Process from the Accounting
Perspective 
Use
The logistical process Cross-System Delivery (Intra-Company Code, Cross-Company-Code) can be displayed in Profitability Analysis and Profit Center Accounting. Parallel valuation approaches can be applied. When using these, the system not only displays the flows of values from the financial reporting view for legal requirements, but it also displays the internal flows of values from the group view and/or those between profit centers. If you are using transfer prices, the internal goods movements in the company and profit center views are valuated with different prices.
Prerequisites
· The Customizing settings made for accounting have to be identical in all affected ERP Systems.
· Account assignment objects such as cost centers and profit centers have to be distributed via ALE.
· The same company codes in the different systems need to be assigned to the same operating concerns.
Process Flow
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1. Creating a sales order
When you create a sales order, you can enter at the item level a profit center that differs from the material profit center. You can make this entry manually or you can define substitution rules in Customizing for Profit Center Accounting. If the sales organization and the supplying plant are in different company codes (cross-company processing), then when you create a sales order the system determines both the supplying profit center and the selling profit center. To do this, you must maintain a substitution in profit center accounting in Customizing.
2. Creating a delivery
The profit center specified at the item level is forwarded to the delivery via IDoc. If the sales order item does not contain a profit center, the system takes the profit center from the supplying plant when creating the delivery from the material master and then copies this profit center to the delivery item.
3. Posting goods issue
When posting goods issue, the system automatically checks whether the material profit center differs from the profit center for the delivery. If it establishes a discrepancy between profit centers, the system can display the process from the profit center view as an internal sale. This is dependent on the PCA Customizing settings. If you are using transfer prices, you definitely require the PCA additional lines. Profit center price determination is used to calculate the transfer price, which reflects the goods issue value from the profit center view. Internal revenues for the amount of the determined price are credited to the profit center for the material and the corresponding costs are debited to the profit center for the delivery. The goods issue value in all active valuation views is taken from the system to be invoiced at the time when the external billing document is posted. In this way, the cost of sales are displayed correctly in costing-based Profitability Analysis.
4. Billing
When the external billing document is posted, revenues for the amount of the legal price are credited to the selling profit center. If you are using transfer prices, the profit center revenues are determined from the special condition with type ‘C’ (for example, the condition PC00 delivered with the standard system).
If the sales organization and the supplying plant are in different company codes, the system derives the selling profit center at the event “Create Sales Order”. This means that the external billing document does not necessarily have to be created before the internal billing document. The system automatically copies the selling profit center into the external billing document, and copies the center as a partner profit center into the internal billing document. For the internal billing document, the revenues (for the amount of the price determined using a special condition of type "C" (such as PC00) are credited to the profit center for the delivery.
5. Invoice Receipt
The invoice receipt is posted in the selling company code using EDI. The profit center account assignments and the prices in the legal view are transmitted. If you are using transfer prices, the system also transmits the values for the parallel valuation levels automatically.
6. Posting in Financial Accounting
Special Features in Profitability Analysis
Cost of Sales in External Billing Documents
When you display the cost of sales in costing-based Profitability Analysis of the ordering system at the point when external billing documents are created, you need to distinguish between the following cases:
· Internal company code,
This is when the supplying plant and the sales organization belong to the same company code.
¡ Billing documents are created after goods issue
In such cases, the cost of sales corresponds to the goods issue value for the material. From the legal perspective, the standard SAP System updates this value (VPRS) in the document flow for the delivery. Since the delivery also updates the document flow in the ordering system, it is not necessary to make any adjustments in cases involving both systems. If transfer prices are active in the system (that is, at least one other valuation view is used alongside the legal view), the system determines the goods issue values accordingly in both views as well. When the billing documents are created, the calculated values are taken from the supplying system along with the supplier data and are copied to the corresponding conditions of the customer billing document (VPRS, PCVP, KW00).
¡ Billing documents are created prior to goods issue
In such cases, the cost of sales can only serve as an approximation of the goods issue value. To determine this approximate value, you can use the das Business Add-In [External] VOR_WA_FAKTURA delivered in the system.
The current material price serves as the best approximation of the goods issue value. For the legal view, this price is read from the material master. For any valuation views, it is read from Material Ledger.
· Cross-company code
This is when the supplying plant and the sales organization belong to different company codes.
¡ The internal billing document is created prior to the customer billing document
When the customer billing document is created, the SD system reads the delivery from the supplying system (as in the case of a single company code described above). In this step, the internal billing document is read at the same time as the prices in the different valuation views are determined. From the group view, the corresponding price condition of the internal billing document always has condition type "b", whereas it has condition type "c" from the profit center view. As in the case of a single company code, these values are then copied to the corresponding conditions of the customer billing document. Shipping costs, however, cannot be taken into consideration.
¡ The internal billing document is created after the customer billing document
The revenues from the internal billing document are required as the costs of sales in the external billing document. Since no internal billing document is yet available when the delivery is read, the system simulates it by generating a billing document that is not posted. This allows the amounts of the corresponding price conditions to be determined.