Explain the Inter Company Sales Process.

In SAP sales & distribution module, an intercompany sale occurs when the selling
organization belongs to a different company code than the delivering plant. The transaction
path for accessing intercompany sales billing is:

IMG >> Sales and distribution >> Billing >> Intercompany billing

Let us take an example to understand intercompany sales better. Suppose there are two
company codes namely 1000 and 2000. A customer may place an order for goods in sales
organization belonging to company code 3000. However, the goods may be manufactured by
a delivering plant belonging the company code 1000. A sales order is created indicating
delivering plant of company code 1000. The sales organization then invoices the customer for
the materials purchased. SAP R/3 automatically creates an intercompany billing document at
the same time as the customer’s billing document is created. This intercompany invoice is
sent from the delivering plant to the selling sales organization.

As a rule of thumb, when dealing with different company codes, one may find a need to
transfer stock between two different company codes. However, if the stock be transferred
within the same company code, there is no need for an intercompany transaction. But in case
the stock is transferred between different company codes, a transfer of value occurs and is an
intercompany sale.

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In inter- company sales process, no PO will raise.

While creating sales order, if the end user knows there is no stock on their plant, they request
for their sister concern company to deliver these ordered goods to the customer directly, after
delivery they will receive intercompany invoice from the delivering company code, that’s the
reason you enter delivering plant while creating sales order.

Below is the inter-company check list:

Check all your settings once again for creating inter-company billing:

- Material should exist in both plants.

- Stock will be maintained in D-Plant (Delivering).

- Now Plant - R (Receiving) become the customer of Plant-D. So create a dummy customer
in Plant-D's company code and sales area.

- Assign this customer number to Plant -R's details & its selling sales area.

- Maintain the intercomapny billing type (IV) in ur sales doc type (OR).

- Assign the Plant-D to selling sales org+ dbt channel.

- Maintain relevant copy controls between documents.

- Determine pricing procedure for Standard (RVAA01) as well as Intercompany (ICAA01)

(Note: Dummy customer's CPP, IV doc's DPP along with Delivering plant's sales area)

- Maintain the condition records for Condition type PI01- VK11

(Note: In ICAA01, you won't find any PI01 Ctype, but you'll find IV01-, if you observe the
details of IV01 C.type in V/06, it has the ref Ctype as "PI01" , through which the condition
record of PI01 is shared to IV01 also..)

- Now create VA01, enter the required fields, in delivering plant -enter Plant-D, @ item level
as well as @ header level, and save,

- Create Delivery VL01n, with ref to SO,

- Create Billing VF01 (with ref to DEL)--- observe bill type-F2,

- Create Billing VF01 (with ref to DEL again)--observe the bill type-IV.

https://www.youtube.com/watch?v=unr3TrKAYvs