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
- Intercompany Sales Fundamentals: Business Purpose and Document FlowUnderstand why intercompany sales exists, the roles of the ordering and delivering company codes, and the end-to-end document flow from customer sales order through delivery, customer billing, and intercompany billing.
- Intercompany Billing and Pricing: Internal Conditions and Automatic Account DeterminationExplains how intercompany pricing conditions drive the internal invoice (IV) between the delivering and selling company codes, and how account determination posts the corresponding FI entries in both company codes.
- Configuring Intercompany Sales: Order Types, Pricing, and Internal Customer SetupLearn the core configuration building blocks for intercompany sales: sales document and billing type assignments, the intercompany pricing procedure with the internal price condition, and the internal customer master linkage between ordering and delivering company codes.
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.