Inter-Company Billing Process

Inter-company billing process | SAP Blogs 1/7/19, 10(48 AM
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Former Member
July 16, 2013 2 minute read
Inter-company billing process
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1 Like 31,609 Views 46 Comments
In normal business, we may decide to source our selling products from group
companies to cover excess demand, or to optimally use excess capacities of group
plants. When we source our selling product from a plant of another company within
the group, we can use inter-company billing and generate required documents for
both selling company and supplying company.
We assign plant of other company code to designated sales area (distribution channel
for inter-company sales) of our company code, and we can use standard SAP inter-
https://blogs.sap.com/2013/07/16/inter-company-billing-process/ Page 1 of 20
company pricing for the same. Here we can specify any special prices applicable via
condition types IV01 & IV02. There are condition types PI01/02 which serve as
reference condition types for IV01/02.
IV01 & IV02 are used with subtotal 9 (gross value) and routine 22 (inter-company
billing) as shown below.
Now, we will look at two company codes 1002 & 3000. Go to IMG–>Sales &
Distribution –> Billing –> Intercompany Billing
First, we define order types for inter-company billing. Specify IV (standard billing
document type) in required sales document type inVOV8.
or IMG–>Sales & Distribution –> Billing –> Intercompany Billing –> Define order
types for inter-company billing
Here, I have assigned 2010 plant (company code 3000) to sales area
3031/71/00(company code 3000) for internal costing.
I have created a customer id (XD01) in 1002 and assigned the same to the sales
organization of 1002. This customer id will be payer & represent 1002 for inter-
company billing of plant. IMG–>Sales & Distribution –> Billing –>
IntercompanyBilling –> Define internal customer number by sales org
Customer places an order on company code 1002. 1002 decides to deliver from plant
2010 belonging to company code (3000). I have created normal sales order and
saved. Inventory postings for the delivery are in plant 2010 & company code 3000.
Further, two billing documents are generated with reference to the same delivery
document. Document flow is as under:
First billing document created in company code 1002 and payer is customer.
Create second invoice with reference to the same delivery document number. This
second invoice is the inter-company billing document created in company code 3000
and here payer is the first company (1002 here) for sales area 3031/71/00. Price
(IV01) will be active for inter-co bill where as PR00 will be active for customer bill.
Related accounting documents & excise documents can be generated as per pricing
procedure with reference to respective billing documents.
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Assigned tags
SD Billing | SAP ERP | SD (Sales and Distribution) | enterprise resource planning | sap erp sales and distribution |
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46 Comments
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Former Member
July 18, 2013 at 7:32 am

Hi Karuna,
Its indeed good post. I would have been spellbound if this has shown how Price IV01 and PI01 are used….
Anyways its a good blog to start for Intercomapny…
All the Best.
Cheers,
Sriram.
Like (0)
Former Member | Post author
July 18, 2013 at 12:52 pm

Thank you. For your suggestion as well, Sriram,
I will add a snip of pricing procedure.
Like (0)
Former Member
July 25, 2013 at 8:13 am

Hi Karuna, A very good blog..keep up the good work.
Like (0)
July 25, 2013 at 12:09 pm

Thanks Govind!
Like (0)
Former Member
August 24, 2013 at 3:18 pm

Good effort dear
Like (0)
August 25, 2013 at 5:29 am

Thank you
Like (0)
Former Member
August 26, 2013 at 4:22 pm

Hi Karuna, …
good effort
Like (0)
August 26, 2013 at 4:35 pm

thank you Vinayaka!
Like (0)
Former Member
August 26, 2013 at 4:36 pm

Hi Karuna
Too good document.
Thanks a lot.
one suggestion: It will be great If you add a business example for special prices applicable via
condition types IV01 & IV02.
Regards
Atul
Like (0)
August 26, 2013 at 4:40 pm

Thank you Atul, I will add an example as soon as possible!
Like (0)
TW Typewriter
September 28, 2013 at 8:34 pm

Karuna,
The below seems to be incorrect!
The supplying plant 2010 should be linked with the sales organization which is assigned to company code
3000 (the supplying company code) and not with the company code 1002 (the ordering company code).
By this assignment, the sales area (in the intercompany billing document) is determined.
As intercompany bill is from the supplying / deliverying company code; thus the sales area also should
be of the deliverying company code i.e. 3000 (and not 1002).
Extract from the document –
Here, I have assigned 2010 plant (company code 3000) to sales area
1002/03/00(company code 1002).
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Hi TW,
2010 is plant of CC3000 and I want to sell a product which is not there is my plant 3200(CC1002). So first I
assign 2010 to my sales org 1002/03/00 and inturn assign this sales org as customer of 2010. So interco bill
will be from CC3000 to CC1002.
Like (0)
TW Typewriter

Karuna,
In this screenshot, we assign a plant to a sales area. In turn, in the intercompany billing document the system
takes this sales area.
The intercompany billing document is created with sales area of the delivering entity (i.e. sales area of
company code 3000)
and not the ordering sales area (not company code 1002).
In your intercompany billing document, please check the sales area. Is it correct? (i.e. of comp code 3000)
The standard billing document (F2) shall be created with the sales area of comp code 1002.
From your post, to make plant 2010 a delivery plant for Comp code 1002 (ordering), the sales org and
distribution channel (of ordering comp code) has to be assigned to the delivering plant (2010). This is a
different configuration step, than the one we are currently discussing.
Kindly do some tests and update based on your results.
It would be a learning for all of us
Like (0)
Former Member
October 1, 2013 at 7:13 am

Hi Karuna,
Good one
Regards
Ratnamsri
Like (0)
October 1, 2013 at 12:37 pm

Thank you
Like (0)

Sure TW
Like (0)
October 15, 2013 at 12:00 pm

Hi TW, I have changed SA for internal costing and sales area for IC bill is that assigned to plant in CC3000.
Like (0)
TW Typewriter

Karuna,
Good to know that you have made the change!
This is an important configuration step in the Intercompany process.
By this step, system determines the sales area in the Intercompany billing document.
This billing document is the bill created by the supplying entity (which delivers the goods to the customer,
on the basis of the directives of the ordering entity) and sent to the ordering entity.
Like (0)

You ‘re right TW !
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Former Member
August 26, 2015 at 3:34 pm

Thanks TW, this assignment was really important and was missing in many forums
Like (0)
Suman Sardar

Nice effort Karuna.
Keep sharing.
Like (0)

Thank You Suman
Like (0)
Pradeep Mani

Good document..
what will be the pricing procedure which will be followed while billing to customer.As there are condition type
like IC01
For intercompany billing ICAA01
Thanks,
Pradeep
Like (0)

Thank you Pradeep,
You can use ICAA01 or create your own pricing procedure for inter-company billing. The whole process will
use single pricing procedure, that which you assigned; or separate pricing procedures as assigned to
combinations of documents & sales areas in OVKK.
Like (0)
Pradeep Mani
November 4, 2013 at 6:20 am
The whole process will use single pricing procedure, that which you assigned;
How can we use single pricing procedure for whole process (billing to customer,billing to order company
code)
Also would be useful if some explanation is made on IV01 and PI01
Like (0)
TW Typewriter

Pradeep,
Your comment touches a very important and interesting part, in the intercompany sale process!
In standard SAP, intercompany sale has two pricing procedures RVAA01 and ICAA01.
Helpful document, read section Pricing –
http://www.gotothings.com/sd/configuring-intercompany-billing.htm
Below link, Abhee J’s post –
http://scn.sap.com/message/6786843
Like (0)
Pradeep Mani

Thanks TW,
Still not clear about condition types IV01 & PI01.Is it compulsory to use in our pricing procedure.What is the
use of those.
Like (0)
Sundar S
March 2, 2014 at 9:59 am

Hi Pradeep,
If you still unclear about PI01 and IV01, then the below link might help you .pls go through this .
Difference between PI01 & IV01
Regards
Sundar
Like (0)
Former Member
November 13, 2013 at 5:47 pm

hi karuna
good one
Like (0)

Thank you Dama
Like (0)
Shiva Vasireddy
December 16, 2013 at 6:51 am

Hi Karuna,
Thank you for sharing the Explicit Document.
Like (0)

Thank you for referring to it.
Like (0)
Former Member
December 17, 2013 at 3:13 pm

Well put, in very simple language & point vise explanation
Like (0)

Thank you
Like (0)
Former Member

Good one .. Well done!
Like (0)

Thank you
Like (0)
Former Member
January 9, 2014 at 6:20 am

This Blog give partial information on intercompany process.
Like (0)
January 9, 2014 at 6:39 am

I have posted a blog if you have noticed. I will create a wiki document on inter-company billing process in the
near-future. Please be on the look out for it!
Like (0)
Former Member
March 30, 2014 at 1:42 pm

Thank`s for sharing knowledge..,
Like (0)
March 31, 2014 at 9:13 am

You’re welcome!
Like (0)
Former Member

good one karuna .
Like (0)
Former Member
March 10, 2016 at 5:07 am
Anyone who know I/C process is possible for non-valuated stocks like software license and service package
etc?
Like (0)
TW Typewriter
March 10, 2016 at 6:50 am

Patrick,
Are these licenses and service packages worth nothing? (in your business)
What do you mean by non-valuated stock? Do you maintain inventory?
TW
Like (0)
San Sam
November 6, 2016 at 6:22 pm

Good post
Like (0)
Former Member
April 17, 2017 at 8:46 pm

Thanks for the post. Would you please let me know what is the PATH for this screen:
Like (0)
Former Member

Hi Karuma,
Very Excellent document, just one question. How is the process if my process does not begin with sales
order, I have my sales forecast and based on that I want to procure material from a plan in different company
code, how is the Intercompany billing process, what are the transactions in both company codes?
Thanks
Like (0)
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Inter-company billing process | SAP Blogs 1/7/19, 10(48 AM

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1 Like 31,609 Views 46 Comments

Like Alert Moderator

Creating Multiple Intercompany Invoices from one Delivery

Inter-company Billing for multiple company codes

Setup periodic batch job for VF06 - RV60SBAT

You must be Logged on to comment or reply to a post.

July 18, 2013 at 7:32 am

Anyways its a good blog to start for Intercomapny…

All the Best.

Former Member | Post author

July 18, 2013 at 12:52 pm

I will add a snip of pricing procedure.

July 25, 2013 at 8:13 am

Former Member | Post author

July 25, 2013 at 12:09 pm

August 24, 2013 at 3:18 pm

Former Member | Post author

August 25, 2013 at 5:29 am

August 26, 2013 at 4:22 pm

Former Member | Post author

August 26, 2013 at 4:35 pm

August 26, 2013 at 4:36 pm

Too good document.

Former Member | Post author

August 26, 2013 at 4:40 pm

September 28, 2013 at 8:34 pm

The below seems to be incorrect!

Extract from the document –

Former Member | Post author

September 29, 2013 at 1:11 pm

September 29, 2013 at 1:38 pm

takes this sales area.

Kindly do some tests and update based on your results.

It would be a learning for all of us

October 1, 2013 at 7:13 am

Former Member | Post author

October 1, 2013 at 12:37 pm

Former Member | Post author

October 1, 2013 at 12:38 pm

Former Member | Post author

October 15, 2013 at 12:00 pm

October 20, 2013 at 5:30 pm

Good to know that you have made the change!

This is an important conﬁguration step in the Intercompany process.

Former Member | Post author

October 21, 2013 at 4:40 am

August 26, 2015 at 3:34 pm

October 13, 2013 at 8:05 pm

Former Member | Post author

October 14, 2013 at 4:56 am

October 31, 2013 at 7:32 am

For intercompany billing ICAA01

Former Member | Post author

October 31, 2013 at 8:17 am

November 4, 2013 at 6:20 am

Also would be useful if some explanation is made on IV01 and PI01

November 4, 2013 at 7:29 am

Helpful document, read section Pricing –

Below link, Abhee J’s post –