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Former Member

cross company code transcations

hi,

could anybody give the inputes of cross company code transcation.what is the cross company code transcations. when it is useful.where i can get configuration material.

thanks regards

Nagaraju

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Apr 11, 2007 at 05:07 AM

    Hi,

    In Tcode - OBYA, Enter the two companies and assign Debit and Credit GL a/cs for both Companies.

    Cross company code transaction means transaction between 2 co codes

    eg: A and B are 2 co codes, A bearing the expenses of B, So entry is

    Dr A's Bank a/c

    Cr B's Expense a/c

    While posting a transactiion in F-02 first Dr A data and in the second line item, Cr select other co code.

    Rgds

    sunfico

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 11, 2007 at 05:09 AM

    Cross company code transaction is to post transactions across company codes.

    Config is only just two steps (if we take simple business scenario and are as below:-

    <b>Prepare Cross-Company Code Manual Payments</b> under ARAP

    In this step, you specify which company codes are processed by another company code for manual payments and other clearing procedures.

    Note

    You can differentiate this specification by clearing procedure. As a result, you can select different combinations for incoming payments, outgoing payments and other clearing entries. Your specification only applies to the manual processing of open items. Specifications for the payment program are made separately.

    Requirements

    You have defined the clearing accounts for cross-company code transactions.

    Activities

    If you want to clear cross-company code payments manually, specify which company codes are to be processed by another company code.

    <b>Prepare Cross-Company Code Transactions</b>In this activity you define the accounts for the clearing entries the system makes when posting cross-company code transactions. These clearing entries represent the receivables and payables between company codes which result from central purchasing or payment.

    You can specify G/L accounts as well as customer and vendor accounts for clearing between company codes.

    Example

    Cross-company code postings occur when purchasing or payment is made centrally for several company codes. They can also occur if one of the company codes in the corporate group is a manufacturer and another is a merchandiser. If, in this case, the manufacturer's products are sold to the merchandiser first and then to customers, items are posted across company codes, that is, between the "merchandising" company code and the "manufacturing" company code. The system creates two documents for these transactions; one for each company code.

    Customers sometimes make payment to the wrong company in a group of affiliated companies. You can use cross-company code entry to minimize the number of entries for posting this payment. In doing so, you debit your bank account (company code 1) and credit the customer account (company code 2), and the system automatically generates clearing entries between both company codes.

    Caution

    If the company code for which you are posting these items is an external one, then you can specify only G/L accounts as the clearing accounts.

    Note

    The company codes involved must be part of a single legal entity for tax purposes if you are posting invoices to which each of the following points apply:

    The receivables or payables are posted in a different company code from the one in which the revenue or expenses (costs) are posted.

    The business transaction is relevant to taxes.

    If a single legal entity exists for tax purposes, then only one of the company codes creates the advance tax return for every company code involved in the cross-company code postings.

    Activities

    1. Enter the account numbers for the clearing entries for every company code pair that carries out purchasing or payment together.

    Note

    The required posting keys are already defined in the standard system. To display them, choose Goto -> Posting keys from the initial screen of the clearing accounts.

    2. Make sure that the accounts have been created.

    3. For cross-company code payment, you must also specify which company codes pay together.

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