LO925 Cross-Application Business Processes in SD and MM PDF

LO925 Cross-Application Business Processes
in SD and MM
LO925
Release 630 21.11.2003

LO925 Cross-Application Business Processes in
SD and MM
LO925
Cross-Application
Business Processes in
SD and MM
 SAP AG 1999
 R/3 System
 Release 4.6C
 November 2000
 Material Number 50040301
Copyright
Copyright 2002 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
 SAP AG 2002
Notes on Trademarks:
 Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors.
® ® ® ® ® ® ®
 Microsoft , WINDOWS , NT , EXCEL , Word , PowerPoint , and SQL Server are registered
trademarks of Microsoft Corporation.
® ® ® ® ® ® ® ® ®
 IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 ,
® ®, ®
AS/400 , OS/390 and OS/400 are registered trademarks of IBM Corporation.
®
 ORACLE is a registered trademark of ORACLE Corporation.
® ® TM
 INFORMIX -OnLine for SAP and INFORMIX Dynamic Server are registered trademarks
of Informix Software Incorporated.
® ® ®, ®
 UNIX , X/Open , OSF/1 and Motif are registered trademarks of the Open Group.
®
 HTML, DHTML, XML, and XHTML are trademarks or registered trademarks of W3C , World
Wide Web Consortium, Massachusetts Institute of Technology.
®
 JAVA is a registered trademark of Sun Microsystems, Inc.
®
 JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for
technology developed and implemented by Netscape.
 SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow,
WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo, and
mySAP.com are trademarks or registered trademarks of SAP AG in Germany and several other
countries all over the world. All other products mentioned are trademarks or registered trademarks of
their respective companies.
Sales and Distribution
Level 2 LO605 5 days Level 3 @LO605a 1,5 h

Sales Dynamic Product
LO610 2 days
Proposal @
Delivery Processes
@LO605b 1,5 h
LO611 3 days
Transportation
Cross Selling
@
LO615 2 days
LO650 3 days
Billing
LO150 5 days Cross Functional
Processes in Sales Customizing in SD
LO620 3 days
and Distribution
Pricing in SD
LO640 3 days
Foreign Trade
LO645 2 days
Credit and Receivables
Risk Management
LO925 2 days
Cross Application
Business Processes
in SD and MM
 SAP AG 1999
Materials Management
Level 2 Level 3
LO510 3 days
Inventory Management
LO515 3 days
LO550 5 days
Invoice Verification
Cross-Functional
LO520 3 days Customizing in MM
Purchasing Details and LO521 2 days
Optimization Pricing in Purchasing
LO020 5 days
LO525 2 days
Processes in Consumption-Based
Procurement Planning and
LO955 3 days
Forecasting
Batch Management
LO540 2 days
Procurement of
External Services
LO925 2 days
Cross-Application
Business Processes in
SD and MM
LO640 3 days
Foreign Trade LO235 2 days
KANBAN
LO715 2 days
QM in Procurement
 SAP AG 1999
Course Prerequisites
 LO150 Sales Processes

or
LO020 External Procurement Processes
 Knowledge of these separate applications
 SAP AG 1999
Target Group
 Participants:
 Staff in the project team who are responsible for
implementing cross-application business processes in
sales and materials management
 Duration: 2 days
 SAP AG 1999
Notes to the user

 The training materials are not teach-yourself programs. They compliment the course instructor's
explanations. On the sheets, there is a space for you to write down additional information.
Course Overview
Contents:
 Course Targets
 Course Objectives
 Table of contents
 Course Overview Diagram
 Main Business Scenario
 SAP AG 1999
(C) SAP AG LO925 1-1

Course Goals
This course will enable you to:

 Process and implement selected, cross-
application business processes in Sales and
Materials Management
 SAP AG 1999

Course Objectives
At the conclusion of this course, you will be able to:
 Execute the cross-application business

processes for third-party order processing, cross-
company sales, stock transfer, and
subcontracting in the SAP R/3 System
 Outline the most important setting options in
Customizing
 SAP AG 1999

Table of contents
Introduction
Unit 1 Course Overview Unit 4 Intra-Company Stock

Transfer
Unit 2 Third-Party Order
Processing Unit 5 Cross-Company Stock
Transfer
Unit 3 Cross-Company Sales
Processing Unit 6 Subcontracting
Unit 7 Conclusion
Appendix
 SAP AG 1999

Course Overview Diagram
delivers delivers
Customer Vendor Customer Plant
orders orders orders Company 2
Sales Sales
organization organization
Company 1
Company code
Third-Party Order Processing Cross-Company Sales

orders Subcontractor
Plant 2 Company 2 (vendor)
Plant 2
delivers delivers
orders delivers
orders delivers
Plant
Plant 1 Plant 1 Company 1 Company

Company
Intra-company Cross-company Subcontracting

stock transfer stock transfer
 SAP AG 1999

Main Business Scenario
 The company includes external partners or

partners belonging to the corporate group in the
sales and production process.
 SAP AG 1999

Third-Party Order Processing
delivers
Customer Vendor
orders orders
Sales
organization
Company
 SAP AG 1999
 In third-party order processing, the goods ordered by the customer are not delivered by your
company (in the diagram above, your company is represented by the term “company”). Instead, you
pass on the order to an external vendor, who then sends the goods directly to the customer and sends
the invoice to you.
 The purchase order of your customer is entered in a sales organization of your company as a sales
order.
 Afterwards, a purchase order for the external vendor is created in your company.
 Contrary to a cross-company sales activity, the vendor is not an associated company that operates in
the same R/3 client.

Cross-Company Sales
Customer delivers
Plant
orders
Company 2
Sales
organization
Company 1
 SAP AG 1999
 In the case of cross-company sales activities, you also have a different company delivering the
ordered goods. The selling and the delivering companies are associated partners that work in the
same R/3 client.
 The cross-company sale is characterized by the fact that the sales organization in which the sales
order is entered and the plant from which the goods are to be delivered are in different companies
(company codes).
 Since both companies create their own separate financial statements, the delivering company must
bill the ordering company for the goods.

Stock Transfer
Company
2
Plant 2 Plant 2
orders delivers orders delivers
Plant 1 Plant 1
Company Company
1
Intra-company Cross-company
 SAP AG 1999
 In a corporate enterprise, goods movements do not refer exclusively to goods receipts and goods
issues from or to an external business partner (vendor, customer). Due to the different organization
methods that may exist (for example, you have a de-centralized warehouse in your company) or the
sales policies of the company, internal stock transfers within the company can occasionally be
required.
 In such cases, the goods exchange takes place between 2 plants or between two storage locations
within a plant. However, the stock transfer “storage location to storage location” will not be dealt
with in this course.
 The plants involved in the stock transfer can also belong to two different companies within the
enterprise (cross-company stock transfer).
 You have different methods available for processing a stock transfer between 2 plants. Some of these
methods use SD and LE functions in addition to the MM component. In the units on stock transfers,
we use the Logistics Execution component, and the stock transfer process is initiated by a purchase
order.

Subcontracting
(vendor)
delivers delivers
Plant
Company
 SAP AG 1999
 In subcontracting, the vendors receive materials (components) from which they manufacture finished
products.
 This process is initiated by a purchase order for a finished product at the subcontracting company.
Then the components are supplied to the vendor.
 The components that are delivered to the vendor are managed as “stock of material provided to
vendor”.
 As soon as the vendor has produced the ordered material or refined it in some way, he/she returns it
to the ordering plant. At this point, the consumption of the components is usually posted.
(C) SAP AG LO925 1-10

Contents:
 Creating a Sales Order
 Creating a purchase order
 Posting goods receipt
 Posting invoice receipt for purchase order
 Invoicing the sales order
 SAP AG 1999

Third-Party Order Processing:
Unit Objectives
At the conclusion of this unit, you will be able to:
 Provide third-party order processing for certain materials

 Create a sales order with a third-party item
 Determine the respective purchase requisition
 Explain how third-party order processing is automatically
triggered from a sales order
 Convert the automatically-created purchase requisition into a
purchase order
 Post goods receipt for a purchase order with a third-party
item
 Explain which accounts are to be posted to through the
goods receipt and with what amounts
 Post the invoice receipt manually for invoice verification and
explain which accounts are posted to during these activities
 Bill the sales order
 SAP AG 1999

Third-Party Order Processing: Overview Diagram
delivers Customer
delivers
Customer Vendor Plant
Sales Sales
Company 1
Company code

Plant 2
delivers delivers
orders delivers
orders delivers
Plant

Company

 SAP AG 1999

Business Scenario
 In certain sales activities, the company arranges

for direct delivery of goods from the vendor to the
customer, without the goods having to be
processed through the company's own warehouse.
 SAP AG 1999

Process for Third-Party Order Processing
delivers
Customer 2004 Vendor 1010
bills orders reports

delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
 SAP AG 1999
 The purchase order of the customer is first entered in a sales organization of your company as a sales
order (application SD). A purchase requisition is automatically created from the order.
 Afterwards, a purchase order for the external vendor is created in the MM purchasing application.
This order states that all goods are to be delivered directly to the customer.
 As soon as the vendor confirms to you that the outbound delivery is complete, you post a goods
receipt so that this information is recorded in the system.
 In the application MM Invoice Verification, you enter the invoice issued by the vendor to your
company for the goods delivered by the vendor to the customer.
 Finally, you generate the SD billing activities to your customer.

1st Process Step: Create Sales Order
delivers

delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
 SAP AG 1999
 Third-party order processing is initiated when you enter a sales order with a third-party item. Either
the order consists partially of third-party items or all the items in the order are third-party items.
 Depending on how your system is configured in Customizing, third-party item categories can be
determined automatically by the system for the respective materials. ("Automatic third-party order
processing")
However, so that you can process materials that you normally deliver yourself as third-party items,
you can manually change a standard item into a third-party item by entering the respective item
category. ("Manual third-party order processing")
 During automatic scheduling of third-party order items, the system takes into consideration the
planned delivery time from the material master, that is, the time the vendor requires to deliver the
goods. The purchasing department processing time, that is, the time the purchasing department
requires to process the third-party orders, is also included. The purchasing department processing
time is assigned to the plant in Customizing.

Creating the Purchase Requisition
Order
Customer
Item
category TAS
Purchase
requisition
Vendor
Release Item category S Source
procedure AcctAssgmtCat. X determination
 SAP AG 1999
 In standard Customizing for sales (IMG), the system is configured so that a purchase requisition is
automatically created in purchasing when you save the sales order to the database.
 Here, a separate purchase requisition item is automatically created for each third-party item. While
creating the purchase requisition, the system automatically determines a vendor for each requisition
item. If a third-party order item has more than one schedule line, the system creates a purchase
requisition item for each such line.
 You can branch to the display of created purchase requisition items from the schedule line of the
sales order.
 In the sales order, you can make subsequent changes to the quantity and delivery date for a third-
party order item. The changes you make are automatically copied into the respective purchase
requisition, provided the release status of the purchase requisition still allows this.
 The purchase requisition has the account assignment for the sales order. This account assignment
cannot be changed in the purchase requisition.

Structure of Order with Third-Party Item
Order
Header OR Sales doc. type
Item 10 TAS Item category

Schedule line
Schedule line 1 CS category
Item 20 ... Item category

Schedule line
Schedule line 1 ... category
Schedule line
Schedule line 2 ... category
 SAP AG 1999
 The sales document consists of the document header and an arbitrary number of items. Each item can
have any number of schedule lines. At the schedule line level you find the procurement and the
distribution data.
 The sales documents are customized for header, item, and schedule-line settings, in accordance with
the respective structure. The control instruments involved include the sales document type, the item
category, and the schedule line category.
 You create third-party order items by creating a standard sales order (for example, sales document
type OR for a standard order).
 Item category TAS is defined for third-party order items in standard Customizing. Also, the system
is configured so that schedule line category CS ("third-party") is determined for third-party order
items.
 The sales order can consist of further third-party order items or items with other item categories.

 For the most part, the item category depends on the sales document type and the item category group
of the material.
The two other factors, that is, item usage and the item category of the superior item, are of minor
importance in third-party order processing.
 Using the item category group, you can group different materials from the view of sales.
For example, you should assign the item category group BANS (“third-party item”) to materials
whose sales are processed solely as third-party orders. The item category assignment in the standard
system triggers off automatic determination of the item category TAS.
 The item category determined by the system can be changed if you have defined allowed alternatives
in Customizing. You typically use this option if you wish to have a material that you normally
deliver yourself delivered by an external vendor directly to the customer.

Schedule Line Category for Third-Party Order
Processing
Sched.line cat. CS "Third-party"

Movement type
Item relevant for delivery
PO type NB “Purchase requisition“

Item category 5 "Third-party"
AcctAssgmtCat. X "Auxil.accnt assignments"
Order Purchase
requisition
Save order
 SAP AG 1999
 In the standard system, schedule line category CS (“third-party”) is used to process third-party order
items.
 Since third-party order items are not supplied by your company, you do not have to post the goods
issue in your system. Therefore, the schedule line category CS in Customizing does not contain a
movement type and is not set as being relevant for delivery.
 In the standard system version, a purchase requisition is automatically created for third-party items
from the sales order as soon as the sales order is saved to the database. Also, the Customizing
settings for schedule line category CS contain the specification of a document type for the purchase
requisition, as well as the item category (with internal character representation) and the account
assignment category.
(C) SAP AG LO925 2-10

 Schedule line categories are assigned to item categories.
 The aims of this assignment are:
 To have the system automatically propose a schedule line category when the order is entered into
the system
 To define the schedule line categories that can be chosen by the user if the default value is to be
changed
 The assignment is influenced by the MRP type from the material master record.
 When automatically determining the schedule line category, the system proceeds in two steps:
 In the first step, the system tries to determine the schedule line category using the key combination
for item category and MRP type.
 If no schedule line category is found, the system searches again using the key combination for
item category and no MRP type.
 Therefore, if there are materials where the MRP type is not maintained in the material master
record, but a schedule line category needs to be found, the Customizing settings for the schedule
line category assignment must contain a line with the item category and MRP type set to blank.
This is the case, for example, for item category TAS in the standard version so that schedule line
category CS is determined by the system in this case.
(C) SAP AG LO925 2-11

2nd Process Step: Create a Purchase Order
delivers

delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
 SAP AG 1999
 In third-party order processing, purchase orders are created from purchase requisitions in the normal
way.
 When a purchase order is created, the system automatically adopts the address of the goods recipient
from the respective sales order as the delivery address.
 You can enter order texts in the sales order for each third-party order item. These are automatically
copied into the purchase order when it is created.
 The number of the created purchase order appears in the document flow for the sales order. From
there you can also branch to the purchase order.
 Third-party order items in purchase orders are marked with item category S.
 Third-party items must have an account assignment; in the standard version, account assignment
category X (“all auxiliary account assignments”) is used.
(C) SAP AG LO925 2-12

3rd Process Step: Post Goods Receipt
delivers

delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
 SAP AG 1999
 You can set the business process in such a way that the entry of the vendor invoice receipt is only
possible if a goods receipt for the purchase order was entered in the system beforehand.
 You post the goods receipt only when the vendor reports to you that they have performed the
delivery. Alternatively, you can have the receipt of the delivery confirmed by the customer.
 To be able to use this monitoring feature, set the GR indicator in the purchase order item or perform
the required settings in Customizing.
 Since no goods flow takes place in your company, the goods receipt posting serves solely as a value
update for your system.
(C) SAP AG LO925 2-13

4th Process Step: Post Invoice Receipt for
Purchase Order
delivers
Vendor 1010
Customer 2004
delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
 SAP AG 1999
 You enter an invoice receipt for the respective invoice from the vendor using the Logistics invoice
verification module.
 If goods receipt is provided for in your business process for third-party order processing, you can
only post the invoice receipt after you have entered the goods receipt into the system.
(C) SAP AG LO925 2-14

5th Process Step: Bill for Sales Order
delivers
Vendor 1010
Customer 2004
delivery
orders
bills
2 3 4
5
1 Sales
organization
1000
Company 1000
 SAP AG 1999
 As soon as the invoice receipt is recorded in the system, the customer is billed.
 The sales order is then contained in the billing due list and is processed in the next multiple
processing run for billing documents.
 The billing date relevant for this due list corresponds to the posting date of the invoice receipt
document.
 Since no outbound delivery exists in the system for third-party order items, you set the indicator for
order-related billing during selection of the documents to be billed.
(C) SAP AG LO925 2-15

Billing Relevance and Billing Quantity
Item category TAS "Third-party item"
Billing relevance F "Relevant for order-

related billing:
Status based upon
IR quantity"
Order Purchase order Goods

receipt
M-03 10 PC M-03 10 PC M-03 9 PC
Invoice Invoice
receipt to customer
M-03 9 PC M-03 9 PC
 SAP AG 1999
 If the billing-relevance indicator in Customizing is set to F ("relevant for order-related billing: Status
according to IR quantity"), the system includes the order in the billing due list only when the vendor
invoice has been received and entered into the system.
 In the copying control for sales document to billing document, the standard setting for the third-party
order item category defines that the quantity from the invoice receipt document, not the order
quantity, for example, is copied into the billing document (Billing quantity field).
(C) SAP AG LO925 2-16

Checklist for Customizing
If you are implementing user-defined objects in

sales document control:
 Definition of a third-party item category
(includes defining billing relevance)
 Maintenance of item category determination
 Definition of a schedule line category for third-
party order processing (includes assignment of
the document type for the purchase requisition)
 Maintenance of the schedule line category
determination
 Maintenance of copying control for sales
document to billing (includes determination of
billing quantity)
 SAP AG 1999
(C) SAP AG LO925 2-17

Unit Summary
You are now able to:

 Provide third-party order processing for certain
materials
 Create a sales order with a third-party item
 Determine the respective purchase requisition
 Explain how third-party order processing is
automatically triggered from a sales order
 Convert the automatically-created purchase requisition
into a purchase order
 Post goods receipt for a purchase order with a third-
party item
 Explain which accounts are to be posted to through the
goods receipt and with what amounts
 Post the invoice receipt manually for invoice
verification and explain which accounts are posted to
during these activities
 Bill the sales order
 SAP AG 1999
(C) SAP AG LO925 2-18

Third-Party Order Processing Exercises
Unit: Third-Party Order Processing

Topic: Preparations
At the conclusion of this exercise, you will be able to:

 Provide third-party order processing for certain materials
You and a vendor have agreed that the vendor will deliver a certain
material directly to your customer when you receive a purchase order for
it. This arrangement is particularly useful for this material because you
only receive orders for it occasionally and you would normally need a
delivery to ship it. So essentially, this arrangement saves you a step.
1-1 A material master record already exists for the material (T-AUC##) described
in the above enterprise scenario. The same applies for the vendor 1010. Since
you have occasionally obtained this material from this vendor before, a
purchasing info record also exists in the system.
Display the purchasing info record and use it to complete the following list:
Vendor: 1010
Material: T-AUC##
Purchasing organization: 1000
Plant: 12##
Net price: __________________________
1-2 Now maintain vendor 1010 in the source list for material T-AUC## in plant 12##
as the preferred source of supply. The entry should be valid from today until the
end of the year.

Choose Fix.
(C) SAP AG LO925 2-19

1-3 Material T-AUC## should normally be delivered to your customer via third-
party order processing.
Therefore, change the item category group in the material master to an
appropriate setting.
Sales organization: 1000

Distr. channel: 12
However, as well as changing the entry in the General item category

group, you must also change the entry (if one is available) in the field
Item category group.
(C) SAP AG LO925 2-20

Exercises

Topic: Creating a Sales Order

 Create a sales order with a third-party item
 Determine the respective purchase requisition
 Explain how third-party order processing is automatically triggered
from a sales order
One of your customers orders the material for which you have set up
third-party order processing.
A purchase requisition is to be generated automatically from the sales
order. The purchase requisition can later be easily changed to a third-
party purchase order.
2-1 You receive the following purchase order for the material that is to be shipped
directly from your vendor to the customer:
Purchase order
Customer: 2004
Purchase order number: ##-tp
Requested delivery date: current date + 1 workday
Material Quantity
T-AUC## 10 PC
2-1-1 Create a customer sales order for this.
Order type: OR
2-1-2 Can the material be delivered by the requested delivery date? List the
reason(s) for the system response.
_________________________________________________________
(C) SAP AG LO925 2-21

_________________________________________________________
2-1-3 Accept the scheduling default for Complete delivery.
2-1-4 Which plant would supply this item if it was outbound delivery?
__________________________________
2-1-5 What is the net price of the order item?
_________________________
2-1-6 Save the sales order.
Write down the document number.
Sales order: _________________
2-2 Check to make sure that a purchase requisition was automatically generated from
the sales order.
Purchase requisition: ___________________
2-3 Display the purchase requisition.
What is its document type?
_____________________
Which vendor is assigned as the fixed source of supply?
_____________________
2-4 In order for third-party order processing to be triggered, the order must include item
categories and schedule line categories that correspond to third-party order
processing.
2-4-1 Which item category has the system determined in the sales order?
________________________________
2-4-2 Which entry in the item category assignment was responsible for the
determination of this item category?
Sales document type: ________________
Item category group: ________________
Item category: ________________
(C) SAP AG LO925 2-22

2-4-3 Explain how and why it is possible in some cases to trigger third-party order
processing for a material with item category group NORM in a standard
order.
____________________________________________________________
____________________________________________________________
You should only display the Customizing settings for item and
schedule line categories, and for their determination rules. Do not
make any changes.
*2-5 Optional:
The schedule line category settings result in automatic creation of a purchase
requisition.
2-5-1 What schedule line category is determined in the sales order?
________________________________
2-5-2 What document type is used for the purchase requisition (resulting from the
settings in the schedule line category)?
________________________________
Did this document type determination work in your example?

_______________
2-5-3 What movement type is recorded in the schedule line category?
________________________________
Explain the reason for the system setting that appears.
____________________________________________________________
2-5-4 Which entry in schedule line category assignment defines the schedule line
category in your sales order?
Item category: _____________
Material requirements planning (MRP) type: _____________
Schedule line category default: _____________
(C) SAP AG LO925 2-23

Exercises

Topic: Creating a purchase order

 Convert the automatically-created purchase requisition into a purchase
order
The next step is to have your vendor deliver the goods directly to the
customer, who ordered them through you.
3-1 For the next step, imagine you are the employee responsible for plant 12## in the
purchasing department.
3-1-1 Create a purchase order for the purchase requisition that was
generated in the previous exercises by accessing the purchase
requisition assignment list.
Purchasing group: 004

Vendor: 1010
Plant: 12##
Scope of list: A
3-1-2 Also enter the following data for the purchase order if the system
requests it:
Order type: NB
Purchase order date: current date
3-1-3 You have spoken to your vendor on the phone. He confirmed that he can
have the goods delivered to your customer on the requested date. This
means that you can leave the delivery date as it is.
Save the purchase order.
Make a note of the document number.
Purchase order: ____________________________
(C) SAP AG LO925 2-24

3-2 Using the print preview of the purchase order, check that the delivery is to be
shipped directly to your customer rather than to your company.
You should use the purchasing document transaction for output
issue. Then choose Displ. output rather than Output.
3-3 How can you display the delivery address directly from the purchase order
document display?
__________________________________________________________________
__________________________________________________________________
(C) SAP AG LO925 2-25

Exercises

Topic: Posting goods receipt

 Post goods receipt for a purchase order with a third-party item
 Explain which accounts are to be posted to through the goods receipt
and with what amounts
You have agreed with the vendor that, in the case of third-party order
processing with your company, he will inform you when he has made the
delivery to your customer.
4-1 As soon as your vendor informs purchasing that outbound delivery of the
goods listed in the purchase order is complete, the goods receipt can be posted.
Post the goods receipt for the purchase order.
Purchase order: document number noted previously

Document date: current date
Posting date: current date
*4-2 Optional:
Display the accounting document for goods receipt.
4-2-1 Which accounts were involved in posting?
______________________________________________
______________________________________________
4-2-2 Explain how the system arrived at this amount.
______________________________________
(C) SAP AG LO925 2-26

Exercises

Topic: Posting invoice receipt for purchase order

 Post the invoice receipt manually for invoice verification
 Explain which accounts were posted to
The vendor sends you an invoice for the goods that you have ordered
from him and that he has delivered to your customer.
5-1 You receive the following invoice from your vendor:
INVOICE
Sunny Electronics GmbH (vendor 1010)
Invoice date: (current date)
Invoice 950031##
Invoice for your purchase order 4500....
T-AUC## Monitor Sunny Tetral3 10 pc 12400 UNI

Output tax 10% (1I) _1240 UNI
Invoice amount: 13640 UNI
Enter the invoice in the company code 1000.
Invoice: _____________________________
(C) SAP AG LO925 2-27

*5-2 Optional:
Display the accounting document for this invoice.
5-2-1 Which accounts were involved in posting?
______________________________________________
______________________________________________
(C) SAP AG LO925 2-28

Exercises

Topic: Invoicing the sales order

 Bill the sales order
 Explain the origin of the prices in the billing document
Once your company has received the invoice for the goods that were
delivered directly to your customer by your vendor, you can send your
own invoice to the customer. Under normal circumstances, you can use
the multiple processing run for billing documents for this step. In some
cases, you may need to create invoices individually.
6-1 Create the invoice for your customer with detailed reference to the sales order. As
an exception, use the individual billing procedure.
6-1-1 What is the net value?
____________________________
Where have you seen this value before in this business process?
_________________________________________________
Does this make sense?

6-1-2 Save the billing document and write down the document number.
Billing document: _______________________
6-2 You have created the customer invoice on the basis of the sales order.
6-2-1 Explain why this is the necessary course of action for third-party order
processing.
____________________________________________________________
6-2-2 Where can you make the settings in Customizing that define whether a
business transaction is to be billed based on the sales order or the delivery?
List the menu path you used to get to this part of Customizing.
____________________________________________________________
(C) SAP AG LO925 2-29
6-2-3 What would change if you chose “B” as the appropriate indicator?
____________________________________________________________
____________________________________________________________
(C) SAP AG LO925 2-30

Third-Party Order Processing Solutions

Topic: Preparations
1-1 Logistics  Materials Management  Purchasing  Master Data  Info

Record  Display
Vendor: 1010
Material: T-AUC##
Plant: 12##
Leave the info category set to Standard.
Choose Purch. org. data 1 on the Display Info Record screen. Net price: 1240 UNI
1-2 Logistics  Materials Management  Purchasing  Master Data  Source

List  Maintain
Material: T-AUC##
Plant: 12##
Valid from: current date

Valid to: end of the year
Vendor: 1010
Choose Fix.
1-3 Logistics  Sales and Distribution  Master Data  Products  Material 

Trading Goods  Change
Material: T-AUC##
Choose Sales:Sales Org. Data 2.
Distribution channel: 12
Item category group: BANS
Note that you do not have to enter BANS in the field General item category group.
(C) SAP AG LO925 2-31

Solutions

2-1
2-1-1 Logistics  Sales and Distribution  Sales  Order  Create
Order type: OR
Ship-to party: 2004

PO number: ##-tp
Requested delivery date: current date + 1 workday
Material: T-AUC##
Quantity: 10 PC
2-1-2 In the Standard order: Order scheduling screen that appears, it is obvious
that the requested delivery date cannot be met.
To calculate the actual delivery date, the system considers the planned
delivery time of 5 days and the processing time for purchasing of 1 day,
which depends on the plant.
2-1-3 Select Complete delivery or Copy in the Complete delivery area of the
screen.
2-1-4 On the Sales tab of the overview screen:
Plant: 12##
(If it were an outbound delivery from your own warehouse, it would be the
delivering plant.)
2-1-5 On the Sales tab of the overview screen:
Net value: 17300 UNI
2-1-6 Choose Save.
2-2 Logistics  Sales and Distribution  Sales  Order  Display

Select the item.
Choose Schedule lines for item.
Select the second schedule line.
Select Sched. line-detail and then the Procurement tab.
2-3 Select Edit.
Document type: NB
Vendor: 1010
(C) SAP AG LO925 2-32

2-4
2-4-1 Logistics  Sales and Distribution  Sales  Order  Display
On the Sales tab of the overview screen:
Item category TAS
2-4-2 IMG: Sales and Distribution  Sales  Sales Documents  Sales
Document Item  Assign Item Categories
Sales document type: OR

Item category group: BANS
Item category (DfItC field): TAS
2-4-3 To trigger third-party processing in a standard order, change the determined
item category TAN to TAS.
This is made possible by the available alternative item categories for manual
entry stored in the item category assignment.
The appropriate line in the item category assignment is the following:
Sales document type: OR
Item category group: NORM
Item category (DfItC field): TAN
Select the line and then press Details.

Manually allowed item category in the sales document (Manual item
category field): (among others) TAS
*2-5 Optional:
2-5-1 Logistics  Sales and Distribution  Sales  Order  Display
Select the item.
Choose Schedule lines for item.
Schedule line category: CS

2-5-2 IMG: Sales and Distribution  Sales  Sales Documents  Schedule
Lines  Define Schedule Line Categories
Select Details for schedule line category CS.
Order type (Document type of purchase requisition): NB
Yes, you found out earlier that the purchase requisition generated in your
example has document type NB.
2-5-3 In the definition of schedule line category CS, no movement type has been
stored.
This would not make sense, since the issue does not originate from your
stocks in third-party order processing. Therefore, you will create neither an
outbound delivery nor a goods issue, so the system does not need the
movement type.
(C) SAP AG LO925 2-33

Lines  Assign Schedule Line Categories
Item category: TAS

MRP type: blank
Schedule line category default (SchLC field): CS
Since you did not specify the MRP type in the schedule line category
assignment for item category TAS, you do not need to check the MRP type
in the material master of material T-AUC##.
(C) SAP AG LO925 2-34

Solutions

Topic: Creating a purchase order
3-1
3-1-1 Logistics  Materials Management  Purchasing  Purchase Order 
Create  Via Requisition Assignment List

Vendor: 1010
Plant: 12##
Scope of list: A
Select Execute
Position the cursor on the bottom line and select Process assignment.
3-1-2 The data given in the exercise text has already been entered in the Process
assignment: Create PO screen.
Then select Enter.
In the left side of the screen (document overview), select the purchase
requisition you have created. Then copy it to the current purchase order in
the right side of the screen, using the Adopt button. Alternatively, you can
drag the purchase requisition onto the shopping basket symbol, using the
left mouse buttton.
3-1-3 Choose Save.
3-2 Logistics  Materials Management  Purchasing  Purchase Order 

Messages  Print/Transmit
Purchasing document: Document number of the purchase order you wrote

down earlier
Select Execute
Select the line in the Message output: screen and select Display message.

Display
Choose Print preview
or
(C) SAP AG LO925 2-35

Choose the Delivery address tab page at item level.
In addition to the address, you can also check which customer number the system
assigned to the customer.
(C) SAP AG LO925 2-36

Solutions

4-1 Logistics  Materials Management  Inventory Management  Goods

Movement  Goods Receipt  For Purchase Order  PO Number Known
Purchase order: document number noted above

Choose ENTER or Execute.
Select Item OK.
Choose Post.
*4-2 Optional:
Logistics  Materials Management  Inventory Management  Material
document  Display
Material document: Default value

Material document year: Default value
Select Accounting documents... in the material document

Click on the Accounting document.
4-2-1 Debit posting: Stock change account
Credit posting: GR/IR clearing account
4-2-2 The system copied the amount from the purchase order.
(C) SAP AG LO925 2-37

Solutions

5-1 Logistics  Materials Management  Invoice Verification  Logistics Invoice

Verification  Document Entry  Enter Invoice
Invoice date: current date

Reference: 950031##
Amount: 13640 UNI
Tax amount: 1240
Tax code: 1I (corresponds to 10%)
Purchase order/Scheduling agreement: document number noted above
Choose Enter.
Check the difference.
Choose Post.
*5-2 Optional:
Logistics  Materials Management  Logistics  Invoice Verification 
Further Processing  Display Invoice Document
Invoice document number: default value

Fiscal year: default value
Select Follow-on documents...
5-2-1 Debit posting: GR/IR clearing account; Account for input tax
Credit posting: Vendor number
Now your company has a debt to the vendor.
(C) SAP AG LO925 2-38

Solutions

Topic: Invoicing the sales order
6-1 Logistics  Sales and Distribution  Billing  Billing Document  Create
Document: Document number of the sales order you wrote down previously
Select Execute.
6-1-1 Net value: 17300 UNI
The net value is identical to the amount in the sales order.
Yes, because it would not be a good idea to copy the amount from your
purchase order that you sent to the vendor since otherwise you would not
earn anything with this business procedure!
6-1-2 Choose Save.
6-2
6-2-1 During third-party order processing, your vendor sends the goods directly to
your customer. Therefore, you did not create an outbound delivery for the
sales order with third-party item. Delivery-related billing is thus not
possible.
6-2-2 IMG: Sales and Distribution  Sales  Sales Documents  Sales
Document Item  Define Item Categories
Select Details for item category TAS.
Relevant for billing field

6-2-3 If you chose entry "B" instead of "F" for the relevance for billing, the order
would be in the billing due list immediately following its entry. With the
given system setting, the billing with a log entry would be rejected since the
system would try in vain to determine an invoice receipt quantity. A further
system setting can be found in the copying control for sales documents to
billing documents for third-party item category TAS (Billing quantity field).
IMG: Sales and Distribution  Billing  Billing Documents  Maintain

Copying Control for Billing Documents  Copying Control: Sales
Documents to Billing Documents
Target: F2 – Source: OR
Double-click on Item in dialog structure.
Choose Details for the item category TAS.
(C) SAP AG LO925 2-39

(C) SAP AG LO925 2-40
Cross-Company Sales
Contents:
 Creating a Sales Order
 Executing Shipping Activities
 Creating an Invoice for the End Customer
 Creating an Internal Invoice
 Posting Invoice Receipt
 SAP AG 1999

Cross-Company Sales:
Unit Objectives I
 Assign a sales area to a plant for the purpose of

intercompany billing
 Maintain an allowed supplying plant
 Set up a cross-company sales process for certain
materials
 Explain when are you dealing with a cross-company
sales activity
 Explain the conditions in the sales order
 Execute the sales transaction with the help of the
outbound delivery
 SAP AG 1999

Unit Objectives II
 Determine which company code the invoice is

assigned to
 Explain the origin of the sales area
 Explain how the system determines the payer
 Explain the conditions for intercompany billing
 Initiate automatic postings to the vendor account
 SAP AG 1999

Cross-Company Sales: Overview Diagram
delivers delivers
Sales Sales
Company 1
Company code

Plant 2
delivers delivers
orders delivers
orders delivers
Plant

Company

 SAP AG 1999

Cross-Company Sales: Business Scenario
 In certain cases, the company arranges for direct

delivery of the goods to the customer from stocks
that belong to a different company belonging to the
same corporate group. In this way, the goods are
not stored beforehand in the company´s own
warehouse, but go directly to the customer.
 There is an agreement between the companies
involved that the issue of the invoice in the one
company automatically leads to posting of the
invoice receipt in the other.
 SAP AG 1999

Process for Cross-Company Sales Activity
delivers 2
Customer 2500 Plant 1200
orders bills Sales

organization
4 1000
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
 SAP AG 1999
 When the goods in the purchase order have been ordered by the customer, you enter a sales order in
sales organization 2200. This belongs to the so-called ordering company code (company 2200).
 The plant from which the goods to be delivered are taken is referred to as the delivering company
code (company 1000).
 As soon as the order is due for delivery, the delivering company creates the outbound delivery. The
goods issue is posted at the end of the shipping activity, and the goods are delivered to the customer.
 Afterwards, the invoice for the end customer is created in sales organization 2200, that is, in the
ordering company code.
 In order for inter-company billing to take place between the two companies involoved, the delivering
company issues an internal invoice, through ist sales organization 1000, to the ordering company.
 Depending on the agreement between the two connected companies, the entry of receipt of invoice
may take place automaticaly. If not, the received invoice is entered manually in the financial
accounting system of the ordering company.

1st Process Step: Create Sales Order
delivers 2
Customer 2500 Plant 1200
orders bills Sales

organization
4 1000
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
 SAP AG 1999
 The process for cross-company sales processing is initated when standard sales order is created.
 In a sales order, the system determines the delivering plant for each order item, or this data is entered
manually by the processor.
The system can propose the delivering plant from the following master records (sequence according
to priority):
 Customer-material info record
 Customer master for goods recipient
 Material master
 If the delivering plant in the order item belongs to a company that is not in the sales organization
creating the order, the system recognizes that this is a cross-company sales activity.

Allowed Delivering Plants
Example: (for distribution channel 10)
Plant 1000
Sales Plant 2200

Plant 1200
organization
1000
Plant 1100
Sales
organization
2200
Plant 1300
Company 1000 Company 2200

 SAP AG 1999
 When you create the order, the system checks whether the combination of sales organization,
distribution channel and delivering plant is allowed.
 Depending on the sales organization, the plants allowed for sales activities are defined in connection
with the distribution channel. Here it is possible for a sales organization to sell goods from several
plants. Conversely, a plant can be assigned to several sales organizations.
 In Customizing, a plant is uniquely assigned to one company code. A sales organization, too, belongs
to exactly one company code.
 Sales organizations and plants assigned to one another do not have to belong to the same company
code. Otherwise, cross-company sales activities would not be possible.
 The distribution channel provides a further means of differentiation of plants in a sales organization
from a sales viewpoint. A distribution channel, for example, can be allowed for certain plants within
a sales organization, but not for others.

Price for Intercompany Billing
Sales order 6788
Item 10
Material: M-01 Quantity: 1 PC
Net value: 2000 UNI
Price for
PR00 Price 2000 UNI customer
(Revenue)
Price for
Price
supplying plant
PI01 intercompany 1500 UNI (costs)
billing [statistical]
Profit
500 UNI
margin
 SAP AG 1999
 In the order itself, the system automatically executes pricing, whereby the stored condition master
data is evaluated.
 Condition type PR00 specifies the price that is billed to the customer. This price appears, possibly
with surcharges and discounts, in the invoice for the customer, provided no change has taken place in
the meantime. This price, therefore, stands for the revenue.
 For information purposes, instead of the moving average price for the material you have the price
that the ordering company has to pay to the delivering company (price for intercompany billing). It
will be relevant for intercompany billing and represents the costs of the ordering company.
 To represent the internal price, there are 2 condition types in the standard system:
- PI01 (quantity-dependent)
- PI02 (percentage)
- Condition records are entered in connection with the sales organization entering the order, the
delivering plant, and, if necessary, the material.
 The amount for intercompany billing appears on the condition screen of the sales order as a
statistical value (it is only displayed, and has no effect on the pricing results for the customer).

2nd Process Step: Execute Shipping Activities
delivers
Customer 2500 2 Plant 1200
orders bills Sales

organization
4 1000
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
 SAP AG 1999
 The shipping activity is initiated as soon as the outbound delivery has been created. This can take
place with the help of the standard collective processing function for delivery of orders due,or with
explicit reference to the sales order.
 As a rule, the outbound delivery is created as soon as the first workstep in the shipping process is
imminent.
 The individual worksteps in the shipping process (picking, packing, printing the delivery note, and so
on) are executed on the basis of the outbound delivery and also documented in the delivery.
 The outbound delivery is created and the shipping activities executed in the shipping point specified
in the order. This shipping point is assigned in Customizing to the delivering plant.
(C) SAP AG LO925 3-10

Worksteps for Shipping Processing
Create and print transfer order
(if confirmation requirement:)

Confirm transfer order
(optional:) Pack
Print delivery note
Post goods issue
 SAP AG 1999
 For picking purposes, a transfer order with reference to the outbound delivery is created. The list
printout of the transfer order is given to the picker so that he/she can pick the required goods from
the warehouse.
 Depending on the settings in Customizing, the pick may have to be confirmed (confirmation
requirement). During this confirmation of the transfer order, you can enter possible quantitiy
differences.
 If the goods are to be packed in shipping into larger boxes or placed onto pallets, for example, the
appropriate information can be stored in the outbound delivery.
 Using the output control and output processing functions, you can print out delivery notes.
 The goods issue posting is the closing activity in the shipping process. Here a quantity and value
update of the stock takes place.
(C) SAP AG LO925 3-11

3rd Process Step: Create Invoice for End Customer
delivers
orders bills Sales

organization
4 1000
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
 SAP AG 1999
 The invoice for the end customer is created in the sales organization that created the sales order.
 Invoicing includes a reference to the outbound delivery. Here it is not of importance that the
outbound delivery was taken from another company code.
 With the goods issue posting, the outbound delivery is automatically entered into the billing due list.
The invoice is created either right away, or in a billing collective processing run.
 The goods issue date of the outbound delivery is the relevant billing date for the billing due list.
(C) SAP AG LO925 3-12

Elements of Invoice to End Customer
Invoice 90005623
Doc.
Doc.type of order Billing type F2
Partner role PAYER in

Payer 2500
order item
Order header
Company code 2200
(sales organization)
organization)
Order header Sales organization 2200
Order header Distribution channel 10
Order header Division 00
 SAP AG 1999
 The invoice for the end customer is a “normal” invoice. In the standard version, you can use billing
types F2 or F1, whereby in the case of standard orders (sales document type OR) the system
automatically used billing type F2 as the default type.
 In contrast to an internal invoice, the payer as well as the sales units and the company code are taken
directly from the order.
 In the order, the company code was derived from the sales organization that entered the order. This
is, therefore, called the ordering company.
(C) SAP AG LO925 3-13

4th Process Step: Create Internal Invoice
delivers
orders bills Sales

organization
4 1000
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
 SAP AG 1999
 For intercompany billing for the services rendered to the customer in sales organization 2200, the
delivering company issues an invoice to the ordering company.
 The internal invoice is created by sales organization 1000. In customizing, you assign the sales
organization responsible for inter-company billing to the delivering point.
 Likewise, in the case of an invoice to the end customer, the billing has a reference to the outbound
delivery. You set the indicator “intercompany billing” during the selection of the documents for
billing.
 The outbound delivery is only entered in the billing due list of the respective sales organization of
the delivery company when the invoice is issued to the end customer.
(C) SAP AG LO925 3-14

Elements of Internal Invoice
Intercompany Billing 90005734
Doc.
Doc.type of order Billing type IV
Sales organization
Payer 22000
in order
Delivering plant Company code 1000
Delivering plant Sales organization 1000
Delivering plant Distribution channel 12
Delivering plant Division 00
 SAP AG 1999
 In the standard version, billing type IV is used for the internal invoice. This is automatically
proposed on the basis of the order.
 The payer of the internal invoice is usually the ordering company, which is like a customer with
respect to the delivering company. For this you create a customer master record in the delivering
company in which you enter the data relevant for billing. Afterwards, you assign the respective
customer number to the sales organization of the ordering company in Customizing (field "Customer
intercompany").
 The company code in the internal invoice comes from the company code to which the delivering
plant belongs. It is therefore the same as the delivering company.
 In Customizing, you assign the sales area required for creating the internal invoice to the delivering
plant (fields “Sales organization IV”, “Distribution channel IV”, “Division IV”). Make sure that the
same settings are also used for stock transfer activities.
(C) SAP AG LO925 3-15

Customer Master Record for Payer
Payer 22000 = Customer IV
Company code 1000 = Delivering company

Sales organization 1000 = Sales organization IV
Distr. channel 12 = Distribution IV
Division 00 channel IVIV
= Division
General data Sales area data

- Address - Currency
- ... - Invoice dates
- Terms of payment
- ...
Company data
- Reconciliation account
- ...
 SAP AG 1999
 The sales organization in the company code in which the sales order is generated takes on the role of
the payer for intercompany billing.
 A customer master record must exist for the payer, in order that an intercompany invoice can be
generated. This is assigned to the sales organization in the company code which delivers the order.
 A minimum of information must be contained in the customer master record. This information
includes data that is relevant for the role of the payer (for example, address, reconciliation account).
Also, you should store here the currency in which the intercompany billing is to take place.
 The company code data is created in the delivering company.
 The sales area data is entered in connection with the sales area for intercompany billing (sales
organization IV, distribution channel IV, division IV).
(C) SAP AG LO925 3-16

Conditions in Internal Invoice

Item 10
Material: M-01 Quantity: 1 PC
Net value: 1500 UNI
PR00 Price 2000 UNI [Inactive]
Price By reference to
IV01 intercompany 1500 UNI PI01
billing
VPRS Cost 1300 UNI
Profit
200 UNI
margin
 SAP AG 1999
 Condition type PR00 in the internal invoice displays the amount billed to the end customer. It serves
as an information item and is inactive.
 The active price for internal billing is given by condition type IV01. It is determined by reference to
condition type PI01 and therefore is the value that the delivering company has to receive from the
ordering company.
 For the delivering company, condition type IV01 stands for the revenue. The costs are given by the
moving average price of the material.
(C) SAP AG LO925 3-17

Calculation Procedure in Internal Invoice
Document type for Customer master

Delivering plant
internal invoice (Customer IV)
Sales
Sales organization
organization
Document
Document Distribution
Distribution channel
channel Customer
Customer
procedure
procedure Division
Division procedure
procedure
Calculation schema
ICAA01
PR00 Price
IV01 Price intercompany billing
VPRS Cost
 SAP AG 1999
 In the internal invoice, the system uses a pricing procedure (standard version ICAA01) different
from that in the sales order and the customer billing documents. Utilizing this, condition type PI01 is
replaced by condition type IV01.
IV01, in contrast to PI01, is not marked as a statistical value.
 Through the reference to condition type PI01 defined in the definition of condition type IV01, you
finally get the same condition values for both condition types. Here condition PI01 stands for the
costs of the ordering company, and IV01 for the revenue of the delivering company. The use of
different condition types for intercompany billing is necessary to ensure that data is transmitted
correctly to the financial statement (component CO-PA).
 The determination of the pricing procedure in the internal invoice takes place in connection with the
document procedure defined in the billing type, the sales area, and the customer pricing procedure
stored in the customer master.
With the sales area you refer to the sales area assigned to the delivering plant.
(C) SAP AG LO925 3-18

5th Process Step: Post Invoice Receipt
delivers
orders bills Sales

organization
4 1000
bills
5 Company
1 3 1000
Sales
organization
Company 2200
2200
 SAP AG 1999
 The invoice issued by the delivering company (company code) to the ordering company must be
entered in the financial accounting of the ordering company code in order for payment to take place.
This can be done manually.
 Cross-company sales processing can be set up so that the creation of an internal invoice in the
delivering company automatically generates the creation of an incoming invoice in the ordering
company.
 It is possible, for example, to have an agreement between the two parties involved that for invoices
issued by sales organization 1000 to sales organization 2200 there is immediately a posting to the
vendor account in the ordering company (company code 2200).
(C) SAP AG LO925 3-19

Automatic Posting to Vendor Account
Invoice
RD00
Intercompany Manual
billing Print-out invoice entry
90005734
Creditor 10000
RD04
1500
Automatic
invoice receipt
 SAP AG 1999
 If the ordering company enters the incoming invoice manually, the delivering company can print out
an invoice document with the help of output type RD00, which is then sent to the payer.
 If automatic invoice receipt has been agreed upon, you must use the SD output control functions to
ensure that output type RD04 is found in internal billing. In the R/3 System, output determination
procedure V40000, which includes this output type, is assigned to billing type IV.
 The automatic posting to the vendor account is initiated when output type RD04 is processed. The
technical conversion is carried out using the EDI technology. The EDI output category INVOIC is
used in the F1 variant. For specifications on the required system settings (partner profiles, and so on),
refer to the Implementation Guide for Intercompany Billing.
 So that the payable can be posted in financial accounting of the ordering company, the delivering
company must be created as a vendor (vendor 10000).
(C) SAP AG LO925 3-20

 Assignment of a sales area to the delivering

plant
 Maintenance of assignment between sales
organization, distribution channel, and
supplying plant
 Assignment of a customer to the sales
organization
 If necessary, entry of billing type for
intercompany billing in the sales document
 If necessary, maintenance of settings required
for automatic posting to vendor account
 SAP AG 1999
(C) SAP AG LO925 3-21

Cross-Company Sales: Unit Summary I
 Assign a sales area to a plant for the purpose of

intercompany billing
 Maintain an allowed supplying plant
 Set up a cross-company sales process for certain
materials
 Explain when are you dealing with a cross-company
sales activity
 Explain the conditions in the sales order
 Execute the sales transaction with the help of the
outbound delivery
 SAP AG 1999
(C) SAP AG LO925 3-22

Cross-Company Sales: Unit Summary II
 Determine which company code the invoice is

assigned to
 Explain the conditions for intercompany billing
 Initiate automatic postings to the vendor account
 SAP AG 1999
(C) SAP AG LO925 3-23

Cross-Company Sales Exercises
Unit: Cross-Company Sales

Topic: Preparations

 Assign a sales area to a plant for the purpose of intercompany billing
 Maintain an allowed supplying plant
 Set up a cross-company sales process for certain materials
You are in a French subsidiary of an international group. Regarding

particular materials that are seldom requested, you agreed with the
German branch that it would deliver to your customers directly if you
receive the corresponding purchase order. This way, you avoid the
roundabout step of using your own warehouse.
1-1 Assign a sales area for intercompany billing to the delivering plant 12##.
Sales organization for intercompany billing: 1000

Distribution channel for intercompany billing: 12
Division for intercompany billing: 00
1-2 Now, authorize the French sales organization to at least sell goods from plant 12##
to end customers:
1-2-1 Which menu path should you follow to make the appropriate setting in
Customizing?
____________________________________________________________
____________________________________________________________
1-2-2 If it has not been done, make the setting for the combination of sales
organization 2200 and distribution channel 10.
(C) SAP AG LO925 3-24

1-3 A material master record already exists for the material described in the above
enterprise scenario. Enter plant 12## ("## Dresden") as the delivering plant, which
will be relevant for sales procedures carried out by the French sales organization.
Material: T-AUD##
Distribution channel : 10
*1-4 Optional:
What do you have to do so that the system does not determine another delivering
plant for material T-AUD## in the customer order item?
1. ________________________________________________________________
2. ________________________________________________________________
(C) SAP AG LO925 3-25

Exercises


 Explain when are you dealing with a cross-company sales activity
 Explain the conditions in the sales order
You receive a purchase order for a material from your customer, which
will be delivered directly to the customer by the German branch. In
contrast to the purchase order of a "regular" material, the process of
cross-company code sales will be triggered automatically.
2-1 You receive a purchase order for a material that is to be sent to your customer
directly from the German branch.
Purchase order
Ship to Customer: 2500
PO number: ##-ic
Requested delivery date: current date + 3 workdays
Material Quantity
T-AUD## 10 PC
Create a customer order for this.
Order type: OR
Division: 00
(C) SAP AG LO925 3-26

2-1-1 Which plant is going to deliver the goods?
____________________________
Where does the system find the plant?
____________________________________
Save the sales order.

Sales order ##-ic: _________________

2-1-2 Which two organizational elements are in different company codes if it is a
cross-company code sales transaction?
1. _______________________________________________
2. _______________________________________________
2-1-3 Find the appropriate company codes in Customizing:
1. _______________
2. _______________
2-2 Display the sales order you created earlier.

2-2-1 Which condition type in the conditions view of the order item refers to the
price that the receiving company has to pay to the delivering company?
______________
How much is it? __________________
What is the customer’s price? _____________________

*2-2-2 Optional:
Does the amount assigned to the price for intercompany billing affect the net
value?
______________
Explain why it is important: _____________________________
____________________________________________________________
(C) SAP AG LO925 3-27

Exercises

Topic: Executing Shipping Activities

 Execute the sales transaction with the help of the outbound delivery
In a shipping point assigned to the delivering plant, the goods to be

shipped to the customer are prepared and then delivered. The fact that it is
a cross-company code sales process does not have any effect on the
transaction.
3-1 To carry out the shipping activities, you play the part of an employee at shipping
point X0## related to plant 12##. Use the same standard functions for collective
processing that you use for sales activities within the same company code in
shipping.
3-1-1 Supply the order created above for purchase order ##-ic by processing the
delivery due list for sales and purchase orders for shipping point X0##.
Restrict your selection to shipping point X0##!
Note: If your order does not appear in the worklist, set the delivery creation
date to a later date in the selection screen.
Write down the outbound delivery number: ______________________

3-1-2 Initiate picking by creating a transfer order for the outbound delivery you
created earlier.
To do this, use the collective processing function (via outbound delivery
monitor).
3-1-3 When the picking process is complete, you can post the goods issue to the
outbound delivery you created earlier. The settings have been made in such
a way that it is not necessary to confirm picking in advance (no obligation to
confirm).
To do this, use the collective processing function.
(C) SAP AG LO925 3-28

(C) SAP AG LO925 3-29

Exercises

Topic: Creating an Invoice for the End Customer

 Determine which company code the invoice is assigned to
Once the goods issue for the outbound delivery to your French customer
has been posted in the German branch, you can create the invoice to the
customer.
4-1 Create the billing document – this time without using collective processing - with
explicit reference to the outbound delivery you created above. You are playing the
part of an employee in the French sales organization.
4-1-1 To which company code and to which sales organization has the invoice
been assigned?
Company code: ______________________
Sales organization: ___________________
Is this the receiving or the delivering company code?
____________________________________________________________
4-1-2 Save the billing document and write down the document number.
Billing document: _______________________
(C) SAP AG LO925 3-30

Exercises

Topic: Creating an Internal Invoice

 Determine which company code the internal invoice is assigned to
 Explain the origin of the sales area
 Explain how the system determines the payer
 Explain the conditions for intercompany billing
The German branch creates an internal invoice for intercompany billing

of goods delivered by the supplying company to the customer of the
receiving company. The French branch acts as payer and invoice
recipient.
5-1 Create the billing document – this time without using collective processing - with
explicit reference to the outbound delivery you created above. You are playing the
part of an employee in the German sales organization.
5-1-1 To which company code has the internal invoice been assigned?
Company code: ______________________
Is this the receiving or the supplying company?
____________________________________________________________
Which factor does it depend on?
__________________________________________________
5-1-2 Save the internal invoice and write down the document number.
Internal invoice: _______________________
(C) SAP AG LO925 3-31

5-2 Since the internal invoice has been created by a German sales organization, the
sales area entered in the internal invoice differs from the one entered in the
customer billing document.
5-2-1 Determine the sales area to which the internal invoice has been assigned.
Distribution channel: ___________________
Division: __________________
5-2-2 This sales area is used for intercompany billing. Which factor does this
depend on?
__________________________________
5-2-3 Where in Customizing does the appropriate assignment take place?
____________________________________________________________
This setting is essential for cross-company code processes. Who made this
setting?
__________________________________________
5-3 In the internal invoice, a business partner appears as a payer who has not been
involved in the business transaction up to this point.
5-3-1 Determine the payer of the internal invoice:
__________________________
5-3-2 Which factor does this payer depend on?
_______________________________________
5-3-3 Which menu path did you follow to find this setting in the system?
____________________________________________________________
____________________________________________________________
(C) SAP AG LO925 3-32

5-4 Display the customer master record for the payer centrally.
5-4-1 Which company code and which sales area are relevant in this context?
Company code: ________________
Sales organization: __________________
Distribution channel: _____________
Division: _____________
5-4-2 Which currency is used to bill the customer according to his master data and
which terms of payment have been defined?
Currency: __________________
Terms of payment: ____________________
5-5 Display the condition screen for the item in the internal invoice.
5-5-1 Which condition type reflects the price the receiving company has to pay to
the delivering company?
______________
*5-5-2 Optional:
To which price does condition type PR00 in the internal invoice refer?
____________________________________________________________
Does this amount assigned to this condition type contribute to the net value?
_____________________
*5-6 Optional:
5-6-1 Which billing document type does the internal invoice have?
_______________
5-6-2 In which Customizing object has the proposed billing type for intercompany
billing been stored?
______________________________________
Find this Customizing object.
(C) SAP AG LO925 3-33

Exercises

Topic: Posting Invoice Receipt

 Initiate automatic postings to the vendor account
The two companies involved have agreed that the invoices from the
German sales organization to the French sales organization are
automatically posted as invoice receipts in the accounting department of
the French company.
This means that you do not have to enter the invoice manually.
6-1 Having made the appropriate setting, automatic posting to the vendor’s account can
take place directly when you save the internal invoice. However, if it is not
necessary for the posting to take place immediately, it may not be a good idea since
it may cause an unnecessary system load. In our case, it has therefore been decided
to initiate automatic credit-side posting for the existing internal invoices
collectively. This could, for example, be carried out using a background program.
6-1-1 Check the internal invoice to see if the system determined output type RD04
and if the output has already been processed.
____________________________________________________________
6-1-2 Process output RD04 (given in your internal invoice).
Output type: RD04

Billing document: number of the internal invoice you wrote down above
Note:
Process the output only for the internal invoice you created!
(C) SAP AG LO925 3-34

*6-2 Optional:
Ensure that the accounting document for posting to the vendor’s account exists in
the receiving company.
Go to the document display in accounts payable.
What appears in the Reference field?
(C) SAP AG LO925 3-35

Cross-Company Sales Solutions

Topic: Preparations
1-1 IMG: Sales and Distribution  Billing  Intercompany Billing  Assign

Organizational Units By Plant
Maintain for plant 12##:

Sales organization for intercompany billing: 1000
Distribution channel for intercompany billing: 12
Division for intercompany billing: 00
1-2
1-2-1 IMG: Enterprise structure  Assignment  Sales and distribution 
Assign sales organization – distribution channel - plant
1-2-2 Position the cursor on the line with sales organization 2200 and distribution
channel 10 and choose Assign.
Select plant 12##.
The message informs you of the cross-company code character.
1-3 Logistics  Sales and Distribution  Master Data  Products  Material 

Trading Goods  Change
Material: T-AUD##
Choose Sales:Sales Org. Data 1.
Delivering plant: 12##
(C) SAP AG LO925 3-36

*1-4 Optional:
1. If there is a customer material info record, you must not maintain a different
supplying plant in this record.
2. The customer master for sales organization 2200 and distribution channel 10
must not contain a deviating delivering plant.
During the determination of the supplying plant in the order item, the system
accesses the master data in the following sequence:
1. Customer material info
2. Customer master
3. Material master
(C) SAP AG LO925 3-37

Solutions

2-1 Logistics  Sales and Distribution  Sales  Order  Create
Order type: OR
Division: 00
Ship-to party: 2500

PO number: ##-ic
Requested delivery date: current date + 3 workdays
Material: T-AUD##
Quantity: 10 PC
2-1-1 Scroll over, if necessary, until you reach the right-hand side in the item in
the Sales overview screen.
Plant: 12##
Since there is no customer material info record and since the supplying plant
has not been maintained in the customer master, the system determined the
plant on the basis of the material master entry you made above.
2-1-2 1. Sales organization in which the customer order is stored
2. Supplying plant
2-1-3 1. IMG: Enterprise Structure  Assignment  Sales and Distribution 
Assign sales organization to company code
Company code 2200 - Sales organization 2200
2. IMG: Enterprise structure  Assignment  Logistics - General 

Assign plant to company code
Company code 1000 - plant 12##
(C) SAP AG LO925 3-38

2-2 Logistics  Sales and Distribution  Sales  Order  Display
2-2-1 Select the item in the sales order, and choose Item conditions..
Condition type: PI01

Rate: 4000 FRF per PC
Condition type PR00:

Rate: 5320 FRF per PC
*2-2-2 Optional:
Select Condition Details for condition type PI01:
Since the condition is marked as Statistical, it does not affect the net value.
This is appropriate since the price for intercompany billing should not have
the effect that the amount to be paid by the customer is increased or
decreased.
(C) SAP AG LO925 3-39

Solutions

Topic: Executing Shipping Activities
3-1
3-1-1 Logistics  Sales and Distribution  Shipping and Transportation 
Outbound Delivery  Create  Collective Processing of Documents Due
for Delivery  Sales orders and Purchase Orders
Shipping point/receiving pt: X0##

Choose Execute.
If your order does not appear in the worklist, set the delivery creation date to
a later date in the selection screen.
In the list, select the line which refers to the sales order your created above.
Choose Create delivery in background.
Then choose Log for Delivery creation, select the entry and choose
Documents, in order to determine the outbound deliver number.
Picking  Create Transfer Order  Via Outb. Delivery Monitor

Choose Execute.
Select the outbound delivery you created in the list of daily workload for
picking, and choose Create TO in background.
Confirm the following dialog box with Enter.

Post Goods Issue  Collective Processing Via Outb. Delivery Monitor

Choose Execute.
Select the delivery you created above in the goods issue for outbound
deliveries list and then select Post goods issue.
Confirm the dialog box with Enter.
(C) SAP AG LO925 3-40

Solutions

Topic: Creating an Invoice for the End Customer
Document: Document number of the outbound delivery you wrote down earlier
Choose Execute.
4-1-1 Choose Display Doc. Header details.
Company code: 2200

Since this is the invoice for the end customer, it is assigned to the company
code in which the order has been entered (that is, the receiving company).
4-1-2 Choose Save.
(C) SAP AG LO925 3-41

Solutions

Document: Document number of the outbound delivery you wrote down earlier
Choose Execute.
Company code: 1000
The supplying company creates the internal invoice which is directed to the
receiving company. Therefore, the company code that is displayed is that of
the supplying company.
The supplying company corresponds to the company code that has been
assigned to the supplying plant.
5-1-2 Choose Save.
5-2 Logistics  Sales and distribution  Billing  Billing document  Display


Distr. channel: 12
Division: 00
5-2-2 The sales area necessary for intercompany billing depends on the delivering
plant.
5-2-3 IMG: Sales and Distribution  Billing  Intercompany Billing 
Assign Organizational Units by Plant
You have maintained the entries for plant 12## yourself in a preceding
exercise.
5-3
5-3-1 GoTo  Header  Header Partners
Payer in the internal invoice: 22000
5-3-2 The payer in the internal invoice generally corresponds to the receiving
company, that is, the company in which the customer order has been
created.
It depends on the sales organization that enters the order.
(C) SAP AG LO925 3-42
5-3-3 IMG: Sales and Distribution  Billing  Intercompany Billing 
Define Internal Customer Number by Sales Organization
Sales organization 2200 - customer number for intercompany billing 22000
5-4 Logistics  Sales and Distribution  Master Data  Business Partners 

Customer  Display  Complete
Customer: 22000
5-4-1 The system accesses the customer master for the payer with the supplying
company code and the sales area which is assigned to the delivering plant.
Company code: 1000

Division: 00
5-4-2 Choose Sales area data and then the Sales and Billing document tab pages.
Currency: UNI
Terms of payment: ZB01
5-5 Logistics  Sales and Distribution  Billing  Billing Document  Display
Billing document: Document number of the internal invoice you wrote down
earlier
Select the item in the internal invoice and select Item price conditions.
5-5-1 Condition type: IV01
The given condition value corresponds to the net value of the internal
invoice.
*5-5-2 Optional:
Condition type PR00 refers to the price relevant for the customer.
The condition value of PR00 does not contribute to the net value since the
condition is inactive due to the following price.
(C) SAP AG LO925 3-43

*5-6 Optional:
5-6-1 See title line in document.
Billing document type: intercompany billing (IV)

5-6-2 The billing type the system uses automatically for internal invoices is stored
in the sales document type.
IMG: Sales and Distribution  Sales  Sales Documents  Sales

Document Header  Define Sales Document Types
Choose Details for sales document type OR.
Billing type for intercompany billing: IV
(C) SAP AG LO925 3-44

Solutions

Topic: Posting Invoice Receipt
6-1
6-1-1 Logistics  Sales and Distribution  Billing  Billing Document 
Display
Go To  Header  Output
The output type RD04 was automatically created by the system on account
of the existing settings in output determination, and has not yet been
processed.
6-1-2 Logistics  Sales and Distribution  Billing  Output  Issue Billing
Documents
Output type: RD04

Billing document: number you wrote down above for the internal
invoice
Select Intercompany billing.
Choose Execute
Choose the relevant line and then choose Process.

*6-2 Optional:
Accounting  Financial Accounting  Accounts Payable  Document
 Display
Select List and proceed as follows:
Company code: 2200

Entry date: Current date
Select Own documents only.
Select Execute
The system stored the document number of the internal invoice in the
Reference field.
(C) SAP AG LO925 3-45

(C) SAP AG LO925 3-46
Intra-company Stock Transfer
Contents:
 Creating a Stock Transport Order
 Creating a Replenishment Delivery
 Executing Picking and Posting Goods Issue
 SAP AG 1999

Intra-company Stock Transfer: Unit Objectives
 Set up the stock transport order procedure with LE

outbound delivery for certain plants
 Decide between the one-step and the two-step
procedure
 Initiate the process for intra-company stock transfer
with the help of a stock transport order
 Understand the meaning of a goods recipient master
record assigned to a plant
 Explain how the system determines important
outbound delivery parameters
 Close the one-step procedure for stock transfer with
the goods issue posting
 Explain which movement type is used
 Query the status of the stock transfer procedure
 SAP AG 1999

Intercompany Stock Transfer:
Overview Diagram
delivers Customer delivers

Sales Sales
Company 1
Company code

Plant 2
delivers delivers
orders delivers
orders delivers
Plant

Company

 SAP AG 1999

Intra-company Stock Transfer:
Business Scenario
 Your company has one central warehouse and

several decentralized warehouses that supply
external warehouses and service operators with
spare parts. These spare parts are acquired by
means of stock transfers from the central
warehouse.
 To simplify the process, it should be possible to
have the goods receipt posted at the receiving
warehouse automatically when the goods issue is
posted.
 SAP AG 1999

Stock Transfer Procedure
Stock transfer from one plant to another
Through Through
stock transfer posting stock transport order
Without With With LE outbnd del.

del.
LE outbound del.
del. LE outbound del.
del. and SD billing
 SAP AG 1999
 The stock transfer between 2 plants can be executed using different procedures.
 The procedures in which a stock transfer posting is executed solely use the MM Inventory
Management component. In contrast to these, you have procedures where the stock transfer process
is initiated automatically when a purchase order is entered in the MM Purchasing component (stock
transport order).
 If you are working with the stock transfer procedure with LE outbound delivery, this has the
advantage that the shipping activities can also be processed with the R/3 System (picking, packing,
printing the delivery note, and so on).
 If you wish to use R/3 shipping functions for stock transfer processing, use the procedure “For stock
transport order with LE outbound delivery” for intra-company activities and the procedure “For
stock transport order with LE outbound delivery and SD billing” for cross-company stock transfers.

Process for Intra-company Stock Transfer in One-
Step Procedure
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
 SAP AG 1999
 The process described in this unit uses the procedure for “stock transport order with LE outbound
delivery”, which is provided for intra-company stock transfers.
 First we enter a stock transport order for goods for plant 1400, possibly also with reference to a
purchase requisition. In this order, plant 1400 orders goods from plant 1200. Within this stock
transfer procedure, plant 1400 is the receiving plant.
 When the purchase order is due for shipment, you create an outbound delivery. You can have this
delivery packed or assign it to an outbound shipment.
As soon as the shipping procedure is finished, you post the goods issue. The goods are now
transferred from plant 1200 to plant 1400. Plant 1200 is termed as the delivering or supplying plant.
 If, as in this case, you are using the one-step procedure, the goods receipt does not have to be posted
in the receiving plant when the goods arrive there.

Two-Step Stock Transfer
Purch. order Plant 1400 Plant 1200

1
Goods
receipt
Unrestricted- Unrestricted-
for
use stock Transit provided use
PO
from vendor stock
B B Goods issue B
B B C B B C B B C
A A
A
 SAP AG 1999
 In the two-step procedure for a stock transport order with shipping processing, a stock in transit is
created when the goods issue is posted from the sending plant. This enables you to monitor the
stocks that are being transferred. You can display the stocks in the stock overview for the material.
As soon as the goods arrive, the goods receipt is posted in the receiving plant. A transition takes
place - depending on your choice - to the unrestricted-use stock, to the blocked stock or to the stock
in quality inspection.
 The stock in transit is evaluated, but not available. The stock is managed at the level of the receiving
plant.
 The goods are withdrawn from the unrestricted-use stock.

One-Step Procedure
Purch. order Plant 1400 Plant 1200

1
Unrestricted- Automatic Unrestricted-

use goods receipt use
stock for purch. order stock
B Goods B
B B C B B
issue C
A A
 SAP AG 1999
 As of Release 4.0, there is a one-step procedure available -- in addition to the two-step procedure --
for stock transfer procedures with a stock transport order and shipping processing.
 In the one-step procedure, no stock in transit is created. The stock is posted at the time of goods issue
directly into the unrestricted-use stock in the receiving plant. The goods receipt posting is not
required in the receiving plant.
 The one-step procedure can be appropriate if the plants involved are not far away from each other, or
if the receiving plant does not have a technical link-up.
 You define in Customizing whether you wish to work with the one-step or the two-step procedure.
The setting is made in connection with the delivering plant and the receiving plant.
 If you are using the stock transfer posting as the stock transfer procedure, you also have the one-step
or the two-step procedure at your disposal.
 As a rule, you can only post stock transfers in one step from one plant to another with unrestricted-
use stock that is posted from the delivering plant to the receiving plant's unrestricted-use stock.

1st Process Step: Create a Stock Transport Order
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
 SAP AG 1999
 The stock transfer is initiated when you create a stock transport order with document type UB
(“stock transport order”). You enter the delivering plant as well as the receiving plant.
 The system uses item category U ("stock transfer").
 The items cannot be assigned to accounts if the goods are ordered for consumption and not for the
warehouse.
If the material in the receiving plant is not evaluated, it is not possible to enter an account
assignment. The goods can only be assigned for the warehouse.
 If you are working with the one-step procedure, you must specify the stock location in the receiving
plant already in the purchase order.

Stock Transport Order and Requirements Planning
Receiving Delivering
Plant Plant
User Rqmnts Requirements

depart. planning planning
Stock transport
order
Purchase
requisition Order type UB
Item category U
Acct.assgmt.cat. _
 SAP AG 1999
 The stock transport order is included in requirements planning both in the receiving as well as in the
delivering plant. Here the goods receipt in the receiving plant and the goods issue in the delivering
plant are preplanned.
 The stock transfer activity can also be initiated by a purchase requisition or a stock transport
scheduling agreement.
 The purchase requisition can be created in the user department or by requirements planning.
 For the purchase requisition you use document type NB ("purchase requisition") and item category U
("stock transfer").
 You use the stock transport scheduling agreement if stock transfers are to take place at regular
intervals, or if you wish to schedule the delivery deadlines of a stock transfer exactly.
 In addition, you can set your Customizing to define whether an availability check is executed in the
delivering plant when a purchase order is created.
(C) SAP AG LO925 4-10

2nd Process Step: Create a Replenishment
Delivery
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
 SAP AG 1999
 To supply the materials ordered by plant 1400, an outbound delivery is first created. This is referred
to, in the case of stock transfer activity, as a „replenishment delivery".
 Replenishment deliveries are created solely using the collective processing run for deliveries. In the
selection screen, you can extend your selection to include purchase orders.
 The reference document of the replenishment delivery is the stock transport order.
 The document flow of the outbound delivery shows the referenced purchase order.
 The outbound delivery is created and processed in the shipping point responsible for the respective
stock transfer activity. This shipping point must be assigned in Customizing to the delivering plant.
(C) SAP AG LO925 4-11

Customer Master Record for Ship-to Party
Receiving plant
Ship-to party 14000 = Customer no. plant
Sales organization 1000 = Saler organization IV

Distr. channel 12 = Distribution IV
channel IVIV
= Division
Division 00
General data Sales area data

- Address - Shipping condition
- Transportation zone - ...
- ...
Delivering plant
 SAP AG 1999
 The ship-to party in the replenishment delivery stands for the receiving plant.
 In order for the stock transfer procedure with LE outbound delivery to take place, a customer master
record must exist. The system derives the address as well as other information important for
shipping, such as the transportation zone and the shipping conditions, from this master record.
 The master record is created in the sales area that corresponds to the organizational units, distribution
channel and division for intra-company billing. These sales organizations are assigned to the
delivering plant in Customizing and are valid for cross-company sales as well as for cross-company
stock transfers.
 The company code data does not need to be entered as long as the respective plant is the receiving
plant for intra-company stock transfers only.
 The customer number is then assigned to the receiving plant in Customizing.
(C) SAP AG LO925 4-12

Determination of Outbound Delivery Parameters
Order type UB
Delivery type NL
Delivering plant 1200
Delivery type NL
Item category grp NORM Item category NLN

Usage V
Shipping condition 01 Shipping point 1200

Loading group 0002
 SAP AG 1999
 Since the replenishment delivery does not refer to a sales order, the system must determine important
information about the outbound delivery parameters using other means.
 The delivery type to be used is derived from the document type of the stock transport order and the
delivering plant. Here you assign the delivery type NL („replenishment delivery") in Customizing.
 If you do not assign a delivery type, stock transfer activities that are initiated by a stock transport
order are executed without outbound delivery (different stock transfer procedure).
 The item category is derived from the item category search of the delivery, whereby the delivery
type, the item category group of the material, and perhaps also the item category of the higher level
item play a role here. Usage V serves as an internal indicator. In standard Customizing, item
category NLN is assigned.
 With the item category, for example, you can customize how picking must take place.
 The shipping point is determined in connection with the delivering plant, the shipping condition of
the customer master record belonging to the receiving plant, and the loading group of the material.
 In the delivering plant, the shipping data (view „Sales & Distrib.: General/Plant data" in the material
master) and the accounting data for the material must be maintained.
The purchasing and accounting data from the material master are required for the receiving plant.
Also, sales area data of the sales organizational units for intercompang billing must be stored for the
material.
(C) SAP AG LO925 4-13

3rd Process Step: Execute Picking and
Post Goods Issue
Plant 1200
2 3
orders delivers
Plant 1400
Company 1000
 SAP AG 1999
 The replenishment delivery is processed in the usual manner in shipping, that is, just like an
outbound delivery that was created with reference to a sales order.
 Here you include the replenishment deliveries in your selection if you are using a special number
range for them.
 You also post the goods issue in the LE Shipping application. There you refer to the replenishment
delivery.
In procedures that do not use shipping processing, you post the goods issue in MM Inventory
Management.
(C) SAP AG LO925 4-14

Effects of Goods Issue Posting
(One-Step Procedure)
Supplying Receiving
Plant Plant
Goods issue
with reference to Unrestricted-use +
Unrestricted-use stock
stock - replenishment deliv.
Open order qty -
Material
Stock transport
document
order
Accounting
document Purch.order history
Material master
Purch.order qty
Stock value
(moving price)
 SAP AG 1999
 During the goods issue posting in MM Inventory Management, the system creates a material
document. This means that the quantity is deducted in the delivering plant. At the same time, the
quantity is posted to the unrestricted-use stock of the receiving plant if you are using the one-step
procedure. The order stock is then reduced by the stock putaway.
 However, if you are working with the two-step procedure, the system creates a stock in transit in the
receiving plant. At the time of goods receipt, this stock is reduced again. For technical reasons, this
movement of stock in transit appears also in the material document for the one-step procedure.
 If the plants belong to different company codes, an accounting document is created parallel to the
material document.
The stock transfer is evaluated with the valuation price of the material in the delivering plant. As a
result, there can be a price change in the receiving plant.
 A purchase order history record is automatically created in purchasing for the replenishment delivery
as well as for the closing goods issue posting, as in this case. In this way, the receiving and the
delivering plants can follow up the actual stock transfer procedure.
 In the two-step procedure, the process is closed by a goods receipt posting. Here, too, a purchase
order history record is automatically created.
(C) SAP AG LO925 4-15

Movement Types for Stock Transfer with LE Delivery
Which movement type for

which procedure?
Intercompany Cross-company
One-step
647 645
procedure
Two-step
641 643
procedure
 SAP AG 1999
 The overview shows which movement types are used in the standard version for the individual stock
transfer procedures with LE outbound delivery.
 So that you can post the goods issue from the outbound delivery, the respective movement types for
one-step and two-step procedures must be assigned to schedule line category NN (for intercompany
stock transfers) and to schedule line category NC (for cross-company stock transfers).
 During the stock transfer procedure, the system determines the schedule line category using the item
category in the replenishment delivery and the MRP type in the material master.
(C) SAP AG LO925 4-16

Intercompany Stock Transfer:
 Assignment of a sales area to the delivering

plant
 Assignment of a customer to the receiving plant
 Assignment of the delivery type for the
replenishment delivery
 Decision on one-step or two-step procedure
 Shipping point determination, if required

 Maintenance of item category determination in
the delivery
 Entry of the movement type in the schedule line
category
 SAP AG 1999 determination
(C) SAP AG LO925 4-17

Intra-company Stock Transfer: Unit Summary

 Set up the stock transport order procedure with LE
outbound delivery for certain plants
 Decide between the one-step and the two-step
procedure
 Initiate the process for intra-company stock transfer
with the help of a stock transport order
 Understand the meaning of a goods recipient master
record assigned to a plant
 Explain how the system determines important
outbound delivery parameters
 Close the one-step procedure for stock transfer with
the goods issue posting
 Explain which movement type is used
 Query the status of the stock transfer procedure
 SAP AG 1999
(C) SAP AG LO925 4-18

Intercompany Stock Transfer Exercises
Unit: Intra-company Stock Transfer

Topic: Preparations

 Set up the stock transport order procedure with LE outbound delivery
for certain plants
 Decide between the one-step and the two-step procedure
At your company‘s Stuttgart location, outbound deliveries only take place

within the scope of repairs. The spare parts are stored in a small
warehouse, which procures its stocks by stock transfer from the central
warehouse in Dresden.
The shipping process for these replenishment deliveries shall in principle
take place as with customer deliveries. The system is to support picking,
packaging, printout of delivery notes, and so on.
Since both locations belong to the same company and since you can rely
on the shipments, you do not want the goods receipt posting in the
Stuttgart plant to take place in a separate step.
1-1 Your company decides to introduce intra-company code stock transfers with stock
transport orders and to use the LE outbound delivery for the execution of the
delivery process.
1-1-1 Where in Customizing can you make the setting for creation of an LE
outbound delivery for stock transfers via stock transport order?
____________________________________________________________
____________________________________________________________
Which field is decisive in this context?
_________________________________
(C) SAP AG LO925 4-19

1-1-2 Make an entry that determines the delivery type used for replenishment
delivery in supplying plant 12##.
Purchasing document type: UB

Supplying plant: 12##
Delivery type: NL
Checking rule: RP
1-2 In addition, make the appropriate settings so that the system uses the one-step
procedure for stock transfers with supplying plant 12## and receiving plant 14##.

Plant: 14##
1-3 For the stock transfer, the receiving plant is the ship-to party. To do this, a customer
master record is necessary. During the stock transfer process, the system copies
various shipping data, such as the address of the ship-to party, from the
corresponding customer master data.
Create the customer master record which represents plant 14##.
Please note that you do not necessarily have to enter company code data
to ensure that the intra-company stock transfer process works.
Account group: customer belonging to group

Customer: 140##
Division: 00
Reference
Customer: 14000
Division: 00
Name: Plant 14## Stuttgart Service

Search term 1/2: 14##
Street/house number: Haeberle Weg 2
Postal code/city: 70000 Stuttgart
Region: 08
Transportation zone: D000070000
Trading Partner: 1000

VAT Reg. number: DE123456789
(C) SAP AG LO925 4-20

1-4 Assign customer number 140## to receiving plant 14##.
(C) SAP AG LO925 4-21

Exercises

Topic: Creating a Stock Transport Order

 Initiate the process for intra-company stock transfer with the help of a
stock transport order
The stock of a particular spare part is running low. Request a

replenishment delivery from the central warehouse in Dresden.
2-1 Create a stock transport order for 300 M of material T-AUE## .

Document type: UB
Company code: 1000
Delivery date: current date + 2 weeks

Plant: 14##
Storage location: 0001
Which item category does the system use? _____________________________
Write down the PO number: ___________________________
2-2 Go to the stock overview for material T-AUE##.

2-2-1 How much unrestricted-use stock does each plant contain?
Plant 12##: ____________________
Plant 14l##: ____________________

2-2-2 Under which stock type does the system store the released quantity in plant
12##?
______________________________________
(C) SAP AG LO925 4-22
Exercises

Topic: Creating a Replenishment Delivery

 Understand the meaning of a goods recipient master record assigned to
a plant
 Explain how the system determines important outbound delivery
parameters
The replenishment delivery is being prepared at one of the shipping

points assigned to the central warehouse in Dresden. The address of the
ship-to party corresponds with one of the receiving plant’s unloading
points.
To facilitate creation of the replenishment delivery and the further
shipping processing, the system should not flag the delivery as being
intended for an external business partner.
point X0## related to plant 12##. Use the collective processing function to create
the replenishment delivery.
3-1-1 Supply the stock transport order created above by processing the deliveries
due list for shipping point X0##.

Delivery creation date: to current date + 2 weeks

3-1-2 Who is the ship-to party in the outbound delivery document?
_____________________________
3-1-3 To which address will the replenishment delivery be sent?
___________________________________________
___________________________________________
3-2 On the basis of which assignment does the system determine the ship-to party in the
replenishment delivery?
__________________________________________________________________
(C) SAP AG LO925 4-23

3-3 Find the delivery type and the item category in the replenishment delivery:
Delivery type: ______________________
Item category: ___________________

3-3-1 Which factor does the delivery type depend on, in your particular case?
1. __________________________
2. __________________________
3-3-2 Find the setting in the system.
Menu path: ___________________________________________________

3-3-3 Which settings would you have had to make for this topic during the system
preparations, if you had not intended to use the LE outbound delivery for
stock transfer?
____________________________________________________________
(C) SAP AG LO925 4-24

Exercises

Topic: Executing Picking and Posting Goods Issue

 Close the one-step procedure for stock transfer with the goods issue
posting
 Explain which movement type is used
 Query the status of the stock transfer procedure
The shipping activities - picking, packing, printout of outbound delivery

notes, and so on - are to be carried out on the basis of the delivery.
Since the system uses the one-step procedure, goods issue posting is to
trigger a goods receipt posting automatically.
4-1 Initiate picking by creating a transfer order for the replenishment delivery you
created earlier.
Depending on the menu path you use to create the transfer order, you
may have to enter the warehouse number (012).
4-2 Post the goods issue for the above replenishment delivery using the one-step
procedure or collective processing.
4-3 Return to the stock overview for material T-AUE##.

Plant 12##: ____________________
Plant 14##: ____________________

4-3-2 Describe how the situation would be different if you used the two-step
procedure. In which stock type for which plant would the entry exist?
______________________________________________________
(C) SAP AG LO925 4-25

4-4 Call up the document flow for your replenishment delivery.
4-4-1 Display the material document from the document flow.
4-4-2 Which movement types has the system used?
For goods issue: __________________
For goods receipt: __________________
4-5 In the purchasing department of the receiving plant, there is an inquiry on the
progress of the stock transfer procedure.
Display the purchase order history.
(C) SAP AG LO925 4-26

Intercompany Stock Transfer Solutions

Topic: Preparations
1-1
1-1-1 IMG: Materials Management  Invoice Verification  Purchasing 
Purchase Order  Set Up Stock Transport Order
Select Assign delivery type/checking.
Whether or not you assigned a delivery type to the combination of

purchasing document type and supplying plant is the decisive factor here. If
you have done so, the system uses the LE outbound delivery for the
shipping process.
1-1-2 Select New entries.

Delivery type: NL
Checking rule: RP
Select the Ship.sch. field.
1-2 IMG: Materials Management  Purchasing  Purchase Order  Set Up Stock

Transport Order
Choose Purchasing document type and then New entries.

Plant: 14##
Select the One-step field.
1-3 Logistics  Sales and Distribution  Master Data  Business partners 

Customer  Create  Sales and Distribution

Customer: 140##
Sales area
Division: 00
(C) SAP AG LO925 4-27

Reference
Customer: 14000
Division: 00
Address tab page:

Name: plant 14## Stuttgart Service
Street/house number: Haeberle Weg 2
Postal code/town: 70000 Stuttgart
Region: 08
Transportation zone: D000070000
Control data tab page:

Trading Partner: 1000
VAT Reg. number: DE123456789
Otherwise, leave the default values.

Transport Order
Select Plant and then Detail for plant 14l##.
Customer number - plant: 140##
(C) SAP AG LO925 4-28

Solutions

Topic: Creating a Stock Transport Order
2-1 Logistics  Materials Management  Purchasing  Purchase Order  Create

 Vendor/Supplying Plant Known
Choose the Stock transport order purchase order type.

Choose Expand at Header and then the Org.data tab page.

Company code: 1000
Choose Expand at Item overview.

Material: T-AUE##
PO quantity: 300 M
Deliv. date: current date + 2 weeks
Plant: 14##
The System uses the item category “stock transfer”. The system will not accept a
different item category.
Choose Save.
2-2 Logistics  Materials Management  Inventory Management  Environment

 Stock  Stock Overview
Material: T-AUE##
Delete the default entries for Plant and Storage location.
Choose Execute.
2-2-1 Plant 12##: 2000 M
Plant 14##:50 M
2-2-2 Double-click on the line for plant 12##.
The quantity released by stock transport order in plant 12## is listed under
the StckTrsptOrderRel stock type:- 300 M
(C) SAP AG LO925 4-29

Solutions

3-1
for Delivery  Sales Orders and Purchase Orders

Choose Execute.
In the list, select the line which refers to the purchase order your created
above.
Documents, in order to determine the outbound delivery number.
Outbound Delivery  Display
Ship-to party: 140##

3-1-3 The system copies the shipping address of the replenishment delivery from
the customer master record of the ship-to party.
Choose Address next to the ship-to party field.
3-2 At the beginning of the exercises for this unit, you made the following settings:
IMG: Materials Management  Purchasing  Purchase Order  Set Up Stock
Transport Order
Choose Plant and then Details for plant 14##.
Customer number. - plant: 140##
(C) SAP AG LO925 4-30

3-3 Logistics  Sales and Distribution  Shipping and Transportation  Outbound
Delivery  Display
Choose Header Details and then the Administration tab page.
Delivery type: NL (replenishment dlv.)
Go back to Item overview.

Item category NLN (standard item without order)
3-3-1 The delivery type used for the example for stock transfer within company
code depends on the following:
1. Purchasing document type UB
2. Supplying plant 12##
3-3-2 IMG: Materials Management  Purchasing  Purchase Order  Set
Up Stock Transport Order
Choose Assign delivery type/checking.
Purchasing document type UB – supplying plant 12##: NL

3-3-3 You do not assign a delivery type to the combination of purchasing
document type and supplying plant.
(C) SAP AG LO925 4-31

Solutions

4-1 Logistics  Sales and Distribution  Shipping and Transportation  Picking

 Create Transfer Order  Via Outb. Delivery Monitor

Picking date: to current date + 2 weeks
Choose Execute.
Select the outbound delivery you created in the list of daily workload for picking,
and choose Create TO in background.
4-2 Logistics  Sales and Distribution  Shipping and Transportation  Post

Goods Issue  Collective Processing Via Outb. Delivery Monitor

Planned goods movement date: to current date + 2 weeks
Choose Execute.
Select the delivery you created above in the deliveries list for goods issue and then
choose Post goods issue.
4-3 Logistics  Materials management  Inventory management  Environment

Material: T-AUE##
Delete the default entries - if there are any - for Plant and Storage location.
Choose Execute.
4-3-1 Plant 12##: 1700 M
Plant 14##:350 M
4-3-2 If you were to use the two-step procedure, the unrestricted-use stocks would
be in:
Plant 12##: 1700 M
Plant 14##: 50 M
The Stock in transit stock type would have an entry of 300 M in plant 14##
(C) SAP AG LO925 4-32

since the posting would be made to the stock in transit of the receiving
plant.

Delivery  Display  Environment  Document flow
4-4-1 Position the cursor on the material document (TF to stck in transit) in the
document flow and choose Display document.
4-4-2 Movement type for goods issue: 647
Movement type for goods receipt: 101

Display
You may first have to choose Expand at Item.
Choose the Purchase order history tab page.
The outbound delivery document is displayed in the purchase order history, along
with the material document.
(C) SAP AG LO925 4-33

Cross-Company Stock Transfer
Contents:
 Creating a Stock Transport Order
 Creating a Replenishment Delivery
 Executing Picking and Posting Goods Issue
 Creating an Internal Invoice
 Posting invoice receipt for a purchase order
 SAP AG 1999

Cross-Company Stock Transfer:
Unit Objectives I
 Set up the procedure for stock transport orders with

LE outbound delivery and SD billing for certain
plants in different company codes
 Trigger the cross-company code stock transfer
process with the help of a standard purchase order
 Give reasons for the choice of delivery type
 List the effects of the goods issue posting in
inventory management
 Explain the determination of the movement type
 SAP AG 1999

Unit Objectives II
 Determine to which company code the internal

invoice is assigned
 Post goods issue for a replenishment delivery
 Post the invoice receipt in invoice verification
 SAP AG 1999

Overview Diagram
delivers delivers
Sales Sales
Company 1
Company code

Plant 2
delivers delivers
orders delivers
orders delivers
Plant

Company

 SAP AG 1999

Business Scenario
 Your company acquires materials through stock

transfers from stocks of other companies
belonging to the same corporate group.
 It should be possible to post goods issue and
goods receipt in separate worksteps if both
subsidiaries involved are too far apart, making an
immediate goods receipt posting unsuitable.
 SAP AG 1999

Process for Cross-Company Stock Transfer (Two-
Step Procedure)
Company Sales
1000 org. 1000 4
Plant 1200
2 3
orders delivers bills
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 In contrast to the intra-company stock transfer, the two plants in the process described in this unit
belong to different company codes.
 At the beginning of the unit "Intra-company Stock Transfer" we described the different stock
transfer procedures. Here in this unit we will describe the procedure "with LE outbound delivery and
SD billing". This procedure is used for cross-company stock transfers if R/3 shipping and billing
functions are to be used.
 In the receiving plant (plant 2200), a purchase order is created first.
 As soon as the purchase order is due for shipping, an outbound delivery is created. As soon as the
shipping activities have been executed, the goods issue is posted in the delivering plant (plant 1200).
Then the goods are shipped between plant 1200 and plant 2200.
 Finally, the internal invoice is created in sales organization 1000, that is, in the delivering company.
Intercompany billing between the two company codes can now take place.
 Since the two-step procedure is to be used, the goods receipt is posted as soon as the goods are
received in the receiving plant.
 When the invoice is received, it can be entered in the logistics invoice verification department of the
receiving company.

1st Process Step: Create a Stock Transport Order
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 The stock transfer procedure begins with the entry of a purchase order in the purchasing department
of the receiving plant. If required, there is a reference to a purchase requisition or a delivery plan.
 In the standard version, you use the order type NB ("standard purchase order"). In Customizing you
can define whether a warning or error message is issued if an unsuitable order type (for example,
UB) is entered.
 The stock transport purchase order is included in the planning activities of the delivering and the
receiving plants.
 Depending on the system setting, it is possible to have an availability check run in the delivering
plant to check whether or not the requested goods can be delivered on time.

Order Types for Stock Transport Order
Plant 1200
Purchase order Purchase order
Deliver.plant
Deliver.plant 1200 Vendor 10000
Order type UB Order type NB
Item category U Item category _
Plant 1400 Plant 2200
 SAP AG 1999
 In contrast to the intra-company stock transfer, order type UB is not used for the cross-company
stock transfer with outbound delivery and billing. You create a standard order (order type NB) with
item category blank ("Normal"). For the intra-company stock transfer, you use item category U
("stock transfer").
 When you create the stock transport purchase order with order type NB, you specify a vendor. A
plant is assigned to this vendor in the vendor master rccord. This plant is called the delivering plant.
However, if you create a stock transport order with order type UB, you enter the delivering plant
immediately.
 The plant specified in the order item is the receiving plant.

2nd Process Step: Create a Replenishment
Delivery
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 In the same way as the procedure for intra-company stock transfers, a replenishment delivery is
created at the beginning of the sales activities.
 The replenishment delivery is created solely in a delivery collective run in the respective shipping
point. The purchase orders are used as selection criteria here.
 The determination of the ship-to party and the other outbound delivery parameters takes place in the
same way as for intra-company stock transfers:
 A customer number is assigned to the receiving plant in Customizing. The same setting as for
intra-company stock transfers is used.
 The combination of order type NB and the delivering plant refers to a delivery type. For this
purpose, use delivery type NLCC ("Replenishment Cross-company").

3rd Process Step: Execute Picking and
Post Goods Issue
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 With cross-company stock transfers, the replenishment delivery is processed in shipping as usual.
However, if you wish to have different processing compared to outbound deliveries for sales orders
or replenishment deliveries for intra-company stock transfers, you can define this in Customizing for
the delivery type and the item category.
 If required, the replenishment delivery can also be packed, or planned into an outbound shipment.
 As soon as the shipping activities are closed, the goods issue is posted in LE shipping for the
replenishment delivery.
(C) SAP AG LO925 5-10

Determination of the Movement Type
Order type NB
Delivery type NLCC
Delivery type NLCC
Item category grp NORM Item category NLC
Usage V
Item category NLC

Schedule line categ.
categ. NC
MRP type --
Movement type 643/645

 SAP AG 1999
 When the goods issue for the replenishment delivery is posted, the system must know the movement
type to use. This is determined from the schedule line category, which, in turn, is itself determined
from other factors.
 In Customizing, you assign delivery type NLCC to the combination of order type NB and the
delivering plant.
 With the help of the delivery type and the item category group of the material, the item category
determination procedure for the delivery ensures that item category NLC is found for standard items,
that is, materials with item category group NORM..
 In the standard version, the system determines schedule line category NC for item category NLC and
materials with any MRP type. If you have different settings, maintain the schedule line category
search accordingly.
 The standard setting for schedule line category NC defines that, in the case of the two-step
procedure, movement type 643 is used.
 The movement types for the two-step and one-step procedures for intra-company stock transfers are
also determined with the help of the assignment of the delivery type as well as the item and schedule
line category search.
(C) SAP AG LO925 5-11

Stock Changes after Goods Issue:
(Two-step Procedure)
Delivering Receiving
Plant Plant
use stock - use stock =
Open order qty =

Vendor to cust. -
Stock in transit =
Stock in transit +
 SAP AG 1999
 When the goods issue is posted, the stock types "unrestricted-use stock" and "Deliv. to customer"
change in the stock overview of the delivering plant because the goods have left the plant as the
result of an outbound delivery (in this case, the replenishment delivery). Also, the stock accounts and
material expense accounts in the financial accounting of the delivering company code are updated.
Here the valuation price of the material flows into the delivering plant.
 In the two-step procedure for the cross-company stock transfer , the goods have not yet been posted
in the receiving plant at this point. From the accounting viewpoint, they do not yet belong to the
company code of the receiving plant.
 The unrestricted-use stock and the open order quantity remain unchanged.
 The quantity that is "in transit" is shown in the stock overview of the receiving plant as "Stock in
transit CC" (cross-company stock in transit).
 The value of the cross-company stock in transit can also be displayed as an accumulated value for a
plant or a company code.
(C) SAP AG LO925 5-12

4th Process Step: Create Internal Invoice
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 The delivering company code (company 1000) issues an invoice for intra-company billing of the
goods delivered to the receiving plant.
 The internal invoice is generated by sales organization 1000. This involves the relevant sales
organization for internal billing, which is assigned to the delivering plant in Customizing. The same
setting is also relevant for intra-company billing for cross-company sales activities.
 The internal invoice is created with direct reference to the replenishment delivery, or it is created in a
collective run. When you process the delivery due list, set the indicator for “Intra-company billing”.
 If there is an agreement between the parties involved, you can set the system so that when the
internal invoice is created, invoice receipt is automatically triggered in the logistics invoice
verification of company code 2200.
 Similar to cross-company sales, the automatic invoice receipt is initiated by the output control for
billing in connection with the EDI technique. In this case, the EDI output category INVOICE is used
in the MM variant.
(C) SAP AG LO925 5-13

Elements of Internal Invoice
Default order type for

Billing type IV
delivery type
Receiving plant Payer 22000
Delivering plant Company code 1000
Delivering plant Sales organization 1000
Delivering plant Distribution channel 12
Delivering plant Division 00
 SAP AG 1999
 The default for the billing type for the internal invoice is derived from order type DL, which is
assigned in Customizing to delivery type NLCC as the “Default order type for deliveries without
order reference”.
 The payer results from the assignment of a customer number to the receiving plant. This setting is
also used for determining the ship-to party in the replenishment delivery.
 The company code in the internal invoice is the delivering company code, that is, the company code
of the delivering plant.
 The sales area is assigned in Customizing to the delivering plant. It applies to company-internal
stock transfers as well as to cross-company sales.
(C) SAP AG LO925 5-14

5th Process Step: Post Goods Receipt
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 When the goods arrive in the receiving plant, a goods receipt for the purchase order is posted there
with movement type 101, with the specification of the replenishment delivery number.
 If the purchase order is known, this can also be entered.
 There is no goods receipt posting if the stock transfer is being made using the one-step procedure.
 With the goods receipt posting, the system creates a purchase order history record and an entry in the
document flow for the replenishment delivery.
(C) SAP AG LO925 5-15

Stock Changes after Goods Receipt
(Two-step Procedure)
Delivering Receiving
Plant Plant
use stock = use stock +
Open order qty -

Vendor to cust. =
Stock in transit =
Stock in transit CC -
 SAP AG 1999
 With the goods receipt posting, the unrestricted-use stock in the receiving plant increases. The open
order quantity is reduced since the delivery for the stock transport order has been received.
 The “stock in transit CC” in the stock overview of the receiving plant is reduced.
 From the accounting viewpoint, the goods are now assigned to the company code of the receiving
plant. For this purpose, an accounting document has been created in which the order price is the price
of the material.
 The stock information in the delivering plant is not influenced by the goods receipt.
(C) SAP AG LO925 5-16

Purchase Order
Company Sales
1000 org. 1000 4
Plant 1200
2 3
1 5 6
Company Plant 2200

2200
 SAP AG 1999
 As soon as the invoice of the delivering company code has been received, the invoice receipt is
posted in the logistics invoice verification of the receiving company code.
 If the invoice receipt has already taken place automatically in internal billing, the invoice is assigned
a payment block.
When the quantity and, if planned, the quality of the received goods have been checked, the invoice
can be released for payment. Then the payment block is removed in accounting.
(C) SAP AG LO925 5-17

Checklist for Customizing I
 Assignment of a sales area to intercompany

billing for the delivering plant
 Assignment of a customer to the receiving plant
 Assignment of the delivery type for the
replenishment delivery
 Decision on one-step or two-step procedure
 Maintenance of settings required for automatic
invoice receipt
 SAP AG 1999
(C) SAP AG LO925 5-18

Checklist for Customizing II

 Maintenance of item category determination in
the delivery
 Entry of the movement type in the schedule line
category
determination
 Entry of the invoice type for intercompany
billing in the default order type that is assigned
to the vendor
 SAP AG 1999
(C) SAP AG LO925 5-19

Unit Summary I

 Set up the procedure for stock transport orders with
LE outbound delivery and SD billing for certain plants
in different company codes
 Trigger the cross-company code stock transfer
process with the help of a standard purchase order
 Give reasons for the choice of delivery type
 List the effects of the goods issue posting in
inventory management
 Explain the determination of the movement type
 SAP AG 1999
(C) SAP AG LO925 5-20

Unit Summary II
...
 Determine which company code the internal
invoice is assigned to
 Post goods issue for a replenishment delivery
 Post the invoice receipt in invoice verification
 SAP AG 1999
(C) SAP AG LO925 5-21

Cross-Company Stock Transfer Exercises
Unit: Cross-Company Stock Transfer

Topic: Preparations

 Set up the procedure for stock transport orders with LE outbound
delivery and SD billing for certain plants in different company codes
The Paris-based branch of your company purchases several materials by

stock transfer from the central warehouse of the German subsidiary in
Dresden.
For this replenishment delivery type, the shipping process shall in
principle be executed in the same way as with customer deliveries.
Since both locations are too far away from each other, the posting of the
goods receipt at the receiving location does not take place at the same
time as the goods issue posting.
Your company decides to introduce cross-company code stock transfers with stock
transport orders and to use the LE outbound delivery for the execution of the delivery
process. An SD billing document is used for internal settlement.
1-1 Make an entry that determines the delivery type to be used for replenishment
delivery for cross-company code stock transfer in supplying plant 12##.
Purchasing document type: NB

Delivery type: NLCC
Checking rule: RP
Delivery scheduling should be executed.
1-2 In addition, make the appropriate settings so that the system uses the two-step
procedure for stock transfers with supplying plant 12## and receiving plant 22##.
Make an appropriate entry:

Plant: 22##
1-3 In this scenario, the plant 22## is the ship-to party and the payer. To do this, a
customer master record is necessary. During the stock transfer process, the system
(C) SAP AG LO925 5-22

copies various shipping and billing data, such as the address of the ship-to party and
the payment terms, from the corresponding customer master data.
Create the customer master record which represents plant 22##.

Customer: 220##
Company code: 1000
Division: 00
Reference
Customer: 22000
Company code: 1000
Division: 00
Name: Division 22## Paris

Street/house number: rue des Erables 32
Postal code/town: 75015 Paris
Region: 75
Transportation zone: F000010000
Trading Partner ID: 2200

VAT Reg. number: FR93341612695
Tax classification: 0
1-4 Assign customer number 220## to receiving plant 22##.
1-5 The supplying plant 12## should be represented by the vendor master record T-
S100##.
Make an appropriate specification in the vendor master.
*1-6 Optional:
Do you have to enter a sales area for intercompany verification for receiving plant
22## to ensure that your cross-company code stock transfer process functions
smoothly?
Give reasons for your answer.
__________________________________________________________________
__________________________________________________________________
(C) SAP AG LO925 5-23

Exercises

Topic: Creating a Purchase Order for Stock Transports

 Trigger the cross-company code stock transfer process with the help of
a standard purchase order
A department of the French branch requires a particular material. It is to

be purchased from a central warehouse of the German subsidiary via
stock transfer.
2-1 Create a purchase order for 30 PC of material T-AUD## .
Vendor: T-S100##
Document type: current date

Company code: 2200

Plant: 22##
Is the plant you entered in the purchase order the supplying or the receiving plant?
_________________________________________
Write down the PO number: ___________________________
2-2 Which shipping point will process the outbound delivery?
Shipping point: ____________________
(C) SAP AG LO925 5-24

2-3 Go to the stock overview for material T-AUD##:
Plant 12##: ____________________
Plant 22##: ____________________

2-3-2 Where can you find the released quantity in plant 12##?
__________________________________________________
(C) SAP AG LO925 5-25

Exercises


 Give reasons for the choice of delivery type
The replenishment delivery is generated at the shipping point assigned to

the central warehouse for the processing of the shipment.
point X0## related to plant 12##. Use the collective processing function to create
the replenishment delivery.
3-1-1 Deliver the purchase order created earlier by processing the delivery due list
for shipping point X0##.


3-1-2 Who is the ship-to party for the replenishment delivery?
_____________________________
3-2 Determine the delivery type and the item category in the replenishment delivery:
Delivery type: ______________________
Item category: ___________________

3-2-1 Which factors does the delivery type depend on in this particular case?
1. __________________________
2. __________________________
(C) SAP AG LO925 5-26

*3-2-2 Optional:
Which essential setting is different for the two delivery types for stock
transfers when compared to a delivery type used for outbound deliveries
with reference to sales orders?
Field name: _____________________________________________
Look up the appropriate setting for delivery type NLCC.
Menu path: ___________________________________________________

Order Required:
(C) SAP AG LO925 5-27

Exercises


 List the effects of the goods issue posting in inventory management
 Explain the determination of the movement type
Once you have executed the shipping activities and goods issue, this issue
should be entered in inventory management for the supplying plant.
Posting to the receiving plant should not be carried out before the actual
receipt of the material in the receiving plant.
4-1 Initiate picking by creating a transfer order for the replenishment delivery you
created earlier.
4-2 Post the goods issue for the above replenishment delivery using the one-step
procedure or collective processing.
4-3 Return to the stock overview for material T-AUD##:

Plant 12##: ____________________
Plant 22##: ____________________

4-3-2 What order quantity does plant 22## contain? ________________
4-3-3 Under which stock type and under which plant does the system store the
goods in transit?
Plant: ___________________________
(C) SAP AG LO925 5-28

Stock type: _________________________________
4-4 Go to your replenishment delivery in the material document display via document
flow.
4-4-1 Which movement type did the system use for the goods issue?
__________________
4-4-2 Which Customizing object does the movement type belong to?
_________________________________________
*4-5 Optional:
You want to check why the system used the movement type you found in the above
exercise.
4-5-1 Which parameters does the system use to determine the schedule line
category?
1. ______________________________________
2. ______________________________________
4-5-2 Look up the relevant entry in the schedule line assignment:
Item category: _______________________________
MRP type: _____________________________
Schedule line category: ________________________

4-5-3 Display the definition of the schedule line category you found.
Which movement type has been entered for the two-step procedure?
________________
(C) SAP AG LO925 5-29

Exercises


 Determine to which company code the internal invoice is assigned to
 Explain the origin of the sales area
 Explain how the system determines the payer
For intercompany billing of goods that the German company delivered to

the French branch, the German branch creates the internal invoice. This
step should not differ much from customer billing. Therefore, an SD
billing document will be used.
The invoice should be sent in the mail to the French company code. The
two companies have agreed that there will be no automatic invoice
receipt when the internal invoice is created.
5-1 Create the internal invoice with explicit reference to the replenishment delivery you
created earlier, using the one-step procedure this time.
5-1-1 Find out to which company code and to which sales area the internal invoice
has been assigned.
Company code: ______________________
Distribution channel: __________________
Division: __________________
5-1-2 Who is the payer and which terms of payment are set?
Payer: ____________________
Terms of payment: _______________

5-1-3 Save the internal invoice and write down the document number.
Internal invoice: _______________________
5-2 You want to find out the origin of several entries in the internal invoice:
5-2-1 Where does the system get the terms of payment?
___________________________
(C) SAP AG LO925 5-30

5-2-2 Which factor does the payer depend on?
________________________
5-2-3 Which sales area does the system use to access the master data to determine
the terms of payment?
Distribution channel: ___________________
Division: __________________
How does the system determine these organizational units?
Menu path: ___________________________________________________
____________________________________________________________
(C) SAP AG LO925 5-31

Exercises


 Post goods issue for a replenishment delivery
The replenishment delivery arrives at the receiving plant. The goods

receipt is now to be posted with reference to the attached delivery
document.
6-1 Your are an employee at the goods receiving point of the receiving plant. Post
goods receipt with reference to the replenishment delivery utilized earlier.
Outbound delivery: document number noted above for the replenishment

delivery
6-2 Display the stock overview for material T-AUD## in plant 22##.
6-2-1 How much unrestricted-use stock does the receiving plant contain now?
____________________
6-2-2 How much cross-company code stock in transit does it contain?
____________________
(C) SAP AG LO925 5-32

Exercises


 Post the invoice receipt in invoice verification
The two companies involved have agreed that for stock transfer
procedures, the invoice will be sent by mail from the German to the
French branch. Therefore, posting to the vendor’s account in the French
company does not automatically take place during the creation of the
internal invoice.
You are to post the invoice receipt manually.
7-1 The invoice issued by the German branch has arrived:
INVOICE
IDES AG (vendor T-S100##)
Invoice date: (current date)
Invoice 590013##
Invoice for your purchase order 4500....
T-AUD## Monitors Sunny 01 30 PC 120000 FRF

Output tax 0% (E4) 0 FRF
Invoice amount: 120000 FRF
Enter the invoice in the company code 2200.
Invoice: _____________________________
(C) SAP AG LO925 5-33

(C) SAP AG LO925 5-34
Cross-Company Stock Transfer Solutions

Topic: Preparations

Transport Order
Select Assign delivery type/checking and then choose New entries.

Delivery type: NLCC
Checking rule: RP
Select the Ship.sch. field.

Transport Order
Choose Purchasing document type and then New entries.

Plant: 22##
Do not select the One-step field!
1-3 Logistics  Sales and Distribution  Master Data  Business partners 

Customer  Create  Complete

Customer: 220##
Company code: 1000
Sales area
Sales organization 1000
Division: 00
Reference
Customer: 22000
Company code: 1000
Division: 00
(C) SAP AG LO925 5-35

Address tab page:
Name: Division 22## Paris
Street/house number: rue des Erables 32
Postal code/city: 75015 Paris
Region: 75
Transportation zone: F000010000
Control Data tab page:

Trading Partner ID: 2200
VAT Reg. number: FR93341612695
Billing document tab page

Tax classification: 0
Otherwise, leave the default values.

Transport Order
Customer no. - plant: 220##
1-5 Logistics  Materials Management  Purchasing  Master Data  Vendor 

Purchasing  Change (Current)
Vendor: T-S100##
Select the Purchasing Data view.
Choose Enter
Extras  Add. purchasing data
Plant: 12##
*1-6 Optional:
To make sure the stock transfer procedure via LE outbound delivery and SD billing
document functions smoothly, you have to assign the sales organization,
distribution channel and division for intercompany billing to the supplying plant
only.
For the receiving plant, these organizational units do not have to be assigned since
the receiving plant appears as a customer in the process. Instead, it is more
important that the corresponding customer master record is available in the
appropriate sales areas.
(C) SAP AG LO925 5-36

Solutions

Topic: Creating a Purchase Order for Stock Transports

Choose the Standard PO purchase order type.
Vendor: T-S100##
Choose Expand at Header and then the Org.data tab page.

Company code: 2200
Choose Expand at Item overview.

Material: T-AUD##
PO quantity: 30 PC
Plant: 22##
The plant you explicitly specified in the purchase order is the receiving plant.
Choose Save

Display
Choose the Shipping tab page in the lower screen area (Item detail).
Shipping point: X0##
(C) SAP AG LO925 5-37

Material: T-AUD##
Delete the default entries for plant and storage location.
Choose Execute.
2-3-1 Plant 12##: 10000 PC
Plant 22##: 5 PC
The quantity released by stock transport order in plant 12## will also be
listed under the StckTrsptOrderRel stock type in the case of cross-company
code stock transfer: 30 PC
(C) SAP AG LO925 5-38

Solutions

3-1
for Delivery  Sales Orders and Purchase Orders

Choose Execute.
In the list, select the line which refers to the purchase order your created
above.
Documents, in order to determine the outbound delivery number.
Outbound Delivery  Display
Ship-to party: 220##

Choose Header Details and then the Administration tab page.
Delivery type: NLCC
Choose overview; Item overview tab page.

Item category: NLC
3-2-1 The delivery type used for the example for stock transfers between company
codes depends on the following:
1. Purchasing document type NB
2. Supplying plant 12##
(C) SAP AG LO925 5-39

*3-2-2 Optional:
In the Document required field within configuration of the delivery type,
you can determine the type of preceding document for a delivery.
IMG: Logistics Execution  Shipping  Deliveries  Define Delivery

Types
Choose Details for delivery type NLCC.
Order required: Purchase order required
(C) SAP AG LO925 5-40

Solutions

4-1 Logistics  Sales and Distribution  Shipping and Transportation  Picking


Choose Execute.
4-2 Logistics  Sales and Distribution  Shipping and Transportation  Post


Planned goods movement date: to current date + 2 weeks
Choose Execute.
Select the delivery you created earlier in the deliveries list for goods and then
choose Post goods issue.

Material: T-AUD##
Delete the default entries - if there are any - for Plant and Storage location.
Choose Execute.
4-3-1 Plant 12##: 9970 PC
Plant 22##: 5 PC
Open order qty: 30 PC

4-3-3 Plant: 22##
Stock type: Stock in transit CC
(C) SAP AG LO925 5-41

Environment  Document flow
Position the cursor on the material document in the document flow and choose
Display document.
4-4-1 Movement type: 643
4-4-2 Schedule line category
*4-5 Optional:
4-5-1 1. Item category
2. MRP type (stored in the material master)
Lines  Assign Schedule Line Categories
Item category: NLC

MRP type: blank
Schedule line category default (SchLC field): NC
Since you did not specify the MRP type in the schedule line category
assignment for item category NLC, you do not need to look up the MRP
type in the material master of material T-AUD##.
Lines  Define Schedule Line Categories
Select Details for schedule line category NC.
Movement type: 643
The Movement type 1-step field contains the movement type that the system
would use for the one-step procedure.
(C) SAP AG LO925 5-42

Solutions

Document: Document number of the replenishment delivery you wrote down

earlier
Select Execute.
5-1-1 Choose Display for document header details.
Company code: 1000

Division: 00
The company code is the supplying company.

5-1-2 Payer: 220##
Terms of payment: ZB01
5-1-3 Choose Save.
5-2
5-2-1 The system copies the terms of payment from the customer master record of
the payer.
5-2-2 The payer results from the assignment of a customer number to the
receiving plant.
IMG: Materials Management  Purchasing  Purchase Order  Set

You have made the appropriate assignment to plant 22## in a previous

exercise.
(C) SAP AG LO925 5-43

5-2-3 Sales organization: 1000
Division: 00
This is the sales area that is assigned to the supplying plant in Customizing.
IMG: Materials Management  Purchasing  Purchase Order  Set

The entries have been made in Customizing for Intercompany Billing in

connection with the cross-company code sales processing.
(C) SAP AG LO925 5-44

Solutions


Movement  Goods Receipt  For Purchase Order  PO Number Unknown
Choose Outbound delivery in the upper screen area, to enter the outbound delivery
number.
Outbound delivery: document number noted earlier for the replenishment

order
Choose Enter or Execute.
Select Item OK.
Choose Post.

Material: T-AUD##
Plant: 22##
Choose Execute.
6-2-1 Plant 22##: 35 PC
Stock in transit CC: 0
(C) SAP AG LO925 5-45

Solutions

7-1 Logistics  Materials Management Logistics Invoice Verification 

Document Entry  Enter Invoice
Choose Edit  Switch company code.
Company code: 2200

Reference: 590013##
Amount: 120000 FRF
Tax code: E4
Purchase order/scheduling agreement: document number created earlier
Choose Enter.
Choose Post.
(C) SAP AG LO925 5-46

Subcontracting
Contents:
 Creating a subcontract order
 Monitoring provision stock and creating a delivery
 Executing sales activities and posting goods issue
 Posting invoice receipt for a purchase order
 SAP AG 1999

Subcontracting: Unit Objectives
 Execute the steps for processing subcontracting

activities in the system
 Explain the advantages and disadvantages of
processing with the LE outbound delivery
 Describe how the functions for subcontracting are
included in a scheduling agreement
 SAP AG 1999

Subcontracting: Overview Diagram

Sales Sales
Company 1
Company code

Plant 2
delivers delivers
orders delivers
orders delivers
Plant

Company

 SAP AG 1999

Subcontracting: Business Scenario
 With subcontracting, your vendor (that is, the

subcontractor) receives components from which
they manufacture a product. The end product is
requested by your company through a purchase
order. Also, the components that the vendor
requires for production of the ordered product are
listed in the purchase order and also provided to
the subcontractor. The provision of materials may
occur via an SD delivery. The components can be
determined by the system through a bill of material.
 SAP AG 1999

Subcontracting Process
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination of Company 1000
requirements
 SAP AG 1999
 You order the product to be produced or finished at the vendor. In the purchase order, you enter the
components that you are going to provide to the vendor.
 In the system, you enter the issue of the components to the vendor. You enter a goods receipt for the
product manufactured by the vendor. This is when you also post the consumption of goods.
 You enter the invoice of the vendor with reference to the purchase order. When you do so, you can
also enter a subsequent adjustment for excess consumption or under-consumption.

1st Process Step: Determination of Requirements
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
requirements
 SAP AG 1999
 If there is a requirement for the finished product marked with the special procurement type
"Subcontracting", the planning run generates a purchase requisition with item category L
("Subcontracting") or a planned order with item category L. This planned order is converted to a
purchase requisition with the item category L. You see the item category, that is the special
procurement type L, when you call up the MRP element in the requirement list or the MRP list.
 At the same time, the bill of material for the finished product is exploded. Dependent requirements
are created for the planned start date of the planned order or for the release date of the purchase
requisition at the finished product level.

2nd Process Step: Create Subcontract Order
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
requirements
 SAP AG 1999
 The subcontracting items in the purchasing documents have their own item category. Each SC item
has one or several subitems that contain the components to be provided to the vendor.
 You can enter the components manually or determine them through the BOM explosion.
 Reservation items are generated for the components that are relevant for requirements planning.
 The order price is the price for the subcontracting service of the vendor.
 You can store conditions for subcontract orders in a subcontractor purchasing info record.
 As of release 4.0.A it is possible to attach service lists to subcontract order items. In this way, you
can transmit detailed specifications to your vendor on which services are to be rendered. The service
specifications have an informative character. They have no effect on the value of the item.

Document Type and Item Category for
Subcontract Order
Purch.
docum.
Purchase order
Allowed item categories
PReq Item category
B
Item category Subcontr. _______
K
L - Subcontracting Comp. __
Stand. ___
Doc.type S
Subcontr. ___ Comp. __
Subcontr. _______
Link Pur.Req.- Doc. Type Comp. __

Comp. __
 SAP AG 1999
 Separate document types are set for each purchasing document type. In the document type
assignment, you can store follow-on relationships between document types of different purchasing
document categories.
 The allowed item categories are assigned to the individual document types in Customizing. In the
standard definition, item category L for subcontracting is allowed for document type NB (standard
order).
 Item categories rule how a material is to be procured. The item category “subcontracting” defines
that components are provided for a material that is ordered at the vendor.

3rd Process Step: Monitor Provision Stock and
Execute Transfer Postings for Components
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
1 Determination Company 1000
of requirements
 SAP AG 1999
 The components at the subcontractor site are managed in a special stock for vendor. This stock is
valuated and available for planning purposes.
 The goods consumption of the components can only be issued from the supply stock for the
respective vendor.
 Using an evaluation function, you can monitor the stocks supplied to the vendor.

LE Outbound Delivery for Components
Vendor Subcontr.A
Post x Comp X1 Create

goods x Comp X2 outbound
issue delivery
x Comp X3
Comp X4
 SAP AG 1999
 Before Release 4.0, a transfer posting could only be triggered directly with movement type 541 from
the monitoring list for stock of material provided to vendor.
 As of release 4.0, you can also create an LE outbound delivery for a subcontractor from the SC stock
monitor. In this way, you can deliver material supplies to the subcontractor in connection with a
subcontract order.
 This procedure has the advantage that shipping documents and delivery notes are available for
shipping the materials supplied. You can also use the standard functionalities for shipping and
shipment processing such as, for example, picking, packing and planning in transportations.
 You can provide the subcontractor with components, without a subcontract order being available as a
reference. To do so, you execute a transfer posting with movement type 541. For the ease of input,
you can, for example, refer to a bill of material.
(C) SAP AG LO925 6-10

Inventory Management for Components to be
Provided
Vendor
Subcontract
Subcontr. order material
Material provision
Subcontr.rqmnt
Posting change to SC stock

Acquisition to SC stock
Own stock to SC stock
Subcontr.
rqmnt
 SAP AG 1999
 The net requirements calculation for the components to be provided in subcontracting takes into
consideration that the stock of material provided by customer can only be used as a coverage for the
corresponding requirement of material provided. The provision stock already available to a vendor
(subcontractor) can therefore only be used as a coverage for the requirement of material provided to
this subcontractor.
 Only the stock that is not assigned to a subcontractor can be used as unrestricted-use stock to cover
all requirements.
(C) SAP AG LO925 6-11

Settings for LE Outbound Delivery
Plant 1000 Sales organization

Division
Plant Delivery type
Delivery type SC material provision required
Delivery type Partner procedure:

procedure: SC
 SAP AG 1999
 A sales organization, a distribution channel, and a division must be assigned to the plant from which
the components are to be supplied.
 A delivery type must be entered for the purchase order. In the standard version, delivery type LB is
available. The indicator for "Predecessor required" must be set to L.
 A partner procedure should also be assigned to the delivery type. This procedure contains the partner
role.
(C) SAP AG LO925 6-12

Required Master Data for LE Outbound Delivery
Material master record Sales organization

of components and distribution channel
of delivering plant
SC vendor Assign customer
Customer Sales organization,

organization,
Division of delivering plant
Shipping condition
Loading group Shipping point
Plant
 SAP AG 1999
 In the delivering plant, the shipping data (View „Gen. sales / Plant data" in the material master) must
be entered for the component materials.
 A customer must be assigned to the SC vendor in the master record; the customer must be created for
the sales organization, distribution channel, and division of the delivering plant.
 A shipping point must be assigned to the combination of shipping condition (from the master record
of the customer assigned to the SC vendor), loading group (from the material master of the
component), and plant.
(C) SAP AG LO925 6-13

Determination of Outbound Delivery Parameters
and Movement Type
Delivery type LB
Item category LBN
Item category group NORM
Item category LBN

Schedule line cat.
cat. LB
MRP type
Schedule line cat. LB Movement type 541
 SAP AG 1999
 Since the outbound delivery does not refer to a sales order, the system must determine important
information about the outbound delivery parameters using other means.
 The vendor to be used is derived from the Customizing settings for subcontract orders. If there is no
setting in Customizing, delivery type LB is used in the standard version.
 The item category is the result of the item category search for the delivery. Here the criteria for the
delivery type and the item category group of the material play a role. In the standard Customizing
settings, item cateogry LBN is assigned.
 When you post the goods issue for the outbound delivery to the SC vendor, the movement type to be
used must be known to the system. This is derived from the schedule line category that is determined
via the item category.
 In the standard version, schedule line LB is determined for item category LBN and materials with an
arbitrary MRP type.
 The standard setting for schedule line category LB defines that movement type 541 is used.
(C) SAP AG LO925 6-14

4th Process Step: Post Goods Receipt
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
of requirements
 SAP AG 1999
 The goods receipt is entered with reference to the SC order item.

 During goods receipt posting, the system automatically generates the components and creates a
goods issue item internally for each component item. The consumption of the components is
therefore posted retrograde with the goods issue for the material produced.
 If the SC vendor has used more or less component material than planned in the purchase order, you
can correct the component quantity during the GR posting.
 If the SC vendor reports excess consumption or under-consumption only after the GR posting, the
difference must be posted as a subsequent adjustment. This adjustment must be entered with
reference to the purchase order.
 The requirement for materials supply is reduced when the finished products are entered in goods
receipt.
(C) SAP AG LO925 6-15

Purchase Order
(vendor 1010)
sends
2 3 delivers
Purchasing
Warehouse
bills
4
5
Plant 1000
of requirements
 SAP AG 1999
 The invoice for a SC order item refers solely to the labor costs for subcontracting. The labor costs,
together with the value of the used components, gives the valuation price with which the SC material
is valuated.
 If the vendor reports excess consumption or under-consumption of components after the goods
receipt posting, you must then perform a subsequent adjustment. This subsequent adjustment is
entered with reference to a purchase order.
 The subsequent adjustment results in a valuation correction of the material produced.
 Invoice verification for a subcontracting item is the same as invoice verification for a standard item.
(C) SAP AG LO925 6-16

Postings (Without Input Tax) During Goods and
Invoice Receipt
Ordered: Semifin.prod., Components: Raw mat.

OP = Purch.ord.price (labor costs), VP = Valuation price raw mat.
Transaction (1): GR
Transaction (2): IR; Invoice price: IP = OP + Vr (Variance)
Balance sheet account Balance sheet account

Semi-finished product Raw materials GR/IR clearing acct Vendor
(1) OP + VP VP (1) (2) OP OP (1) BP + Vr (2)
(2) Vr
Subcontracting
Cost of goods mfd Consumption acct account
OP + VP (1) (1) VP (1) OP
Vr (2) (2) Vr
 SAP AG 1999
 The postings shown apply to a semi-finished product with a moving average price.
(C) SAP AG LO925 6-17

 If the vendor informs you of excess consumption or under-consumption of components after the
goods receipt has been posted, you have to make a subsequent adjustment. This is entered with
reference to the purchase order.
(C) SAP AG LO925 6-18

Scheduling Agreement
Sched. agt
Item category BOM
L Semi-fin prod 10000 PC BOM

PReqn Semi
Sched.lne 1: 2000 PC
L Semi 1000 Comp 1: 20 PC Comp 1
Comp1 10 Comp 2: 10 PC Comp 2
Comp2 5
Sched.lne 2: 1000 PC
Comp 1: 10 PC
Comp 2: 5 PC
 SAP AG 1999
 In the scheduling agreement item, you enter the material to be produced as a subcontracting item.
 In the schedule lines, you enter the components that are required for production of the quantities
given. Reservation items are created for these component quantites.
 The scheduling of the scheduling agreements can be executed using requirements planning in the
MRP run.
(C) SAP AG LO925 6-19

Subcontracting:
 Assignment of a sales area to the plant


document control in purchasing and sales:
 Allow item category L for purchasing order

document
 If required, assignment of delivery type for
supply of material to the plant
 SAP AG 1999
(C) SAP AG LO925 6-20

Subcontracting: Unit Summary

 Execute the steps for processing subcontracting
activities in the system
 Explain the advantages and disadvantages of
processing with the LE outbound delivery
 Describe how the functions for subcontracting are
included in the scheduling agreement
 SAP AG 1999
(C) SAP AG LO925 6-21

Subcontracting Exercises
Unit: Subcontracting
Topic: Subcontract order

 Describe a subcontract order in detail
 Point out the necessary components, their origins and availability
With subcontracting, you provide your vendor (that is, the subcontractor)
with components from which he manufactures a product. The end product
is requested by your company via a purchase order.
1-1 Vendor T-L10A## produces material T-F1## using subcontracting. You make the
necessary components, which are listed in the bill of materials for this material,
available to the vendor.
1-1-1 Display the bill of material for material T-F1## in plant 1000, BOM usage
1. What quantity of which materials do you need to make available for
material T-F1##?
Logistics  Production  Master Data  Bills of Material  Bill of

Material  Material BOM  Display
Component Quantity
1-1-2 Display the stock overview for the components in plant 1000. What
quantity of these materials is marked for unrestricted use in storage
location 0001? How many does subcontractor T-L10A## already have?
(C) SAP AG LO925 6-22

Look at the current stock situation for help in answering these questions.
Plant 1000 Unrestricted use Stock of material

Material provided to vendor
T-B1##
T-B2##
T-B3##
T-B4##
1-1-3 How would the stock look for the subcontractor in the current
stock/requirements list?
__________________________________
1-1-4 Since you have had material T-F1## produced by subcontractor T-L10A##
many times before, you have recorded the conditions in a purchasing info
record for subcontracting.
Display the purchasing info record for plant 1000 and purchasing info
record 1000 and use that information to complete the following:
Net price: ___________________
Planned delivery time: _________________
1-2 100 pieces of material T-F1## are to be produced for plant 1000 (Hamburg).
Inform purchasing of this in a purchase requisition using a subcontracting item.
The delivery date is four weeks from today.
1-2-1 What item category should you use?

1-2-2 How is the component’s requirement date calculated?
Purchase requisition: ___________________

1-2-3 Display the current stock/requirement list for your components. Has the
available quantity changed?
1-3 Check in Customizing whether the item category is allowed for subcontracting for
the purchasing document type (standard purchase order).
(C) SAP AG LO925 6-23

1-4 Create a purchase order for your subcontractor T-L10A##; use the purchasing
organization 1000.
Refer to your subcontracting purchase requisition item for the material

T-F1##.
1-4-1 What price is suggested for the subcontracting costs per piece? How is this
price calculated?
1-4-2 Which components are related to this purchase order item?
1-4-3 Check the availability of each component.
Material Requirement Confirmed quantity

quantity
Save the subcontract order.
Order number: ____________________
1-5 Did this action affect the available quantity of the components in the current
stock/requirement list?
(C) SAP AG LO925 6-24

Exercises
Topic: Monitoring material provided to vendor and
transfer posting of the components

 Describe the evaluation function for monitoring stock stored at the
vendor’s place of business
 Explain the distinctive features about outbound deliveries for
provision of subcontractor stock.
The components that the vendor needs to produce the product that has
been ordered are provided to the subcontractor. The components can be
determined by the system through a bill of material. The provision of
materials may occur via an SD delivery.
2-1 Display the vendor SC inventory for your subcontracted vendor T-L10A## . What
materials and what quantities do you still need to send to the vendor so that he can
complete the order?
Material Requirement To be delivered

quantity
(C) SAP AG LO925 6-25

2-2 Check whether the necessary settings were made for creating an outbound delivery
for posting change to SC provision stock.
2-2-1 Display the material master records for the bill of material components and
check whether the material master records were created for sales
organization 1000 and distribution channel 12.
2-2-2 Which transportation group and loading group are entered for each material?
Material Transportation group Loading group
T-B1## ____________________________________
T-B2## ____________________________________
T-B3## ____________________________________
T-B4## ____________________________________
2-2-3 What customer is entered for your subcontracted vendor T-L10A## ?
Customer: __________________
2-3 You must provide subcontractor T-L10A## with the components that he needs to
produce material T-F1##. Initiate the sending of the components by creating an
outbound delivery for an open quantity. Use the SC stocks for vendor report to help
you.
Confirm the quantities suggested for each item.
2-3-1 How many outbound deliveries were created?
Outbound delivery number(s): __________________________________
2-3-2 What quantities are delivered to the subcontractor?
2-4 Check the outbound delivery created for the components and corresponding
quantities in shipping.
(C) SAP AG LO925 6-26

Exercises
Topic: Executing sales activities and posting goods issue

 Explain shipping processing
 Explain what characterizes the stock of material provided to the
vendor
Shipping processing is initiated for the outbound deliveries that were

created from the SC stocks for vendor report and goods issue is posted for
the components. As a result, the components are transferred from the
unrestricted use stock into the subcontractor’s provision stock.
3-1 Initiate picking by creating a transfer order for the outbound delivery you created
earlier.
3-2 Post the goods issue for the above outbound delivery using the one-step procedure
or collective processing.
3-3 Check the document flow for your outbound delivery and note the document
number used for posting goods issue to the subcontractor.
Document number: __________________

3-3-1 What is the movement type?
Movement type: ___________________________________________
3-3-2 What items does the material document contain?
_________________________________________________________
(C) SAP AG LO925 6-27

3-3-3 Why is each material listed twice?
_________________________________________________________
3-3-4 Is there an accounting document for this process?
__________________________
Display the stock overview for the component materials and use the
information to complete the following table, which will give you an idea of
the current inventory:
Plant 1000 Unrestricted use Stock of material

Material provided to vendor
3-3-5 Compare this data to the inventory situation at the start of this exercise.
What has changed?
_____________________________________________________________
_
_____________________________________________________________
_
3-4 Run another SC stocks for vendor report for vendor T-L10A## . What has
changed?
__________________________________________________
__________________________________________________
(C) SAP AG LO925 6-28

Exercises
Topic: Transfer posting to material provided to vendor

 Perform transfer posting to material provided to vendor without a
purchase order using MM processes
 Explain the difference between transfer posting to material provided to
vendor and outbound delivery of components to the subcontractor
You would like to replenish your subcontractor’s stocks without a

concrete purchase order, so you carry out this step using only a transfer
posting (without LE). Check the result of this action by using the stock
overview and the current stock/requirements list.
4-1 You know that in the near future there will be many orders for your subcontractor
T-L10A## to produce material T-F1##. Therefore, you want to send the vendor a
certain amount of the components in the bill of material for this material beforehand
so that he can start processing immediately when the orders are received.
Make a transfer posting of another 100 pieces of component materials from plant
1000, storage location 0001 to your subcontractor T-L10A##. Use a transfer
posting in the inventory management system to carry out this step. Create the
transfer posting with reference to the bill of material and include BOM material T-
F1## .
What menu path should you use?
___________________________________________________________________
_
___________________________________________________________________
_
Movement type: ______________________
Material document: ______________________
(C) SAP AG LO925 6-29

4-2 Display the material document. Which items does it contain?
Component Movement type Special stock + / - sign

indicator
(C) SAP AG LO925 6-30

Exercises
Topic: Goods receipt for subcontract order

 Record goods receipt for the end product
 Describe how components and end products should be handled in
terms of inventory and value
Your vendor (the subcontractor) delivers the finished product and you
record goods receipt in the subcontract order.
5-1 Vendor T-L10A## delivers material T-F1##. Record goods receipt for your
purchase order in plant 1000, storage location 0001.
Which movement type does the system use?
Movement type: ______________________
Material document: ______________________
5-2 Display the material document.

5-2-1 Which items does it contain?
Material Movement type Special stock + / - sign

indicator
(C) SAP AG LO925 6-31

5-2-2 Which G/L accounts have been updated?
Account Account description Debits /

Credits
5-3 Your subcontractor tells you that he needs one more piece of component T-B4## in
order to produce all the pumps. Record the subsequent adjustment.
Enter your purchase order and press ENTER. Then choose Copy in
order to display the material components.
Material document: ______________________________
(C) SAP AG LO925 6-32

Exercises
Topic: Invoice receipt for subcontract order

 Demonstrate manual invoice entry in the invoice verification
 Describe the items in the accounting document
Your vendor (the subcontractor) sends you the invoice for services
rendered (producing the material you requested using the components
you provided). Record the vendor’s invoice.
6-1 Vendor T-L10A## sends you the invoice for the subcontracting costs for your
purchase order. He calculates 10000 UNI plus 10% tax (tax code 1I) for 100 pieces.
This corresponds to a total amount of 11000 UNI. Record the vendor’s invoice.
Company code: 1000

Reference: 471113##
Invoice document number: ______________________
6-2 Display the invoice document and the accounting document. Which accounts were
changed?
Account Account description Value
6-3 Display the purchase order history for your subcontract order.
(C) SAP AG LO925 6-33

Subcontracting Solutions
Topic: Subcontract order
1-1 Logistics  Production  Master data  Bills of Material  Bill of Material 

Material BOM  Display
1-1-1 Material: T-F1##

Plant: 1000
BOM usage: 1
Component Quantity
T-B1## 1
T-B2## 1
T-B3## 1
T-B4## 1
1-1-2 Logistics  Materials Management  Inventory Management 

Environment Stock  Stock Overview
Plant 1000 Unrestricted use Stock of material provided

to vendor
Material
T-B1## 820 0
T-B2## 810 0
T-B3## 800 20
T-B4## 820 0

Environment  Stock  Stock/Requirements List
The subcontractor’s stocks are displayed in a separate planning segment,

and are not included in the available quantity for the plant.
1-1-4 Logistics  Materials Management  Purchasing Master Data  Info
Record  Display
(C) SAP AG LO925 6-34

Vendor: T-L10A##
Material: T-F1##
Plant: 1000
Info category: Subcontracting
Choose Purchasing Org. Data 1.
Net price: 100 UNI

Planned delivery time: 10 days
1-2 Logistics  Materials Management  Purchasing  Purchase Requisition 

Create
Material: T-F1##
Quantity requested: 100 PC
Plant: Hamburg
1-2-1 Item category L for subcontracting

1-2-2 In the lower screen section (Item detail), choose the Material data tab page
and then Components.
The system calculates the requirement date for the components by using
delivery date minus planned delivery time of the finished product from the
material master.
Choose Save.
Environment  Stock  Stock/Requirements List
The available quantity is reduced by the subcontracting requirement for the

requirement date for the components.
1-3 IMG: Materials Management  Purchasing  Purchase Order  Define

Document Types
Select the line “NB – Standard PO”.
Double-click on Allowed item categories.
The item category L is allowed for the standard purchase order.

Choose the Document overview on button.

In the selection variant, choose My purchase requisitions.
In the left side of the screen (document overview), select the purchase requisition
you have created. Then copy it to the current purchase order in the right side of the
(C) SAP AG LO925 6-35

screen, using the Adopt button. Alternatively, you can drag the purchase requisition
onto the shopping basket symbol, using the left mouse button.
Vendor: T-L10A##
Choose Enter.
1-4-1 The system proposes the price of 100 UNI and copies it from the
subcontractor info record.
Environment  Info record
1-4-2 In the lower screen section (Item detail), choose the Material data tab page
and then Explode BOM.
This takes you to the component overview.
To create the purchase order with item category L, the system explodes the
BOM for material T-F1## in the background and proposes the items from
the bill of material as components in the purchase order.
The materials are the following: T-B1##, T-B2##, T-B3## and T-B4##.
1-4-3 In the components overview screen, select Component list  Component
Availability.
Material Requirement Confirmed quantity

quantity
T-B1## 100 100
T-B2## 100 100
T-B3## 100 100
T-B4## 100 100

 Stock  Stock/Requirements List
A separate section is opened for the subcontractor in the current stock/requirements

list. The system checks if the subcontractor has already received unrestricted-use
quantities from the components. The shortfall quantity will then be planned as
remaining requirements for subcontracting in the anonymous section. The currently
unrestricted-use quantity has not changed.
(C) SAP AG LO925 6-36

Solutions
Topic: Monitoring material provided to vendor and
transfer posting of the components

Reporting  SC Stocks per Vendor
Material Requirement To be delivered

quantity
T-B1## 100 100
T-B2## 100 100
T-B3## 100 80
T-B4## 100 100
2-2
2-2-1 Logistics  Materials Management  Material Master  Material 
Display  Display Current
Choose the Sales: Sales Org. Data 1 und Sales: Sales Org. Data 2 views.

The material master records are created in the sales organization 1000 and
distribution channel 12.
2-2-2 Logistics  Materials Management  Material Master  Material 
Display  Display Current
Choose the Sales: General/Plant Data view.
Plant 1000
(C) SAP AG LO925 6-37

Material Transportation Loading group
group
T-B1## 0001 0003
T-B2## 0001 0003
T-B3## 0001 0001
T-B4## 0001 0003
2-2-3 Logistics  Materials Management  Purchasing  Master Data 

Vendor  Purchasing  Display (Current)
Vendor: T-L10A##
Select the Control view.
Customer: T-L10A##
In order to be easily identified, the same customer number is assigned to the
subcontractor-vendor in the current system.

Reporting  SC Stocks per Vendor
Vendor: T-L10A##, Choose Execute
Choose Select all.
Choose Create delivery.
Confirm the Create delivery dialog box four times with Enter (without further
entries).
2-3-1 The system generates 1 outbound delivery.
2-3-2 The vendor receives 100 pieces of the T-B1##, T-B2## and T-B4##
components each and 80 pieces of the T-B3## component.
2-4 Logistics  Logistics Execution  Outbound Process  Goods Issue for

Outbound Delivery  Outbound Delivery  Display
or
Logistics  Sales and Distribution  Shipping and Transportation  Outbound
(C) SAP AG LO925 6-38

Solutions
Topic: Executing shipping activities and posting goods
issue

Outbound Delivery  Picking  Create Transfer Order  Via Outb. Delivery
Monitor
or
Logistics  Sales and Distribution  Shipping and Transportation  Picking
Shipping point/receiving pt: 1000

Choose Execute.

Outbound Delivery  Post Goods Issue  Collective Processing Via Outb.
Delivery Monitor
or
Logistics  Sales and Distribution  Shipping and Transportation  Post
Shipping point/receiving pt: 1000

Choose Execute.
Select the delivery you created above in the deliveries list for goods issue and then
select Post goods issue.

Outbound Delivery  Outbound Delivery  Display
or
Logistics  Sales and Distribution  Shipping and Transportation  Outbound
(C) SAP AG LO925 6-39

Environment  Document flow
3-3-1 Position the cursor on the material document in the document flow and
select Display document.
Movement type: 541, transfer posting to SC provision stock from

unrestricted use
3-3-2 Clearing from storage location
Transfer posting in special stock O = Subcontracting
3-3-3 Each material is listed twice since the material will be moved from the
unrestricted-use stock to the stock of material provided to vendor. For this
stock type, there is a O in the Special stock indicator field.
3-3-4 Choose Accounting documents...
No, there is no accounting document for this process.
Logistics  Materials Management  Inventory Management 

Environment Stock  Stock Overview
Plant 1000 Unrestricted use Stock of material provided to

Material vendor
T-B1## 720 100
T-B2## 710 100
T-B3## 720 100
T-B4## 720 100
3-3-5 The unrestricted-use stock has been reduced by the quantity you have just
delivered to the subcontractor.
3-4 Logistics  Materials Management  Purchasing  Purchase order 

Reporting  SC Stock for Vendor
Vendor: T-L10A##, Choose Execute
The vendor has numerous components in the required quantity.
(C) SAP AG LO925 6-40

Solutions
Topic: Transfer posting to material provided to vendor

Movement  Transfer Posting  Movement Type  Transfer posting  Stck w.
subcontract.  From unrestricted
In the overview screen, select Transfer posting  Create with reference  To

BOM
Vendor: T-L10A##
Material: T-F1##
Quantity: 100
Movement type: 541
4-2 Logistics  Materials Management  Inventory Management  Material

Document  Display
Component Movement type Special stock + / - sign

indicator
T-B1## 541 Blank -
T-B1## 541 O +
T-B2## 541 Blank -
T-B2## 541 O +
T-B3## 541 Blank -
T-B3## 541 O +
T-B4## 541 Blank -
T-B4## 541 O +
(C) SAP AG LO925 6-41

Solutions
Topic: Goods receipt for subcontract order

Movement  Goods Receipt  For Purchase Order  PO Number Known
Choose Purchase order in the upper screen area, to enter the purchase order.
Purchase order: document number created earlier for the purchase order
Choose Enter or Execute.
Click on Wk tab page in lower screen area (item overview)
Movement type: 101
Select Item OK.

Choose Post.
5-2 Logistics  Materials Management  Inventory Management  Material

Document  Display
5-2-1
Material Movement type Special stock + / - sign

indicator
T-F1## 101 Blank +
T-B1## 543 O -
T-B2## 543 O -
T-B3## 543 O -
T-B4## 543 O -
(C) SAP AG LO925 6-42

5-2-2 Choose Accounting documents...in the material document.
Account Account description Debits / Credits

792000 Finished goods Debit
191100 GR/IR Clearing account Credit
893010 Cost of goods sold Credit
417001 Purchased services Debit
790000 Work in process Credit
893020 Inventory change addition Debit

Movement  Subsequent Adjustment  Subcontracting
Purchase order: document number created earlier for the purchase order
Choose Enter.
Choose Adopt.
Item 4: Quantity 1
Choose Post.
If you wished to settle a lower consumption instead of an excess consumption, you

would create the quantity with a - sign.
(C) SAP AG LO925 6-43

Solutions
Topic: Invoice receipt for subcontract order
6-1 Logistics  Materials Management Invoice VerificationLogistics Invoice

Verification  Document Entry  Enter Invoice
Choose Edit  Switch company code.
Company code: 1000

Reference: 471113##
Amount: 11000 UNI
Tax amount: 1000
Tax code: 1I (corresponds to 10%)
Purchase order/Scheduling agreement: document number created earlier
Choose Enter.
Choose Post.
6-2 Logistics  Materials Management  Logistics Invoice Verification  Further

Processing  Display Invoice Document
Invoice document number: default value

Fiscal year: default value
Select Follow-on documents...
Account Account description Value

T-L10A## Harvey Parts & Co. 11000-
191100 GR/IR Clearing account 10000
154000 Input tax 1000

Display
Choose the Purchase order history tab page in the lower screen area (Item detail).
(C) SAP AG LO925 6-44

(C) SAP AG LO925 6-45
Conclusion

Sales Sales
Company 1
Company code
Cross-Company Sales
Plant 2
delivers delivers
orders delivers
orders delivers
Plant

Company

 SAP AG 1999

Course Objectives
 Execute the cross-application business

processes for third-party order processing,
cross-company sales, stock transfers, and
subcontracting in the SAP R/3 System
 Outline the most important setting options in
Customizing
 SAP AG 1999

Recommended Tasks / Literature to Deepen
Knowledge of Subject
 Repeat the exercises! For this purpose, use the IDES data
or your own data.
 Read the online documentation!
 Read the IMG documentation!
 Read the release notes!
 SAP AG 1999

Appendix
Contents:
 Menu paths
 Additional slides
 SAP AG 1999

Menu Paths in Customizing for LO925
Access Tools  Accelerated SAP  Customizin
 Edit Project  SAP Reference-IMG
Third-Party Order
Processing
Definition of a third-party item category  Sales and Distribution Sales Sales
Define Item Categories
Maintenance of item category determination  Sales and Distribution  Sales Sales
Assign Item Categories
Definition of a schedule line category for  Sales and Distribution  Sales Sales
third-party order processing Define Schedule Line Categories
Maintenance of the schedule line category  Sales and Distribution  Sales Sales
determination Assign Schedule Line Categories
Maintenance of copying control for sales  Sales and Distribution  Billing  Bil
document to billing document Control for Billing Documents  Copying
Document
Cross-Company Sales
Assignment of a sales area to intercompany  Sales and Distribution  Billing  Int
billing for the delivering plant Organizational Units by Plant
Maintenance of assignment between sales  Enterprise Structure  Assignment 
organization, distribution channel, and Organization - Distribution Channel - Assi
supplying plant
Assignment of a customer to the sales  Sales and Distribution  Billing  Int
organization Customer Number by Sales Organization
Maintenance of billing type for intercompany  Sales and Distribution  Billing  Int
billing in the sales document Types for Intercompany Billing
Maintenance of settings required for  Sales and Distribution  Billing  Int
automatic posting to vendor account to Vendor Account (SAP-EDI)
Intercompany Stock
Transfer
Assignment of a sales area to the delivering  Materials Management  Purchasing 
plant Transport Order  Plant
Assignment of a customer to the receiving  Materials Management  Purchasing 
Assignment of the delivery type to the  Materials Management  Purchasing 
replenishment delivery Transport Order  Assign Delivery Type
Decision on one-step or two-step procedure  Materials Management  Purchasing 
Transport Order  Purchasing Document
Shipping point determination  Logistics Execution  Shipping  Bas
Determination  Assign Shipping Points
Maintenance of item category determination  Logistics Execution  Shipping  Del
in the delivery Determination in Deliveries
Maintenance of the movement type in the  Sales and Distribution  Sales Sales
schedule line category Define Schedule Line Categories
Cross-company
stock transfer
Assignment of a sales area to the delivering  Materials Management  Purchasing 
Assignment of a customer to the receiving  Materials Management  Purchasing 
Assignment of the delivery type to the  Materials Management  Purchasing 
replenishment delivery Transport Order  Assign Delivery Type
Decision on one-step or two-step procedure  Materials Management  Purchasing 
Transport Order  Purchasing Document
Determination  Assign Shipping Points a
Maintenance of settings required for  Materials Management  Invoice Veri
automatic invoice receipt
Maintenance of item category determination  Logistics Execution  Shipping  Del
in the delivery Determination in Deliveries
Maintenance of the movement type in the  Sales and Distribution  Sales Sales
schedule line category Define Schedule Line Categories
Maintenance of the billing type for  Sales and Distribution  Billing  Int
intercompany billing in the default order type Types for Intercompany Billing
Subcontracting
Assignment of a sales area to the plant  Materials Management  Purchasing 
Transport Order  Plant
Determination  Assign Shipping Points a
Allow item category L for purchasing order  Materials Management  Purchasing 
document Types  Allowed Item Categories
Assignment of delivery type for supply of  Materials Management  Purchasing 
material to the plant Order

Accounting Basics
A B
XX XX
 Double-Entry Accounting
 Balance sheet accounts
 P&L accounts
 Example SD
 Example MM
 SAP AG 1999

Double-Entry Accounting
Name of Account
Debit Credit
 Each business transaction is posted to at least two different accounts

 Debit postings always appear on the left-hand side of the T account
 Credit postings always appear on the right-hand side of the T account
 Total of debit postings = Total of credit postings
 SAP AG 1999
 The basic principle of double-entry accounting is that each business transaction is always posted to at
least two different accounts, that is, posted as a double entry. In the simplest case, there are only two
accounts involved.
 The basic idea is Debit to Credit.
 In this way, one account is posted to on the debit side, and the other account is posted to on the credit
side.
 Basic principle:
Irrespective of the number of accounts involved, the total of debit postings is always the same as the
total of credit postings.

Account Types - Balance Sheet Accounts
Asset Accounts
 Inward movements are posted as debits

 Outward movements are posted as credits.
 Examples: Balance, cash, bank, receivables
Capital/Debt Accounts
 Inward movements are posted as credits

 Outward movements are posted as debits
 Example: Liabilities
 SAP AG 1999
 Business transactions are posted to accounts (= invoices on two pages where the value movements
are also registered).
 In double-entry accounting, you can assign the accounts to different groups of basic accounts. These,
in turn, are divided into two categories:
 Balance-sheet accounts (revenue accounts and capital/debt accounts) to which stocks and their
changes are posted.
 P&L accounts (expense/cost and revenue/sales accounts) to which profit activities are posted.
 All accounts are similar in structure and have the following basic equation:
Initial balance + inward movement - outward movement = Final balance
 The basic accounts mentioned above differ from one another with respect to the account side to
which the initial balance, the inward and outward movements, and the final balance are posted.

Account Types - P&L Accounts
Revenue accounts
 Inward movements are posted as credits

 Outward movements are posted as debits
 Example: Sales revenue
Expense accounts
 Inward movements are posted as debits

 Outward movements are posted as credits.
 Example: Material expenditure, price difference
 SAP AG 1999

Example SD
 Sales order: 10 pieces for $12 per piece

 Goods issue: 10 pieces delivered, standard price $10 per PC
 Invoice: 10 pieces for $12 per piece
 Payment receipt: $120
 SAP AG 1999

Example SD: Postings
Material usage Stock

Goods issue: (Expense) (Assets)
100 100
Receivables Sales revenue

Invoice: (Assets) (Revenue)
120 120
Receivables Bank
Payment receipt: (Assets) (Assets)
120 120
 SAP AG 1999
 With an SD business transaction, for example, an accounting document is created at the time of the
goods issue and invoice creation.
 At the time of the goods issue, the goods physically leave the warehouse. In this way, you have a
stock (balance) and value posting. The stock is reduced and the material consumption increased. The
posting is therefore material consumption to stock.
 At the time of billing, receivables are increased at the customer, and stock issues are posted to sales
revenue (posting record: receivables to sales revenue).
 When the payment is received in FI, the receivables are reduced again and the money amount is
posted to a bank account (posting record: bank to receivables).
 In this simple example, we have ignored the posting of the output tax.

Example MM
Vendor
 Purchase order: 10 pieces for $12 per PC

 Goods receipt: 10 pieces delivered, standard price $10 per PC
 Invoice: 10 pieces for $10 per piece
 Payment: $100
 SAP AG 1999
(C) SAP AG LO925 8-10

Example MM: Postings
Stock
Goods receipt: (Assets) GR/IR Clearing account
100 100
Vendors
Invoice: (Liabilities) GR/IR Clearing account
100 100
Vendors Bank
Payment: (Liabilities) (Assets)
100 100
 SAP AG 1999
 In the example of an MM business transaction, an inward stock movement follows at the time of the
goods receipt. As far as the technical side of posting is concerned, clearing entry takes place using a
specific goods receipt/invoice receipt-clearing account (stock to GR/IR clearing account).
 As far as it can be valuated with standard prices, posting of the existing difference amount between
costs for purchase and valuation can, under some circumstances, be necessary for a price difference
account.
 When the invoice is created, the GR/IR clearing account is credited and liabilities are created for the
corresponding vendor (GR/IR clearing account to vendors).
 The liabilities are compared using the payment run, and an issue should be recorded on the bank
account (liabilities to bank).
 In this simple example, we have ignored the posting of the accrued tax.
(C) SAP AG LO925 8-11

LO925 Cross-Application Business Processes in SD and MM PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LO925 Cross-Application Business Processes in SD and MM PDF

Uploaded by

Copyright:

Available Formats

LO925 Cross-Application Business Processes

Release 630 21.11.2003

Copyright 2002 SAP AG. All rights reserved.

Level 2 LO605 5 days Level 3 @LO605a 1,5 h

 LO150 Sales Processes

 Knowledge of these separate applications

Notes to the user

(C) SAP AG LO925 1-1

This course will enable you to:

(C) SAP AG LO925 1-2

At the conclusion of this course, you will be able to:

 Execute the cross-application business

(C) SAP AG LO925 1-3

Unit 1 Course Overview Unit 4 Intra-Company Stock

(C) SAP AG LO925 1-4

orders orders orders Company 2

Third-Party Order Processing Cross-Company Sales

Plant 1 Plant 1 Company 1 Company

Intra-company Cross-company Subcontracting

(C) SAP AG LO925 1-5

 The company includes external partners or

(C) SAP AG LO925 1-6

(C) SAP AG LO925 1-7

(C) SAP AG LO925 1-8

orders delivers orders delivers

(C) SAP AG LO925 1-9

(C) SAP AG LO925 1-10

(C) SAP AG LO925 2-1

At the conclusion of this unit, you will be able to:

 Provide third-party order processing for certain materials

(C) SAP AG LO925 2-2

orders orders orders Company 2

Third-Party Order Processing Cross-Company Sales

Plant 1 Plant 1 Company 1 Company

Intra-company Cross-company Subcontracting

(C) SAP AG LO925 2-3

 In certain sales activities, the company arranges

(C) SAP AG LO925 2-4

bills orders reports

(C) SAP AG LO925 2-5

bills orders reports

(C) SAP AG LO925 2-6

(C) SAP AG LO925 2-7

Header OR Sales doc. type

Item 10 TAS Item category

Item 20 ... Item category

(C) SAP AG LO925 2-8

(C) SAP AG LO925 2-9

Sched.line cat. CS "Third-party"

PO type NB “Purchase requisition“

(C) SAP AG LO925 2-10

(C) SAP AG LO925 2-11

bills orders reports

(C) SAP AG LO925 2-12

bills orders reports

(C) SAP AG LO925 2-13

(C) SAP AG LO925 2-14

(C) SAP AG LO925 2-15

Item category TAS "Third-party item"

Billing relevance F "Relevant for order-

Order Purchase order Goods

(C) SAP AG LO925 2-16

If you are implementing user-defined objects in