Billing Between Company

Codes
SAP Online Help 14.02.2011

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Billing Between Company Codes ....................................................................................... 6

Configuration .................................................................................................................. 8
Single Processing......................................................................................................... 10
Collective Processing ................................................................................................... 11

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Billing Between Company Codes

Purpose
In the service branch it is common that employees belonging to one company code
sometimes work for other company codes. Often one company code (the requesting
company code such as a particular international subsidiary) of an enterprise carries out a
project in conjunction with external customers, and uses employees from other company
codes (the supplying company codes). In order to distribute the project revenues accrued in
your company code according to expenditure fairly, you are billed for the expenditures of
employees belonging to other company codes. These expenditures are collected for all
employees working on a project and you can bill them internally for cost unit rates or any
sales prices. All project participants confirm their expenditures for the same project.

Prerequisites
You carried out the steps for configuration. For more information, see Configuration [Page 8].

Process Flow
The process for billing between company codes (resource-related internal billing) is described
below. This type of billing is based on the dynamic item processor [External] (DIP), which is
also used for resource-related billing of customers. For more information, see resource-
related billing [External].

The following example uses a supplying company code only and a project as an account
assignment object.

In the supplying company code you can use all objects with order characteristics
as account assignment objects, such as sales orders, WBS elements, network
headers, network activities, and service orders.
You can also use cost centers as account assignment objects if you have
implemented BAdI: Resource-Related Billing Between Company Codes in
Customizing for Sales and Distribution under Billing Intercompany Billing
Resource-Related Intercompany Billing.

The steps described below correspond to the process depicted in the graphic.

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Requesting Company Code Supplying Company Code

Cost
center
Employees
1
Internal
customer
order 3 Times

6
Sources
Billing
request 2

Customer Customer
billing Internal
project/ 4
document billing
sales order
request

5b

Internal Internal
invoice billing 5a
receipt document

...

1. The supplying company code creates an internal sales order once, or once a year for
example, in which the internal customer represents the requesting company code.
2. The requesting company code creates a project with its (external) customer. Contract
agreements in the form of a real sales order lie with the requesting company code.
3. An employee from the supplying company code provides services for the project and
reports his or her time directly. Actual costs (such as travel costs or expenditures) are
posted on a corresponding account assignment in the supplying company code. They
are later reposted to the project through CO-reposting in transactions KB11N or KB15N.
For more information, see SAP Note 1463819.
4. In the supplying company code, the functions for billing between company codes
identify those time and travel expense confirmations that exceed the company code
boundaries between the supplying and requesting company code. The system
processes line items such as in resource-related billing [External] summarized
dynamically, structured, and evaluated. The system generates an internal billing
request.
For more information about this function, see Single Processing [Page 10].
5. The internal billing and invoicing steps are as follows:
a. In the supplying company code the internal billing document is created based on
the internal billing request. It might then be sent to the requesting company code
using the SAP Electronic Data Interchange [External] (SAP-EDI).
b. In this way, internal revenues are posted on the side of the supplying company
code. These internal revenues balance the employee’s time and travel
expenses in this company code. As a rule, revenue surplus is attained, which
balances out the fact that the supplying company code did not use its
employees for one single customer project.
c. In the requesting company code, the system posts the incoming invoice in
Financial Accounting.

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d. Internal expenditures are posted on the side of the requesting company code.
Account assignment in Controlling is superfluous, as a rule, since the actual
costs were already account assigned.
6. The requesting company code creates a customer billing document and thereby
creates revenues for services as well, which were provided by the employee from the
supplying company code. The requesting company code must not wait for the incoming
invoice, but rather it can create its billing document immediately after time or travel
expenses have been entered by the employee. The requesting company code hereby
creates external revenues. A portion of these revenues must be used to compensate
the internal expenditures.

Within your organization, ensure billing between company codes occurs as soon
as the period ends, and before other period-end processes are carried out. If
there is a large amount of data to be processed, billing between company codes
should occur several times during this period.

Alternative Process
If you do not want to use the process described above, you can use the business process
described below. Here, the employees of the supplying company code confirm their time or
travel expenses for a sales order, and the employees of the requesting company code
confirm theirs for a project, even though both work for the same project. You must create a
purchase order (and a sales order) for each project belonging to the supplying company code.
7. The requesting company code creates a purchase order for the supplying company
code.
8. The supplying company code creates a sales order for the purchase order.
9. The employee belonging to the supplying company code who works on the project,
confirms his or her time and travel expenses for the sales order.
10. The supplying company code bills the sales order to the requesting company code,
whereby incurred costs are account assigned at invoice receipt to the project of the
requesting company code.
11. The project costs are billed to the customer belonging to the requesting company code.

Result
You billed for services provided for other company codes. The revenues you attained from
external customers are divided among all participating company codes.

Configuration
Before you can use the process for billing between company codes, you must complete
configuration. For more information about the process, see Billing Between Company Codes
[Page 6]
To make the settings for configuration, follow the steps described below:
...

1. Create an internal customer (transaction XD01)in the supplying company code to

represent the requesting company code.

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2. Assign any sales organization of the requesting company code to the internal customer.
In Customizing for Sales and Distribution, choose Billing Intercompany Billing
Define Internal Sales Number by Sales Organization.

We recommend that you assign the internal customer to exactly one sales
organization of the company code. Nevertheless, the internal customer
represents the entire requesting company code.
3. If you use the Reconciliation Ledger or New GL with Real-Time Integration, then define
clearing accounts and alternative reconciliation accounts for cross-company Controlling
transactions using the resource-related intercompany billing (RRICB) process. In
Customizing for Sales and Distribution, under Billing > Intercompany Billing >
Resource-Related Intercompany Billing you can maintain settings in the following
activities:
a. Maintain Clearing Accounts for Company Codes

For company code combinations using billing between company codes, you
must enter P&L accounts for credit and debit postings for both company codes
and you must set the activation flag. Both company codes have to belong to the
same controlling area and the P&L accounts must not be created as cost
elements.

These clearing accounts are taken only for cross-company Controlling

transactions between company codes entered in this activity. This is to ensure
that no double postings occur in Financial Accounting within this process.
b. Maintain Optional Account Determination

Optionally, you can maintain alternative reconciliation accounts.

These alternative reconciliation accounts are taken only for cross-company
Controlling transactions between company codes entered in the activity Maintain
Clearing Accounts for Company Codes. If no reconciliation account can be
determined, the account determination is used.
4. Set up material determination and pricing in the supplying company code as you
require for billing from the supplying to the requesting company code.
5. Set up a dynamic item process profile [External] (DIP profile) with the new source
Intercompany – Line Items. In Customizing for Sales and Distribution, choose Sales
Sales Documents Customer Service Service Quotation/Resource-Related Billing
Profiles for Resource-Related Billing/Quotation Creation. For more information, see
Resource-Related Billing [External].

To ensure this information is available in the accounting documents and

incoming invoice, you can set Business Area, Partner Business Area, Profit
Center, and Partner Profit Center as relevant and choose No Summarization.
Do not change Profit Center, or Partner Profit Center during this period, as
this must be done at the beginning of the period when no postings to objects
already exist.
To have these fields included in the accounting documents, you must implement
SAP Note 1511354. After that you must use a specific sales order type for the

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internal sales order and a specific item category for the item in step 6 as
described in the SAP Note.
6. Create an internal sales order with an item in the supplying company code for each
requesting company code, and assign the DIP profile you created above to the item.
You can use this internal sales order at any time. Alternatively, you can use contracts
(transaction VA41) instead of sales orders (transaction VA01).

Ensure organizationally, that there is only one internal sales order at this point in
time between the supplying and requesting company codes.

Carry out the following activities only if you want to send the billing document
from the supplying company code to the requesting company code using the SAP
Electronic Data Interchange [External] (SAP-EDI) and post it there electronically.

Set up EDI processing. For more information, see SAP Note 31126 or
Customizing for Sales and Distribution under Billing Intercompany
Billing Automatic Posting to Vendor Account (SAP-EDI).

Make the settings for invoice receipt, if necessary. For more information
see the Customizing for Financial Accounting under
Accounts Receivable and Accounts Payable Business Transactions
Incoming Invoices/Credit Memos EDI.

Single Processing
Use
Using this function you can bill between company codes (resource-related internal billing). To
call this function, choose the following path from the SAP Easy Access Menu: Logistics
Sales and Distribution Sales Order Subsequent Functions Billing Between
Company Codes.

Integration
The function reads cross-company code line items from SAP Controlling, for example, costs
or quantities confirmed in the Cross-Application Time Sheet (CATS). The system takes all
objects with order characteristics into consideration, for example, sales orders, WBS
elements, network headers, network activities, service orders, and cost centers.

Prerequisites
You carried out the steps described under Configuration [Page 8].
To enable you to work with cost centers, you have implemented BAdI: Resource-Related
Billing Between Company Codes in Customizing for Sales and Distribution under Billing
Intercompany Billing Resource-Related Intercompany Billing.

Features
This function uses the Dynamic Item Processor [External] (see Resource-Related Billing
[External]). The system proceeds as follows:
...

1. The system determines the requesting and supplying company code in the
intercompany sales document.

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2. The system reads all line items for combining both company codes from one period and
one fiscal year. Once you enter the additional selection criteria, the system takes these
into account as well.
3. The system summarizes the line items and determines materials and prices. You can
adjust the result manually (see also Processing the Expenditure View [External] and
Editing the Sales Price View [External]).
4. Based on these values you can create a billing request [External].

Activities
Enter the following data in the initial access screen for Billing Between Company Codes:

Internal sales order of the supplying company code

Period

Fiscal year
Optionally, you can define the account assignment objects to be selected in the requesting
company code.

Note that you can enter sales documents or service orders or project objects
(project definitions, WBS elements, networks/orders) or cost centers.

Collective Processing
Use
You use this function to process several intercompany sales documents together. To call the
transaction, choose the following path from the SAP Easy Access Menu: Logistics Sales
and Distribution Sales Order Subsequent Functions Billing Between Company
Codes (Collective Processing).

To do so, you must first enter the Intercompany Sales Documents of the supplying company
codes in the selection screen for Resource-Related Billing Between Company Codes:
Collective Processing.

Note
The intercompany sales documents can belong to different Controlling areas.
For more information, see Billing Between Company Codes [Page 6].

Prerequisites
To enable you to work with cost centers, you have implemented BAdI: Resource-Related
Billing Between Company Codes in Customizing for Sales and Distribution under Billing
Intercompany Billing Resource-Related Intercompany Billing.

Features
In the Optional Selection Parameters area, to reduce the number of objects to which costs are
selected, you can define the account assignment objects to be selected in the requesting

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company code. Account assignment objects include sales orders, orders, or objects
belonging to projects, such as WBS elements.
You can process objects to one project at one time and then process objects to another
project at another time.

Note
You can enter sales documents, or service orders, or project objects (project
definitions, WBS elements, networks/orders), or cost centers.

In the Source area, you determine which Period, Fiscal Year and Posting Date To the system
uses during processing. To do this, you must choose one of the following radio buttons:

Period to Current Date: If you choose this radio button and execute billing, the system
selects all the corresponding objects’ costs for the period and fiscal year combination
of the current date period. The system automatically sets the Posting Date To
parameter to the last day of the period during billing.

Previous Period to Current Date: If you choose this radio button, the system selects
the corresponding objects’ costs for the period and fiscal year combination before the
current date period. The system automatically sets the Posting Date To parameter to
the last day of the previous period during billing.

Period from Selection Screen: If you choose this radio button, the system uses the
values you entered in the Period field, Fiscal Year field, and the Posting Date To field
in the selection screen. For this option only, the values in selection screen influence
the process.

Note
The value in the Posting Date To field must belong to the period and fiscal year
combination entered in the selection screen.
If you select the Process Open Items Only checkbox, the system processes only the dynamic
items that have not been fully billed. If you do not select this indicator the system processes
all dynamic items.
In the Further Options area, you can select the Saved data checkbox to determine whether
the system should use saved data for the objects to be billed. You can select the Refresh
checkbox to specify whether the system should refresh the saved data for the objects to be
billed: The system reads the saved data first, and subsequently rereads the cost records to
the objects. You can select the Refresh checkbox only if you have selected the Saved data
checkbox. Additionally, you can enter a Pricing date if you want to determine the prices for all
items as of the same date.
In the Save Options area, you can decide if the system saves an extract or creates a debit
memo request or a credit memo request.

Save extract: If you select this checkbox, the system executes the billing between
company codes as for Save sales document but instead of creating a debit memo
request and/or a credit memo request, the system writes the result that is produced
during processing to the database. You can reuse the data for another run with or
without refreshing it.

Save sales document: If you select this checkbox, the system creates a debit memo
request and/or a credit memo request in case there are amounts or quantities to be
billed.
In the Processing Options area, you can select the Test Run checkbox to specify that an
extract or sales document is created. You can select the Background Processing checkbox to
specify that billing is carried out in the background. You can select the Detail List checkbox to

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specify that the system shows additional information to processes carried out (for example,
error messages).

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