In this blog you will learn about the service order process with resource-related intercompany billing. This service process flow is based on SAP S/4HANA Cloud Private Edition, release 2023.
In this process, two companies are involved: a 'demanding' company and a 'supplying' company. The demanding company holds end-to-end responsibility for service delivery to the end-customer. However, for the execution of the service, the demanding company may utilize a technician from the supplying company, particularly if it lacks technicians with the required skills. In such instances, the demanding company seeks support from another entity.
Step 1: Long-running Intercompany Sales Order
Create an intercompany sales order between the company codes involved in the service process. This sales order, which remains active for an extended duration, manages all intercompany billing processes from the supplying company to the demanding company. The demanding company is the sold-to party in this intercompany sales order.
Assign a DIP profile (Dynamic Item Processor) to the sales order item. This DIP profile is used in the process to convert the costs in the supplying company to materials that are included in the intercompany invoice towards the demanding company.
Step 2: Create Service Order and assign to Executing Service Employee
In the demanding company, create a service order and assign a technician from a different company code (supplying company). The costs that this technician will book, need to be billed between the involved company codes.
Step 3: Create service confirmation
The technician from the supplying company creates a service confirmation for the planned services and expenses.
Step 4: Display cost postings
The confirmation postings (Timesheet and Expense posting) result in cost postings in the demanding company code and supplying company code.
Here is the result for the Timesheet posting.
Here is the result for the Expense posting.
Step 5: Resource-Related Intercompany Billing
Using Resource-Related Billing Between Company Codes (DP93), the costs in the supplying company are converted into an intercompany Debit Memo Request to the demanding company.
Step 6: Intercompany Billing
The Debit Memo Request can be invoiced to the demanding company.
Restriction: Service Parts are not supported in this intercompany process.
This means that a technician from a supplying company cannot confirm service parts from his/her own stock in the supplying company. These intercompany material costs are not supported. However, it is supported that the technician confirms service parts from the demanding company.
Intercompany Service Execution
S/4HANA Service additionally supports another Intercompany service scenario: Intercompany Service Execution. More information about this process can be found in a separate blog: Intercompany Service Execution
In Intercompany Service Execution, the 'demanding' company (or 'commercial' company) is responsible for the commercial agreement with the end-customer. However, for planning and execution of the service, the commercial company relies fully on another company ('supplying' or 'executing' company). In contrast to the scenario described above in this blog, this intercompany process is supported by 2 connected service orders.
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