What is Cross Company Code Clearing Accounts in SAP?

Cross Company code clearing accounts cab be G/L accounts as well as Customer and Vendor accounts.  We can enter cross company code transactions in one step in the General Ledger, Accounts Receivable, and Accounts Payable application components.

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 paybles arising between company codes) in order to balance the debits and credits in each document.

You may use only one company code for offsetting entries. That is to say, regardless of the number of company codes involved, you must make one of the following entries:

What is Cross Company Code Clearing in SAP?

Only one company code on the debit side and the rest on the credit side.
Only one company code on the credit side and the rest on the debit side.

Example from the G/L View

This supports for example, central procurement or central payment transactions. In central procurement, one company code makes purchases for several others, while in central payment transactions, one company code pays for the others.

In central purchasing, the invoice item is entered in one company code, and offsetting entries are made in different company codes. The system generates a separate document for each company code. These documents are marked as related by a shared transaction number.

Example from the Vendor View

A vendor delivers equipment to one company code and other equipment to a second company code, but sends only one invoice for all the equipment to the first company code. You enter part of the expense and post the invoice to the vendor account in the first company code. When entering the invoice, you have to post part of the costs in the second company code. Before you post the cross-company code transaction, the system generates line items automatically (receivables and payables arising between company codes).

If you enter a cross company code transaction, the system posts a separate document with its own document number in each of the company codes. Although the document numbers are different, documents in both company codes have the same number for the cross company code transaction, the same posting date, the same document date, and the same document type.

Example from the Customer View

A customer buys a product from one company code and installation and service from another company code, but only receives one invoice for the product and installation from the first company code. The first company code sends and posts the invoice, while the second company code withdraws part of the revenue from the first company code.

Postings for clearing between the company codes involved are made automatically. These clearing entries identify the receivables or payables that arise between the company codes. Each company code-specific document states a zero balance.

Also See:  Payment Medium Workbench in SAP