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Background documentation Prerequisites for Cross-Company Code Transactions  Locate the document in its SAP Library structure

For cross-company code transactions, there are special prerequisites that must be fulfilled for invoices if:

        The receivables or payables are posted in a different company code to the one in which the revenue or expense (or costs) is posted

        The business transaction must be reported for tax purposes

In order to properly report the business transaction on the tax return, the company codes in this case must represent a single legal entity for tax purposes. This means that in the advance return for tax on sales/purchases, one company code represents all the other company codes.

This is necessary because the system posts the total tax for the document in the leading company code. The tax is posted in this company code, irrespective of the company code in which the taxable amount is posted.



This restriction applies only to the type of business transaction described above. It does not apply when cross-company code transactions are only posted in the general ledger, or when payments are made across company codes for an invoice that was not posted across company codes.


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