Intercompany Netting and Settlement process

[Former Member]

Hi Guys,

I am new to the intercompany transactions. Please anyone of you can explain or guide me to some documentation on what intercompany netting and settlement process means and how to do it...that would be great.

Thanks and Regards,

MS

[Former Member]

Well, what you are describing is the "cross company" posting procedure, which I believe has nothing to do with real "intercompany data processing".

What is needed is a solution which posts an outgoing Invoice (Intercompany AR) against a revenue account in one company code and also an incoming invoice (cost against Intercompany AP), and not going through a clearing account which in fact will never settle...

I am looking for a solution here as well.  I know that this can theoretically done via a real sales order which triggers billing and then an idoc which is automatically posted against a PO in the other entity... but I am looking for something which would work for manual FI invoices.

Appreciate any help here.

Br

joerg

[former_member182098]

Hello,

If you can let us know the business scenario and context in which you are asking, it would be better for us to explain in more detail.

However, you can go through the following just for your clarification.

You can post the cross company code postings even between two controlling areas. The system does not prevent to post documents between two company codes in two controlling area. Need not necessarily they should be under one operating concern. Provided you have to make sure that you have followed the following points:

In OBY6 - To company codes must be assigned to same Company, meaning that you mus thave created a Company and that company must have been assigned to these two company codes.

OBYA - You should maintain the clearing accounts in both the company codes. Meaning that you are posting one leg in one company code and the other leg in the other company. Therefore, it is required to have the missing legs in each company code.

Company Code1 - Posting Key 40 - Clearing Account

Company Code1 - Posting Key 50 - Clearing Account

Company Code2 - Positng Key 40 - Clearing Account

Company Code2 - Posting Key 50 - Clearing Account

OB08 - In case if the two company codes have different local (company code) currencies, you may maintain the exchange rates.

You can now go to F-02 and post a cross company code transaction giving the first leg in first company code and the second leg in second company code. Missing leg in the first company code will be posted to the GL Account mentioned in OBYA and the missing leg in the second company code will be posted to the GL Account mentioned in OBYA. That means you will have four line items overall.

The system will post three document.

Document 1 in First Company Code

Document 2 in Second Company Code

and

Document3 - Cross Company Code Document.

The cross company code document consists of the first company code document number plus company code plus last two digits of the fiscal year.

Hope this must have clarified your doubts.

Please let me know in case if you need further details.

Thanks,

Ravi

[Former Member]

Hi,

I am talking about the intercompany process related to the sales order and then intercompany billing.

Thanks and Regards,

MS