Multiple Company Codes Share Single Bank Account

[Former Member]

Has anyone been on an implementation where multiple company codes (legal entities) share a single bank account?

Any tax or legal ramifications regarding this that you might be aware of?

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We have 14 legal entities; when arrived at project these are all combined into single company code. The recommended action was manage bank account via profit centers vs company code; the bank accounts are managed by group account where all funds are swept (or funded) at close of business each day. Client wants to only set up group account as EBS, all others as manual. Recommendations?

[Former Member]

yes more than one co.cd can use the same bank.

while configuring APP in payment methods in company selection you need to give

paying co.cd and sending co.cd .

here sending co.co means the co.cd which is liable and paying co.cd means the co.cd from which money is going out.

[Former Member]

I presume that a holding company owns the bank account - the bank will have a single legal entity as owner of an account and only one.

No reason why individual bank accounts can't be held on the same GL account though, or vice versa - but not recommended.

Is the treasury module being used?

Norrette