In this blog, we will understand what is Cross Company Code Posting & how to use Cross Company Code Posting functionality in SAP.
In Cross Company Code transactions more than 2 company codes are involved. In this type of transactions one company code perform activities on the behalf of another company code.
Example:
Let assume Company Code SF01 booking Vendor Invoices on behalf of Company code ABCS.
This will generate Accounting entries as follows:
Expenses A/c ……. DR ABCS
To Accounts Payable … CR SF01
In the above posting, Debit & Credit line item are not becoming Zero balance for both companies hence we need to create Intercompany Receivables & Intercompany Payables GLs and assign in transaction OBYA
2008 GL code created as Intercompany Receivables in company code SF01 & 900501 GL code created as Intercompany Payables in company code ABCS
In our example, Expenses are related to ABCS company code hence payable liability will generate in Company Code ABCS hence Intercompany payable GL created against ABCS company code. In case of SF01, It will receive expenses amount to pay from company code ABCS hence Intercompany Receivables is created in company code SF01.
Intercompany GL accounts are Clearing Account & will generate below accounting entry in the system.
As shown below, based on maintained configuration system will post below accounting posting.
Cross Company Code Document Number
Cross company code postings generate three Document number for 1 business transaction.
1. Document Number gets generated in company code SF01
2. Document Number gets generated in company code ABCS
3. Cross Company Code Document Number
The document number of the Cross Company code transactions is the combination of
1. the document number of first company code,
2. the first company code number,
3. and last 2 digit of the current fiscal year.
For video explanation, please refer to below video
Regards, Akshay
For my law dissertatio 2023, I studied SAP Cross Company Code postings in detail; an issue I felt was particularly applicable to corporate law in any company worldwide. Because these facilitate smooth transactions between diverse company codes under one single enterprise, they are relevant mainly in multinational corporations wherein rigid compliance and transparency prevail. How such postings aligned themselves within the legal context with further regard to financial transparency throughout the borders was considered in my research work.
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Excellent blog, worth a discussion on how we make it easier and possibly more flexible with different processes
Nice Blog. Thanks for sharing.