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Inter-Company Sales-Part 1

This process is useful in situations when we have requirements to sell items that are available in another company code / plant. For example, our customer requests several materials of which one must be delivered from another company code. You will probably wonder how things work in terms of pricing determination, delivery and billing. Let’s name our company code 1, or plant 1 and our sales organization 1, and the company which is supplying the material for intercompany sales will be company 2, plant will be plant 2 and sales organization is also SO 2. Pricing for the item subject to intercompany sales is determined from sales organization 1, it is reasonable since we are selling this item through our company code 1 in which sales organization 1 is defined. Delivery is made through plant 2 which is also logical since we don’t store our material in plant 1 and this is the reason that intercompany sales is taking place. And the billing towards the customer is made through company code 1, from similar reason the pricing determination from 1 is used. We also need to bill the company code 1 for purchasing the item from company code 2. We can set the condition record to determine for example 65% of the sales price towards final customer. So in the end we have a situation that customer is billed by company code 1 for 100% of price, plant 2 delivered the item, company code 1 is billed 65% of final price by company code 2, and we have completed the circle.
This lesson is the first in a series of four lessons about customizing and using intercompany sales process in your SAP environment.

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