SAP S/4HANA Multistage Intercompany Sales: Complete Configuration Guide
Multistage Intercompany Sales is a new process available from SAP S/4HANA 2025 FPS01 that allows multiple affiliated companies to participate in a single intercompany sales process. Unlike the traditional two-company intercompany scenario, this process supports chains of selling, intermediate, and delivering companies — all within the same client.
This guide walks through every customizing step and master data requirement based on a three-company scenario:
- Company 1010 — Selling company (creates the sales order for the end customer)
- Company 1210 — Intermediate company (manages internal procurement and sales)
- Company 1710 — Delivering company (owns plant 1710, delivers directly to the customer)
Important: Multistage Intercompany Sales is only available for S/4HANA 2025 FPS01. No downport is available for S/4HANA 2021, 2022, or 2023.
Prerequisites
Before starting configuration, ensure:
- Business function LOG_MM_SIT (MM, Stock in Transit and Actual Costing) is active (active by default)
- Business function VALUE_CHAIN_ANALYSIS is activated via transaction SFW5
- All organizational structures (sales organizations, distribution channels, divisions, plants) are defined
- SAP Best Practices scope item 7YY — Multistage Intercompany Sales is available as reference
Step 1: Organizational Settings
1.1 Verify Base Organizational Structure
Check and maintain the following using the respective transactions:
| Transaction | Purpose |
|---|---|
| OVX5 | Define Sales Organization |
| OVX3 | Assign Sales Organization to Company Code |
| OVXI | Define Distribution Channel |
| OVXK | Assign Distribution Channel to Sales Org |
| OVXG | Set up Sales Area |
| OMSP | Define Divisions |
| SM30 - V_TVKWZ_ASSIGN | Assign Sales Org - Distribution Channel - Plant |
1.2 Allow Cross-Company Plant Delivery
IMG Path: Enterprise Structure > Assignment > Sales and Distribution > Assign Sales Organization - Distribution Channel - Plant
Transaction: SM30 with view V_TVKWZ_ASSIGN
The selling company’s sales organization and distribution channel must have direct access to the delivering plant. Assign sales org 1010 / distribution channel 10 to plant 1710.
| Sales Organization | Distribution Channel | Plant |
|---|---|---|
| 1010 | 10 | 1710 |
Note: The delivering company 1710 and intermediate company 1210 do not need this assignment for their own sales organizations.
1.3 Assign Transit Plants
IMG Path: Enterprise Structure > Assignment > Logistics - General > Assign Transit Plant to Company Code
Transaction: SM30 with view V_T001_TRNSTPLNT
Transit plants are virtual plants used for valuated stock postings and pricing (standard price from material master). Assign:
| Company Code | Transit Plant |
|---|---|
| 1010 | 1010 |
| 1210 | 1210 |
Recommendation: Use a virtual plant as a transit plant. Ensure the respective plant view of the material master exists.
1.4 Assign Sales Area to Plant
IMG Path: Sales and Distribution > Billing > Intercompany Billing > Assign Organizational Units By Plant
Transaction: OVV9
These sales areas are used to create the intercompany sales orders and invoices in the delivering or intermediate company.
| Plant | Sales Org ICo Billing | Distribution Channel ICo Billing | Division ICo Billing |
|---|---|---|---|
| 1710 | 1710 | 10 | 00 |
| 1210 | 1210 | 10 | 00 |
Step 2: Billing Types
Three billing types are required. All examples are available in client 000 Customizing.
IMG Path: Sales and Distribution > Billing > Billing Documents > Define Billing Types for Sales
Transaction: VOFA
2.1 Intercompany Invoice (IV2)
Created between delivering company and intermediate/selling company.
| Field | Value |
|---|---|
| Billing Type | IV2 |
| SD Document Category | 5 (Intercompany Invoice) |
| Transaction Group | 7 (Billing Documents) |
| Cancel. Billing Type | IV2S |
| Act. Det. G/L Act | KOFI00 |
| Header Partners | FKIV |
| Item Partners | FPIV |
2.2 Intercompany Invoice Cancellation (IV2S)
| Field | Value |
|---|---|
| Billing Type | IV2S |
| SD Document Category | 6 (Intercompany Credit Memo) |
| Transaction Group | 7 (Billing Documents) |
| Act. Det. G/L Act | KOFI00 |
| Header Partners | FKIV |
| Item Partners | FPIV |
2.3 Intercompany Pro Forma Invoice (IV3)
Delivery-related pro forma invoice used in the delivering or intermediate company.
| Field | Value |
|---|---|
| Billing Type | IV3 |
| SD Document Category | ICPF (Intercompany Pro Forma Invoice) |
| Transaction Group | 8 (Proforma Invoices) |
| Header Partners | FKIV |
| Item Partners | FPIV |
2.4 Assign Billing Block Reasons
Transaction: OVV4
Assign blocking reasons to billing type IV2. Without this, the system can create an intercompany invoice even if the sales order is blocked for billing.
Step 3: Sales Document Type (CBIC)
IMG Path: Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Document Types
Transaction: VOV8
Define the intercompany sales order document type CBIC with these key settings:
| Field | Value |
|---|---|
| Sales Document Type | CBIC (Intercompany Order) |
| SD Document Category | C |
| Number Range Int. Asst | 13 |
| Number Range Ext. Asst | 14 |
| Item No. Increment | 10 |
| Screen Sequence Grp | AU |
| Incompl. Proced. | 11 (Standard Order) |
| Transaction Group | 0 (Sales Order) |
| Doc. Pricing Proc. | A |
| Dlv-rel. billing type | IV2 |
| Checking Group | 01 |
Additional Assignments for CBIC
Complete the following sub-steps:
| Step | Transaction | IMG Path | Assignment |
|---|---|---|---|
| Permit for sales areas | - | Sales > Sales Document Header > Assign Sales Area to Sales Document Types | Areas 1710/10/00 and 1210/10/00 |
| Incompletion procedure | VUA2 | Basic Functions > Log of Incomplete Items > Assign Incompleteness Procedures to Sales Document Types | Procedure 11 |
| Document pricing procedure | OVKJ | Basic Functions > Pricing > Pricing Control > Assign Document Pricing Procedures to Order Types | Procedure A |
| Partner determination | SSCUI_PD_SLS_DOC_H | Basic Functions > Partner Determination > Set Up Partner Determination for Sales Document Header | Procedure SO02 |
| Partner function GS | SSCUI_PD_SLS_DOC_H | Same as above | GS (Goods Supplier) to SO02 |
| Text procedure | SSCUI_TD_SLS_DOC_H | Basic Functions > Text Control > Set Up Text Determination for Sales Document Header | Procedure 01 |
Step 4: Item Category (CBIC)
IMG Path: Sales and Distribution > Sales > Sales Document Item > Define Item Categories
Transaction: VOV7
| Field | Value |
|---|---|
| Item Category | CBIC (ICO Sales Item) |
| Billing Relevance | Y |
| Pricing | X |
| Determine Cost | Checked |
| Sched. Line Allowed | Checked |
| Item Relev. for Dlv | Checked |
| Wght/Vol. Relevant | Checked |
| Incompletion Proced. | 20 (Standard Item) |
| Partner Determ. Proced. | N (Standard Item) |
| Text Determ. Procedure | 01 (Sales Item) |
Sub-steps
| Step | Transaction | Assignment |
|---|---|---|
| Incompletion procedure | VUP2 | Procedure 20 to item category CBIC |
| Profit Center field (optional) | OVA2 | Add VBAP-PRCTR to procedure 20 |
| Partner determination | SSCUI_PD_SD_ITEM | Procedure N to item category CBIC |
| Text procedure | SSCUI_TD_SLS_DOC_I | Procedure 01 to item category CBIC |
Assign Default Item Category
Transaction: VOV4
| SaTy | ItCGr | DfItC |
|---|---|---|
| CBIC | NORM | CBIC |
Step 5: Schedule Line Category (CI)
IMG Path: Sales and Distribution > Sales > Sales Documents > Schedule Lines > Define Schedule Line Categories
Transaction: VOV6
| Field | Value |
|---|---|
| Schedule Line Category | CI (ICO-No ATP & MRP) |
| Item rel. for dlv | Not set |
| Req./Assembly | Not set |
| Availability | Not set |
| Prod. allocation | Not set |
Assign Schedule Line to Item Category
Transaction: VOV5
| ItCa | SchLC |
|---|---|
| CBIC | CI |
Step 6: Movement Types (687/688)
Multistage Intercompany Sales uses valuated stock in transit. Two custom movement types handle the stock transfer:
- 687 — Stock Transfer to Issuing Valuated Stock in Transit (posts stock from physical stock to valuated SiT)
- 688 — Reversal of movement type 687
IMG Path: Materials Management > Inventory Management and Physical Inventory > Movement Types > Copy, Change Movement Types
Transaction: OMJJ
Recommendation: Due to the complexity of the customizing, copy the entries from client 000.
Key configuration for movement type 687:
| Setting | Value |
|---|---|
| Debit/Credit Indicator | H |
| Consumption Posting | R |
| Statistically Relevant | 2 |
| Ind. Rqmts Reduction | Checked |
| Reversal Movement Type | 688 |
| Allowed Transactions | MIGO, VL01N, VL02 |
Movement Type Determination
IMG Path: Sales and Distribution > Sales > Sales Documents > Integration with Value Chain Monitoring > Assign Movement Types to Value Chain Process Steps
Transaction: V_SDSLS_GMTY_DET
Assign movement types to each process step in the value chain:
| Process Step | Description | Movement Type |
|---|---|---|
| DC_GT | Delivering Company: Post goods transfer to stock in transit | 687 |
| DC_GI | Delivering Company: Post goods issue | 601 |
| IC_GR | Intermediate Company: Post goods receipt | 101 |
| IC_GI | Intermediate Company: Post goods issue | 601 |
| SC_GR | Selling Company: Post goods receipt | 101 |
| SC_GI | Selling Company: Post goods issue | 601 |
These assignments must be maintained for schedule line categories CN (No Mat. Planning), CP (MRP), and CV (Consumption MRP).
Step 7: Copying Control
Seven copying control definitions are required. All examples are available in client 000 Customizing.
7.1 Delivery (LF) to Intercompany Invoice (IV2)
Transaction: VTFLC
| Level | Field | Value |
|---|---|---|
| Header | Copy Requirements | 435 (Hdr dlv.rel. Adv ICo) |
| Header | Copy Item Number | Checked |
| Item (TAN) | Custom Data Transfer | 436 |
| Item (TAN) | Billing Quantity | B |
| Item (TAN) | Pos./Neg. Quantity | + |
| Item (TAN) | Pricing Type | G |
7.2 Delivery (LF) to Pro Forma Invoice (IV3)
Transaction: VTFLC
| Level | Field | Value |
|---|---|---|
| Header | Copy Requirements | 445 (Hdr dlv.rel. PF.AICo) |
| Item (TAN) | Custom Data Transfer | 446 |
| Item (TAN) | Billing Quantity | D |
| Item (TAN) | Pricing Type | G |
7.3 Invoice (IV2) to Credit Memo Request (CR)
Transaction: VTAF
| Level | Field | Value |
|---|---|---|
| Header | Copying Requirements | 021 |
| Header | Data transfer VBAK | 052 |
| Header | Data Transfer VBKD | 103 |
| Item (TAN) | Copying Requirements | 303 (Always an item) |
| Item (TAN) | Data transfer VBAP | 153 |
| Item (TAN) | Pricing Type | D |
| Item (TAN) | Update Document Flow | Checked |
7.4 Invoice (IV2) to Debit Memo Request (DR)
Same structure as 7.3, with target sales document type DR.
7.5 Invoice (IV2) to Returns Order (CBAR)
Same structure as 7.3, with target sales document type CBAR.
7.6 Invoice (IV2) to Lean Returns (CBRE)
Same structure as 7.3, with target sales document type CBRE.
7.7 ICo Sales Order (CBIC) to Pro Forma Invoice (F5)
Transaction: VTFAC
| Level | Field | Value |
|---|---|---|
| Header | Copying Requirements | 007 (Header/ord.pro forma) |
| Header | Copy Item Number | Checked |
| Item (CBIC) | Copying Requirements | 008 (Item/ord.pro forma) |
| Item (CBIC) | Billing Quantity | C |
| Item (CBIC) | Pricing Type | G |
Step 8: Reason for Rejection
IMG Path: Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Reasons for Rejections
Transaction: OVAG
Define a reason for rejection (e.g., 62) used to automatically reject intercompany sales order items when the standard sales order item is rejected.
| Rejection Reason | Description | Not Relevant for Billing | Statistical Value |
|---|---|---|---|
| 62 | Rejected by Selling Company | X | X |
Step 9: Purchase Order Document Type (NBAI)
IMG Path: Materials Management > Purchasing > Purchase Order > Define Document Types for Purchase Orders
Transaction: SM34 with view cluster VVC_T161_VF
| Field | Value |
|---|---|
| Type | NBAI (Intercompany PO) |
| Item Increment | 10 |
| No. Range Int | 45 |
| No. Range Ext | 41 |
| Item Category | S (Third-party) |
| Field Selection | NBAI |
Sub-steps
| Step | Transaction / View | Assignment |
|---|---|---|
| Partner schema | SM30 - V_T161_P | Schema 0002 to NBAI |
| Screen layout | SM30 - VV_162_F | Flag Incoterms part 1 as required |
Assign PO Defaults for Intercompany Sales
IMG Path: Materials Management > Purchasing > Purchase Order > Intercompany Process > Purchase Order Defaults in Intercompany Sales
Transaction: SM30 with view V_TVKOP
| Sales Org | Purchasing Org | Purchasing Group | Order Type |
|---|---|---|---|
| 1010 | 1010 | 001 | NBAI |
| 1210 | 1210 | 001 | NBAI |
Note: This setting is necessary for all companies except the delivering company.
Step 10: Value Chain Monitoring (VCM) Framework
The VCM framework orchestrates the automated process steps using the business event handling framework.
10.1 Event Type Linkages
Transaction: SWE2
Configure four event type linkages for class CL_VCM_RT_EVENT_WF:
| Event | Handler Class | Method |
|---|---|---|
| START | CL_VCM_RT_EVENT_HANDLER_START | ON_EVENT |
| RESUME | CL_VCM_RT_EVENT_HANDLER_RESUME | ON_EVENT |
| RETRY | CL_VCM_RT_EVENT_HANDLER_RETRY | ON_EVENT |
| CHANGE | CL_VCM_RT_EVENT_HANDLER_CHANGE | ON_EVENT |
All linkages use:
- Interface:
BI_EVENT_HANDLER_STATIC - Receiver Call: M (Method)
- Event Delivery: Using tRFC (Default)
- Linkage Activated: Checked
10.2 Background Jobs
Schedule jobs for:
- Scheduled process steps (e.g., goods issue from valuated SiT based on transfer of control dates) — see SAP Note 3283316
- Issue resolution and reprocessing — see SAP Note 3211320
- Business event handling jobs — see SAP Notes 2568271 and 2558479
10.3 Authorizations
The system user SAP_WFRT (SAP Workflow Runtime) must be authorized to:
- Create intercompany purchase orders
- Create intercompany sales orders
- Post goods issue from stock in transit in the delivering plant
- Post goods receipt into storage locations in transit plants
- Post goods issue from storage locations in transit plants
See SAP Note 3275079 for detailed authorization requirements.
Step 11: Enable Multistage Intercompany Sales
IMG Path: Sales and Distribution > Sales > Sales Documents > Integration with Value Chain Monitoring
11.1 Allow Sales Document Type OR for Multistage ICo
Transaction: V_SDSLS_DOC_VCMC
| Sales Doc. Type | Value Chain Category | Process Relevance | Initiating Document |
|---|---|---|---|
| OR | Multistage Intercompany Sales Process | Selling Company | X |
11.2 Allow CBIC for Intercompany Sales Orders
Transaction: V_SDSLS_DOC_VCMC
| Sales Doc. Type | Value Chain Category | Process Relevance |
|---|---|---|
| CBIC | Multistage Intercompany Sales Process | Delivering Company |
| CBIC | Multistage Intercompany Sales Process | Intermediate Company |
11.3 Allow Item Categories for Multistage ICo
Transaction: V_SDSLS_ITEM_VCMC
| Item Cat. | Value Chain Category |
|---|---|
| TAN | Multistage Intercompany Sales Process |
| CBIC | Multistage Intercompany Sales Process |
11.4 Define ICo Sales Order Document Type and Item Category
Transaction: V_SDSLS_DOC_VCM
| Value Chain Type | Sales Doc. Type | Is Intmd Company | Process Relevance |
|---|---|---|---|
| MS_IC_SALES | CBIC | (blank) | Delivering Company |
| MS_IC_SALES | CBIC | X | Intermediate Company |
11.5 Enable OR/TAN Combination
Transaction: V_SDSLS_DOC_VCM
| Value Chain Type | Sales Doc. Type | Item Cat. | Process Relevance | Enabled |
|---|---|---|---|---|
| MS_IC_SALES | OR | TAN | Selling Company | Enabled |
11.6 Assign Reason for Rejection to ICo Order Type
Transaction: V_SDSLS_DOC_VCM
Assign rejection reason 62 to both CBIC entries (Delivering Company and Intermediate Company).
Step 12: Master Data Requirements
Customers
| Master Record | Purpose | Required Views |
|---|---|---|
| Customer for selling company 1010 | Sold-to party in intermediate company’s ICo sales order | Sales area 1210/10/00, company code 1210 |
| Customer for intermediate company 1210 | Sold-to party in delivering company’s ICo sales order | Sales area 1710/10/00, company code 1710 |
Suppliers
| Master Record | Purpose | Required Views |
|---|---|---|
| Supplier for delivering plant 1710 | Goods Supplier (GS) partner in PO and sales order headers | Plant 1710 in general data, purchasing views for orgs 1010 and 1210 |
| Supplier for delivering company 1710 | Invoice partner for ICo PO in intermediate company | Purchasing view for org 1210, company code 1210, Account at Customer linked |
| Supplier for intermediate company 1210 | Invoice partner for ICo PO in selling company | Purchasing view for org 1010, company code 1010, Account at Customer linked |
Key: The “Account at Customer” field in the customer master (sales area view) must reference the corresponding supplier number. This linkage enables the intercompany billing process.
Material Master Views
The material must be maintained with these views across all companies:
| View | Plant 1710 (Delivering) | Plant 1210 (Transit) | Plant 1010 (Transit) |
|---|---|---|---|
| Sales Org | 1710/10 | 1210/10 | 1010/10 |
| Sales Plant | Required | Required | Required |
| Purchasing | - | Required | Required |
| Storage Location | Physical storage loc. | Used storage loc. | Used storage loc. |
| MRP 2 | - | Storage Loc. for Ext. Proc. | Storage Loc. for Ext. Proc. |
| Accounting | Required | Required | Required |
Important: In the MRP 2 view for transit plants 1210 and 1010, you must populate the Storage Location for External Procurement field.
Pricing
| Pricing Type | Where | Transaction |
|---|---|---|
| Purchasing price | Selling company 1010, intermediate company 1210 | MEK1 |
| Sales price (customer-facing) | Selling company 1010 | VK11 |
| Sales price (intercompany) | Intermediate company 1210, delivering company 1710 | VK11 |
| Purchasing info record (optional) | Selling 1010, intermediate 1210 (if multiple UoMs) | ME11 |
Note: For intercompany sales pricing, normal condition types are used (not configured as Intercompany Billing).
If you sell in various units of measure, create purchasing info records with Variable Order Unit = 2 (Active with own price) and maintain prices for all used units of measure.
Financial Chain
The financial chain represents the path of material and value flow between affiliated companies.
-
Define the financial chain using the Manage Financial Chain Fiori app. The chain typically starts with the delivering company, continues through the intermediate company’s transit plant, and ends at the selling company’s transit plant.
-
Assign materials to the financial chain using the Assign Material to Financial Chain Fiori app. Each material must be assigned to all relevant financial chains — one for each combination of delivering plant and transit plant in the selling company.
Tax Code Mapping
IMG Path: Materials Management > Logistics Invoice Verification > Advanced Intercompany Processes > Assign Tax Codes for the Transfer of Supplier Invoices
Transaction: SM30 with view MRM_V_EDI_TAX
Map tax rate, type, and country from the intercompany customer invoice to the supplier invoice tax code:
| Invoicing Party | Tax Type | Tax Rate | Country | Tax Code |
|---|---|---|---|---|
| 1210 | VAT | 0.000000 | DE | V0 |
| 1010 | VAT | 0.000000 | DE | V0 |
Program Parameters for Supplier Invoice
IMG Path: Materials Management > Logistics Invoice Verification > Advanced Intercompany Processes > Configure Program Parameters
Transaction: SM30 with view MRM_V_EDI_CTRL_C
Define how the system handles price differences between the PO expected price and the received invoice price:
| Config ID | Invoice Doc. Type | Processing |
|---|---|---|
| DEFAULT | RE | Unclarified Error: Park Invoice |
Assign the configuration via SM30 with view MRM_V_EDI_CTRL_M.
Pricing Procedure Considerations
SAP has enhanced the following requirements for use in pricing procedures:
- Requirement 4 (Cost) — Used in both the customer pricing procedure and the intercompany pricing procedure
- Requirement 22 (Inter-company) — Used for the intercompany pricing procedure
If you use copies of these requirements, you must adjust your copies accordingly.
QM and EWM Considerations
Quality Management
If QM is active in the transit plant for the material, goods receipt will create an inspection lot. To avoid this:
- Deactivate QM for the material in the transit plant’s quality management section
- Use information records defined for the supplier number of the delivering company
- Use a virtual plant as a transit plant
Extended Warehouse Management
The storage location in the transit plant should not be managed by EWM, as this would require executing the full EWM inbound/outbound process. Use a virtual plant as a transit plant to avoid this.
Batch Split Items
Multistage Intercompany Sales supports all three batch split billing options:
- Billing of main item with batch split items as sub-items (information only, without quantity)
- Billing of batch split items with main item as information only
- Billing of main item without batch split items
Functionality Restrictions
- All affiliated companies must operate within the same client
- Available only for SAP S/4HANA 2025 FPS01 — no downport to earlier releases
- The intercompany customer invoice does not directly create or trigger the ICo supplier invoice within the system; it follows standard B2B integration mechanisms
- Schedule line category CI is configured without ATP and MRP checks — availability planning happens at the initiating sales order level
- The process can be extended to any number of intermediate companies, but the producing company always delivers directly to the end customer
Key SAP Notes
| SAP Note | Topic |
|---|---|
| 3283316 | Scheduling jobs for VCM process steps |
| 3211320 | Mass resolution of issues and reprocessing |
| 2568271 | SAP Workflow Runtime (SAP_WFRT) configuration |
| 2558479 | Business event handling jobs |
| 3275079 | Authorization requirements for VCM |
Summary
Configuring Multistage Intercompany Sales is a comprehensive exercise touching SD, MM, FI, and cross-application components. The key building blocks are:
- Organizational settings — cross-company plant assignment, transit plants, sales area mapping
- SD objects — billing types IV2/IV2S/IV3, sales document type CBIC, item category CBIC, schedule line CI
- MM objects — movement types 687/688, PO type NBAI, purchasing defaults
- Copying control — seven definitions covering invoices, credit/debit memos, returns, and pro forma
- VCM framework — event type linkages, background jobs, and authorizations
- Master data — customer/supplier linkages, material master views across all plants, financial chain, tax mapping
The process is orchestrated by the Value Chain Monitoring framework, which automates goods movements and document creation across the company chain. Start with the client 000 reference customizing where available, and validate each step in a sandbox before moving to quality assurance.
Reference: SAP S/4HANA 2025 FPS01 Multistage Intercompany Sales Configuration Guide (Document Version 1.0, February 2025)