Several company codes can be involved in a payroll run for an employee. In such a cross-company code transaction, receivables and payables can arise between company codes.

In the following situations, cross-company code transactions occur:

• An employee works for several company codes (because of proportional assignment or change of company code within a payroll period) within a payroll period.
• After an employee has changed company code, retroactive accounting is performed for the time before the change of company code.
• An employee changes company code retrospectively.

You can clear the receivables and payables that may arise in these three cases, either on a summarized basis or using company code clearing accounts.

You have made the necessary settings in Payroll Customizing, under Reporting for Posting Payroll Results to Accounting → Activities in HR System → Posting Variants. For the posting variant you use, the Post to company code clearing accounts indicator must