
Intercompany Financial Posting and Payment on Behalf - Domestic (1GP)
In an intercompany posting across company codes, the system posts a separate document with its own document number in each of the company codes. Individual documents are linked by a common cross-company code number. The system generates line items to balance the debits and credits in each document.
The company codes involved must be part of a single legal entity for tax purposes if one of the following is true:
· The receivables or payables are posted in a different company code from the one in which the revenue or expenses (costs) are posted
· The business transaction is relevant to taxes
In addition, the customer can assign a paying company code to each company code. You can have one company code process payment transactions centrally for several company codes. however, these company codes must be in the same country and have the same local currency and parallel currencies. They must have the same settings for enhanced withholding tax functions (active or inactive).
Key Process Steps Covered
- Post general journal entries between two company codes
- Display journal entries for cross company codes
- Change journal entries for cross company codes
- Reverse journal entries for cross company codes
- Pay the supplier invoice for another company code (optional)
Benefits
- Allocate costs in General Ledger across company codes effectively
- Help to reduce the efforts of cross company code journal entry
- Manage the payment centrally and efficiently
Additional Information
- This scope item is excluded from the default activation
This is an intercompany relevant scope item and requires additional manual setup steps. If you requested this scope item, check the set-up instructions in the SAP Activate Roadmap.
Where is Intercompany Financial Posting and Payment on Behalf - Domestic(1GP) being used?
This Scope item is used in the following way:
- As a support function of Accounting and Financial Close within Finance Scope Item Group