INTERCOMPANY DIRECT DELIVERY · PROCESS MAP
What happens when Singapore sells but European HQ supplies?
The Singapore company accepts the customer order and owns the external sale. European headquarters 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 ORDER, THREE PROMISES
Why the process exists
Customer promise
Singapore agrees the product, commercial price, quantity, destination, and requested delivery date with the customer.
Supply promise
European HQ accepts the internal demand, confirms supply, and delivers directly to the customer named by Singapore.
Financial promise
Europe charges Singapore for supply; Singapore charges the customer for the external sale; both relationships reconcile.
SCENARIO BOUNDARY
Commercially intercompany, technically procurement-driven
The supplier is another legal company within the group, so the transaction is intercompany. In the illustrated SAP design, Singapore uses third-party-style order processing: the sales item creates a purchase requisition and purchase order to European HQ.
Singapore sales order → PR → PO to European HQ → 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.
WHO DOES WHAT
Three parties, two sales relationships
The physical shipment and the commercial invoices do not follow the same route.
Singapore company
Owns the customer relationship, creates the customer sales order and group purchase order, records the European HQ invoice, and invoices the customer.
European headquarters
Receives Singapore’s purchase order, fulfils from its own operation, ships directly to the customer, and charges Singapore.
External customer
Orders from Singapore, receives the goods from Europe, receives Singapore’s invoice, and pays Singapore.
FOLLOW THE BUSINESS EVENT
What changes at each stage
Every stage creates evidence needed by a different team or company.
- 01
Customer sales order Singapore Sales
Singapore 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 Singapore Purchasing
The sales item generates a purchase requisition. Purchasing converts it into a purchase order addressed to European HQ, carrying the customer delivery destination.
Creates Purchase requisition and purchase order
- 03
Supply and direct shipment European HQ
European HQ 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 Europe + Singapore Finance
European HQ bills Singapore. Singapore 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 Singapore Billing + AR
Singapore 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 STORY
One demand creates two connected chains
The selling chain proves what Singapore promised and billed. The supply chain proves what Singapore bought and what European HQ delivered.
A regional customer orders equipment from the Singapore company. Singapore sends a purchase order to European HQ. Europe ships the equipment directly to the customer and invoices Singapore. Singapore 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.