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Former Member
Oct 09, 2008 at 05:47 PM

A/P F110 Payment via company code in a different country


The client is a service organization where the Vendor data is managed in the US company code (US01) and the Customer data in managed in a Swiss company code (CH02). Many of the customers could also provide services and the invoices are posted to vendor accounts in the US01 company code.

In the case where the vendor amount exceeds the customer amount, the customer/vendor has agreed that the client will pay the net amount and clear the net to the customer account.

Clearing between the customer and vendor in company codes in the same country and with the bank account managed in the same country works as expected.

The CH02 company code does not have a bank account of its own and therefore cannot make its own payments.

The problem that we encounter is that I cannot define (for F110 configuration) sending and paying company codes where the country assigned are different, e.g.;

- Sending company code: CH02

- Paying Company code: US01

When this is entered into the IMG configuration for "Automatic payments > Set Up All Company Codes for Payment Transactions" the error "Company code US90 is not permitted as the paying company code" (error code F3063) is issued. The detailed error description is:

"The paying company code and the company code on whose behalf the payment is being made must be in the same country, have the same local currency, and display the same currencies managed in parallel. The setting regarding extended withholding tax functions (active or not active) must also be identical for both company codes."

The initial design was to have the A/P and A/R in the CH02 company code but the payment via the US01 company code would not work. Having the vendor only in the US01 company code is a solution to this using an inter-company invoice posting. Using a work-around to clear the customer balance to the vendor account is not acceptable to the client.

The easy way out of this is to assign the CH02 company code to country code 'US', but this is not correct.

Is there a solution to making payments from company code US01 (as the paying company code) but including the customer items from a foreign company in the payment?