Non-trade intercompany invoicing involves billing between related entities within a corporate group for services such as IT support, management fees, royalties, rent and insurance, rather than for goods or inventory. These transactions, which can quickly become a complex, time-consuming process, must be accurately tracked, reconciled and reported to ensure financial transparency and compliance.

Understanding non-trade intercompany invoicing in SAP

While SAP, a global leader in ERP software, excels in many areas, it does not have a specific workflow for recording non-trade intercompany transactions, making it challenging for companies to manage non-trade transactions efficiently.

Large, complex companies end up relying on manual processes within the FI (Financials) module, which can lead to:

• FB60/FB70 manual processes: Manually entering invoices through FB60 (vendor invoice) and FB70 (customer invoice) functions is tedious and error-prone, especially for high volumes of non-trade intercompany transactions.
• Matching mismatches: Matching intercompany invoices, reference numbers, amounts and posting periods across different company codes consumes hours of precious time during the month-end close.
• Excel uploads: Some finance teams might develop a process using Excel uploads to help them get these transactional data into SAP, but it remains a manual process.
• The SD module detour: Some companies try to use the SD (Sales and Distribution) module for non-trade transactions, particularly where a paper invoice is required, but most will try to avoid it and book them directly into the FI module to reduce the time and complexity in their process.
• Data errors: Manual data entry can lead to discrepancies between company codes, impacting financial reporting accuracy, especially with VAT treatment and withholding tax considerations.

Aico automates matching and ensures both sides of a transaction are booked — same reference number, same amount, same period — before anything posts.

That means:

• No manual matching
• No last-minute issues during close
• Full audit trail, already linked

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Non-trade intercompany transaction challenges

• Mismatched AR and AP entries: Creating bookings directly in the FI module doesn’t eliminate the basic problems of non-trade. The sending company could put their FB70 transaction in one month, and the receiving company could book into the following
• Multiple SAP systems: Enterprise finance teams might book the invoice into one SAP system, whereas the sister company uses a different SAP to book the corresponding FB60 transaction, leading to mismatches with the dates.
• Different reference numbers: In this FI process, the SAP AR document number is often used as the invoice number and the reference for the receiving side. However, the accountant is reliant on the receiving side entering that reference correctly when they book the invoice on the receiving side. This process is painful and manual, relying on a lot of human elements.
• Month-end manual reconciliation: Even if both sides of the transaction use the same SAP, the customer and vendor invoice bookings cannot be easily tied together. This problem is exacerbated if you’re in multiple SAP systems, hours of matching are needed to pull all the data from different SAPs.
• Disjointed process: Many enterprises inherited processes and systems from mergers and acquisitions, resulting in a disorganised set of procedures where invoice totals do not match and are not booked into the same period.

Aico: For enterprise-specific non-trade intercompany invoicing

Aico is an intelligent solution designed to complement SAP processes for non-trade invoicing.

• Automated workflows and matching: Aico automates key processes like matching and posting, significantly reducing manual work and errors. It ensures that transactions are accurately recorded and matched in real-time, eliminating the risk of errors and the need for manual reconciliation.
• Standardisation: Within Aico, you can tailor your non-trade intercompany invoice workflow to enforce compliance with internal controls.
• Accuracy and timing: Aico’s Intercompany Invoicing solution ensures the accuracy and timing of postings on both sides. It doesn’t matter if the sending document is in one SAP and the receiving document is in a completely different SAP system. They are still tied together in Aico, so you can be sure in Aico that both sides have been booked.
• Dispute resolution: Reduces time spent on dispute resolution where the sender and receiver do not agree on the invoice.
• Scalability and efficiency: Aico handles high volumes of non-trade transactions with ease, providing a scalable solution for enterprises. Its efficient processes reduce the time and effort required to manage non-trade intercompany transactions, freeing up resources for more strategic tasks.
• Tax handling: Aico easily manages complex VAT treatments and withholding tax requirements, ensuring compliance with tax regulations.
• Invoice generation: Aico can automatically create a paper invoice when required and attach it to the transaction.
• Evidence management: When Aico posts the transactions into SAP, it simultaneously uploads both the invoice and any supporting evidence to both the AR and AP postings in SAP. These documents can then be viewed in SAP, in the attachment list of the document. Aico ensures that the invoice and supporting files are accessible both in Aico and natively in SAP.

Intercompany made easy

Manual matching: Matching invoice amounts, reference numbers and posting periods across different company codes can be a tedious and error-prone task, especially for enterprises dealing with high volumes of non-trade intercompany invoices.

Lack of key integrations: Most enterprises will use SAP for non-trade intercompany invoicing, but will often have third-party or custom software to help support their process. This can still involve manually maintaining and uploading Excel spreadsheets.

Disjointed processes: A lack of standardisation in the invoicing process across all subsidiaries can be challenging, potentially leading to unmatched invoices and disputes. Due to the fractured nature of this approach, it is hard to enforce internal controls which can lead to confusion and delays.

Making intercompany invoicing easy

Managing your non-trade Intercompany invoices efficiently can be a daunting task in SAP. However, with Aico, the process becomes logical, seamless and efficient.

• Automatic generation and posting of non-trade intercompany invoices.
• Unified reference number for easy tracking and matching.
• Compliance with both internal controls and external regulations.
• User-friendly interface for managing complex transactions.

Relying solely on SAP for non-trade intercompany invoicing can lead to inefficiencies, errors and a lack of financial insight. Aico unlocks the full potential of non-trade invoicing through automation, accuracy, and improved reporting capabilities. Those enterprises using Aico to streamline non-trade intercompany invoicing are enforcing a standardised workflow that ensures accuracy, compliance and efficiency.