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intercompany accounting entry

Former Member
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Hi

Can anybody tell me what would be the accounting entry in case of Intercompany sales order when supplying sales org send the intercompany invoice to ordering company?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

The ordering company is a customer for supplying company. During billing ordering company will be debited and

Intercompany Transfer A/c will be credited.

Regards,

Sadashivan

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi ,

please see this example it may helpfull fro you

We have two company codes, one in US and one in Singapore. US company codeu2019s chart of depreciation has only two depreciation areas one for USGAAP and another for US GAAP Group currency purposes. Where as Singapore Company codeu2019s chart of depreciation has four depreciation areas one for USGAAP (updates leading ledger), second for Local GAAP, Third for Derived depreciation (updates local parallel ledger with the differences between US GAAP and Local GAAP) Fourth for US GAAP group currency purposes.

We have an asset in US company code whose APC value is 36000 and accumulated depreciation is 400. When I transfer this to singapore company code the below entry is posted in Singapore company code in both US GAAP leading ledger and Local GAAP parallel ledgers.

Dr APC a/c 36000

Cr Acc Dep a/c 400

Cr Interco clg a/c 35600

After posting this when I run ASKB transaction in Singapore company code it generates the below entry making Acc dep account as Zero only in the Local GAAP Parallel Ledger. This entry is happening because during the transfer the acc dep is copied from sending company to receiving company only at USGAAP dep area level and it is not flowing to the Local GAAP dep area from US GAAP though I have used Transfer Method 4 (Gross Method with transfer values to dependent areas) in the transfer variant.

Dr Acc Dep a/c 400

Cr Interco clg a/c 400

Our first question is whether the above second entry is right? If not what do we need to do to ensure that the second entry will not happen.

When I use the Transfer method 2 (Net Method with transfer values to dependent areas) in the transfer variant then second entry is not coming up but the first entry is posted by debiting APC a/c with 35600 and crediting Interco clg a/c with the same 35600.

But the requirement is to have APC value / accumulated depreciation values are same in both depreciation areas and both ledgers of the singapore company code.

Regards,

venkataswamy