Cross-Company/Inter-company transactions

Cross-Company/Inter-company transactions

Several company codes are involved in a cross-company code transaction. In a crosscompany 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
OBA7

Via Transaction Code

Select Position button and give Document type SA and press Enter Make sure Document type SA allows Inter-company postings

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Cross-Company/Inter-company transactions

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

Create below G/L accounts in respective company codes

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Cross-Company/Inter-company transactions

1.3 Prepare Cross company code Transactions

Via Menus

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

Via Transaction Code

Provide below details and save Click on Save

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Cross-Company/Inter-company transactions

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

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Cross-Company/Inter-company transactions

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
OB60

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
FBZP

Via Transaction Code

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

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Cross-Company/Inter-company transactions

Click on Save

1.6 Post a cross company transaction

Via Menus

Accounting --> Financial Accounting--> Accounts Payables --> Document Entry Invoice FB60

---->

Via Transaction Code

Provide below details

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Cross-Company/Inter-company transactions

Make sure to use co code 1009 on the header and co code 1011 on the line item. Select Simulate and then Save

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Cross-Company/Inter-company transactions

Click on Continue. Cross Company code document is posted.

To Display the cross company Document

Via Menus

Accounting Financial Accounting --> General Ledger--> Document Cross Company code transaction -->Display
FBU3

Via Transaction Code

Provide Cross company code document number or select from document list

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Cross-Company/Inter-company transactions

Press Enter

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

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Cross-Company/Inter-company transactions

1.7 Process Manual payment on behalf of other company code

Via Menus

Accounting --> Financial Accounting --> Accounts Payable --> Outgoing Payment --> Post F-53

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

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Cross-Company/Inter-company transactions

Go to F-53 and provide the below details

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

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Cross-Company/Inter-company transactions

Document-->Simulate-->Save

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Cross-Company/Inter-company transactions

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

Hope this document helps

Best Regards , Venkat Emani

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Cross-Company/Inter-company transactions

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