SD / O2Cintermediate

SD Intercompany Sales Part 2: Configuring Order Types, Plants and Internal Customer

Key takeaway

Configure intercompany sales: assign the delivering plant to the selling sales org/channel, define the intercompany billing type per order type, assign the internal customer number per sales organization, maintain the internal customer in the delivering company, and set up copy control and pricing procedure for IV.

Explanation

📌 KEY POINTS
✅ Delivering plant must be assigned to the selling sales org + distribution channel (OVX6).
✅ Order type gets an intercompany billing type (IV) in the intercompany billing settings.
✅ Each selling sales org is represented by an internal customer number used in the delivering company.
✅ The internal customer needs master data (company code and sales area data) in the delivering company's sales org.
⚠️ Missing internal customer assignment blocks IV billing.

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▶ WHERE WE ARE
Part 1 described the flow. Now configuration.

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▶ 1. PLANT ASSIGNMENT

OVX6: sales org 1000 / channel 10 → plant 2000.

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▶ 2. INTERCOMPANY BILLING SETTINGS

Order type → intercompany billing type (IV).
Sales org → internal customer number (for billing in delivering company).
Organizational data for intercompany billing (delivering company's sales area).

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▶ 3. INTERNAL CUSTOMER

BP in delivering company: company code data (reconciliation account for IC), sales area data (pricing procedure, account assignment group).

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▶ 4. COPY CONTROL

VTFL LF → IV (and F2 for customer).

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▶ 5. PRICING

Intercompany pricing procedure (e.g. with IV01/PI01).

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▶ STEP BY STEP

Assign the plant (OVX6).
Maintain intercompany billing settings.
Create the internal customer BP.
Test IV billing.

✅ CHECKPOINT: after PGI, the delivery appears in the intercompany billing due list of the delivering company.

Code example

ABAP Code

===== STEP 1: settings (SPRO > Sales and Distribution > Billing > Intercompany Billing) =====Define order types for intercompany billing: OR → IVAssign organizational units by plant: plant 2000 → sales org/channel/division of delivering companyDefine internal customer number by sales organization: sales org 1000 → customer IC1000 ===== STEP 2: internal customer =====BP IC1000 in company 2000: reconciliation account (IC receivables), sales area data, account assignment group (affiliated) ===== STEP 3: copy control =====VTFL LF → IV | pricing procedure for IV (IV01)

Real project scenario

A company added a new sales organization but forgot to define its internal customer number. Customer invoices worked, but intercompany billing failed silently in the delivering company. Maintaining the internal customer and adding intercompany settings to the new sales org checklist fixed it.

Common mistakes

Missing internal customer.
Plant not assigned to sales org.
Internal customer without account assignment group.
Missing copy control for IV.
No test of IV billing.

Best practices

Include intercompany in sales org setup checklist.
Maintain internal customers carefully.
Use affiliated account assignment groups.
Test IV end to end.
Monitor IV due list.

Interview angle

Questions: "How do you configure intercompany sales?", "What is the internal customer?", "Where is the IV billing type assigned?"
Strong answer: OVX6 plant assignment, order type → IV, internal customer per sales org, BP data in delivering company, VTFL LF → IV, pricing procedure.

Practice this lesson

Quick check

1. In the intercompany billing document (IV), who is designated as the invoice recipient (payer)?

2. Where is the internal customer number configured that is used to determine the payer for the intercompany billing document?

3. Which standard SAP billing document type is used to create the intercompany invoice sent from the delivering company code to the ordering (selling) company code?

Interview questions

1. In an intercompany sales scenario, the delivering plant belongs to a different company code than the selling entity. Walk through the billing flow and account determination challenges you need to address during design.

Answer it in your own words first, then compare.

2. After adding a new sales organization, customer invoices work but intercompany invoices are never created. What configuration do you check?