What is intercompany billing in SAP SD - Sales and Distribution?

SAP Term: intercompany billing

• Component: SD

• Component Name: Sales and Distribution

• Description: Process for invoicing business transactions when the organization that sells a product and the organization that delivers the product belong to different company codes within the same enterprise.

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• Key Concepts: 
  Intercompany billing is a process in SAP Sales and Distribution (SD) that allows companies to bill each other for goods and services. It is used when two companies are part of the same corporate group and need to transfer funds between them. The process involves creating an invoice in one company and then transferring it to the other company for payment. 
  
  How to use it: 
  In order to use intercompany billing, the two companies must first be set up as customers in SAP SD. Once this is done, an invoice can be created in one company and then transferred to the other company for payment. The invoice will include all relevant information such as the customer name, item description, quantity, price, and payment terms. Once the invoice is transferred, the receiving company can then process the payment. 
  
  Tips & Tricks: 
  When setting up intercompany billing, it is important to ensure that all relevant information is included on the invoice. This includes the customer name, item description, quantity, price, and payment terms. Additionally, it is important to ensure that both companies have access to the same SAP system so that they can easily transfer invoices between them. 
  
  Related Information: 
  Intercompany billing is a useful tool for companies that are part of the same corporate group. It allows them to easily transfer funds between each other without having to manually create invoices or process payments. Additionally, it can help streamline accounting processes by ensuring that all invoices are properly tracked and accounted for.