Understanding Prerequisites and configuration for Intercompany Billing for Cross- Company Cost Accounting Postings
Objectives
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 setup as a prerequisite for the intercompany setup between them.
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.
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 a 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.
App
Output Parameter Determination
Set allowed channels for billing document
Maintain Sales Organizations
The business partners created in prerequisites are assigned to sales organizations in this configuration step.
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.
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.
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
Output Parameter Determination
Application: Output Parameter Determination
In this application, set the allowed channels for billing documents.
