Intercompany billing is an important process in the SAP SD module. It enables transactions to be processed between different units. In practice, this is often necessary when a company consists of several company codes that represent different units but are part of the same group. This process ensures that services provided between these units are correctly invoiced and posted.
What is internal billing in SAP?
Internal billing is necessary when a unit of a group receives a customer order but does not carry it out itself, but the delivery or service is taken over by one or more other units. The units belong to the same group, but are represented by different accounting areas that can be based in different countries. The internal billing process ensures that the correct internal billing and posting takes place between the different units.
A typical application scenario for internal billing is the situation in which a selling company code (e.g. company code A) receives a customer order, but the goods are delivered by another company code (e.g. company code B) or several company codes (e.g. company codes B and C). In this case, internal billing must be carried out correctly to ensure that both company codes are remunerated for their respective services.
Steps of internal billing in SAP SD between two company codes
The process of internal billing in SAP SD between two company codes consists of several steps that integrate different modules and functions within SAP. The typical steps are listed below:
- Creating a customer order
- Delivery and dispatch
- Intercompany invoicing to one or more fractions
- Posting the intercompany invoice
- Customer invoicing
- Payment and settlement
Internal accounting in SAP SD is a complex but necessary process to ensure correct financial transactions between different units within a group. By accurately recording and posting internal transactions, SAP ensures that all company codes involved are appropriately compensated for their services. Companies that operate internationally or have multiple branches can benefit significantly from this function by reducing the effort required for internal accounting and improving the accuracy of their financial reports.
Do you need support implementing internal service allocation in your SAP system? We at GOpus are happy to advise you. Contact us now.
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