INTERCOMPANY BILLING & Contract

Question

Dear guru
what is mean intercompany billing & Contract? and give me the steps to config. in sd module.
regards
Mohammedrenu
[email protected]

Answer 1

INTER COMPANY BILLING
Definition:
A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group.
To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B.
It is imperative that both Plants A & B should have the material. In other words, the material is created for both the Plants A & B + their respective storage locations.
Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code.
Sales organizations and plants assigned to each other need not belong to the same company code.
In other terms, a plant belonging to Company code A & assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company sales.
PARTIES INVOLVED
1) End Customer 2) Ordering Company code 3) Supplying Company Code.
End customer:
Customer who orders goods from the ordering company code.
Ordering Company Code:
Which orders goods from Plant belonging to Supplying Company code through its sales organization and bills the end customer.
Supplying Company Code:
Supplies goods from its plant to the end customer specified by the ordering company code and bill the ordering company code.
CONFIGURATION SETTINGS
Assign Delivery Plant of the supplying company code to Sales Org + Distribution channel of the Ordering company code in the Enterprise Structure.
DEFINE ORDER TYPES FOR INTERCOMPNY BILLING:
Menu path: IMG/ SD/Billing/Intercompany Billing/Define Order Types for Intercompany billing
Assign Organizational units by Plant:
Menu Path: IMG/ SD/Billing/Intercompany Billing/Assign Organizational units by Plant.
Define Internal Customer Number By Sales Organization:
Menu Path: IMG/ SD / Billing/ Intercompany Billing/ Define Internal Customer Number By Sales Organization:
Creating / Showing Ordering Sales Organization as Internal Customer for Supplying Company code:
Transaction Code: XD01
The ordering sales organization is represented as Internal customer of Supplying company code.
We need to create customer master in Account Group - Sold to Party and maintain minimum required financial & Sales Area data.
This internal customer number has to be assigned to the ordering sales organization. Hence, the system automatically picks up this Internal customer number whenever there is Intercompany billing.
PRICING:
We need to maintain two pricing procedures RVAA01 & ICAA01. Pricing procedure RVAA01 represents condition type PR00 & any other discounts or surcharges that are meant for end customer.
We assign Pricing procedure RVAA01 to combination of Sales area (Of Ordering company code) + Customer Pricing Procedure + Document Pricing Procedure of Sales document type.
This pricing Procedure (RVAA01) is determined both at Sales Order level & Billing processing for the end customer.We maintain PR00 condition type to represent the ordering company code's price to the end customer.
Condition records for PR00 are maintained using organizational elements of Ordering company code, end customer & the Material.
Eg: Sales Org. of Ordering company code + End customer + Material.
We also need to maintain PI01 condition type to represent costs to Ordering company code (in other words revenue to supplying company code). It is statistical condition type & meant for information purpose only.
Condition records for PI01 are created with the following key combination:
Ordering sales Org + Supplying Plant + Material
Pricing Procedure ICAA01is determined at Intercompany billing processing level.
Pricing Procedure ICAA01 - Pricing Procedure for Inter company billing is assigned to the combination of:Sales Area (of supplying company code) + Document pricing Procedure of Billing document type IV + Customer Pricing Procedure of the Internal customer.
Pricing Procedure ICAA01 has condition type IV01 that represents revenues for Supplying company code in the intercompany billing.
PR00 condition type also appears in Intercompany billing document. It is for information purposes only and does not have bearing on the value of the document.
PI01 represented under pricing procedure RVAA01 is reference condition type for IV01 and the same is defined in the condition type IV01. Due to this these two condition types represent same value.
The condition type IV01 in intercompany billing document represents revenue to the Supplying Company. But its corresponding condition type PI01 in the billing document to the end customer is shown as a statistical item meant for information purposes.
Condition Type VPRS in the intercompany-billing document indicates cost to the supplying company code.
The use of two different condition types in Intercompany billing is necessary to ensure that data is transmitted correctly to the financial statement (Component CO-PA).
ILLUSTRATION:
STEP 1: Create Sales Order
Manually Enter the Delivery Plant of the Supplying Company Code:
OBSERVE CONDITIONS SCREEN FOR ITEM:
PR00 represents Price to the end customer (in other words, revenue for the ordering company).
PI01 represents cost to ordering company (in other words, revenue for the supplying company). It is represented as statistical item only.
DELIVERY:
Delivery is carried out from the supplying point & hence we can observe that it is done from shipping point assigned to the supplying point.
Subsequently, Picking & PGI are carried out.
BILLING TO END CUSTOMER:
T-Code: VF01
Create Intercompany Billing:
T-code: VF01
OBSERVE THE CONDITIONS SCREEN OF THE INTERNAL INVOICE:
IV01 Condition type represents revenue for the supplying company code.
VPRS condition type represents cost to the supplying company code.
PR00 in intercompany billing document displays amount billed to the end customer. It serves as just an information item and is inactive.
If the ordering company enters the incoming invoice manually, the delivering company can print out an invoice document with the help of output type RD00, which is then sent to the Payer.
If automatic invoice receipt has been agreed, we must use the SD output control functions to ensure that output type RD04 is found in internal billing. In R/3 system, output determination procedure V40000, which includes this output type, is assigned to Intercompany billing type IV.
The automatic posting to the vendor account is initiated when output type RD04 is processed. The system uses the EDI output type INVOIC in the FI variant.
To ensure that payables are posted in financial accounts of the ordering company, the delivery company must be created as a vendor.
<b>Contracts</b>
Follow the links
http://help.sap.com/saphelp_47x200/helpdata/en/06/57683801b5c412e10000009b38f842/frameset.htm
Master Contract:
The master contract is a document under which you can group contracts as lower level contracts. It contains the general terms which apply for all the lower level contracts over a specified period.
Use
You group contracts as lower level contracts under a master contract to ensure that
The terms in the master contract are granted in all the lower level contracts
The data in all lower level contracts remains consistent
You can group the following documents under a master contract:
Quantity contracts
Value contracts
Service contracts
The link between the master and lower level contracts is controlled by the referencing procedure which is assigned to the master contract type in Customizing. The referencing procedure determines which data is copied from the master contract into the lower level contracts
Structure
A master contract contains header data only. In the master contract, you can record:
Business data
Partner data
Contract data
Billing plan data
On the overview screen of the master contract, there is a list of all the lower level contracts which refer to it. You can branch from this list into the individual contracts.
Master Contract: The master contract is a document under which you can group contracts as lower level contracts. It contains the general terms which apply for all the lower level contracts over a specified period.
Check these links on Master Contract
http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fd0d545a11d1a7020000e829fd11/frameset.htm
http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fd34545a11d1a7020000e829fd11/content.htm
http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fd27545a11d1a7020000e829fd11/content.htm
Details about contracts:
Lets take standard CQ contract type:
First maintain customer - material info record in VD51 T-code
Secondly maintain pricing for customer / material or only material combination in VK31 / VK11 T-code
Then use VA41 T-code to create a contract
VA42 to change contract
VA43 to display / view contract
In VA41, enter the document type CQ, followed by the sales area details,
Enter Sold to party.
Enter PO number
Enter PO Date
Enter Validitiy from Date
Enter Validity to Date
Enter Material
Enter Quantity say 999,999,999 or any other higher quantity as it is referred again and again
Hit Enter.
Save.
For further info refer below
: CONTRACTS
Contracts
Reward if Helpful...
Regards,
Praveen Kumar D