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1.2.4.4.2.1 Example: Settlement Across Different Company Codes Using EDI

Prerequisites

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Providing and debited account assignment objects belong to different organizational structures (company codes).

Equipment (PM order administrator = providing object) has been assigned to company code 0001.

Construction site (WBS element = debited object) has been assigned to company code 0002.

Material must have been created in the appropriate organizational structure.

Debtor must have been created for the appropriate sales area or for Financial Accounting (FI).

Procedure

Business background and task

Many companies manage their equipment in a separate company that is a legally independent unit with its own balance sheets and accounts. This is represented by a company code in SAP (company code 0001).

The usage sites (for example, construction sites) can also belong to their own legally independent company and therefore have another company code (company code 0002).

For this reason, and provided that you are not dealing with an integrated company, when using an equipment or material that belongs to company code 001 at a usage site belonging to company code 002 you must create an outbound and inbound billing document with the relevant tax for each company code.

In other words, company code 0001 creates and posts an outbound invoice (debit). Company code 0002 posts an inbound invoice (credit).

How does the system deal with this task?

EDI can be used to avoid invoices from company code 0001 having to be entered manually in company code 0002.

When the outbound invoice from company code 0001 is created and posted, an inbound invoice is triggered in company code 0002 by means of output/message control and EDI.

As far as company code 0001 is concerned, company code 0002 is a real customer and must therefore be entered as a customer (debtor) in the system, even for the sales area.

As far as company code 0002 is concerned, company code 0001 is a real vendor and must therefore be entered as a vendor (creditor) in the system, even for the purchasing organization.

Postings

Outbound invoice (debit) in company code 0001 01 Receivables for company code 0002 (usage site)

50 Cost element revenue from rental (accounted to providing party = PM order) A1 Value-added tax (V.A.T.)

Automatic inbound invoice (credit) in company code 0002 31 Payables for company code 0001

40 Equipment rental costs (accounted to debiting party = WBS element for usage site) V1 Input tax

Detailed description of the procedure and appropriate Customizing settings for cross-company code settlement with EDI

Equipment from company code 0001 is sent to a usage site in company code 0002 The PM order (administrator) for the equipment has been assigned to company code/business area/plant (in our example, company code 0001). The equipment is the provider of the service (creditor).

The account assignment object for the recipient (in accordance with recipient type), for example WBS element or cost center has been assigned to company code/business area (in our example, company code 0002). The usage site is the debtor.

a. Determining the sales area for the provider of the service (creditor) ETM Settlement proceeds as follows:

The organizational data for the equipment and therefore its assignment to a company code/business area/plant is determined from the provider of the service = equipment. Then the sales area for the equipment is defined in Customizing for ETM under Global Settings → Sales Area per Company Code/Business Area/Plant . The system then also generates the SD order in this sales area.

In our example, this would be company code 0001 which is equivalent to sales organization 0001/distribution channel 01/division 01.

b. Determining the sales area for the debtor

The appropriate sales area is determined from the account assignment object for the debtor = usage site.

In our example, this would be company code 0002 which is equivalent to sales organization 0002/diistribution channel 02/division 02.

c. Determining the customer (internal settlement)

A debtor (bill-to party and payer) is defined for sales organization 0002 in Customizing for ETM under Global Settings → Customer Internal Settlement per Sales Organization in ETM . This debtor is used for the outbound invoice form company code 0001.

This “customer internal settlement”, for example debtor 111, must have been created in sales area 0001/01/01. However, it represents company code 0002.

You do not have to maintain a ETM view in the master data for the “customer internal settlement” but you must have maintained data correctly for financial accounting (FI) and sales and distribution (SD).

d. Across different company codes:

As described in 4a and 4b above, the business transactions have been determined as cross-company code. The ETM indicator for postings is adapted accordingly in internal programs.

Message determination

If you want to use EDI, you must have made the appropriate settings for message determination for billing documents in Customizing. ( Equipment and Tools Management (ETM) → Operations and Functions → Settlement → EDI Settlement ).

Message condition type J3GO is delivered with the system. As is usually the case with condition technique, you have to create a condition record for this condition type and a customer (internal settlement), for example debtor 111.

You also have to define message determination for cancellations in accordance with the billing documents.

Partner profiles

You have to define which message type you want the system to use for both the customer (debtor) and the vendor (creditor). The system uses the following partner types:

KU = customerLI = vendor a. Settings for the customer

For example, for debtor 111 that has been created in company code 0001 and represents company code 0002:

Output/message control Partner number 111 Application V3 Partner type KU Output/message type J3G0 Partner function RE

Output/message category INVOIC Output/message variant CEM

Process code /SAPCEM/INVOIC_OUTPUT Outbound parameters

Recipient type, for example, external system IDoc basic type / SAPCEM/INVOIC

Set the output mode to Collect IDocs and Do not start subsystem . Inbound parameters

None necessary b. Settings for the vendor

In our example, sales area 0002/02/02 for the customer (internal settlement).

Output/message control and outbound parameters None necessary

Inbound parameters

Partner number 500002 Output/message category INVOIC Partner type LI Invoice/billing document

Partner function Output/message variant CEM Process code /SAPCEM/INVOIC_OUTPUT c. Forwarding inbound data to the vendor (creditor)

The debtor from one company code (for example, company code 0001 and debtor number 111) is converted for the other company code (for example, company code 0002 and vendor 500002).

For further information on this subject, please see the appropriate documentation in the SAP Implementation Guide (IMG).

d. Setting posting parameters

You must define a tax type (for example, A1) and the tax rate that the EDI partner can transfer (from the providing company code 0001) using control indicators.

You define the posting key and the document type in the program parameters. Here you can decide whether you want posting to take place directly or by means of a batch input session.

Posting by means of a batch input session.

Result

An outbound invoice has been created in company code 0001 and an inbound invoice has been created in company code 0002.

1.2.4.4.3 Recipient Data Check

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Use

This function finds any errors in the shipping documents and PBE documents that are used to generate the SD orders. The system displays an error log from which you can correct the errors directly.

The system checks the following:

Recipient

Billing and account assignment indicator for WBS elements

Whether the recipient has been defined as relevant to settlement ( Settlement Indicator )

Correctness and completeness of the settlement data (settlement type, calendar ID, hours per day/month, complete month, days per month) in accordance with the document type

Equipment

Active BOM for the equipment (basis for pricing) PM order (owner)

PM order (administrator)

Comparison of organizational structures Material sales/repurchase

Assignment of material to catalog Comparison of organizational structures

Posting/update block for CO objects, WBS elements and equipment

Prerequisites

Shipping documents and PBE documents exist.

Activities

Correct the errors in the log. Double-click on the appropriate entry. You should not perform SD Settlement until you have corrected all the errors.

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