Change URL in the Intercompany Agreement in a few clicks

Aug 6th, 2022
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How to change URL in the Intercompany Agreement

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welcome to another video in the saps for Hana fixed assets playlist in the last video I explained the inter company fixed asset transfer process and the accounting entries in the video today I will demonstrate on scps 400 2021 the needed configuration to set up the automatic inter-company fixed asset transfer and also I will run an end-to-end process so this way we can see the impact of the configuration we do I will do this demo on sap s4hana 2021 and please pay attention to the version because starting from s4hana 2022 there are many updates but so far I still dont have access to as an S400 2022 system so the best I can do for now is to show you the process on sap s4hana 2021. this is the first video I record after we get to 50 000 subscribers on the Channel I want to thank everyone who supported the channel over the last four years especially the channel members who are paying to support this content I would have never continued creating videos without your support so thanks a lot

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An upstream transaction is when an asset moves from the subsidiary to the parent company. Finally, a lateral transaction occurs between two subsidiaries of the same parent company.
There are three main types of intercompany transactions: downstream, upstream and lateral. Its important to understand how each of these is recorded in the respective units books, the impact of the transaction, and how to adjust the consolidated financials.
An example of upstream intercompany transactions can be the transfer of a business executive to the parent company for a particular time frame who charges hourly. In this scenario, the profit and loss will be shared by the majority and minority stakeholders of the subsidiary.
Downstream transactions For example, a subsidiary requires a loan to acquire inventory and supplies. Rather than conduct an external transaction with the bank, the subsidiary can take a loan from its parents. The parent company funds the transaction and records it in the PL.
To record interco transactions correctly, we should follow below steps: 1) Documentation: every payment should have invoices and every receipt should issue debit note even though these are intercompany. 2) Reconciliation: all the transactions of both payable or receivable should be reconciled at every month.
An example of a downstream transaction is the parent company selling an asset or inventory to a subsidiary. An upstream transaction flows from the subsidiary to the parent entity.
Best Practices for Intercompany Agreements Clarity and Simplicity: Use clear, straightforward language. Complex legalese can lead to misunderstandings and disputes. Compliance with Transfer Pricing Laws: Ensure agreements reflect arms length conditions, meeting the requirements of local and international tax laws.

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