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Inter-Company Billing - Automatic Posting To Vendor Account (SAP-EDI)

Automatic posting to vendor account is done by EDI. In our case where both companies
are processed in the same system (& client), it is sufficient to create Idoc.
This process requires several steps:
1. Creating a Customer to represent the receiving Company.
2. Creating a Vendor to represent the supplying company.
3. Creating a Port
4. Maintain an Output Type
5. Creating a Logical Address
6. Creating a Partner Profile for both Customer and Vendor
7. The relevant MM customizing is maintained.
8. The relevant FI customizing is maintained.

1. Creating a Customer to represent the receiving Company.
The customer has already been created (XD01) for the purpose of Intercompany
processing and entered in the appropriate transaction in customizing (Sales and
Distribution a Billing a Intercompany Billing a Define Internal Customer Number By
Sales Organization).

Note: The customer has been created in the supplying company code.
The organizational data in this case is:
Supplying Company Code: 1180
Supplying Plant: 1180
Supplying Sales Organization: 1180
Supplying Distribution Channel: 01
Supplying Division: 00
Receiving Company Code: 3100
Customer representing the receiving Company Code: P3100

2. Creating a Vendor to represent the supplying company.
The Vendor is created with the standard transaction (XK01).
Note: The Vendor is created in the receiving Company Code. The organizational data in
this case is the same as above.

Vendor representing the supplying Company Code: P1180
NOTE: There is NO need to "connect" vendor to customer in the control screen.

3. Creating a Port
Tools a Business Communication a IDoc Basis a Idoc a Port Definition (T. Code WE21)
Maintain Transactional RFC: (Choose Transactional RFC and press the create icon).
A dialog box will open asking whether you want the system to generate an automatic
name or whether you wish to use your own name.

Port name: Automatically generated
Version: 4.x
RFC destination: PLD (This was defined by the basis people).

4. Maintain output type

Output Type RD04 - Invoice Receipt MM is a special function, responsible for the execution of the Idoc and will be entered in the Partner Profile later on.

Output type RD04 is maintained: IMG: Sales and Distribution -> Basic functions -> Output control -> Output Determination -> Output Determination Using the Condition Technique -> Maintain Output Determination for Billing Documents a Maintain Output Types (T. Code V/40).

Partner functions

Sales and Distribution -> Basic Functions -> Output Control -> Output Determination a
Output Determination Using the Condition Technique -> Maintain Output Determination
for Billing Documents.

Assign Output Types To Partner Functions

Maintain Output Determination Procedure

Assign Output Determination Procedures

Master Data
Maintain output Master Data
Logistics -> Sales and Distribution -> Master Data -> Output -> (T. Code VV31)

5. Create Logical Address
IMG: Sales and Distribution -> Billing a Intercompany Billing -> Automatic Posting To
Vendor Account (SAP-EDI) -> Assign vendor. (T. CodeWEL1)

Logical address 1180P3100 is made of the supplying Company Code (1180) and the
receiving Customer (P3100).

Note: If the receiving Customer is a numeric number you must add zeros between the
Company code and Customer number so the Logical Address will be 14 digits.
E.g. if the customer number was 3100, than the logical address would have been
11800000003100 as can be seen in the second line.
(In our case the customer is an alpha numeric number so the second line was not necessary. It was created just for this documentation and was not saved)

The Logical address is completed when the receiving Company Code and the Vendor are
entered in the detail screen.

It is also necessary to activate the account assignment.

IMG: Sales and Distribution -> Billing -> Intercompany Billing -> Automatic Posting To
Vendor Account (SAP-EDI) -> Activate account assignment.

6. Creating a Partner Profile for both Customer and Vendor
Tools a Business Communication -> IDoc Basis -> Idoc -> Partner Profile (T. Code

Put cursor on Partner type KU and press create.
Enter type, Agent and Lang,

Pressin outbound parameters. Section, to maintain detail screens
The following screen will appear.

Enter the following data in the appropriate fields:
Partn.funct. BP
Message type INVOIC
Message Code FI
Receiving port A000000001
Basic Type INVOIC01

Press enter and the screen will change to the following:

Enter PocketSize 1

Go to the Message Control tab press and enter the data as specified in the following

You can repeat the process for cases where invoice verification is done against purchase
order. in this case enter MM in "message code field.

As you can see the only difference between the FI and MM invoice is in the message code
and output type.

NOTE: You cannot use output type RD04 again therefore you must copy it in
customizing to another output type (in this case RD00)

Follow the same procedures but maintain the inbound parameter Screen as follows:

Financial Accounting a Accounts Receivable and Accounts Payable a Business
Transactions -> Incoming Invoices/Credit Memos -> EDI -> Enter Program Parameters
for EDI Incoming Invoice (T. Code OBCE)

Make sure to maintain posting types, tax code and invoice doc.type.

Use KR when not using purchase order and RE when using purchase order


Assign Company Code for EDI Incoming Invoice

By leaving the field CoCd blank, all company codes are available.

Assign G/L Accounts for EDI Procedures (T. Code OBCB)

P1180 = Vendor

3100 = Company Code of receiving company (of customer)

G/L account should not be connected to CO. Assign Tax Codes for EDI Procedures (T.Code OBCD) It is necessary to match the output tax from the sales order to the input tax.

Tax type = Output Tax

Tx = Input Tax

Accounting -> Financial Accounting -> General Ledger -> Master Records -> Individual
Processing -> Centrally (T.Code FS00)

G/L account no. = account number that was entered in transaction OBCB (page 24)
Tax category must allow for input tax.

Make sure manual posting is allowed for the G/L account. ("Create/Bank/Interest"

In many cases the G/L account has been configured so that text is mandatory. This could
be either Header Text or Item Text.

Header Text
No special configuration is necessary. Just enter text in the "Header note". You may use
the following access sequence.

Item Text
It is necessary to implement a userexit in order to fill the item text field. Detailed
instructions are found in note 39503

8. MM Customizing:
Make sure the Unit of Measure's ISO Codes are configured correctly.
General Settings a Check units of measurement (T. Code CUNI)

Optional MM Customizing:
NOTE: This is only necessary for logistics invoice verification.
Materials Management a Logistics Invoice Verification a EDI a Enter Program

There are several transaction that allow you to monitor the IDoc. First you need to know
the IDoc number. You can see the IDoc number in the processing log in the "Header
output" screen in the billing document.

You can use transaction WE02 or WE05. Enter the IDoc number in the selection screen. If you have an error in the IDoc, you could analyze it with transaction WE19 

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  1. HI, buddy,

    I can't see your attachment with picture, and it's difficult to understand without figures and screenshot.

     Thanks for your blog.

  2. Unknown User (994xhbst)

    Hi I can't see the attachment either, it would be very useful :-)

    Trying to get this process to work for sales order with intercompany billing scenario. It works OK for Intercompany STO with INVOIC MM IDOC but not yet successful with INVOIC FI IDOC. 

  3. Former Member

    Whoever has created this - if it is Alan right from the beginning - really appreciate - thank you

  4. This article very very systematic, well written.

  5. Former Member

    Can you tell us where Basis pointed the RFC destination to in step 3 for PLD for the case where both companies are in the same system?  Very helpful blog - thanks!

  6. Former Member

  7. Former Member

    Excellent article... I just want to know if there is something similar when the inter company invoice has to be cancelled.

  8. Good one. Can you please explain if both companies are in the same system, how vendor posting happens? Do we still need EDI config ? Appreciate if you can differentiate and explain both.