ORDER TO CASH · INTERCOMPANY
How does intercompany sales work?
Intercompany sales allows one company code to sell to the external customer while a plant assigned to another company code supplies the goods. The customer-facing sale and the internal company-to-company settlement remain connected but financially distinct.
SCENARIO BOUNDARY
Intercompany is not the same as third-party drop shipment
In intercompany sales, the supplying plant belongs to another company code inside the corporate group. In third-party processing, an external supplier normally delivers to the customer and procurement documents govern that external supply.
External customer invoice plus an intercompany invoice between the delivering and selling companies.
Sales demand triggers external procurement, supplier fulfilment, and supplier invoice verification.
Intercompany Sales flow
Select any stage to explore
How the two value flows work
The selling sales organization creates the customer order. The delivering company ships and posts goods issue. The selling company invoices the external customer, while the delivering company creates an intercompany invoice to the selling company. SAP preserves both the external commercial flow and the internal company-to-company settlement.
Selling company → Customer
The selling company owns the customer relationship, commercial price, customer receivable, and customer revenue.
Delivering company → Selling company
The delivering company owns physical fulfilment and bills the selling company using the agreed intercompany price.
What configuration connects
Sales-area and plant assignments, internal customer and supplier Business Partners, intercompany billing types, copy control, pricing conditions, tax, account determination, transfer pricing, and output must agree. Local legal, tax, and transfer-pricing requirements determine the final design.
A Singapore sales company accepts an order, but a Malaysian company’s plant delivers it. Singapore bills the customer; Malaysia bills Singapore for the internal supply.