Cross-Company/Inter-company transactions

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

OBA7

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

Via Transaction Code

OBYA

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

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

OB60

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

FBZP

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

Via Transaction Code

FB60

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

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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

Via Transaction Code

FBU3

Provide Cross company code document number or select from document list

Press Enter

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Cross-Company/Inter-company transactions

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

F-53

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

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Cross-Company/Inter-company transactions

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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