Inter-company sales scenario

[ah_han]

Hello,

I would like to know who will deliver the product to the end customer in Inter-company Sales scenario?

I read through blog and found that the supplying organisation will deliver the product. So if this is the case, then does it not become Third-Party Sales?

Can someone please explain who does the delivery in inter-company sales scenario?

Thank you

[raymond_giuseppi]

Perform some search on Cross Docking vs. Drop Shipping.

[sanilbhandari · Accepted solution]

Hi

You are correct to an extent. The only difference is that the delivering company is a related entity in a Corporate Group, so when the financials of the Group are consolidated, the mark up (Intercompany Profit) between delivering and selling companies should be eliminated. However, at an entity level, the revenue and cogs are still valid.

Hope this clarifies.

Thanks & Regards

Sanil Bhandari

[ah_han · Accepted solution]

Thank you so much

[Neeraj_Jain]

Hello ah_han,

For detailed understanding please refer below SAP thread. Hope it's helpful to understand the concept.

https://answers.sap.com/questions/3428975/difference-between-3rd-party-sales--intercompany-s.html

Regards,

Neeraj Jain

[ah_han]

Thank you