SAP Cross Company Code Postings

In this blog, we will understand what is Cross Company Code Posting & how to use Cross Company Code Posting functionality in SAP.

In Cross Company Code transactions more than 2 company codes are involved. In this type of transactions one company code perform activities on the behalf of another company code.

Example:

Let assume Company Code SF01 booking Vendor Invoices on behalf of Company code ABCS.

This will generate Accounting entries as follows:

Expenses A/c ……. DR ABCS

To Accounts Payable … CR SF01



In the above posting, Debit & Credit line item are not becoming Zero balance for both companies hence we need to create Intercompany Receivables & Intercompany Payables GLs and assign in transaction OBYA

2008 GL code created as Intercompany Receivables in company code SF01 & 900501 GL code created as Intercompany Payables in company code ABCS






In our example, Expenses are related to ABCS company code hence payable liability will generate in Company Code ABCS hence Intercompany payable GL created against ABCS company code. In case of SF01, It will receive expenses amount to pay from company code ABCS hence Intercompany Receivables is created in company code SF01.

Intercompany GL accounts are Clearing Account & will generate below accounting entry in the system.





As shown below, based on maintained configuration system will post below accounting posting.

Cross Company Code Document Number

Cross company code postings generate three Document number for 1 business transaction.

1. Document Number gets generated in company code SF01

2. Document Number gets generated in company code ABCS

3. Cross Company Code Document Number








The document number of the Cross Company code transactions is the combination of

1. the document number of first company code,
2. the first company code number,
3. and last 2 digit of the current fiscal year.

Read more blogs: https://www.gauravconsulting.com/post/sap-cross-company-code-postings


For video explanation, please refer to below video


https://www.youtube.com/watch?v=m-UZzFLL0wc