How many accounting documents are generated for a company code-to-company code relationship?

In a company code-to-company code relationship, two accounting documents are generated during a transaction. This typically occurs during internal transactions where one company code records an expense, while the other records the corresponding revenue. The accounting documents reflect this dual aspect of accounting, ensuring that both the giving and receiving company codes appropriately record their financial positions.

The first document records the debit side of the transaction for the purchasing company code, and the second document records the credit side for the selling company code. This dual-entry system is a fundamental principle in accounting, ensuring that every financial transaction has equal and opposite effects in the accounts, thus maintaining the accounting equation's integrity.

The generation of two documents supports comprehensive tracking and reporting of financial information across different organizational units within the company structure, facilitating accurate intercompany reconciliation and performance analysis.