What is Cross Company Code Transaction in SAP

A cross company code transaction posted to accounts in several company codes as it always involves two or more organization in one business transaction.

Example:

  • Once organization procure materials for another organization
  • Central payment system by which one organization makes payment for other organizations
  • One organization purchase goods from another organization

For these types of transaction SAP always post documents for each organization involved as one document is always get assigned to one company code. To have the balance between debit and credit automatic line items get posted to SAP System to the clearing account. 

One of the disadvantage of is, the tax not get distributed when you do a posting for expenses incurred by one organization to another. So if the transaction involves tax then these postings should be avoided.

Before a cross company code transaction, clearing accounts should be defined for all the organizations and those clearing account should be assigned to the configuration. Posting key must be assigned to the clearing accounts to identify their account type.

A complete audit trail is maintained by a cross company code transaction by assigning the organization, the first company code number and the fiscal year to the document number header section of the document.

To reverse it you need to choose the document > Cross Company Code Transaction > Reverse then put the document number to be reversed and post the transaction.

Path for creating a transaction: SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Prepare Cross Company Code Transactions

Path for Invoice Creation: SAP Menu > Accounting > Financial Accounting > Accounts Payable > Document Entry > Invoice

Path for displaying the transaction: SAP Menu > Accounting > Financial Accounting > Accounts Payable > Document > Cross Company Code Transaction > Display

One thought on “What is Cross Company Code Transaction in SAP

  1. P SRIDHAR RAJU

    content is very informative, it is very helpful for beginners like me. Please do continue this social useful work.

    Reply

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