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

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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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

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

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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:

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

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

Click on Continue. Cross Company code document is posted.

To Display the cross company Document
Via Menus Accounting à Financial Accounting –> General Ledger–> Documentà Cross Company code
transaction –>Display

Via Transaction Code

FBU3
Provide Cross company code document number or select from document list

Press Enter

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

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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

Go to F-53 and provide the below details

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

Document–>Simulate–>Save

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

Hope this document helps

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SAP Service Order Process
The SAP Sales & Distribution module allows a company to record sales of services in the system.
Services may be offered alone, as an add-on to a product, or as an after-sale service package. The
method for recording the service is known as the SAP service order process. In this tutorial, we offer
a deep dive in the recording and managing of this process.

To illustrate service orders, we will walk through the full order to cash cycle as it relates to the SAP
service order process. This includes the following steps:

1. Create Service Material Master

2. Create Service Price Condition
3. Process Sales Order
4. Execute Billing

Create Service Material Master

For our example, let’s imagine that we are going to offer a repair service to a customer for a
previously purchased product. To initiate the SAP service order process, we must first create a
service material master record which is not relevant for delivery. Sale of services will, by nature, not
require delivery as services are intangible.

Logistics > Sales and Distribution > Master Data > Products > Material > Other Material >
Menu path
Create

Transaction
MM01 – Create
code

In the initial screen of transaction code MM01, select a service-related industry sector and material
type. In our example, we selected the industry sector 3 – Service Provider and the material
type DIEN – Service, as shown below:

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Create Material Initial Screen

Press Enter and select the relevant views for this material.

Select Material Views

Press Enter again and enter the appropriate organizational levels for this material.
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 Enter
Material Organizational Levels

Press Enter once more to proceed with creating the material master record. Enter the required
master data fields, taking care to include the following information:

1. Description of the service

2. Base unit of measure as Hours or other service-relevant unit on the Basic data 1, Sales: sales org. 1,
and Sales: General/Plant tabs
3. Item category group as LEIS – Service or delivery on the Basic data 1 and Sales: sales org. 2 tabs

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Enter Material Data

Once all data is entered, hit Enter then Save . The material will be saved with a confirmation

message:

Create Service Price Condition

Next we maintain the pricing relevant to the service in the pricing condition master record.

Logistics > Sales and Distribution > Master Data > Conditions > Select Using
Menu path
Condition Type > Create

Transaction code VK11 – Create

On the initial screen of transaction code VK11 enter the standard price condition type PR00.
Hit Enter to continue. Select the radial button next to the key combination that relates to the way you
want to maintain the condition record. These combinations are customizable. In our example, we
have selected Customer/material with release status as shown below:

Create Condition Initial Screen

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Press Enter to create the service condition record. Enter the following information:

1. Sales organization
2. Distribution channel
3. Customer
4. Service material created previously as line item
5. Hourly rate or rate per service unit
6. Validity dates for price of service

Create Service Pricing Condition

Hit Save . The pricing condition will be saved with a confirmation

message:

Process Sales Order

Now you are ready to post the sales order as the next step in the SAP service order process. Execute
transaction code VA01. On the initial screen, enter your chosen order type. In our example, we
use ZDEM as demonstrated below:

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Create Sales Order Initial Screen

Press Enter to create the sales order. Enter sales order credentials with the service material you
created in the first step. Take note of the item category. This field is populated as a result of the sales
document type and item category group combination. This particular combination is configured to
produce the item category TAD – Service as shown below. This item category is not relevant for
delivery, as we shall see in the next step.

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Create Sales Order

Hit Save to post the sales order. The sales order will be saved with a confirmation message:

Attempt Delivery Creation

Since the sales order contains a service material which is intangible in nature and can be billed
directly, let’s see what happens when we try to create a delivery document against this sales order.
Execute transaction code VL01N to create the delivery. Enter the shipping point and the number of
the sales order you just created.

Create
Delivery Initial Screen

Press Enter to proceed to delivery document creation. The system displays an error message that
the sales order has no items relevant for delivery, as displayed below:

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 Not
Relevant for Delivery Message

Executing Billing
Finally, billing can be executed for the sale of services. Execute transaction code VF01 to create the
billing document. Enter the sales order number and press Enter to create the billing document.

Create Billing Document Initial Screen

The services and quantities from the sales order will be displayed.
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Create Billing Document

Hit Save to post the billing document, print the output, and post the accounting document. The

billing document is saved with a confirmation message:

Let’s look at the newly created billing and accounting documents. You can see the linkage between
the sales order, billing document and accounting document as shown below:

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Sales Document Flow

Double click on the accounting document line to see the details of the financial posting. The billing
has effectively debited the customer and credited sales revenues, as demonstrated below:

Accounting
Document for Sale of Services

—Did you like this tutorial? Have any questions or comments? We would love to hear your feedback
in the comments section below. It’d be a big help for us, and hopefully it’s something we can address
for you in improvement of our free SAP SD tutorials.

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