Question on APP

[Former Member]

Dear Friends:

In APP, you have setup two Company Codes A and B. A is the Paying Company Code for A & B. When A pays for the Company Code B, what are the accounting entries in A & B? Thank you.

[Former Member · Accepted solution]

Hi

In A's case normal entries will be passed like vendor debit and bank credit

In B' case ie. A is paying on behalf of B then

A's Bank will be credited

B's Vendor will be debited

clearing account in A' debit

clearing account in B Credit

thus payable to A will be booked in B

Settings for this will be done in FBKP

Select Automatic postings tab, then select company code clearings and make settings for A and B

Hope this helps

pushkaraj