O2C 303 · INTERCOMPANY DIRECT DELIVERY
How does Singapore sell while European HQ supplies?
The Singapore company owns the customer sale. European headquarters supplies and ships the goods directly to the customer. SAP connects the customer order, purchasing demand, supplier fulfilment, intercompany charge, customer billing, and accounting evidence.
READ THE PROCESS
What the swimlanes are really saying
The customer sees one seller, but execution crosses two group companies. The Singapore selling company controls the external sale while European HQ controls physical supply and the internal charge.
Represent each company in the other company’s process
The European HQ company is maintained as the supplier for Singapore purchasing. The Singapore company is represented as the internal customer for European HQ sales. The delivering plant must also be extended to the Singapore sales organisation.
Turn the customer order into group procurement
Singapore creates the sales order with item category TAS. SAP generates a purchase requisition, which purchasing converts into a purchase order to European HQ. Credit status can control whether the sourcing step proceeds.
Ship directly to the customer
The purchase order reaches European HQ. Its supply process creates the sales order, delivery, and post goods issue. The goods move from Europe directly to the customer without entering Singapore stock.
Recognise the internal cost before the external sale
Singapore records the European HQ invoice through PO invoice verification. Customer billing is order-based, but the supplier invoice is the business evidence that releases the customer billing step under the illustrated design.
THE THREE-PARTY MODEL
Keep commercial ownership, physical supply, and internal settlement separate
The process is easiest to understand when each organisation’s responsibility is stated explicitly.
Singapore owns the customer sale
Creates the customer order and purchase order, receives the European HQ invoice, invoices the customer, recognises customer revenue, and carries the customer receivable.
European HQ owns fulfilment
Accepts the internal order, supplies the goods, creates the delivery, posts goods issue, ships directly to the customer, and bills the Singapore company.
The customer buys from Singapore
Places the order with Singapore, receives the goods from European HQ, receives the commercial invoice from Singapore, and pays Singapore.
DOCUMENT CHAIN
Follow both sides of the transaction
The blue hand-offs in the diagram cross organisational boundaries. Each hand-off should leave a traceable reference, status, value, and owner.
ACCOUNTING HAND-OFFS
Two companies recognise different sides of the same fulfilment
The exact tax and account postings depend on the legal design, but the practitioner must reconcile the internal supplier charge with the external customer sale.
European HQ records that its inventory left for the external customer.
The internal invoice records what Singapore owes European HQ. The exact expense, stock, or clearing design must match the approved accounting model.
Singapore recognises the customer-facing sale and creates the customer open item.
PRACTITIONER VIEW
What to watch across the chain
This scenario succeeds only when sales, purchasing, supply, billing, and Finance agree on the same organisational and document relationships.
Partner readiness
European HQ supplier extension in Singapore, Singapore internal-customer extension in Europe, purchasing and company-code data, sales-area data, payment terms, currencies, and tax identifiers.
Plant and material readiness
Delivering plant extension to the Singapore sales organisation, material sales and purchasing views, delivering-plant determination, shipping data, and source-of-supply validity.
Sales-to-purchasing trigger
Order type OR, TAS item-category determination, schedule-line behaviour, PR creation, credit status, purchase requisition linkage, and PO conversion.
Cross-company fulfilment
PO output or EDI, European HQ sales-order creation, confirmed dates, delivery, PGI, proof of shipment, and direct customer ship-to details.
Invoice dependency
European HQ intercompany invoice, EDI or invoice receipt, PO invoice verification, quantity and price matching, billing relevance F, and customer billing release.
Financial reconciliation
Intercompany payable and receivable agreement, transfer price, customer revenue, purchase cost, currency differences, tax treatment, billing output, and document references.
WHEN THE CHAIN BREAKS
Find the last successful cross-company hand-off
Do not treat the process as one long transaction. Identify whether the failure occurred in demand transfer, supply execution, invoice exchange, or billing release.
Did the sales item trigger external procurement?
Check item category TAS, schedule-line determination, material and plant data, source-of-supply settings, incompletion, rejection, and credit-block behaviour.
Did the purchase order reach the supply process?
Check PO creation and release, output or EDI status, supplier and internal-customer mapping, sales-area extension, material mapping, dates, blocks, and interface logs.
Was the supplier invoice posted and linked?
Check European HQ billing output, invoice receipt, PO invoice verification, billing relevance F, billing due status, copy control, pricing, tax, and accounting-block messages.
Translate the practitioner chain into the Business Partner, plant, material, item-category, purchasing, output, billing, tax, and accounting configuration required to make it work.