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Former Member

Cross-Company/Inter-company transactions

Several company codes are involved in a cross-company code transaction. In a cross-company code transaction, 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 automatically (receivables and payables arising between company codes) in order to balance the debits and credits in each document.

At times one company code makes purchases on behalf of another company code or makes payment on behalf of another company code. This needs entries to be passed in both company codes.

If cross company code settings are done, entry in one company code would generate the entry in the other company code also.

In this example, we have already two company codes 1009 and 1011 in country USA.

1.1 Check whether Doc type SA allows cross company postings

Via Menus

IMG(SPRO)-->Financial Accounting( new) --> Financial Accounting Global Settings (New) --> Document  --> Document Types --> Define Document types for Entry View   

Via Transaction Code


Select Position button and give Document type SA and press Enter

Make sure Document type SA allows Inter-company postings

1.2 Create Clearing G/L account in both company codes in FS00

Create below G/L accounts in respective company codes

1.3 Prepare Cross company code Transactions

Via Menus

IMG --> Financial Accounting --> General Ledger Accounting--> Business transactions--> Prepare cross-company code transactions

Via Transaction Code


   Provide below details and save Click on Save

Note :Alternatively, you can use Customer and vendor Posting Keys and give Inter-company Customer and Vendor numbers

1.4 Prepare Cross company code for Manual Payments

Via Menus

IMG -->Financial Accounting -->Accounts Receivables and Payables --> Business transactions--> Outgoing payments --> Manual Outgoing payments-->Prepare Cross Company code for manual payments

Via Transaction Code


Click on New Entries

Click on Save

1.5 Prepare Cross company code for Automatic Payments

Via Menus

IMG--> Financial Accounting--> Accounts Receivables and Payables--> Business transactions --> Outgoing payments--> Automatic Outgoing payments -->Payment method/Bank Selection for Payment Program--> setup all company codes for payment transactions

Via Transaction Code


Select company code 1011 (second created Company code) and give below details:

Click on Save

1.6 Post a cross company transaction

Via Menus

Accounting --> Financial Accounting--> Accounts Payables --> Document Entry     ----> Invoice

Via Transaction Code


Provide below details

Make sure to use co code 1009 on the header and co code 1011 on the line item.

Select Simulate and then Save

Click on Continue. Cross Company code document is posted.

To Display the cross company Document

Via Menus

Accounting à Financial Accounting --> General Ledger--> Documentà Cross Company code transaction   -->Display

Via Transaction Code


Provide Cross company code document number or select from document list

Press Enter

Other Cross Company transactions i.e. Change/Display Reverse Cross Company document

1.7 Process Manual payment on behalf of other company code

Via Menus

Accounting --> Financial Accounting --> Accounts Payable --> Outgoing Payment --> Post

Via Transaction Code


Prerequisite: Make sure that there are some open items for a vendor in company code 1011 or process a vendor invoice in 1011 using FB60/F-43

Go to F-53 and provide the below details

Click on Process Open Items and Select the invoice to be paid


Note : Alternatively, you can run Automatic Payment Program (F110) as well.

Hope this document helps

Best Regards ,

Venkat Emani

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