Business Context
The process for advanced intercompany stock transfer allows you to transfer physical stock from one plant to another plant in the same system and the plants are owned by different companies.
A new functionality is introduced in SAP S/4HANA OP2022, OP2023, and SAP S/4HANA Cloud, private edition, for intercompany stock transport. While the classic intercompany stock transport order remains available, the advanced intercompany stock transport order offers several additional benefits:
Track Sales KPIsReuse Valuated Stock in Transit (VSIT) for transfer of controlUtilize VSIT for both the delivering and receiving companiesSupport the matching principle for financial postings, ensuring simultaneous recognition of Cost of Goods Sold (COGS) and revenue, thereby achieving compliance with IFRS 15.
Process:
The process starts with the creation of a Stock Transport Order (STO). The supplier in the purchase order is a business partner representing a plant from a different company code. The purchase order is created using the document type NBIC (Intercompany Stock Transfer STO).
Once the purchase order is processed, a Sales Order is immediately created with the document type CBIC (Intercompany Order).
SAP provides an app called “Monitor Value Chains”, which displays the entire document flow.
Next, an outbound delivery is created against the STO using transaction VL10B, followed by Post Goods Issue (PGI) using transaction VL02N. Upon PGI, two material documents are automatically created in the background:
A material document with movement type 681 (Stock Transfer to Issuing Valuated Cross-Company-Code Stock in Transit (CST)).Another material document with movement type 685 (Stock Transfer from Issuing Valuated CST).
Simultaneously, another material document is created in the receiving plant with movement type 107 (Goods Receipt in Valuated Goods Receipt Blocked Stock). This material document is generated by a background job based on the planned execution date.
Once the material reaches the receiving plant, the receiving team posts the Goods Receipt using transaction VL02N, resulting in a material document with movement type 109 (Goods Receipt from Valuated Goods Receipt Blocked Stock).
The receiving company then creates an invoice using transaction VF01 against the outbound delivery. Subsequently, an invoice is automatically created in the supplying company, and a supplier invoice is posted in the receiving plant (via an automatic MIRO process).
Document Flow:
The entire document flow is visible in the “Monitor Value Chains” app.
You can monitor related logs using transaction SLG1 with the following parameters:
Object: VCMSubobject: *
Configuration
Create BP for suppling plant and receiving plant.Extend supplier role for supplying plant and customer role for receiving plant.Use standard document type – NBIC for creating STO.
4. Use delivery type – NCC3 for outbound delivery and – NCC3 for delivery item category.
5. Use standard schedule lien category – N3
6. Configure Delivery Type & Availability Check Procedure by Plant.
7. Use Standard billing type – IV2S for the cancellation of the invoice and IV2 for intercompany invoice and IV3 for intercompany proforma invoice
8. Use sales order type – CBIC for the intercompany sales order.
9. Define schedule line category – CI for the intercompany sales order
10. Define jobs to Execute Scheduled Process Steps
IMG>ABAP Platform>Application Server>System Administration>Activation of Scope-Dependent Background Job Definitions
11. Tcode : SJOBREPO. Customize the job
12. Activate event type linkage
SPRO -> ABAP Platform -> SAP Gateway Service Enablement → Backend OData Channel → Backend Event Publisher Administration → Event Type Linkages.
13. Assign Value Chain Category to Sales Document Type
SPRO -> Sales and Distribution -> Sales → Sales Documents → Integration with Value Chain Monitoring → Assign Value Chain Category to Sales Document Type
14. Assign Value Chain Category to Item Category.
SPRO -> Sales and Distribution -> Sales → Sales Documents → Integration with Value Chain Monitoring → Assign Value Chain Category to Item Category.
15. Assign Document Type and Item Category to Value Chain.
SPRO -> Sales and Distribution -> Sales → Sales Documents → Integration with Value Chain Monitoring → Assign Document Type and Item Category to Value Chain.
16. Enable Value Chain Monitoring for Purchase Orders.
SPRO -> Materials Management → Purchasing → Purchase Order → Advanced Intercompany Processes → Enable Value Chain Monitoring for Purchase Orders
17. Assign tax Codes
SPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Assign Tax Codes for the Transfer of Supplier Invoices.
18. Configure Program Parameter Configuration IDs
SPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Configure Program Parameters
19. Assign Program Parameter
SPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Assign Program Parameter
20. Configure Posting Date for Advanced Intercompany Invoices
SPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Configure Posting Date for Advanced Intercompany Invoices
Thanks,
Ranadeep Basak
Business ContextThe process for advanced intercompany stock transfer allows you to transfer physical stock from one plant to another plant in the same system and the plants are owned by different companies.A new functionality is introduced in SAP S/4HANA OP2022, OP2023, and SAP S/4HANA Cloud, private edition, for intercompany stock transport. While the classic intercompany stock transport order remains available, the advanced intercompany stock transport order offers several additional benefits:Track Sales KPIsReuse Valuated Stock in Transit (VSIT) for transfer of controlUtilize VSIT for both the delivering and receiving companiesSupport the matching principle for financial postings, ensuring simultaneous recognition of Cost of Goods Sold (COGS) and revenue, thereby achieving compliance with IFRS 15.Process:The process starts with the creation of a Stock Transport Order (STO). The supplier in the purchase order is a business partner representing a plant from a different company code. The purchase order is created using the document type NBIC (Intercompany Stock Transfer STO).Once the purchase order is processed, a Sales Order is immediately created with the document type CBIC (Intercompany Order).SAP provides an app called “Monitor Value Chains”, which displays the entire document flow.Next, an outbound delivery is created against the STO using transaction VL10B, followed by Post Goods Issue (PGI) using transaction VL02N. Upon PGI, two material documents are automatically created in the background:A material document with movement type 681 (Stock Transfer to Issuing Valuated Cross-Company-Code Stock in Transit (CST)).Another material document with movement type 685 (Stock Transfer from Issuing Valuated CST).Simultaneously, another material document is created in the receiving plant with movement type 107 (Goods Receipt in Valuated Goods Receipt Blocked Stock). This material document is generated by a background job based on the planned execution date.Once the material reaches the receiving plant, the receiving team posts the Goods Receipt using transaction VL02N, resulting in a material document with movement type 109 (Goods Receipt from Valuated Goods Receipt Blocked Stock).The receiving company then creates an invoice using transaction VF01 against the outbound delivery. Subsequently, an invoice is automatically created in the supplying company, and a supplier invoice is posted in the receiving plant (via an automatic MIRO process).Document Flow:The entire document flow is visible in the “Monitor Value Chains” app.You can monitor related logs using transaction SLG1 with the following parameters:Object: VCMSubobject: *ConfigurationCreate BP for suppling plant and receiving plant.Extend supplier role for supplying plant and customer role for receiving plant.Use standard document type – NBIC for creating STO.4. Use delivery type – NCC3 for outbound delivery and – NCC3 for delivery item category.5. Use standard schedule lien category – N36. Configure Delivery Type & Availability Check Procedure by Plant.7. Use Standard billing type – IV2S for the cancellation of the invoice and IV2 for intercompany invoice and IV3 for intercompany proforma invoice8. Use sales order type – CBIC for the intercompany sales order.9. Define schedule line category – CI for the intercompany sales order10. Define jobs to Execute Scheduled Process StepsIMG>ABAP Platform>Application Server>System Administration>Activation of Scope-Dependent Background Job Definitions11. Tcode : SJOBREPO. Customize the job12. Activate event type linkageSPRO -> ABAP Platform -> SAP Gateway Service Enablement → Backend OData Channel → Backend Event Publisher Administration → Event Type Linkages.13. Assign Value Chain Category to Sales Document TypeSPRO -> Sales and Distribution -> Sales → Sales Documents → Integration with Value Chain Monitoring → Assign Value Chain Category to Sales Document Type14. Assign Value Chain Category to Item Category.SPRO -> Sales and Distribution -> Sales → Sales Documents → Integration with Value Chain Monitoring → Assign Value Chain Category to Item Category.15. Assign Document Type and Item Category to Value Chain.SPRO -> Sales and Distribution -> Sales → Sales Documents → Integration with Value Chain Monitoring → Assign Document Type and Item Category to Value Chain. 16. Enable Value Chain Monitoring for Purchase Orders.SPRO -> Materials Management → Purchasing → Purchase Order → Advanced Intercompany Processes → Enable Value Chain Monitoring for Purchase Orders17. Assign tax CodesSPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Assign Tax Codes for the Transfer of Supplier Invoices.18. Configure Program Parameter Configuration IDsSPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Configure Program Parameters19. Assign Program ParameterSPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Assign Program Parameter20. Configure Posting Date for Advanced Intercompany InvoicesSPRO -> Materials Management → Logistics Invoice Verification → Advanced Intercompany Processes → Configure Posting Date for Advanced Intercompany InvoicesThanks,Ranadeep Basak Read More Technology Blogs by SAP articles
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