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
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Via Menus |
IMG(SPRO)–>Financial Accounting( new) –> Financial Accounting Global Settings (New) –> Document –> Document Types –> Define Document types for Entry View |
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Via Transaction Code |
OBA7 |
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
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Via Menus |
IMG –> Financial Accounting –> General Ledger Accounting–> Business transactions–> Prepare cross-company code transactions |
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Via Transaction Code |
OBYA |
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
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Via Menus |
IMG –>Financial Accounting –>Accounts Receivables and Payables –> Business transactions–> Outgoing payments –> Manual Outgoing payments–>Prepare Cross Company code for manual payments |
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Via Transaction Code |
OB60 |
Click on New Entries
Click on Save
1.5 Prepare Cross company code for Automatic Payments
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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 |
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Via Transaction Code |
FBZP |
Select company code 1011 (second created Company code) and give below details:
Click on Save
1.6 Post a cross company transaction
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Via Menus |
Accounting –> Financial Accounting–> Accounts Payables –> Document Entry —-> Invoice |
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Via Transaction Code |
FB60 |
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
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Via Menus |
Accounting à Financial Accounting –> General Ledger–> Documentà Cross Company code transaction –>Display |
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Via Transaction Code |
FBU3 |
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
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Via Menus |
Accounting –> Financial Accounting –> Accounts Payable –> Outgoing Payment –> Post |
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Via Transaction Code |
F-53 |
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
Document–>Simulate–>Save
Note : Alternatively, you can run Automatic Payment Program (F110) as well.
Hope this document helps
Best Regards ,
Venkat Emani
Dear Venkat,
Is there a way to copy an intercompany entry that will copy both sides of the entry - not just the intercompany account.
Example:
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!
Hi,
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!
thanks for the informative information.
But how do ensure that both items are cleared suing automatic payment.
Hi,
Very informative.
But, what if the New GL is active?
How do we handle this in CO.
Br,
Thank you so much Pro
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.
Hi Venkat,
very nice explaination.
I have a query,
How to clear the open item of both clearing GL ?
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.
Regards,
Mukesh
Hi Mukesh
Can you pls advice on how did you automated clearing of open items in Intercompany G/L postings?
Regards
Pankaj
Hi,
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.
Regards,
Moin
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 .
Thanks
Sanjai
very good document
THank you so much for this blog. i was able to resolve my issue due to this. keep writing.
Thanks for explanation.
How about payment for another company code, which is in another country, and another company currency, will it work the same?