Diff b/w Intercompany Billing and TPO.

Hi SAP  gurus,
What is the diff b/w Inter company Billing and Third Party Order

Dear Sabina
Inter Company Billing
You can set up your system in such a way that one purchasing organization procures material for a plant from a vendor (plant) that belongs to another company code within the same client (corporate group). This is an instance of an inter-company-code stock transfer with an SD delivery and a billing document
Third Party Billing
In third-party processing, you place a purchase order with a vendor to deliver goods or perform a service for a third party (for example, for a customer).
This means that your company does not deliver the material. You forward the order to an external vendor instead, who then sends the material directly to the customer and invoices you.
Third-party processing is carried out in the components SD (Sales and Distribution) and MM (Materials Management). By creating a third-party item in a sales order, purchase requisition, or purchase order, you can request that the vendor sends the goods directly to your customer. A document can consist of one or more third-party items.
Thanks
G. Lakshmipathi

Similar Messages

  • Give me the Configuration steps  for intercompany billing and third party s

    Hi Gurus,
    Give me  the Configuration steps  for intercompany billing and third party sales and give me a brief description with examples.
    Regards,
    YSR

    Dear YSR
    Check the links
    [Cross Company Configuration|http://help.sap.com/bp_bblibrary/500/Documentation/J62_BB_ConfigGuide_EN_DE.doc]
    [Third Party Without Shipping Notification|http://help.sap.com/bestpractices/BBLibrary/html/J55_ThirdPartyWOSN_EN_US.htm]
    Third party order processing is as follows:
    Assume three companies X, Y and Z
    X - The company,
    y - The customer
    Z - Vendor
    When ever X gets a PO from Y to supply some goods, X has an option of either manufacturing those goods or procuring those goods.
    If he is procuring the goods, there are two methods that are generally followed:
    Method 1)
    After receiving the PO from Y, X creates a sales order against Y.
    Now at the same time he also creates a PO to a vendor Z to produce the goods
    Z produces the goods and supplies to X
    X receives the goods from Z
    Then X delivers the same goods to Y.
    After that X invoices Y and Z invoices X.
    Note : Here there is no direct/ Indirect relation between Z and Y.
    This process is known as Trading Process. and the Material here is created  with Material type HAWA.
    The other method is a Third party order processing method:
    Here the glaring difference is that instead of Z supplying the material to X and X in turn supplying the same material to Y.
    X authorizes Z to supply the material to Y on his behalf and notify him once the delivery is complete.
    Now Z supplies the material to Y and acknowledges the same to X.
    Z  will send a copy of delivery acknowledgement and invoice to X.
    After receiving the delivery confirmation and invoice from Z, X has to verify the invoice and this process is known as invoice verification and is done in SAP through Tcode MIRO.
    The next step for X  is to create an invoice and submit to Y
    Only after the invoice verification document is posted  then only X can create an invoice for Y.
    This is the business flow that is followed for third party order configuration.
    There are few steps that have to be configured to enable the system to function as mentioned above.
    Step1)
    If you are always followwing a third party process for a material then you have to create the material using item category group BANS.
    The procument type should be marked as External procurement (F) in MRP 2 view of the material master record.
    if you are not always allowing third party order processing then u can create a material master record with item category group as NORM and the procurement type should be marked as ( X) meaning both types of procurment ( in house manufacturing and external procurement).
    Step 2)
    the item category in the order should be manually changed as TAS.
    For that you need to confugure the item category determination
    ord type + item cat grp + usge + Hiv level = Item cat + Manual item cat
    OR + NORM +      +       = TAN . + TAS
    OR + BANS +       +       = TAS
    Step 3)
    make sure that during the item category configuration for TAS  you need to mark relevnat for billing indicator as F
    Step 4)
    The schedule line cateogry for this type should be CS.
    make sure that you mark  subsequent type as NB - purchase requisition  in this schedule line category as this will trigger the purchase requision order immediately after the creation of the sales order and the PO to vendor is created against this purchase requiesion.
    thanks
    G. Lakshmipathi

  • INTERCOMPANY BILLING AND STO

    Hi!
    i wan som info regardin INTERCOMPANY BILLING AND STO.
    Thank u
    Bye

    Hi Rohit,
    Go thr below links:
    http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b911d43ad11d189410000e829fbbd/content.htm
    http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b917843ad11d189410000e829fbbd/content.htm
    http://sap-img.com/sap-sd/configure-intercompany-stock-transport-order.htm
    http://www.sap-img.com/materials/mm-faq.htm
    Steps in configuring STO:
    If you are referring to Inter company STO, pls follow the below steps.
    1) Create delivering plant as vendor in receiving plant’s company code & sales area – XK01
    2) From the vendor number created in step 1, create Vendor info record for the material that needs to be stock transferred.
    3) Ensure material is extended to both plants
    4) Delivering plant must be assigned to the receiving sales organization
    5) In the Vendor info record, go to MK03 and change the “add purchasing data” to delivering plant.
    6) Create receiving plant as customer in delivering plant’s company code & sales area.
    7) Ensure Purchase organization for the receiving plant is maintained
    8) Go to IMG- Materials Management-Purchasing-Purchase Order-Set up stock transport order ( transaction code:OMGN) and complete all the settings.
    Note:
    Maintain receiving plant / customer number from step 6/ delivering sales area
    Delivering plant/ customer number from step 6/ receiving sales area
    Maintain NLCC replenishment for cross company stock transfer with delivery type NB
    9) ME25- Create Purchase Order from receiving plant
    10) VL10B - Create delivery order from delivering plant’s shipping point with reference to the purchase order number raised in step 9.
    Save.        
    11) Go to VL02n & pick /post goods issue for the delivery order number created in step 10
    12) Do VF01 & bill to customer
    In step 8 You have the option of UB type in place of NB
    In step 10 you can also use VL04.
    In step 12 you select F8 type (pro-forma invoice).
    Reward points if it helps
    Regards
    Srini

  • Intercompany billing and PCA

    Hi,
    We've got a problem after PCA was implemented with Intercompany billing and especial the End customer invoice.
    The scenario where Profit centre is updated on the material Master and we would like to keep the same Profit centre throughout all the stages of the process without using substitution as the product range is dynamic very.
    We have implemented a user exit on the point of the Sales order creation which copies the value from field PRCTR (delivery PC) to field PCTRF (Billing PC) but on the next stage billing document is created the value is deleted again. As there is no substitution the Dummy Profit centre is used for the End Customer Billing document.
    I have asked SAP what can be done without using substitution and they said we should check SD copy routines but they didn't get very far and I wanted to check if someone has better advice or know how the copy should be set up.
    Please for your advice.
    Thank you
    Nadia

    Hi Rohit,
    Go thr below links:
    http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b911d43ad11d189410000e829fbbd/content.htm
    http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b917843ad11d189410000e829fbbd/content.htm
    http://sap-img.com/sap-sd/configure-intercompany-stock-transport-order.htm
    http://www.sap-img.com/materials/mm-faq.htm
    Steps in configuring STO:
    If you are referring to Inter company STO, pls follow the below steps.
    1) Create delivering plant as vendor in receiving plant’s company code & sales area – XK01
    2) From the vendor number created in step 1, create Vendor info record for the material that needs to be stock transferred.
    3) Ensure material is extended to both plants
    4) Delivering plant must be assigned to the receiving sales organization
    5) In the Vendor info record, go to MK03 and change the “add purchasing data” to delivering plant.
    6) Create receiving plant as customer in delivering plant’s company code & sales area.
    7) Ensure Purchase organization for the receiving plant is maintained
    8) Go to IMG- Materials Management-Purchasing-Purchase Order-Set up stock transport order ( transaction code:OMGN) and complete all the settings.
    Note:
    Maintain receiving plant / customer number from step 6/ delivering sales area
    Delivering plant/ customer number from step 6/ receiving sales area
    Maintain NLCC replenishment for cross company stock transfer with delivery type NB
    9) ME25- Create Purchase Order from receiving plant
    10) VL10B - Create delivery order from delivering plant’s shipping point with reference to the purchase order number raised in step 9.
    Save.        
    11) Go to VL02n & pick /post goods issue for the delivery order number created in step 10
    12) Do VF01 & bill to customer
    In step 8 You have the option of UB type in place of NB
    In step 10 you can also use VL04.
    In step 12 you select F8 type (pro-forma invoice).
    Reward points if it helps
    Regards
    Srini

  • Need the exact difference betwn Intercompany Billing and Inter-project bill

    Hi,
    Can any one tell me the exact difference between the intercompany Billing and inter-project billing?
    The decision to which should be used in which scenraios.
    also what is the Setup Level Difference in both.
    If you have any white paper / document / note in metalink also on this topic then I will be very happy to have that.
    Thanks very much in advance.
    Regards

    Hi
    Inter project billing may be used within the same operating unit.
    Intercompany billing may be used only accross operating units.
    Inter project billing means the provider organization is charging a separate provider project.
    With intercompany billing provider organization is charging the same project as of the receiver organization.
    With inter project billing the provider project may bill the receiver in any billing method as any contract project. With intercompany billing the billing is based on transfer price rules which may be only applied to actual expenditures of the provider organization.
    There is full list of all setup steps in Oracle Projects Implementation user guide.
    Dina

  • Intercompany Billing and Delivering Plant

    Hi,
      I had selected a delivering plant for my intercompany billing, that was different from the one previously assigned to my sales organisation and company code. However, even after cancelling those assignments, I still cannot use my original plant to process sales orders.
        I keep getting the error message" enter a valid delivering plant"
      Could you tell me how to resolve this issue and oblige?
    Regards,
      Aditya

    Hi,
    check whther the assignemnt for intecompany settings. The Delivering plant should be asigned to the ordering Sales org and distribution channel combination.
    Prasanth

  • Intercompany Billing and GTS Export

    Hello All,
    We have an inter-company billing scenario. As you may know, the Scheduling Agreement (S/A) has the Sales Company code (in this case our sister company in the EU) with the delivering plant in the US.  When the S/A is sent to GTS, because of the company code, it assumes the EU Foreign Trade Organization (FTO). This is not correct, it should be the US FTO based on the delivering plant. The same happens with the subsequent documents (delivery, proforma). 
    In order to correct this, is there development required or is there some standard configuration (on ERP or GTS) to handle this scenario?
    Please let me know your thoughts.
    Regards, Dean.

    Hi Dean,
    Sure, the customer invoice belongs to the Sales Company, but creating that billing document re-sets the billing index so that the inter-company invoice can be created.  And that one belongs to the production company.
    Actually, now I (vaguely) remember, I think you can produce a proforma for the inter-company invoice by setting up a Billing Type with Document Category 5 "Intercompany Invoice" and Transaction Group 7 "Billing Documents".  Please give it a try - I hope you'll find that it produces a document belonging to the US company, without posting anything to the ledgers.  Let us know.
    Regards,
    Dave

  • Order-related intercompany billing

    Hi
    I know that the standard system only generates an intercompany billing document for the cross-company code sales if a delivery is involved.
    The order-related intercompany billing and the cross company process for service items, leasing and maintenance items and third-party items is only possible with using the sap note 63459.
    I am using ideas ecc 6.0, where in the report required for creation of intercomapny billing ZZIVAUFT is already there. But here it asks for billing documnet & not the Purchase order or sales order.
    Has any body worked on this note. Can i get the deatils how to impliment this note.
    Thanking you
    Vinod

    Hi,
    buddy don't know abt ecc6 but it'll great if you tell me what all need to be done for order related inter comapny billing in 4.7 beacuse i think you know abt it.I gone through with that OSS notes 63459 but could'nt get through with it.Could you expalin.
    I hope will get a response from you.
    Regards,
    SATYA

  • Intercompany billing for services

    Hi,
    I need a few details about intercompany billing, and how is thi set in SAP standard way...
    Is it possible to set that company A create a purchase order for services and another company B creates on this PO sales invoice, and on the company A is then invoice verification done automaticaly.
    Can you please provide me details about intercompany billing?
    Thanks + BR
    Saso

    Hello,
    For this refer intercompany for order related billing.Choose billing type IVA.Maintain copying control accordingly.For services delivery is not required.
    In this when company B provides services to customer and raise intercompany bill to company A, and then company will raise Bill to End customer.
    Follow the std settings of intercompany except copy control for billing type (OR---IVA)
    Revert for further clarification.
    Regards
    Amit Gupta

  • Intercompany Billing  through the EDI

    Hi Experts,
    I have configured the Intercompany Billing and it is working fine. But, I have to do it through EDI so that the Posting in the Delivering company is made automatically through EDI.
    I guess this can be done but I don't know the Steps of Configuration for Intercompany Billing through EDI.
    Regards,
    Jans

    Hi,
    detailed guide on edi intercompany billing:
    http://www.scribd.com/doc/5024013/InterCompany-Billing-IDoc
    Best regards,
    Zuzana

  • Intercompany Billing - Destination country

    Hi,
    The scenario is: There is a Sales order from FR to UK to deliver goods.
    In the intercompany billing document --> Header  --> Tax --> Destination country, i would expect 'FR'.
    But, the system is still considering the Destination country from the Ship-to (RE).
    May i know if i am missing something here.
    thanks & regds
    Narain

    Hi
    I think there is a small confusion between Intercomany billing and Export sales.
    Your case is intercompany billing and it need not be always export.
    As your SH is from FR the destination country will be FR only and this is correct, the only difference is that the delivery is done from a plant from a different company code. The delivering company code can be either from the same country or from different country. This is the intercompany scenario.
    An export sale need not be intercompany. The SH will be from different country and the selling and delivering company codes can be same. In this case, the destination country will be UK.
    I think this makes things clear.

  • Order-Related Intercompany Billing - Copying Partners

    We are using order-related intercompany billing and I need to have one of our custom partner types copy from the sales order to the intercompany bill.  I have not found a way to make this happen.  Can you help?
    Thanks in advance,
    Tracy

    Hi,
    You can copy partner function from Customer master- Add this new partner function in customer master too- Change actual partner number in sales document - you can achieve this
    Thanks
    Chidambaram

  • Intercompany billing Issues

    Hi SD experts pls help for the following issue.
    We are implemented Intercompany Billing, but its Order realted billing, not delivery related, since all materials are service items(Unit of Measure is Per hour Biiling)
    Issue is When i am run VF04 for Creating F2 and IV only F2 is generating IV is not generating.
    As per my knowledge we cant do from Standard process to Implementing Order related billing and Intercompany billing and need to refer some notes,(means its deaviating from Standard process)
    Pls help how reslove this issue and where i can get settings doc.
    regards
    Satish

    Dear Satish,
    Make sure that you have checked the check mark for
    Order related
    and
    Inter company billing under documents to be selected tab in VF04 transaction.
    I hope this will help you,
    Regards,
    Murali.

  • Intercompany billing, delivery is not found

    Folks,
    I have setup EDI for intercompany billing and currently the IDOC gets stuck after creating the invoice. The RD04 does run but gets stuck:
    Delivery note/service entry sheet 0080000221   does not exist
    When I do a manual MIRO for the delivery note, no items are found. The delivery number obviously does exist.
    What is causing this?
    MdZ

    Problem solved. GR in MIGO should be done on the delivery and not on the PO.

  • Order and Third Party Related Intercompany Billing

    Dear All ,
    I am facing a problem in creation of third party order relevant intercompany billing .
    We have created commercial invoice from one co. code , but not able to create interco. invoice on the other co. code .
    Error message while creation of intercompany billing : No open Billing quantity has been determined .
    In our organisation , two co. codes are used because under one co. code sales is booked and under other co. code plant is entered .
    Hence , there is an involvement of commercial billing ( order related ) and intercompany billing ( which is also order - related ) .
    Help which customisation needs to be changed / amended to resolve the issue .
    Thanks .

    Hi
    Check item category  <b>TAS</b> as  billing relevance  <b>F</b>if you do MI<b></b>GO and <b>MIRO</b>, you can bill the quantity
    Rectify whether the line item Updated with Reason for Rejection

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