Table of Contents

 Purpose

This work instruction describes full process of creating a new Intercompany Customer and/or Vendor Master Data records in SAP PE1 – client 300.

Process description - for DMO

General Description

Intercompany Account Group is used in SAP both in Customer Master and Vendor Master to create Cytec/Solvay plants, sales/administrative offices and legal entities. To facilitate Stock Transport Orders (STO) between entities they have to be created both as Customers and Vendors, this relates to all partners involved in stock transport order (Sold-to/Vendor, Ship-to/Ordering address, Payer/Invoicing party, Bill-to). To facilitate proper accounting transactions (without stock movements) it is enough to create Intercompany record as Vendor.
The trading partner is a code of legal entity to which the Intercompany customer belongs (each Payer/Invoicing party represents a Trading Partner). Trading partners are represented by four digit codes – 3 -digit entity number preceded with "1" for US entities, "7" for European entities, "5" for Asia Pacific entities and "9" for Garret Mountain. The number range for Solvay entities is 910-999. For more information see Appendix 2.
As there usually are several Cytec plants under one Cytec legal entity, the full intercompany setup will require sets of different records:

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• Legal entity = Trading Partner, to be set up as Vendor for accounting transactions (e.g. administrative office) and assigned as Invoicing party in Partner functions of said sales/administrative offices.
• Sales/administrative office, set up as Vendor. For exceptional cases these can be set up as Customers as well. The setup specifics are the same as for Plants.
• Legal entity = Trading Partner having plants, to be set up as both as Vendor and as Customer and assigned as Payer/Invoicing Party in Partner Functions of said plants.
• Plants, set up both as Vendor and as Customer (NOTE! Payer/Invoicing Party in Partner Functions has to be the legal entity in all Sales Areas!)

Required documents and approvals

For new Legal entity setup filled in template is required accompanied by an e-mail or a letterhead with banking details (mandatory in Europe).
For new Plant/Sales/Administrative setup filled in template is required.
Approval for creation: No approval for creation is needed if request comes from Finance controller. If request comes from any other person, approval from Data Steward (Finance) needs to be provided:

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Setup of Intercompany Customer – Legal Entity

Step 1 – Initial screen

Account group: "ZINC Intercompany"

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Reference: This section can be used to refer to an existing partner to be used as reference. The fields copied are all Company Code data fields; Sales, Shipping and Billing Document tab fields in Sales Area data. Tax information values are not copied

Step 2 – General Data

Address

Name: Legal name of the entity. In this line the name should not be longer than 40 characters. Do not use commas or any special symbols in the name (except for the '&' sign if specifically requested).

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Data is not being manually maintained for intercompany customers in SAP.

Marketing

Customer Classification: This field is used for Customer categorization, it is optional. Possible values are "01 – Strategic Cust." and "02 – Non-strategic Cust."

Unloading Points

Unloading Point: "carrier".

Calendar key: "ZZ" – Default Customer Calendar-Mon-Fri.

Contact Person

Populate this tab, if information is provided.

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• To e-mail addresses entered in Contact Persons tab AND
• Document type indicated 03 – Invoices receiver in Function field AND
• Attribute 5 in Additional Data is set to 01 – CP Bill-to-Party

Step 3 – Company Code Data

Account Management

Recon. account: "13000100" – Intercompany Receivables (ZINC ).

Sort key: Maintain this field with default value "001" – Posting date for all the customers.

Payment Transactions

Terms of payment: Default Payment Term for Intercompany customers (ZINC) is "Z044" – DUE ON RECEIPT.

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Payment method: Populate, if provided.

Correspondence

Data is not being maintained for Intercompany Customers in SAP.

Step 4 – Sales Area Data

Sales

Currency: Maintain the currency in which customer is transacted. Where there is more than one currency, this should be the primary currency for the customer. This field is mandatory.

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Customer pricing procedure: "I" for intercompany customer (ZINC). The value in this field drives the pricing procedure that will be picked for sales transaction with the customer.

Shipping

Shipping Conditions: Maintain "ZO" – Inter-Plant for Intercompany Customers. Value in this field determines shipping point and route in sales order. If required the value will be changed when booking a sales order.

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Overdelivery Tolerance: Maintain the default values 10% for all the customers.

Billing Documents

Rebate: This check-box should be marked for all customers.

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Tax classification: The table Taxes shows the countries from where deliveries to the customer can be made. By default tax classification to be maintained as taxable if there are no special requests from Tax Department.

Partner Functions

Information in this tab is maintained to link the partners, it defines responsibility of each partner in a business transaction.

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Save the record and note the customer number displayed at the bottom of the SAP screen, it will be used as Payer in Partner Functions tab for plant/sales/administrative office.

Setup of Intercompany Customer – Plant

Setup of Intercompany customer – Plant is performed following the same steps as to set up Intercompany customer – Legal Entity, however there are some differences in the fields listed below:

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Please see below an overview of Intercompany Customer specific fields. For more details please consult previous chapter "Setup of Intercompany Customer –legal entity".

Setup of Intercompany Vendor – Legal Entity

Step 1 – Initial screen

Vendor: Must not be filled, a number will be given automatically as per defined number range at the moment of saving the new record.
Company Code: To be filled with company code for which the vendor has to be opened. NOTE! Intercompany Vendor must not be opened for the Company Code which is equal to Trading Partner.
Purchasing Organization: Leave empty.
Account group: "ZINT" – Intercompany.

Step 2 – General data

Address

Name: Legal name of the entity. In this line the name should not be longer than 40 characters. (Sentence case)

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   Currency code  - (GBP, USD, etc.) in cases when only one currency is used for the specific bank account.

Contact Persons

First name: Contact name. (Sentence case).
Name: Contact last name. (Sentence case).

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Comm. Meth.: Standard communication type. Preferred/default value should be e-mail. 

Step 3 – Company code data

Accounting Information

Recon. account: "31000100" for Intercompany Payables (ZINT).

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Payment methods: Maintain the default value "W5" for all Intercompany vendors and "A7" for vendors located in same region as Company code for which it is open (EU for EU, US for US).

Witholding Tax Accounting

Data is not being maintained in SAP.

Save the record and note the vendor number displayed at the bottom of the SAP screen, it will be used as Invoicing Party in Partner Functions tab for plant/sales/administrative office.

Setup of Intercompany Vendor – Plant/Sales/Administrative office

Step 1 – Initial screen

Vendor: Must not be filled, a number will be given automatically as per defined number range at the moment of saving the new record.

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Account group: "ZINT" – Intercompany.

Step 2 – General data

Setup of Intercompany vendor – plant or sales or administrative office is performed following the same steps as to set up Intercompany vendor – legal entity; however there are some differences in the fields listed below:

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Please see below an overview of Intercompany Vendors specific fields maintained in the General data view. For more details please consult previous chapter "Setup of Intercompany Vendor – Legal Entity".

Step 3 – Purchasing organization data

Purchasing data

Order currency:Default Order currency for Intercompany vendors (ZINT) is "USD" – United States Dollar.

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Shipping Conditions: "ZO" – Inter-Plant for Intercompany vendors.

Partner Functions

In Partner Functions vendor number of Intercompany vendor – legal entity has to be used as Invoicing Party for plant/sales/administrative office.

Checklist for changes

In case any change is performed in master data of Intercompany record, it may require a corresponding change in master data of related record as well:

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The number range for Solvay entities is 910-999.

Appendix 2 – IBAN structure

Please find the Bank Key to be used in red. For some countries bank key has not yet been determined, if in doubt please contact Payment Team.

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★ Ukraine (29) IBAN format: UAkk BBBB BBCC CCCC CCCC CCCC CCCC C
::B = bank code, C = account No.

Appendix 2 – IBAN structure

Appendix 3 – Plant addition for Intercompany vendor

When a plant is created it has it's own customer and vendor linked to it. This enables all intercompany transactions that often happens in the background. This works only for the plants, that are "live" in the specific system. 

When a new / replacement account is created in PE1 for sites that are "live" in PE1, plant data should be added in vendors purchasing data:

Go to Extras → Add.purchasing data:

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It will display vendor plant relev. where you will be able to add the plant. Please not, before adding the plant you have to be in change mode:

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