Intercompany Sales Order Processing - Domestic (1HO)

A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group. To put in simple terms, Company code A orders goods through its sales organization A from Plant B belonging to Company code B. It is imperative that both Plants A & B should contain master data records for the materials ordered by the customer. In other words, the material is created for both the Plants A and B and their respective storage locations.

Sales Organizations and Plants are uniquely assigned to Company codes. It is not possible to assign either a plant or a sales organization to more than one company code. Sales organizations and plants assigned to each other need not belong to the same company code. In other terms, a plant belonging to Company code A and assigned to Sales Organization A can also be assigned to Sales Organization B of Company Code B. This enables cross company or intercompany sales.