Inter-company STO with SD Delivery, Billing & LIV

 Dear Friends,

In this document I’m going to explain inter-Company Stock transport Order with SD Delivery, Billing & Logistics Invoice verification.

Prerequisites:

1. Knowledge of MM & SD
2. Two organization structures: one for purchasing and another for sales

          Purchasing: Company Code:8888, Plant: 8881, Sto. Loc: 0002, Purchase Organization: 8881,

          Sales: Company Code:6666, Delivering Plant: 6661, Sto. Loc: 0001, Sales Area:6666, 66, 66, Shipping Point 6666.

 

Step1. In Transaction XK01, Create Vendor Master to represent Supplying plant(6661) in receiving company code(8888) & Pur.Org(8881).

In Purchasing Data, Goto Menu Bar, Extras > & click on Additional Purchasing Data. Here Maintain the supplying plant(6661) so that it is linked to the vendor master.

Note: A Plant can only be assigned to one vendor number. So we have to extend the same vendor number to different Pur.Org if required.

Step2. In Transaction XD01, Create Customer Master to represent Receiving Plant(8881) in Supplying Company Code(6666) & Sales Area(6666,66,66).

In Sales Area Data, Shipping tab, Maintain Delivery Priority, Shipping Condition & Delivering Plant(6661) as shown below.

Step3. Create Material Master with below selected views, in Supplying Plant(6661), Sto.Loc.(0001), Sales Org(6666), Dist.Ch(66).

In Basic Data1 View maintain Division(66) & General Item Category Group Ex. Norm(Standard Item)

In Sales Org1 View, Maintain Delivering Plant(6661) & Tax Details as shown below

Note: If You are not able to see tax condition types or not maintaining any tax indicators then it is not possible to Create a delivery against STO. Same applies to Customer Master in Step2.

In Sales Org2 View, Maintain Item category Group Ex. Norm (Standard Item)

.

Note: The Item Category group maintained here is preferred over general item category group and used to determine ‘Item Category in Delivery’  Ex. NLC(For Inter Company) NLN(For Intra-Company).

In Sales General Plant Data, maintain Availability Check Group(Ex.01), Transportation Group(Ex.0001), Loading Group(Ex.0001).

Step4. Extend the Material Created in Step3 to Purchasing plant(8881) & Sto.Loc(0002) with below selected views.

Configuration Settings

 

Step5. Define Shipping Data for Plants in below path

SPRO > Materials Management > Purchasing > Purchase Order > Setup Stock Transport Order

For Supplying Plant(6661), assign Sales Area(6666,66,66) as shown below.

For Receiving Plant(8881), assign Customer Number(100216) Created in Step2.

Step6. If required Create a Checking Rule by entering a two digit code & Description. Ex. B – SD Delivery(Standard)

Step7. Define Checking rule Created in Step6 in combination with Availability Check Group(01) assigned in material master Step3. Here select the stocks, receipts & requirements as per requirement.

Step8. Assign Delivery type & Checking rule

Here Assign Delivery type(NLCC) & Checking rule(B) to the Purchase order Document type(NB) & Supplying plant(6661) Combination as shown below.

Step9.  Assign Document type, One Step Procedure & Under delivery Tolerance.

Here for Supplying & Receiving Plant(6661 & 8881 respectively) Combination Assign PO Document Type(NB).

Select One step Check box to post the Goods receipt while doing PGI itself. Otherwise Goods Receipt have to be carried out in another step.

If You Select tolerance limits check box, Then SAP closes the STO by marking final delivery Check box, if delivered Quantity is within the under delivery tolerance limits maintained in delivery tab of PO. It depends on Partial deliveries allowed or not. Then the remaining quantity will not be shown as open in requirements.

Step10. Define Shipping Point Determination in below path

SPRO > Logistics Execution > Shipping > Basic Shipping Function > Shipping point Determination > Assign Shipping Points.

Here assign Shipping Point(6666) for the Combination of Shipping Condition(01) (customer master step2), Loading Group(0001) (material master step3) & Supplying Plant(6661).

Step11. Define Item Category Determination in Deliveries in below path

SPRO > Logistics Execution > Shipping > Deliveries > Define Item Category Determination in Deliveries

Here assign Item Category (NLC – Replenishment delivery inter Company) for the combination of Delivery Document type (NLCC), Item Category Group (NORM), Usage V (Purchase order) & Higher level item category group ( ‘ ‘-blank) as shown below.

Assign Sales pricing procedure ICAA01 to the combination of Sales Area(6666,66,66), Document pricing grp ‘ I ‘ (for billing doument type IV) & Costomer pricing grp ‘1’

Testing:

Make sure You have sufficient stock in issuing storage location(0001) of supplying plant

Step1. Create Purchase Order in Transaction ME21N with Document type NB, Vendor(2122), Material(2116), PurOrg(8881) Pur Grp(001), Company Code(8888), Receiving Plant(8881).

Note: If you are using one step procedure the enter the receiving storage location(0002).

Here Observe the shipping tab with the above details as shown. Here first of all SAP checks for any plant assigned in vendor Master. if not assigned then it will be a standard PO

Note: You Can process inter Company STO by using PO document type UB with Clearing accounts, without delivery, w/o billing, w/o invoice(Mov.types 351 &101). If You are using document type NB then it is only possible with delivery & trigger point is vendor master.

make sure you have proper sales tax setup in SD > Basic Functions > Taxes.. Customer & Material Master is assigned to tax indicators. Create condition record for output tax condition type in Trasaction VK11. Ex. MWST output tax

In Transaction VK11 Create Condition Record for Condition type PR00 with the sales price if required.

Note: To adopt price from purchasing in to billing create a condition type with same name as PB00. In copy control enter reference as application purchasing & condition type PB00. Now assign this condition type in procedure ICAA01 after step of condition type IV01.  Now the PO price is adopted in to billing.

Step2. Generate Outbound delivery against purchase order in Transaction VL10G or VL10D

Here make sure that delivery date is in between the dates entered. & enter the shipping point triggered in PO shipping tab. Then Execute.

Then Select the Purchase order line item & click on back ground.

Note: If you are able to see an extra line item with status green proceed to next step or else click on log button as shown above.

Now click on line item & click on notes. now you will see some error messages & solve them.

Step3. Select the Line item & Click on Log Icon. Now click on documents & note down the outbound delivery document number.

Go to Transaction VL02N. Enter the outbound delivery document number & Click enter. Here in picking tab enter the issuing storage location & picked Quantity.

Check the Delivery item Category NLC. In Goods Movement tab observe the movement type 643( two step). In item Conditions Tab Observe conditions as shown below.

Note(movement type 645 is for one step procedure)

Carry out the post goods Issue.

If You are not able to process PGI, then check WM is activated in storage location or if one step procedure check PO whether receiving storage location entered or not.

Check The Accounting Document where stock account from BSX is credited & Cogs Account from GBB-VAX is debited with the price as per supplying plant material master

Step4. In Transaction VF01 Create billing document with reference to outbound delivery.

Create Condition record for Condtion type PI01 in transaction VK11.

The Condition type PR00 & PI00 are for Information purpose only & the Condtion type IV01 is the main condition type which is based on PI01.

Make Sure Account determination has been done and Save the billing document. Observe the accounting document. Where Customer account is debited with the sum of revenues(credited) & Tax(credited).

Step5. In Transaction MIGO do Goods receipt wrt Outbound delivery. Enter the receiving storage location & post the goods receipt.

Check the accounting document. Whre stock account from BSX is debited & GR/IR account from WRX is Credited with the price in PO.

Step6. In transaction MIRO carryout Logistics Invoice verification in receiving company code(8888).

Post the invoice & observe the accounting document. Where the vendor account is credited with the sum of amount entered in PO to GR/IR A/c(debited) & Input tax account(debited)

NAVICUTS (Check Points for Error Messages):-

1. Not possible to determine shipping point for item 00010 Message no. 06855

Check Step2, Step3, Step10

2. There is no item category available in item category determination in the delivery (table T184L) for the following entries: NLCC NORM V

Error Message No. VL320

Check Step3, Step11

3. Enter Stor. Location Message no. M7018

Check Step1 in Testing

4. No sales and distribution data maintained for material & Message no. 06854

Check Step3.

5. No delivery type defined for supplying plant 6661 and document type NB Message no. 06694

Check Step8

6. Please maintain sales org./division/distr. channel in supplying plant 6661 Message no. 06846

Check Step5

7. Customer  does not exist (please change entry in plant 8881)

Message no. 06849

Check Step5

8. Not possible to determine shipping data for material & Message no.06280

This Error Message will not come in inter company stock transport orders & Will only come in Intra company STO with Delivery & W/o Billing

-End Of Document

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Source: https://blogs.sap.com/2013/09/05/inter-company-sto-with-sd-delivery-billing-liv/

Intercompany Sales Process

 In this document, I will explain the details of the Intercompany sales process along with the configuration steps.

Intercompany – Company codes of the same organization

Sales – Selling of goods from one company code to another company code of the same organization. 

Customer 1000 & Material 5000
Company Code 1234	Company Code ABCD
Sales Org 1234	Sales Org ABCD
Plant P123	Plant PABC

1. Customer 1000 punch an order to Sales org 1234 for the material 5000
2. Sales org 1234 find the material 5000 is not available in plant P123
3. Sales org 1234 decides to purchase the material 5000 from Plant PABC of Sales org ABCD
4. Since Company Code 1234 and Company Code ABCD belong to the same organization the above movement refers as Intercompany process in SAP

Hence Receiving sales org will be 1234 and suppling Sales org will be ABCD. Mentioned below the configuration steps to implement the above business process.

Configuration Steps :

STEP 1: Intercompany Document type

Assign Intercompany document type to Sales document types in order to use the Intercompany sales process

Path: SPRO – IMG- Sales and Distribution –Billing-Intercompany Billing – Define Order types for Intercompany billing

STEP 2: Plant Assignment

i) Assign Supplying plant to Suppling sales area (i.e.,) PABC plant will be assigned to ABCD AB AB sales area. This would be done in enterprise structure assignment and the same can be seen in the below path.

Path: SPRO – IMG- Sales and Distribution –Billing-Intercompany Billing –Define Organizational Units by Plant

ii)Assign the Supplying plant to receiving Sales Org and Distribution Channel.(i.e.,) PABC plant will be assigned to 1234 12 12 sales area

Path: SPRO- IMG- Enterprise Structure-Assignment- Sales and Distribution-Assign Sales Organisation-distribution channel-plant

STEP 3: Internal Customer Creation

i) Since Sales Org 1234 is requesting the Sales org ABCD to deliver the material, Sales Org 1234 will become a customer to Sales Org ABCD. Hence create Customer XYZ in sales org ABCD

XD01 – XYZ for ABCD AB AB Sales area

ii)Assign the created customer XYZ to sales org 1234

Path: SPRO – IMG- Sales and Distribution –Billing-Intercompany Billing –Define Internal customer number by the Sales organization

Conclusion :

This completes the configuration steps for Intercompany Process.

Now the Sales org 1234 will be able to supply the material from PABC plant to end customer

Source: https://blogs.sap.com/2020/11/24/intercompany-sales-process/

Two Step Cross Company replenishment (Inter-Company STO) Valuation at supplying/receiving plant S4H

 Cross Company replenishment (Inter-Company STO) with Valuated Stock in Transit is a widely used Process in all the organizations.

This document will cover Cross Company replenishment (Inter-Company STO) with valuation of material at supplying plant until the goods receipt is performed in receiving plant in an integrated EWM system where material is serialized and batch managed.

In general Inter-company STO process with NLCC delivery type. The valuation also goes in transit and lot of organization face problem in closing books at month ends and year ends. To solve this problem SAP provides multiple option as below.

1. Keep valuation at supplying plant until goods receipt is performed with Outbound Del Type NCC2/NCC3
2. Transfer valuation to receiving plant at goods issue with Outbound Del Type NCCR

In both cases the valuation of material rests either in supplying or receiving plant. And not in transit.

 

The below document will show case Keep valuation at supplying plant until goods receipt is performed. Del Type NCC2/NCC3

In the example below we will be sending material from a US plant/company code to UK plant/Company code.

Supplying plant will have the below nomenclature company code US11 Plant US11, sales org US11 distribution channel 01, division 01, shipping point US11

 

Receiving plant will have the below nomenclature company code GB11 Plant GB11, Purchase org GB11

Please Zoom in to see above flow.

 

Prerequisite:

Standard Order type NB or a copy of it.

A Business partner (Vendor) and Business partner (Customer).

We will use Business partner (Vendor)BPUS11 will be representing the supplying plant US11 in system and Business partner (Customer) BPGB11 will be representing the receiving plant GB11.

Delivery type NCC2/NCC3 and schedule line N2/N3 respectively.

Also note in case of EWM managed even though we take N2 but it will behave like N3 this is explained below in in the point proof of delivery.

Below is the link from help.sap where a complete guide for various scenarios is explained with process flow.

https://help.sap.com/viewer/91b21005dded4984bcccf4a69ae1300c/1709%20002/en-US/f14117f338cb417c8da3603e41ae77d9.html

 

Assign the Delivery type NCC2/NCC3 to Purchase order type NB.

In case business needs STO stock from supplying plant to be reserved for purchase order and not to be allotted to sales order than please assign availability check ‘A’.

SPRO -> Materials Management -> Purchasing -> Purchase order -> Set up Stock Transport Order -> Configure Delivery Type & Availability Check Procedure by Plant

It would require inbound delivery type ELST for an inbound delivery EL inbound delivery type is not applicable in case of transfer of title.

Both the Delivery type ELST -> item category ELST and Delivery type NCC2/NCC3 -> item category NCC2/NCC3 delivery type will require assignment as below.

SPRO -> Logistics Execution -> Shipping  Deliveries ->Define Item Category Determination in Deliveries

 

Here entry for CHSP is required to make sure batch split is adopted in inbound delivery from outbound delivery.

And both delivery types and item categories need to be assigned to EWM delivery type as below.

SPRO -> SCM Extended Warehouse Management -> Extended Warehouse Management -> Interfaces -> ERP Integration -> Delivery Processing -> Map Document Types from ERP System to EWM

SPRO -> SCM Extended Warehouse Management -> Extended Warehouse Management -> Interfaces -> ERP Integration -> Delivery Processing -> Map Item Types from ERP System to EWM

Note: EWM delivery type should be discussed with EWM consultant on your team as he could be using some Z delivery types.

It is highly advisable to trigger an automatic Inbound delivery at the time of Goods issue you can use SPED output type, please check the below link for it. It is favorable for business to have automated inbound and important in EWM environment as automatic Inbound will capture handling units, serial number and batch along with generic information.

https://blogs.sap.com/2014/10/06/inbound-delivery-automatic-creation-from-outbound-delivery/

 

this process will also require Proof of delivery as a must, NCC2 should be marked POD relevant.

SPRO -> Logistics Execution -> Shipping -> Deliveries -> Proof of Delivery -> Set POD-Relevance Depending on Delivery Item Category

And make customer POD relevant in sales and distribution -> shipping tab.

Another piece of configuration required will be to update 681 movement type if you choose to use. As to fulfill this process This will be achieved by adding entry in V_156SC_VC and T156SY in transaction SM30

 

Billing can be done either from copying the values from PO or the outbound delivery.

Case 1 copying values from billing

SPRO -> Sales and Distribution -> Billing -> Billing Documents -> Maintain Copying Control for Billing Documents -> Copying control: Delivery document to billing document

Go to above path and assign IV billing type to NCC2/NCC3

USE Print Source A purchase order.

 

Also create same conditions in V/06 and assign them in sales pricing procedure. For Example if you are using condition type P101 for fetching sending plant material price create P101 in V/06 and assign Ref Condition Type P101 and Ref. Application “M”. if you are creating more conditions which should carry the price from PO please do the same for all the conditions.

Case 2 copying values from Outbound Delivery

SPRO -> Logistics Execution -> Basic Shipping Functions -> Pricing -> Define Pricing Procedures for Delivery

Define a pricing procedure in delivery.

 

SPRO-> Sales and Distribution -> Billing -> Billing Documents -> Maintain Copying Control for Billing Documents -> Copying control: Delivery document to billing document

Go to above path and assign IV billing type to NCC2/NCC3

 

USE Print Source D Delivery.

 

Create a Business partner and assign the supplying plant US11 in the vendor general data tab.

 

Business partner (Customer) BPGB11 will be representing the receiving plant GB11.

 

And assign the above customer in the plant

SPRO àMaterials Management à Purchasing à Purchase order à Set up Stock Transport Order à Define Shipping Data for Plants

Process flow is as below.

Create a purchase order

Release PO if release strategy is applicable.

Create Outbound delivery with VL10B

 

 

Post goods issue movement in EWM with transaction /SCWM/PRDO

 

 

The value is still in company code/plant US11 as we can see from above accounting entries.

Next step is to perform Proof of delivery when goods are received in receiving plant, transaction VLPOD.

Proof of delivery triggers the change of title or transfer of valuation to receiving plant. And creates another material document.

On the POD Overview tab, the selection field for specifying the issuing valuated stock in transit contains the value 2 (Goods Issue from Issuing Stock in Transit to Receiving Plant) will not appear as per the below note.

https://launchpad.support.sap.com/#/notes/1842901

Outbound delivery flow as below appears

And the material document posted will have accounting for both sending and receiving plant(CO-Cd)

Purchase order history is also updated at this stage with movement type 685,107.

 

But stock is still in transit at this stage. GR must be posted after this in EWM system with transaction /SCWM/PRDI. The next step of actual goods receive will not trigger any financial entry.

Customer Billing shall be posted with VF01 or VF04 batch job

And Vendor invoice shall be done MRRL as we have assigned ERS tick to vendor. I have adopted MRRL to automate the vendor invoice otherwise MIRO can be used.

We can also trigger standard output type RD04 in Customer Billing it will trigger an Idoc in background to post a FB01 Vendor Invoice and it will post vendor invoice in the background. But the downside will be that Vendor Invoice will never appear on PO history tab.

Source: https://blogs.sap.com/2019/10/01/two-step-cross-company-replenishment-inter-company-sto-valuation-at-supplyingreceiving-plant-s4h/