Intercompany Netting and Settlement process

Hi Guys,
I am new to the intercompany transactions. Please anyone of you can explain or guide me to some documentation on what intercompany netting and settlement process means and how to do it...that would be great.
Thanks and Regards,
MS

Hello,
If you can let us know the business scenario and context in which you are asking, it would be better for us to explain in more detail.
However, you can go through the following just for your clarification.
You can post the cross company code postings even between two controlling areas. The system does not prevent to post documents between two company codes in two controlling area. Need not necessarily they should be under one operating concern. Provided you have to make sure that you have followed the following points:
In OBY6 - To company codes must be assigned to same Company, meaning that you mus thave created a Company and that company must have been assigned to these two company codes.
OBYA - You should maintain the clearing accounts in both the company codes. Meaning that you are posting one leg in one company code and the other leg in the other company. Therefore, it is required to have the missing legs in each company code.
Company Code1 - Posting Key 40 - Clearing Account
Company Code1 - Posting Key 50 - Clearing Account
Company Code2 - Positng Key 40 - Clearing Account
Company Code2 - Posting Key 50 - Clearing Account
OB08 - In case if the two company codes have different local (company code) currencies, you may maintain the exchange rates.
You can now go to F-02 and post a cross company code transaction giving the first leg in first company code and the second leg in second company code. Missing leg in the first company code will be posted to the GL Account mentioned in OBYA and the missing leg in the second company code will be posted to the GL Account mentioned in OBYA. That means you will have four line items overall.
The system will post three document.
Document 1 in First Company Code
Document 2 in Second Company Code
and
Document3 - Cross Company Code Document.
The cross company code document consists of the first company code document number plus company code plus last two digits of the fiscal year.
Hope this must have clarified your doubts.
Please let me know in case if you need further details.
Thanks,
Ravi

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HI Garima ,
Plz check the following steps
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
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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.
In the above mention configuration steps you are missing the second step in your confirguration 1.e the reason your getting that error
Best regards
Venkat

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Hi All,
We have some production order WIP calculation and settlement issue or May be Iu2019m not understating WIP calculation and settlement process.
I will explain my issue with an example.
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Hi,
Thanks for your reply.
In OKGA-->update of WIP Calculation and Result Analysis transaction,we have assigned secondary cost elements(931XXXXX) to Controlling area, Version,RA key and Line Id to "K" and here we have WIP and Reserves.
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Hi Waman,
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Is there any approval process for capturing shipping cost and settlement (Using t codes VL31N,vt01n &VI01)?
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We are a utility without PP module. We use CO Production Order to accumulate costs of assembling components (parts and labor) into a material number that we receipt into inventory. We have questions about month end closing process and the settlement of these CO Production Orders when receipts are not complete or labor is not completely entered at month end.
Basically we need to know how other non-manufacturing companies handle the settlement process.

Hi,
The Month end Activities are as follows
Clearing the open items of vendor, customer
Clearing the suspense account regularly
All the Expenses Including the prepaid expenses have to be booked..
Intercompany Balances Should be Zero
Depreciation Run.
Recuring Entries.
Park documents to be posted(FBVO)
Accural and referal in any differneces.
GR/IR Clearing Transaction (Tcode-F.13)
Bank Reconciliation(Comparing the Company Books and Bank Statements)
Exchange rate to be updated
Revaluation of foreign currencyopen items(F.05)
Order Settlements.
Distribution Cycle
Assesment Cycle(KSU5)
Transfer the Inventory to Profit center(1KEH)
Match GL and PCA(KE5T)
MM period Close and Open (Tcode MMVP)
FI Period Open(Tcode OB52).
CO period Closing
Year End Process
All the Month end Activities should be Carried Out.
Balance Carried Forwarded to next year(F.16)
PCA Balance Carried Forward(2KES).
Carry forward the Vendor,Customer and Asset Balances
(Unless Dep is posted for all the months the assets can not be Closed)
Copy the No Ranges to new year
Open the Next year period(OB52)
I Hope this is Helpful,
Assign the Points.
Regards,
Padma

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Target Cost in the settled process order become zero after cost deletion

Dear all,
User has standard cost estimates created in Jan 2010 that valid until the end of 2010 for every material in the system. user created a process order in April 2010. Target cost of the order was created based on the standard cost estimate and recipes as well as order qty. The order was also confirmed and settled in April 2010 without problem.
However, after I deleted all old costing estimates before I did a costing run for all materials in May 2010, the old order was resettled and all Target cost is removed from the order. I guess system try to look at April costing estimate but it is not there since it was deleted before I created the new costing estimate in May. Therefore, all varainces are throwed into remaining variances since the target cost become zero.
Other than mark the settled order for deletion or keep all old costing estimates, I am just wondering is anyway in the configuration to prevent the system to recaculate the target cost again for the settlement so I can avoid the problem happens?
Thanks.

Hi,
Target costs are only calculated after goods movements have occured on the order, the Target Costs are then calculated during the Variance calculation.
Target costs will only be calculated after the first goods receipt has been posted to the order. Also you have to ensure that the information to calculate target costs exists on the system in particular in OKV6.
This estimation is based on the customizing for the Target cost version in transaction OKV6 as in turn will the "real" calculation of the Target costs via the variance calculation.
So in OKV6 the Target cost will be based on preliminary costing on the order, an alternative cost estimate or the current standard cost estimate. Importantly if the choosen option is not fulfilled e.g. no current standard cost estimate, the target costs will not be predicted or calculated.
regards
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ME59N - Intercompany Third party subcontracting Process

Hi Experts,
In Intercompany third party subcontracting process, PR is created from the sales order. PR has the account assignment category X and Item Category L.
Fixed source of supply exists. Subcontracting Info record has been created.
Material components icon has been deactivated as it is generating from Sales order.
While using ME59N, it throws Requisition could not be converted. One of our collegues told that if the subcontracting item has been automatically generated from SD Module, then ME59N will not convert the PR to PO.
Please let me know if there are any settings needs to be done. Or standard ME59N will not convert the above scenario.
by
Prabhu

There is no restrication that Automatic PO will not be created if the PR is created from the Sales Order.
Please elobarate on the exact error you are getting.
However please follow & check if these general settings are in place.
1.Material has the auto PO checked in Material Master.
2. Vendor has the Auto PO checked in Vendor Master.
3.Source list is maintained if material master has source list checked.
4.Valid conditions exist in the Sub Contracting info record.
5.Right variant ex - doctype,Plant etc exist or are entered in ME59N.

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

WIP&Settlement Process order

Hi,
We calculate WIP weekly basis and WIP used to credited to a Balance sheet acct and DR to a P&L acct (which is generally NOT a Cost Element )
Here our Doubt,
WIP was calculating irrespective of Settlement that is we used to see the Doucument (DR and CR ).and can be verified to FS10N,but now some thing went wrong (I checked OKGA and OKG8 they have proper BS and P&L accts) and after calculating WIP the documents are not posted and FS10N shows nothing for that BS and P&L acct.
1)Can we calculate WIP without settling order (DLV or TECO) and get FI documnet posted ? which we used to get I believe,
2) what is wrong with our system where we got FI documnets for WIP previously and not getting Now even though we have same BS and P&l accounts in OKG8 ?
your help greatly appreciated,
Regards,
Nikitha

Thank you Suryanaraya,
YES we calculate WIP on weekly Basis, But Financial statement analysis on Monthly Basis,
Your answer is convincing, But My user is adamant (in fact he shows the previous documnets posted for WIP) . so can you clarify, for example I calculated WIP (Lets say ,for this month) 2/11,2/14,2/21,2/28 ;;;;;; and , -$100,-$80,-$60,$40 for my Balance sheet ,Respectively , which shows $0.00 for that Process order as WIP, and we are done totally at the month end ,so you mean to say I will get 4 documents on Month end (Feb 28) as Document Date 2/11,2/14,2/21,2/28 and Posting Date 2/28 for all 4 when I run Settlement?
OR can I do weekly WIP and Settle order ? to see WIP documnets?
Please clarify,
Excuse my ignorance,
Nikitha

Order Settlement Process in Discrete/Project

Hi,
a)I would like to know the Production Order Settlement Process in Discrete Industries and for a Production Order with respect to a Project.
B) What configuration steps are required to do the Production Order Settlement?
c) I have completed Confirmation of the Production Order and "Delivery Completed" indicator is marked in Goods Receipt Tab of the PRoduction Order.
Can anyone tell me the steps to be followed one by one to do the Production Order Settlement.
d) From where we can check whether Production ORder Settlement Rule is created or not?. What configuration steps are required to create this rule for a Production order and what steps are to be performed after this rule is created.
Appreciate if someone provide me inputs to my above queries.
Thanks in advance for your support.

Hi,
Find the answers for your questions..
a)I would like to know the Production Order Settlement Process in Discrete Industries and for a Production Order with respect to a Project.
After all PP activities are done production order techo is done... then controlling people will do following activities..
Variance calculation - KKS2
Settlement - KO88
B) What configuration steps are required to do the Production Order Settlement?
For this lot of configuration is required from controlling module..check with FI/CO consultant on this..from PP side they will give settlement profile..you need to maintain this in order type configuration on OPJH
c) I have completed Confirmation of the Production Order and "Delivery Completed" indicator is marked in Goods Receipt Tab of the PRoduction Order.
Can anyone tell me the steps to be followed one by one to do the Production Order Settlement.
you need to change the status of the order to TECO then inform controlling they will do following activities...
Variance calculation - KKS2
Settlement - KO88
d) From where we can check whether Production ORder Settlement Rule is created or not?. What configuration steps are required to create this rule for a Production order and what steps are to be performed after this rule is created.
in the order header status you can see settlement rule is created or not. It will have the status SETC. Settlement rule is created during order creation stage only..no separate configuration required for this..
Hope this helps...
Thanks
Kumar

Intercompany invoice and payment

Hi,
Please anybody have FI Configuration information on
1.intercompany clearings.
2.How to configure intercompany transactions
3.how to post intercompany invoice and payments.
Any docs is greatly helpful.Marks will be awarded
Thanks in advance
cra

Hai cra,
1. Inter company transactions are configured at OBYA where u wud define posting key and G/L accounts for inter-co receivables and payables.
2. Inter company entries can be processed through fb50 by selecting the company code in the line item.
3. You can change inter company transactions using FBU2.
4.You can reverse inter co transn using tcode FBU8.
5. You can display inter co transn using tcode FBU3
6. Clearing procedure is same as any other document.
<b>Assign points if useful.</b>
Regards,
Smruti

Intercompany sales and stock transfer enhancement at billing level

Dear Gurus ,
Business requirement is to process intercompany sales and stock transfer for both divisions PB & RB, but in standard SAP we can assign only one division in the configuration. So need development to determine division on the basis of material division and not from configuration.
What is the ehancement we can use for the same ? To determine division from the material master at the time of intercompany invoice .
Note : We are not using common division concept .....here.
Looking for your inputs ....
Thanks and regards
Venkat

HI Garima ,
Plz check the following steps
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.
In the above mention configuration steps you are missing the second step in your confirguration 1.e the reason your getting that error
Best regards
Venkat

Fund management configuration and business process document

hi,
Can anyone provide me fund management configuration and business process document
Mahendra M

Hi,
maybe this document will help you more:
http://perlhosting.net/download/968192356.html
SAP78V

Intercompany Netting and Settlement process

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