For transactions between the legal entities or business units in a company, To-Increase Multi-Company Finance helps ensure automatic entry for your intercompany account. You also gain support for automatic intercompany invoicing.
Suppose the structure of your company consists of one or more sales offices and one or more distribution centers or production units. Maybe the physical flow of goods runs from the distribution or production unit directly to the customers, so that you must make a plan for payment between the distribution or production unit and the sales office.
Multi-Company situations also occur in central purchasing environments, where purchase invoices are obligatorily entered at one of the units, with costs posted at one or more other business units.
Multi-Company Finance helps ensure the automatic generation of an intercompany purchase and sales invoice. The transfer price can be determined as a fixed amount or as a percentage of the sales price or cost price.