Inter Company Billing Configuration

Inter Company Sales Process Configuration

Business Scenario: A group company (A) has two companies (B & C) doing their businesses separately and sell the goods from their own plants to their customers. However, a customer places an Order to company B and wants an Invoice from company B only. As, the goods ordered by customer are procured by Plant owned by company C only. Hence, business wants such a provision, in which, they could be able to deliver the goods directly to the customer from supplying Plant and company B should raise an Invoice to end customer. Further, Supplying Company would create an Invoice for delivered goods to Ordering Company.

Solution in SAP: SAP has offered standard solution to meet above requirement i.e. Inter Company Sales Process.

Process Flow in SAP: 

Sales Order Creation > Delivery > PGI > Customer Invoice > Inter Company Billing>Payment.

End User steps in SAP: 

Ordering Sales Organization will create a Sales order and enter a plant manually belonging to different company code (VA01).

Here, 3000 is my Ordering Sales Organization.

Trusted by over 1 million members

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions! Start Free Trial Cancel Anytime.







Inter Company Condition is inactive here.













Now Click on Goto > Header > Administration

Shipping point 1000 belongs to supplying com code. Sales Org 3000 belongs to ordering Company code.

Now, Select item, Click on GOTO > Item > Administration.

Distribution channel 15 and Division 30 belongs to Ordering Sales organization.

Intercompany billing relevancy. Now Post Goods Issue .









Create an Invoice for End Customer (VF01). VF01 > Give Delivery Number > Press Enter.







Here, we can see that 3000 company code is our ordering company.

Condition type PI01 is determined as inactivated having no influence on pricing calculation.











Create Inter Company Billing document

VF01 > Give the same delivery number again and press Enter.







We can see that system has determined Organizational unites of Supplying Company.







PI01 is activated here. Save the document.

Goto VL03N > Item > Financial Processing.







Configuration Steps: 

Material must be extended in both the Plants.



Supplying Plant must be assigned to the Ordering Sales Org + Dist Channel.



Intercompany billing document type to be assigned to Sales document.



Assign Supplying Plant to its Sales Area.



Create Internal Customer representing Ordering Sales Organization.



Assign Internal Customer to the Sales Organization.



Maintain Copy Control for LF > IV.



Assign Intercompany Condition types to Pricing Procedure







2. Assign Ordering Sales Org + Dist. Channel to Plant. Path: SPRO>IMG>Enterprise Structure > Assignment > Sales and Distribution > Assign Sales orgDist. channel – Plant (OVX6)

3. Assign Intercompany Billing type to Sales Document Type Path: SPRO > IMG > Sales and Distribution > Billing > Intercompany Billing > Define Order Type for Intercompany Billing (OVV8)









5. Create Internal customer Path: SAP Easy Access > Logistics > Sales and Distribution > Master Data > Business Partner > Customer > Create (XD01)







7. Assign Intercompany Condition types to Pricing Procedure Path: SPRO > IMG> Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define and Assign Pricing Procedure > Maintain Pricing Procedure (V/08)

8. Maintain Copy Control Delivery to Intercompany Billing. Path: SPRO > IMG > Sales and Distribution > Billing > Billing Document > Maintain Copy control







Inter Company Billing Configuration

Recommend Documents