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Jul 01, 2020 at 09:38 AM

Intercompany processing

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I’d like to know what’s the best way to handle intercompany transactions in this scenario.


Company A handles procurement on behalf of all other entities in the group. But the entities require to take up their respective costs eventually. POs and contracts are raised in company A and recorded in company A’s general ledger, then interco bills are raised to the respective entities (who then book in their costs)


The sheer administrative effort of raising and approving bills coming from intercompany is tremendous due to volume. Not to mention the reconciliation efforts required between intercompany books.


would like to know what’s the best practices out there for similar intercompany transactions and processes using SAP. Thanks In advance!