Intercompany Sales Order Processing - Domestic (1HO)

A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group. To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B. It is imperative that both Plants A & B should contain master data records for the materials ordered by the customer. In other words, the material is created for both the Plants A and B and their respective storage locations.

Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code. Sales organizations and plants assigned to each other need not belong to the same company code. In other terms, a plant belonging to Company code A and assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company or intercompany sales.

The figure Standard Sales and Purchasing shows the data flow from transactions between companies in the case where the ordering company receives sales orders for goods that are manufactured or procured by a different but affiliated company (the supplying or delivering company). The ordering company will have to purchase, receive and pay for the goods from the supplying company. Then the ordering company will arrange for the delivery of the goods to the customer and invoice the customer for the goods supplied.

Intercompany sales scenarios allow data exchange and highly automated posting logic for business transactions between two affiliates (represented by company codes) sharing the same tenant. In this arrangement the ordering company will be linked to the supplying / delivering company that will deliver the goods to the customer. The ordering company will still invoice the customer and receive payment for the goods supplied. The supplying/delivering company will use system links to invoice the ordering company for the goods supplied to the customer. The reduction in process steps and supplied documentation is depicted in the figure Intercompany Sales and Purchasing.

In order to attain the reduced process flow steps and allow for automation of transactions between the ordering and supplying company, specific system configuration settings and master data must be created in the SAP system. This is depicted in the figure Intercompany Configuration and Master Data.

• Assign the sales organization and distribution channel applicable to intercompany sales of the ordering company to the plant of the supplying company
• Link the ordering sales area applicable to intercompany sales to the plant of the supplying company
• Create an internal Business Partner with customer roles in the supplying company code and sales area to represent the ordering company
• create a business partner with supplier roles in the ordering company code and purchasing organization to represent the supplying company code(plant)
• Create/ extend each existing material master relevant for intercompany sales so that this material is available in the supplying plant/storage location, sales organization and distribution channel
• create the intercompany price condition record of condition type PI02 with ordering sales organization, supplying plant and material as key combination

In addition to these listed system settings and master data, technical settings must be made to enable processing of an intercompany invoice via IDOC communication within the same system / client and between two company codes. This process step is triggered by an intercompany invoice (billing document and accounting document), which are posted in the Company Code representing the Supplier. The IDOC inbound processing then initiates posting an FI invoice receipt in the "receiving" Company Code representing the customer of this intercompany scenario.

To enable posting of the EDI invoice, a sales organization must be assigned to an account determination group within an EDI invoice receiving company code. Settings must be made for the combinations of receiving company code, account determination group and valuation class for posting intercompany accounts payable documents. Against these combinations, G/L accounts must be entered and country specific tax codes must be specified.

This is the process diagram for scope item 1HO, Intercompany Sales Order Processing - Domestic.

The main steps of the process are as follows:

• The Create Sales Order step confirms the intention of the customer to order goods and initiates the process.

• The Create Delivery step initiates the outbound shipping of the goods from the delivering company.

• The Post Good Issue step confirms the sending of stock of the goods to the customer.

• The Create IC Invoice step initiates the sending of the intercompany invoice via IDoc to the ordering company.

• The Create F2 Invoice step creates and sends the invoice to the customer.

• The Accounts Receivable step receives the customer payments.

• The Accounts Payable step receives the invoice from the delivering company.

• The Accounts Receivable step receives the payments from the ordering company.

The table Main SAP Fiori Apps Used, provides a list of role(s) and app(s) for every process step.

With the Manage Sales Orders app, you can search for sales orders according to your filter criteria and display them in a list.

On the list created using the Manage Sales Orders app, you can execute following actions:

• Able to search for sales orders using a free test search
• Able to search orders by entering a value in one or more filter fields
• Able to create a variant for the current filter selection and save it for later reference
• able to hide filter bar
• able to sort sales orders
• Able to hide and show columns in the list

From the list of orders, you can also navigate to related applications. For example, you can display sales order details or display the process flow. Navigating to the process flow provides you with a graphical overview of the chain of connected process steps and corresponding business documents (document flow). For example, you can see the status of a sales order, whether it is relevant for shipping, and if an invoice has been created. Following is a list of transactional features:

• Able to create sales orders
• Able to reject all items for a sales order.
• Able to set or remove header level delivery and billing block
• Able to navigate to the sales order details to either display or change data
• Able to navigate to the customer 360 view app
• Able to navigate to the sales order object page
• Able to navigate to the customer object page
• Able to navigate to the process flow

Using the Create Outbound Deliveries app, you can create outbound delivery runs from a list of sales documents. This app also allows you to display logs with information related to your sales orders or deliveries. For example, if errors occur while you are creating deliveries, the system issues a message to the log. Similarly, the system issues a message to the log if you successfully create a delivery. Following is a list of key features:

• Able to search for sales documents due for delivery using basic filter options. you can also search using additional filter options
• Able to sort table entries by ascending or descending and then select the filter option you want to sort by
• Able to personalize table columns by selecting the columns you want to display in the Sales Documents Due for Delivery table
• Able to display a log that provides information about the delivery run that you have created
• Able to create outbound deliveries from sales documents

With the Create Billing Documents app, you can create billing documents (for example, invoices and credit memos) from items in the billing due list. This includes debit memo requests, sales orders, deliveries, and other sales and distribution (SD) documents. You can also generate temporary billing documents that you can review before converting them to final billing documents.

The Create Billing Documents app provides the following view and search features:

• Search using basic filters: by document number, document category and sold-to party for all billing due list items created before and including a specific date.
• Search using additional filters; add additional filters to the filter bar and filter by sales organization, by billing type, by customer project or by billing document issue.
• Select the columns you want to display.
• Sort the displayed data by one or more data types.
• Group the data.
• Use page variants to save and load custom filter and column layouts that you have created.

When searching, you can show and hide the filter bar. You can save your filter settings and restore the original settings.

Saved layout variants also save the values that you have set in filters. You can share saved layout variants with other system users.

The Create Billing Documents app has the following transactional features:

• Display details of any SD document in the billing due list (for example, sales order, outbound delivery or credit memo request) by choosing the corresponding document number.
• You can make billing settings so that the system performs intended actions automatically when you create billing documents.
• You can select one or more items in the billing due list to create billing documents for them.
• After you have created billing documents, you can manage them using the Manage Billing Documents app.

According to the billing settings, the following actions are performed by the system when creating billing documents:

• Enter the billing date and type before billing.

  If you enable this setting and choose to create billing documents, the system requests a billing date and the required billing type before creating billing documents.

• Create separate billing document for each item of billing due list.

  If you enable this setting and choose to create billing documents, the system creates separate billing documents for each item of the billing due list that you have selected.

• Automatically post billing documents

  The system automatically posts all billing documents that you create to accounting and triggers output (for example, an invoice by e-mail). Note that if you do not choose to post billing documents automatically, you must post them manually using the Manage Billing Documents app.

• Display billing documents after creation.

  The system generates and displays temporary billing documents for the SD documents that you have selected for billing. You then have the option to save or discard them. Saving converts them to final billing documents, while discarding them returns you to the billing due list.