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Cross company payment

Former Member
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Dear Gurus,

I need one clarification regarding inter company payment.

1. My company code(1700) taking all invoices from c.code (1100) behalf of other vendors. It means all vendors they are sending invoices to 1100 c.code

At that time 1100 c.code passing entry.

01   Customer account(1700)  dr

31       to Vendor account            cr

In 1700 c.code books entry

  40  Expenses account dr

  31     to Vendor(1100) account  cr

Now, my question is Holding company code(1000)  is paying to 1100 c.code behalf of 1700.  

How we can clear in 1700 company code  liability(1100).and what is the entry?

Could you please advise me on this?



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Answers (2)

Answers (2)

Active Participant
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while processing payment you can select open items from other company code after you click on "process open items" enter company code 1100 and vendor you need to clear.

so, system will automatically post to intercompany clearing account.



Former Member
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Are you using F110 payment process to pay vendors?

Normally in situations like this you configure in F110 that your main company 1700 is the paying company code for vendor invoices on 1100.

So you post  a vendor invoice directly on 1110 and it looks like

CoCode: 1100

31 Vendor

40 Expense

Then F110 payment runs and posts a payment to the vendor on the company code 1700 and clears the vendor account on the company code 1100

CoCode: 1100

25 Vendor

31 Intercompany Vendor 1700

CoCode: 1700

01 Intercompany Customer 1100

50 Cash Account

The vendor line on the invoice is cleared by the payment document vendor line.

Intercompany Customer and Vendor are cleared through an Intercompany clearing process, which can be different by company . Some use automatic clearing F.13, some use direct settlement through the settings on the customer/ vendor master.