Intercompany Purchase
Table of Contents
- 1 General Information
- 2 Posting Key Usage Tag
- 3 Maintenance of the Shareholding Transaction "Internal Group Sale" / "Intercompany Purchase"
- 4 Processing in the Group Monitor
- 5 Consolidation Vouchers
1 General Information
An intercompany sale of participations (IC) is an independent function and is used for the correct processing of intra-group sales of shares to affiliated companies. This function combines the previously independent functions for the disposal and addition of shares and ensures the required data that does not change from the Group's perspective.
This first expansion stage of this function only supports the case where the selling and buying parent company are included in the same group companies, the subsidiary has only one parent company and all the shares are sold.
2 Posting Key Usage Tag
There are two specific posting key usage tags for the shareholding transactions to process an intra-group sale:
- BSL usage tag 'B17': intra-group sale disposal
- BSL usage tag 'B18: intra-group sales addition
Booking keys with these usage tags have been added in the delivery batch files. If the supply batch standard is not used, posting keys with these usage tags must be manually entered by the user if necessary.
3 Maintenance of the Shareholding Transaction "Internal Group Sale" / "Intercompany Purchase"
The shareholding transaction for internal sales must be maintained with the posting key with usage tag 'B17'. The following entries are also required:
- the excess/decrease in proceeds,
- the associated revenue account,
- the company to which the item was sold (For the company specified there, a shareholding transaction with the posting key with usage tag 'B18' must be entered)
The shareholding transaction for the internal purchase must be maintained with the posting key with usage tag 'B18'. The shareholding transactions with the posting key 'B17' and 'B18' must specify the same percentage. Differences are reported by the function "Check/update participation values".
4 Processing in the Group Monitor
The group companies + monitor (KTKGES) displays an additional processing status column. This one has the abbreviation 'IC'. If the shareholding transactions described above are available, the status update will set the state to [red].
The function "Group-internal sales IC" is arranged in the group companies + monitor action or object menu (KTKGES) in the submenu "Capital consolidation ...".
5 Consolidation Vouchers
Two consolidation vouchers are generated by processing "IC" (intra-group sales):
- A voucher with the voucher number "Subsidiary / Selling mother / IC" enters the disposal of the shares in the selling company. As in the case of another disposal of investments, the statement will cancel the capital consolidation postings carried out and current ones ('CF' as well as possibly also 'KK', 'KB' and 'LK'). In addition, the result specified in the shareholding transaction is eliminated to the account specified for this purpose and posted to the difference discount account from the consolidation parameters 'KK'.
- A voucher with the voucher number "Subsidiary/Buying company/IC" enters the addition of the shares with the purchasing company. However, unlike a 'KK' voucher for an acquisition of an equity interest, the shareholding and offset of the difference amount are discontinued at the level that had been managed with the selling parent. The remaining shareholding corresponding to the interim profit is also posted against the difference amount account from the consolidation parameters 'KK', which is zero in total over both vouchers.
The posting logic described here applies to fully consolidated subsidiaries. However, this also applies analogously to companies that are consolidated out of quota or at equity. Direct minority interests are not affected by this operation and therefore remain unchanged. Indirect minority interests, on the other hand, may differ between the selling and purchasing parent company. Insofar as indirect minority interests are to be taken into account via at least one of the two parent companies, manual postings are required.