The Cross-Company-Code Sales
Process
Unit Overview
In this unit, you will find out how to use cross-company-code sales processes in your enterprise.
Unit Objectives
After completing this unit, you will be able to:
• Set up cross-company-code sales processing for certain materials
• Explain when a cross-company-code sales operation exists
• Assign a sales area to a plant for the purpose of intercompany billing
• Maintain permitted outbound supplying plants
• Explain the conditions in the sales order
• Execute shipping with the help of the outbound delivery
• Determine the company code to which the invoice is assigned
• Explain how the system determines the payer
• Trigger automatic posting to the vendor account
• Explain the conditions in the internal invoice
• Explain the origin of the sales area
Unit Contents
Lesson: Sales Order for Cross-Company-Code Sales ... 77 Exercise 7: Preparations ... 83 Exercise 8: Creating a Sales Order ... 89 Lesson: Shipping and Goods Movements for Cross-Company-Code Sales. 96 Exercise 9: Executing Shipping Activities ... 99 Lesson: Invoices for Cross-Company-Code Sales ...104
Exercise 10: Creating an Invoice for the End Customer...117 Exercise 11: Creating an Internal Invoice ...119 Exercise 12: Posting an Invoice Receipt ...129
Lesson: Sales Order for Cross-Company-Code Sales
Lesson Overview
In this lesson, you will learn how to create a sales order for cross-company-code sales. You will also learn about the Customizing settings needed for this.
Lesson Objectives
After completing this lesson, you will be able to:
• Set up cross-company-code sales processing for certain materials
• Explain when a cross-company-code sales operation exists
• Assign a sales area to a plant for the purpose of intercompany billing
• Maintain permitted outbound supplying plants
• Explain the conditions in the sales order
Business Example
As a result of its own sales processes, the enterprise triggers a direct delivery to the customer from stocks of another company belonging to the same group, without the goods going via the enterprise’s own warehouse.
Your task is to analyze the creation of a sales order for delivery from another company code.
The Cross-Company-Code Sales Process
The option of assigning plants to sales organizations to a differing company code enables you to process cross-business-area sales orders.
In the business transaction subsequently described, a customer orders monitors at the sales organization France.
The computers are produced in the Dresden plant of IDES Ltd., Germany. The sales organization France reports the customer requirement directly to the plant in Dresden. The production plant in Germany delivers the goods to the customer of the French sales organization.
The customer receives an invoice from the sales organization France for this delivery. IDES Germany, however, invoices the French sales area for the goods delivered.
Two enterprises (company codes) of the IDES affiliated group thus participate in the sales operation. IDES France is the ordering company code and IDES Germany is the supplying company code.
Figure 22: The cross-company-code sales process
Once the customer’s purchase order has been received, a sales order is created in sales organization 2200. This belongs to the ordering company code (company code 2200). The plant from which the articles to be delivered are taken is assigned to the supplying company code (company code 1000). As soon as the sales order is due for shipping, an outbound delivery is created. At the end of the shipping process, the goods issue is posted and the goods are transported to the customer.
Finally, an invoice is created for the end customer in sales organization 2200, that is, in the ordering company code.
For intercompany billing to take place between the two company codes involved, the supplying company code creates an internal invoice for the ordering company code via its sales organization 1000. Depending on the
agreement between the connected enterprises, the invoice receipt is entered automatically. Otherwise, the invoice received is entered manually in the financial accounting of the ordering company code.
Permitted Delivering Plants
When the order is created, the system checks whether the combination of sales organization, distribution channel and delivering plant is permitted at all. Depending on the distribution channel, the plants permitted for sales are determined for each sales organization. In this way, you can make settings for a sales organization to sell goods from more than one plant.
Similarly, a plant can be assigned to different sales organizations.
In Customizing, a plant is clearly assigned to one company code. A sales organization also belongs to exactly one company code.
Figure 23: Permitted delivering plants
Sales organizations and plants assigned to one another do not, however, have to belong to the same company code. Otherwise, cross-company-code sales processing would not be possible. Depending on the distribution channel, it is possible, from the point of view of sales and distribution, to further
differentiate the plants of a sales organization. In this way, the distribution channel plant sales is permitted for certain plants within a sales organization, but not for others.
Creating a Sales Order
Cross-company-code sales processing is initiated by the creation of a usual sales order.
In a sales order, the supplying plant is determined per order item by the system, or entered manually by the processor.
The system can propose the supplying plant from the following master records (ordered according to priority):
• Customer-material info record
• Customer master record for the goods recipient
• Material master record
If the supplying plant found in the order item belongs to a different company code than the sales organization creating the order, the system recognizes that it is a case of a cross-company-code sales process for this item.
Conditions in the Sales Order
The system automatically executes price determination in the sales order, thus valuating the stored condition master data.
The condition type PR00 specifies the price that is to be invoiced to the customer. This, together with possible surcharges and discounts, will then appear in the invoice for the customer, if no changes take place in the meantime. This price thus represents the sales revenue.
Figure 24: Price for intercompany billing
For information purposes, the price that the ordering company code has to pay to the supplying company code appears (the price for intercompany billing), instead of the moving average price of the material. It will be relevant in the internal billing document and renders the costs of the ordering company code. In the default, two condition types exist to depict the internal price: PI01 (quantity-dependent) PI02 (in percent).
Condition records are entered subject to the sales organization that creates the sales order, the delivering plant, and if necessary, the material.
The intercompany billing amount appears as a statistical value on the condition screen of the sales order (it is merely displayed; it has no effect on the result of the price determination for the customer).
Exercise 7: Preparations
Exercise Objectives
After completing this exercise, you will be able to:
• Assign a sales area to a plant for the purpose of intercompany billing
• Maintain permitted outbound delivering plants
• Set up cross-company-code sales processing for certain materials
Business Example
You are in the French subsidiary of an international enterprise. You have made arrangements with the German branch for certain materials that are seldom requested to be delivered directly to your customer when you receive a corresponding purchase order. In this way, you save yourself a detour via your own warehouse.
Task
Maintain the Customizing settings for this business process.
1. First assign the following sales area to the supplying plant 12## for the
purposes of intercompany billing. Sales organization for
intercompany billing:
1000 Distribution channel for
intercompany billing:
12 Division for intercompany billing:
00
2. Make settings so that the French sales organization can at least sell goods
from plant 12## to end customers.
What menu path do you need to follow to make the necessary setting in Customizing?
_____________________________________________________________ _____________________________________________________________ If you have not already done so, make settings for the combination of sales organization 2200 and distribution channel 10.
3. A material master record already exists for the material described in the above business example. Enter plant 12## (Dresden ##) as the supplying plant that is relevant for sales processes conducted by the French sales organization.
Material: T-AUD##
Sales organization: 2200
Distribution channel: 10
4. Optional
What do you need to do so that, in the item of the sales order, the system does not determine another supplying plant for material T-AUD##? 1. __________________________________________________________ 2. __________________________________________________________
Solution 7: Preparations
Task
Maintain the Customizing settings for this business process.
1. First assign the following sales area to the supplying plant 12## for the
purposes of intercompany billing. Sales organization for
intercompany billing:
1000 Distribution channel for
intercompany billing:
12 Division for intercompany billing:
00
a) Choose IMG → Sales and Distribution → Billing → Intercompany
Billing → Assign Organizational Units by Plant .
Choose Assign Organizational Units to the Plants. Assign the sales area noted above to your plant 12##. Choose Save.
2. Make settings so that the French sales organization can at least sell goods
from plant 12## to end customers.
What menu path do you need to follow to make the necessary setting in Customizing?
_____________________________________________________________ _____________________________________________________________ If you have not already done so, make settings for the combination of sales organization 2200 and distribution channel 10.
a) Choose IMG → Enterprise Structure → Assignment → Sales and
Distribution → Assign Sales Organization - Distribution Channel - Plant.
Place your cursor on the row with sales organization 2200 and distribution channel 10, and choose Assign. Select plant 12##. The information message refers to the cross-company-code character.
3. A material master record already exists for the material described in the above business example. Enter plant 12## (Dresden ##) as the supplying plant that is relevant for sales processes conducted by the French sales organization.
Material: T-AUD##
Sales organization: 2200
Distribution channel: 10
a) From the SAP Easy Access screen, choose Logistics→ Sales and
Distribution → Master Data → Products → Material → Trading Goods
→ Change or
Logistics → Materials Management → Material Master → Material → Change → Immediately.
In the initial screen, enter material number T-AUD##: Choose the view Sales: Sales Org. Data 1.
In the dialog box Organizational levels, enter sales organization 2200 and distribution channel 10.
In the data screen, maintain the delivering plant. Save your entries.
4. Optional
What do you need to do so that, in the item of the sales order, the system does not determine another supplying plant for material T-AUD##? 1. __________________________________________________________
2. __________________________________________________________
a) To prevent the system from using a different supplying plant, the
following conditions must be met:
1. If a customer material info record exists, a variant supplying
plant may not be maintained there.
2. A deviant supplying plant may not be maintained in the
customer master for sales organization 2200 and distribution channel 10 either.
When determining the supplying plant in the order item, the system accesses the master data in the following order:
1. Customer-material info record
2. Customer master record
Exercise 8: Creating a Sales Order
Exercise Objectives
After completing this exercise, you will be able to:
• Explain when a cross-company-code sales operation exists
• Explain the conditions in the sales order
Business Example
Your customer orders a material that the German branch will deliver directly to the customer. Without any additional costs for the person responsible for the purchase order for a “normal material”, the cross-company-code sales process is triggered.
Task
You receive the following purchase order for the material, which is to be sent directly from your vendor to your customer.
PURCHASE ORDER Société Adecom SA (Customer 2500)
Purchase order
number: ##-B
Material Quantity Requested delivery date
T-AUD## 10 pc. Today + 3 workdays
1. Create a sales order for this purchase order. Use the order type TA and
the following sales area:
Sales organization: 2200
Distribution channel: 10
Division: 00
Sold-to party: 2500
Purchase order number: ##-B
Requested delivery date: Today +3 workday
Material: T-AUD##
Quantity: 10 pc.
Which plant is set for the outbound delivery of the goods?
_____________________________________________________________ Where was the plant drawn from?
_____________________________________________________________ Which two organizational elements can be found in different company codes when a cross-company-code sales process is concerned?
1. __________________________________________________________ 2. __________________________________________________________ Save the sales order. Make a note of the document number.
Sales order number: ___________________________________
2. In Customizing, look for the company codes that belong to the two
organizational elements
1. __________________________________________________________ 2. __________________________________________________________
3. Display the sales order that you just created.
Which condition type in the conditions screen of the order item refers to the price that the ordering company code has to pay to the supplying company code?
What is the amount?
Condition type: ___________________________________
Price: ___________________________________
Condition type: ___________________________________
Price: ___________________________________
Optional
Does the amount assigned to the price for intercompany billing have an effect on the net value? Explain why this makes sense.
_____________________________________________________________ _____________________________________________________________
Solution 8: Creating a Sales Order
Task
You receive the following purchase order for the material, which is to be sent directly from your vendor to your customer.
PURCHASE ORDER Société Adecom SA (Customer 2500)
Purchase order
number: ##-B
Material Quantity Requested delivery date
T-AUD## 10 pc. Today + 3 workdays
1. Create a sales order for this purchase order. Use the order type TA and
the following sales area:
Sales organization: 2200
Distribution channel: 10
Division: 00
Sold-to party: 2500
Purchase order number: ##-B
Requested delivery date: Today +3 workday
Material: T-AUD##
Quantity: 10 pc.
Which plant is set for the outbound delivery of the goods?
_____________________________________________________________ Where was the plant drawn from?
_____________________________________________________________ Which two organizational elements can be found in different company codes when a cross-company-code sales process is concerned?
2. __________________________________________________________ Save the sales order. Make a note of the document number.
Sales order number: ___________________________________
a) From the SAP Easy Access screen, choose Logistics → Sales and
Distribution → Sales → Order → Create.
In the initial screen, enter the order type and the sales area. Create a sales order using the above data.
b) The supplying plant is plant 12## (If necessary, scroll to the right in
the item in the sales overview screen).
Since a customer-material info record does not exist, and the delivering plant has not been entered in the customer master, the plant was determined based on the entries in the material master that you carried out above.
c) The following belong to different company codes:
1. Sales organization in which the sales order is entered
2. Supplying plant
2. In Customizing, look for the company codes that belong to the two
organizational elements
1. __________________________________________________________ 2. __________________________________________________________
a) Choose IMG → Enterprise Structure → Assignment → Sales and
Distribution → Assign Sales Organization to Company Code.
Sales organization 2200 ⇒ company code 2200
b) Choose IMG → Enterprise Structure → Assignment → Logistics -
General → Assign Plant to Company Code.
Plant 12## ⇒ company code 1000
3. Display the sales order that you just created.
Which condition type in the conditions screen of the order item refers to the price that the ordering company code has to pay to the supplying company code?
What is the amount?
Condition type: ___________________________________
Price: ___________________________________
What is the price valid for the customer?
Condition type: ___________________________________
Price: ___________________________________
Optional
Does the amount assigned to the price for intercompany billing have an effect on the net value? Explain why this makes sense.
_____________________________________________________________ _____________________________________________________________
a) From the SAP Easy Access screen, choose Logistics → Sales and
Distribution → Sales → Order → Display.
Select the item in the order and choose Item conditions.
Condition type: PI01
Price: 625.00 EUR
Condition type: PR00
Price: 811.00 EUR
b) Choose Condition details for condition type PI01.
Since the condition is marked as Statistic, it does not have an effect on the net value. This makes sense because the price for intercompany billing should neither increase or decrease the amount to be paid by the customer.
Lesson Summary
You should now be able to:
• Set up cross-company-code sales processing for certain materials
• Explain when a cross-company-code sales operation exists
• Assign a sales area to a plant for the purpose of intercompany billing
• Maintain permitted outbound supplying plants
Lesson: Shipping and Goods Movements for
Cross-Company-Code Sales
Lesson Overview
In this lesson, you will learn about shipping activities for the sales order for cross-company-code sales.
Lesson Objectives
After completing this lesson, you will be able to:
• Execute shipping with the help of the outbound delivery
Business Example
As a result of its own sales processes, the enterprise triggers a direct delivery to the customer from stocks of another company belonging to the same group, without the goods going via the enterprise’s own warehouse.
Your task is to analyze shipping activities in the delivering company code.
Shipping Activities
The cross-company-code order has been entered directly in the delivery due list of shipping point 1200 (Dresden). A delivery is created and processed in this shipping point for the delivery creation date.
The shipping process is initiated when the outbound delivery is created. This can occur with help of the usual collective processing function to deliver orders due for shipment, or with explicit reference to the sales order. In practice, the outbound delivery is usually created as soon as the first workstep in the shipping process arises. The individual steps in the shipping process (pick, pack, print delivery note, and so on) are each executed based on the outbound delivery, and documented in it.
Creation of the outbound delivery, and execution of the shipping activities take place in the shipping point assigned in the order. This shipping point is assigned to the supplying plant in Customizing.
Using the pick list, the material that is to be delivered to the customer is withdrawn from the warehouse. The pick list is output based on a transfer
Figure 25: Shipping processing steps
A transfer order with reference to the outbound delivery is created for picking. A printed list of the transfer order is given to the picker for him/her to withdraw the corresponding articles from the warehouse.
Depending on the settings in Customizing, picking must create a confirmation (confirmation requirement). Potential quantity variances can also be entered in the confirmation requirement of the transfer order.
If the articles in shipping are, for example, packed in large cardboard boxes or placed on pallets, information regarding this can be stored in the outbound delivery.
Delivery notes and so on are printed with help of message control and message processing.
The posting of the goods issue is the final activity in the shipping process. Stock is then updated on a quantity and value basis.
Exercise 9: Executing Shipping Activities
Exercise Objectives
After completing this exercise, you will be able to:
• Execute shipping with the help of the outbound delivery
Business Example
At a shipping point assigned to the supplying plant, the goods are prepared for shipping to the customer and then delivered. The fact that this concerns cross-company-code shipping processing does not have any effect on the operation.
Task
To execute the shipping activities, you are an employee of shipping point X0## that operates for plant 12##. Use the usual functions for collective processing, which you use to process intra-company-code sales operations in shipping.
1. Deliver the order created in the previous lesson for purchase order ##-B
by processing the pool of sales orders due for shipment, and the purchase orders for shipping point X0##.
Limit your selection to shipping point X0##!