Multi Intercompany Invoicing Solution

Doing global intercompany business today often lead to the need of multiple internal invoices due to complex legal structures of enterprises. This often challenge the IT departments managing the ERP systems and it can cause complex and time consuming sales scenarios were the internal companies need several purchase and sales order flows to manage a complete sale to an end customer.

Everteam has developed a proven solution that opens up the possibility to create multiple internal invoices from one single sales order in SAP. The solution gives a seamless logistics document flow and provides full reporting support.

Companies of today are constantly striving to find more efficient flows of products and revenue through the legal structure of the group. Some subsidiaries are focusing on production or supplying the goods in any other way. Another set of subsidiaries own the relationship with the customers and manage the sale to the customers. The selling company will invoice the customer and the supplying company will handle the delivery of the goods or service. The supplying company will thereafter invoice the selling company for the goods with a so called intercompany invoice. SAP ERP has since long back functionality for this, called Intercompany Invoicing.

Not seldom, a third legal company within the group may need to be involved in the invoice flow, for instance if this company owns the Intellectual Property Rights (IPR) of the products or revenue by any other reason need to be generated in it. Since the supplying and selling companies still are involved in the flow, it would mean that SAP needs to generate more than one intercompany invoice, something that is not possible to do as part of the standard functionality. Companies then need to set up solutions and sales flows where internal sales orders and purchase orders are created in the system. These internal orders will require more maintenance in SAP and lead to a higher workload and a higher risk of errors.

Everteam has based on the need of several of our clients developed a solution that enhances the SAP standard functionality for Intercompany invoicing to include also a third company and so that two intercompany invoices are generated. We call it the Three Legal Entity functionality (3LE). The flow can be triggered and the intermediate company can be determined using a number of parameters which are stored in a customization table that is part of the solution.

The solution is developed using upgrade-safe user/customer exits and customer enhancement meaning that no objects in the SAP namespace are modified.

Please contact us at sales(at) in order to get more information about our 3LE solution.