Advanced Intercompany sales in SAP S/4HANA 2022 release

Advanced Intercompany sales in SAP S/4HANA 2022 release

Most of the large organizations run SAP and more than 75% of world’s transaction happen in SAP. Many of these organizations running SAP have their plants or operations across several countries. It is very common that the company unit in Germany (DE) takes the order for a product from a German customer, but they do not produce in Germany and hence brings the product from their US plant and delivers the product to the customer.

SAP supports these scenarios for several years with two process flows

1.??????Inter-company sales

2.??????Inter-company stock transfer order

A high-level process flow for the Intercompany sales scenario is depicted in below image. German unit creates the sales order with German sales organization but with US plant. US plant delivers the product directly to the German customer.?

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I developed this flow for couple of customers, but it has some limitations for real-life scenarios and hence was not very popular or successful in its implementations. Some of the limitations are

·??????There is no purchase order from German organization unit to US unit

·??????There is no sales order in US unit for supply of product to German unit or customer

·??????There is no valuated stock in selling German unit

·??????US unit becomes the cost object (as the sales order is assigned to US plant) through selling is being done by German unit

?Etc etc.

Now, SAP has redesigned this classic Cross company sales order (running in SAP ECC or S/4HANA till 2021 On-premise release) to eliminate those limitations. SAP has released their initial version of Advanced Inter-company sales in S/4HANA 2022 release. It is completely a new design and will be a game changer for real-life cross company flows in future.

?The process flow diagram for Intercompany sales as prototyped in S/4HANA 2022 release is depicted in below image. New flow creates the intercompany purchase order and intercompany sales order automatically as highlighted below.?

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The absence of Intercompany purchase order and Intercompany sales order with classic intercompany flows were not liked by the Auditors. My present blog is to highlight that these limitations have now been eliminated.

There are requests from several customers to demo this new advanced Intercompany sales in 2022 release. This is my first blog on new Advanced Intercompany sales and will write more blogs on it as I also dive deep on the new flow. Will appreciate your feedback / comments.??

Andrea Ciminale

Manager presso Techedge Group

1 å¹´

Hi, I would like ask a confirmation that the Advanced Intercompany sales is available in on premise 2022 realised Tkanks Andrea

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thanks for sharing Mrinal. I got a related question. I am searching how we can do in S4HANA a scenario with intercompany but at the same time with third party. customer order with sales org A-company codeA, while the 3rd party supplier is linked to another company code B and plant B from company code B is determined. this triggers the PO towards the 3rd party supplier. I found an old note 63459 but that is from way back 2008

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Mrinal K Roy

SAP S/4HANA & Supply Chain Solutions Architect and author of SAP Press books on S/4HANA

1 å¹´

My SAP Press book (E-bite) titled “Introducing Advanced Intercompany Sales and Stock Transfer with SAP S/4HANA” linked below will be published on the 20th of Sept’2023: https://www.sap-press.com/introducing-advanced-intercompany-sales-and-stock-transfer-with-sap-s4hana_5743/

mohsen adibi

Business process engineer at Mobarake Steel Company

1 å¹´

Hi Mrinal, Thanks for your good explanation.

Hi Mirnal , Many Thanks for sharing this new SAP features . Awaiting for inter-company stock transfer with billing document blog from your end to compare with inter company sales.

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