Intercompany settlement transactions

Intercompany settlement transactions are a specific type of intercompany transactions that only applies to purchase and sales transactions between logistic companies in a multilogistic/single-financial company structure.

Intercompany settlement transactions generate less than half the number of postings (10) of a regular invoicing procedure (24). Therefore, if no invoces are required, you can use intercompany settlement transactions to considerably reduce the number of postings in your ledger accounts.

Intercompany settlement transactions in a single financial company structure are automatically posted financial transactions in one financial company to intercompany accounts. Instead of generating open entries for sales transactions and purchase transactions between the logistic companies, the amounts are posted to intercompany billing accounts and clearing accounts. Such intercompany accounts must be of the Balance Sheet type, not of the Intercompany type.

The sales and purchase transactions can concern:

WIP transfer
Inventory transfer

To create intercompany settlement transactions for purchase/sales transactions between logistic companies of a multicompany structure, you must define the logistic companies as affiliated company business partners.

You can set up intercompany settlement as described in Intercompany settlement transactions – setup.

Note: If you have set up intercompany settlement transactions, LN automatically creates the settlement transactions when you finalize the transactions. You do not need to run any additional sessions.

Intercompany settlement reconciliation report

You can use the Intercompany Buy / Sell Reconciliation Report (cisli2445m000) session to generate a report of the intercompany settlement transactions between affiliated companies. LN generates the report based on the sales information in the central invoicing tables. For each sales order line, LN retrieves the corresponding purchase information for the report.