What is intercompany in SAP FI - Financial Accounting?

SAP Term: intercompany

• Component: FI

• Component Name: Financial Accounting

• Description: Concerning multiple company codes. Examples: o Intercompany postings in a corporate group o Intercompany manual payments in Accounts Receivable and Accounts Payable o Intercompany clearing in General Ledger Accounting as well as in Accounts Receivable and Accounts Payable o Intercompany issue of main asset numbers in Asset Accounting o Intercompany asset transfers in Asset Accounting o Intercompany costing in Product Cost Controlling

Smart SAP Assistant

• Key Concepts: 
  Intercompany is a term used in SAP Financial Accounting (FI) to describe transactions between two or more companies within the same group. These transactions can include sales, purchases, payments, and other financial activities. Intercompany transactions are typically recorded in the general ledger of each company involved in the transaction. 
  
  How to use it: 
  In SAP FI, intercompany transactions are recorded using special intercompany accounts. These accounts are used to track the flow of funds between companies and ensure that all transactions are properly accounted for. When recording an intercompany transaction, the user must enter the appropriate account numbers for both companies involved in the transaction. 
  
  Tips & Tricks: 
  When recording intercompany transactions, it is important to ensure that all accounts are properly balanced. This means that the total amount of money flowing between companies should be equal on both sides of the transaction. Additionally, it is important to ensure that all taxes and fees associated with the transaction are properly accounted for. 
  
  Related Information: 
  For more information on intercompany transactions in SAP FI, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to record intercompany transactions in SAP FI.