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Author's profile photo Former Member

Cross-Company/Inter-company transactions

Cross-Company/Inter-company transactions

Several company codes are involved in a cross-company code transaction. In a cross-company code transaction, the system posts a separate document with its own document number in each of the company codes.

Individual documents are linked by a common cross-company code number. The system generates line items automatically (receivables and payables arising between company codes) in order to balance the debits and credits in each document.

At times one company code makes purchases on behalf of another company code or makes payment on behalf of another company code. This needs entries to be passed in both company codes.

If cross company code settings are done, entry in one company code would generate the entry in the other company code also.

In this example, we have already two company codes 1009 and 1011 in country USA.

1.1 Check whether Doc type SA allows cross company postings

Via Menus

IMG(SPRO)–>Financial Accounting( new) –> Financial Accounting Global Settings (New) –> Document  –> Document Types –> Define Document types for Entry View   

Via Transaction Code


Select Position button and give Document type SA and press Enter

Make sure Document type SA allows Inter-company postings


1.2 Create Clearing G/L account in both company codes in FS00

Create below G/L accounts in respective company codes


1.3 Prepare Cross company code Transactions

Via Menus

IMG –> Financial Accounting –> General Ledger Accounting–> Business transactions–> Prepare cross-company code transactions

Via Transaction Code



   Provide below details and save Click on Save


Note :Alternatively, you can use Customer and vendor Posting Keys and give Inter-company Customer and Vendor numbers

1.4 Prepare Cross company code for Manual Payments

Via Menus

IMG –>Financial Accounting –>Accounts Receivables and Payables –> Business transactions–> Outgoing payments –> Manual Outgoing payments–>Prepare Cross Company code for manual payments

Via Transaction Code


Click on New Entries


Click on Save

1.5 Prepare Cross company code for Automatic Payments

Via Menus

IMG–> Financial Accounting–> Accounts Receivables and Payables–> Business transactions –> Outgoing payments–> Automatic Outgoing payments –>Payment method/Bank Selection for Payment Program–> setup all company codes for payment transactions

Via Transaction Code


Select company code 1011 (second created Company code) and give below details:


Click on Save

1.6 Post a cross company transaction

Via Menus

Accounting –> Financial Accounting–> Accounts Payables –> Document Entry     —-> Invoice

Via Transaction Code


Provide below details


Make sure to use co code 1009 on the header and co code 1011 on the line item.

Select Simulate and then Save


Click on Continue. Cross Company code document is posted.

To Display the cross company Document

Via Menus

Accounting à Financial Accounting –> General Ledger–> Documentà Cross Company code transaction   –>Display

Via Transaction Code


Provide Cross company code document number or select from document list


Press Enter


Other Cross Company transactions i.e. Change/Display Reverse Cross Company document


1.7 Process Manual payment on behalf of other company code

Via Menus

Accounting –> Financial Accounting –> Accounts Payable –> Outgoing Payment –> Post

Via Transaction Code


Prerequisite: Make sure that there are some open items for a vendor in company code 1011 or process a vendor invoice in 1011 using FB60/F-43


Go to F-53 and provide the below details


Click on Process Open Items and Select the invoice to be paid




Note : Alternatively, you can run Automatic Payment Program (F110) as well.

Hope this document helps

Best Regards ,

Venkat Emani

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      Author's profile photo Former Member
      Former Member

      Dear Venkat,

      Is there a way to copy an intercompany entry that will copy both sides of the entry - not just the intercompany account.


      Original Entered Data:

      Company Code 2004  Account  #

      Company Code 1300  Account #


      Posted Data:

      Company Code 2004 Account #

      Company Code 2004 Intercompany Account


      Company Code1300 Account #

      Company Code 1300 Intercompany Account


      Copy Intercompany Transaction:

      Company Code 2004  Account  #

      Company Code 1300  Account #


      Thank you!

      Author's profile photo AUSTIN STEYN



      Thank you for the informative inter-company document. It covers all aspects except New G/L. From a CO perspective could you explain the approach that is used to derive the Profit center for the Invoice Scenario that you described?

      The basic concept is that the Profit center used '(default from Cost Center) is extended across both company codes, but what if each company code used independent profit centers? Is partner profit center used? Substitution, CO derivation? Which is the best solution? How is this handled?


      Many thanks!


      Author's profile photo Former Member
      Former Member

      thanks for the informative information.

      But how do ensure that both items are cleared suing automatic payment.


      Author's profile photo Muhammad Arif Billah
      Muhammad Arif Billah


      Very informative.

      But, what if the New GL is active?

      How do we handle this in CO.



      Author's profile photo rafi d
      rafi d

      Thank you so much Pro

      Author's profile photo Hari Krishna Prasad Lalam
      Hari Krishna Prasad Lalam

      Hi Check last F-53 transaction wrong, because after outgoing payment those entries need to be cleared that means debit and credit should be same. in the above case not like that.outgoing payment should be done above case from company code 1011.

      Author's profile photo Kundan Kumar
      Kundan Kumar

      Hi Venkat,

      very nice explaination.

      I have a query,

      How to clear the open item of both clearing GL ?

      Author's profile photo Mukesh Sharma
      Mukesh Sharma

      Hi Kundan,

      To clear open items in inter-company G/L there is no automatic program like F.13 but you can do clearing manually with F-03 by selecting the other inter-company G/L with "Select More" in Edit option.

      We created custom program so as to automate this and also create your own rules for a customer.





      Author's profile photo Pankaj Adhikari
      Pankaj Adhikari

      Hi Mukesh

      Can you pls advice on how did you automated clearing of open items in Intercompany G/L postings?



      Author's profile photo Moin Basha Abdul
      Moin Basha Abdul


      Nice document.
      And I would like to know on automatic determination of SGTXT (Short Text)
      for Automatic derived InterCo clearing Accounts G/Ls Line Items
      Here, In above screen shots used two clearing interco GLs
      1) 200195 - Clearing Acct-1011
      2) 200196 - Clearing Acct-1009

      How to get automatic text which was used for G/L-900000 and 400303 line item text to interco line items text

      Please help me in this. Thanks.


      Author's profile photo Sanjai Babu
      Sanjai Babu

      Hi Venkat ,


      Its  very informative document.. Appreciate for sharing.

      Can you share your inputs -  Profit Center Substitution - Cross Company AP Payments when F110 is use and sending company profit center to be substituted in paying company documents

      Can the sending company payment document's  profit center ( Say 2000)  be substituted in paying company payment document. Can you share your inputs

      * NEW GL is not active  and in paying company books - a separate payment document for the sending company is generated .





      Author's profile photo Himatsingka Seide Limited
      Himatsingka Seide Limited

      very good document

      Author's profile photo CA Zunaid Hingora
      CA Zunaid Hingora

      THank you so much for this blog. i was able to resolve my issue due to this. keep writing.

      Author's profile photo Nirit Moses
      Nirit Moses

      Thanks for explanation.

      How about payment for another company code, which is in another country, and another company currency, will it work the same?