Intercompany Sales: Configuration Steps in SAP SD

Intercompany sales in SAP SD (Sales and Distribution) refer to transactions that occur between different company codes within the same corporate group. In this process, one company code (referred to as the selling company) sells goods or services to another company code (referred to as the receiving company) within the same organization. The goal of intercompany sales is to streamline internal transactions, optimize accounting processes, and ensure accurate reporting for tax purposes.

In this tutorial, we will guide you through the key configuration steps to set up intercompany sales in SAP SD. We will also use a real-world example to make the process clearer.

Overview of Intercompany Sales Process

The intercompany sales process involves several steps that need to be configured in SAP SD. These include:

  • Creating intercompany sales orders.
  • Configuring the relevant sales document types for intercompany sales.
  • Setting up pricing, billing, and delivery processes for intercompany transactions.
  • Maintaining intercompany customer and vendor master data.
  • Handling the accounting entries between company codes.

Step-by-Step Configuration of Intercompany Sales in SAP SD

Step 1: Define Sales Document Types for Intercompany Sales

The first step is to define the sales document types specifically for intercompany sales. These document types are used to distinguish intercompany transactions from regular sales transactions.

To configure the sales document type for intercompany sales:

  1. Go to transaction SPRO and navigate to Sales and Distribution → Sales → Sales Documents → Define Sales Document Types.
  2. Click on New Entries to create a new sales document type.
  3. Enter the following details:
    • Sales Document Type: Enter a code for intercompany sales (e.g., IV for intercompany sale).
    • Description: Enter a description (e.g., Intercompany Sale).
    • Order Category: Select OR (standard order) for the order category.
  4. Click Save to save the sales document type.

Step 2: Define Item Categories for Intercompany Sales

Item categories define how the items in an intercompany sales order are processed. For intercompany sales, you must configure an item category that ensures proper accounting and stock transfer between the selling and receiving company codes.

To configure the item category:

  1. Go to transaction SPRO and navigate to Sales and Distribution → Sales → Sales Documents → Define Item Categories.
  2. Click on New Entries to create a new item category.
  3. Enter the following details:
    • Item Category: Enter a unique identifier (e.g., TAN for standard intercompany item).
    • Item Category Group: Select Intercompany Item for the item category group.
    • Account Assignment Group: Choose the appropriate account assignment group for intercompany transactions.
  4. Click Save to save the item category.

Step 3: Configure Intercompany Pricing Procedure

For intercompany sales, a unique pricing procedure needs to be defined, as different pricing rules apply to internal transactions. This includes setting up condition types for pricing, surcharges, and discounts specific to intercompany transactions.

To configure the pricing procedure:

  1. Go to transaction SPRO and navigate to Sales and Distribution → Basic Functions → Pricing → Pricing Control → Define Pricing Procedures.
  2. Click New Entries to create a new pricing procedure for intercompany transactions.
  3. Enter the following details:
    • Pricing Procedure: Enter a unique code for intercompany pricing (e.g., IC01).
    • Description: Enter a description (e.g., Intercompany Pricing).
  4. Assign relevant condition types for intercompany pricing (e.g., intercompany discounts, surcharge, and tax conditions).
  5. Click Save to save the pricing procedure.

Step 4: Define Delivery Types and Shipping Points

For intercompany sales, delivery types must be defined to control how the goods are delivered between the selling and receiving company codes. You also need to assign the appropriate shipping points to ensure smooth delivery processing.

To configure delivery types and shipping points:

  1. Go to transaction SPRO and navigate to Sales and Distribution → Shipping → Deliveries → Define Delivery Types.
  2. Click New Entries to create a new delivery type for intercompany sales.
  3. Enter the following details:
    • Delivery Type: Enter a unique delivery type code (e.g., IV01 for intercompany delivery).
    • Description: Enter a description (e.g., Intercompany Delivery).
  4. Click Save to save the delivery type.

Step 5: Set Up Billing Types and Billing Document

The next step is to configure the billing type used for intercompany sales. Intercompany billing is typically done using a different billing type than regular customer billing.

To configure the billing type:

  1. Go to transaction SPRO and navigate to Sales and Distribution → Billing → Billing Documents → Define Billing Types.
  2. Click on New Entries to create a new billing type for intercompany transactions.
  3. Enter the following details:
    • Billing Type: Enter a unique billing type code (e.g., IV for intercompany billing).
    • Description: Enter a description (e.g., Intercompany Billing).
  4. Click Save to save the billing type.

Step 6: Configure Accounting Entries for Intercompany Sales

Intercompany sales require specific accounting entries to be posted between company codes. These entries need to be configured to ensure that the financial transactions are recorded correctly.

To configure the accounting entries:

  1. Go to transaction SPRO and navigate to Sales and Distribution → Basic Functions → Account Assignment → Define Account Determination for Intercompany Sales.
  2. Set up account determination rules for intercompany sales, including the relevant GL accounts for revenue and intercompany transactions.
  3. Click Save to save the configuration.

Real-World Example of Intercompany Sales

Consider a scenario where Company A (based in the US) sells goods to Company B (based in Germany), both of which are part of the same corporate group:

  • Step 1: A sales order is created for Company B, using the intercompany sales document type.
  • Step 2: The item category is configured for intercompany sales, and pricing is determined using the intercompany pricing procedure.
  • Step 3: A delivery type and shipping point are assigned to the sales order for the goods to be transferred from Company A to Company B.
  • Step 4: The billing document is generated for intercompany billing and accounting entries are posted between the company codes.

Conclusion

Intercompany sales in SAP SD allow for seamless transactions between different company codes within the same corporate group. By following the steps outlined in this tutorial, you can configure intercompany sales in your SAP system. This process helps streamline the internal sales process, ensuring accurate billing, delivery, and financial postings for intercompany transactions.




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