Wednesday, July 30, 2008

Clearing Open Items Across Company Codes in SAP FICO

You can enter cross-company code transactions in one step in the General Ledger, Accounts Receivable, and Accounts Payable application components. This function would be used, for instance, for centralized procurement or payment.

If all payments are made centrally, each company code enters its own invoices separately, while one company code pays the invoices centrally. When clearing the invoice open items, the system makes clearing entries between the company codes participating in the clearing procedure. This clears receivables and payables that exist between the company codes participating in the centralized payment process.

A separate document is created for each company code and assigned a common transaction number so that you can easily track the transaction.

The following defines the prerequisites for centralized payment transactions, if carried out manually. See also in the FI - Accounts Receivable and Accounts Payable documentation, the section on payments.

Company code 0001 processes its own incoming payments as well as those for company code 0002. The invoices are entered in the individual company codes.

The following invoices were posted in the illustration above:

  1. An invoice for 100 USD was entered for company code 0001, and an invoice for 2,000 USD was entered for company code 0002.
  2. Once payment is received, you clear the open items by choosing them from the customer account in company code 0001, since this company code is also responsible for company code 0002. The open items from company code 0002 are automatically selected for processing as well.

  3. You clear the receivables for company codes 0001 and 0002 in the customer account. The payment for 2,100 USD is posted in company code 0001.
  4. For each company code, the system creates clearing entries for amounts that are outstanding between the company codes and the company code-specific documents balance to zero.

See also:

Prerequisites for Clearing Across Company Codes

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