Cross-Company/ /Inter-company Customization & Transaction

Overview on Cross-Company Code

The need for cross-company code postings arises in two situations first, when one of the company codes acts as the centralized purchasing or paying entity on behalf of other company codes and second, when one of the company codes sells the products manufactured by the other company codes.

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.

Even 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.

Note

The company codes involved must be part of a single legal entity for tax purposes if you are posting invoices to which each of the following points apply:

• The receivables or payables are posted in a different company code from the one in which the revenue or expenses (costs) are posted.
• The business transaction is relevant to taxes.

If a single legal entity exists for tax purposes, then only one of the company codes creates the advance tax return for every company code involved in the cross-company code postings.

Configuration Steps:

     1. Doc type for cross company postings

     Document types are used to differentiate the business transactions and to manage how document are stored.

     Check the document type to be used for Inter-company postings. Example: SA However, you can also create a Z doc type as well.

     It’s better to have a Z Document Type for cross-company code transaction.

     Click on New Entries

     Click on SAVE

     2. Create G/L A/C in both company codes

We need to define the clearing accounts for the clearing entries the system makes when posting cross-company code transactions.

Caution: If the company code for which you are posting these items is an external one, then you can specify only G/L accounts as the clearing accounts.

      Create G/L accounts as below in respective company codes.

     Define G/L A/C No. 102290; under Co. Code: 1000

     Click on Save

     Similarly, Define G/L A/C No. 102291; under Co. Code: 1200

     Click on Save

     3. Prepare cross-company code transactions

    Here, you define accounts for the clearing entries which the system makes when posting cross-company code transactions. These clearing entries     represent the receivables and payables between company codes which result from central purchasing or payment.

     Click on Green tick Mark or Enter

     Maintain the parameters as below:

     Click on Save. 

     Repeat the steps for the other pair of company codes. You may use the List button to see all such company code pairs for which you have maintained      the settings.

     You can specify G/L accounts as well as Vendor and customer accounts for clearing between company codes. However, if you are posting these items

     to an external company code, then you can specify only G/L accounts as the clearing accounts.

     4. Prepare Cross Company code for manual payments

   Here, you enter the company codes which carry out manual payments and other clearing procedures for other company codes.

    Click on New Entries

     AUSGZAHL refers to Outgoing Payment.

     Click on Save.

     5. Prepare Cross company code for Automatic Payments

    Here, you make the settings for automatic outgoing payments to be processed by F110.

     Click on

     Click on New Entries and Maintain the below details respectively.

     Click on Save.

     Unit-Testing for the above configuration:

     1. Posting G/L Document with T-Code: F-02

     Company Code 1000 making payment for expenses on behalf of Company Code - 1200

     Enter

     Enter

    Press Enter and Simulate the document by click on to Document ˃ Simulate.

     Click to post the document.

     Here system generates a separate document number for each Company Code and a Cross-Co. code no (common document no for both Company           Codes) for both Company Codes.

     2. Post cross company code transaction – FB60

Make sure to use co code 1200 on the header and co code 1000 on the line item.

     Simulate document and then save.

     3. Change/ Display the cross company Document – FBU2/FBU3

     4. Reverse Cross Company Document – FBU8

     5. Manual Payment on behalf of other company code

Note: Alternatively, you can run Automatic Payment Program (F110) as well for that you need to customize step5.Prepare Cross company

code for Automatic Payments as covered above.

6. Display Line Item – FBL3N

       7. Display Vendor Line Item – FBL1N