Advanced Intercompany Sales in SAP S/4HANA OP/Private Cloud

[Kaz_Iwamoto]

Introduction

This blog is for SD & MM consultants. This functionality can be used from SAP S/4HANA OP2022, OP2023 version and SAP S/4HANA Cloud, private edition.

What is Advanced Intercompany Sales

Classic Intercompany Sales was developed in order to reduce documents between intercompany trading since SAP R/3. However, for audit and IFRS reasons Classic Intercompany Sales is not good enough.

Because Classic Intercompany Sales has no Sales Company’s Purchase Order, no Delivery Company’s Sales order, no supplier invoice verification and no valuation stock.

So, Advanced Intercompany Sales was developed.

The Advanced intercompany Sales has Sales Company’s Purchase Order, Delivery Company’s Sales order, supplier invoice verification and valuation stock.

2 Create a sales order manually or by a job

5 Create a delivery document manually or by a job

C Create a billing document manually or by a job

A Create a billing document manually or by a job

6 Stock Transfer to Stock in Transit by post GI manually or by a job (TM, EWM, 3PL etc. also)

3,4, Created a purchase order and a sales order automatically by Value Chain Monitor (VCM) after the leading sales order saved

7a,7b1,7b2,8 Created Material documents automatically after internal or external transfer of control date by VCM

B Created a supplier invoice automatically by VCM after 7

 

Pre-requisite

SAP S/4HANA OP2022 FPS00 or upper version. Fiori server must be installed.

 

Customizing

Please see the below SAP Note.

3233830 - Configuration Steps for Advanced Intercompany Sales in SAP S/4HANA

3283316 - Scope activation of Technical Job Definitions in VCM processes

Or

Bast Practice Advanced Intercompany Sales (‏5D2‏)

And make sure the job settings of 3283316 - Scope activation of Technical Job Definitions in VCM processes

IMG>ABAP Platform>Application Server>System Administration>Activation of Scope-Dependent Background Job Definitions (Tr-CD: S_YI3_39000188)

Tr-CD: SJOBREPO

You can customize the job.

Select the line and push "Customize" button

 

 

Master

Business Partner

Assign plant to Business Partner. This Business partner master is used for creating the internal purchase order automatically.

Business partner for intercompany sales

 

Price

Sales company’s Internal purchase price and production company’s Internal sales price should be exactly same. Otherwise, the internal invoice verification will fail.

Intercompany Purchase Order

Intercompany Billing document

Operation

This operation works in Best Practice.

Create a sales order from a customer. (Fiori Apps or VA01)

Set Sales Order Type and Sales Area.

 

Set sold-to party and Customer reference number.

Set material number and quantity.

If the plant is 1010(Sales company), change plant to 1710(Delivery Company).

Save the sales order.

Note: To check if the advanced Intercompany Sales on. You can check the sales item's shipping view. (Tr-CD: VA03)

Create a delivery document from the sales order.(Fiori Apps or VL01N)

Select the sales order and push "Create Deliveries".

Picking for the delivery document.(Fiori Apps or VL06O)

Push “For Picking”.

Set shipping point.

 

Push “Execute” button.

Select the delivery document.

Push “Change Outbound Deliveries”.

Set the picked quantity and Save it.

Good Issue for the delivery document.(Fiori Apps or VL06O)

Push “For Goods Issue”.

Set the shipping point.

Push “Execute” button.

 

Select the delivery document.

Push “Post Goods Issue”.

Push “Continue”.

Stock Transfer to SiT 1710 in background cause the post GI.

Good Issue for OD into SiT (GIOD)

Create a billing document for the delivery. (Fiori Apps or VF01)

Select the line billing for the customer and push “Create Billing Documents”.

Billing document to the customer

Push “Save” button.

Push “Post Billing Document”.

Create a billing document for the sales company.

Select the delivery document and push “Create Billing Documents”.

Internal Billing document from 1710 to 1010

Push “Save” button.

Push “Post Billing Document”.

Monitor through the Fiori Apps “Monitor Value Chains”.( F4854)

Push “>”.

You can see the leading sales order business process detail. Push “Information” button.

It shows the creation date for the Material document from SiT to Issue & GR for SiT.

• The automated stock in transit postings are based on the internal and external transfer of control dates.
  
  
  
  • Postings will be executed in case the actual transfer of control date or the planned date plus offset is in the past.
  
  
  
  

 

The date is set from the leading sales order’s delivery date.

Automatically generated purchase order’s due date is also same date.

Automatically generated Internal sales order’s due date is also same date.

Push “Process Flow”.

You can see graphical chart of the business process.

 

After the job due date came, you can see every documents were completed.

Post GI from Issuing SiT (GIFV) created by Job

Post GR to Storage Location (GRTS) created by job

Post GI from Storage Location (GIFS) created by job

Post GI from SiT to Customer (GITC) created by job

Created Invoice Verification created by job

 

Conclusion

You understand how Advanced Intercompany Sales works.

Appendix

Help:

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/f132c385e0234fe68ae9ff35b2da178c/c4b704762cbd4611a3e...

Best Practice

Advanced Intercompany Sales (‏5D2‏)

SAP Note:

3366067 - SAP S/4HANA 2023: Restrictions and General Information for Advanced Intercompany Sales

3226683 - SAP S/4HANA 2022: Restrictions and General Information for Advanced Intercompany Sales

2190119 - Background information about SAP S/4HANA technical job repository

2849364 - Jobs in the Technical Job Repository (SJOBREPO) in SAP S/4HANA 2021

3195909 - Jobs in the Technical Job Repository (SJOBREPO) in SAP S/4HANA 2022

2734777 - SJOBREPO: Technical Job Repository is not scheduling jobs in a client

3236399 - FAQ - Technical Job Repository (SJOBREPO)

3324421 - How long it will take effect after re-activating the jobs manually in SJOBREPO

3387903 - Standard jobs defined in job repository got cancelled after post processing

3367374 - Job SAP_RFM_REPLNMT_CONSTCY_CHK failed

3397763 - If it is possible to transport the changings of one standard job in SJOBREPO

3157252 - Background job /SAPAPO/OM_LCAALERTS Runtime error MESSAGE_TYPE_X_TEXT - Netweaver

3211320 - Mass Resolution of Issues in Processes Tracked by the Monitor Value Chains App

2816000 - CVI_VAL: Message "& plant already assigned to vendor &. Specify another Plant." (CVIV_UI 1...

Fiori Apps Library

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/index.html#/detail/Apps('F4854')/S...

Video

Advanced Intercompany Sales

Related SAP Blog

Advanced Intercompany Stock Transfer in SAP S/4HANA OP/Private Cloud

Advanced Intercompany Sales & Stock Transfer in SAP S/4HANA Cloud

Related QA

https://answers.sap.com/questions/13830110/advanced-intercompany-sakes.html

 

Brought to you by the SAP S/4HANA Customer Care and RIG

[brahms86]

Thank you for sharing. Question: Is there also support for the delivering company being on a separate (physical) system, or e.g. one company being on a S/4 HANA private cloud and the selling company being on a S/4 HANA public cloud deployment?

[Kaz_Iwamoto]

Hello Steffen,

This function works only in same S/4HANA client.

Best regards, Kaz

[jnalawade]

Thank you so much for this informative blog on Adv. Intercompany sales and billing.

I have a question- Is it possible to implement this functionality with Service material without delivery?

[Kaz_Iwamoto]

Hello Jayant,

This function expects only stock material.

Best regards,

Kaz

[former_member863994]

Hello Kaz,

Thanks a lot for such an informative and detailed structured blogs.

Just wanted to check by when we can get hands on Multi-Level Advance Inter-Company Scenarios.

 

There are few queries could you please explain on that :-

1. Why system doesn't allow to manually add or change the Payment term & Incoterm in the CBIC Sales document, that field is always grayed out , if it is not properly determined from the Master Data.


2. Why we need to have Payment term field determination at header and item level both separately in the CBIC Sales document.


3. If other document have any issue that can be resolved and we have option to reprocess it so that document can be corrected and follow on document can be generated or processed easily, but unfortunately, we don't have that option in CBIC Sales documents.


4. Status in the VCM its shows completed even though there are issue with document such as incomplete document either because of pricing issue or some other data issue which couldn't be able to determine properly and once document shows completed, we don't have options to reprocess the document post fixing the errors or incompletion.

Could you please help us above query.

Thank,

Abhishek Suman

[former_member308677]

Hello Kaz,

Thanks for sharing this. I've a few questions:

1. Does this work with Batch Management, i.e. the relevant batch information including batch characteristics are passed on to the participating parties?


2. Does this work with Commodity Pricing, i.e. if the Selling Company is using Commodity Pricing, they should be able to raise the Provisional / Final Invoice based on information passed on (including from Delivery by Delivering Company) to derive and calculate the price accordingly (market price, bonus/ penalty calculation)?

[Kaz_Iwamoto]

Hello Hendrik,

1. I think this function doesn't support batch management. Please test it.


2. Commodity management is not supported by this function. See below SAP Note.

3226683 – SAP S/4HANA 2022: Restrictions and General Information for Advanced Intercompany Sales

[nabanitapal14]

Hi .. This is a great blog with comprehensive information. I have done set up as per best practices but automatic Sales Order and Purchase Order are not getting created. Kindly confirm the component which I can report this as Incident. Will SD-SLS will be sufficient or any other component specific to this is there ?

[Kaz_Iwamoto]

Hello Pal,

Please check the customizing under "IMG>Sales and Distribution>Sales>Sales Documents>Integration With Value Chain Monitoring".

Best regards,

Kaz

[marwan_adel01_]

 

Hello Kazuhisa,

I have a question in cases where both companies are managed by EWM, our client would like to stop the automated part of the cycle where the outbound is received in the selling company and issued to the end costumer. is it possible to make this steps manual?

 

Thank you.

[Kaz_Iwamoto]

Hello Adel,

I think that EWM is not supported by this function.

Best regards, Kaz

[former_member441689]

Hello everyone,

I'm encountering a persistent issue with the value chain monitor process and am reaching out in the hopes that someone has experienced something similar and might be able to shed some light. The error message I am receiving is:

Document type CBIC (Intercompany order) does not belong to group 'Sales Order' and is not supported.

Despite extensive searches through notes, forums, and documentation, I've come up empty-handed in terms of solutions or even hints on how to address this error.

The exception was raised at CL_SD_SLS_IC_VCM_STEP_POTOSO, IF_VCM_STEP_HANDLER~EXECUTE line 96 (application component SD-SLS-SO). However, when attempting to debug, the reprocessing framework does not halt, regardless of whether I am using the internal or external debugger.

To delve deeper into this issue, I am trying to debug and trace the process to ascertain the root cause. However, I am facing difficulties using the 'where used' list for message class SLS_LORD and message number 005.

Has anyone encountered this error and if so, how did you go about debugging and resolving it? Any suggestions, tips, or insights would be highly appreciated!

Thank you in advance for your assistance.

Best regards,

Lukas

[former_member441689]

The root cause was traced back to a configuration oversight. For the CBIC sales document type, I had inadvertently left the transaction group field empty. After setting it to '0', the error was rectified.

[shreyanshbabagond]

You can enable debugging for workflow user SAP_WFRT and set an external breakpoint in IF_VCM_STEP_HANDLER~EXECUTE. It must stop here.

[SFC]

Hi, I am trying to test out this solution. However, I do not see the 'Assign Transit Plant to Company Code (Advanced ICO)' configuration item in SPRO. Do we need to specifically activate any business function? I have downloaded the set up guide but there was no mentions of the need to activate any business functions.

[SFC]

h011979_01 I read from the above comments that EWM and batch-managed items may not be supported. However, I also found batch and EWM related information from the general release note for the Advanced Intercompany Sales / STO. Are you able to confirm that these are going to work in the latest 2023 release? Are you also able to confirm whether the Advanced Intercompany STO and Sales can be used even if the Best Practices are not released for New Zealand?

Appreciate your clarification on the above.

Regards

SFC

[muna333]

Hi Nabanita/Kazuhisa,

 

I'm getting similar error. Looked at config settings. everyhting checks out good as in the config guide. When i try and do delivery, i get following error, " intercompany sales order 0000000398, item 000010 cannot be delivered message no. le_shp_vl009 system...""

Please check in Monitor value chains to see exact error. I don't see Monitor value chains app in my SAP Fiori provided to me for the SAP Practice system. it further says, 1. PO may not be created. 2. PO may be created, but on hold due to errors"

 

Just can't figure out where i got it wrong. Config checks out good.

 

Coould you guys please advice. would be grateful to you for your help

 

Thank you

[Jocelyn_Dart]

Hi SFC,

Please refer to the information in:

SAP Note No.3366067 - SAP S/4HANA 2023: Restrictions and General Information for Advanced Intercompa...

Especially see the attachments to the note for the below two documents.

For example:

5D2_Adv_ICo_Sales_General_Information_2023_OP.pdf explains some batch management scenarios are supported.

5D2_Adv_ICo_Sales_Restrictions_2023_OP.pdf explains there is current limitation about Batch cost “If the goods issue from stock in transit in the selling company has not been posted yet, batch split items in the customer invoice won’t determine costs in pricing (for example, condition type PCIP / Internal price). “

[SFC]

Hi Jocelyn,

Thanks for the response. Yes, I found the above documents and saw points mentioned about both batch and EWM. EWM are mentioned in the general information PDF so can I assume that we should be able to use EWM managed materials?

Also, can I assume that the Advanced Intercompany STO and Sales solution can be implemented in SAP S/4HANA 2023 even if it means manually configuring them in the system (since no BP scope items are rolled out for New Zealand)?

Thanks!

[muna333]

Hi Kazuhisa,

 

I'm getting similar error. Looked at config settings. everyhting checks out good as in the config guide. When i try and do delivery, i get following error, " intercompany sales order 0000000398, item 000010 cannot be delivered message no. le_shp_vl009 system...""

Please check in Monitor value chains to see exact error. I don't see Monitor value chains app in my SAP Fiori provided to me for the SAP Practice system. it further says, 1. PO may not be created. 2. PO may be created, but on hold due to errors"

 

Just can't figure out where i got it wrong. Config checks out good.

[josh_cheron]

Sri, wondering if you ever got to the bottom of the LE_SHP_VL009 message. We're getting that as well trying to delivery an adv I/C sales order. Thanks! -Josh C.

[muna333]

Hi Josh,

 

Apologies for the delayed response. back after a long time off. Unfortunately. yet to get to the bottom of it Josh. Did you get on top of it?

 

Regards,

 

Sri Krishna

[josh_cheron]

Hi Sri Krishna. We might have made a little progress. We changed some event type linkages, adjusted our I/C customer to sales org assignments that were wrong based on copying from older sales orgs to create newer ones.

[muna333]

Hi Josh,

 

Thank you for the input. In my case, the type linkages for VCM were left unticked. no problems there. Could you please expand on the adjustments made to  I/C Customer to Sorg assignment with a few examples if you don't mind please?

 

Thank you

[muna333]

Hi Josh,

 

In my case, event type linkages - enable events for VCM were left unchecked. Could you please expand on the adjustments made to I/C Customer to Sorg Assignments with few examples?

 

Thank you,

 

Krishna

[josh_cheron]

No worries. The I/C customer we had tied to the selling sales org was one for a totally unrelated relationship. Just had to replace the copied one with the correct one.

[muna333]

Ok. Thank you. my end, this seems alright too. didn't assign I/C Customer any new Sorg created by copying older ones. Just used existing one on the training system.

Thank you

[Kaz_Iwamoto]

Hello Siow,

You might implement this function into lower version than OP2022.  OP2022 or upper version is needed for this function.

Best regards, Kaz

[Kaz_Iwamoto]

Hello Abhishek,

Please see

3366067 – SAP S/4HANA 2023: Restrictions and General Information for Advanced Intercompany Sales

3226683 – SAP S/4HANA 2022: Restrictions and General Information for Advanced Intercompany Sales

Best regards, Kaz

[AnkurGoyal]

Is Multi-level Advanced intercompany stock transfer process available now in S4 HANA 2023, our business need is to have an intermediate company between the shipping and receiving company.

Thanks,

Ankur Goyal

[Jayshree_Ravi]

Hi

It appears that 5D2 is not supported for MTO (Make to Order) scenario along with other restrictions as mentioned below.  Any idea when that will be available? 

• Event-based revenue recognition does not support advanced intercompany sales with WBS (work breakdown structure) elements
• Integration of IBP Response and Supply with advanced intercompany sales is not supported
• The intercompany supplier invoice is created without an attachment, for example, the intercompany customer invoice is not attached as pdf file.
• Sales bill of material (BOM) creating subitems
• Advanced ATP creating subitems
• Free goods creating subitems
• Service Materials
• Preliminary billing documents etc.

This means that we may need to stick with 1MX, From a future roadmap will SAP continue to support both 1MX and 5D2? Also many of the Documents and Notes are for versions 2022 and 2023. I am unable to find 2402 documents.

Can you please advise?

Jayshree