SAP Advanced Intercompany Sales in S/4HANA: An Introduction

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SAP Advanced Intercompany Sales in S/4HANA: An Introduction

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by John Jordan
john 2024

 

Introduction

SAP Advanced Intercompany Sales (AIS) in SAP S/4HANA enables affiliated companies within a corporate group to participate in an integrated intercompany sales process.
A typical scenario occurs when one company sells goods to an external customer while another company within the group delivers the goods directly to that customer.
Examples include:

  • A sales company sells to an external customer while a producing company delivers the goods directly to the customer.
  • A local sales organization sells to an external customer while a central warehouse fulfills the order.
    SAP Advanced Intercompany Sales automates many of the sales, purchasing, delivery, billing, and accounting transactions between the participating companies.

 

Quick Takeaway

SAP Advanced Intercompany Sales connects the external customer sale with the internal transactions between the selling and delivering companies. SAP S/4HANA automatically creates key intercompany documents and supports the transfer of goods through valuated stock in transit.

Figure 1 illustrates the SAP Advanced Intercompany Sales process. The external customer process is shown in orange on the left, while the intercompany process between the selling and delivering companies is shown in blue on the right.

 Figure 1: SAP Advanced Intercompany Sales

SAP Advanced Intercompany Sales Process

1. To initiate the process, an external customer creates a purchase order, shown in orange on the left in Figure 1.
2. The sales organization assigned to the selling company creates a standard sales order (2) using sales document type OR. The order requests goods from the delivering company.
3. When the sales order (2) is saved, the selling company automatically creates an intercompany purchase order (3).
4. The system automatically creates an intercompany sales order in the delivering company for each intercompany purchase order. The intercompany sales order uses document type CBIC and the producing company's sales area.
5. The delivering company creates an outbound delivery based on the standard sales order (2) and delivers the goods directly to the external customer.
6. When the delivering company posts the goods issue at the physical plant, the system automatically transfers the goods to valuated stock in transit (6). The billing clerk can then create the intercompany customer invoice (A).
7. The internal transfer-of-control dates in the outbound delivery (5) determine when the corresponding stock-in-transit postings occur: goods issue (7a) at the physical plant and goods receipt (7b) at the transit plant.
8. The system automatically creates the intercompany supplier invoice (B) after the intercompany customer invoice (A) has been created in the delivering company and the goods receipt (7b) has been posted in the selling company.
9. The customer invoice (C) is created for the external customer after the delivering company posts the goods issue.
 

Is Universal Parallel Accounting Required?

Universal Parallel Accounting (UPA) is not required for SAP Advanced Intercompany Sales. The advanced intercompany sales process supports automated intercompany purchasing and sales documents, as well as stock-in-transit valuation, without UPA.

 
 

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About John Jordan

John Jordan is the founder, CEO, and lead consultant at ERPCorp, specializing in SAP Product Costing, Finance & Controlling, and S/4HANA. With more than 20 years of SAP consulting experience, John helps organizations improve cost transparency, optimize financial processes, and increase profitability.

John is the author of five SAP PRESS books and the founder of the annual SAP Controlling Conference in San Diego.