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ICS
DESIGN PROOFSPRO, transactions, integration, proof

ICS · DESIGN PROOF

Intercompany Direct Delivery Configuration Workbench

Configure and prove one Branch customer order that creates group procurement to Affiliated Supply, supports direct customer delivery, records the Affiliated Supply invoice, and releases order-related customer billing.

01

CONFIGURATION WORKBENCH

Freeze the process model before touching settings

The same business phrase—intercompany direct delivery—can refer to different SAP document chains.

Decisions to record

Branch customer contract and invoice ownership

Affiliated Supply legal supplier, supply system, ship-from country, and transfer-price owner

TAS/PR/PO design versus classic or advanced intercompany design

Customer billing trigger: supplier invoice quantity, confirmation, shipment, or another approved milestone

Evidence sources

VA03Existing customer sales document behaviour
ME23NExisting group purchase-order structure
MIRO / MIR4Invoice-verification behaviour and history
VF03Customer billing source and status
Design evidenceProcess diagramCompany-code matrixTax memoInterface contractAccounting entries

Decide in this order

  1. Confirm that Branch is principal seller to the customer and Affiliated Supply is supplier to Branch.
  2. Confirm that goods never enter Branch stock in this scenario.
  3. Approve the legal invoice chain, currencies, incoterms, transfer price, tax, customs, and revenue-recognition position.
  4. Only then select TAS/PR/PO and define the billing dependency shown in the practitioner map.
RUNWalk one order through the proposed document chain on paper
EXPECTED PROOF

Every physical movement, legal invoice, accounting entry, system message, status owner, and exception has one named source and successor.

02

CONFIGURATION WORKBENCH

Build the Branch sales and purchasing path

The customer order and the group purchase order must post to the correct Branch organisational units.

SPRO / IMG path

Enterprise Structure → Definition / Assignment → Sales and Distribution

Enterprise Structure → Definition / Assignment → Materials Management → Maintain Purchasing Organization

Enterprise Structure → Assignment → Materials Management → Assign Purchasing Organization to Company Code / Plant

Transactions

OVX5 / OVX3Sales organization and company-code assignment
OVXI / OVXB / OVXGDistribution channel, division, and sales area
OX08 / OX01Purchasing organization and plant definition
OX17 / OX18Purchasing assignments; verify against release
Configuration and evidence objectsTVKOTVTWTSPATVTAT024ET001W

Maintain in this order

  1. Confirm the Branch code and customer-facing sales area.
  2. Confirm the Branch purchasing organisation that contracts with Affiliated Supply.
  3. Assign organisational units consistently and record currency, calendar, address, and company-code dependencies.
  4. Do not assign the Affiliated Supply plant to Branch merely to force this TAS scenario; Affiliated Supply remains a supplier in Branch procurement.
RUNVA01 and ME21N with the intended organisational data
EXPECTED PROOF

Branch owns both the customer sales document and group purchase order; no organisational override is required.

If it fails, check here first

  • Sales area not allowed: verify sales-organisation, channel, division, and company-code assignments.
  • Purchasing data unavailable: verify purchasing-organisation assignment and supplier/material extensions.
  • Wrong company posting: inspect document organisational data before account determination.
03

CONFIGURATION WORKBENCH

Represent the customer and Affiliated Supply correctly

One affiliated legal entity may need supplier roles in Branch and customer roles in the Affiliated Supply process.

SPRO / IMG path

Cross-Application Components → SAP Business Partner → Business Partner → Basic Settings / Relationships

Financial Accounting → Accounts Receivable and Accounts Payable → Customer / Supplier Accounts → Master Data

Materials Management → Purchasing → Partner Determination

Transactions

BPMaintain customer, supplier, company-code, purchasing, and sales-area roles
ME23NInspect supplier and partner functions on the PO
VA03Inspect sold-to, ship-to, bill-to, and payer
Master and evidence objectsBUT000BUT100LFA1LFB1LFM1KNA1KNB1KNVV

Maintain in this order

  1. Create or reuse the Affiliated Supply Business Partner using governed group identity and tax data.
  2. Extend it as supplier to the Branch code and purchasing organisation.
  3. Maintain payment terms, currencies, reconciliation account, withholding or tax data, purchasing controls, and partner functions.
  4. In the Affiliated Supply system, extend Branch as the internal customer required to receive and bill the group order.
  5. Keep the external customer ship-to data distinct from the Branch internal customer.
RUNCreate a PO to Affiliated Supply with the external customer delivery address
EXPECTED PROOF

The supplier, invoicing party, currency, payment terms, tax identity, and ship-to destination determine without manual repair.

If it fails, check here first

  • Supplier not valid: inspect BP roles, company-code and purchasing extensions, block status, and purchasing organisation.
  • Wrong delivery destination: inspect PO delivery-address source and sales-order linkage.
  • Invoice posts to wrong affiliate: inspect supplier, alternative payee, partner functions, and reconciliation account.
04

CONFIGURATION WORKBENCH

Prepare the material and source of supply

The sales material must be sellable in Branch and purchasable from Affiliated Supply.

Configuration focus

Logistics - General → Material Master → Settings for Key Fields → Define Item Category Groups

Materials Management → Purchasing → Conditions / Source Determination

Sales and Distribution → Basic Functions → Availability Check and Transfer of Requirements, where relevant to the chosen schedule line

Transactions

MM01 / MM02 / MM03Create, extend, change, and inspect material data
ME11 / ME12 / ME13Purchasing info record
ME01 / ME03Source list maintenance and display
MEQ1 / MEQ3Quota arrangement when used
Master and evidence objectsMARAMVKEMARCEINAEINEEORD

Maintain in this order

  1. Extend the material to the Branch sales area with the item-category group used to determine TAS.
  2. Maintain purchasing data, order unit, conversion, tax classification, material group, and relevant valuation or accounting data.
  3. Create the Affiliated Supply purchasing info record and source-list entry where source determination is controlled.
  4. Align material identifiers, units, descriptions, and packaging data with the Affiliated Supply system.
RUNCreate the sales item and inspect procurement proposal and source
EXPECTED PROOF

The material determines TAS and the intended procurement schedule line; Affiliated Supply is a valid source with consistent unit, currency, and lead time.

If it fails, check here first

  • Wrong sales item category: inspect material item-category group and VOV4.
  • No source found: inspect purchasing extension, info record, source list, validity, plant, and purchasing organisation.
  • Quantity differs across systems: inspect base/order/sales units and conversion factors.
05

CONFIGURATION WORKBENCH

Configure the TAS sales trigger

The Branch sales order must create procurement demand without creating a Branch outbound delivery.

SPRO / IMG path

Sales and Distribution → Sales → Sales Documents → Sales Document Header / Item → Define Sales Document Types / Item Categories

Sales and Distribution → Sales → Sales Documents → Schedule Lines → Define and Assign Schedule Line Categories

Sales and Distribution → Sales → Sales Documents → Sales Document Item → Assign Item Categories

Transactions

VOV8Sales document type OR or project copy
VOV7Item category TAS: billing and procurement controls
VOV4Item-category determination
VOV6 / VOV5Schedule-line definition and determination
VA01 / VA02 / VA03Create, change, and inspect the order
Configuration and evidence objectsTVAKTVAPTVEPVBAKVBAPVBEPVBFA

Maintain in this order

  1. Confirm the sales document type and item-category determination for the material’s item-category group.
  2. Review TAS controls: order-related billing, completion rule, pricing, business data, and whether the item is not delivery-relevant in Branch.
  3. Review the procurement-relevant schedule line—commonly CS in standard third-party processing—without assuming the code in a copied design.
  4. Confirm PR document type, purchasing data transfer, account-assignment behaviour, and credit-block interaction.
  5. Use billing relevance F only when the intended customer billing quantity/status is based on supplier invoice receipt as in the illustrated flow.
RUNVA01 with one passing and one credit-blocked order
EXPECTED PROOF

TAS and the intended schedule line determine automatically. The passing order creates a PR; the blocked order follows the approved procurement-control behaviour.

If it fails, check here first

  • No PR: inspect VOV4/VOV5 determination, schedule-line procurement flag, material data, plant, purchasing data, rejection, incompletion, and credit status.
  • Branch delivery appears: inspect item and schedule-line delivery relevance and the determined item category.
  • Wrong billing trigger: inspect TAS billing relevance and the billing-status update from invoice verification.
06

CONFIGURATION WORKBENCH

Convert the requisition into a controlled group purchase order

The PO carries the customer demand into Affiliated Supply and provides the reference for invoice verification.

SPRO / IMG path

Materials Management → Purchasing → Purchase Requisition / Purchase Order → Define Document Types

Materials Management → Purchasing → Purchase Order → Define Screen Layout at Document Level / Set Up Stock Transport Order only if separately in scope

Materials Management → Purchasing → Messages / Output Control

Materials Management → Purchasing → Release Procedure or Flexible Workflow, according to release

Transactions

ME53N / ME52NDisplay or change the generated PR
ME57 / ME59NAssign/process or automatically create POs where supported by design
ME21N / ME22N / ME23NCreate, change, and display the PO
ME29NRelease PO in classic release procedure
Configuration and evidence objectsEBANEKKOEKPOEKETEKKNNAST / Output Mgmt

Maintain in this order

  1. Confirm the PR fields inherited from the sales order: material, quantity, requested date, purchasing group, plant, account assignment, and customer delivery address.
  2. Configure or select the PO type, release/workflow, partner functions, tolerance, confirmation, and invoice-receipt controls.
  3. Use the illustrated third-party PO item category and account assignment only after verifying the target system’s standard and copied configuration; do not universalise the diagram’s labels.
  4. Configure PO output or interface trigger and preserve the Branch sales-order/item reference.
RUNConvert the PR to a PO and transmit it to Affiliated Supply
EXPECTED PROOF

The PO contains the external customer delivery destination, agreed affiliate supplier, correct value and currency, release status, invoice-receipt flag, and traceable sales-order reference.

If it fails, check here first

  • Cannot convert PR: inspect source, supplier, purchasing organisation, document type, account assignment, release, and mandatory fields.
  • Wrong ship-to: inspect address inheritance and manual-address governance.
  • Output missing: inspect release status, output determination, recipient, channel, condition record, form, and application log.
07

CONFIGURATION WORKBENCH

Connect Affiliated Supply fulfilment

Affiliated Supply may run in the same SAP landscape, a separate SAP system, or a non-SAP supply system. The interface contract matters more than assuming one topology.

Integration contract

PO or demand message from Branch to Affiliated Supply

Order acknowledgement and confirmed date back to Branch

Delivery, shipment, PGI, carrier, and proof-of-delivery status

Affiliated Supply invoice and reference to Branch PO

Evidence transactions

WE02 / WE05IDoc display where EDI is used
BD87IDoc reprocessing under governed support
SLG1Application logs where enabled
VA03 / VL03N / VF03Affiliated Supply SAP order, delivery, and invoice evidence
Integration evidenceMessage IDPO referenceConfirmed dateShipment IDSupplier invoiceError queue

Define in this order

  1. Agree identifiers for company, supplier/customer, material, unit, address, tax, currency, and document references.
  2. Define message direction, trigger, acknowledgement, retry, duplication control, and business owner.
  3. Map the external customer ship-to separately from Branch's internal-customer identity.
  4. Define which Affiliated Supply event constitutes reliable fulfilment and which event creates the internal invoice.
RUNSend one PO through the actual interface and complete Affiliated Supply fulfilment
EXPECTED PROOF

Affiliated Supply creates one order, one delivery, one PGI event, one shipment confirmation, and one invoice linked back to the Branch PO without duplicate or manual identity repair.

If it fails, check here first

  • No Affiliated Supply order: inspect Branch output, middleware receipt, partner/profile mapping, master-data cross-reference, and error queue.
  • Wrong customer destination: inspect sold-to versus ship-to mapping and address version.
  • Duplicate order or invoice: inspect message keys, acknowledgement, retry rules, idempotency, and manual reprocessing history.
08

CONFIGURATION WORKBENCH

Post Affiliated Supply’s invoice against the purchase order

Invoice verification records Branch's liability and updates the sales-order billing status used by the illustrated design.

SPRO / IMG path

Materials Management → Logistics Invoice Verification → Incoming Invoice → Configure How Unplanned Delivery Costs Are Posted

Materials Management → Logistics Invoice Verification → Invoice Block → Set Tolerance Limits

Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Incoming Invoices

Transactions

MIROEnter incoming supplier invoice
MIR4 / MIR5Display invoice / invoice list
MRBRRelease blocked invoices under approved control
ME23NInspect PO history and invoice receipt
FB03Inspect accounting document
Transaction and evidence objectsRBKPRSEGEKBEBKPFBSEG / ACDOCAVBUP / status

Maintain in this order

  1. Confirm invoice-receipt and goods-receipt expectations on the PO item. The diagram allows no physical GR or a statistical GR; select one controlled design.
  2. Configure quantity, price, exchange-rate, and small-difference tolerances.
  3. Confirm account determination for purchase cost, COGS, clearing, price difference, tax, and affiliated supplier payable.
  4. Test how invoice quantity updates the sales-order item’s billing status when billing relevance F is used.
RUNMIRO for partial and full Affiliated Supply invoice quantities
EXPECTED PROOF

The PO history, FI document, intercompany payable, cost/clearing value, tax, and customer billing-due quantity update exactly as designed.

If it fails, check here first

  • Invoice blocked: inspect quantity/price variance, missing confirmation or GR expectation, tolerance, tax, currency, and duplicate-invoice check.
  • Wrong account: inspect PO account assignment, valuation/account determination, supplier reconciliation account, tax code, and substitution.
  • Customer item not billing due: inspect invoice posting status, PO/sales-order link, invoice quantity, TAS billing relevance, and sales-item status.
09

CONFIGURATION WORKBENCH

Configure Branch's order-related customer billing

The customer invoice uses the sales order and supplier-invoice status because Branch has no outbound delivery in this process.

SPRO / IMG path

Sales and Distribution → Billing → Billing Documents → Define Billing Types

Sales and Distribution → Billing → Maintain Copying Control for Billing Documents → Sales Document to Billing Document

Sales and Distribution → Basic Functions → Account Assignment / Costing → Revenue Account Determination

Sales and Distribution → Basic Functions → Pricing / Taxes

Transactions

VOFABilling type, cancellation, and posting controls
VTFASales-order-to-billing copy control
VKOARevenue account determination
VF04 / VF01 / VF03Billing due list / create / display billing
FBL5N / FB03Customer open item and accounting document
Configuration and evidence objectsTVFKTVCPLVBRKVBRPBKPFBSEG / ACDOCA

Maintain in this order

  1. Confirm order-related billing relevance on TAS and the billing quantity/status source.
  2. Maintain VTFA for the source sales document/item and target customer billing type, including requirements, quantity rule, pricing type, data transfer, and status update.
  3. Maintain customer pricing, tax, exchange rate, revenue account determination, output, and e-invoice obligations.
  4. Test partial supplier invoice, full supplier invoice, cancellation, credit memo, and rebilling behaviour.
RUNVF04/VF01 after supplier invoice verification
EXPECTED PROOF

The eligible quantity becomes billing due, the invoice uses Branch's customer price, FI posts customer receivable and revenue/tax, and the document flow retains the original customer-order and procurement evidence.

If it fails, check here first

  • Not billing due: inspect supplier-invoice quantity/status, billing relevance F, billing block/date, rejection, and VTFA requirements.
  • Wrong value: inspect customer conditions, pricing date, exchange rate, VTFA pricing type, tax, and manual-condition rules.
  • No accounting document: inspect posting log, VKOA, reconciliation account, tax account, company-code extension, and posting period.

TRANSACTIONAL PROOF

One customer order, two companies, one reconciled story

Configuration is not complete until the supply, invoice, and accounting evidence reconciles across both company relationships.

Controlled test data

  • Branch customer extended to sales area and company code with valid ship-to, payer, credit, tax, pricing, and reconciliation data
  • Affiliated Supply extended to Branch purchasing organisation and company code
  • Material extended for Branch sales and purchasing with TAS determination and valid Affiliated Supply source
  • Approved customer and transfer prices, tax codes, exchange rates, accounts, output, and interface mappings
  1. 01
    Branch customer sales order

    The TAS item, schedule line, ship-to, quantity, promise date, credit status, pricing, and tax treatment determine the intended procurement path.

  2. 02
    Purchase requisition and PO to Affiliated Supply

    The generated PR converts to a released, transmitted PO with the correct affiliate supplier, customer destination, value, currency, and Branch sales-order reference.

  3. 03
    Affiliated Supply order, delivery, and PGI

    HQ creates its internal supply order, ships the right quantity to the external customer, and produces traceable delivery, inventory, COGS, and shipment evidence.

  4. 04
    Intercompany invoice and Branch MIRO

    HQ’s invoice matches the Branch PO for quantity, price, currency, tax, and references, creating the intended intercompany receivable and payable.

  5. 05
    Branch order-related customer invoice

    The supplier-invoice result updates billing eligibility as designed; customer billing creates the expected receivable, revenue, tax, and complete document flow.

RECONCILEQuantity, dates, values, currencies, taxes, statuses, references, and open items
EXPECTED PROOF

Affiliated Supply inventory and COGS reconcile to its internal sale; Branch's supplier cost/payable reconciles to Affiliated Supply’s receivable; Branch's customer invoice and receivable reconcile to the external sale.

TECHNICAL REFERENCES

Verify against the target release

The installed IMG, SAP product assistance, country localisation, and approved solution design remain authoritative.

CONTINUE THE SCENARIOContinue to Intercompany project proof

Take the configured scenario through discovery, fit-to-standard, design, build, integration testing, cutover, and stabilisation.

Open live project walkthrough