If the Post to company code clearing accounts indicator is set in Customizing for the posting variant that you use, when cross-company code transactions take place, this results in balances on the company code clearing accounts. These balances illustrate receivables or payables between the company codes.

In this way, the company code clearing accounts exactly show which receivables or payables exist between the individual company codes.

You can only use clearing using company code clearing accounts if the company codes in your enterprise only illustrate parts of a legal unit meaning that clearing can take place without any difficulties. If this prerequisite is not met, you cannot make any entries that lead to cross-company code transactions, unless other activities take place in Financial Accounting (for example, issuing an invoice, correcting group turnover).

To use summary clearing, you must make sure that the Post to company code clearing accounts indicator is set for the posting variant that you use. You make these settings in Payroll Customizing, (under ® Reporting for Posting Payroll Results to Accounting ® Activities in HR System ® Create Posting Variants).

You have created the company code clearing accounts required in Customizing for Financial Accounting, under General Ledger Accounting ® Business Transactions ® Cross-Company Code Transactions.