Inter Company - Cross Company in SAP - SAP SIMPLE Docs

11/16/2017 Inter Company / Cross Company in SAP SAP SIMPLE Docs
SAP SIMPLE DOCS
Welcome those who have Passion for SAP
Category: Inter Company / Cross Company in SAP
Cross Company Code Clearing Accounting
Posted on April 18, 2013April 20, 2013 by Jayanth Maydipalle

Cross-Company code clearing accounts cab be G/L accounts as well as Customer and Vendor accounts.
We can enter cross-company code transactions in one step in the General Ledger, Accounts Receivable,
and Accounts Payable application components.
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.
You may use only one company code for ose ing entries. That is to say, regardless of the number of
company codes involved, you must make one of the following entries:
Only one company code on the debit side and the rest on the credit side.
Only one company code on the credit side and the rest on the debit side.
Example from the G/L View:

This supports for example, central procurement or central payment transactions. In central procurement,
one company code makes purchases for several others, while in central payment transactions, one
company code pays for the others.
In central purchasing, the invoice item is entered in one company code, and ose ing entries are made
in dierent company codes. The system generates a separate document for each company code. These
documents are marked as related by a shared transaction number.
Example from the Vendor View:

A vendor delivers equipment to one company code and other equipment to a second company code, but
sends only one invoice for all the equipment to the rst company code. You enter part of the expense
and post the invoice to the vendor account in the rst company code. When entering the invoice, you
have to post part of the costs in the second company code. Before you post the cross-company code
transaction, the system generates line items automatically (receivables and payables arising between
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company codes). If you enter a cross-company code transaction, the system posts a separate document
with its own document number in each of the company codes. Although the document numbers are
dierent, documents in both company codes have the same number for the cross-company code
transaction, the same posting date, the same document date, and the same document type.
Example from the Customer View:

A customer buys a product from one company code and installation and service from another company
code, but only receives one invoice for the product and installation from the rst company code. The rst
company code sends and posts the invoice, while the second company code withdraws part of the
revenue from the rst company code.
Postings for clearing between the company codes involved are made automatically. These clearing
entries identify the receivables or payables that arise between the company codes. Each company code-
specic document states a zero balance.
Cross Company Code Transactions in SAP FICO:
A Cross Company Code transaction involves two or more company codes in a single transaction in SAP
R3 FICO. This means that a cross company code transaction posts to accounts in two company codes.
The way SAP FICO works is that it posts a accounting document in each company code rather than one
single posting document. This is because in SAP FICO, one accounting document is always assigned to
one company code. A question naturally comes to mind as to how do the debits and credits match i.e.
how do accounts balance. To balance accounts, SAP FICO automatically generates line item entries
which are posted to a clearing account. Such clearing accounts are normally payables or receivable
accounts within company codes. SAP FICO tags cross company code transactions with a common cross
company code transaction number for reference. Some examples of cross company code transactions are:
1. Goods are sold by one company code to the another company code.
2. Goods are purchased by one company code from the other company code.
3. One company code makes a payment on behalf of another company code.
When we transfer balances from one company to another company then system will consider the gl
accounts in T.code OBYA for intercompany code postings. These accounts have debit balance in
company code will equal to credit balance in another company code. In a simple words
Transfering 1000 of vendor A balance to XYZ company code from ABC company code.
Vendor code Dr 1000
Intercompany clearing Cr 1000
this entry passess in company code ABC(here vendor balance will be zero after passing the above entry
Intercompany clearing Dr 1000
Vendor code Cr 1000
this entry passes in company code XYZ.
When the user pass the entry he will give one vendor (ABC company) Dr and vendor (XYZ company)
Cr. Back ground system will bring the intercompany clearing accounts.
Finally the balance of intercompany clearing Cr of ABC Company will get nullify by the intercompany
clearing Dr of XYZ Company.
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5 Comments
Inter Company Billing Automatic Posting To Vendor

Account (SAP-EDI)
Posted on April 1, 2013April 1, 2013 by Jayanth Maydipalle

Automatic posting to vendor account is done by EDI. In our case where both companies are proccessed
in the same system (& client), it is sucient to create Idoc.
This proccess requires several steps:
1. Creating a Customer to represent the receiving Company.

2. Creating a Vendor to represent the supplying company.
3. Creating a Port
4. Maintain an Output Type
5. Creating a Logical address
6. Creating a Partner Prole for both Customer & Vendor
7. The relevant MM customizing is maintained.
8. The relevant FI customizing is maintained.
1. Create a Customer to represent the receiving Company:

The customer has already been created (XD01) for the purpose of Inter company processing and entered
in the appropriate transaction in customizing
(Sales and Distribution Billing Intercompany Billing Dene Internal Customer Number By
Sales Organization).
Note: The cutomer has been created in the supplying company code. The organizational
Data in this case is:-
Supplying Company Code: 1180
Supplying Plant: 1180
Supplying Sales Organization: 1180
Supplying Distribution Channel: 01
Supplying Division: 00
Receiving Company Code: 3100
Customer representing the receiving Company Code: P3100
You enter the Customer that represents the supplying Sales Organization and not the one that represents
the receiving Sales Organization.
2. Creating a Vendor to represent the supplying company:

The Vendor is created with the standard transaction (XK01).
Note: The Vendor is created in the receiving Company Code. The organizational data in this case is the
same as above.
Vendor representing the supplying Company Code: P1180
NOTE: There is NO need to connect vendor to customer in the control screen.
3. Creating a Port:
Tools Business Communication IDoc Basis Idoc Port Denition
(T. Code: WE21)
Maintain Transactional RFC: (Choose Transactional RFC and press the create icon). A dialog box will
open asking whether you want the system to generate an automatic name or whether you wish to use
your own name.
Port name: Automatically generated
Version: 4.x
RFC destination: PLD (This was dened by the basis people).
(h ps://sapdocz.les.wordpress.com/2013/04/2013-04-01_114809.jpg)
4. Maintain Output type:

Output Type RD04 Invoice Receipt MM is a special function, responsible for the execution of the Idoc
and will be entered in the Partner Prole later on.
Output type RD04 is maintained:
Img: Sales and Distribution Basic functions Output control Output Determination Output
Determination Using the Condition Technique Maintain Output Determination for Billing
Documents Maintain Output
Types (T. Code V/40).
Details
Double click on Mail Title and Texts
Double click on Processing Routines
Double click on Partner Functions
Sales and Distribution Basic Functions Output Control Output Determination Output
Determination Using the Condition Technique Maintain Output Determination for Billing
Documents
Assign Output Types To Partner Functions
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What is a cross-company code transaction?

What is a cross-company code transaction?

How does SAP handle cross-company code transactions?

How does SAP handle cross-company code transactions?

11/16/2017 Inter Company / Cross Company in SAP SAP SIMPLE Docs

SAP SIMPLE DOCS

Welcome those who have Passion for SAP

Category: Inter Company / Cross Company in SAP

Cross Company Code Clearing Accounting

Posted on April 18, 2013April 20, 2013 by Jayanth Maydipalle

Example from the G/L View:

Example from the Vendor View:

Example from the Customer View:

Cross Company Code Transactions in SAP FICO:

3. One company code makes a payment on behalf of another company code.

Vendor code Dr 1000

Intercompany clearing Cr 1000

Intercompany clearing Dr 1000

Vendor code Cr 1000

this entry passes in company code XYZ.

The Park Chennai

Inter Company Billing Automatic Posting To Vendor

Posted on April 1, 2013April 1, 2013 by Jayanth Maydipalle

1. Creating a Customer to represent the receiving Company.

1. Create a Customer to represent the receiving Company:

2. Creating a Vendor to represent the supplying company:

4. Maintain Output type:

Double click on Mail Title and Texts

Double click on Processing Routines

Double click on Partner Functions

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