ICS · SCENARIO ORIENTATION
What happens when Branch sells but Affiliated Supply supplies?
The Branch accepts the customer order and owns the external sale. Affiliated Supply supplies the goods and ships them directly to the customer. The group must connect one customer promise to two company-level financial relationships.
The business flow
Follow the promise from customer demand to settlement
ONE PROCESS, THREE PROMISES
Why Intercompany Sales matters
Customer promise
Branch agrees the product, commercial price, quantity, destination, and requested delivery date with the customer.
Supply promise
Affiliated Supply accepts the internal demand, confirms supply, and delivers directly to the customer named by Branch.
Financial promise
Affiliated Supply charges Branch for supply; Branch charges the customer for the external sale; both relationships reconcile.
HOW SAP FRAMES THE DEMAND
Commercially intercompany, technically procurement-driven
The supplier is another legal company within the group, so the transaction is intercompany. In the illustrated SAP design, Branch uses third-party-style order processing: the sales item creates a purchase requisition and purchase order to Affiliated Supply.
Branch sales order → PR → PO to Affiliated Supply → direct customer delivery → supplier invoice → customer invoice.
A plant assigned to another company code fulfils a sales order through the classic delivery and intercompany-billing design without the TAS procurement chain shown here.
THREE STRUCTURES MAKE THE PROCESS EXECUTABLE
Three parties, two sales relationships
The physical shipment and the commercial invoices do not follow the same route.
Branch
Owns the customer relationship, creates the customer sales order and group purchase order, records the Affiliated Supply invoice, and invoices the customer.
Affiliated Supply
Receives Branch's purchase order, fulfils from its own operation, ships directly to the customer, and charges Branch.
External customer
Orders from Branch, receives the goods from Affiliated Supply, receives Branch's invoice, and pays Branch.
FOLLOW THE BUSINESS EVENT
What changes at each stage
Every stage creates evidence needed by a different team or company.
- 01
Customer sales order Branch Sales
Branch records the external customer demand, selling price, tax treatment, requested date, ship-to party, and credit status.
Creates Customer sales order with a direct-delivery item
- 02
Purchase requirement and order Branch Purchasing
The sales item generates a purchase requisition. Purchasing converts it into a purchase order addressed to Affiliated Supply, carrying the customer delivery destination.
Creates Purchase requisition and purchase order
- 03
Supply and direct shipment Affiliated Supply
Affiliated Supply accepts the internal demand, creates its supply-side sales and delivery documents, posts goods issue, and ships straight to the external customer.
Creates Supply order, delivery, goods-issue and shipment evidence
- 04
Internal supplier invoice Affiliated Supply + Branch Finance
Affiliated Supply bills Branch. Branch posts the invoice against the purchase order, recognizing the group payable and designed purchase cost or clearing value.
Creates Intercompany invoice and PO invoice-verification document
- 05
Customer billing and payment Branch Billing + AR
Branch creates the customer invoice after the required supplier-invoice evidence is present, then receives and clears the customer payment.
Creates Customer invoice, receivable, payment and clearing evidence
SAP DOCUMENT FLOW
One demand creates two connected chains
The selling chain proves what Branch promised and billed. The supply chain proves what Branch bought and what Affiliated Supply delivered.
A regional customer orders equipment from the Branch. Branch sends a purchase order to Affiliated Supply. Affiliated Supply ships the equipment directly to the customer and invoices Branch. Branch records that invoice, invoices the customer at the agreed selling price, and later clears the customer payment.
Explore why TAS, the purchase requisition, direct delivery, supplier invoice, billing relevance, transfer price, and customer billing must work as one design.