SAP S/4HANA, SAP HANA Tutorials and Materials

Inter-company process in S/4 HANA

I would like to share the steps that were followed to set up inter-company process during a recent S/4 HANA Implementation. Manual configuration was carried out. Though the set-up is a bit similar to previous releases, some things have changed in S/4 like Business Partner for internal customer/supplier, new output management and so on.

These are the relevant areas in IMG Logistics:

(a) Set up Stock Transfer Order

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(b) Set up Inter-company Billing

SAP S/4HANA, SAP HANA Tutorials and Materials

(c) Most of this should be straight forward, except maybe for the assignment of internal customer number:

SAP S/4HANA, SAP HANA Tutorials and Materials

What is new here in S/4 HANA is that customers and vendors have been replaced by business partner.

(d) You must use transaction BP to create business partners:

  • Role FLCU00 is for company code data (FI customer)
  • Role FLCU01 is for sales area data (SD customer)
  • Role FLVN00 is for company code data (FI supplier)
  • Role FLVN01 is for vendor area data (MM supplier)

(e) Other master data must also be created (pricing records, etc.). SAP recommends the usage of

pricing lists instead of condition records because this runs faster.

(f) Set up FI/CO customizing for billing

Below are the customizing steps followed to set-up inter-company billing,

Example:
Company Code US 1710 is delivering company
Company Code DE 1010 is ordering company
Data:
Supplier in 1010 is 10301710
Customer in 1710 is 17101010

Reconciliation account for customer has to be 12300000

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Account assignment group has to be 03 for affiliated comp revenue.

SAP S/4HANA, SAP HANA Tutorials and Materials

Reconciliation account for vendor has to be 21300000 Trade payables affiliated companies

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Inter-Company Billing – Automatic Posting To Vendor Account (SAP-EDI)

Automatic posting to vendor account is done by EDI. In our case where both companies are processed in the same system (& client), it is sufficient to create IDOC
This process requires several steps:
1. Creating a Customer to represent the receiving Company.
2. Creating a Vendor to represent the supplying company.
3. Creating a Port
4. Maintain an Output Type

5. Creating a Logical Address
6. Creating a Partner Profile for both Customer and Vendor
7. The relevant FI customizing is maintained.

1. Creating a Customer to represent the receiving Company. -> Done Example HCF7: 17101010

The customer master data has already been created for the purpose of Intercompany
processing and entered in the appropriate transaction in customizing (Sales and
Distribution -> Billing -> Inter-company Billing -> Define Internal Customer Number By
Sales Organization).

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Note: The sales area data for the IC customer has been created in the supplying company code / sales area.
2. Creating a Vendor to represent the supplying company. -> Done Example HCF7: 10301710

The Vendor is created with the standard transaction.
Note: The Vendor is created in the receiving Company Code. The organizational data in
this case is the same as above.

NOTE: There is NO need to “connect” vendor to customer in the control screen.

3. Creating a Port -> logical system HCF7CLNT715

Tools a Business Communication -> IDoc Basis -> Idoc a Port Definition (T. Code WE21)
Maintain Transactional RFC: (Choose Transactional RFC and press the create icon).
A dialog box will open asking whether you want the system to generate an automatic
name or whether you wish to use your own name.

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Port name: Automatically generated
Version: 4.x
RFC destination: logical System of the system client -> HC7CLNT715

4. Maintain output type -> Dummy Type RD00 for IDoc necessary

Output Type RD00 – Invoice is a special function, responsible for the execution of the IDOC.
Output type RD00 is maintained: IMG: Sales and Distribution -> Billing -> Inter-company Billing -> Automatic Posting To Vendor Account (SAP-EDI) -> Maintain output types (T. Code V/40).

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Assign Outbound process codes

Call transaction SM30 and choose the view VEDI_TEDE1. Maintain the following entry:

  • Process code: SD08
  • Description: “Intercompany Billing”
  • Function module: IDOC_OUTPUT_INVOIC_IV_MM

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Set up Output Management in Fiori App

In Fiori Launchpad choose App “Output Management” and add the following rule: If receiving BP = IC Company Code use IDOC

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5. Create Logical Address -> 17100017101010 = log. Adresse / BUK = 1010 and Vendor = 10301710

Tcode SPRO (IMG): Sales and Distribution -> Billing a Intercompany Billing -> Automatic Posting To
Vendor Account (SAP-EDI) -> Assign vendor. (T. Code WEL1)

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Logical address 17100017101010 is made of the supplying Company Code (1710) and the
receiving Customer (17101010).

Note: If the receiving Customer is a numeric number you must add zeros between the
Company code and Customer number so the Logical Address will be 14 digits.
The Logical address is completed when the receiving Company Code and the Vendor are
entered in the detail screen.
It is also necessary to activate the account assignment.

Tcode SPRO (IMG): Sales and Distribution -> Billing è Intercompany Billing -> Automatic Posting To
Vendor Account (SAP-EDI) -> Activate account assignment. -> CI02 Invoice Intercompany / CIC2 Invoice Intercompany Cancellation

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6. Creating a Partner Profile for both Customer and Vendor

Tools a Business Communication -> IDoc Basis -> Idoc -> Partner Profile (T. Code WE20)

Customer: -> 17101010
Put cursor on Partner type KU and press create.
Enter type, Agent and Lang,
SAVE

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Pressing outbound parameters. Section, to maintain detail screens
The following screen will appear.
Enter the following data in the appropriate fields:
Partn.funct.: BP
Message type: INVOIC
Message Code: FI
Receiving port: A000000003
Basic Type: INVOIC01

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Press enter and the screen will change to the following:
Enter PaketSize 1
Go to the Message Control tab press and enter the data as specified in the following
screen.

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Vendor -> 10301710
Follow the same procedures but maintain the inbound parameter Screen as follows:

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