Scenario :
We have a company based out of France ( selling unit) and it procures material from another plant in another company code based out of Italy.
Based on my understanding , the flow is as below :
1. A sales order is raised by selling unit , in the sales order plant of Italy is mentioned.
2. Delivery and good issue is done from Italy plant to customer entry
COGS
To Inventory
3. Billing F2 is raised by Frace plant on customer :
Revenue
To customer
Intercompany invoice is raised by Italy company code on France Company Code
My question is
1. what would be the journal entry for this.
2. Is this done by OBYA settings as GL clearing account or vendor customer relationship.
3. Also I believe the intercompany pricing would be picked up by pricing condition types IV01 .
Also is there any concept of transfer pricing. How that works?
Thanks in advance for your help.