‘Intercompany Postings’ arise when a Company Code, for example, in a centralized procurement, pays for itself and on behalf of other Company Codes. When posted,the transaction results in three documents: (1) one for the paying Company Code (say, 1111) (2) one for the other Company Codes (say, 2222 and 4444), and (3) one for the intercompany transaction itself.
Before making intercompany transactions, you need to configure both ‘intercompany payables’ and ‘intercompany receivables.’ For each combination of these Company Codes, you will be required to maintain a ‘clearing account,’ which must be referenced in each of these Company Codes. You will also be able to configure whether you manually input the transaction number or allow the system to automatically assign the numbers. In the case of system-generated transaction numbers, this 16-digit number consists of (1) a 10-digit document number (1222222222) of the paying Company Code, followed by (2) 4 digits representing this paying Company Code (1111), and (3) 2 digits representing the last two digits of
the financial year (07) (for example, 1222222222111107).