Quick Answer Summary (for the skimmers)
In an inter-company sales process, a customer places an order with one sales organization (let’s call it Company A), but the goods are shipped from a different company code (say, Company B). Here’s the twist: even though the customer thinks they’re buying from A, B actually delivers the goods and bills A, while A bills the customer. Everything’s tracked through internal billing in SAP. Want the full behind-the-scenes walkthrough? Let’s dive in.Real-World Business Scenario
Picture this:- A customer orders from Sales Org 4211 (Company A).
- The product is shipped by Company Code 4436 (Company B).
- The customer only deals with 4211. Meanwhile, 4436 ships the goods and bills 4211 internally.
- Once 4211 bills the customer, only then can 4436 send its internal invoice.
SPRO Customization Checklist
1. Plant Assignment
Assign the plant (e.g., SI81 from Company B) to the sales org/distribution channel combo of Company A (e.g., 4211/RT).2. Billing Type Setup
Use billing type IV for inter-company billing.3. Organizational Mapping
Make sure plant SI81 is linked with org units: 4211/RT/11.4. Internal Customer Number
- 4436 must treat 4211 like a customer.
- Create a customer master in 4436 representing 4211.
- This is your internal customer number setup.
5. Auto Vendor Posting (Optional)
You can automate postings to the vendor account—handy but not mandatory.- 6. Pricing Procedure
- 4211 uses RVAA01 for customer billing.
- 4436 uses ICAA01 for internal billing.
Master Data Setup
SAP lives and dies by its master data. Here’s what to prep:1. Create Customer Master for End Customer in 4211.
2. Create Internal Customer Master in 4436 (for 4211).
3. Maintain PR00 (actual selling price to end customer) – active in RVAA01.
4. Maintain PI01 (transfer price from 4436 to 4211) – statistical in RVAA01.
5. Maintain IV01 (intercompany price) – active in ICAA01.
Step-by-Step Inter-Company Sales Process
1. Sales Order Creation (Type: OR)
Sales org 4211 creates the sales order with the end customer as the sold-to party.Pro tip: The plant used in the order should be from 4436. That’s what triggers the inter-company scenario.
2. Delivery from Company B
The system recognizes that a different company code’s plant is delivering and sets it as an intercompany transaction.3. Customer Pricing Procedure: RVAA01
This is used to determine prices visible to the customer.4. Goods Issue from Delivering Plant
The delivery is processed and goods issue is posted from plant SI81 (4436’s plant).5. Customer Billing (F2 Invoice)
4211 bills the end customer using standard billing type F2.6. Intercompany Billing (IV Invoice)
4436 then bills 4211 using IV, based on the same delivery.Remember: Intercompany billing can only happen after customer billing. That’s a critical system checkpoint.
Test Case Walkthrough
Let’s test with this setup:- Customer Code: 1000001
- Sales Org: 4211
- Delivering Plant: SI81 (Company Code 4436)
Test Steps:
1. Create SO (type OR) with plant SI81 → intercompany flag is triggered.All pricing works based on PR00, PI01, and IV01.
2. Post delivery from SI81 → goods issue complete.
3. Create F2 invoice in 4211 → posted to end customer.
4. Create IV invoice in 4436 → intercompany invoice to 4211.
Bonus Tips
- Reporting: Use billing reports to differentiate between F2 and IV invoices.
- Cross-Company Reconciliation: Ensure FI/CO integration for clean ledger updates.
- Audit Trail: Always track the document flow from SO → Delivery → Billing → Intercompany.
Final Thoughts
Setting up inter-company sales may sound complex at first glance, but it’s like learning to drive a stick-shift. Once you understand how the gears (companies) coordinate, it runs smoothly. And in global businesses with multiple entities, it’s a must-have setup to streamline operations without confusing the end customer.