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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      1. Narasimhulu Konnipati



        It seems, there is nothing to learn beyond this on this topic. You covered everything with screen shots which gives clear idea on cross company code transactions.


        Good work and we expect many more from you like this.


        If possible, please move it to ERP Financials forum which helps many users to learn the concept.





      2. surya kumar

        Hi Venkat Ji,


        Your document is as lucid as ever, I have learnt everything about cross company transaction from this Doc.


        Could you please clarify my doubt on the below


        in your document section 1.7

        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

        Vendor (900000 ) liability booked in cocd 1009 but while paying f-53 you showed as vendor 900010 from 1011, why it is required open items on cocd 1011?

        In advance thanks for your reply




  1. Godavari SAP

    Hello Venkat,


    Excellent documentation. Can you please let us know how Int Com Clearing happens in the month end?



    1. Venkat Emani Post author

      Thank you Godavari for the comments. In the month end we need to do two things though these may not be mandatory                                                                                         1) Intercompany reconciliation : To ensure balance is same in books of both the entities

      2) Intercompany Clearing : to make the balance zero. Normally Debit balance in one company code is equal to  Credit balance in other company code.  Pass a journal entry to off set this balance and clear it .

      Hope this answers your question, please rate this document if it is useful




      1. Jay F

        Hi Venkat, so in order to clear the IC AR/AP balances you would recommend a simple journal entry?

        Is there any other alternatives, may be more automated if possible?

        Please advise.




        1. Olfa HAFSA

          Salut Jerome,


          j’espere que tu vas bien  🙂


          There are multiple ways of clearing the AR/AP balances based on the client’s requirements:

          1- you can clear receivables and payables against each other to reduce the balance (if there are transaction both ways between the 2 internal partners). You might try to automate this with F.13, but in real life you will rarely be able to come to a zero balance. But you can manual clear the items by posting a residual amount.

          2- if there can be cash transfers between the 2 internal partners, then you can run a F110 which will automatically pick up the open items and close the balance by paying it (and will at the same time clear the open items).


          I hope this helps

          1. Jay F

            Hey Olfa, merci pour ton message!

            Yes the client requirement is more demanding than a simple GL clearing and we are moving towards the In-House Cash functionality in SAP to manage IC from a netting/clearing, payment hub, cash pooling, payment on behalf stand point.

            If you have feedback on IHC, I would take them!

  2. Raghav rao

    Hi Venkat,


    Its an Excellent documentation. Fully covered & very clear. Thanks for sharing.


    Thanking in Advance,


    1. surya kumar

      Hi Vinod,


      You clarified few of my quires in the past, I think Venkat ( author of this Doc) logged into SCN long back, so I wish to get clarified my doubt with you.


      in the above document section 1.7

      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

      Vendor (900000 ) liability booked in cocd 1009 but while paying f-53 the Doc showed as vendor 900010 from 1011, why it is required open items on cocd 1011?

      In advance thanks for your reply



      1. Sowmya Tiwary

        Hi Surya


        This is because, in step 1,5, we have specified that the sending company code is 1011 and the paying company code is 1009. So, the vendor open items exist in 1011 which is paid by 1009.




        1. surya kumar

          Hi Sowmya,


          Thanks for your reply, but we can see the posting done step 1.6 , vendor 900000 booked in cocd 1009, then why need to check other vendor account in cocd 1011?




  3. Chris Xu

    Dear Venkat,

         Very good article , but I am a bit lost from step 1.7


        Guess a none cross-company invoice,made by FB60, then I run F-53, select the invoice and clear it.

         I think it should be similar in the cross company scenario, I run F-53 directly and clear it, why should there be some open items in company code 1011?

    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″


    Thanks very much,

    Xu Chris

  4. Ranu Eugene

    Hi Venkat,

    Very useful document with detailed description with screen shots.

    Seriously appreciate your effort.


    Thanks a lot for sharing.


    Keep up the good work.


    Best of luck.





  5. N NK

    Hi Venkat,


    I have got the below error. Kindly help me to sort it out.


    A unique company code has not been assigned to company numberXXXXX

    Message no. GLT0001


    Thanks and Regards

    Naresh Nimmakayala

  6. Jai Reddy

    Thank you for the info.

    Is it possible to view the complete inter-company relationships via a report or tcode or something?


    My present client has about 90 company codes. they have Inter-company billing, cost allocation implemented.


    I am trying to understand the inter-company relationships between the companies, which company code is related to which and how?


    Please help.




    1. Hans Butenschøn

      Hi Jai,

      if what you ask is to see all OBYA-entries in a convenient form: extract all data from table T001U into a spreadsheet. You should get nice overview of which customer and vendor numbers are assigned to represent the company code combinations in intercompany postings.



      Hans B.

  7. Lynn Hamann

    When you use tcode FBU8 (reversal of cross company code document) SAP reverses each FI document individually and does not produce another corss company code document to link the reversal documents together?  Is there a way to configure SAP so that it does.  If not, what is the reason behind this?  Thanks.

    1. Syed Zia Abbas

      Dear Lynn


      Understand the system behavior. Basic idea is to reverse the document and post a reversal document. In case of InterCo document reversal, sometime, as per the option given by SAP, user may not want to reverse all documents in InterCo. So your logic will not work in such scenarios.



  8. Krishnaraj Kaliappan

    Are there any configuration is to be made to populate terms of payment and payment method in cross-company code document (vendor and customer line items)?  These should be defaulted from vendor and customer master respectively.

  9. Cecil D'Souza

    Venkat, Thank you for this brilliant document. I’ve learned a lot from many other people who have posted documents but this one stands out. It is basically idiot proof withe screenshots and clear explanations. Please post more like this so we can all learn.

  10. Judy Ortscheid

    I see that the invoice is to vendor 900000 in company 1009, the paying company.  The expense went to company 1011.


    The payment went to a different vendor in company 1011.


    I’m not sure I follow this one.  I would like to post the invoice to 1011 and have 1009 pay for it.


    Is it possible to post the invoice completely to 1011 and have 1009 pay for it? 



    Judy Ortscheid

  11. Thanh-Huyen Le

    Many thanks for the very useful documentation!

    When I follow the step 1.7 Process Manual Payment on behalf of other company code, I entered the vendor 9000010 from 1011, and the system gives me the error message:

    “The vendor 9000010” is not in the company code 1009.


    How comes that you can select the open items from vendor of another company code?


    Would be thankful if anyone can explain this to me.

  12. Shuang Wang

    Hello, could you please advise how you solve the authority design for cross-company? By your own developed enhancement? Thank you.


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