Intercompany settlement transactions – setup

To set up intercompany settlement in a single financial company structure:

Step 1. Create the intercompany ledger accounts

In the Chart of Accounts (tfgld0508m000) session, create these ledger accounts:

  • The interim intercompany clearing account.
  • The intercompany ledger accounts for each logistic company.

The ledger account type must be Balance Sheet.

Step 2. Define the business partner

In each logistic company, in the Business Partners (tccom4500m000) session define the other company as an affiliated company business partner. Define the business partner in the usual way. On the Enterprise Modeling tab, you must specify these details:

  • Select the Affiliated Company check box and enter the company number.
  • Select the Intercompany Settlement check box.
Step 3. Set up prices and surcharges

If you want to create the intercompany settlement transactions and you want to add surcharges, you can define a non-invoiced goods transfer relationship between the entities in the Enterprise Modeling Management module. You can specify the surcharge percentage in the Internal Trade Details (tcemm2151m000) session. The price origin must be Actual Costs.

Step 4. Define the business partner groups

In the financial company, create business partner groups for the internal business partners and the affiliated-company business partners that you defined in Step 1. This enables you to define separate ledger accounts for the transactions that take place inside your organization.

Use the Financial Business Partner Groups (tfacr0110m000) sessions of the Accounts Receivable and the Accounts Payable modules as applicable. The ledger account type must be Balance Sheet, or Profit & Loss.

Step 5. Set up the integration mapping scheme

In the Mapping Scheme (tfgld4573m000) session, set up the integration mapping scheme. On the Mapping Scheme Details tab, define the specific mapping details described below.

Integration Document Type = Purchase Order/Receipt

  • Debit
    Map to an Inventory Ledger account

For the credit side, define a mapping element with a high priority for the financial business partner group with these details:

  • Credit
    Financial Business Partner Group ACP = the affiliated-company business partner group that you defined in Step 4.
  • Map to a Balance Sheet type ledger account for inventory company clearing.

Integration Document Type = Sales Order/Revenue Analysis

For the debit side, define a mapping element with a high priority for the financial business partner group with these details:

  • Debit
    Financial Business Partner Group ACR = the affiliated-company business partner group that you defined in Step 4.
  • Map to a Balance Sheet type ledger account for internal company billing.
  • Credit
    Map to a Revenue ledger account

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