What is intercompany posting in SAP FI - Financial Accounting?

SAP Term: intercompany posting

• Component: FI

• Component Name: Financial Accounting

• Description: A posting transaction involving several company codes. A journal entry is created automatically for each company code involved in the transaction. Intercompany code postings are used, for example, to process centralized purchasing or centralized payment.

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• Key Concepts: 
  Intercompany posting is a feature of SAP Financial Accounting (FI) that allows companies to post documents between different company codes. This feature is used to transfer goods, services, and financial assets between two or more companies within the same group. The postings are made in the same currency and are recorded in the general ledger of each company code. 
  
  How to use it: 
  To use intercompany posting, you must first set up a company code relationship between the two companies. This is done by assigning a company code to a group of company codes. Once this is done, you can create an intercompany document in the source company code and post it to the target company code. The document will be posted in both company codes and the balances will be updated accordingly. 
  
  Tips & Tricks: 
  When using intercompany posting, it is important to ensure that all documents are posted correctly and that all balances are updated accurately. It is also important to ensure that all documents are posted in the correct currency and that all postings are made in the same currency. 
  
  Related Information: 
  For more information on intercompany posting, please refer to SAP Help documentation or contact your SAP support team.