Note 308989 - Consultant note for cross-company transactions

Symptom General information

1. In section I, you find an overview of the process flow and functions in the standard system to answer general questions on cross-company transactions/cross-company processing and intercompany billing. 2. Section II specifies the Customizing settings and required master data for the cross-company code sales with deliveryrelated intercompany billing by means of a sample process.
Other terms

Intercompany billing, cross-company, cross-company code sales, crosscompany code stock transfer
Reason and Prerequisites

Advice is required. Program errors occur.

Solution I. Process overview

A characteristic of the cross-company code sales is that the sales organization in which the sales order is created and the delivering plant are assigned to different company codes and as a result, a revenue/cost allocation is required. DeliveryI.1 Delivery-related cross company process I.1.1 Sales order - delivery - customer billing document - intercompany billing document (CROSS-COMPANY CODE SALES) Relevancy for billing (TVAP-FKREL) = A EXAMPLE: The customer orders from sales organization 0001 (selling company code 0001), the goods are delivered from plant LY02 (company code of the delivering plant LY02). The delivery occurs in the shipping point specified in the sales order which is assigned to the delivering plant. The customer billing document (delivery-related) is created by sales organization 0001, the intercompany billing document (deliveryrelated) is created by the sales organization of the delivering company code and issued to the selling company code. So that sales organization 0001 can sell goods delivered by plant LY02, delivering plant LY02 has to be assigned to sales organization 0001. Here, plant LY02 can be assigned to several sales organizations since the relationship sales organization : plant is a 1 : n relationship. It is possible that the sales organization of the delivering company code (for example, LY01) belongs to a different company code than the delivering plant LY02 that is, there is one sales organization of the delivering company code via which the intercompany billing occurs, the delivering plants themselves belong to different company codes. For this, also consider Note 99641. Restriction: the statistics update and the business area determination for the business area (that is, with the "original"

organizational data and not with the data of sales area IV which enables a grouping of several materials from plants from several company codes in a delivery) are only possible by means of a workaround. With the dependency on the distribution channel, you can further differentiate the plants of a sales organization.

I.1.2 Sales order - delivery - intercompany billing document - customer billing document You can only create the intercompany billing document before the customer billing document using Transaction VF01 (Create billing document) and the specification of billing type "Intercompany billing". You can only bill via the billing due list (Transactions VF04 and VF06) if Note 38501 is implemented in your system.

I.1.3 Purchase order - replenishment delivery - intercompany billing document (CROSS-COMPANY CODE STOCK TRANFER, STOCK TRANSPORT ORDER) Relevancy for billing (TVAP-FKREL) = D A plant procures material from the stocks of a different plant which belongs to a different company code. Note 109254 contains the relevant Customizing settings.

I.1.4 Intercompany billing document - internal credit memo (CANCELLATION) The document types of intercompany billing are not cancelled using the usual document type "S1" but: - IV with IVS - IG with IGS

I.1.5 Returns request (IR) - returns delivery - customers credit memo intercompany credit memo (IG) (RETURNS) The customer credit memo is created for the returns request and the intercompany credit memo is created for the returns delivery. I.2 ORDER-RELATED CROSS COMPANY PROCESS ORDERPROCESS Sales order - customer billing document - intercompany billing document Relevancy for billing (TVAP-FKREL) = B Currently, this process is not implemented in the standard system. However, you have the option to implement this request by means of a modification. For this, see Note 63459. Further relevant notes: 157881, 84800, 207021, 206408, 172733, 202377, 203876, 137953, 207570, 209212, 211532. Consider that this note will NOT deal with this process in the following text. ORDERCROSSTHIRDI.3 ORDER-RELATED CROSS-COMPANY PROCESS FOR THIRD-PARTY BUSINESS TRANSACTIONS

Sales order - purchase order - invoice Relevancy for billing (TVAP-FKREL) = F The vendor who delivers the sales order is assigned to a sales organization which works in a different company code than the sales organization which received the sales order. You can also only implement this process by means of the modification solution of Note 63459. Consider that this note will NOT deal with this process in the following text. ***********************************************************************
II. DETAILS ON THE CROSS-COMPANY CODE SALES WITH DELIVERY-RELATED INTERCOMPANY BILLING II.1 SAMPLE PROCESS:

Customer 11 orders a material from sales organization 0001 in company code 0001. The goods are delivered by plant LY02. VBAK-VKORG VBAK-VTWEG VBAK-SPART VBAK-KUNNR VBAP-WERKS 0001 01 01 11 LY02

In the delivery, the fields for the intercompany billing are filled. Rule: is the intercompany billing configured completely, the system fills all fields listed below. If the configuration is incorrect, the system does not fill any (!) field. LIKP-VKORG LIKP-KUNNR LIKP-VKOIV LIKP-VTWIV LIKP-SPAIV LIKP-KUNIV LIKP-FKDIV LIPS-VTWEG LIPS-SPART LIPS-WERKS 0001 11 LY01 !! L1 !! L1 !! 22 !! dd.mm.yyyy 01 01 LY02

In status tables VBUK (header status) and VBUP (item status), the system sets the billing totals status and intercompany billing respectively. VBUK-FKIVK VBUP-FKIVP A A

After the goods are delivered, you can create the customer billing document (external billing document) for customer 11. The overall processing status VBUK-GBSTK of the delivery remains "B" (In process) after the customer billing document since the intercompany billing document has not been created. VBRK-VKORG VBRK-VTWEG VBRK-BUKRS VBRK-KUNAG VBRK-SPART VBRP-WERKS 0001 01 0001 11 01 LY02

To settle the costs and revenues, you create the intercompany billing document in the company code of delivering plant GB02 and issue it to internal customer 22. Internal customer 22 represents selling sales organization 0001 and is created for sales organization LY01 in the company code of delivering plant GB02. VBRK-VKORG VBRK-VTWEG VBRK-BUKRS VBRK-KUNAG VBRK-SPART VBRP-WERKS LY01 L1 GB02 22 L1 LY02

If you create the intercompany billing document, the system updates the status. VBUK-FKIVK VBUK-GBSTK VBUP-FKIVP VBUP-GBSTA C C C C

SHORT: Delivering Company Sales Distribution

Selling organizational data organizational data code Company code GB02 0001 0001 01

Sales organization organization LY01 channel 01 LY02 Customer customer 22 Distribution channel L1 Division Division Plant

L1 LY02 11 Plant Internal

II.2 CUSTOMIZING FOR THE SAMPLE PROCESS: II.2.1 Enterprise structure Plant - Allocate company code: Transaction OX18 Company code 0001 GB02 Plant 0001 LY02

Sales organizations -> company code: Transaction OVX3 Company code 0001 GB01 GB02 Sales organization 0001 LY01 LY02

Plants -> sales organization/distribution channel: Transaction OVX6 Sales organization/distribution channel 0001 / 01 Plant 0001 LY02

LY01 / L1

LY01 LY02

For this, compare the table entries of Transaction OVV9. Both table entries have to be maintained! Sales organization -> assign internal customer number: Transaction OVX5 Sales organization 0001 Transaction OVVA. Customer numberIV 22

This table entry is identical with the entry in

II.2.2 Sales and distribution/billing/intercompany billing Define order types for intercompany billing: Transaction OVV8

Dependingon the order types used, the corresponding billing document types for intercompany billing are maintained here. Assign organizational units per plant: Transaction OVV9 Plant Division IB LY02 L1 Note: For IS-R, these assignments have to be defined in plan maintenance (Transaction WB01 or WB02) directly. Define internal customer number per sales organization: Transaction OVVA Sales organization 0001 V/40 If you do not want to post the invoice receipt to accounting manually but directly by means of SAP-EDI, you have to maintain the settings according to the documentation. You find more explanations in Notes 137686 and 31126. Problem messages for this are Customer IB 22 Sales organization IB LY01 Distribution L1

channel IB

Automatic posting to vendor account with SAP-EDI: Transaction VOFC; Transaction WEL1; Transaction

edited under the component SD-EDI. II.3 MASTER DATA FOR THE SAMPLE PROCESS: Create master data of customer 11 in the selling sales organization: Transaction XD01 Customer Company code Sales organization Distribution channel Division 11 0001 0001 01 01

Create customer master record of internal customer 22 in the sales organization of the delivering company code (Sales and Distribution segment): Transaction XD01 Important: the customer master record has to be created with the account group of the sold-to party completely. Customer Sales organization Distribution channel Division 22 LY01 L1 L1

The Accounting segment of the customer master of the internal customer has to be created in the company code of the delivering plant so that the intercompany billing document can be transferred to Accounting. Customer Company code 22 GB02

Create material master record in the sales organization of the selling and of the delivering company code: Transaction MM01 Material Plant Sales organization Distribution channel LY02 0001 01 and LY02 LY01 L1

Condition master record PI01 or IV01 (quantity-dependent) / PI02 or IV02 (percentage) Create: Transaction VK11

Sales organization order 0001

Plant LY02

Material PUMP

The corresponding condition type is included in the pricing procedure used with requirement 22. Remark on pricing:

Condition type PI01/PI02 (condition category = I) is indicated as a statistical condition in the sales order/customer billing document. As a result, it has no effect on the pricing for the customer. Up to Release 4.0, no particular pricing procedures were used for intercompany billing (standard procedure RVAA01 only) but a fixed logic was defined in the program. As of Release 4.0, you are recommended to define and assign a particular pricing procedure (procedure ICAA01, document pricing procedure I). For reasons of upward compatibility, however, you should still be able to use the old logic. Thus if you want to use a separate pricing procedure, you should set the "Specific procedure" indicator so that the program does not use the fixed logic. In the intercompany billing document, the price PR00 is set inactive and the condition type PI01/PI02 is replaced with condition category IV01/IV02. Due to the reference to condition type PI01/PI02 defined in the definition of condition type IV01/IV02, the system determines identical condition values. Condition type PI01/PI02 represents the costs of the selling company code in the customer billing document whereas condition type IV01/IV02 is the price in the intercompany billing document and as a result, represents the revenues of the delivering company code. If you use these two condition types, a correct transfer to the profitability analysis (CO-PA) is ensured.

Related Notes
543821 - FAQ: cross-company processing 394481 - Intercompany with make-to-order production 354290 - Message KI100 adj.for statistical accnt assignment 338922 - Analysis note for cross-company transactions (delivery) 69314 - Cross company without intercompany billing