Tip of the Quill: A Journal
Intercompany Cost Allocation Agreement

A supplier invoice cannot book items in different booking channels! The supplier`s invoice is reserved in the employee`s booking circuit. We used an intercompany-CO automatic reservation change device to obtain the cost of the item assigned by the employee. The re-ledring of fees is done with accounting statements with the CC “Sec. Cost Cross Company” registration station. The employee`s cost center is credited and the PSP element is debited. The business partner applies to these positions. If the recipient of the Intercompany activity assignment is a debit project that generates revenue, it may be necessary that the revenue generated by this intercompany service can be allocated to the delivery company. You can use the original PC feature described in this blog: blogs.sap.com/2018/07/27/financial-accounting-for-customer-projects-in-sap-s4hana-cloud-part-3-professional-service-industry-reporting-including-margin-per-contributing-profit-center/ Note: There may be value differences between associated revenues and visible intercompany cost allocations on Intercompany clearing accounts in a given period – the tally is also based on the amounts allocated and there is no additional price calculation. In addition to the possible changes in periods, it is mainly currency differences.

Intercompany billing selects costs based on booking currency. The amounts are converted, if necessary, into the billing currency and the company`s currency. This is done with a currency date, by default, on the last day of the month. The different fee allocations are converted into the currency of the booking circuit on each booking date. For more information, please see note 537556 If you need intercompany agreements in accordance with transfer prices for your controlled transactions, we have something for you… In the Concur application, an employee can assign his expense bill to a paying agency (cost center or project) in another booking circuit. Figure 14 indicates that there is only one article within which an intercompany time and calculation profile is assigned.