SAP SD Business Process real time: Cross Company Sales is a crucial concept in the world of SAP. This process allows organizations to handle sales transactions between different company codes within the same organization, streamlining business operations. In real-time scenarios, the system ensures that the data flows seamlessly across company codes, making it easier to manage intercompany sales.
For businesses using SAP SD Business Process real time: Cross Company Sales, it improves efficiency and accuracy in sales reporting, inventory management, and financial processes. This process helps companies manage complex sales scenarios where products are sold across multiple entities, ensuring smooth operations and better visibility across the organization.
SAP SD Business Process real time : Cross Company Sales
In our current Business Process, the Sale is between two company Codes where the customer is located in Another Countries. Let say, if the Customer located in USA and if placed Orders for Company Code in India, it is very complex to deliver the Goods from the Plant Located in India to the Customer who is located in USA.
Here as mentioned, lot of challenges are there in terms of Logistical Expenses and custom clearances while exporting and Importing the Goods. In this Special case, the Company will send the Goods from the Plant located in USA rather than from the Plant located in India.
Here Both the Plants have their Individual Company Codes, which means the Plant Located in India is Assigned to Indian Company Code and similarly the Plant Located in USA are assigned to the Company Code USA. Here the Important thing to note that both the Company Codes are belonging to the same Group of Companies.
How to identify Inter-company Sales order?
If Company Code of the Line-Item Plant is different to the Company code of the Sales Organization at Header Level in a Sales Order then the system identifies that the Sales order as an Inter-Company Sales Order
Once the Order is created, Delivery will be created by Batch Jobs and PGI will be done, subsequently Commercial Invoice will be raised to customer. Open Commercial Invoice created (PI01) and Inter-Company Invoice(IV01) will be created between the two company codes of plant (Supplying company Code or Selling Company code) and the Company code of the Sales Organization (Buying Company code for which customer places a Sales Order).
So we have used some Custom Functionality in this Business Process to Pick Cost Value (ZPRS) from the custom table instead picking the Cost value from the Material Master Accounting View through the requirement formulae no 4 maintained at pricing procedure configuration (V/08) level for ZPRS condition Value.
Business Requirement / Business Rational
The Business Requirement is that to pick the Cost Value (ZPRS) from the custom table (Zmarkup_Price ).
The Manufacturing cost of countries would not be same for same products (or) Material because the Raw Material cost and other Supplying cost, Labor Cost are being not the same across the countries. Due to which we have created a custom table (Zmarkup_Price) with the combination of Supplying Company Code, Buying Company code, Material, Cost and Currency.
| Supplying Company Code Assigned to Plant | Buying Company Code assigned to Sales Organization | Material | Cost | Currency |
| A100 | A200 | A1200BA | 5000 | USD |
The Cost value will get picked up and updated in Sales Order (or) Inter-Company Invoice Pricing procedure for condition type ZPRS value, when system finds that the Sales Order is an Inter-Company Sales Order.
Technical Details
When coming to technical details like, To Pick the Cost Price from the custom table (Zmarkup_Price) for Inter-Company Sales, we have implemented a new Requirement Routine in VOFM called 909 and replaced with standard Routines 4 in Pricing Procedure configuration for both Inter-Company pricing procedure and Sales Order Pricing Procedure.
In case if there is no valid record exists in Custom Markup table (ZMARKUP_PRICE), then system should bypass the custom logic and allows the standard behavior to pick the Cost value from the material Master.
Logic : The Logic Developed is
Step1
Get plant from the VBAP_WERKS
AND pass VBAP_WERKS to Table T001K
AND Get the Company Code BURKSStep2:-
Validate BURKS(company code) with VBAK/VBKD_BURKS (Sales order header company code or the company code assigned to the Sales Org of the Company Code)Step3
IF VBAK_BURKS =/= T001K_BURKS Then Fetch the ZPRS Cost Value from Custom Table Zmarkup_Price by Passing the Selling Company Code assigned to Plant , Buying Company Code assigned to Sales Organization and Material to Get the Cost Value.SAP SD Business Process real time Interview Questions
Here are some possible interview questions with answers related to SAP SD Business Process real time: Cross Company Sales:
1. What is the “Cross Company Sales” process in SAP SD?
Answer:
The Cross Company Sales process in SAP SD refers to handling sales transactions between different company codes within the same organization. For example, a customer in the USA may place an order with a company code in India. Due to logistical challenges, goods might be shipped from a plant in the USA rather than India. This process allows seamless handling of such intercompany transactions, ensuring smooth data flow between company codes.
2. How does SAP identify an Inter-Company Sales Order?
Answer:
An Inter-Company Sales Order is identified when the company code of the line-item plant differs from the company code of the sales organization at the header level in a sales order. The system detects this difference and automatically recognizes the order as intercompany, triggering the necessary processes for handling the sale between different company codes.
3. What is the role of custom tables in the Cross Company Sales process?
Answer:
In Cross Company Sales, custom tables, like Zmarkup_Price, are used to store specific cost values that are not available in the standard material master. These tables store cost data based on factors such as the supplying and buying company codes, material, and currency. During the sales order process, the system fetches the relevant cost from this custom table instead of the standard cost in the material master to calculate pricing and invoicing.
4. Can you explain the technical details behind picking the cost value from the custom table?
Answer:
In SAP, to pick the cost value from a custom table (like Zmarkup_Price), a custom routine is created in the VOFM transaction. For this, a new requirement routine (909) is implemented, which replaces the standard routine 4 in the pricing procedure. When an inter-company sales order is detected, the system uses this custom routine to fetch the cost value from the custom table. If no valid record exists, the system defaults to the standard behavior and picks the cost from the material master.
5. How does SAP handle the commercial and inter-company invoices in this process?
Answer:
Once an inter-company sales order is processed, Delivery and PGI (Post Goods Issue) are handled automatically, followed by the generation of a Commercial Invoice and an Inter-Company Invoice. The commercial invoice is raised to the customer, while the inter-company invoice is created between the supplying company code and the buying company code. This ensures proper accounting and financial tracking across the different company codes involved in the transaction.
6. What are the challenges faced during Cross Company Sales?
Answer:
Some challenges include managing logistical expenses and dealing with custom clearance when goods are shipped internationally. For example, shipping goods from India to the USA involves export and import issues, as well as costs related to customs. To mitigate these challenges, the company may choose to ship the goods from a local plant (e.g., the USA plant) rather than from a distant one (e.g., India). This approach helps reduce costs and improve delivery efficiency.