Intercompany Sales
Intercompany Sales in SAP SD covers the process where a sales organization in one company code sells goods that are physically delivered from a plant belonging to a different company code, generating a customer-facing sales order/delivery/billing flow alongside an internal intercompany billing document that settles the cross-company financial obligation. This topic explains the business rationale, master data setup, order-to-cash document flow, pricing and condition record configuration (including the intercompany price condition), integration with FI (intercompany AR/AP) and MM (stock movement, delivery), common misconfigurations, troubleshooting of blocked or missing intercompany billing documents, and differences in behavior and monitoring across ECC and S/4HANA deployments.
Overview
Intercompany Sales in SAP SD covers the process where a sales organization in one company code sells goods that are physically delivered from a plant belonging to a different company code, generating a customer-facing sales order/delivery/billing flow alongside an internal intercompany billing document that settles the cross-company financial obligation. This topic explains the business rationale, master data setup, order-to-cash document flow, pricing and condition record configuration (including the intercompany price condition), integration with FI (intercompany AR/AP) and MM (stock movement, delivery), common misconfigurations, troubleshooting of blocked or missing intercompany billing documents, and differences in behavior and monitoring across ECC and S/4HANA deployments.
Lessons in this topic
- SD Intercompany Sales Part 1: How Intercompany Sales WorkIntercompany sales happen when one company code sells and another company code delivers from its plant. Learn the flow — sales order, delivery from the other company's plant, customer invoice, intercompany invoice — and why two sets of postings are needed.
- SD Intercompany Sales Part 2: Configuring Order Types, Plants and Internal CustomerConfigure 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.
- SD Intercompany Sales Part 3: Intercompany Billing, Pricing and Account DeterminationPrice 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.
Interview questions covered
- In an intercompany sales scenario, how does the system determine the intercompany billing price and the corresponding G/L accounts, and what integration points exist with FI-AR?
- 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?
- After posting goods issue for a cross-company stock transfer, the intercompany billing document (IV) is not generated automatically and the delivering plant's sales order shows no billing status update. What are the likely causes and how would you troubleshoot?
- 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.
- Suppose you inherit an existing Intercompany Sales solution. How would you review it before making a change?
- A consumer goods company produces in one legal entity and sells through regional sales companies. Customers must receive one invoice from their local company. How do you set it up?
- After adding a new sales organization, customer invoices work but intercompany invoices are never created. What configuration do you check?
- The delivering company shows losses on intercompany sales because internal invoices are too low or zero. How do you fix intercompany pricing?