INTERCOMPANY BILLING OF SERVICES

Learn how to automate your Resource-Related Intercompany Billing processes with SAP RRICB

Guidelines for your Intercompany Billing process with SAP

In these days of globalisation, blurring industry boundaries and global talent crunches, it has become imperative for organisations to rethink their operating models and create new revenue streams. To prepare for this reality, organisations need to reinvent their back-office operations.

Has your business already expanded internationally? Has your organisation opened subsidiaries or multiple-related entities abroad? Congratulations! Great job!

Maybe you manufacture products in a separate related legal entity that supplies finished goods to your legal entity that distributes. Maybe you have a central order fulfilment operation that sources products from multiple related legal entities based on availability, or product characteristics. Perhaps you also have a central organisation that provides administrative, technical or other services for all other related legal entities and then charges them for such services.

Now you have opened new operations in new markets and centralised various services, you can substantially reduce costs and standardise processes and procedures. On the other hand, you will encounter an increasing complexity of your supply chain and/ or administrative services, posing new Intercompany Accounting challenges. And that’s great, because this is a result of increased business growth and expansion to multiple operating locations.

As such, a 2016 Deloitte survey among more than 4.100 accounting and finance professionals exposes the following challenges when implementing Intercompany Accounting:

  • The provided intercompany services must be trackable and invoiced according to the actual costs incurred
  • Legal conditions (e.g. regarding profit shifting) must be met
  • Internal Service Level Agreements must be considered
  • In international contexts, exchange rate issues come into play

Although insufficient accounting of transactions between various legal entities within a corporate group can lead to inaccurate financial reporting, yet less than 10% of the respondents to this 2016 Deloitte survey say their organisations have holistic, efficient, and well-communicated Intercompany Accounting frameworks.

RRICB Webinar

Webinar

How to automate your Intercompany Service Billing process in SAP

Watch our webinar and learn how to automate your Intercompany Service Billing Processes with SAP RRICB.

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How to implement your Intercompany Charging process in SAP

If you are using SAP ERP (ECC 6.0, S/4HANA, …), you already have everything in place to automate your Intercompany Billing processes and procedures. SAP Resource-Related InterCompany Billing (SAP RRICB) is a standard SAP ERP function to generate invoices between units within a corporate group, complying with legal and internal invoice requirements. You use this function to generate invoices between units within a corporate group. You need to do this if the unit that receives an order does not deliver the service, but the product/ service is instead delivered by another unit that is within the same organisation but in a different company code.

In addition to the customer invoice, the system can generate an intercompany (IC) invoice for the supplier to bill the seller.

You can also generate IC invoices if there are multiple intermediaries within the same group that need to bill each other for their participation in processing a sales order.

Although the standard SAP Resource-Related InterCompany Billing function (SAP RRICB) is already very extensive and covers many different requirements, we enhanced this standard SAP ERP function with the following features:

  • Allocation across the entire organisation, including cost objects that are not available in the SAP standard (such as internal order settlements, cost centre assessments, manual cost allocation, etc.)
  • Validation rules between the issuing and the receiving affiliate, preventing double contracts to be created between these two legal entities and verifying which services can be executed by/for which legal entities
  • Another function prevents multiple contracts being created between the same affiliates
  • Reposting of currency differences
  • EDI functionality to ensure postings in the receiving company are reflected automatically

As such, we created a very complete state-of-the-art SAP Add-On for SAP RRICB, covering all possible requirements for automating your Intercompany Accounting process in SAP. Furthermore, it complies with both legal and your internal requirements and prevents unauthorised or incorrect SAP CO allocations thanks to the extended validation approach. Currency differences are also assigned automatically. This new, improved process makes monthly closing faster, more secure and efficient.

RRICB Optimizer

Request a live-demo of PIKON’s SAP RRICB Optimizer and learn how to easily generate invoices between units within a corporate group.

RRICB-Optimizer
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Discover in our Webinar together with our partner Orianda, how you can use RRICB to optimise your intercompany billing:

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WEBINAR

Service management with SAP and RRICB: Use case Intercompany processes

Our experts John Frijns, Steffen Rapp, and Michael Nobis from Orianda Solutions AG will provide an in-depth overview of SAP EAM and the RRICB solution. They will showcase a use case where they collaborated with a customer to establish a separate company code for a subsidiary, enabling internal services within the group. This setup reduced administrative tasks, automated billing processes, and standardized service processes between the companies.

Watch the Webinar
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PIKON supported us in the project “Effort-based invoicing with the Dynamic Item Processor”. With a minimal project effort, we have experienced an incredible standardisation and reduction in workload in the intercompany process.

We particularly appreciate the consultants’ high level of competence with short response times and well-founded answers. As an experienced project partner, PIKON dealt intensively with the processes and responded directly to our concerns and suggestions. When necessary, the competences of several consultants from the different areas were bundled for the success of the project. Communication was always focused on the user perspective.

Melanie Seeling
Manager Financial Accounting & Process Improvement
Group Accounting – SAP FI & Process Improvement, Gerresheimer AG

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WEBINAR

How to streamline and accelerate your financial closing process

  • Intelligent, proven concepts and methods for efficient financial closing
  • Functions of the SAP Financial Closing Cockpit shown with a system-demo
  • Real-life practical examples for the use of the Financial Closing Cockpit
  • Roadmap for the implementation of the tool
Watch the Webinar

Contact us

John Frijns
John Frijns
General Manager & Principal Consultant
+32 (0) 89 72 29 10
john.frijns@pikon.com
Tanja Nikolaus
Tanja Nikolaus
Customer Success Manager
+49 (0) 681 379 62 - 169
tanja.nikolaus@pikon.com
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