How Have Intercompany Sales and Stock Transfers Evolved in SAP?

Most of the large and multinational organizations run SAP, and more than 70% of the world’s transactions happen in SAP. Many of these organizations running SAP have their plants or operations across several countries and execute intercompany transactions. SAP supports intercompany processing for both variants from the very early days of SAP R/3. In the following sections, we’ll compare the classic intercompany processing to the new advanced intercompany capabilities in SAP S/4HANA. Classic Intercompany in SAP ERP SAP’s intercompany solutions in SAP R/3, SAP ERP, and SAP S/4HANA (until the 2022 on premise/private cloud release) are typically referred to as classic intercompany solutions. SAP released an advanced version of the intercompany solution in SAP S/4HANA 2022 and SAP S/4HANA Cloud 2022 Private Edition. In the following sections, we’ll cover classic intercompany sales, classic intercompany stock transfer, and the limitations of both. Classic Intercompany Sales Classic intercompany sales delivers the goods directly to the customer from the delivering plant. A typical process flow is shown in this figure. Selling organization DE creates a sales order (sales document type OR [S...