Intercompany transactions in SAP AP / AR : Cross Company Code Transaction

Intercompany transactions in SAP AP / AR : Cross Company Code Transaction

An intercompany transaction involves a number of firms. A separate document with its own document number will be posted in each of the company codes by the system automatically. Individual documents are linked together by a common code number across companies. So that each document is balanced, the system generates automatic line items (receivables and payables arising from company codes).

Company One

Dr.            Expense / Balance Sheet account for Company One

    CR.       Intercompany AP

Company Two

DR.             Intercompany AR

    CR.       Expenses / Balance Sheet account for Company Two

There will be different general accounts for each branch's AP and AR so that they can keep track of their debits and credits separately.

In this case, it will only be a financial transaction. Postings between companies in Logistics will be made automatically in the system.

The following is the procedure for posting inter-company transactions.

1. The first entry has been parked.

To view the document, the other branch is notified via email.

When the transaction is approved, the parked document is posted to both companies' general ledgers. Using the US dollar as the base currency, it will be the company that receives revenue that will be responsible for entering the data.