SD / O2Cintermediate

SD Intercompany Sales Part 3: Intercompany Billing, Pricing and Account Determination

Key takeaway

Price and post intercompany correctly: PI01 (fixed internal price) and PI02 (percentage) in the sales order, IV01/IV02 in the intercompany invoice, intercompany pricing procedures, revenue account determination for affiliated customers, automatic vendor invoice via IDoc, and reconciliation.

Explanation

📌 KEY POINTS
✅ PI01 (fixed internal price) or PI02 (percentage) are statistical in the customer order/invoice and represent the transfer price.
✅ In the intercompany invoice, IV01/IV02 carry that value as the actual price.
✅ Revenue account determination uses the internal customer's account assignment group (e.g. affiliated) for IC revenue.
✅ The selling company's payable can be posted automatically via IDoc INVOIC.
⚠️ Missing PI01 records lead to intercompany invoices with zero value.

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▶ WHERE WE ARE
Parts 1–2 covered flow and setup. Now pricing and postings.

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▶ 1. INTERNAL PRICE

PI01 condition records (per plant/material or other keys).
PI02 percentage of customer price where transfer pricing is margin-based.
Statistical in the customer document.

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▶ 2. INTERCOMPANY PRICING PROCEDURE

IV01/IV02 as price in the IV procedure.
Taxes per intercompany rules.

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▶ 3. ACCOUNT DETERMINATION

VKOA with account assignment group of internal customer → IC revenue accounts.
Cost/payable side in the selling company.

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▶ 4. AUTOMATION

IV output → IDoc INVOIC → incoming invoice in selling company.
Error handling and monitoring.

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▶ 5. RECONCILIATION

IC receivables vs payables monthly.
Transfer pricing documentation.

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▶ STEP BY STEP

Maintain PI01 records.
Check IV pricing procedure.
Create customer and intercompany invoices; compare values.
Automate and reconcile.

✅ CHECKPOINT: IV value equals PI01 × quantity and both companies' IC balances match.

Code example

ABAP Code

===== STEP 1: conditions =====PI01 (plant 2000, material M-100) = 80.00 EUR → statistical in F2 customer invoiceIV01 in IV pricing = 80.00 EUR (taken from PI01)PI02 alternative: 85% of customer net price ===== STEP 2: account determination =====VKOA: account assignment group 03 (affiliated) + ERL → IC revenue 41900000 ===== STEP 3: automation =====IV output → IDoc INVOIC → incoming invoice in company 1000 (partner profiles, vendor mapping)

Real project scenario

Intercompany invoices had zero value for new products because PI01 records were never maintained; the delivering company showed losses and the selling company inflated margins. Adding PI01 maintenance to the product launch checklist and a monthly check for zero-value IV invoices corrected it.

Common mistakes

Missing PI01/PI02 records.
IC revenue posted to external revenue accounts.
Manual payables causing mismatches.
No transfer pricing documentation.
No monthly reconciliation.

Best practices

Maintain internal prices with product launches.
Use affiliated account assignment groups.
Automate payables via IDoc.
Reconcile monthly.
Align with transfer pricing policy.

Interview angle

Questions: "What are PI01 and IV01?", "How is intercompany revenue posted?", "How is the selling company's payable created?"
Strong answer: PI01/PI02 statistical internal price, IV01/IV02 in IV, intercompany pricing procedure, VKOA with affiliated group, IDoc INVOIC payable, reconciliation and transfer pricing.

Practice this lesson

Quick check

1. Intercompany invoices for new products show zero value. What should be checked?

2. Which condition type is used to determine a percentage-based intercompany price rather than a fixed-amount intercompany price?

3. Which condition type is typically used in the intercompany billing pricing procedure to represent the internal transfer price charged by the delivering company to the ordering company?

Interview questions

1. The delivering company shows losses on intercompany sales because internal invoices are too low or zero. How do you fix intercompany pricing?

Answer it in your own words first, then compare.

2. In an intercompany sales scenario, the delivering plant's company code invoices the selling company code via intercompany billing, but the intercompany invoice is failing to post to FI. What are the likely root causes and how would you troubleshoot?