What You Need to Know About Order-Related Inter-Company Billing

  • by Rohana Gunawardena, SAP Practice Director, Exium Inc.
  • May 15, 2008
Examine how order-related inter-company billing differs from other types of billing. Understand the special steps required to configure and process order-related inter-company billing in SAP ERP.
Key Concept
Most billing in SAP is delivery related, but you need to use order- related billing for some business processes, such as services. Also, you use inter-company billing, for example, in a triangular trade scenario, in which different legal entities within an organization are responsible for selling and delivering products. Combining these two types of billing results in order-related inter-company billing.

Implementing order-related inter-company billing can be tricky because no sufficient documentation exists that details several configuration nuances. For example, many SAP Notes are helpful but leave out important configuration steps. Based on my experience, I’ll walk you through everything you need to know about properly configuring this functionality in your SAP environment.

Users commonly use transactions VF01, VF04, or batch program SDBILLDL for order-related customer billing, delivery-related customer billing, and delivery-related inter-company billing. (For more information about the difference between order-related billing and delivery-related billing, refer to the sidebar “Order-Related vs. Delivery-Related Billing.”) However, you cannot use either of these transactions or the batch program to process order-related inter-company billing. Instead, you must use a unique workaround. The alternative method is based on output type RDIV and requires either transaction VF31, batch program SD70AV3A, or batch program RSNAST00, which you typically use to produce printed invoice outputs, not billing documents.

I’ll highlight how to prepare your system to ensure that order-related inter-company billing works properly. Then I’ll describe the necessary steps to configure it and explain how to print and process order- related inter-company billing. Finally, I’ll leave you with some tips and tricks I’ve discovered through my experience implementing it.

Rohana Gunawardena

Rohana Gunawardena heads the SAP practice division at Exium Inc. Exium is a leading business and technology consulting firm that enables companies to achieve their strategic business goals. Exium specializes in delivering superior IT solutions using ERP systems, with a special focus on SAP products. Rohana has been working with SAP since 1992. During his career he has assisted multiple clients on detailed system correction projects, such as correcting inventory balances, controlling area reorganizations, retrospectively activating group currency, and optimizing inter-company accounting transactions. He has spoken at many SAP conferences and has published more than 20 articles in Financials Expert, SCM Expert, and SAPtips on various aspects of SAP. His presentations have focused on Financials module selection, the order-to-cash process, global rollouts, business segment reporting, cross-module integration, and the financial impact of SCM transactions. Rohana is widely acknowledged as a leading SAP expert. Rohana is a Fellow of the Institute of Chartered Accountants in England & Wales. Previously Rohana has worked with the consulting practices of Accenture, Deloitte, and PwC.

Rohana will be presenting at the upcoming SAPinsider Financials 2018 conference October 16-18 in Prague. For information on the event, click here.

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