Some important definitions in configuration are:

The process requires configuration of stock transport orders, inter-company pricing and billing. Stock Transport Order (STO) is a type of purchase order document that posts goods movements in sending and receiving plants while also accounting for receivables and payables in their respective company codes. The offsetting line items from inter-company clearing create a payable in 2000 and a receivable in 1000.Ĭross-company Stock Transfer with shipping and billing The goods receipt posted against the purchase order creates expense in 2000 but liability to pay vendor in 1000. In example shown, purchase order is in company code 1000 and the assigned cost center 2010 belongs to company code 2000 (other cost objects such as orders can also be used). In this process, a purchase order on a vendor is opened assigning cost center of another entity in the account assignment segment. In the accounting entry, there is a debit to expense account in 2000, a credit to vendor in 1000 and offsetting items inter-company vendor and customer accounts respectively.

In the example shown below, company code 1000 is posting a vendor invoice for an expense incurred in company code 2000. Cross-company code transaction in FIĬross-company code transaction (viewed from transaction code FBU3) is an accounting entry involving more than one company code. The company codes used share the same controlling area in these examples. Sensitive information had to be masked on screenshots. The document may not be comprehensive, uses simple & basic examples. The document is not describing detailed configuration behind these transactions or any valuations such as transfer pricing.

This is a high-level document that shows some cross company and inter-company postings. Many inter-company transactions may occur between difference entities (company codes) and SAP implementation should support such transactions and valuations. These company codes could be establishments in different geographies, countries or could be related parties or affiliates operating at different levels of integration of supply chain (to give some examples). Each legal entity could be a separate company code in SAP organization structure. To manage a complex business, often corporates incorporate multiple legal entities.

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