If an employee works for several company codes within a payroll period, the expenses incurred are distributed to these company codes on a proportional basis. However, the system assigns the relevant payables to the company code in which the master cost center is located to which the employee was assigned on the last day in the payroll period.

In this way, receivables and payables incur between the company codes. They appear as balances on the company code clearing accounts.

In the following cases, an employee is proportionally assigned to several company codes:

• The employee changes company code during a payroll period.
• You have specified a percentage cost distribution to several cost centers for the employee in the Cost Distribution infotype (0027) or in Organizational Management.
• You have specified a different cost assignment for individual wage elements for the employee. This cost assignment contains a different company code.

In this example, the following expenses incur during posting:

• Company code 0001: 7,000
• Company code 0002: 3.000

The payables of 10,000 are posted to company code 0001.

The receivables and payables between the company codes are paid to the company code clearing accounts set up for this purpose.

• The balance of the company code clearing accounts for company code 0001 shows a receivable of 3,000 from company code 0002.
• The balance of the company code clearing accounts for company code 0002 shows a receivable of 3,000 from company code 0001.

The balances of the company code clearing accounts correspond to the receivables and payables between the company codes.

You must manually clear the receivables and payables between the company codes. When doing so, you also clear the balances of the company code clearing accounts.