Intercompany sales in sap sd

If you need to create a sales order you must determine the sales organization of the ordering company code. The system used here has the ability of proposing the delivering plant from the below master records. They are the customer material information, customer and at last the material. The priority order can be given based on the given sequence above.

In the day today businesses which are normally operating, we can make a decision to source the selling products from group companies in order cover our extra or excess demand. Or else we can use these extra or excess quantities in an optimizing manner which is of group plants. In the method of sourcing the selling goods through a plant in another organization inside the group, we have the ability to use intercompany billing and the generation of the documents which are required to both the Supplier Company and Seller Company.

We have the ability of assigning the plant of another company code to the designated sales area which is of our company code and after that we also can use this standard SAP inter-company pricing for the same. Now in here, we can determine special prices if there are any which are applicable through condition types IV01 & IV02.

Now let’s see what is SAP SD really means. Sales can be defined as a transaction between a buyer and seller where the buyer receives the good and a seller sells it. Distribution is where the good which is ordered by the customer is moving to the customer via a distribution channel and in the opposite direction the payment from the customer gets done.

This executes business processes like shipping, billing, and also selling of the products and services to customers. So, let’s see some components of this module. They are sales support, master data, shipping, credit management, foreign trade, billing, transportation and sales information systems.

The SD or sales and distribution is a component of SAP which belongs to the area of logistics. It is included with processes which supports businesses or companies to deal with their customers. Some of the processes are receiving orders through the telephone, internet or EDI, giving quotations to the users, shipping and also billing goods to the consumers when they receive products.

Also there are main functions in sales and distribution. Some of them are inquiries and quotes, sales orders, sales returns, assignments etc.

Inside SAP, you will be able to find that there is a structure within the organization. And this structure is in the module of sales and distribution. In the upper level the sales organization is located. And this should be responsible for all the distribution and sales of the consumer goods and services. This organization is an entity legally and has one company code. But company codes can consist of sales organizations more than one. Taking this into account from the area of logistics, the sales organization has the ability to sell one product to one or more plants. And in the same way, the plant can also contain organizations more than one who sell their products.