 and PI01 are used….

     

    Anyways its a good blog to start for Intercomapny…

     

    All the Best.

     

    Cheers,

    Sriram.

    (0) 
  2. Atul Padmakar Tembe

    Hi Karuna

     

    Too good document.

    Thanks a lot.

    one suggestion: It will be great If you add a business example for special prices applicable via condition types IV01 & IV02.

     

    Regards

     

    Atul

    (0) 
  3. Typewriter TW

    Karuna,

     

    The below seems to be incorrect!

    The supplying plant 2010 should be linked with the sales organization which is assigned to company code 3000 (the supplying company code) and not with the company code 1002 (the ordering company code).

     

    By this assignment, the sales area (in the intercompany billing document) is determined.

    As intercompany bill is from the supplying / deliverying company code; thus the sales area also should be of the deliverying company code i.e. 3000 (and not 1002).

     

    Extract from the document –

    Here, I have assigned 2010 plant (company code 3000) to sales area 1002/03/00(company code 1002).

    (0) 
    1. Karuna Ravuri Post author

      Hi TW,

      2010 is plant of CC3000 and I want to sell a product which is not there is my plant 3200(CC1002). So first I assign 2010 to my sales org 1002/03/00 and inturn assign this sales org as customer of 2010. So interco bill will be from CC3000 to CC1002.

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      1. Typewriter TW

        Karuna,

         

        In this screenshot, we assign a plant to a sales area. In turn, in the intercompany billing document the system takes this sales area.

         

        The intercompany billing document is created with sales area of the delivering entity (i.e. sales area of company code 3000)

        and not the ordering sales area (not company code 1002).

         

        In  your intercompany billing document, please check the sales area. Is it correct? (i.e. of comp code 3000)

         

        The standard billing document (F2) shall be created with the sales area of comp code 1002.

         

        From your post, to make plant 2010 a delivery plant for Comp code 1002 (ordering), the sales org and distribution channel (of ordering comp code) has to be assigned to the delivering plant (2010). This is a different configuration step, than the one we are currently discussing.

         

        Kindly do some tests and update based on  your results.

        It would be a learning for all of us

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          1. Typewriter TW

            Karuna,

             

            Good to know that you have made the change!

             

            This is an important configuration step in the Intercompany process.

            By this step, system determines the sales area in the Intercompany billing document.

            This billing document is the bill created by the supplying entity (which delivers the goods to the customer, on the basis of the directives of the ordering entity) and sent to the ordering entity.

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  4. Pradeep Mani

    Good document..

    what will be the pricing procedure which will be followed while billing to customer.As there are condition type like IC01

    For intercompany billing ICAA01

     

    Thanks,

    Pradeep

    (0) 
    1. Karuna Ravuri Post author

      Thank you Pradeep,

      You can use ICAA01 or create your own pricing procedure for inter-company billing. The whole process will use single pricing procedure, that which you assigned; or separate pricing procedures as assigned to combinations of documents & sales areas in OVKK.

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      1. Pradeep Mani

        The whole process will use single pricing procedure, that which you assigned;                   

        How can we use single pricing procedure for whole process (billing to customer,billing to order company code)

        Also would be useful if some explanation is made on IV01 and PI01

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    1. Karuna Ravuri Post author

      I have posted a blog if you have noticed. I will create a wiki document on inter-company billing process in the near-future. Please be on the look out for it!

      (0) 
    1. Typewriter TW

      Patrick,

      Are these licenses and service packages worth nothing? (in your business)

      What do you mean by non-valuated stock? Do you maintain inventory?

      TW

      (0) 

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