What is 'intercompany netting' in SAP FIN-CS-ICR - S/4HANA Intercompany Matching and Reconciliation?

intercompany netting - Overview

• Component: FIN-CS-ICR

• Component Name: S/4HANA Intercompany Matching and Reconciliation

• Description: A function for offsetting accounts receivable and accounts payable between two companies owned by the same group, so that payment is only made for the net difference between their receivables and payables.

intercompany netting - Details

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  Key Concepts: 
  Intercompany netting is a process used to reduce the number of intercompany transactions between two or more companies. It is a form of settlement where the net amount due between two companies is calculated and then settled in one transaction. This process helps to reduce the number of transactions and the associated costs. 
  
  How to use it: 
  Intercompany netting can be used in SAP S/4HANA Intercompany Matching and Reconciliation (FIN-CS-ICR) to reduce the number of intercompany transactions between two or more companies. The process involves calculating the net amount due between two companies and then settling it in one transaction. This helps to reduce the number of transactions and associated costs. 
  
  Tips & Tricks: 
  When using intercompany netting, it is important to ensure that all transactions are accurately recorded and that all parties involved are aware of the process. Additionally, it is important to ensure that all relevant taxes and fees are taken into account when calculating the net amount due. 
  
  Related Information: 
  For more information on intercompany netting, please refer to SAP's documentation on Intercompany Matching and Reconciliation (FIN-CS-ICR). Additionally, there are several online resources available that provide further information on this topic.