Inter company Sales and Purchasing
Hi all,
We need to clarify on this requirement and how to do it in SAP.
We have a company and two company codes (001 and 002). Purchasing is done from 002. But stock maintenance happens only in 001 - plant 010.
we have vendor 01 who supplies good for purchases done in 001 company code. 001 have a markup for these purchases.
In this case how purchase orders and sales orders should be created.
Please explain the complete process.
Thank you..
Hi All,
This is the exact requirement in detail. I have attached the image with this which explains my assumed org structure. and I will explain the required business process which I need to configure on SAP.
1. customer order comes to plant 1 (company code 1)
2. SO converts to PO
3. Plant 1 generates the purchase order to plant 2 ( company code 2) this will be a sales order to plant 2
4. plant 2 generates a PO for a vendor based on that SO
5. PO will be sent to vendor
6. Vendor should send good directly to Plant 1 (company code1)
*** I need to maintain a markup for company code 2 for the purchases.
*** Invoice verification should happen in plant 2 (Company code 2)
Please help me in following questions.
1. what should I use for this scenario? (Third party order processing, STO?)
Please explain the scenario step by step
2. How can I maintain the Markup for company code 2?
3. If this should be third party processing/ STO, how returns from plant 1 should be handled? How it should be recorded in Plant 2?
Similar Messages
-
Bussiness process of Inter company sales and why we suggest Inter company
Dear All SD Gurus,
I want to Know the business procees of inter company sales and why we suggest inter company sales to clint?.
Because in Third party sales also vendor delivers the goods to customer so why we need to go for Inter company.I want know the Major defferences between them.
Please Help
Regards
S KumarDear Sandeep
1) Inter Company Transfer
We should not call the inter company transfer as sales. The proper way to account for these transfers is to treat them as consignment sales.
Why?
1) You do not recognize income until the stock is actually sold to the end user (ie retailer, wholesaler).
2) You minizime your taxable income.
2) Third Party Sales
In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.
Thanks
G. Lakshmipathi -
Intra-company sale and purchase between two plants
Hi All
I would like to know how can intra-company sale and purchase be carried out in SAP?
Details of scenario:
There are 2 plants under one company code which are represented by 2 diff profit centre.
When plant u201CAu201D requires component, it raises Purchase Order and then plant u201CBu201D issues Sale Order and sells this item to plant Au201Du201D with profit margin.
How can this scenario be mapped in SAP so that my material inventory does not inflate and at the same time there is sale shown in plant 2 and purchase in plant 1. Also corresponding entries of internal sale and internal purchase are shown in respective profit centre.
Request you to please help me out.
Regards
PrashantHi,
Please ask your MM and SD consultant to configure Stock Transfer Order for such situation, the process flow will be as follows:
1. Create PO with type Stock Transfer Order
2. Create Delivery (VL10B)
3. Do the Goods issue
4. Then do the goods receipt
There will be two plant that is shipping plant and receiving plant.
Please refer below link:
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/c05e2251-91f0-2c10-4e91-e919468e4687?QuickLink=index&overridelayout=true
Br,VIvek -
Inter-Company Sales v/s Inter-Company Stock Transfer v/s Third Party Sales
Hi, I understand the basic business processes between Inter-Company Sales, Inter-Company Stock Transfer and Third Party Sales.
The Inter-Company Sales is sales process between two companies having different company codes. A customer orders an item to Company A which can't be delivered by Company A, so Company A generates PO to Company B which supplies the item to Company A and finally Company A delivers it to Customer.
The Inter-Company Stock Transfer is stock transfer from one plant to another where the plants belong to two different company codes. Now all Inter-Company Sales process covers Inter-Company Stock Transfer process.
Third Party Sales process is process where a customer orders an item to Company A but Company A ca't deliver the item to the customer. So Company A generates a PO to Company B which in turn directly delivers the item to customer. After the goods receipt verification at customer end Company A pays to Company B.
Now looking at the these basic process steps I just want to know what is the basic difference between Inter-Company Sales and Inter-Company Stock Transfer ? Is this something that when there is a need to deliver an item to the customer and not available in that company, the Inter-Company Sales takes place but when there is no customer order but the companies want to maintain stock, the Inter-Company Stock Transfer takes place ? Please clarify based on my above understanding.Hi
I will explain you with example
Say there are 2 org structures
Company code 1000 sales org 1000 and DC 10 and division is 00 and plant 1000
Company code 2000 sales org 2000 and DC 20 and division is 00 and plant 2000
Now A customer Say X lies in sales area 1000,10,00 and a sales order is created for a material ABCD for this customer X in sales area 1000,10,00
Now if the plant 2000 supplies this material ABCD for this order to the customer X in sales area 1000,10,00 then it is intercompany sales
IF the plant 2000 transfers the stock to plant 1000 ands (then if the plant 1000 supplies to this sales order for customer X) then it is intercompany STO
If the material is supplied from a external vendor directly to the customer X without involving your plants then it is third party sales
Now all Inter-Company Sales process covers Inter-Company Stock Transfer process
No not at all
Both are entirely different
Inter-Company Stock Transfer process doesnot involve Inter-Company sales
Similarly Inter-Company sales does not involve Inter-Company Stock Transfer process both are different
Third party means it is an external vendor not your other company code
All three are different
If a plant belonging to one company code directly makes a delivery for a customer to the sales order created in another company code then it is intercompany sales
the movement of stocks between plants of 2 different company codes is inter company STO
Regards
Raja -
What are the questions they will ask for inter company sales?
hi all gurus,
pls. let me know the process of inter company sales and the questions can
ask in the interview.
thanks all
arunHi Arun,
Plz check these links which have most FAQs and interview questions on SD.
http://storage-search-swicki.eurekster.com/SAPSDfaq/
http://www.sapfans.com/sapfans/sapfaq/faqsd.htm
http://www.sap-img.com/sap-sd/important-tips-for-interview-for-sap-sd.htm
http://www.sap-img.com/sap-sd/sap-sd-interview-questions.htm
http://www.sap-img.com/sap-sd/interview-questions-and-answers-on-sap-sd.htm
http://www.sap-img.com/sap-sd/some-sap-sd-interview-questions-1.htm
http://www.sap-img.com/sap-sd/some-sap-sd-interview-questions-2.htm
http://www.sap-img.com/sap-sd/sd-questions-on-corporate-structure.htm
http://www.sap-img.com/sap-sd/short-sap-sd-questions-1.htm
http://www.sap-img.com/sap-sd/short-sap-sd-questions-2.htm
http://www.sap-img.com/sap-sd/short-sap-sd-questions-3.htm
http://www.sap-img.com/sap-sd/sd-faq.htm
http://www.sap-img.com/sap-sd/link-between-sap-sd-mm-and-fi.htm
http://www.sap-img.com/sap-sd/why-do-we-assign-division-to-sales-organisation.htm
Plz mark helpful answers and close the thread once it is solved/answered.
Thanks,
Vinay -
Inter company sales transaction
Hi Experts,
I have completed doing intercompany sales transaction....besides there are few question croping up which I wud like to post here...
1)How inter company billing doc type IV is able to determine ordering company as a payer at the time when I tried to create IV document(intercompany billing doc)..?
2)How sales area is determined?....bcoz am creating IV with reference to del doc which has end customers sale area...but I can see ordering company's sale area in IV doc...how it is?
3)might be this question sud hav taken the priority first but still...how billing type IV is determined automatically after creting F2 doc?.......
Thanks in advanceHi
3)might be this question sud hav taken the priority first but still...how billing type
IV is determined automatically after creting F2 doc?.......
In the configuration of sales doc type in VOV8 in the billing tab we maintain intercompany billing type as IV
Config is maintained here
In Inter company sales transaction in the end customers sales order we change the delivering plant which belongs to different company code
Customer ABCD orders sales org 1000 belonging to company code 1000
But plant 2000 belonging to company code 2000 delivers the material
So in the sales order of 1000 sales org when the delivering plant is falling as 2000 system senses it is Inter company sales and proposes billing type accordingly
1)How inter company billing doc type IV is able to determine ordering company as a
payer at the time when I tried to create IV document(intercompany billing doc)..?
Billing type IV is used per default for the internal invoice. This is proposed
based on the document type of the order.
In principle, the payer of the internal invoice corresponds to the ordering
company code, which appears like a customer to the supplying company
code.
For this reason, you create a customer master record in the supplying
company code. You enter the relevant data for billing in this customer
master record. Finally, you assign the related customer number of the
sales organization of the ordering company code in Customizing (field
Customer IV).
The company code in the internal invoice results from the company code
affiliation of the supplying plant. It thus corresponds to the supplying
company code.
In Customizing, you assign the sales area necessary to create the internal
invoice to the supplying plant
I am not able to get clearly your qn 2. exactly your query
Try to read GLYNN C WILLIAMS materials in Inter company sales transaction
That is very clear
Regards
Raja
Note For 1 of your thread which was closed today i asked you how did you fix the issue
Pls reply to that There is so much to learn from your reply -
Inter company selling and inter company stock transfer?
Hi Gurus,
what is the difference between Inter company selling and inter company stock transfer?Hi,
Intercompany selling is the sale of goods in one company code to another company code.Here with the settings at OMGN purchasing plant creates PO with document type NB and system will allow to put conditions in the PO .Sometimes transfer price also may take place.Sale plant will deliver the goods at VL10B and PGIs the material at VL02N and bills the customer here the purchasing plant , and purchasing plant receives the material normally posts the sent bill by his vendor the sale plant at miro.
In the stock transfers, it is a normal stock transfer between the plants of a sdame company code , which does not involves with bilkling rather system will allow to put the conditions of frieght only in the PO.As said the the PO will be created with document type UB. if you want to involve the SD do the settimgs at OMGN for document type UB.AND the other prosedure will be same as above.
If not the stock transfer can also be done using mormal MIGO operations of moment types.After receiving the stock will be valuated at the receiving plant valuation.
Do remember that the material should exist in both the plants.
Regards, -
Inter Company Billing and automatic booking to Vendor master.
Hi,
Wish you a Happy New year,,,,,,,
We have done all the necessary configuration for generating Inter Company billing including the Cost booking to vendor Automatically.
There are certain points where I need some help,
1) During Idoc genration we are getting error related to Payment terms of Internal Customer.
If the payment terms is immidiate then only an Idoc is getting generated,,,,,,,,, else it is throwing an error message " status 51", but according to our business requirements it may be for any days and this may also impact our aging analysis and cash flows.
2) We have configured upto Third level of product hierarchy but while creating a contract if user maintains only upto first level, then release to account is not happening for inter company billing. Where as if user maintain upto third level there is no issue in the whole process of inter comapny billing.
Kindly suggest us how to restrict user to maintain product hierarchy pto third level during the creation of contract.
3) during the Inter company billing generation, if the internal customer is eligible for Tax exemption or tax booking, that is how to book the tax details to internal customer and also to vendor while booking the cost.Please let us know the logic for tax processign in Inter company billing and Idoc generation.
Awaiting for a favourable reply and thanks in Advance.
Regards,
Upendra.Hello,
Did you assign the internal customer to the ordering sales organisation? If not, then create a customer in Delivering Sales org + DC+ Div + Plant and assign the same in the ordering sales organisation.
You can maintian the same in SPRO --> Enterprise structure --> Defenition --> Sales organisation (Enter internal customer).
Or
SPRO--> Sales and Distribution --> Billing ---> Intercompany billing --> Define internal customer
Prase -
Edit back to back sales and purchase order with dropped ship warehouse
Hi
Our Client request to be able to edit back to back sales and purchase order with Drop Shipped WH which is frequently required according to their business nature in overseas trading.
Kedalene ChongHi Daniel,
In the PO Ship To address field, the database/company address will appear until a warehouse is selected. Once a WH is selected, that is the address that will appear. If there is no WH address, the company address is indicated in the field (note: no company name just the address).
If you want a different address/name, you can type it into the ShipTo address field and the PLD template will use whatever is in the field.
If it is because there is no company name on the PO - does this mean you want a different company name than the one in the PO header. If this is the case and the ShipTo address & company name is always the same, you can update the PLD template by changing the ST address field to Text and enter the company name & address you want on the PO. This will appear on every PO regardless of what is in SAP. If you want the company name to always be the same, add a text field above the ST address field and fill in the company name; the address will be pulled from the PO Logistics ST field (per the first paragraph above).
If this is not what you want, please explain in more detail what you would like to do.
Heather -
Intracompany sale and purchase of material
Hi All
I would like to know how can intracompany sale and purchase be carried out in SAP?
Details of problem:
There are 2 LOBs under one company code which are represented by 2 diff plants, valaution area and profit centre.
When 1 LOB requires component "A" (trading component), then LOB 2 sells this item to LOB1 with profit margin.
How can this scenario be mapped in SAP so that my material inventory doesnt inflate and at the same time there is sale shown in LOB 2 and purchase in LOB1. Also corresponding entries of internal sale and internal purchase are shown in resp profit centre.
Request you to please help me out.
Regards
RakeshHi gj,
SAP's answer to the requirement was already mentined above. SAP foresees to use a parallel profit center valuation where the internal sales would be represented.
from the help docu:
Company A sells a product to Company B, thereby realizing a profit that must be shown in its balance sheet (corporate and tax balance sheets). Because Company A and Company B both belong to a group, this sale is merely as an internal stock transfer when looked at from the point of view of the group. Thus no group (internal) profits can be realized as a result of this transfer. Such internal profits can also arise when the exchange is between two profit centers instead of two independent companies of the group.
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/eb/13811243c411d1896f0000e8322d00/frameset.htm]
best regards,
Udo -
Inter-Company sales processing
Hi All,
I have carried out the Inter-Company sales processing and it is working fine upto the creation of Inter-Company billing. The Inter-Company billing and Accounting document have also got created. I have used both the output condition types RD00 for manual and RD04 for automatic posting.
Please let me know the process, which is need to be followed to complete the Inter-Company code sales processing once the intercompany billing/invoice is created....
When both the ouput condition types have been processed successfully, what is the next process???
In case of manual process, how/where the Ordering company code will take the Goods receipt and Invoice receipt? What basis/what the reference document, the ordering company code will use to process the above.
Hope I have conveyed my requirement.....
Please help me...
Regards,
Mani
In case of Automatic process, how/where to check whether the data has been processed in the ordering company code?Dear Manivannan R
This is not Intercompany Scenario as defined by SAP, Intercompany scenario is different. In that if one company is not having stock then on behalf of one company , second company delivers the good to customer and second company gives IV invoice to first company, and actually first company sends invoice to customer
however your scenario can be done in following way
1. First Scenario when PNT2 supplies the goods to PNT1, COC2 is vendor for COC1 and COC1 is a customer for COC2, so define one customer and one vendor
2. second scenario, when PNT1 supplies the goods to PNT2, COC1 is a vendor for COC2 and COC2 is a customer for COC1, so define one customer and one vendor
Now you can use your existing sales order type and pricing procedure and treat this as normal sales
Or
you can define specific sales order type and pricing procedure if your existing sales order type and pricing procedure is not sufficient.
Regards
Jitesh -
Hello friends
These are the intercompany questions need to be clear.Please help me to understand.
A) While doing Invoice IV - from delivering compamy code (ex 2000) to ordering comany code (ex 1000)
Under company code : 2000 , Plant -A and
under company code : 1000, Plant- B and sales org- us01.
I know customer presence should be there for inter comapny Invocie.
Now My questions are
1) how to create customer and who will be the customer - (plant -? under coppany code -1000)
2) from where the inter company Invoice is comming - from - (plant or sale org -? under company code -2000) and what is the link -? I mean how sytem will understand this -?
3)New pricing procedure involved for invoice IV -?
4)if there is intercopmpany sales , inter copmpany stock transfer whould also involve or not necissary -?
5) AND if I am misssing any important points in inter company sales please guide me.
I am not clear, please help me on this.
Thanks
Krish1) how to create customer and who will be the customer - (plant -? under coppany code -1000)
Ordering sales organization has to be created as Internal customer, who will receive the IV invoice. from the supplying sales organization ( IV will be created wrt: Delivery , in which sales organization will be supplying plant's sales org)
2) from where the inter company Invoice is comming - from - (plant or sale org -? under company code -2000) and what is the link -? I mean how sytem will understand this -?
when you create invoice 2nd time wrt: to the delivery document, then system will check in delivery document, whether its relevant for IV or not. In delivery document header this status will be indicated. if IV relevant, it will check item category of the reference document & then it will check ref doc type details & finds the IV doc type, if necessary copy controls maintained between delivery & IV then data will be copied in IV invoice.
3)New pricing procedure involved for invoice IV -?
as in std, new pricing procedure will be determined.as there would be internal agreement may exist, to issue the invoice either on fixed amount or percentage basis. hence new pricing procedure with new cond types required.
4)if there is intercopmpany sales , inter copmpany stock transfer whould also involve or not necissary -?
it depends on client requirement, if the client who has transactions between company codes eg: exchange of goods, then Int.company STO has to be configure. if their agreement is to dispatch the goods to the customer whoz exist in diff comp code, then there will be only Int.comp sales.
5) AND if I am misssing any important points in inter company sales please guide me.
for more clarification & better understanding, go through SAP HELP. search in forum for the links. -
Availability check in inter company sales process
Hi,
I want know about
While creating the sales order in inter company sales process, i will select the plant of another company code. System should check the available quantity of that respective plant of another company code and should propose the available date.
Is it possible in SAP. Please guide me.
Thanks
Rajesh.dear
the availability check is done according to the quantities available and the quantities that would flow in and flow out of the storage location of a particular plant ..
in the inter-company sales scenario when you change the plant in the sales order. the system checks for the availability .
If the availability is not checked for you can click on availability icon and get it checked.
item availability could be checked for and accordingly the delivery dates could be proposed.
you don't need any special customization for that..
regards -
Requirement transfer in inter-company sales
Hi experts,
Pls help to look into the following problem.
The business senario is inter-company sales.
The requirement is that when the sales order is created, the Demand block is automatically applied on sales order and no requiement is transferred.
And afterwards, go to change the sales order to change the schedule, to fulfill the following demands:
1.Demand Block will be released.
2.Demand is transferred to PP.
3. ATP check is activated.
Pls kindly indicate what kindly of cfg needs to be made to make the business scenario fulfilled? Is there any special requirement for the customer and material?
Regards,
NadaliHi,
First of all configure your sales doc. type by copying the standard sales order and assigning a delivery block in the shipping tab of customization of sales doc. type.
for this you can go to SPRO-sales and distribution-sales-sales doc header-sales doc types.
select OR and copy it and configure your own sales doc type as per described above.
Before you remove the delivery block of the sales document type, ensure you have made a production order by t:code CO01.
provide the necessary details like material, quantity,etc
and release to production, so that an order can be made on its basis.
hope this would help.
regards,
Siddharth. -
Why Assign Organizational Units By Plant in Inter company Sales
Hi Friends,
In Inter company Sales why we assign Sales area to Delivering Plant?
1. What is the use of it in technical point of view?
2. If not then what will happen.
Kindly Regards
ArunBy assign, we mean in SAP configuration what is the sales route authorized by the company. This is a very important step of a company's set-up.
In most situation, Plant may be the same as Company code or Sales Org. In some situation, there may be 2 plants to assign to the same sales area.
Plant is a location where material stock is kept and could, for example represent a production facility in the system.
MM is primarily concerned with the material flow. From a MM point of view, a plant is, above all, a location where material stock is kept.
In production, a plant can represent a manufacturing facility.
In Sales and Distribution, a plant represents the location from which materials are distributed and services are provided and corresponds to a distribution center, The relevant stocks are kept here.
The plant has a central function in SD:
- To use the SD functions in system, you need at least one plant.
- Each plant is uniquely assiged to a company code.
- A plant can be assigned to serveral combinations of sales org/distribution channles, and vice versa.
- The plant is essential for determining the shipping point.
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