In cross-company sales processing there are two invoices: one invoice for the customer and one internal invoice for the ordering company code. In both the customer invoice and the internal invoice an internal price is set that has been agreed by both the supplying and ordering company codes. This price in the invoice for the end customer represents the goods purchase value used for the profitability analysis in the ordering company code. The internal price is invoiced to the ordering company code and appears in the profitability analysis for the supplying company code as a revenue.

To cope with this double function, Pricing uses two pricing procedures. Pricing in the sales order and in the invoice for the customer uses the standard pricing procedure. Pricing uses a second pricing procedure for the internal invoice. This procedure is a copy of the standard procedure, with the exception that it uses the new condition type ZIV1, rather than condition type PI01, to determine the internal price. The condition type ZIV1 uses the condition type PI01 as a reference. This means that there are no condition records for condition type ZIV1. Pricing for the internal invoice uses the corresponding condition from condition type PI01. When sending invoice data to the profitability analysis, this procedure allows you to copy the value from condition PI01 into the Costs value field for a customer invoice and to copy the value of the condition type ZIV1 into the Revenue value field for an internal invoice.

The rules for business area account assignment in goods issue posting and billing are set for each sales area in Customizing for SD.

There are two sales areas in cross-company sales processing: a selling sales area (sales organization 2200 – distribution channel 10 – division 00) and a supplying sales area (sales organization 1000 – distribution channel 12 – division 00).

The business area for the supplying sales area is determined according to the plant and the item division (material R-1001 belongs to division 07 = High Tech). This rule is used to determine business area 7000 (electronic products) in the sales order item. This entry is copied into the delivery and the goods issue document. This rule is also used to determine the business area in the internal invoice to the ordering company code. Posting to the business area 7000 then takes place.

The business area for the ordering sales area is determined according to sales organization, distribution channel and item division. Business area determination in the invoice to the end customer uses this rule. The business area 7200 (Electronic products France) is determined in the final customer invoice and the resulting accounting document.

Cross-company sales processing gives you the option of automatically creating an inbound invoice in the ordering company code. This is done using EDI, a technique which enables a cross-company electronic exchange of messages between business partners that may have different hardware, software and/or communication devices. In the example given, two partners exchange messages within one system. The message belongs to the EDI message type INVOIC (for an invoice) The message is exchanged between a sender (vendor = supplying company code) and a recipient (customer = ordering company code). There are two variants of the message type. If you use the variant F1, invoice receipt is posted to the recipients indirectly in Financíal Accounting. This process uses this variant. If you use the variant MM, the invoice receipt is posted in Materials Management using the invoice check. The variant MM is used for stock transfer between different company codes.