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Intercompany Business Processing

I would like to share the basic information on Intercompany Business Processing

Prerequisites for Inter company Business Processing –
Working with Inter company Sales Processing
Working with Inter company Stock Transfer
Working with Inter company Deliveries
Working with Inter company Billing

Inter company business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code.

The following intercompany business transactions are possible –
Inter company sales processing
Inter company stock transfer

Company Structure –

Com. Code  Sale Org.  DC    DV   Plant Purch. Org.
100                 1000          100    10     RP    PO1
200                2000         200   20     SP    PO2

Master Data –

Customer A (Defined in both the sales areas)
Vendor B (Defined in both the purchasing organizations)

Intercompany sales processing –

A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.

Intercompany stock transfer –

A purchasing organization which is assigned to the ordering company code creates a purchase order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.
Because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an intercompany billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.

Prerequisites for Intercompany Business Processing –

Define Order Types For Inter company Billing.
Assign Organizational Units By Plant
Define Internal Customer Number By Sales Organization
Set Up Stock Transport Order
Condition records to specify inter company charged for every permissible combination of plant and sales organization

Working with Intercompany Deliveries –
Depending on the intercompany business transaction, the goods are delivered as follows:
When                                                               Where to
for inter company sales processing      to the customer
for inter company stock transfer           to the plant assigned to the ordering company code

You process the delivery as usual, selecting a shipping point that is assigned to the delivering plant.
Goods issue is carried out in the delivering plant.

Thank You for reading Intercompany Business Processing.

 

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