This document will explain necessary configurations required in SAP ECC for enabling Intercompany billing for material movements across the organization either for sales or for stock transfer.


We have following scenarios in an organization where inter-company billing is involved:


Direct Shipment to customer using Intercompany plant: Orders requiring direct shipment of product employs standard intercompany functionality, where the sales order header will reflect the Sales Area owning the sale to the end customer, and the specific line item in question will possess a source plant.  Items with intercompany plants should default a pick-from-stock item category that ultimately generates a delivery from which both an end customer and intercompany invoice will be created. 


Intercompany Stock Transport Orders: To replenish stock at VMI hubs or distribution plant, intercompany stock transport orders with delivery-related billing is employed. 


Intercompany Pricing and Billing: For all intercompany transactions, direct-ship and stock transport alike, billing will be initiated upon PGI of the delivery.  ‘


Pre-requisite Master Data:

  1. Intercompany Customers master records must be extended to the selling sales areas.
  2. Intercompany Vendor master records must exist in the purchasing orgs.
  3. EDI customer partners must be created to represent each of the sales organizations (WE20).
  4. EDI vendor partners must be created to represent each one of the company codes.


Intercompany Direct Shipments Configuration:

  • OVVA—Assign customer number (Buying company) to the sales organization that it represents


Sales and Distribution Billing Intercompany Billing Define Internal Customer Number by Sales Organization


  • OVV9—Assign Delivering plant to sales area that owns the intercompany sale:

Sales and Distribution Billing Intercompany Billing Assign Organizational Units by Plant


  • OVX6—Assign Sourcing plants to buying sales organizations / distribution channels.

Enterprise Structure Assignment Sales and Distribution Assign Sales Organization – Distribution Channel – Plant


  • OVV8—Define the order types that are relevant for intercompany billing.

Sales and Distribution Billing Intercompany Billing Define Order Types for Intercompany Billing


Intercompany Stock Transport Orders:

  • OMGN—Set up stock transport orders.

Materials Management Purchasing Purchase Order Set up Stock Transport Orders

Assign Delivery Type/Checking:

Type = NB

Supplying Plant = XXX

Delivery Type = NLCC

Checking Rule = A

Purchasing Document Type:

Supplying Plant = XXX

Plant = XXX

Type = NB

Intercompany Pricing Configuration:

  • VOK0—Create new pricing conditions

Sales and Distribution Basic Functions Pricing Define condition types


  • V/08—Define intercompany pricing procedure: Intercompany pricing may be derived following different intercompoany methodology like Resale Minus or Cost Plus. Depending upon company’s requirement, it may be configured.

Sales and Distribution Basic Functions Pricing Pricing control Define and assign pricing procedures


  • OVKK—Set up pricing procedure determination for new intercompany pricing procedure for all intercompany billing document types

Sales and Distribution Basic Functions Pricing Pricing control Define and assign pricing procedures

Intercompany Billing & Postings Configuration:

  • WEL1—Set up automatic postings to vendor accounts.

Sales and Distribution Billing Intercompany Billing Automatic Posting to vendor account.

Log Address = XXX XXXXXXXXXX

Company Code = XXX

Vendor = XXXXXXXX

  • OBCA—Set up company code assignments for inbound EDI invoice.

Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Invoices/Credit Memos EDI Assign Company Code for EDI Incoming Invoice.

Partner Type = KU

Partner Number = XXXXX

Company Code = XXX

  • OBCE—Enter posting parameters for EDI invoice receipt for intercompany vendors.

Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Invoices/Credit Memos EDI Enter Program Parameters for EDI Incoming Invoice.

Partner Type = LI

Partner Number = XXXXXX

Company Code = XXX

Indicators for Transfer:

Posting details:

G/L db.pstg ky = 40                         Invoice doc.type = RE   

G/L cr.pstng ky = 50                        Cred.memo doc.type = RA   

Vend.deb.pstng ky = 21                   Debit clearing acct = (blank)  

Vend.cred.pstng ky = 31                  Credit clearing acct = (blank)   

Tax-ex.tax code = XX

Standard Unit of Measure:

Standard unit = blank

  • OBCB—Set up GL account determination for EDI invoice processing for intercompany vendors.

Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Invoices/Credit Memos EDI Assign Company Code for EDI Incoming Invoice:

Partner Type = LI

Partner Number = XXXXXX

Company Code = XXX

Goods/Services No. = *

Goods/Services Number Details:

Goods/serv ID text  = (blank)

G/L account no. = XXXXXXX

Company Code = XXX

  • OBCD—Set up tax determination for EDI invoice processing for intercompany vendors.

Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Invoices/Credit Memos EDI Assign Tax Codes For EDI Procedures.


Apart from above configuration, one may require to maintain priding condition records, access sequence, AR output type to enable auto AP posting along with AR invoice posting.

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