PUBLIC - Authorized for SAP Customers

Advanced Intercompany Stock Transfer

General Information

SAP S/4HANA 2023

Document Version: 1.1 – 2024-03-14
Document History

Version Date Change

1.0 2023-10-11 • Valid for SAP S/4HANA 2023
• Delta information to SAP S/4HANA 2022 version:
• Information added on the Schedule Resolution of Value Chain Issues app
• Information adjusted on supplier number of intercompany supplier invoice
• Information added on posting date of intercompany supplier invoice

1.1 2024-03_14 • Section Supported Scenarios and Functions added

• Information on split valuation category added
• Information on retail articles added
• Information on purchase order items being fully delivered with zero quantity
added
• Information on pro forma invoice in the delivering company added (as of
FPS01)
• Information added that payment terms, weights, and volume are copied from
the intercompany purchase order to the intercompany sales order

2
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
TABLE OF CONTENTS
GRAPHICAL OVERVIEW ............................................................................................................................... 4
SUPPORTED SCENARIOS AND FUNCTIONS ................................................................................................ 5
PROCESS STEP DESCRIPTION ...................................................................................................................... 6
GENERAL INFORMATION ............................................................................................................................. 8
GRAPHICAL OVERVIEW

4
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
SUPPORTED SCENARIOS AND FUNCTIONS

• Stocker transfers of anonymous stock

• Delivery related customer billing
• Batches with batch splits
• Handling unit management
• Serial numbers
• Retail sites (distribution centers or retail stores)
• Retail articles including information on seasons and use of value-added services (VAS)
• Event-based revenue recognition

5
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
PROCESS STEP DESCRIPTION

3) Intercompany Purchase Order

• You create the intercompany purchase order by using a purchase order type, e.g., NBIC.
• As the supplier, you use the supplier number of the delivering plant.
• The intercompany purchase order is relevant for the outbound delivery.
• Advanced available-to-promise (aATP) can calculate confirmed quantities and dates.
• The intercompany purchase order executes scheduling in the same way as for stock transfer orders.
• If relevant, the intercompany purchase order triggers the creation of a freight unit in transportation
management (TM).
• If relevant, the intercompany purchase order item triggers a product compliance check.
• Scope of the check includes relevant checks in the delivering and in the receiving company.
• If relevant, the intercompany purchase order item triggers a trade compliance check.
• Scope of the check is the compliance check in the delivering and in the receiving company.

4) Intercompany Sales Order

• The intercompany sales order is automatically created and maintained by the system.
• The customer number of the receiving plant is used as sold to party and ship-to-party.
• Confirmed dates and quantities are copied from the intercompany purchase order item to the
intercompany sales order items.
• The intercompany sales order item doesn’t execute an aATP check.
• The intercompany sales order item isn’t relevant for delivery.
• The intercompany sales order item doesn’t trigger a freight unit in TM.
• The intercompany sales order item doesn’t trigger a product compliance check.
• The intercompany sales order item doesn’t trigger a trade compliance check.
• The intercompany sales order item isn’t relevant for material requirements planning (MRP).

5) Outbound Delivery
• Outbound deliveries for advanced intercompany stock transfer items are created in the same way as for
stock transfer items by using the corresponding business applications.
• The outbound delivery can’t be created if the intercompany sales order hasn’t been created or if there
are issues during data replication of changes from the intercompany purchase order to the intercompany
sales order.
• The main reference for the delivery item is the intercompany purchase order item.
• Financial data that is part of the outbound delivery is copied from the intercompany sales order.

6) Stock Transfer into Stock in Transit 1710

• As soon as the physical goods issue is posted in the delivering plant, the system automatically creates a
stock transfer into stock in transit.
• You can cancel the stock transfer into stock in transit in the same manner as for stock transfer items.
• Cancellations are only possible if subsequent goods movements, intercompany customer
invoices and inbound deliveries have been cancelled or deleted before.
• The outbound delivery number is used for the ID of the stock in transit.
• Stock in transit is using own segments for valuation.

6’). Inbound Delivery

• After stock transfer into stock in transit, the inbound delivery is automatically created by the system.
• Relevant data is copied from the outbound delivery.
• Relevant data includes information for batch management and handling unit management.

7) Stock Transfer from 1710 to 1010

• The corresponding stock in transit postings are executed during the stock transfer from the delivering
plant to the receiving plant.

7a) Goods Issue from Stock in Transit 1710

• The goods issue from stock in transit in the delivering plant is automatically posted by the system
based on the internal transfer of control dates.
• Posting is scheduled for the planned transfer of control date plus offset or the actual transfer
of control date.
• If the scheduled date is in the past, posting is done immediately.

6
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
 • If the scheduled date is in the future, posting is done by job scheduling.
• You can cancel the goods issue from stock in transit by using the Monitor Value Chains App.
• Cancellations are only possible if subsequent goods movements and inbound deliveries
have been cancelled or deleted before.
• The goods issue has reference to the intercompany sales order.
• The goods issue can be used to post cost of goods sold (COGS) and revenue depending on
your system settings for event-based revenue recognition.

7b) Goods Receipt to Stock in Transit 1010

• After goods issue from stock in transit in the delivering plant, the goods receipt to stock in transit in the
receiving plant is automatically posted by the system.
• You can cancel the goods receipt to stock in transit by using the Monitor Value Chains App.
• Cancellations are only possible if subsequent goods movements have been cancelled
before.
• The goods receipt to stock in transit has reference to the intercompany purchase order.
• Valuation of the goods receipt is executed as for procure-to-stock items.
• Stock in transit has the same value as physical stock in the plant.

8) Stock Transfer into Physical Stock 1010

• You can post the stock transfer into physical stock in the receiving plant by posting the goods receipt in
the inbound delivery.
• Cancellations are done in the same manner as for procure-to-stock items.
• Cancellations are only possible if subsequent intercompany supplier invoices have been
cancelled before.
• For the used storage location, the material master must be available for this storage location.

A) Intercompany Customer Invoice

• You create the intercompany customer invoice by using the corresponding business application.
• You create the intercompany customer invoice with reference to the outbound delivery.
• Relevant sales order data is copied from the intercompany sales order.
• You can cancel the intercompany customer invoice by using the business application.
• Cancellation is possible also if an intercompany supplier invoice has been created already.
• If an intercompany supplier invoice exists, the cancellation of the intercompany customer invoice
will automatically trigger the cancellation of the intercompany supplier invoice.
• Intercompany customer invoice items for classic intercompany stock transfer items and advanced
intercompany stock transfer items use different billing types.
• This is necessary as pricing for classic intercompany stock transfer items and advanced
intercompany stock transfer items is based on different condition types.
• You create the intercompany customer invoice after stock transfer into stock in transit in the delivering
plant.

B) Intercompany Supplier Invoice

• The intercompany supplier invoice is created automatically by the system.
• Creation is triggered after the intercompany customer invoice has been posted to financial
accounting and goods receipt into storage location in the receiving plant has been posted.
• We recommend cancelling an intercompany supplier invoice by cancelling the corresponding
intercompany customer invoice.

7
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
GENERAL INFORMATION

• You can set up your system for the use of advanced intercompany stock transfer by executing all steps
in the configuration guide attached to SAP Note 3233845 .
• Advanced intercompany stock transfer is available with SAP S/4HANA 2022.
• No downport is available or won’t be available for SAP S/4HANA 2021.

• Advanced intercompany stock transfer can be used with active or inactive universal parallel accounting
(UPA).
• For more information about UPA, see SAP Note 3191636 .

• SAP Note 3298560 provides a FAQ on advanced intercompany processes with the focus on
procurement.

• Advanced intercompany stock transfer process can be triggered by using a specific purchase order type
(e.g. NBIC) that has been enabled for advanced intercompany stock transfer process.
• Using a specific purchase order type is optional.
• You can use your standard purchase order type (for example NB) to trigger advanced
intercompany stock transfer.
• The standard purchase order type must be enabled for advanced intercompany stock
transfer.
• You must use a supplier that represents a plant.

• Following information is copied from the intercompany purchase order to the intercompany sales order:
• Ship-to-party
• Tax destination country/region
• Purchase order umber into customer reference
• Incoterms including locations
• Payment terms
• Delivering plant
• Material with confirmed dates and confirmed quantities with corresponding unit of measure
▪ Seasons and value-added services for retail articles
• Net weight, gross weight with corresponding units of weight
• Volume with corresponding unit of volume
• Vendor batch number into batch number

• The customer master that is assigned to the receiving plant is used as sold-to-party in the sales order in
the delivering company.

• Price information is not copied from the intercompany purchase order to the intercompany sales order or
vice versa.

• Long texts are not copied from the intercompany purchase order to the intercompany sales order.

• When the intercompany purchase order item is fully delivered the delivered quantity will be copied into
the intercompany sales order.

• When a purchase order item is fully delivered with zero quantity, the system rejects the intercompany
sales order item, sets its confirmed quantity to zero, and sets the requested quantity to the quantity in the
purchase order item.
o You must implement SAP Note 3417712 .

• You can configure a billing type (for example IV3) with SD document category “ICPF - Intercompany Pro
Forma Invoice" that you can use for delivery-related intercompany pro forma invoices (as of FPS01).
• Necessary configuration steps are available in the configuration guide attached to SAP
Note 3233845 .

• The outbound delivery can’t be created if the intercompany sales order hasn’t been created or in case of
any issue during data replication of changes in the intercompany purchase order.

8
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
• The outbound delivery will be created independent of the status of the intercompany sales order.

• Intercompany purchase order items are marked with goods-receipt-related invoicing.

• Intercompany supplier invoice creation is only possible after goods receipt is posted in the
receiving plant.
• If the intercompany customer invoice is created before posting the goods receipt, the goods
receipt posting triggers the intercompany supplier invoice creation automatically.

• The intercompany purchase order must be maintained with “Goods Receive with Inbound Delivery”.
• In the item details of the intercompany purchase order on the confirmation tab, you must
maintain the “Conf. Control” field with “0004 - Inbound Delivery”.
• Only with this value the system creates the inbound delivery.
• You can set this value as default in the purchasing info record or in the supplier master.

• In the header of intercompany purchase order, the usage of “fixed exchange rate” is not supported.
• The exchange rate from the intercompany customer invoice is transferred to the intercompany
supplier invoice.

• The system will automatically create the intercompany supplier invoice in the selling company only if the
intercompany customer invoice has been released to financial accounting.

• The order unit and the price unit in the intercompany purchase order item must be the same.
• If both units differ, the posting of the intercompany supplier invoice fails as the intercompany
supplier invoice can’t manage a price unit that differs from the order unit.
• If you define a price for the order unit, you can use the order unit as price unit.
▪ You can enter the price directly in the purchase order item or you can define it in the
purchase order info record.

• If you order the material in various unit of measures, a purchasing info record in the receiving company
must be available.
This is necessary as pricing in the supplier invoice expects that a price is available in the unit of measure
being used in the intercompany purchase order item.
• You must maintain the field Variable Order Unit with 2 – Active with own price.
• You must maintain a condition record for all used unit of measures.

• Confirmation of Services is not represented in the Monitor Value Chains app.

If an outbound delivery has no movement type assigned to it, it generates a Confirmation of Services
instead of a goods movement document (material document). This Confirmation of Services is not
registered in the Monitor Value Chains app. This can be the case, for example, for a delivery item with a
quantity of zero or for batch main items. See SAP Note 1799799 - Confirmation of Service created
for the delivery.

• Batch splits in the outbound delivery

• In case of batch splits in the outbound delivery, the main item and the batch split items are
copied from the intercompany customer invoice to the intercompany supplier invoice.

• If material in the delivering plant is managed in batches, this material must be managed in batches also
in the receiving plant, and vice versa.

• If you configure a material in the delivering plant with a split valuation category, you must configure this
material in the receiving plant with the same split valuation category, and vice versa.

• Advanced intercompany stock transfer process is using valuated stock in transit in the delivering
company and in the receiving company. It’s not possible to omit one of the valuated stocks in transit, but
you have the following option:
• If you don’t need the valuated stock in transit in the delivering company, you can set the actual
internal transfer control date to the past, and the system automatically and immediately posts the
valuated stock in transit in the delivering company.

9
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
• Intercompany credit and debit memo processes post consolidation items for revenue in group valuation.

• Credit limit check for the intercompany sales order or intercompany customer invoice is inactive and
can’t be activated.

• Selected fields in the intercompany sales order are open for change.
• Manual changes of the tax destination can be overwritten by the automated replication being
triggered by changes in intercompany purchase order.

• You can use blocking reason for billing in the intercompany sales order header or item to block the
creation of the intercompany customer invoice.
• You must configure that a blocking reason for billing blocks the creation of the intercompany
customer invoice using billing type IV2.

• The confirmed quantity in the intercompany purchase order item triggers the creation of the
intercompany sales order.

• The supplier number that is used to create the intercompany supplier invoice is either copied from the
Supplier field of the customer master that is assigned to the sales organization of the delivering company
or copied from the Account at Customer field in the customer master of the payer in the intercompany
customer invoice.
• The customer number is assigned to the sales organization via configuration.
• If no customer number is assigned to the sales organization or if the Supplier field of the
customer master is initial, the supplier number is determined from the Account at Customer field
of the payer in the intercompany customer invoice.
• The Account at Customer field is available in the customer master, in the sales area view.

• With program parameters for the integration with suppliers, you can configure how the system reacts
when there are variances between the price in the received intercompany supplier invoice and the
expected price in the respective intercompany purchase order.

• With the Customizing activity Configure Posting Date for Advanced Intercompany Invoices, you can
specify for each delivering company which date is to be used for the posting date of the intercompany
supplier invoice, the billing date of the intercompany customer invoice or the current date.

• A manual change of the amount of an intercompany supplier invoice which was saved with errors, can
lead to the issue that a subsequent automated cancellation via VCM isn’t possible anymore.

• An intercompany supplier credit memo is shown with the document type “supplier invoice” in the Monitor
Value Chains app.

• If the following manual changes in the intercompany supplier invoices are “Saved with Errors”, these
changes are not reflected in the document status within the Monitor Value Chains app:
• Adding, deleting, reordering items
• Changing fiscal year
• Deleting the document
You can display these changes only in the detailed section of the respective supplier invoice in the
Monitor Value Chains app.

• Condition types used in the pricing in the sales order, credit memo requests, debit memo requests and
respective invoices in the delivering company are not configured as “Intercompany Billing”.

• Default for the internal planned transfer of control dates is the post goods issue date.
• The Business Add-In (BAdI) “LE_SHP_MODIFY_HEAD” in the delivery processing can be used
to change the default.

• Internal planned and actual transfer of control dates are used to automatically create the valuated-stock-
in-transit posting.
• The creation of stock-in-transit posting based on a planned transfer of control date is delayed by
an offset that is defined in configuration.

10
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
 • The BAdI “LE_SHP_MODIFY_HEAD” in the delivery processing can be used to change the
offset.
• Proof-of-delivery (PoD) is not used for valuated stock in transit postings.

• The posting date of the good movements from the delivering company towards the receiving company
can be changed via BAdI “MMIM_CREATE_GM_POSTING_DATE”.
• With this BAdI, you can avoid issues due to periods that are not open. You find an example
coding in the BAdI definition.
• With this BAdI, you change the posting date of the respective cancellations, too.

• You can use the BAdI MMIV_IC_MAPPING of the enhancement spot MMIV_IC_ENHANCEMENTS to
implement custom logic that is executed before the intercompany supplier invoice is posted to financial
accounting, for example, for the following use cases:
• You can change the posting date of the intercompany supplier invoice.
• You can change the tax codes that are used for the intercompany supplier invoice.
• If plants abroad is active in your system, you can use this BAdI to determine tax codes
for the supplier invoice that depend on the tax destination country/region (or
country/region of the VAT of the bill-to-party).

• Handling unit management (HUM):

• You can use HUM to pack advanced intercompany stock transfer items in outbound deliveries.
• Delivery items being created for packing information in the outbound delivery are not part of the
intercompany stock transfer process.
• Packing information in the outbound delivery is copied into the inbound delivering including
information on handling units.

• The value chain monitoring framework is used to automatically post some of the process steps of
advanced intercompany stock transfer.
• Intercompany sales order
• Goods issue from stock in transit in the delivering plant
• Goods receipt to stock in transit in the receiving plant
• Stock transfer into physical stock in the receiving plant
• Intercompany supplier invoice

• Monitor Value Chains app shows an intercompany supplier invoice with status “Saved with Errors” (and
thereby not being posted to financial accounting) with document processing stage “Completed”.
• A message assigned to the intercompany supplier invoice is shown in the Monitor Value Chains
app.
• The message will disappear after the intercompany supplier invoice is saved without errors.

• Value chain monitoring uses the system user SAP_WFRT (SAP Workflow Runtime) to execute the
automatic process steps by creating and changing the corresponding business objects.

• You can use the Monitor Value Chains app to cancel the automatic goods movement postings.
• The sequence of cancellations must follow the opposite direction of the automatic creation.
• Only if the intercompany supplier invoice has not been created or is cancelled it’s possible to
cancel the goods issue from storage location in the transit plant.
• The user of the Monitor Value Chains app is used to create the cancellation documents.
• The user of the Monitor Value Chains app must have authorization to execute cancellations with
the Monitor Value Chains app.
• The user doesn’t need any authorization for the business application to execute
cancellations.

• The Monitor Value Chains app displays all process steps and document numbers independently whether
the user has any authorization for business applications or not.
• To see business application data, the user must have authorization for the business application.
• In the Monitor Value Chains app, only very limited business application data is available:
• Posting date and document date of goods movements.
• Status and transaction of intercompany supplier invoices.

11
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
• To resolve technical and business process issues related to the Monitor Value Chains app, you can use
the transaction VCM_RESOLVE or the Schedule Resolution of Value Chain Issues app.
• For information about mass resolution of issues and reprocessing, see SAP Note 3211320 .

• The value chain monitoring framework executes automatic process steps that are scheduled for the
future. The system executes these steps using scheduling jobs. For more information about scheduling
jobs to execute scheduled process steps, see SAP Note 3283316 .

• If the Monitor Value Chains app doesn’t show the purchase order, the respective purchase order item is
not relevant for advanced intercompany stock transfer.
• Please check that you have implemented all configuration steps being described in SAP Note
3233845 .

• After you have completed the configuration steps being described in SAP Note 3233845 , you can
use the Monitor Value Chains app to check the successful execution of the automated steps.
• The Monitor Value Chains app shows the message log of automated steps.
• If an automated process step remains in the status “In process”, “Open” or “Reprocessing” you
should check your short dumps and your configuration of the Business Event Handling.

• Transportation management (TM) supports the business process advanced intercompany stock transfer.
• For more information see Transportation Management in Advanced Intercompany Business
Processes.

• Freight costs occurring in an advanced intercompany stock transfer process are allocated to the
delivering or receiving company depending on the Incoterms.
• For more information see Posting of Allocated Freight Costs in an Advanced Intercompany
Business Process.

• To return advanced intercompany stock transfer items, you can use returns stock transfer processing.
• For more information about the usage of advanced returns management, see SAP Note
2967795 .

• Intercompany returns stock transfer processing:

• Intercompany returns stock transfer processing can be done by using an intercompany returns
stock transport order.
• Intercompany returns stock transfer processing is a returns processing where the organization
that returns the goods has a different company code than the plant that is used as receiving
plant.
• Intercompany returns stock transfer processing is integrated into customer returns processing.
• Intercompany returns stock transfer processing is only available in classic intercompany
business processing. In classic intercompany returns, the following applies:
• In the delivering company, there is no returns order available.
• Classic intercompany return items are integrated into financial accounting of the
delivering company (based on the delivering plant).
• Pricing in the intercompany credit memo is based on condition types that are configured
as “Intercompany Billing”.
• Intercompany returns stock transfer processing doesn’t post consolidation items for cost of
goods sold or revenue in group valuation.
• When using advanced returns management, instead of using an intercompany return you can
use returns processing involving the supplier by IDoc exchange.
• In the returns order, the used external supplier represents the receiving company or
receiving plant.
• The plant that is used in the returns order has the same company code as the sales
organization.
• For information about customer returns processing and IDoc exchange, see SAP Note
2967795 attachment ARM_Product_Overview_IDoc_Exchange.pdf.

12
© 2024 SAP SE or an SAP affiliate company. All rights reserved. See Legal Notice on www.sap.com/legal-notice for use terms, disclaimers, disclosures, or restrictions related to SAP Materials for general audiences
www.sap.com/contactsap