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Author's profile photo Vivek Paul L

Inter-company process in S/4 HANA

I would like to share the steps that were followed to set up inter-company process during a recent S/4 HANA Implementation. Manual configuration  was carried out. Though the set-up is a bit similar to previous releases, some things have changed in S/4 like Business Partner for internal customer/supplier, new output management and so on.


These are the relevant areas in IMG Logistics:


  • (a)    Set up Stock Transfer Order


     (b)  Set up Inter-company Billing


   (c)    Most of this should be straight forward, except maybe for the assignment of internal customer number:



  What is new here in S/4 HANA is that customers and vendors have been replaced by business partner.


    (d)  You must use transaction BP to create business partners:


  • Role FLCU00 is for company code data (FI customer)
  • Role FLCU01 is for sales area data (SD customer)


  • Role FLVN00 is for company code data (FI supplier)
  • Role FLVN01 is for vendor area data (MM supplier)


   (e)  Other master data must also be created (pricing records, etc.). SAP recommends the usage of

pricing lists instead of condition records because this runs faster.


   (f)    Set up FI/CO customizing for billing


Below are the customizing steps followed to set-up inter-company billing,



Company Code US 1710 is delivering company

Company Code DE 1010 is ordering company


Supplier in 1010 is 10301710

Customer in 1710 is 17101010

Reconciliation account for customer has to be 12300000


  Account assignment group has to be 03 for affiliated comp revenue.


    Reconciliation account for vendor has to be 21300000 Trade payables affiliated companies     /wp-content/uploads/2016/06/6_967862.jpg

Inter-Company Billing – Automatic Posting To Vendor Account (SAP-EDI)

  Automatic posting to vendor account is done by EDI. In our case where both companies are processed in the same system (& client), it is sufficient to create IDOC
  This process requires several steps:
1. Creating a Customer to represent the receiving Company.
2. Creating a Vendor to represent the supplying company.
3. Creating a Port
4. Maintain an Output Type

  5. Creating a Logical Address
6. Creating a Partner Profile for both Customer and Vendor
7. The relevant FI customizing is maintained.


1. Creating a Customer to represent the receiving Company. -> Done Example HCF7: 17101010
The customer master data has already been created for the purpose of Intercompany
processing and entered in the appropriate transaction in customizing (Sales and
Distribution -> Billing -> Inter-company Billing -> Define Internal Customer Number By
Sales Organization).


   Note: The sales area data for the IC customer has been created in the supplying company code / sales area.

2. Creating a Vendor to represent the supplying company. -> Done Example HCF7: 10301710
The Vendor is created with the standard transaction.
Note: The Vendor is created in the receiving Company Code. The organizational data in
this case is the same as above.

NOTE: There is NO need to “connect” vendor to customer in the control screen.

3. Creating a Port   ->  logical system HCF7CLNT715

Tools a Business Communication -> IDoc Basis -> Idoc a Port Definition (T. Code WE21)
Maintain Transactional RFC: (Choose Transactional RFC and press the create icon).
A dialog box will open asking whether you want the system to generate an automatic
name or whether you wish to use your own name.


Port name: Automatically generated
Version: 4.x
RFC destination: logical System of the system client -> HC7CLNT715


4. Maintain output type -> Dummy Type RD00 for IDoc necessary

Output Type RD00 – Invoice is a special function, responsible for the execution of the IDOC.

Output type RD00 is maintained: IMG: Sales and Distribution -> Billing -> Inter-company Billing -> Automatic Posting To Vendor Account (SAP-EDI) -> Maintain output types (T. Code V/40).  


Assign Outbound process codes

Call transaction SM30 and choose the view VEDI_TEDE1. Maintain the following entry:

  • Process code: SD08
  • Description: “Intercompany Billing”
  • Function module: IDOC_OUTPUT_INVOIC_IV_MM


Set up Output Management in Fiori App

In Fiori Launchpad choose App “Output Management” and add the following rule: If receiving BP = IC Company Code use IDOC


5. Create Logical Address -> 17100017101010 = log. Adresse / BUK = 1010 and Vendor = 10301710
Tcode SPRO (IMG): Sales and Distribution -> Billing a Intercompany Billing -> Automatic Posting To
Vendor Account (SAP-EDI) -> Assign vendor. (T. Code WEL1)


Logical address 17100017101010 is made of the supplying Company Code (1710) and the
receiving Customer (17101010).

Note: If the receiving Customer is a numeric number you must add zeros between the
Company code and Customer number so the Logical Address will be 14 digits.
The Logical address is completed when the receiving Company Code and the Vendor are
entered in the detail screen.

It is also necessary to activate the account assignment.


Tcode SPRO (IMG): Sales and Distribution -> Billing è Intercompany Billing -> Automatic Posting To
Vendor Account (SAP-EDI) -> Activate account assignment. -> CI02 Invoice Intercompany / CIC2 Invoice Intercompany Cancellation


6. Creating a Partner Profile for both Customer and Vendor
Tools a Business Communication -> IDoc Basis -> Idoc -> Partner Profile (T. Code WE20)

  1. Customer: -> 17101010
    Put cursor on Partner type KU and press create.
    Enter type, Agent and Lang,


Pressing outbound parameters. Section, to maintain detail screens
The following screen will appear.

Enter the following data in the appropriate fields:
Partn.funct.:            BP
Message type:       INVOIC
Message Code:     FI
Receiving port:      A000000003
Basic Type:            INVOIC01


Press enter and the screen will change to the following:

Enter PaketSize 1

Go to the Message Control tab press and enter the data as specified in the following


Vendor -> 10301710
Follow the same procedures but maintain the inbound parameter Screen as follows:


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      Author's profile photo Pablo Martin Ankudowicz
      Pablo Martin Ankudowicz


      Thanks to post and share this documentation. It´s clear and well organized. Best regards.

      Author's profile photo Former Member
      Former Member

      Hi Vivek,

      Thanks for your clear guidance.

      However, after setting all the steps above, we still get the error message "No entry for partner function '' in table TPAR".

      Seems that the system didn't get 'BP'(or 'RE') from the invoice.
      I'm sure that the receiver and partner partner bill-to are maintained in the invoice.

      Any other configuration did I miss? Please help.

      Author's profile photo Víctor Gil Franco
      Víctor Gil Franco


      I am also facing the same issue as Erica with the blank partner error. Any clue? Does this have to do with the BRF+ configuration?


      Author's profile photo Former Member
      Former Member

      I'm trying to set up an Intercompany stock transfer process. (ie create a PO in company A, which sends IDOC to company B in the same SAP client, and Sales Order is created in company B). I've done this successfully in the past in an ECC6 system, and am now trying to do the same in S4Hana 1511, following my documentation from the ECC6 implementation.
      So I have done the following steps in Output control and BRF+, but an IDOC is not created. What have I got wrong ?

      Output Control -> Define Output Types    - Purchase Order is already defined here, so no changes

      Output Control -> Assign Output Channels - added a channel for Purchase Order IDOC

      Output Control -> Define Determination of Form Master Templates    - I don't think this is needed for IDOCs, am I correct?

      Output Control -> Define Business Rules for Output Determination (Transaction: OPD) - added a record for the Intercompany document type ZNP

      rules for Purchase Order, determination Receiver - I don't think I need add anything :-

      Purchase Order, determination Channel - I've added this record

      I don't think I need to add any records for the rest of the determinations (Printer Settings, email settings, email receiver, form template) because they don't seem relevant for IDOCs. Am I right?

      When I create an intercompany PO, I expect to see message data for Print and Idoc, but I only get the Print message. And the Idoc is not sent.

      Author's profile photo Vivek Paul L
      Vivek Paul L
      Blog Post Author

      Hi Richard,
      Could you please check whether SAP note 2311488 - No Output triggered when Purchase Order saved is implemented in S/4HANA.

      Vivek Paul


      Author's profile photo Former Member
      Former Member

      I'm also following the process in the blog to set up the billing process. Unfortunately the screenshot for "Output Management" is not clear enough to see all the details - what is in the field "Receiver" ?

      Author's profile photo Former Member
      Former Member

      I've found note 2228611 - Output Management in SAP S/4HANA , which has a link to note 2267376 - Billing Document Output Management (a search for 2267376 doesn't work, follow the link from 2228611). 2267376 says :- Because output management for SAP S/4HANA only supports the "pure" output channels, while the NAST-based output is also used for several kinds of post-processing, output management for SAP S/4HANA cannot be used if one of the following NAST transmission mediums is required: 8 Special function 9 Events (SAP Business Workflow) A Distribution (ALE) T Tasks (SAP Business Workflow) In this case, please switch back to NAST:

      So I think we must switch back to NAST to get IDOCs working.


      Author's profile photo Former Member
      Former Member

      In the S/4 HANA environment a few configuration elements are required to enable the correct partner functions. To enable the partner functions AG/RE/RG (basic type INVOIC, message type INVOIC01/INVOIC02, condition record RD00) add the following partner functions in the transaction VOE3:

      • Partner function SP - E1EDKA1-PARVW=“AG”
      • Partner function BP - E1EDKA1-PARVW=“RE”
      • Partner function PI - E1EDKA1-PARVW=“RG”
      Author's profile photo Former Member
      Former Member

      Facing a weird issue. Can you help with where do I assign the transport request when maintaining the output management in FIORI ?

      Author's profile photo Former Member
      Former Member

      Hi Jitendra Jha,

      Once the background work is done the same is configured through RFC and binded those into front end.

      Author's profile photo venu gopal
      venu gopal


      Hello Vivek,

      Could you please explain price list as you mentioned better to create pricing list instead of creation condition records

      Any difference and let me know how to maintain.


      Thanks a lot

      Author's profile photo Paul Smith
      Paul Smith


      Thanks for this - your a life saver.

      Just one thing on the Output determination I didn't use the Fiori APP, I used the following;

      SPRO – > Cross-Application Components -> Output Control -> Define Business Rules for Output Determination (Transaction: OPD)


      I also had the issues with TPAR when manually adding the output in the billing document - the fix was to change the partner to "RE" and not "BP". i.e. German version.

      Author's profile photo Gourav Jain
      Gourav Jain

      Hi Expert,


      How we can do the inter company transaction if we the parent company is not there in same client.


      Basically I have a scenerio where my parent company is in USA working on SAP ECC and now we are implementing the SAP on India. How we can capture the related parties, inter company transaction and group reporting in 1909 system.



      Author's profile photo Anil Kumar gajula
      Anil Kumar gajula

      Hi Vivek,

      Thank you for the blog. Good to find this one.

      One scenario I have, on interco vendor on ECC, for a PO in S4H.

      In case we have two different systems S4 HANA OnPremise and ECC. And currently we are on ECC and planning to implement S4 HANA OP on a different system for one company code with in the same organization, meaning the two are affiilate systems.

      In this case,

      1. if I have to create PO, what would be the document type of this PO?
      2. If I have to create return PO in S4H, what would be document type of this PO to interco vendor on ECC?

      Thank you.