Cross Company Code transactions 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.
Cross Company Code Transactions
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
Inter company 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
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.
Also See: Cross Company code Clearing Accounts in SAP
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