How to Create an Automatically Posted Intercompany Sales Journal Entry
- by Christian Eckhardt, IT Analyst
- January 15, 2004
The author explains how his company implemented automatic posting of intercompany invoices. The key to the process is learning how three different things in R/3 fit together - an output type, an IDoc, and the EDI method of data transfer.
One of the reasons that my company (a German-based food additives manufacturer) decided in 2001 to roll out our SAP system to our U.S. affiliate was to take advantage of the full integration of data and processes in R/3.
Because of time constraints, we did not implement the automatic posting of intercompany invoices during the rollout. However, in order to decrease the workload and error rate, we implemented the automatic “interface” between my company and our U.S. affiliate this year.
The standards already in the software (Releases 4.0x, 4.5x, and 4.6x) allow purchase orders (POs) typed in by someone at the U.S. site to act as the sales orders for our plant in Germany; there is no need to retype the data. In fact, the quantity ordered in the U.S. site’s POs automatically shows up on the “delivery due” list reports at the German site. As soon as a person in Germany records the goods as shipped and the nightly batch invoice job starts to run, our intercompany transfer price is automatically copied from the U.S. site’s PO into the German site’s intercompany sales billing document. The whole cycle ideally happens without a sales order and, for the most part, without much manual entry.
Of course, if everything had worked out perfectly, I would not be writing this article, which shows you what I learned the hard way. I want to warn you that the “how to” for setting up fully automated intercompany accounting in R/3 when the SD module is involved is very different than the “how to” for intercompany accounting in other modules, such as FI or MM.
In the standard system, the only automated accounting in response to an intercompany sales billing is on behalf of the selling company code in Germany (Dr. to I.Co A/R, and Cr. to I.Co Sales). The other half of the intercompany posting (Dr. GR/IR, and Cr. I.Co A/P) is not automated. This was my company’s situation before this year’s implementation. Bringing our R/3 system to our U.S. affiliate had not reduced the number of work steps.
Would you like to see this full item?