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author's profile photo Former Member
Former Member

Automatically clear the open items for a GL account cross company codes

Hi FICO experts,

Can anyone help me on the following issue urgently?

There are journal entries posted to same GL account with different company code. Is there any way to automatically clear the open items sitting in the GL account in company code A to against the open items for the same GL account in company code B.

The example is below:

Journal in company code A

Dr. 840410 $100

Cr. 111300 $100

Journal in company code B

Dr. 111301 $100

Cr. 840410 $100

Now I want to automatically clear account 840410 by using assignment or text in the journal entry.

It will be highly appreciated for any instructions.

Adele

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jul 05, 2007 at 06:56 AM

    Hello Adele Wang,

    You can enter cross-company code transactions in one step in the General Ledger, Accounts Receivable, and Accounts Payable application components. This function would be used, for example, for centralized procurement or payment.

    Integration:For centralized payments, each individual company code enters its own invoices separately, while a central company code pays them. When you are clearing open items, the system makes clearing entries between the company codes participating in the clearing procedure. These clearing entries represent the receivables and payables that exist between the company codes in centralized payment.

    Prerequisites:You have specified which company codes are to be processed via a single company code. In this specification, you can distinguish between clearing transactions. You can therefore have different combinations of company codes for incoming and outgoing payments.

    You have specified the clearing accounts that record the receivables and payables between the individual company codes. The system posts to these accounts automatically when clearing the open items.

    You need to make the required settings in the activity Prepare Cross-Company Code Manual Payments in Customizing for Financial Accounting (Accounts Receivable and Accounts Payable->Business Transactions->Outgoing Payments->Manual Outgoing Payments).

    Features:For each company code, the system generates a separate clearing document. A joint transaction number marks these documents as belonging together.

    Example:For a clearing transaction (incoming payment, outgoing payment), you have agreed in Customizing that if company code 0001 is specified, open items are also selected from other company codes (0002 and 0003).

    Hope I had been able to help you. Please assign points.

    Rgds

    manish

    Clearing can then also be carried out if the account to be cleared has not been created in company code 0001. As long as no items have to be posted to this account in company code 0001, it is not necessary to create a master record for the account in company code 0001.

    See also:

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 05, 2007 at 01:12 PM

    Dear Adele

    When you are doing cross company code transactions, there must be customer and vendor accounts in each company code of another company code.

    In the master data of customer/vendor, you need to give clear with vendor/customer check box by giving customer/vendor codes.

    If once complete these configurations and try, i think it will clear all cross company code transactions automatically.

    PLEASE ASSIGN POINTS IF HELPFUL.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 13, 2007 at 06:33 AM

    Hi Manish & Sarma,

    Many thanks for the answers, but my question was how to automatically clear the manual journals that have been posted to same GL account number but in different company codes. Those manual journals have been entered in each company code separately and has nothing to do with cross company code transactions.

    After some discussion, I think this requirement can not be done due to each company code is a separately entity to produce financial statements. Any way, thanks for the efforts and help.

    Adele

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