Intercompany Process
This solution process focus on the advanced intercompany process, that means the store and the distribution center operate in differentcompany codes: The distribution center is located in Sweden and delivers a store in the US.
Additionally, there are the (external) business partners: suppliers for merchandise procurement, and customers (wholesale, re-sellers,..), and consumers on the sales side.
The solution processes shown in the figure above, Process Overview: Store Ordering from Distribution Center, represent the overall retail store replenishment process with the intent of regularly filling up the stocks in a store via shipments from the distribution center (DC). The process starts with the Store Connectivity - Inbound (3HV) solution process, where transactions (e.g. sales data etc.) are regularly transferred to the central SAP Retail system. Usually the sales transaction took place in a point-of-sales (POS) system or via a solution where all transactions are collected, audited, and aggregated (e.g. in SAP Omnichannel Sales Transfer and Audit).
The next process step is the Store Connectivity - Outbound (3I2) solution process, which covers the download of e.g. master data and prices back to the point-of-sale (POS) system of the store. With the updated inventory figures in the central SAP Retail system, the store replenishment function is able to calculate the actual demand, which leads to the creation of purchase requisitions. This is covered in the Replenishment Planning for Stores (3I7) solution process. This overall process focuses on the logistics from the DC as the supplying site. Which means, the next processes, which will added at a later stage, are the Outbound Logistics for Distribution Centers (5FV) solution processes and the Store Ordering from Distribution Center (5FX).
The process step Outbound Logistics for Distribution Centers (5FV)focuses on the output control and the processing of Handling Units for Outbound Deliveries.
In the last process step Store Ordering from Distribution Center (5FX) the procurement document is created in the form of a stock transfer order or stock transport order depending on.store and distribution center operate in the same or different company code (advanced intercompany process). This solution process focuses on different company codes.
Each solution process represents a lesson in this unit, and can be completed individually.
This lesson covers the solution process Replenishment Planning for Stores (3I7).
In the retail industry, specific terms differ from the standard terms used in other lines of business. The following terms are used synonymously in this document:
| Standard Terms in Lines of Business | SAP S/4HANA Cloud for Retail, Fashion, and Vertical Business |
|---|---|
| Material, Product | Article |
| Material group, Product group | Merchandise category |
| Plant, Location | Site |
The basis for procurement of merchandise for a store from a distribution center which belong to a different company code is a stock transport order (STO) with a certain order type (here IC SIT STO). In this case the functionality store replenishment won't be used; instead this stock transport order will be created manually in the receiving company (in this example US Retailer Inc.
When creating a stock transport order for the intercompany process, automatically an intercompany sales order is created in the background in the delivering company, here the SE Retailer Inc. In this sales order the contractual agreements are stored.
Goods Issue Processing
The outbound delivery document is the central document in shipping. It forms the basis for further shipping activities such as picking, packing, and goods issue posting.
After creating outbound delivery documents (normally for stock transport orders or sales orders), you can group them together in wave picks (work packages for the goods issue processes that have to be processed during a specified time interval), if necessary. This can be done for example to map the shift plan of the warehouse. The outbound deliveries have to be picked, and can also be packed. Finally, they are ready for goods issue posting.
All process steps of the intercompany process can be monitored in the Monitor Value Chains app.
You use the Monitor Value Chains app to track all relevant steps of the Advanced Intercompany Sales, Advanced Intercompany Stock Transfer, and Sell from Stock with Valuated Stock in Transit (VSiT) business processes. This app provides you with a detailed overview of all relevant steps and documents in these processes. In addition, it directly integrates these processes with other business applications. The business benefits are increased transparency, efficiency, and cross-team collaboration.
In the Document tab, the documents, their IDs, the document processing stage and their process step are displayed. Additionally, you can cancel or reprocess a business document manually in case of errors.
In the Process Flow tab, all involved documents of the Advanced Intercompany process are displayed in a flowchart.
The goods issue for the outbound delivery posts the transfer from unrestricted physical stock into stock in transit (SIT), documenting that goods have left the plant.
'Stock in transit' refers to those goods that have left the physical plant, but the control of them isn’t transferred to the buyer at the same time. These goods are still in the control of the company that ships the goods and are still part of the valuated stock of that company.
The inbound delivery is automatically created and controls the physical goods flow into the receiving plant. When goods receipt is posted via the inbound delivery, the stock becomes unrestricted-use stock.
In the Process Flow tab the created and generated documents are displayed and their relationship to each other:
One material document has been generated for the process step: Goods Issue posting for Outbound Delivery (OD) into Stock in Transit (SIT); it refers to the outbound delivery.
A further material document has been generated for the process step: SIT managed by the delivering company and SIT managed by the receiving company (Inventory at the receiving company supports material valuation (GIIV). This material document refers to previous one.
A further material document has been generated for the process step: Transfer of Goods from stock in transit (SIT) of the receiving company to the unrestricted physical stock of the receiving company => Goods Receipt posting into unrestricted physical stock; this material document refers to the material document for GIIV.
A further material document has been generated for the process step: The goods receipt (GR) from the receiving company's valuated stock in transit (SIT) into unrestricted stock in the receiving company, it refers to the inbound delivery.
Summary
The key process flows covered in the tutorials for this process are to:
- Create Purchase Order - Advanced
- Monitor Value Chains
- My Purchase Orders - Due for Delivery
- Change Outbound Delivery
- Change Inbound Delivery
- Create Billing Document
