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 Billing Between Company Codes


In the service branch it is common that employees belonging to one company code sometimes work for other company codes. Often one company code (the requesting company code such as a particular international subsidiary) of an enterprise carries out a project in conjunction with external customers, and uses employees from other company codes (the supplying company codes). In order to distribute the project revenues accrued in your company code according to expenditure fairly, you are billed for the expenditures of employees belonging to other company codes. These expenditures are collected for all employees working on a project and you can bill them internally for cost unit rates or any sales prices. All project participants confirm their expenditures for the same project.


You carried out the steps for configuration.For more information, see Configuration .

Process Flow

The process for billing between company codes (resource-related internal billing) is described below. This type of billing is based on the dynamic item processor(DIP), which is also used for resource-related billing of customers. For more information, see resource-related billing .

The following example uses a supplying company code only and a project as an account assignment object.

Note Note

In the supplying company code you can use all objects with order characteristics as account assignment objects, such as sales orders, WBS elements, network headers, network activities, and service orders .

You can also use cost centers as account assignment objects if you have implemented BAdI: Resource-Related Billing Between Company Codes in Customizing for Sales and Distribution under Start of the navigation path Billing Next navigation step Intercompany Billing Next navigation step Resource-Related Intercompany Billing. End of the navigation path

End of the note.

The steps described below correspond to the process depicted in the graphic.

  1. The supplying company code creates an internal sales order once, or once a year for example, in which the internal customer represents the requesting company code.

  2. The requesting company code creates a project with its (external) customer. Contract agreements in the form of a real sales order lie with the requesting company code.

  3. An employee from the supplying company code provides services for the project and reports his or her time directly. Actual costs (such as travel costs or expenditures) are posted on a corresponding account assignment in the supplying company code.They are later reposted to the project through CO-reposting in transactions KB11N or KB15N. For more information, see SAP Note 1463819.

  4. In the supplying company code, the functions for billing between company codes identify those time and travel expense confirmations that exceed the company code boundaries between the supplying and requesting company code. The system processes line items such as in resource-related billing summarized dynamically, structured, and evaluated. The system generates an internal billing request.

    For more information about this function, see Single Processing .

  5. The internal billing and invoicing steps are as follows:

    1. In the supplying company code the internal billing document is created based on the internal billing request. It might then be sent to the requesting company code using the SAP Electronic Data Interchange(SAP-EDI) .

    2. In this way, internal revenues are posted on the side of the supplying company code. These internal revenues balance the employee’s time and travel expenses in this company code. As a rule, revenue surplus is attained, which balances out the fact that the supplying company code did not use its employees for one single customer project.

    3. In the requesting company code, the system posts the incoming invoice in Financial Accounting.

    4. Internal expenditures are posted on the side of the requesting company code. Account assignment in Controlling is superfluous, as a rule, since the actual costs were already account assigned.

  6. The requesting company code creates a customer billing document and thereby creates revenues for services as well, which were provided by the employee from the supplying company code. The requesting company code must not wait for the incoming invoice, but rather it can create its billing document immediately after time or travel expenses have been entered by the employee. The requesting company code hereby creates external revenues. A portion of these revenues must be used to compensate the internal expenditures.

    Caution Caution

    Within your organization, ensure billing between company codes occurs as soon as the period ends, and before other period-end processes are carried out. If there is a large amount of data to be processed, billing between company codes should occur several times during this period.

    End of the caution.
Alternative Process

If you do not want to use the process described above, you can use the business process described below. Here, the employees of the supplying company code confirm their time or travel expenses for a sales order, and the employees of the requesting company code confirm theirs for a project, even though both work for the same project. You must create a purchase order (and a sales order) for each project belonging to the supplying company code.

  1. The requesting company code creates a purchase order for the supplying company code.

  2. The supplying company code creates a sales order for the purchase order.

  3. The employee belonging to the supplying company code who works on the project, confirms his or her time and travel expenses for the sales order.

  4. The supplying company code bills the sales order to the requesting company code, whereby incurred costs are account assigned at invoice receipt to the project of the requesting company code.

  5. The project costs are billed to the customer belonging to the requesting company code.


You billed for services provided for other company codes. The revenues you attained from external customers are divided among all participating company codes.