One Legal entity two company code - pros & cons

Hi SAP GURUS,
We are having one legal entity with multiple products. I want each plant to be a profit center. But i am loosing plant wise profitability when we are transferring the same product from different plants, in a common depot. This is because we are not having batch & hence profitabilty for plant is lost when it is sent to depot for sale.
In this case I am thinking to go for two company code. One manufacturing & Other selling. What will be the pros & cons in this case.
Thanks
CHEERS

Yes ! kishore You are obsolutly correct !
Hi Nitin,
As per my understanding your issue seems profit cannot be determined while sending goods sending plant to another palnt. For that SAP suggested to use Transfer pricing in Prrofit centre accouting & your valuation must be profit centre valuation not company code to get internal reports.
Rgds
ManiSuma

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One legal entity - different company codes

Dear all,
I have the following question
Suppose:
Company 1 is implemented in SAP company code A
Company 2 is implemented in SAP company code B
However, from a legal point of view, Company 1 and Company 2 belong to the same legal entity.
This means VAT, Intrastat, EC sales list should be reported out of 1 legal entity.
Is this possible in SAP if the information needs to be gathered from different company codes?
Thx for your answer,
Simon
Moderator: Please, read basic SAP material on consolidation

Yes, it is possible.
Please check transaction F.12.
Check output lists option in F.12.
Rgds
Murali. N

One material in two company codes

How can we maintain one material in two company codes?

Hi Gopala,
We will be maintaining the Materila master to a particular Plant Level and Sales Organisation and Distribution channel.any way the Plant will be assinged to the Company code.
In this Thread. Scenario Like Inter Company Stock Transfer one Material should be maintained both the Plants for which will be having Two Different Company Codes.
Hope this Clear your Doubt and Please Reward If Really Helpful,
Thanks and Regards,
Sateesh.Kandula

One vendor for two company codes

Hi Frds,
I have two company codes and i create a vendor which is applicable to both the company code.Is it required for me to create separate Payable reconciliation GL account for each company codes or creation of one common recco account is enuf.
Please elaborate on this as am new to this..
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Rashmi Ravi

Dear all,
SAP allows You to create a customer / vendor master data that contains information that is valid for all the Company code --> into General data.
Then there is a part, Company Code data, where You can define specific details for each Company Code.
The transaction is the same FD01 or FK01.
I hope this helps You.
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One payments for two company codes

i would like to inform you how to post incoming payment when i have received amounts for differents company codes
regards

Guess you are trying to use F-28 (or something similar) to post the incoming payment. That will not allow what you want to do - split the incoming payment across two company codes.
Try the generic FI txn - F-02 (or something similar), and simply choose a different company code for the credit line items.
Dr Incoming Cash                            100
.   Cr Customer 1 in Co Code A          80
.   Cr Customer 2 in Co Code B          20
The obvious complication here is that you won't be able to pick open invoices for the customers. You might have to knock off the open invoice items against these credit line items in a separate txn (F-32).
Try it out and see if this suffices.
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Our Company would like to issue one check for a vendor in two company codes.
Configuration has the paying company code = sending company code.
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Jeffrey

Dear Jeffrey,
Let say there are two company codes 100 and 200, in the config, you will need to make paying company code for company code 100 = 100 and
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Raghuram

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suresh

Hi,
Thanks Krishnan and Chandra.
I agree with you it could be the same GL account for bank charges, but the business requirement is such that in one of the two company codes, bank charges are required to be tracked separately to be subsequently transferred to the other company code. This means two separate GL accounts are required for two company codes which needs to be configured in OBXK.
Hope this clarifies my query further.
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One PO for multiple company code

Hi,
   I have one scenario, we have two company code   X and Y, now we want to purchase the UPS qty 1 and Battery qty 10, which will use by both the company now can we create one PO for both compnay code on the vendor and the Cost should be divide between both the company code , and how to do the further Finance process like invocie verification giveinng payment to vendor etc.
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Hi,
I have one scenario, we have two company code X and Y, now we want to purchase the UPS qty 1 and Battery qty 10, which will use by both the company now can we create one PO for both compnay code on the vendor and the Cost should be divide between both the company code , and how to do the further Finance process like invocie verification giveinng payment to vendor etc.
Hi Zafar
What I think is that you cannot make one PO for two company codes. Yes you can make two different PO for two company codes.
As per the cosrt conern in a PO you can further divide it to as per Distribution i.e. Single account assignment, distribution on Qty & Distribution on %age and than you can define different-2 Cost centres and than invoice them as per rules.
Please tell me if any doubt in this.
Regards
SS

Testing strategy after legal merge of two company codes

Hi All,
This is my first integration project. Please help me out with my query:
My company is going through a merger and we have merged two company codes.
for e.g. company code 1 is in ABC company and company code 2 is in XYZ company. ABC is buying XYZ company. This means that company code 1 will remain and company code 2 will merge into company code 1. They are going to bring in the open line item AR/AP data from company code 2 into company code 1.
Any of you guys who have worked on an integration project before please guide me to some documents online or state some kind of testing strategy to adopt to test after the legal merge has taken place. I am mostly looking for a strategy to test intercompany process.
Thanks,
MS

Hi
There are lot of issues that you need to take care of:
1. is there any relation bwteeen the two company codes before merger. have they done any transactions between them? If yes, what wewould be the accounting treatment for the same. Would it be transferred at cost or Cost+Price (Transfer Price)
2. If you are in India, there would be effects of taxation like excise and vat calculations
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Thanks & regards
Sanil K Bhandari

One customer / vendor used to share by two company codes

Hi experts,
is there any possibility to share same vendor or customer in two different company codes?
my client have two company codes 8000 and 9000 and that two company codes sharing the same customer /vendor XXXXX.
now they want to post the two company codes transactions to one customer/vendor.
means when we open the customer /vendor line items we should able to see two comapny codes transactions of that customer/vendor.
plz advice.
Thnaq,
sandhya.

yes it is the same way the SAP suggests- provided address is same.
SAP vendor / customer has got two segments -
General data - which is common for all company codes and is at client level data and stored in table KNA1 (customer) and LFA1 (vendor)
Co code data- which is specific to company code - create as many views for each co code which are specific to co code decisions and accounting - and is stored in KNB1 (customer) & LFB1 (Vendor)
In the same way Sales organisation and Purchase Organisation also stored separately.
For creating Co code data, enter existing customer/vendor code and type co code and it will allow u to create both data.
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One trial balance out of two company codes

Our clinet has two company codes in legacy system, now we are implimenting SAP.
In legacy system, company codes are combined into one overall trail balance. Once in SAP they will there be two separate LEu2019s. Will they be required to apply transfer pricing methodology for intercompany movements between themselves ?.
Please advise how to configure this?
How to have a one trial balance out of two company codes?

Please note you have a few questions - I would recommend a single post per question to make it easier for others to answer.
Please note - people will not share config guides or notes so you may want to ask a particular question around transfer pricing.
If you have 2 Company Codes in ERP 6, that have the same controlling Area, FSV you can produce trial balances for more than one company code by activating the new GL.
It seems your client is new to SAP, therefore the new GL will be activated as standard. The standard transaction F.01 allows for a single trial balance for 2 company codes, that have the same CoA, Controlling Area and currency.

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hi CRM experts,
can we map TWO company codes(Enterprise Structures) of ECC into One ORg Structure of CRM.
if answer is yes...
how to do the same..
regards,
SR

Please note you have a few questions - I would recommend a single post per question to make it easier for others to answer.
Please note - people will not share config guides or notes so you may want to ask a particular question around transfer pricing.
If you have 2 Company Codes in ERP 6, that have the same controlling Area, FSV you can produce trial balances for more than one company code by activating the new GL.
It seems your client is new to SAP, therefore the new GL will be activated as standard. The standard transaction F.01 allows for a single trial balance for 2 company codes, that have the same CoA, Controlling Area and currency.

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In this client, we have two company codes under one controlling Area
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Any thoughts on this is helpful for me.
Thanks
Aruna

HI,
Authorization is a flexible tool used to have control as per organization policies.
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You can make a authorization profile/s and assign the desired roles.
Warm Regards

One controlling area with two company codes assigned with one CoA

Hi,
I   am having one controlling area with two company codes assigned , i am using the same gl for two company codes as cost element , when i am positng the miro for vendor purpose it posted the error , to avoid the price difference purpose , i have given one cost center of first company code in OKB9 , and overcome the error , entries posted, when i am posting new entry for MIRO   in secod company codes with same cost element , price difference of that account should go to the other cost center which specifically created for second company code, in the OBK9 i have given cost center first company code   of the same GL account , now this is another new entry in the second company code with other cost center in the second company code since the price difference account should sit in the other cost center of second company code, how to over come this problem, pls help me
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Murugesan

Hi,
First, remove the default cost center in the cost element. Then, for the system to derive the correct cost center for each company codes, define one cost center for each compny codes in OKB9 just like this:
Co Code   Cost Element   Cost Center
1000          1000000              A
2000          1000000              B
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Regards,

Exchange Rate Maintenance for two company codes..

Friends,
My client is having two company codes
X = India
Y = USD
US Company code is live for the last few years and India Company code is created recently and the same is live now.
Now when the US company code creates Purchase Orders / Scheduling agreements, the following error is encountered.
"Enter rate INR/EUR rate type M for 31.07.2008 in the system settings.:"
Now my question to the forum is that
1. If we maintain the exchange rates in OB08 will there any other effect ?
2. Is this error because One more company code is added to the same client which is operating in INR ?
3. When US Company code is not all transacting with India Company Code why is this error encountered.
Appreciate if some one can explain the pros and cons of this please. I am basically an MM consultant and I would also like to know the FI impact in this scenario, hence posted this question in FI forum.
Regards

Hi,
At the time of initial installation SAP would make EUR as base currency, so any new company code you create needs to have an exchange rate defined to the base currency EUR.
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One Legal entity two company code - pros & cons

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