INTERCOMPANY SALES IN SAP SD WITH STEPS

3rd party sales

1. Intercompany Sales in SAP SD Understanding the Process, Configuration, and Key Concepts Presented by: [Your Name / Department] Date: [Presentation Date]

2. Agenda 1. What is Intercompany Sales? 2. Business Scenario 3. Process Flow in SAP 4. Configuration Overview 5. Key Master Data 6. Intercompany Billing 7. Reporting and Reconciliation 8. Summary and Q&A

3. What is Intercompany Sales? • A sales process where a sales organization sells to a customer, but delivery and billing are handled by another company code within the same corporate group. • Used by multinational corporations for optimized supply chains. • Triggers intercompany billing between delivering and ordering company codes.

4. Business Scenario Example: • Sales Org A (Germany) takes a sales order from a customer. • Delivering Plant belongs to Company Code B (USA). • Company Code B delivers goods to the customer. • Company Code A bills the customer. • Company Code B bills Company Code A (Intercompany Invoice).

5. SAP Intercompany Process Flow 1. Customer places order with Sales Org A. 2. Sales order is created (Plant = Company Code B). 3. Delivery is processed from Plant (Company Code B). 4. Goods issue is posted. 5. Billing to the customer (Invoice). 6. Intercompany billing between Company B and Company A.

6. Configuration Overview Key configuration steps: • Maintain organizational structure (cross-company setup). • Assign delivering plant to sales organization. • Define intercompany customer (between company codes). • Maintain pricing procedure with intercompany condition types. • Configure billing document types (IV, etc.). • Set up automatic posting (E.g., account determination, pricing).

7. Master Data Requirements • Customer Master: - Sold-to party (external customer) - Intercompany customer (between company codes) • Material Master: - Available in both delivering and ordering plants • Condition Records: - Intercompany pricing maintained in VK11 (PI01 or other custom condition)

8. Intercompany Billing (IV Document) • Generated after PGI and customer billing. • Uses special billing type (e.g., IV). • Posting triggered in FI between company codes. • Automatic account postings using pricing and account determination.

9. Reporting and Reconciliation Use standard SAP reports: • VF05, VF03 – Billing Documents • MB51 – Material Movement • FBL1N / FBL3N – Vendor / G/L reconciliation • Ensure reconciliation between intercompany AP/AR ledgers.

10. Benefits of Intercompany Sales • Streamlined logistics and inventory management • Centralized order management • Transparent intercompany transactions • Accurate internal billing and profitability tracking

11. Challenges and Considerations • Currency exchange rate fluctuations • Tax and compliance regulations • Master data accuracy • Timing differences between delivery and billing

12. Summary • Intercompany sales facilitate internal fulfillment across company codes. • Requires coordination between SD, MM, and FI. • Master data and configuration are critical to success. • Provides transparent accounting and logistics.

13. Q&A Any questions or discussion points?

14. Thank You Thank you for your attention! For further questions: 📧 [Your Email] 📞 [Your Contact Number]