Introducing SAP S/4HANA Cloud Public Edition, Professional Services

Configuring Customer Project Management

Managing Resources across Customer and Internal Projects

Exploring Time Recording

Completing Project Billing for Professional Services

Understanding Sales Order Processing in Professional Services

Understanding Professional Services Event-Based Revenue Recognition

Identifying Internal Projects for Professional Services

Understanding Service and Material Procurement for Professional Services Projects

Understanding Intercompany Processes for Professional Services

Understanding Prerequisites and Configuration for Intercompany Billing for Cross- Company Cost Accounting Postings

Objective

After completing this lesson, you will be able to complete prerequisites for intercompany billing.

Prerequisites

Setting Up Business Partners

App: Maintain Business Partner

For intercompany billing purposes, a customer number must be assigned to each sales organization in the configuration step Sales Organizations. By doing so, you are identifying the sales organization as an internal customer that can be billed by other companies in the same corporate group.

To be able to assign a customer number to the sales organization, you first need to create a business partner for all company codes (ordering companies) involved in intercompany business, including the required business partner roles needed for Financial Accounting and Purchasing, as well as sales area data.

Business partners 10401010 representing company code 1010 (Germany) and 17401710 representing company code 1710 (USA) must be set up as a prerequisite for the intercompany setup between them.

SAP Display Organization interface for Configuration Step: Sales Organizations

SAP Display Organization interface for Configuration Step: Sales Organizations (Customer Number for Intercompany Billing)

Setting Up Internal Cost Rates

App: Manage Cost Rates - Services

With the Manage Cost Rates - Professional Services app, you can define internal cost rates for activity allocations to projects. This app enables you to set cost rates based not just on cost centers and activity types but also on a variety of other criteria, such as service cost levels and individual employees.

For intercompany activity allocations, only cost rates marked as ICO rates are used. Rates with a receiving company, that is the company for which the service is provided (ordering company), take priority over rates with no receiving company. Intercompany cost rates can be maintained in the currency of the ordering company, which enables this company to be charged at a fixed rate independently of currency fluctuations.

SAP Manage Cost Rates Interface highlighting Receiving Company data.

Configuration

Configuration Summary

Intercompany Billing - Configuration Summary Table

SSCUI ID	Name	Description
106898	New Resource Related Intercompany Billing activation	Activate the new intercompany billing functionality (since 2502) in the required tenants. The old intercompany process can still be run in parallel in a different tenant if required. All net new customers or customers not previously using intercompany (scope items 4AN and 16T) will only have the possibility of using the new functionality.
105970	Maintain Sales Organizations	Maintain internal customer numbers for sales organizations.
100424	Configure Intercompany Billing Communication	During an intercompany sales process, the supplying company generates an intercompany invoice made out to the ordering company. You can use this app to generate the SAP Electronic Data Interchange (EDI) configuration that the system uses to post this invoice to the ordering company code. From the perspective of the supplying company, the intercompany invoice is a customer invoice. From the perspective of the ordering company, it is a supplier invoice. The system uses IDocs to automatically generate the corresponding payables in the ordering company's accounts.
102455	Define account determination groups	Account determination groups define the settings for posting intercompany accounts payable documents. For an ordering company code, define which account determination group should be used when the products or services are issued from a certain supplying sales organization. This determination is required for EDI invoice receiving company codes.
102462	Make Settings for Posting	For each combination of receiving company code with account determination group, make the relevant settings for posting, such as the tax code for tax-exempt transactions and the invoice document type. This is required for EDI invoice process.
102463	Assign G/L Accounts	Assign the G/L account for posting expenses in different scenarios. Different combinations of receiving company code, account determination group, valuation class, surcharge or discount, and condition type constitute different scenarios. The more values a scenario includes, the more specific it is. If there are multiple scenarios for the same receiving company code, a more specific scenario overrides a more generic one. Assign G/L accounts to the Accounts Posting document for EDI invoice
102464	Assign Tax Codes	Assign a tax code for the receiving company code for each combination of tax supplying country/region, tax code, and ordering country/region. Assign tax code for EDI invoice process. Contact a tax expert to determine the right codes.
103637	Maintain Billing Profile	Material determination for billing. Billing profile for intercompany allows custom-defined selection of billing materials.
107061	Activate Profit Center Derivation Based On Intercompany Sales Order Item	The Profit Center value is derived for every posting during the preparation of Billing Document Request (RICR) in New Resource Related Intercompany Billing. By default, Profit Center derivation is based on the partner object of the posting. Using this configuration, you can enable this Profit Center derivation based on the intercompany sales order item
App	App Output Parameter Determination	Set allowed channels for billing document.

Activate the New Intercompany Billing (2502)

Previously, activation of new resource-related intercompany billing was only possible via feature toggle, now activation is done through SSCUI 106898.

This helps to run separate solutions in different tenants allowing customer to continue using the old solution and start using the new one.

A process diagram shows the main steps for activation of the new intercompany billing: Step 1- The new billing can be activated via SSCUI in the Manage Your Solution application; Step 2: Maintain material determination configuration via SSCUI; Step 3: Trigger billing on existing intercompany cost allocations by running the Generate Intercompany billing request application using the existing intercompany sales order.

After the new intercompany functionality is activated, it cannot be deactivated back.

Maintain Sales Organizations

The business partners created in prerequisites are assigned to sales organizations in this configuration step.

SAP Maintain Sales Organizations: Change Details displaying Sales Organization information for 1710 Dom.Sales Org US

Configure Intercompany Billing Communication

You can now use configuration step Configure Intercompany Billing Communication to enable intercompany billing between companies.

During an intercompany sales process, the supplying (or delivering) company generates an intercompany invoice made out to the ordering company. You can use Configure Intercompany Billing Communication to generate the SAP Electronic Data Interchange (EDI) configuration that the system uses to post this invoice to the ordering company code.

For example, delivering company 1710 (United States) invoices ordering company 1010 (Germany). From the perspective of the delivering company 1710 (United States), the intercompany invoice is a customer invoice. From the perspective of the ordering company 1010 (Germany), it is a supplier invoice. The system uses IDocs to automatically generate the corresponding payables in the ordering company's accounts.

SAP Configure Intercompany Billing Communication interface displaying billing assignment-1010.

SAP Configure Intercompany Billing Communication interface displaying billing assignment-1710.

Configure Intercompany Accounts Payable

The following configuration steps can be setup to define accounts payable documents between company codes within a corporate group.

Define Account Determination Groups

In this configuration step, you can create account determination groups and specify their descriptions.

Assign Sales Organizations

In this configuration step, you can assign sales organizations to the ordering company codes and maintain account determination groups.

Make Settings for Posting

In this configuration step, you can make settings for posting intercompany accounts payable documents.

SAP Make Settings for Posting: Change: Details interface. company 1710.

Assign G/L Accounts

In this configuration step, you can assign G/L accounts for posting expenses.

Assign Tax Codes

In this configuration step, you can assign tax codes for ordering company codes.

Maintain Billing Profile

A new billing profile for intercompany has been included in configuration to allow companies to define their billing materials as per their requirements.

Use the following fields to define the material determination criteria:

Activity type
G/L account Number
Material Number

Activate Profit Center Derivation Based On Intercompany Sales Order Item

If this option is activated, the profit center for the intercompany transactions is derived from the intercompany sales order item instead of the partner object of the posting (default).

Output Parameter Determination

Application: Output Parameter Determination

In this application, set the allowed channels for billing documents.

SAP Output Parameter Determination interface displaying Select Business Rules, Maintain Business Rules, and Table of Contents.

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