SAP Knowledge Base Article - Public

3437952 - ICO Margin posting generated with activity allocation

Symptom

There's additional posting for Intercompany margin posted together with activity type allocation posting and user unable to figure out where the margin value come from.

Environment

SAP S/4HANA Cloud

Cause

The intercompany service cost rates(ICO Rate = Yes) that are used to generate an additional intercompany margin posting when intercompany postings for several company codes occur. 

Resolution

Kindly see the example for ICO Margin calculation via Group Valuation in Overhead Accounting
See Example: Intercompany Posting Logic - Activity Allocation.

The following graphic provides an example of an intercompany activity allocation within a ledger that applies legal valuation and a ledger that applies group valuation:

In this graphic, the two valuation perspectives are displayed in different boxes representing the ledger for the legal valuation approach (0L) and the ledger for the group valuation approach (4G).

A mechanic, working for the delivering company, provided a service to the ordering company and maintains a cost rate of 75 EUR/hour. This leads to postings and corresponding journal entries.

The activities are allocated in both the delivering company and the ordering company.

In ledger 0L, two journal entries are created, one for the intercompany cost rate of 75 EUR/hour and one for the intercompany margin of 15 EUR. The intercompany margin equals the intercompany rate of 90 EUR/hour minus the cost rate of 75 EUR/hour.

In ledger 4G, only one journal entry is created for the activity allocation because the intercompany margin isn’t posted.

Keywords

Intercompany cost rate, ICO rate, ICO Margin, Activity Allocation. , KBA , CO-OM-CEL-F , Period-end Closing , Problem

Product

SAP S/4HANA Cloud all versions