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Working with Intercompany Stock Transfer 

You can transfer stock from one plant to another where the plants belong to different companies (i.e. have different company codes).

Since the plants belong to different company codes, the following points have to be considered from the sales point of view:

  • delivery: the procedure for delivering on the basis of a purchase order from another plant should be similar to delivering on the basis of a sales order from a customer
  • billing: the delivering plant will be charging the receiving plant for the material.

To deal with these points, the stock transfer can be carried out with a normal purchase order type NB.

The delivering plant can then create a delivery and an intercompany billing document on the basis of this purchase order.

An incoming invoice with reference to the purchase order can be posted in the following ways:

  • Manually, after the invoice has been checked
  • Automatically, with an internal billing document via SAP EDI

The following example outlines the procedure for intercompany stock transfer.

Company Structure

Company code

Plant

City

Name

0001

A

Atlanta

 

0002

B

Boston

Smith & Co.

 

Business Transaction

Plant A orders 100 tons of "Steel-1" from plant B at a price of USD 10.00 per ton.

  1. Plant A, company code 0001:
  2. The clerk responsible creates a normal purchase order (type NB) for the vendor Smith & Co. who is assigned to Plant B. The clerk can enter prices and delivery costs as usual.

  3. Plant B, company code 0002:
  4. On receipt of the purchase order, the vendor Smith & Co. enters a delivery for 100 tons of "Steel-1".

  5. When the material leaves the premises, the vendor Smith & Co. posts goods issue.
  6. The values and the quantity are not yet posted in the receiving plant (Plant A).

  7. Plant A, company code 0001:
  8. When the material arrives at Plant A, the clerk responsible posts goods receipt against the purchase order. The system now posts values and quantities in the receiving plant.

  9. Plant B, company code 0002:
  10. On the basis of the delivery, the system creates a billing document (intercompany billing) amounting to USD 1000.

  11. Plant A, company code 0001:

In company code 0001, the incoming invoice can be posted in the following ways:

    • The receiving plant checks the invoice with reference to the purchase order and posts invoice receipt.
    • Invoice entry is posted with an internal billing document via SAP EDI

 

See also:

Working with Intercompany Deliveries

Working with Intercompany Billing