Intercompany Transfers – Group Perspective
The transfer of an asset between two affiliated companies represents a retirement for the one company and an acquisition for the other. From the point of view of the corporate group, however, it represents a transfer that balances to zero in the group asset history sheet
For this reason, it has to be possible to post an intercompany asset transfer using differing transaction types in each depreciation area. There are two different scenarios that have to be considered:
Manual Intercompany Transfers
For manual intercompany transfers, there is an indicator in the Customizing definition of the depreciation areas that makes it possible to handle transfers between company codes according to corporate group needs (under Special Valuation® Requirements for Consolidation ® Specify group depreciation areas).
The indicator has the following affects:
Retirements to and acquisitions from an affiliated company are automatically posted in the group depreciation areas using transaction types for retiring transfers or acquisition transfers. This practice ensures that these transactions are shown correctly in the asset history sheet for the corporate group. You specify these transaction types in FI-AA Customizing under Transactions® Determine transaction types for internal transactions.
The system uses different transaction types for transferring acquisitions from prior years and transferring current acquisitions. The standard transaction types (acquisitions from prior years/current acquisitions) are:
When you define the transaction type for transfer of prior-year acquisitions (350 and 360) in Customizing, you can specify the corresponding transaction type for current acquisitions (370 and 380) at the same time.
Graphic: Intercompany Asset Transfer (from Group Standpoint)
If you are using the R/3 FI-LC (Legal Consolidation) component, you must not set this indicator in the consolidation depreciation areas. The group depreciation area in this case does not represent the final consolidated financial statements, but only the corporate valuation. The transfers within the corporate group are only cleared within the framework of the consolidation in the FI-LC system.
Depending on the reason for the transfer and the relationship between the company codes, you have to post the acquisition of the transferred asset either gross (with its historical APC and value adjustments) or net (with its net book value). Therefore, there is a special indicator in the definition of the transaction types. This indicator specifies whether the transaction type is for posting to affiliated companies, and whether the posting is gross or net (Transactions ® Intercompany Asset Transfers ® Specify gross or net transfer method for manual transfer).
Automatic Intercompany Transfer
This indicator only applies when the intercompany transfer is posted manually (seeIntercompany Asset Transfer (Between Company Codes)). For automatic intercompany asset transfers, these two things are controlled by the transfer variant. (For more information, see System Settings for Automatic Intercompany Asset Transfers.)