We will master transit: Control! Secure! Unite! Relieve! Bundle!
Advanced Intercompany puts an end to shadow postings. Sales and Stock Transfer both work with real documents, each Scope Item for its own process.
At the center is the valuated in-transit stock. It shows in real time who owns the goods and what they are worth, critical when every day in transit erodes shelf life.
The Value Chain Monitoring Framework with IFRS 15 event-based revenue recognition oversees both processes and keeps ownership, stock, and margin clearly assigned at all times.
How Advanced Intercompany enters your SAP landscape
We implement Sales and Stock Transfer as activated Scope Items; clear Incoterms determine the transfer of ownership. We present both processes separately below.
How Advanced Intercompany works
Two registers, one click per step: Sales shows the sale, Stock Transfer the relocation.
Advanced Intercompany Sales
One customer, two companies, one document
Customer order at the selling company
A beverage group sells through a distribution company abroad; the end customer orders there, and it bears the commercial risk.
Internal order at the delivering company
The delivering bottling company automatically takes over the physical part via a real internal document instead of an IDoc posting document.
Delivery without a break
Physical delivery route, purchase agreement, and internal settlement mesh together so cleanly that no manual reconciliation between the three levels is needed.
Two invoices from one delivery
The F2 customer invoice goes to the end customer, the IV2 intercompany invoice runs internally; both are created independently, no manual reconciliation needed.
Advanced Intercompany Stock Transfer
Logistics without shadow work
Stock transfer order at the destination site
For relocation as well, everything runs fully automated between two sites, from trigger to settlement. Site B reports the requirement and creates the intercompany stock transfer order for the batch.
Automatic internal customer order
As soon as the order is triggered, an internal customer order is created fully automatically at the delivering Site A.
Picking and loading
Site A picks the batch, creates the delivery documents, and loads them onto refrigerated trucks or containers.
Valuated in-transit stock
During refrigerated transport, the batch sits in valuated in-transit stock; this is where the legal transfer of ownership takes place.
Goods receipt at the destination site
Site B receives the delivery, posts the batch, and makes the material directly available for processing or sale.
Fully automatic settlement
The system simultaneously generates the outgoing invoice for Site A and the incoming invoice for Site B.
What the system extension delivers
Four effects that Advanced Intercompany delivers beyond pure process automation, especially for perishable goods.
Where companies often get stuck with Advanced Intercompany
The classic intercompany solution has known gaps, for sales just as for stock transfer. It produces posting documents without a real invoice, no valuated stock, and no period-end accruals on either side. In an industry with short shelf lives, seasonal peaks, and tight margins, this ambiguity quickly becomes a real financial risk. Two mechanisms close these gaps for both processes equally, as shown in the two cards below.
Document chains nobody can oversee anymore
Without central monitoring, every source of error becomes a manual search.Real-time document chains instead of error hunting
Fiori app Monitor Value Chains since SAP S/4HANA 2022With SAP S/4HANA 2022 came the Fiori app Monitor Value Chains. It generates documents and postings automatically, shows every document link in real time from order to invoice, and detects errors such as missing master data early. After correction, it resets the process in a targeted way, turning many manual steps into one monitored end-to-end process.
Auditors spot the gap immediately
The classic solution does not provide clean period-end accruals for either side.For finance and audit, not just logistics
IFRS 15 event-based revenue recognition meets SAP TMThrough IFRS 15 with event-based revenue recognition, SAP recognizes revenue and costs at the actual transfer of ownership; freight costs via SAP TM land on the same event. The result is a clean margin per bottling plant and country, a faster close, and an audit that never turns into a search exercise.
Your benefits at a glance
Four effects of the system extension, summarized briefly.
One central assortment
Group sales manages a unified beverage or food assortment across all countries and plants.
Clean stock valuation
Valuated in-transit stock shows in real time who owns the batch, even while it’s on the road.
Shorter lead times
Synchronous orders, deliveries, and invoicing, critical for seasonal peaks.
Audit without a search exercise
A seamless document chain delivers the metrics directly to auditors.
Frequently Asked Questions About Advanced Intercompany in SAP
Answers to the questions we are asked most often in Advanced Intercompany projects.
What are the SAP Scope Items 5D2 and 5HP?
Sales (5D2) stands for cross-company-code sales, Stock Transfer (5HP) for cross-company-code stock transfer. Together, both Scope Items make up Advanced Intercompany SAP S/4HANA and automate the flow of goods between legally independent group companies.
What distinguishes Advanced Intercompany from the classic intercompany solution?
The classic solution operates without a real purchase document or customer order and without valuated stock at the selling or delivering company. Sales (5D2) and Stock Transfer (5HP) each generate real documents for sales and relocation, a valuated in-transit stock, and consistent metrics for both companies.
What is valuated in-transit stock and why does it matter?
During physical transport, valuated in-transit stock shows which company currently owns the goods and at what value they sit on the balance sheet. The agreed Incoterms govern the exact point in time of the ownership transfer.
Since when has the Value Chain Monitoring Framework existed in SAP S/4HANA?
The framework, with the Fiori app Monitor Value Chains, was introduced with SAP S/4HANA 2022 and monitors sales and relocation processes end to end in real time.
How does Advanced Intercompany affect IFRS 15 accounting?
Through event-based revenue recognition under IFRS 15, SAP records revenue and costs precisely at the point of actual ownership transfer instead of generically at period end, resulting in a clean, auditable margin per company.
Why is Advanced Intercompany especially relevant for Food & Beverage?
Short shelf lives, many plants, and tight margins make ambiguity in transit expensive. Advanced Intercompany gives group sales a central assortment across all companies and gives finance the correct stock value at all times.
Let's talk about your Advanced Intercompany processes
I’d be happy to show you, using your own scenario, how the two Advanced Intercompany processes, Sales and Stock Transfer, work for your Food and Beverage landscape.
Philipp Hildebrandt
Senior Business Development Manager & Enterprise Architect