Intercompany settlement transactions – setup

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

  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.

  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.
  3. Set up prices and surcharges

    If you want to create the intercompany settlement transactions and you want to add surcharges, you can define intercompany trade relationships. You can specify the surcharge percentage in the Intercompany Trade Relationships 360 (tcitr2300m000) session. The price origin must be Obsolete.

  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.

  5. Set up the integration mapping scheme

    In the Mapping Scheme (tfgld4573m000) session, set up the integration mapping scheme. On the Mapping Scheme Details (tfgld4574m000) 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