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Apr 08, 2013 at 05:17 PM

intercompany transaction


Hi All,

I am facing one client requirement and don’t have any clue, please advise best possible way to meet client requirement.

Business purpose:

The plants are “A” and “B” (under diff co. codes) have begun shipping products to each other. They are using existing process used with other external customers and vendors. That is to say the buyer will issue a PO and the seller will issue a sales order with delivery and post goods issue. This results in an intercompany transaction that would normally be eliminated during consolidation. However, Client wants to avoid the elimination entry.

The normal accounting entries for these transactions are:

Billing entry (VF01):

DR Customer

CR Sales

Post goods issue entry: VL01N

DR Cost of goods sold

CR Inventory

Client is asking for these entries:

Billing entry: VF01

DR Customer

CR Inter Company Clearing

Post goods issue entry: VL01N

DR Inter Company Clearing.

CR Inventory

The object is to have these entries be self-eliminating with no impact on profit.

These transactions are only for specific customers.

Please advise your thoughts on this requirement. If any one comes across with this requirement, kindly provide step by step.