Setting Up Business Partners
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.
Setting up Intercompany Billing
After business partners are created for each ordering company and assigned to the respective sales organizations, you can then 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.Configure Intercompany Accounts Payable
To define the settings for posting accounts payable documents between company codes within a corporate group, you can use the following configuration steps:
- 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.
- 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.
Setting Up Internal Cost Rates
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.