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

OBA7

Select Position button and give Document type SA and press Enter

Make sure Document type SA allows Inter-company postings

Doctype.jpg.png

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

Create below G/L accounts in respective company codes

GL.jpg

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

OBYA

CC.jpg

   Provide below details and save Click on Save

/wp-content/uploads/2013/05/crosscocode_212773.jpg

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

OB60

Click on New Entries

/wp-content/uploads/2013/05/manual_212777.jpg

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

FBZP

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

/wp-content/uploads/2013/05/fbzp_212778.jpg

Click on Save

1.6 Post a cross company transaction

Via Menus

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

Via Transaction Code

FB60

Provide below details

FB60.jpg

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

Select Simulate and then Save

CCDoc.jpg

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

FBU3

Provide Cross company code document number or select from document list

CCDoc.jpg

Press Enter

CCDoc.jpg

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

CCtcode.jpg

1.7 Process Manual payment on behalf of other company code

Via Menus

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

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

/wp-content/uploads/2013/05/fbl1n_212784.jpg

Go to F-53 and provide the below details

/wp-content/uploads/2013/05/f_53_212785.jpg

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

/wp-content/uploads/2013/05/f_53_2_212786.jpg

Document–>Simulate–>Save

CCDoc.jpg

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

Hope this document helps

Best Regards ,

Venkat Emani

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71 Comments

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  1. Katia Wojcik

    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!

    (0) 
  2. Austin Steyn

    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!

     

    (0) 

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