240-SAP Netweaver Bi-based Consolidation

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SEM240 SAP NetWeaver BI-Based Consolidation

SEM-CPMCorporate Performance Monitor

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2006

SEM240SAP NetWeaver BI-Based Consolidation

SAP SEM 6.0

2006/Q2

Material number: 5007 9912

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Copyright 2004 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

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SAP, R/3, mySAP, mySAP.com, xApps, xApp, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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Course Prerequisites

Recommended:

SAPFIN - mySAP Financials Solutions Overview

SEM010 - Strategic Enterprise Management

AC660 or SEM230

Required:

Practical knowledge of consolidation within accounting

Knowledge of BW (BW310 for example)

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Target Group

Duration

5 days

Participants

Consultants

Project members

Notes to participants:

The training materials are not self-study programs. They complement the course instructor's explanations. Your material has space for noting additional information.

There may not be enough time to do all the exercises during the course. The exercises are intended to be additional examples of topics dealt with during the course. You can also use them to deepen your knowledge after the course.

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Course Overview

Contents:

Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

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Course Goals

This course will prepare you to:

Familiarize yourself with SEM Business Consolidation and its functions

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Course Objectives

At the conclusion of this course, you will be able to:

Import reported financial data into the system using a variety of interfaces

Post manual and automatic standardizing entries

Set up and perform foreign currency translation

Map interunit elimination

Set up consolidation of investment activities

Display the posting results in reporting

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Unit 6 Reclassification & Allocation

Unit7 Consolidation of Investments

Unit 8 Balance Carryforward

Unit 9 Reporting

Unit 1 Data Model

Unit 2 Master Data

Unit 3 Data Transfer & Standardizing Entries

Unit 4 Currency Translation

Unit 5 Interunit Elimination

Preface

Contents

Appendix

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Course Overview

Data Model

Appendix

Master Data

Preface

Data Transfer and Standardizing Entries

Currency Translation

Reclassifcation and Allocation

Interunit Elimination

Reporting

Consolidation of Investments

Balance Carryforward

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Main Business Scenario

You have been assigned the task of implementing the SEM-BCS BW-based component for an international corporate group.

You want to perform managerial (internal) reporting on the basis of profit centers, in addition to statutory (external) reporting. You want to process and evaluate values for company and profit center in one data set with a view to harmonization in accounting.

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© SAP AG SEM240 1-1

SAP AG 2003

Contents:

Design of the Data Model for BW-based Consolidation

Relationship Between BW Objects and Consolidation Characteristics & Key Figures

Periodicity of Consolidation

Data Model for BW-based Consolidation

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Data Model for BW-based Consolidation: Objectives

At the conclusion of this unit, you will be able to:

Understand and describe the data model for BW-based consolidation

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Course Overview

Data Model

Appendix

Master Data

Preface



Reclassifcation and Allocation


Reporting



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Accounting Principles

Accounting Principles

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Data Model for BI-Based Consolidation

As an experienced consolidation consultant, you are going to help your customer implement BI-based consolidation.

Your customer wants to consolidate data in paralell at a company and a profit center level, in a single data record.

You spend the next few days designing a prototype that meets most of your customer's requirements.

Your colleagues in the in-house IT department have already activated the BCS content, copied it and provided you with the structure for the characteristics and key figures.

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Requirements of a Consolidation System (1)

Integrated Legal and Management Consolidation

Parallel Accounting Principles IAS, US GAAP, Local GAAP

Fast Close

Multi-dimensional data basis

Matrix organization (companies / profit centers)

As many data categories as required (actual, planning, forecast data...)

Restatement using reporting or additional postings

Processing of parallel valuations

Use of global settings

Process monitoring with graphics-based consolidation monitor

Generation of automatic postings even for complex activities

System access for subsidiaries and subgroups (such as reconciliation of open items before a currency translation)

Scaleable architecture

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Requirements of a Consolidation System (2)

Quality / Trusted Accounting AspectsDocument principle offers transparency in the creation of group values

Monitoring of consolidated financial statements using traffic-light concept

Monitoring of status management for each unit and process chain

Highly differentiated authorization concept

Integrated access to the system for subsidiaries -> High data quality through inclusion of the data supplier in the consolidation process

Individually-definable validation rules to ensure data quality

Flexibility

Customer defines data model

Time and version-dependent properties of units (for example, affiliation of a unit to a group, accounting technique.)

As many parallel hierarchies as required

The financial accounting scandals of recent years have made it increasingly important for companies to pursue an active information policy and transparent company leadership. With a "Trusted Accounting System" you can use the transparent, integrated IT environment for internal and external revision to not only minimize costs, but also add value by increasing trustworthiness.

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Each entity is mapped in its own hierarchy

Consolidation unit role is assigned to both the company and the business area

Process support for both entities in full consolidation process

Pharma.

Chemical

Metal

Co. USCo. CACo. MX

Pharma. Chemical Metal•

•

•

•••

Matrix Organization

Co. US

... ...Traditional approach:Company/business area combination ?consolidation unit

Legal and management units stored in different hierarchies.

Consolidation Units

Co. CA

SEM-BCS - Legal and Management View Integration

World by Co.

Co. US

Co. CA

World

Co. MX

US - Chemical

MX - Pharma

US - Pharma

CA - Chemical

Pharmaceuticals

Chemical

BA WorldWorld by BA

Situation in EC-CS until now:

In R/3 -based consolidation, the consolidation unit was derived from a combination of the company and the internal account assignment object (profit center or business area).

For legal consolidation, the unit is derived from the company.

Both entities were stored in separate views and hierarchies and were therefore technically separated.

Difficulties arose in reconciling the values for both views. This was particularly problematic with key figure calculations. "Which value should be used for the company?" In practice, both valuation approaches are often reconciled. The process of reconciling both views is very labor intensive, and is therefore more likely to be performed at group level.

Advantages of SEM-BCS:

In BW-based consolidation you can work with two consolidation units in one data set. This means you have to agree on the correct valuation approach before the data is supplied. The subject of the correct valuation approach is thus transferred to the reporting unit.

Each data record (reported financial data or consolidation data) is built on two consolidation units and remains with them throughout the entire SEM-BCS consolidation process.

Cost accounting values can be stored as statistical items, making them available for reporting.

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Technical Aspects

Technical Aspects

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Elements of an InfoCube

1 fact table and up to 16 dimension tables

Central Data Pool for Processing and Reporting

Contains two types of data

Characteristics

Key Figures

3 dimensions are filled by SAP

Time

Unit

InfoPackage

The central data containers that form the basis for reports and analyses in SAP BW are called InfoCubes. They contain two types of InfoObjects: Key figures and characteristics. Each individual InfoCube should contain a self-contained dataset because queries always refer to one InfoCube.

An InfoCube consists of several InfoObjects and is structured in a star schema. A central fact table contains the values for the InfoCube, and several surrounding dimension tables store the characteristics for the cube.

- An InfoCube is assigned to an InfoArea.

- In the Business Explorer, a report always refers to one specific InfoCube. In consolidation, you only use a virtual InfoCube that has been derived from the totals cube for reporting. You can generate this virtual InfoCube in the data basis at the push of a button.

A dimension contains characteristics that logically belong together. Posting level and document type objects could be grouped in one dimension, for example.

InfoCubes used in consolidation are transactional InfoCubes. This means they can be used for reading as well as for writing data.

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InfoCube – InfoObjects

Charact. Time Charact. Key Figures

Add. Func. Detail View Dimensions... Nav. Attributes...Template InfoObjectCatalog <All InfoObjects>

StructureCharact. Long Description0CS_VERSIO

0CS_CHART

0CS_ITEM Item

Cons. Chart of Accounts

Consolidation Version

0CS_CCC... Consolidation Group

0Profit_C...

0SEM_CGP..

0C0_AREA

Profit Center

Profit Center Group

Controlling Area

0PCOMPANY Partner Company Number

0PART_PR... Partner Profit Center

0COMPANY Company

0FUNC_AR...0COUNTRY

Functional Area

Country Key

Charact. Long Description0ABCINDIC ABC Indicator for Technica...

0ABCKEY ABC Indicator

0ABCPROC.. Business Process Number

0ABC_CLA... ABC Class0ACCNT_G Customer Account Group

0ACCOMM Accounting Community

0ACCOUNT Accounting Number

Accounting Instance0ACINST

0ACN_ATTI...

0ACN_ATTI...

0ACN_ATTI...0ACN_ATTI...

ACNielsen: EAN/UPC-Attrib...

ACNielsen: EAN/UPC-Attrib...

ACNielsen: EAN/UPC-Attrib...ACNielsen: EAN/UPC-Attrib...

TemplateStatu

In SAP NetWeaver BI, activate all the InfoObjects required for consolidation. For information on which objects are essential for processing, see SAP Note 727776. You will also find a list of the InfoObjects for which the standard settings must not be changed.

For information on installing a default list, see SAP Note 859893 for Release SEM-BCS 6.0.

After activation, use Content Cube 0BCS_c11 as a copy template for creating your own customized Cube. This cube contains the minimum number of characteristics and key figures required by BCS to create a consolidated financial statement. If necessary, you can limit these to the actual characteristics used within the SEM-BCS data model.

Add your own customer-specific characteristics to the cube, (such as the InfoObject "brand", to enable brand-based net sales reporting if a customer requires this information to carry out a brand strategy). Customer's own characteristics are processed in exactly the same way in SEM-BCS as the standard characteristics. You can adapt the data model if necessary after you have gone live.

Initially, SAP NetWeaver BI InfoObjects consist only of technical master data information such as the field type, time and version dependency of characteristics.

InfoObjects do not contain any business processing logic for consolidation at this stage. They have no information on the role they are going to perform in the consolidation process. This occurs in turn in the SEM-BCS data basis.

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InfoCube Characteristics and Key FiguresCharact. Time Charact. Key Figures

Add. Func. Detail View Dimensions...

Template InfoObjectCatalog <all InfoObjects>

Structure

Time Charact. Long Description

0FISCPER3

0FISCVARNT

0FISCYEAR

sting PeriodFiscal Year Variant

Fiscal Year


0CALDAY

0CALQUAR...

0CALQUAR...0CALWEEK

0CALYEAR

0FISCPER

0FISCPER3

0FISCVARNT

0FISCYEAR

0CALMONTH0CALMONT...

Calendar Day

Calendar Year/MonthCalendar MonthQuarter

Calendar Year/Quarter

Calendar Year/WeekCalendar Year

Fiscal Year/Period

Posting Period

Fiscal Year Variant

Fiscal Year Year

Template

Add. Func.Template

Charact. Time Charact. Key Figures

Detail View Units...InfoObjectCatalog <all InfoObjects>

Key Figure Long Description

0ACQ_VAL...

0ACT_QUA...

0ACT_SCH...

0AMNT_CLM

0AMNT_EST

0AMNT_RES

0AMOCAC

0AMOCCC

0AMOUNT

0ACQ_VAL...

0ACT_CAP...

Original Value of Equi...

Original Value for Val...

Capacity

Activity Quantity

Scheduled Activity Quant...

Claimed Costs

Claim: Estimated Costs

Claim: Accepted Costs

Amount (Cost Accounting c...

Amount (Object Currency)

Amount

TemplateStructure


0CS_TRN_G

0CS_TRN_...

0CS_TRN_...

riode Value in Grp Cur.

Period Value in Local Cur.

Period Value TC0CS_TRN_... Period Value in Transac.

0AMOUNTDF Scheduled Project Plan

Statu

An InfoCube can support one consolidation data model. A 1:1 InfoCube to data basis assignment must be made in BCS. It is not possible for one InfoCube to be referenced by more than one data basis.

Four key figures are available in the totals cube in the standard system. Extending the data model by adding additional key figures in the total cube is not permitted.

Values in local currency

Values in transaction currency

Values in group currency

Quantities

The system generates key figures required for processing individual functions in ODS objects. You can generate key figures such as costs of goods manufactured for the elimination of interunit profit and loss in inventory (as a percentage) simply by clicking on a button, without having to make manual entries beforehand. To enable the system to generate ODS objects, you must activate the Business Content beforehand. This is where the copy templates for the key figures are stored.

Consolidation always works in an account model. A cube can process a maximum of 233 key figures. This is not enough for the total number of items required in business however. A value is therefore stored in combination with a characteristic value for the "item" and a key figure.

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Relationship Between Consolidation Area, Data Basis and Data Stream

Data StreamType: Totals Data

Data StreamType: Supply Data(f. elim. of IU P/L in inventory)

Data Stream

Type: Documents

Data StreamType…

Data Basis

Consolidation AreaExamples: management consolidation or legal consolidation

Creation of a pool of characteristics and key figures

Assignment of roles to characteristics and key figures

...determines the characteristics and key figures available in the data model

Consolidation area is a subset of the data basis

Tasks and methods are dependent on the consolidation area

Consolidation chart of accounts is unique for each consolidation area

Data Model

The data basis defines the data model for consolidation, in other words, the characteristics and key figures with their respective role in consolidation. The consolidation area can constitute a subset of the characteristics and key figures in the data basis.

Data Streams

Data streams identify the storage location for the consolidation data.

There is only one RFC destination in the SAP NetWeaver BI. An RFC destination is the address of the SAP NetWeaver BI system where BCS maintains its data (master and transaction data). If you do not specify an RFC destination, the local SAP NetWeaver BI system is taken to be the storage location.

In addition to the totals data cube, BCS uses ODS objects to store other control data. The use of ODS objects depends on the function. Supplier data for the elimination of interunit profit in transferred inventory is managed in an ODS object, for example

You generate ODS objects in the SAP NetWeaver BI system with SEM-BCS at the press of a button. They are generated in the SAP NetWeaver BI system that was specified as the storage location by the RFC destination.

If the data model is changed in the course of productive operation, see SAP Note 663207.

SAP Note 772743 can provide you with an overview of the different configuration aspects of the data basis.

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The Role Concept

Company

BW Characteristic

Profit Center

Function AreaCountry

SEM-BCS Role

Consolidation Unit

Subitem

Account Item

Data CategoryAccounting Principles

Version

The role defines the semantics of characteristics and key figures, on which consolidation functions are based.

Consolidation functions are not "hard-coded" for one specific data model. Functions (such as interunit elimination or reclassification) are based on the roles allocated to the characteristics. For example, the consolidation unit role is allocated to the company characteristic.

The characteristic the consolidation unit role is allocated to is not a factor in processing as the role is accessed for this purpose. (For example, characteristics of the consolidation unit role participate in interunit consolidation making these status-relevant in the Monitor. No partner consolidation unit therefore exists.)

The consolidation unit role can be allocated to several characteristics within a data basis (for example, companies and profit centers).

Each characteristic and key figure is allocated one role only within the data basis. One characteristic may be allocated different roles in different data bases however.

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Examples for Roles

Role Number of Fields with this Role in the Data Basis

Characteristic Always Has Value in Transaction Data

Version

Group Currency KeyCurrency-bearing Consolidation Unit

Consolidation Unit

Consolidation Group

Item

Subassignment

Partner Unit

Movement Type

Acquisition Year/PeriodTransaction Currency Key

Unit of Measure

1 to n

1

1

1 to 2

1 to 2

1

0 to n

1 to 2

0 to 1

0 to 1

0 to 1

0 to 1

X

X

X

X

X

X

Each characteristic and each key figure in a data basis has precisely one role. Overall (in more than one data basis), a characteristic or key figure can have more than one role.

SEM-BCS's main strength is that its data model can be scaled to requirements. The subassignment role is generally used for customer-specific reporting requirements.

Additional information such as "Brand", "Sales Channel", "Customer Group" and "Product" are examples of characteristics to which you could assign the subassignment role in the data basis, so that they are included in the reported financial data.

The difference between characteristics with the role "subassignment" and those with the role “movement type" lies in the attributes that control the balance carryforward.

The data quality attained when creating report data (controlled principally using the master record for the item) remains constant during the consolidation process.

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Data Basis

Data Streams Data Model Authorizations...Currency-bearing Cons Unit Company

Field Name RoleConsolidation VersionCons. Chart of AccsControlling AreaCurrency Key of Group CrcyFiscal Year VariantFiscal YearPosting PeriodItemCompanyConsolidation Profit CenterConsolidation GroupConsolidation Profit Center..Partner Company NumberPartner Consolidation Profit…Movement TypeFunctional AreaCountry Key

VersionFixed in Cons AreaFixed in Cons AreaGroup CurrencyFixed in Cons AreaFiscal YearPeriodItemConsolidation UnitConsolidation UnitConsolidation Group

Partner UnitPartner UnitMovement TypeSubassignmentSubassignment

Consolidation Group

ODS (Combinations of Cons Units)

The data basis determines the consolidation data model and therefore the number of characteristics and key figures as well as their role in the consolidation process. The 1:1 connection to the InfoCube in BW is created on the Data Streams tab page.

The data model must have at least one field for each of the following roles:

Version, group currency key, consolidation unit, consolidation group, partner unit, item, document type, posting level

Time characteristic (fiscal year and period), value in group currency

If you want to change the data model after you have gone live in a system, see the information contained in SAP Note 663207 (Results of Changes in the Data Model) and 648278 (Data Basis: Generation of Data Streams: Data).

Authorization check for characteristic values: select this indicator to execute an authorization check for the characteristic at the characteristic value level. You can, for example, determine that a user can display or enter data for a specific consolidation unit only. If you do not select this indicator, you can only grant or restrict authorizations for the characteristic. You can set the authorization check at characteristic level for all the characteristics contained in the data basis.

Validity check: You determine whether a validity check is to be made for the values you enter for a characteristic. You can request a version-dependent check, a time-dependent check, or a check that is dependent on a combination of version and time.

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Period Categories

Quarters and Year-End1 Quarters2 Year-end

Periods and Quarters3 Periods4 Quarters

Quarters5 Quarters

(Period Category Group)(Period Category)

Period Categories 1 2 3 4 5 6 7 8 9 10 11 12

- - x - - x - - x - - -- - - - - - - - - - - x

x x - x x - x x - x x -- - x - - x - - x - - x

- - x - - x - - x - - x

Further Periods...

Period categories simplify the period-dependent assignment of tasks to consolidation objects (such as consolidation units).

For example:

You want to assign currency translation methods to consolidation units. Consolidation unit A is to be translated with method U1 in periods 6 and 12, and method U2 in periods 2, 4, 8, and 10.

To avoid having to make six assignments, define two period categories: P1 = {006, 012}, and P2 = {002, 004, 008, 010}. Assign the translation methods to the consolidation unit by period category (rather than by period). This then reduces the number of assignments from 6 to 2.

You can use period category groups to avoid overlapping between period categories. It is essential that period categories of a period group do not overlap.

For assigning properties to consolidation units according to period category, you can only use period categories from the same period category group (for each version and effective period).

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Consolidation Frequency

Consolidation Frequency1 Yearly2 Semi-yearly3 Trimester4 Quarterly5 Monthly

Consolidation Frequencies 1 2 3 4 5 6 7 8 9 10 11 12

- - - - - - - - - - - x- - - - - x - - - - - x- - - x - - - x - - - x- - x - - x - - x - - xx x x x x x x x x x x x

Further Periods...

The consolidation frequency arranges periods into consolidation intervals beginning with 001 without leaving any gaps.

For quarterly consolidation, the consolidation intervals are 001-003, 004-006, 007-009, and 010-012

You can only post in the closing periods of consolidation intervals. These periods are known as consolidation periods.

For quarterly consolidation, the consolidation periods are 003, 006, 009, and 012.

During definition of consolidation frequencies, you must select the valid consolidation periods.

The maintenance screen lists the periods in which you can post. You can also add other periods if required (to execute weekly consolidation for instance).

There is no limit for the number of possible periods that can be included. In theory, you carry out consolidations on a daily basis if you desire.

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Fiscal Year Variant

DescriptionFYV Year-depend... Calendar Y... Number of Posting... No. of Special Peri...

AP

AQ

K4

K5

Trimester

Calendar Year, 0 SPs

Calendar Year, 4 SPs

3

12

12

12

4

12Calendar Year, 12 SPs

The fiscal year variant links the calendar year with the fiscal year. It determines the number of periods and special periods in a fiscal year. It also assigns the accounting periods in which the system can make postings to each calendar time frame.

Example: You want to consolidate monthly

Fiscal year variant K4 can be used for monthly consolidation. This variant has twelve posting periods and four special periods. When a data record with reported financial data is read, the fiscal year variant determines the posting period to which the record is written. With the K4 variant, the posting periods coincide with the months in a calendar year.

Time-dependent master data and hierarchies are saved as period-dependent data in the Master Data Framework, that is to say, without a real time-reference. A real time reference is only created in combination with the "leading fiscal year variant". All period-dependent data is stored and interpreted with reference to this fiscal year variant. The data can therefore be read and changed across applications and data bases, even if different fiscal year variants are used in the individual applications or data bases.

The default setting for the leading fiscal year variant is K4. If you want to choose a different fiscal year variant, see SAP Note 676337.

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Periodicity of Consolidation

Task 1:Data Entry

Method 1IS Data

Method 2IS Data

+Balance

Sheet Data

Method 1:Elimination of

IU Sales

Method 1:Elimination of IU

Payables and Receivables

Consolidationfrequencymonthly

Consolidationfrequencymonthly

Consolidationfrequencyquarterly

Task Hierarchy in Monitor

Task 2:Elimination of

IU Sales

Task 3:Elimination of IU

Payables and Receivables

Period cat. 1Month

Period cat. 2Quarter

Period cat. 1Month

Period cat. 2Quarter

Tasks are already installed in the Monitor ready to be run by end users.

Methods and, where necessary, document types are assigned to the tasks. You use period categories to make the assignments.

These are grouped into period category groups. Within a period category group, a period must be assigned to one specific period category.

A task can work with different methods at various stages (represented by period categories). This means for instance that the monthly data transfer can consist of income statement layouts and the quarterly data transfer of income statement and financial statement layouts.

If balance sheet layouts are only displayed quarterly, you may wish to display balance sheet elimination procedures in the monitor in quarterly periods only. This is done by assigning the consolidation frequency when assigning methods/ tasks.

For a scenario like the one described in the graphic, the date of divestiture for a consolidation unit must always coincide with the consolidation frequency of the consolidation of investments task.

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Permanent and Temporary Parameters

Parameters

Consolidation Area 20

Characteristic Value Text Display Optional

Version

Cons. Chart of Accs

Controlling Area

Group Currency

FY Variant

Fiscal YearPosting Period

CompanyCons. Group

220

20

9000

EUR

K4

2004012

Group 20

209000

Euro

Calendar Y...

Training

You use permanent parameters to delimit your data cube to within the consolidation area. You can use a consolidation area for a variety of reporting requirements. You can keep planning and actual data apart during consolidation by using different versions for a consolidation area, for example.

All Customizing settings you make are dependent on the permanent parameters.

The Customizing settings for the consolidation area determine which characteristics act as permanent parameters:

The version, group currency, fiscal year, and period are mandatory permanent parameters.

Characteristics that are not status relevant are not valid as permanent parameters (for example, FS item, subassignment, transaction type).

If you click on the floppy disk icon to save the parameters, their values apply until you make a change (permanent values). If you use the green checkmark to save the values however, the settings are only valid for the current session and are reset to the permanent values the next time you log on to the system.

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Consolidation Monitor

Cons Area Permanent Parameters

Posting StatusEnd Nodes ColumnsColumnsTest

Consolidation Monitor

Hierarchies xxxxxxxxxxxx xxx xxxx xxxxxx xxx

Hierarchies OrganizationalUnits

Task Hierarchy

Task Group Task

Status display

Version FY Period

The consolidation monitor provides an overview in graphic form of consolidation units and/or consolidation groups and tasks.

This serves as a central operation environment

for executing tasks (collecting, standardizing, and consolidating all reported financial data) as well as

for monitoring progress of tasks for each individual consolidation unit or group.

The consolidation monitor has a matrix-like structure. The standard arrangement for consolidation group hierarchies and task hierarchies is as follows:

Hierarchies of organizational units are displayed on the consolidation monitor in the rows.

The task hierarchy (which includes task groups and tasks) is displayed in the columns.

You can check status in relation to task groups and tasks for each node of the consolidation group hierarchy.

See the legend in the consolidation monitor menu for an explanation of meanings of colors and symbols/texts.

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Data Model: Summary

You are now able to:

Understand and describe the data model for BW-based consolidation.

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Exercises

Unit: Data Model Topic: Data Model

After completing these exercises, you will be able to:

• Call up the consolidation monitor and execute the basic functions in the monitor.

Your mission is to implement BW-based Consolidation at a customer site.

Become familiar with the consolidation monitor before you start portraying the customer's requirements in the consolidation system.

1-1 Call up the consolidation monitor in the SAP Easy Access menu. For this exercise set your parameters to the following values (using transaction UCPP): Consolidation area: 20

Version: 220

Currency: USD

Fiscal year: 2002

Period: 012

Save the parameters.

1-2 Expand the H1 hierarchy.

1-3 Expand task groups DATA1 and CONS.

1-4 Save your user layout.

1-5 Display the symbol legend and look at the individual status attributes.

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1-6 Collapse task group CONS.

1-7 Fix the data collection task and replace the characteristic with PrCtrGroup/Profit Center.

1-8 Completely expand the hierarchy above Profit Center.

1-9 Return to the default layout.

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Solutions

Unit: Data Model Topic: Data Model

1-1 Setting the parameters and calling up the consolidation monitor

Enter /nucpp in the transaction field.

Check the parameters and change them to the following values (if necessary).

Consolidation Area: 20

Version: 220

Currency: USD

Fiscal Year: 2002

Period: 012

Save the parameters.

Opening the consolidation monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor/

1-2 Expand hierarchy H1

Position the cursor on hierarchy H1 and click the Expand icon.

1-3 Expand task groups DATA1 and CONS

Position the cursor on the DATA1 column. Call up the context menu (right-click your mouse) and choose Expand Column. The tasks assigned to group DATA1 are listed in the columns. Proceed likewise with task group CONS.

1-4 Saving the user layout

Choose Save Layout. The portrayal of the expanded hierarchy and the expanded task groups are stored for your username.

1-5 Displaying the symbol legend

Choose Symbol / Color Key.

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1-6 Collapsing task group CONS

Position the cursor on task group CONS, open the context menu and choose Collapse Column.

1-7 Fixing the data collection task and swapping with the hierarchy of profit centers

Position the cursor in the “upload financial data” column, call up the context menu and choose Fix Characteristic and Breakdown by PrCtrGroup/Profit Center.

You will see that the display of the data collection task called “upload financial data” is fixed, and that the hierarchy of profit centers is displayed.

1-8 Expanding the hierarchy of profit centers

Position the cursor on hierarchy HPC1, open the context menu and choose Expand Column Completely.

1-9 Restoring the default layout

In the menu bar, choose Layout/Default Layout. You will see task groups DATA1 and CONS in collapsed form.

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SAP AG 2003

Master Data

Contents:

The Workbench

Version Concept

Consolidation Units and Groups.

Time Dependency of Different Hierarchies

Consolidation Chart of Accounts and Subitems

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Master Data: Objectives


Navigate around the workbench.

Explain the version concept of consolidation.

Differentiate and explain the terms item hierarchy, consolidation chart of accounts, item, and breakdown category.

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface



Reclassification and Allocation


Reporting



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SAP AG 2003

Master Data: Business Scenario

Your customer wants to consolidate planning and actual data. You have to draw up a concept for thenecessary versions and advise on the matter.

As well as dividing up the company according to ownership relations, your customer also wants to assess figures on a regional basis. Your task is to present a list of possible solutions.

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SAP AG 2003

Work Area

Messages

Documentation

Technical View

Workbench Interface

Process View

Navigation Hierarchy:CustomizingObjects

Details:CustomizingObjects

PermanentParameters1

2

3

4

5

6

Tools

The Workbench serves as the Customizing environment for your SEM-BCS system.

Customizing Views: Process view, technical view and tools (1)

You can choose between two views of the Customizing objects: Both views contain virtually the same Customizing objects, but the objects are arranged differently.

The process view has a hierarchical structure arranged in a logical Customizing sequence from a business perspective.

The technical view emphasizes the type of Customizing object (characteristics, methods, tasks and so on). It is structured according to the objects.

As well as these two views that were designed for the system structure there is also a view for the tools. This view contans tools that are used for repairing data streams, for example. You can copy the view of the tools to your system environment via Edit/ Main Navigation Settings/ Views.

Navigation Hierarchy (2)

This area displays the navigation hierarchy with appropriate Customizing objects for either the technical view or the process view. For detailed information on a Customizing object, double-click on the object (end node).

Detailed View (3)

In the detailed view you can create a technical name for a new object or select existing objects for further processing. Detailed information is displayed in the work area (4).

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SAP AG 2006

Master Data - Version

Versions V1

V2

SV1SV2SV3SV4SV5

...

...

...

Totals Data

Consolidation Area

SpecialVersions

OtherCustomizing Data

Task

The version enables parallel consolidation for different

Data categories (for example, actual, planned, target), accounting principles (for example, U.S. GAAP, IAS, HGB), simulations (for example, to see the effect of another exchange rate on the consolidated financial statements or the effect of retiring a consolidation unit on the consolidated financial statements).

In the consolidation area you can assign the role of version to one or more characteristics.

Some Customizing settings depend on versions. When you make these settings, they are stored internally as so-called special versions. These special versions allow you to use the existing settings in other consolidation versions. For example, you can use an existing currency translation for consolidating actual and planning data.

Special versions enable you to set up different consolidation versions without redundant data that differ in one or two respects, but otherwise access the same special versions. This reduces the time required to set the system for new queries

You can use the additional financial data that was defined in the context of a version in other consolidation versions. As such, you only have to enter the additional financial data once. This reduces the work required if you work with several version combinations at the same time within a consolidation area. Changes to the additional financial data are made centrally and can be processed in all consolidation versions.

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SAP AG 2003

Data Category 200 Plan - Version

Special VersionsSelected ItemsMaster Data/Attributes

ItemCompany

Master Data/Hier. StructureTranslation

Method AssignmentsExchange rates

ReclassificationMethod AssignmentsInvestment Tax Rates

IUE - Method Assignments Alloc - Method Assignments

100

100100 Actual - Version

200100100200

Valuation PC Profit - Center

100100

Acctg Principles 100 IAS

Maintenance of Versions: Special Versions Detailed View

Actual - Version

Actual - Version

Actual - Version

Actual - Version

Actual - VersionActual - Version

Plan - Version

Plan - Version

inherited via rule

Customizing settings are contained in special versions. You define your consolidation group hierarchy in actual version 100. The structural information (which company is allocated to which consolidation group) is saved as special version 100 for the Company characteristic. In your plan version, you want to consolidate on the same group structure planning data. You use the special version 100 for the company characteristic in your plan version. If a company is divested, this modifies the CG hierarchy in special version 100 for the company characteristic.

Because consolidation versions 100 and 200 both access the same special version 100 of Company, a change to the group structure need only be undertaken once. This is available for all consolidation versions that access special version 100 for the company characteristic.

When a new consolidation version is created, the system assumes the value 100 as standard setting for each special version. If you want to use customizing settings from another version, you need to set this as the special version.

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SAP AG 2003

Version Maintenance: Permitted Combinations

Acctg PrinciplesValuationData Category

ActualActualPlanningPlanningForecast...

Cons Area 01 Companies and Profit Centers

GroupGroupGroupProfit CenterProfit Center...

U.S. GAAPGerman HGBU.S. GAAPU.S. GAAPU.S. GAAP...

Per valuecombination:Maintenanceof Special Versions

In this example there are three characteristics to which the role of version has been assigned (data category, valuation, accounting principles).

Characteristic values for the data category could be: Actual, planning, and target

Characteristic values for the valuation could be: Group and profit center

Characteristic values for the accounting principles could be: U.S. GAAP and German HGB

Make the following entries for each version combination:

Consolidation frequency and posting behavior when a task is executed repeatedly (if the documents from the last posting run are deleted or reversed).

Determine the characteristics (such as item hierarchies) for which data can be entered at the hierarchy node. For example, if you want to enter planning data at hierarchy nodes (in other words, on totals items) so that you can distribute it later using an allocation task, set the relevant indicator in the Customizing settings for the version combinations. The indicator is valid for both manual data entry and data entry by flexible upload. If necessary, specify a method for validating the totals data.

You can use a maximum of 10 characteristics with the role of "version" in a consolidation area. See SAP Note 608018.

Assign the special versions you require to each version combination. To do this, use a default rule. (All special versions are set to 100 in the standard system.)

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Dependency of Special Versions I

Legal Consolidation...

Version 100Actual Data

Version 200Plan Data



Management ConsolidationCA2

usefulnot useful

Special VersionInterunit Elimination

Methods

The limit for using special versions is the consolidation area (tasks/methods)

CA1


Methods


Methods


Methods

The above example shows external consolidation (on the company object) and internal consolidation (on any internal organizational unit such as profit center) in two consolidation areas. The example uses special versions of tasks and methods.

Both current and planning data are stored and processed separately in the consolidation versions.

If an interunit elimination method is defined for instance, the settings are encapsulated and used in a special version and can be used with other consolidation versions. Special versions for tasks and methods are compounded to the consolidation area however. This means an interunit elimination method which has been defined in CA1 can be used in all versions of this consolidation area. It is not technically possible to use this in another consolidation area however.

If you are working with more than one consolidation area, settings must be made for methods are rendered redundant, as special versions, in which these settings are encapsulated cannot be used in another consolidation area. The consolidation area may be seen as a limit that cannot overcome special versions of tasks and methods.

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SAP AG 2003

Dependency of Special Versions II

Legal Consolidation...





Management ConsolidationCA2

Hierarchy Version

Consolidation area is not a limit for hierarchies

CA1

Hierarchy Version Hierarchy Version Hierarchy Version

useful

The above example shows external consolidation (on the company object) and internal consolidation (on any internal organizational unit such as profit center) in two consolidation areas. The special hierarchy versions are shown here.

Hierarchy versions are not compounded to the consolidation area. Hierarchies are their own data base tables for an InfoObject and therefore depend directly on the master record of the InfoObject. They exist as a hierarchy for a characteristic, meaning they can be seen as being independent of a data basis or consolidation area.

Consequently you can employ consolidation areas to use hierarchies in other consolidation areas like in the special company and profit center hierarchy in the training example. When a hierarchy has been loaded in the system once for an InfoObject, this can be used in any consolidation area like the consolidation units hierarchy.

The above also applies to all hierarchies defined in BW as a characteristic. However, this does not apply SEM-BCS hierarchies such as tasks hierarchies.

Hierarchy maintenance (create/change) can be carried out either in BCS or BW. You can find further details on special hierarchy versions in the section on the consolidated chart of accounts contained in this unit.

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SAP AG 2006

Consolidation Unit

Version

Hierarchy

Consolidation Group

Cons. Group

Cons. Unit

Master DataLocal CurrencyFiscal Year Variant

CorrespondenceName

Address

Telecommunication

The consolidation unit is the smallest group structure element that can be used as a basis for consolidation.

You can use the characteristic role consolidation unit for the characteristics company, profit center, business area, plant, and so on.

Internal business transactions are conducted between consolidation units and then eliminated by consolidation tasks. A consolidation unit can act either as a triggering consolidation unit or partner unit in a business transaction.

If you want to use more than one characteristic with the consolidation unit role, you need to specify which consolidation unit is the currency-bearing unit (that determines the local currency) in the Customizing settings for the data basis. You define the characteristic value local currency in the master record of the currency-bearing consolidation unit.

You can add more detailed information to the unit master record by including attributes in the InfoObject master (attributes tab page in the InfoObject master). When the data basis has been generated, the system reads the attributes from the InfoObject master and transfers them to the unit master record. You can practice this in the training system using the ProfitCenter master.

The attributes are available as of Release SEM-BCS 4.0. (For example, only select a reclassification function if the type of company attribute contains the value production company in the unit master.)

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SAP AG 2003

Currency-Bearing Consolidation Unit

Property Currency-Bearing Characteristic with Consolidation Unit Role

Non-Currency-Bearing Characteristic withConsolidation Unit Role

Role not version and time dependent.

Characteristic always has value in transaction data (value is never initial).

Characteristic determines local currency (currency-bearing).

Currency translation methods assigned to characteristic.

Characteristic is status relevant.

Total of all balance sheet and income statement itemsmust be zero.

Characteristic has partner subassignment.

Transaction data can be summarized in relation to characteristicand summary value is useful.

x

x

x

x

x

x

x

x

x

x

x

x

x

x

The currency-bearing consolidation unit can be the company, the profit center, or another characteristic to which the consolidation unit role has been assigned.

The local currency field appears only in the master record of the currency-bearing consolidation unit. This field is used to control the participation of a unit in the currency-translation function.

If the currency-bearing consolidation unit role is assigned to the company, then all the company's profit centers must provide their financial data in the company's local currency.

The currency-bearing consolidation unit property is not dependent on version. This means that, in another consolidation version, which uses the same InfoObject as a consolidation unit, no changes can be made to the currency-bearing unit.

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SAP AG 2003

Consolidation Group

Hierarchyassignedconsolidation units

Dates of first cons. and divestiture

Hierarchy

Consolidation UnitCG G2

Consolidation Group G1Consolidation UnitCU A


A consolidation group is an arbitrary group of multiple consolidation units and/or other consolidation groups created for the purposes of consolidation and reporting.

You can use the characteristic with the consolidation group role to model the structure of your corporate group. Depending on the complexity of your group, you can do the following:

Group the consolidation units into a consolidation group. This creates a flat hierarchy across all consolidation units.

Create multiple consolidation groups and arrange them into a consolidation group hierarchy. This creates a multilevel hierarchy. This can be used for U.S. GAAP segments for example.

Build multiple parallel hierarchies of consolidation groups for structuring organizational units according to different perspectives (regional or product-specific for instance). This creates several, parallel hierarchies side by side. A consolidation unit characteristic can appear in multiple hierarchies. Data collection and standardization for the consolidation unit characteristic takes place at posting level 10. Elimination entries (at level 20 or higher) can be made for each group where the company and partner company occur.

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SAP AG 2006

Time Dependency of Group Hierarchy

CG 0CG 1

CU A

CU A

CU C

CU X

CU Y

CU ZUnit Z Assignment:dependent on version, year, and period New for 001/2006

CG 2

Hierarchies are defined as version-dependent. (Definition of hierarchies takes place in a consolidation version. In the background, the system stores the hierarchy information in a special version.)

The assignments (between higher-level and lower-level nodes) are time-dependent within each version; that is, there is an effective from year/period and an effective until year/period.

If, therefore, you have a consolidation unit hierarchy in the period 001/2005 and the consolidation unit CU Z in the period 001/2006, then the whole hierarchy will not change in 001/2006, just the CG 2 node.

When maintaining a hierarchy of characteristics in SAP NetWeaver BI, you can specify which of the following is time-dependent:

The entire hierarchy

The hierarchy structure

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SAP AG 2003

Item

AssetsNon-current AssetsCurrent Assets

Equity & Liabilities......

Nodes Not Allocated............

Maintained Hierarchies(values: "assigned" and"used")

List of values usedbut not yet assigned to a hierarchy.

Hierarchies of Items

SEM is a distributed system. This means even master data for a characteristic is stored distributedly. The following options are available for master data storage:

Storage in the Business Information Warehouse (BW)

Storage in SEM

Storage partly in BW and partly in SEM

You can maintain master data and consolidation hierarchies centrally in the SEM system. The SEM system writes master data directly to the BW system. The aim is to harmonize master data between BW and the BCS system.

You can create hierarchies for almost all characteristics. You can create a hierarchy for this characteristic in SEM-BCS as long as the characteristic is preset for a hierarchy in BW (that is, the characteristic's hierarchy indicator in BW is selected).

Hierarchies cannot be created for some characteristics, such as methods and breakdown categories. These involve BCS data only.

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SAP AG 2003

Master Data: Consolidation Charts of Accounts

Item 12110300Description

Item Type

ShortLong

Machinery & Equip.Machinery and Equipment

EntryDebit/Credit Sign

Block Posting and Data EntryBalance Sheet+

Breakdown Category 1000

Items are the basis for entering values, posting and evaluation in consolidation. Items can best be compared to group accounts in the general ledger.

Items depend on the consolidation chart of accounts and are only valid for the consolidation chart of accounts for which they were created. The consolidation chart of accounts has a fixed value in the consolidation area.

Items are used not just for amounts relevant for accounting from balance sheets, income statements, or retained earnings appropriations. You can also use them to manage statistical records (such as the employee status for each unit).

The characteristics of an item are determined by the following:

Item type

Debit/credit sign

Breakdown category

Posting and data entry block

The assignment of the breakdown category to an item and the special items in the special version "account assignment" are saved. SEM-BCS does not support the version-dependent item breakdown function, however. The assignment is therefore saved independently of the version. See SAP Note 681380.

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SAP AG 2006

Master Data: Consolidation Charts of Accounts

Breakdown Cat. 1000

Brkdowns Default Selection

Characteristic Brkd.Type

Required: Default used if nothing is entered

Fixed Va.Partner Company

Partner Cons. PCMovement Type

Functional AreaPer. 1. AdditionAcq. YearAlloc. Company

No breakdownNo breakdown

No breakdownNo breakdownNo breakdownNo breakdown

Alloc. Cons PCInvestee Unit

Investee PCCurrency

Unit of Measure

No breakdownNo breakdownNo breakdownNo breakdownNo breakdown

Should you require other business information (subassignments) such as movement type, region and so on, you can assign a breakdown category in the master data record. The breakdown category controls which information is provided from the consolidation units.

Any characteristic can be used as a subassignment (depending on the data model). Deriving revenue using the region characteristic is therefore useful if you want to assess how revenue is distributed regionally.

In the above example the movement type is set, meaning that data is collected only for this one movement type for items where the breakdown category 1000 has been assigned. This means an asset history sheet can be generated.

There is a special role for account assignments of partner units in a matrix consolidation (two characteristics with the consolidation unit role exist in the consolidation area used.) If you want to view a report on an item along with partner information, the system will insist you report on both partners. It is not possible to designate item drilldown for a partner company and not for a partner profit center. You can control the sharpness of the drilldown types however. You could have drilldown for partner company using drilldown type 4 and drilldown for partner profit center using drilldown type 2 for instance if you wanted to work with incomplete details for the partner profit center.

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SAP AG 2006

Transfer of Master Data from Operational Feeder Systems

BISEM-BCS

InfoObject: 0CS_ItemSetting: With text x

Long text x

190100

130100

Key

1000 Receivable

Role: Item

0010

BreakdownType

Long text

Assets

Maintenance in Consolidation Workbench Maintenance in BIAutomatic

Synchronization

Number

130100

190100

Text

Long

Receivable

Assets

Itemtype

Sign

1 +

1 +

The consolidation chart of accounts above has been derived from the group accounts. A new group account was defined and postings made to it. The chart of accounts can be updated in BCS using two methods.

Either master data is created in BCS itself or is drawn from feeder operational systems using extractors. You can use extractors to provide characteristic values for all InfoObjects in SAP NetWeaver BI. However, we recommend that you create the master data in BCS and use the automatic synchronization of InfoObjects in SAP NetWeaver BI. The use of extractor technology is problematic, except in the case of subassignments and attributes created by the customer. For more information, see the SAP Note 689229.

To manage master data, the SEM-BCS application uses the Financials Basis Master Data Framework and two parallel storage locations there for master data and hierarchies.

1. A so-called "local" storage location in generated shadow tables in the ABAP Dictionary (leading storage location).

2. The additional storage location in the connected SAP NetWeaver BI system.

The advantage of double storage is fast read access to data (without Remote Function Call) in SEM-BCS and the availability of master data and hierarchies in SAP NetWeaver BI, where they are required in InfoCubes and queries. The disadvantage is that data redundancy can lead to asynchronous data sets. However, if you use SEM-BCS as normal, you ensure that all on-line changes to the data are saved synchronously to the local storage location and to SAP NetWeaver BI.

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SAP AG 2006

Examples of Consolidation Charts of Accounts

Legal Framework Industry Income Statement Procedure

Appropriation of Returned Earnings

US GAAP Industrial Cost of Sales Accounting

ARE in Balance Sheet

EU Directives Industrial PeriodAccounting

ARE in Income Statement

EU Directives Industrial PeriodAccounting

ARE in Balance Sheet

EU Directives Banking ARE in Income Statement

JapaneseAccountingPrinciples

Industrial Cost of Sales Accounting

ARE in Income Statement

The consolidation chart of accounts is a systematic directory for structuring financial statement items. Items are stored in the consolidation system in the form of hierarchies. For example, a consolidation chart of accounts can have a hierarchy of balance sheet items and a hierarchy of income statement items. This hierarchy information can be accessed for reporting.

The consolidation chart of accounts is not dependent on any other data or characteristics.

Many settings are dependent on the chart of accounts, however. For example, the interunit elimination and currency translation tasks have methods that are set up within the framework of the consolidation chart of accounts.

Only one consolidation chart of accounts is possible for each consolidation area. The independent characteristic consolidation chart of accounts must be uniquely defined in the consolidation area.

SAP provides Standard Business Content for SEM-BCS. This includes various charts of accounts. Further information on the standard delivered content can be found in Note 859893 for Release 6.0.

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SAP AG 2003

Master Data: Summary


Navigate around the workbench.

Prepare and explain a version concept.

Differentiate and explain the terms item hierarchy, consolidation chart of accounts, item, and breakdown category.

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Exercises

Unit: Master Data Topic: Master Data


Describe the consolidation data model.

One of your co-workers has already activated the InfoCube from within the business content of the SAP Business Information Warehouse, and has created a data basis and a consolidation area. Your co-worker has also completed the role assignment and loaded the consolidation chart of accounts. Your customer wants to consolidate companies and profit centers in parallel in one data record, and has already created the consolidation units.

1-1 Go to the technical view and look at data basis 99

1-1-1 Which InfoCube is data basis 99 based on?

1-1-2 Can more than one data stream be active in a data basis?

1-1-3 What is the purpose of the virtual InfoCube?

1-2 Find the reclassification method in the process view and in the technical view of the workbench, noticing the different arrangement in each view but access to the same method.

1-3 Having worked in consolidation area 20 to this point, you should now go to your group-specific consolidation area. Set your parameters. Use your group number for the consolidation area; version 2XX; group currency USD; period 12/2002

(group number = consolidation area 01 [group 01] through consolidation area 18 [group 18];

Version 2XX: XX represents your group number. The version will be entered automatically since it has already been set in the consolidation area. Save these parameters by using the floppy disk icon.

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1-4 Go to the consolidation area.

1-4-1 Explain the term "role" to your colleague.

1-4-2 Which requirements must reported financial data meet to enable simultaneous consolidation of both profit centers and companies?

1-5 Find the Machinery and Equipment item

1-5-1 Which breakdown category was assigned to the Machinery and Equipment item? Call up the item and show the breakdown category.

1-5-2 Find the default value for the movement type characteristic

1-6 Changes to breakdown categories

1-6-1 Change the existing breakdown category 1105 so that the breakdown is performed with breakdown type “Breakdown required: Entry is forced, default allowed” by both investee units. Apart from that, the investment percentage has to be reported for items to which this breakdown category is assigned. The investment percentage is processed via a quantity entry with a constant VAL value. Use the same breakdown type.

1-6-2 Change the existing breakdown category 1205 so that the breakdown is performed with breakdown type "Breakdown required: Entry is forced, default allowed" by both investee units. Apart from that, the investment percentage has to be reported for items to which this breakdown category is assigned. The investment percentage is processed via a quantity entry with a constant VAL value. Use the same breakdown type.

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Solutions

Unit: Master Data Topic: Master Data

1-1 Displaying the master data

Strategic Enterprise Management / Business Consolidation / Consolidation Workbench / Data Model / Data Basis / <call up data basis 99 in the customizing details> 1-1-1 Which InfoCube is data basis 99 based on?

On the Data Streams tab page, the data basis shows that YBCS_C10 is the associated InfoCube for totals data. You also see the associated virtual InfoCube YBCS_C1V1.

1-1-2 Can more than one data stream be active in a data basis?

Yes, there can be several active data streams in one data basis. This will be the case in most situations since the data for the individual functions of consolidation are stored in separate ODS objects rather than in the totals cube. For example, this includes the journal entries for documents and the inventory and supplier data for the elimination of interunit profit/loss in inventory.

1-1-3 What is the purpose of the virtual InfoCube?

The virtual cube is needed for the special selection logic for consolidated data records. It selects which document is shown for the given query condition or which document is excluded from the selection. (For example, an elimination document may be valid in consolidation group Europe, but not in consolidation group USA. The virtual cube performs the selection of data records.)

1-2 Searching the reclassification method in the process view and technical view

Process view:

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench / Consolidation Functions / Reclassification The process view shows you the method for reclassification along with the task and the document type. Thus, all objects that need to be set up for reclassifications are listed together.

Technical view:

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench / Technical View / Method / Reclassification The Methods folder in the technical view shows you all methods you can use in consolidation. One of these methods is reclassification.

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1-3 Setting the parameters

Choose Environment / Parameters in the menu bar.

Consolidation Area: <your group number>

Version: 200 + group number (is automatically taken from the consolidation area).

Group Currency: USD

Fiscal Year: 2002

Posting Period: 012

Save these settings as permanent using the floppy disk symbol. This way, you only need to set the parameters once. The parameters are saved with your user name and remain unchanged unless you change them again.

1-4 Navigating to the consolidation area

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench / Data Model / Consolidation Area / <call up your group's consolidation area in the customizing details>

Calling up your consolidation area under data basis 99 1-4-1 The role defines the semantics of characteristics and key figures on which the

consolidation functions are based. Each key figure and each characteristic has a role assignment per data basis. A characteristic or key figure can use different roles in different data bases (each of which is created on different InfoCubes). For example, InfoObject 0Company takes the role of a consolidation unit, which ensures that this object takes part in the interunit elimination.

1-4-2 If you use matrix consolidation consisting of companies and profit centers, then each data record (in the reported financial data or the elimination records) must contain the Company and Profit Center characteristics (both with the Consolidation Unit role). If some data records contain partner relationships, not only must the Partner Company be assigned, but the Partner Profit Center must also be reported. If the Consolidation Unit role is assigned twice within one consolidation area, then the system requires two matching Partner role assignments.

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1-5 Calling up the Machinery and Equipment item

Strategic Enterprise Management / Business Consolidation / Consolidation Workbench / Master Data / Items

1-5-1 You can search the item using the binoculars symbol and type in *Machinery*. Select Pattern and select the displayed item. The master data of the item is displayed in the right-hand window. With Show Breakdown Category you can display the details of the breakdown category. (Breakdown category 1000)

1-5-2 Displaying the default values

Strategic Enterprise Management/ Business Consolidation/ Business Consolidation Workbench / Master Data / Subassignments / Default Values Here you can see the default values of any characteristic that uses the role subassignment, movement type, or partner unit. Depending on the breakdown type, the system automatically fills in this value in the data record.

For breakdown category 1000 with the breakdown movement type, the system uses the default value 999 for the movement type.

1-6 Changes to breakdown categories

Strategic Enterprise Management / Business Consolidation / Business Consolidation Workbench / Master Data / Subassignments / Breakdown Cat.

1-6-1 Change the existing breakdown category 1105 so that the breakdown is performed with breakdown type "Breakdown required: Entry is forced, default allowed" by both investee units. Use the binoculars symbol to find breakdown category 1105. Double-click the master record to open it. Enable the Investee (Company) and Investee (Profit Center) characteristics with breakdown type "Breakdown required: entry is forced, default allowed". Use the Display All Characteristics icon to see all subassignments available. Apart from that, the investment percentage has to be reported for items to which this breakdown category is assigned. The investment percentage is processed via a quantity entry with a constant VAL value. Use the same breakdown type. Enable the Unit of Measure characteristic with breakdown type "Breakdown required: entry is forced, default allowed." Specify the unit of measure named "VAL" in the constant value field.

1-6-2 Now change 1205 also. Double-click the master record to open it. Enable the Investee (Company) and Investee (Profit Center) characteristics with breakdown type "Breakdown required: Entry is forced, default allowed".Use the Display All Characteristics icon to see all subassignments available. Enable the Unit of Measure characteristic with breakdown type "Breakdown required: Entry is forced, default allowed." Specify the unit of measure named "VAL" in the constant value field.

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SAP AG 2003

Data Collection and Standardizing Entries

Contents:

Data Collection Method

Validation

Manual Standardizing Entries

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SAP AG 2003


Set up a flexible upload for loading master data and reported data to SEM-BCS.

Create a validation

Define manual document types for posting standardizingentries.

Create and evaluate the period initialization task

Data Collection and Standardizing Entries: Objectives

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface





Reporting



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SAP AG 2003

Reported financial data need to be imported into the consolidation system using manual entry and the flexible upload data transfer method.

When you have entered the data, you need to validate the individual financial statements for completeness.

Since statements for subsidiaries are created using accounting principles that are different to those for the parent company, standardizing entries need to be made for the reported data.

Data Collection and Standardizing Entries: Business Scenario

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SAP AG 2006

Data Transfer Methods

SEM-BCS

Load fromData Stream

ManualEntry

Layout

FlexibleUpload Copy

As of release SEM-BCS 4.0, you can use various methods to collect data. The two methods "load from data stream" and "copy" are new.

Loading data from the data stream allows you to move reported financial data that has already been stored in the BW system to the totals cube.

All data collection methods check whether the data meets your business requirements before storing it. For example, the master record for the item determines the business information you request from subsidiaries for entering reported financial data. The data is only stored in the target if it is of a high enough quality to meet your requirements.

With the flexible upload and the load from data stream you can make provide financial data, additional financial data, master data and documents for the SEM-BCS system.

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SAP AG 2003

Flexible Upload (1)

Data Type Reported Financial Data

Settings Field Catalog Selection

Use External Field CatalogLength

Field CatalogHeader

Data Rows

Remaining Rows

Group CurrencyVersionFiscal YearPosting PeriodCons. Chart of AccsControlling AreaFiscal Year Variant

Transaction CurrencyItemCompanyProfit CenterPartner CompanyPartner Profit CenterFunctional AreaCountryTransaction Type

Investee (Company)Investee (CPC)Per. 1. AcquisitionAcquisition YearAlloc. CompanyAlloc. Profit CenterUnit of MeasureLocal CurrencyFree Field

You can use the flexible upload to import reported financial data, additional financial data and master data from a data file into the consolidation system. You trigger the upload of the reported financial data using the monitor. This is the only way to ensure there is connection with the status management system.

Determine the structure of the data rows by fixing the order of the characteristics used. The field catalog contains all the consolidation area characteristics. In the data column, you replicate the file you want to import into the consolidation system using flexible upload.

You also have the option of using a so-called free field. You can assign as many free fields as you like. When the flexible upload is executed, the free field column in the file is not interpreted. This also enables the system to process files that contain data not related to consolidation, and means you do not have to process the file manually.

When uploading from a field catalog, you also have the option of using mapping. In this case, the file structure no longer has to correspond with the structure of the data basis. Rather, you can assign a BW InfoObjectCatalog that acts as the data structure description for the file here. You specify this InfoObjectCatalog in Customizing for the data basis. If you use an external field catalog, you have to specify how you want to map the data structure for the file to the structure for the data basis. In the selection you can also determine the files that are selected and the area in which the data basis is written.

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SAP AG 2006

Flexible Upload II

Settings Field Catalog

Column Width

Row Types

Digit Separation

Update Mode

Inclusion of Sign Attributes

Input Type

Fixed

Variable

Header and Data Rows

Use Row Type Indicators

Decimal Point (1,000.00)

Decimal Comma (1.000,00)

Existing Settings

Item

Movement Type

PeriodicCumulative

Column Separator Tab Character

Comment Row

Overwrite

Selection

Column Width: You can choose between a fixed and a variable column width. If you choose the variable column width option the fields will be separated from one another by a column separator.

Row Types: When you use row type indicators, every row (except for comment rows) must begin with a valid indicator. If you use field separators, the indicator must be separated from the first data field accordingly. If you do not use any row type indicators, the first non-comment row is interpreted as the header row, and all subsequent rows as data rows.

Inclusion of Sign Attributes: You can determine whether the system takes account of the debit/credit sign attributes specified in the Customizing settings for items and movement types. If you choose this option, the system includes the debit/credit sign for characteristic values before it posts them.

Input Type: You can determine whether the collection of reported financial data is cumulative or periodic: Periodic values reflect the values of the current accounting period. Consequently, they represent the changes since the last reported financial data was entered. Cumulative values reflect the accumulated values as of the current date. However, the system stores the values as periodic values after automatically calculating the differences to the prior period balance.

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SAP AG 2003

Transfer of Data Entry to Monitor

Method Collect.1 Data Transfer 1Data Stream Data Transfer

MethodMethod/Data EntryGroup

Document Type

...

Totals RecordsTotals Records

Inventory DataSupplier Data

Man. Data EntryFlex. Upload

Man. Data Entry

Data Entry Gp. 100FlexUpl01

... ... ............

Cons Area LC Version 100 Period/Year 003 / 2003Task DT 10

NameShortMedium

Data Transfer 1Data Transfer 1

Consolidation Frequency Ass. Consolidation Frequency YearlyPeriod Category AssignmentPeriod Category YearMethod AssignmentsMethod depends on ConsUnit

Cons Unit Method Medium textC1000 DT1 Data Transfer 1C2000 DT2 Data Transfer 1C2200 DT2 Data Transfer 2

When defining a data collection method, you choose manual data entry and assign a data entry group with one or more data entry layouts.

The data transfer method can consist of different data transfer procedures. Using flexible upload for the majority of data records and data transfer for the rest represents a sensible combination of data entry techniques for instance.

You can also assign a document type for manual standardizing entries with the data transfer method.

If more than one data transfer procedure is assigned to a data transfer method, an options template appears when the task is started in the consolidation monitor. This contains all data transfer procedures available.

You assign the data transfer method to a consolidation unit. This enables you to control the data collection method for specific units.

You can also control the time of the period category in task definition.

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SAP AG 2003

Structure of the Consolidation Monitor

Task Group 1

Task A

Task B

Task C

Task Group 2

Task X

Task Y

Task Z

Task (Root Node)

(Node)

(Node)

(End Node)

(End Node)

(End Node)

Tasks are assigneddependent on the version, starting year and period

For the characteristic task there is a single hierarchy with nodes that depend on the version, starting year, and starting period. In other words, there is exactly one root node on which the overall status of the task is managed in the consolidation monitor. The end nodes of the hierarchy are tasks, while the nodes are task groups.

A task can be executed if the period specified by the parameters is a consolidation period (see consolidation frequency). When a task is executed, the system determines the associated method and document type.

To task: You can use the to task function to personalize the consolidation monitor. In the consolidation monitor, SEM-BCS displays the task group from the first task in the task sequence as far as the so-called to task. The system also executes the tasks in this order. All the other tasks that are still assigned to the group are not displayed. The task sequence is T1, T2, T3, T4, T5, T6, T7. The restricted task group should appear as follows: T1, T2, T3. You therefore choose T3 as the to task. The personalization object R_BCS_LIMITED_TASKGROUP enables you to personalize "role maintenance" (PFCG) as well as "user maintenance" (SU01).

You can execute all tasks in a task hierarchy in the consolidation monitor.

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SAP AG 2003


Period Initialization

Data Entry

Copy Task

Validation of Fin. Reporting Data

Entry of Add. Fin. Reporting Data for Consolidation of Investments


Reconciliations

Manual Postings

Reclassification

Allocation

Preparations for Consolidation Group Changes

1 2 3 4 5 6 7 8 9

Task Group:

Required Sequence

X

X

X

X

• Tasks within a given block can be executed in any order.• The sequence of equal-ranking tasks can be controlled in the monitor.

User-defined

sequence

Sequence of Tasks in the Monitor

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X X X

X

X X X

X X X X X

X X X

You must execute the consolidation monitor tasks in a specific order.

The sequence is saved dependent on the task hierarchy. Each consolidation area can only have one task group hierarchy.

The sequence structured by the system ensures that you can only execute tasks in a logical order from a business perspective.

Inside the system the tasks are divided into blocks, as the above graphic shows. A set of tasks belonging to any given block can be executed in any order. This is controlled by the order in the task group.

You can assign your own tasks to any point in the task hierarchy. .

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How the Read From Data Stream Interface Works

Source Data Basis Data Basis

Source field -> target fieldschanges through- Mapping and BAdlinterface

Read Data Adjust Data Write Reporting Data

As of release SEM-BCS 4.0, you can use the "read" from data stream interface to transfer reported financial data.

The transfer can be broken down into three theoretical parts.

From where is the data read (data source)?

Which data is read from the source and how is the data transformed?

Is the data written to the totals cube of your data basis?

The master record validation routines are run in the "read from data stream" interface. These guarantee the quality of the reported financial data. Additionally, technical characteristics that are not present in the sender record are included in the consolidation data record. Thus the posting level is continually added to and given the characteristic value 00, for example. You can therefore ensure that the quality of the data is the same when you use this interface as it is with the flexible upload.

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SAP AG 2003

Data Source for Interface 'Read from Data Stream'

Data Streams Attributes Authorization Check Column Headings

RFC Destination

InfoObjectCatalog for Characteristics

InfoObjectCatalog for Key Figures

InfoProvider NameOPCA_C01 PCA: Transaction Data

In the data basis you specify the InfoProvider from which you want to read data.

The data source from which you extract the reported financial data can be either another InfoCube or an ODS object. The reported financial data usually arrives in these data containers by means of data extraction or flat file transfer.

To create real-time integration with an operative SAP system, attach a RemoteCube as the InfoProvider with a DataSource that references the corresponding operative source system.

As well as the InfoProvider, you can define a field catalog for key figures and characteristics here for the "flexible upload with external field catalog" interface. You have to maintain this catalog in the BW system beforehand. The "flexible upload with external field catalog" interface also uses the mapping structures described in the slides that follow.

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SAP AG 2003

Interface for Field Mapping

MethodData Type

LDS | Load from data stream1Reported financial data

………… Mapping …………

Details

Target Field ItemOperator Move

Delete space

.. .. .. .. Generate default ?

VersionConsolidation UnitPartner UnitInvestee UnitItem

Condition ...Move …Condition ...Move …

SubitemSubitem CategoryPeriodic Value in LCPeriodic Value TCGroup Currency…

Target Field Operator Descr.

Move …

……………

……………

Conv.ExitLengthOffsetSource field

Value

Field mapping lies at the heart of "read from data stream" data transfer. Here, you can adapt characteristics and their values from the sender record to the data structures in your SEM-BCS system.

There are two tools you can use to adapt the structure of the data source to the structure of the consolidation - the mapping tool and the BAdI.

The BAdI is an exit that maps custom program logic. The BAdI logic can also be used in a flexible upload. You use the BAdI (report UC_CONVERSION_UPL) when you want to perform mapping activities that "normal" mapping does not support, such as mapping with the source field: target field ratio of 1: n.

Both mapping and BAdI conversion routines can be processed consecutively in one loading process. SEM-BCS interprets the mapping routine first, followed by the custom BAdI. To configure a BAdI you require programming knowledge.

Use the option of allowing the system to generate default values for mapping first. When you are working with content objects in particular, SEM-BCS can often recognize the matching BCS objects on the basis of the sender structures and generate default mapping settings.

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Field Mapping Features

Source Data Basis

BCS Data Basis

Source Field

Target Field

Currency

If currency type 10then

value in local currency

Mapping has the following subfunctions: Condition, move, reassignment.

If you are working with a condition, an operator such as move or reassignment must follow.

You can name the mapping rules for a characteristic and use them again for a characteristic that has the same master data (the characteristic is based on the same basis characteristic) in the same, or in a different consolidation area.

You can use tools such as offset or length within the subfunctions move or reassignment. This allows you to transfer an 18 digit item to a 10 digit item number, for example. (You would enter length = 10 and offset = 8 in the details for the move.) As a result, only the last 10 digits of the source characteristic would be read. The first 8 digits are ignored when the data is updated.

You can work with constants in a move too. In the training example, you could give the constant 20 to the target characteristic consolidation chart of accounts.

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Example of a Condition

Settings Mapping Selection

Generate DefaultReceiver Field Operator Description

Char.GCLC

ConditionMove

TCAccounting SystemAllocation (GC)

Condition SxSRC-\Condition SxSRC-\Condition SxSRC-\

GeneralTarget Field Local Currency

Operator Condition

Char. Val. NameSxSrc Curr. Type 10 10

General

Target Field

Operator

Local Currency

Move

Delete Blank Characters

Attribute Allocation with Sep/Index

Constant Source Field in Mapping Offset Length Conv.Exit

Currency

The mapping for filling the local currency field consists of a condition and a move. Both parts must be read from the inside out in a business sense. The move determines that the source field "currency" is transferred to the target field "local currency" for consolidation. As there are several entries in the currency field in the sender system, an additional characteristic is brought in to distinguish the group currency or transaction currency. In the sender system the "currency type" characteristic determines the currency. Currency type "10" represents the company code currency and is therefore interpreted as the local currency value from an SEM-BCS perspective.

To create the mapping rules you first have to define the condition (if currency type 10 is found in the sender data record) and then set up the move. Here the move comprises the currency characteristic.

An operator always follows a condition. The syntax of a mapping rule recognizes operators as the move and the reassignment of a characteristic. Mapping rules that have already been established can be reused for other characteristics.

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SAP AG 2006

Selection Task

MethodData Type

12091 Totals (Modify, W/O TCKey)Rep. Fin. Data

Settings Mapping Selection

Selection of Source Selection of Target

Character Value Description Character Value DescriptionItem ITEM1 Bd by MT, TCKey, Fun

The Selection tab page is used for two activities:

You define the area from the source InfoProvider from which the data is to be read. The system includes the field mapping for the status-relevant characteristics and selects the maximum data set to be selected. This setting is strongly related to system performance; the system is only able to select those data sets from the source for which you have defined a rule for in mapping.

By defining the target area, you can determine which consolidation unit data can be changed. To do this, use the item characteristic and, where necessary, the subitem to restrict the selection. If your update mode (Settings tab page) is set to "Delete All", a new data transfer only deletes the data sets that match your definition of a target area.

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At the conclusion of this topic, you will be able to:

Define manual data entry layouts and use them to generate reported financial data.

Manual Data Entry

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Relationship Between Participating Objects

Data Entry Hierarchy

Data Entry Group

Data Entry Layout

Form

Row Structure Column Structure

1 : n

1 : n

1 : 1

1 : 1 1 : 1

Structure

1 : n

Structure

1 : n

A data entry layout consists of a form.

A form in turn consists of row structures and column structures.

When you create a form, the system automatically creates nodes for the row and column structures in the object tree. Below these nodes you can create new row or column structures or assign existing row and column structures. You need these row and column structures to get a data entry matrix with data rows and columns (see illustration above).

The data entry layout is assigned to a data entry group. This in turn only exists in combination with a data entry hierarchy. The data entry hierarchy is assigned to the data transfer method. All the (time-dependent) data entry layouts are now available in the consolidation monitor for you to enter individual financial statements.

For information about performance aspects of the layout definition and restrictions on combining individual structure elements in a form, see SAP Note 630474.

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SAP AG 2003

Example of a Data Entry Layout

Item Partner TC TC LC4711 C2000 CAD 150 100

USD 90 100JPY 350 100

C3000 CAD 150 100

USD 90 100JPY 350 100

4712 C2000 CAD 150 100

USD 90 100JPY 350 100

Header Rows

Data Columns

Header Rows

Data Cells

TC LC250 200

190 200450 200

250 200

190 200450 200

250 200

190 200450 200

2004 2005Period

You can collect reported financial data manually in SEM-BCS using data entry layouts.

Data collection can be cumulative or periodical. You can specify this individually for each layout.

The layout above consists of guidance columns for users and data columns for entering consolidation values.

Data collection can be carried out in local, transaction and groups currencies, or in amounts. Comparative values from previous fiscal years can also be shown.

If reported financial data has been saved in the totals cube using flexible upload, this can be processed manually afterwards using data entry layouts. This is achieved technically using posting level 00. Further information on posting levels can be found in this unit.

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SAP AG 2003

Customizing Manual Data Entry Layouts

Process View

...

...Data Collection

...

...Data Entry Layout

...

...

Data Entry Group APay. layout Layout ......

Data Entry Group B...

Payables layout• Payables form

• Rows Structure• ...• ...

Version 100 CurrentYear 2002ConsU C1000 USLC EUR Euro

Item Partner TC TC LC4711 C2000 CAD 150 100

USD 90 100JPY 350 100

C3000 CAD 150 100

USD 90 100JPY 350 100

4712 C2000 CAD 150 100

USD 90 100JPY 350 100

Partner & TC Payables

Header

Object• Data entry matrix• Column Layout• Rows Structure• Primary Consolidation Unit• Characteristic• ...

Preview Structure

Data Entry Layout Definition,Preview (4)

Hierarchies with Groups and Layouts (1)

Object Tree (2)

Re-useable Objects (3)

You can create and display the following objects in the lower left section of the workbench screen:

Hierarchies for data entry groups

Data entry groups for grouping layouts according to different accounting

aspects (for example, data entry groups for balance sheet and others for income statement)

Data entry layouts

The object tree displays your data entry layout structure plus the form and row and column structures.

Layouts aspects which, having been defined once, can be used again in other layouts. As long as you have given a structure a name, you can use it in other layouts.

Preview shows the completed layout as it will appear to the end user during data entry.

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Separate Columns(with subtotals)

Combined Structure(Characteristic Hierarchy)

Examples of Manual Layout Structures

Item Partner ValueReceivables Total

C1000C2000C4000

210

20Payables Total 70-

C4000C5000

1009020

20-50-

FS item / Partner ValueReceivables

C1000C2000C4000

210

PayablesC4000C5000

Item Partner Value

70-

1009020

20-50-

Receivables C1000C2000C4000Total 210

Payables C4000C5000Total 70-

1009020

20-50-

The above slide shows how examples of how different characteristics can be displayed (in this case "FSItem" and "Partner Unit") using one or more columns.

Hierarchical structures can be displayed in two different ways:

You can display each column of the structure separately as a lead column. This is the case in the left hand graphic. Both "FS item(s)" and "Partner" have their own columns. This makes the layout wider.

An alternative is to merge the two columns so that both characteristics are combined in one hierarchy. The first level of this hierarchy contains the "FS Item" characteristic, the second the "Partner“ characteristic. Characteristic combination for assignment can be opened out if required (for example, receivables for partner company C2000). To be able to do this, a merged structure is needed to function as a higher level node.

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SAP AG 2006

Asset History Sheets for Manual Data Entry

Item Mvmt..Type

Open. bal. Add. Divest. Clos. bal.

Buildings

Machinery

Orig.Acc. Dpr.NBVOrig.Acc. Dpr.NBV

21020-

190400360-40

6

20-

26

0

18010-

170500

480-20

104

4014

100120 0

0

Rows Definitionfor FS Itemsof TA:Data-drivenStructure,listedaccording toMaster Data

Rows Definition:Restricted to Movement Types Movement

Types 100,200

Movement Types 120,220



Data Column Definition

Mvmt. Type 100 to 299



Rows Definition(fixedpredef.structure)

The asset history sheet is structured as follows:

The rows consist of a data-driven structure (interval of asset items). This means all possible breakdowns of asset items are already selected. Another feature of the rows structure are the fixed movement type intervals (orig. item 100-199; depreciation 200-299 and inventory book value 100-299). The data-driven structure is thus restricted to movement types that can actually be entered.

The data columns contain predefined fixed movement type intervals. You decide when defining each column which intervals are to be assigned which are only for display. A predefined fixed column is also defined in the columns structure for entering data in the local currency.

In the above example a posting/data entry block has been set for the opening balances Orig. and cumulative valuation allowances. This is why the opening balance is grey and cannot be changed.

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Validation


Define and execute a validation.

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Structure of a Validation

Formula Editor (6)

Functions (5)

Process View Permanent Parameters

......Validation

...Verification rule

...

Verification Rule 1

VAL_PER(Assets) + VAL_PER(Liabilities) = 0

Selection Condition (2)

MethodVerification rule 1

TrueVer. rule 1.1

TrueVer. ruleRep. data

FalseRep. data

FalseRep. data

Verification rule 2

/ *

<>=

StringNumberConstant

Range of Characteristics and Values

- +*

( )

Operands (3)

Grouping

Comments

(4)

A validation method consists of at least one verification rule (recognized by the formula editor) and a check sequence.

The checking sequence can consist either of a message or another check.

A single verification rule consists of selection conditions (2), which must be defined in advance. In consolidation, the selection usually consists of the characteristic FS item. This can be restricted to a lower level position.

You construct a check in formula editor (6) with the help of functions (5) and the selection criteria you have created.

The example in the figure validates the total assets (stored using a selection condition) with the total liabilities. Both must amount to 0.

As of SEM-BCS Release 4.0, validations can also be used for the document check. You can, for example, validate whether asset items can be posted or not with a certain type of document.

The validation can use the aggregates contained in the totals data InfoCube to improve the performance of task execution. What is very important here is that normally selections are defined in a validation method for only a few characteristics of a totals data InfoCube. The validation method aggregates the values contained in the InfoCube for the remaining characteristics. For those characteristics that are not included in the definition of a validation method at all the system can use aggregates that already exist in SAP NetWeaver Business Intelligence. Performance is improved as a result of the reduced amount of data to be read by the method. The validation automatically uses existing aggregates if these aggregates contain all the required characteristics for the validation.

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Validation of Additional Financial Data Customizing

Check

ODS objectcontains additional financial

data

InfoCubecontains reporting data

Task Definition

Using a validation method you can control which assignment levels are to be included in the check for which currency. This means that checks already defined once for reported data (posting level 00) in local currency and checks for standardized financial data (up to posting level 10) in group currency can be validated using the same checking routines.

In addition to the validations, which you can define yourself with formula editor, the system can also reconcile additional financial data that has been stored in the ODS with data from the totals cube in the same task. This includes reconciling inventory data for elimination of interunit profit in transferred inventory, asset values for the elimination of interunit profit, and checking values from investment ODS and capital ODS with corresponding values in the totals cube.

You can control the traffic lights of the status management system individually for automatic validation of ODS data and its corresponding totals cube values.

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SAP AG 2003

Manual Postings and Period Initialization


Define document types for manual standardizing entriesand post documents using the consolidation monitor

Create and evaluate the Period Initialization Task

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Group-dependentEliminations

Two-sided Eliminations

Standardizing Entries

Reported Financial Data

Not group-dependent Group-dependent

00 01

10

02

12

20 22

30

AdjustmentEntry

DivestitureEntry

Posting Levels (I)

The posting level typically posts entries in the consolidation system as follows:

Adjustments to reported financial data

Standardizing Entries

Standardizing entries are valid in all consolidation groups containing the consolidation unit the entry is posted against.

Two-sided consolidation entries are only valid for consolidation groups where the cons unit and partner unit are assigned.

Group-dependent divestitures are executed as part of a consolidation group change.

Postings dependent on the consolidation group are either only valid for the relevant consolidation unit (levels 02, 12, 22) or for the consolidation group and all other groups in which this is included.

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Activity Level Unit Partner ConsGroup Text1 10 C - - Standardizing entry2 20 A B - Elim. of IU pay./rec.3 20 A D - Elim. of IU pay./rec.4 30 E D CG1 Cons of investments

1 2 3 4CGCG1 X X X XCG2 X X - -CG3 X - - X

Docs

Doc. 2Doc. 3

Doc. 1

CG2

CG1

Posting Levels (II)

Unit A

Unit C Unit D

Unit E

Unit BDoc. 4 Part 1

CG3

Document validity for cons groups:

Doc. 4 Part 2

When you define the document type, you specify a posting level.

The documents are stored in the database with the corresponding posting level. In reporting, they can be subdivided by posting level.

In the above example, the posting documents reflect different tasks: Activity 1: The standardizing entry for consolidation unit C affects this unit only. The document is valid in all consolidation groups (CG). Activity 2: The elimination of IU payables and receivables between A and B is valid in consolidation groups 1 and 2. Activity 3: The elimination of IU payables and receivables between A and D is valid in consolidation group 1 because both companies are affiliated at group level only. Activity 4: The consolidation of investments task is started in CG1, the document is created in the lowest affected consolidation group CG3 and is also valid in CG1.

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SAP AG 2003

Postings

SelectedItems

Tasks

Document Types Number Ranges

Methods

Display Totals Records Display Journal Entries

TotalsData

Docs

Automatic Posting


Reclassification

Allocation

Manual Posting

Posting

Data is usually can usually be transferred to Standardized Financials using a wide variety of different document types that are particularly needed for making standardizing entries. To transfer data using a different document, go to the document type characteristic in reporting (restricted key figure in Query Definition).

With selected items, it is necessary to distinguish between FS items in postings that are significant for results, for which the system always adjusts balance sheet and income statement and FS items in cross-consolidation unit postings which guarantee a 0 balance at individual unit level.

In some versions, a number range is assigned to document types. Once a number range has been defined, this can be used for various document types.

All postings, whether entered manually or by the system, write journal entries to the document ODS Object. At the same time, a totals record is generated in the totals cube and its value continually updated. End users can access both databases using the consolidation monitor. You can also perform a drilldown for totals records and journal entries.

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Document Type for Manual Posting

On the document type screen, you can decide whether in the balance sheet and income statement, postings that cause a financial statement imbalance should be split into the tax amount and the actual amount by which results items have changed.

If you decide not to display the tax, you can set item determination directly in document type or use the general settings under Customizing for selected items.

You can maintain the rate of the split as a percentage either in the consolidation unit master record or directly under document type.

Each document type must be able to post values in at least one key figure. If you activate multiple key figures in the document type and one of these is group currency, you can decide whether the standardizing data record is converted in accordance with currency translation settings or the group currency value is entered into the consolidated statement without conversion.

If you post an entry manually, BCS will ensure that any necessary subassignments are posted as well. Values are compromised in the system using breakdown category of items being posted against. A additional posting characteristic can also be set as fixed under document type. End users then assign a value to this fixed characteristic when posting with this document type.

With Release SEM-BCS 6.0, you can display the texts for the characteristics (for example, for the item and the movement type) using the "Document Field Options" tab page.

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SAP AG 2003

Period Initialization

Name

Short

Medium

Period Init.Period Initialization

Posting Level Assignments

Posting Levels Adjustment and Standardizing EntriesAdjustment and Standardizing EntriesOther Posting LevelsAll Posting Levels

You use the period initialization task to invert documents that were generated automatically or manually from earlier periods. The period initialization task inverts documents from earlier consolidation periods for all tasks with documents that have the following master data characteristics:

a) Invert in next period, or b) Invert in new fiscal year too

You must perform period initialization for manual postings with a setting in the master record for the document type indicating that inversion will take place. You do not need to run the initialization tasks for documents that were generated automatically, as the task checks for existing documents and inverts them the next time it is executed.

You can execute the task once (all posting levels are inverted) or twice (the levels 01/10 and 20 are inverted separately).

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SAP AG 2003

Automatic Posting of Balancing Adjustments

1000

B/S Item

1000

Automatic Balancing Adjustment

Ret. Earnings - B/S

Annual Net Income B/S

1000

1000

1000

1000

Ret. Earnings - I/S

Annual Net Income I/S

I/S Item I/S TotalB/S Total

Approp. of Ret. Earningsin I/S

Approp. of Ret. Earningsin B/S

Original Entry

For each posting, the program checks whether any income statement items are being posted with a non-zero balance. If so, it calculates and posts a financial statement balancing adjustment automatically.

As well as financial statement balancing adjustments, SEM-BCS can also calculate deferred taxes and post them to special items. In this case, the balancing adjustment is split. One part is posted to the result position, another is posted to the provision for accrued taxes. You can maintain the percentage that the system should post to provision for deferred taxes in the document type itself or in the master record for the consolidation unit.

Where the appropriation of retained earnings are stated also affects the financial statement balancing adjustment:

If the appropriations are stated after the income statement, the adjustment is posted to retained earnings items in the balance sheet as well as the income statement.

If the appropriations are stated in the balance sheet, the adjustment is posted to annual net income items in the balance sheet as well as the income statement.

The items posted are those you have maintained in Customizing as special items for retained earnings and annual net income. The financial statements remain balanced because the balancing adjustment is posted to both statements.

The decision as to where the appropriation of retained earnings takes place is made in the consoldiation area.

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Data Collection and Standardizing Entries: Summary

You are now able to:Import reported financial data into the consolidation systemusing the flexible upload method

Create a validation

Understand how to adjust reported financial data with Manual Entry Layouts

Post manual adjustments to individual statement data

Evaluate the effects of Period Initialization

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Exercises

Unit: Data Collection and Standardizing Entry Topic: Loading Reported Financial Data in the

Consolidation Monitor Using a Flexible Upload

At the end of these exercises, you will be able to:

Import reported financial data from a text file using the flexible upload method.

The financial data reported by subsidiaries is supplied in a Microsoft Excel spreadsheet. This data file is imported into the consolidation system. You then want to validate the figures in local currency and provide end users with a task for manual standardizing entries.

Before you start with the settings, check the permanent parameters. To do so, enter /nucpp in the transaction window.

Consolidation area ## (your two-digit group number) Currency: USD Fiscal Year: 2002 Period: 012 If your permanent parameters are set differently, change them to match the values listed above and save your changes by choosing the disk icon. Your colleague has already imported the consolidation units into the system. You use the companies and profit centers hierarchy (stored as a special version in the company and profit center hierarchy structure.) The individual financial statements from the companies are then collected using a flexible upload.

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1-1 Create the flexible upload for loading reported financial data

Name of method 11000

Method ID: Upload reported financial data

Upload method category: Reported Financial Data

Settings tab page: The method uses variable column widths:

Field separator: Tabulator

Row types: Header row and data row

Comment character *

Digit separation: Decimal comma (1.000,00)

Update Mode: Overwrite

Inclusion of Sign Attributes: No settings made

Input type: Cumulative

Do not set a BAdl filter value Tab page: Field catalog The header contains the characteristics: group currency, version, fiscal year, posting period, consolidation chart of accounts, controlling area, fiscal year variant.

The data row contains the characteristics: transaction currency, item, company, profit center, trading partner, partner profit center, investee (company), investee (profit center), functional area, country, movement type, period value GC, period value LC, and period value TC.

Save your entries.

1-2 Create a method for data collection

Create a method belonging to the category Data Collection.

Name: 12000

Description: Reported Financial Data

Data Stream: Totals Record

Data Collection Method: Flexible Upload

Method: The method 11000 you defined in exercise 1.1

The data is loaded from the presentation server. Select the PresServ indicator.

Save your entries.

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1-3 Create a task belonging to the category Data Collection for loading the reported financial

data

Assign the following name to this task: 12000 Short and Medium Text: Data Collection Set the consolidation frequency to Quarterly and the period category to All quarters follow same method (400). Assign method 12000 to the task independent of the units. Activate the log backup.

Save your entries.

1-4 Define a task hierarchy for the consolidation monitor

Name: Group## (where ## = your 2-digit group number)

Within the hierarchy, create a task group called "DATA1."

Assign the task from exercise 1-3 with the name 12000 to the new task group "DATA1."

Save your entries.

1-5 Execute data collection in the consolidation monitor

Execute the data collection task 12000 in the consolidation monitor. You will find the reported financial data file on the Business Workplace. Start the Business Workplace in the SAP Easy Access menu using the respective icon or the CTRL + F12 keyboard shortcut. In the Business Workplace, open Shared Folders. In the SEM240: Business Consolidation (BI-based) folder, open the file for your group, and save it on your local disk. If you start the flexible upload from the Consolidation Monitor, the reported financial data file must not be open since this would cause access conflicts.

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Exercises

Unit: Data Collection and Standardizing Entry Topic: Creating Manual Data Entry Layouts


Create and use a manual data entry layout.

The reported financial data from the consolidation units have been imported into the system using a flexible upload. You want to allow users to enter individual financial statements manually at the same time. You also want to make sure that data can be entered manually at any time (for example, to quickly integrate a new subsidiary or the data from companies B and C, which have a limited scope of reported data).

2-1 Create data entry layouts.

To demonstrate how the data transfer function works, create two layouts. The first data entry layout will be used to enter receivables from and payables to affiliated companies, and the second one to record sales revenues by regions and partners. Make sure that the two layouts can be used by all consolidation units. Use data entry groups to define a Hierarchy Gr## (where ## is your two-digit group number). Create a data entry group 100.

In the following steps, label each structure (both data-driven and predefined fixed structures) using the name of the selected characteristic and your group number. Remember that the technical name is limited to eight characters. For example, Rec##, TradP##, PPC##, (where ## is your two-digit group number). You must not use special characters in the structure name. …

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Instructions for Layout of "Receivables from/Payables to Companies" Received from Your Department Technical Description: 11300

Name of the Layout 11300 Rec. from/Pay. to Companies

Drilldowns in Layout

Receivables from Companies Payables to Companies

11301100 - 11301300 21171000 - 21175000

Trading Partners All Companies

Partner Profit Center All Partner Profit Centers

Record in Local and Transaction Currency

You will work with an item hierarchy. Subtotals are not required. The item number and text are displayed. The information is sorted in a logical order. The items in the hierarchy are to be broken down according to trading company and partner profit center. Each of these three items of information (characteristics) is to be shown in a single column.

The transaction currencies used in the group are restricted to EUR, USD, and JYP. These transaction currencies are to be shown in a separate column in the layout.

Optional exercises

Instructions for Layout of "Sales Revenues by Regions and Partners" Received from Your Department

Technical Description: 30100

Name of the Layout 30100 Sales by Region and Partner

Drilldowns in Layout

Net sales/revenue 30100000 to 30332000

Country DE, US, JP

Trading Partners All Companies

Partner Profit Center All Partner Profit Centers

Record in Local Currency

Display the Item characteristic in hierarchy format with text. Display the Country characteristic in the same row.

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2-2 Include manual data entry in the existing data entry method 12000.

2-3 In the consolidation monitor, call up the data entry layouts and check that they are ready for input. After having saved the reported financial data in the Totals cube via the flexible upload interface you can use the entry layouts to view this data. For instance, open the Receivables/Payables layout for company C1000 with profit center 1220. You will see receivables against partner company C2000 in profit center 2220.

For storing reported financial data, it does not make any technical difference which interface is used for data reporting. The characteristic that categorizes the data sets (reported financial data, standardizations, eliminations, etc.) is called the posting level and is described in unit 4.

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Exercises

Unit: Data Collection and Standardizing Entry Topic: Validation


Define validation rules using the formula editor.

You want to make sure that full balance sheets from all of the consolidation units have been reported after the data has been collected. You also want to make sure that the reported annual net income (income statement) and retained earnings (balance sheet) are identical.

You have collected the individual financial statements for your prototype. Using a validation task, make sure that the individual financial statements have been reported in full.

3-1 Define a Validation

Define a validation method 13000 with the name Validation Gr ## (where ## is the two-digit group number).

The method consists of two check steps.

Check 1: Check that the totals of all asset and liability-side items are identical based on the cumulative annual figures. When defining the validation, make sure that credit/debit sign of the items, with which the data records were stored on the database, is taken into account in the check. (You can use the ABS function to restrict your selection to absolute values.)

If the check is successful, the information text "Assets = Liabilities" is to be output. Otherwise, the error text "Assets Not Equal to Liabilities" is to be output. Use the texts from message ID SEM240.

Check 2: Check that the annual net income and retained earnings are identical based on the cumulative annual figures.

If the check is successful, the information text "Retained Earnings, B/S = Annual Net Income, I/S" is to be output. Otherwise, the error text " Retained Earnings, B/S Not Equal to Annual Net Income, I/S " is to be output. Use the message ID SEM240.

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3-2 Create a task 13000 for your validation checks.

This validation method is intended to check the reported financial data in local currency every quarter using the same method for all consolidation units.

3-3 Assign the validation task 13000 to the task group DATA1. Then execute the validation in the consolidation monitor. Note the order of the tasks. The validation must be performed after data collection. Ensure that status management takes this into account.

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Exercises

Unit: Data Collection and Standardizing Entry Topic: Manual Postings


Define items for automatic financial statement imbalances and make adjustments to the reported financial data using a manual document type.

After the individual financial statements from the subsidiaries have been checked to ensure they are complete, selective adjustments have to be made in line with US GAAP.

4-1 Automatic financial statement balancing adjustments

The system adjusts "imbalances" between the balance sheet and the income statement – both manually and automatically. To do this, you need to define selected items that are then used by the system to post the balancing adjustments. Items for finding the deferred taxes are also defined in this step.

Balancing adjustment for the balance sheet: Item 25712000 – debit and credit with movement type 620; balancing adjustment for the income statement: Item 39000000 Deferred taxes – Balance Sheet: Item12700000 – Debit (movement type:120) and credit 21180600 Deferred taxes – income statement: in debit and credit on item 33111000.

Optional Exercise 5-1 Create a document type for manual standardizing entries:

Define document type #1 (where # = A [group 01], and so on) for postings in local currency (LC). The document type uses posting level 10 and is used for "other" postings.

Postings with this document type must be reversed in the same calendar year. For postings with this document type, 35% should always be set aside as provision for accrued taxes.

Assign the number range T1 to the document type.

Save your entries.

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5-2 Create a task for manual postings

Name:14000

For the short and medium description enter: standardizing entries with deferred taxes

Consolidation Frequency: Quarterly. Assign the document type #1 you created in exercise 5.1 to the task and save your entries.

5-3 Assign task 14000 to task group DATA1

Assign the task 14000 to task group DATA1.

After validation, assort the manual posting in the group DATA1.

5-4 Set status-relevant preceding task

Make sure that the data collection is the status-relevant preceding task for manual posting. The manual posting task should therefore open automatically when data collection is opened.

6-1 Post a depreciation adjustment

Post a depreciation adjustment of 100 monetary units for company C1000 and profit center 1000 to item Machinery and Equipment in the consolidation monitor. After the amount has been posted, block the task at the top consolidation group level.

7-1 Display a list of the totals records and journal entries.

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Solutions

Unit: Data Collection and Standardizing Entry Topic: Loading Reported Financial Data in the

Consolidation Monitor Using a Flexible Upload

Before you start with the settings, change the permanent parameters. Enter /nucpp in the transaction window and change the settings to: Consolidation area: ## (your two-digit group number) Currency: USD Fiscal year: 2002 Posting period: 012 If your permanent parameters are set differently, change them to the values listed above and save your changes by choosing the disk icon.

1-1 Create a flexible upload for collecting reported financial data

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Flexible Upload/ Create a new entry in details for Customizing objects ID of the upload method for reported financial data: 11000

Description: Load Rptd Data Gr##

Data type: Reported financial data

Settings tab

Field Name/Data Type Value

Column Width Variable

Column Separator Tab Character

Row Types Header and Data Rows (Select ENTER)

Comment Row *

Digit Separation Comma as decimal point (1.000,00)

Update Mode Overwrite

Inclusion of Sign Attributes No setting

Input Type Cumulative

Do not set a BAdl filter value …

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Field catalog tab page Drag&drop the characteristics listed below from the remaining fields in the right-hand screen area (following the sequence in which they are listed):

The header should contain the following characteristics: Group currency, version, fiscal year, posting period, consolidation chart of accounts, controlling area, and fiscal year variant

The data row should contain the following characteristics: transaction currency, item, company, profit center, trading partner, partner profit center, investee (company), investee (profit center), functional area, country, movement type, period value GC, period value LC, period value TC and periodic qualtity.

Save your upload method.

1-2 Create a method for data collection

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Method/ Create a new entry in details for Customizing objects Name: 12000 Description: Data Collection


Data Stream Totals Records

Data Collection Procedure Flexible Upload

Method The method 11000 you defined in exercise 1-1

Presentation Server Select (check)

Save your entries

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1-3 Create a task belonging to the category data collection

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Task/ Create a new entry in details for Customizing objects Name: 12000


Short/Medium Text Data Collection

Consolidation Frequency Quarterly

Period Category All quarters follow same method (400)

Assign Method Does not depend on company, profit center


Log ! Save Log

1-4 Define a task hierarchy

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Task Hierarchy/ Create a new entry in the details for Customizing objects Create a new node type that has the category Hierarchy. Assign the name Group ## (where ## represents your two-digit group number).

Select the newly generated hierarchy node and choose Create from the context menu. Check whether Task Group has been defined as the node type and give this new group the name DATA1.

Assign the flexible upload to task group DATA1.

In the Nodes Not Allocated window you will find the task 12000 you defined in exercise 1-3. Assign the task to the task group DATA1 by Drag&Drop. Save your settings.

Before you can load the file in the consolidation monitor you first have to download it from the Business Workplace.

Start the Business Workplace in the SAP Easy Access menu using the respective icon or the CTRL + F12 keyboard shortcut. In the Business Workplace, open Shared Folders. In the SEM240 folder, open: Business Consolidation (BW-based), open the file for your group and save it on your local disk. If accessing the server through CITRIX, then leave the default “Save in” destination, usually SAP Work Dir. If you start the flexible upload from the Consolidation Monitor the reported financial data file must not be open since this would cause access conflicts.

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1-5 Start the flexible upload in the consolidation monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor/ Expand task group DATA1 and start the flexible upload by placing your cursor at the intersection of CG1 and the task “Data Collection.”.

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Solutions

Unit: Data Collection and Standardizing Entry Topic: Creating Manual Data Entry Layouts

2-1 Create two data entry layouts

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Data Entry Layout/

Choose and create a new hierarchy for data entry layouts. Name: Gr## Name: Data entry layout Gr## (where ## is your 2-digit group number)

Select the data entry hierarchy and use the context menu to create a new data entry group. Name: 100. Select the data entry group and create a new data entry layout (using the context menu). Name: 11300. Description: Pay. to/Rec. from Companies

Select the object 11300 in the work area and create a form using the context menu.

The system generates a form with a row and column structure. In the following steps, label each structure (both data-driven and predefined fixed structures) using the name of the selected characteristic and your group number. Remember that the technical name is limited to eight characters. For example, Rec##, TradP##, PPC##, and TC## (where ## is your two-digit group number). In the structure name, you must not use special characters. In the row structure, create a combined structure, and in the combined structure you just generated, create a data-driven structure. Place cursor on the data driven structure just entered and start typing in the label for the structure: Rec## and select Enter.

On the Structure tab page, click the icon and choose the Item characteristic.

Item (Right mouse click on the equal sign icon to select “Complex Selection” in order to enter a range)

11301100 – 11301300 Pay. to/Rec. from Companies 21171000 – 21175000 Payables to Companies

List Values According to Master Data

Hierarchy Total Do Not Display

Display Options Key and Short Text

Display Sort Sequence Key, Ascending

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Create another data-driven structure in the combined structure.

On the Structure tab page, click the icon and choose the Trading Partner characteristic. Place cursor on the data driven structure just entered and start typing in the label for the structure: TradP## and select Enter.

Trading Partner (Right mouse click on the equal sign icon to select “Complex Selection” in order to enter a range)

C1000 to C9000



Display Options Short Text


Create another data-driven structure in the combined structure.

On the Structure tab page, click the icon and choose the Partner Profit Center characteristic. Place cursor on the data driven structure just entered and start typing in the label for the structure: PPC## and select Enter.

Partner Profit Center (Right mouse click on the equal sign icon to select “Complex Selection” in order to enter a range)

1000 to 9010





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Create a new data-driven structure in the row structure.

On the Structure tab page, click the icon and choose the Transaction Currency characteristic. Place cursor on the data driven structure just entered and start typing in the label for the structure: TC## and select Enter.

Transaction Currency Characteristic (Right mouse click on the equal sign icon to select “Complex Selection” in order to enter a the values individually)

EUR, USD, JPY



Display Options Key Only


The row structure is now defined.

Make sure that the structure names are unique. Each of your characteristics must contain your group number in the technical name. For example, Rec##, TradP##, PPC## and TC##.

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Create a new predefined fixed structure in the column structure. Where you see the “?” value, place cursor there and type in the description Local Curr.

On the Structure tab page, click the icon and choose a key figure. Set the value to Period Value LC.

To allow data to be entered in the transaction currency as well as the local currency, provide a second key figure. Create a new fixed structure at the same level as the predefined fixed column structure. Proceed as follows:

and choose .

Where you see the “?” value, place cursor there and type in the description Trans Curr.

On the Structure tab page, click the icon and choose a key figure. Set the value to Period Value TC.

SAVE your Data Entry Layout form.

Solution to the optional exercises

Layout: Sales by Region and Partner

Select the data entry group 100 and use the context menu to create a new data entry layout: Name: 30100 Sales by Region and Partner

Select the object 30100 in the work area and create a form using the context menu.

The system generates a form with a row and column structure.

Create one combined structure in the row structure.

Create four data-driven structures within the combined structure. In the Create Data-Driven Structure context menu, choose

.

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Label the four data-driven structures Sales##, Coun##, TP##, and ParPC##. Your layout should now look like this (where ## is your group number). Since the structures are not specific to a certain consolidation area, their technical name must be unique in the data basis.

Define the data-driven row

On the Structure tab page, click the icon and choose the Item characteristic.

Item Characteristic 30100000 to 30332000



Display Options Key and Short Text



On the Structure tab page, click the icon and choose the Country characteristic.

Country Characteristic DE, US, JP





Define the data-driven row …

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On the Structure tab page, click the icon and choose the Trading Partner characteristic.

Trading Partner Characteristic C1000 to C9000






On the Structure tab page, click the icon and choose the Partner Profit Center characteristic.

Partner Profit Center Characteristic 1000 to 9010





Create a new predefined fixed structure in the column structure. Where you see the “?” value, place cursor there and type in the description Local Curr.

On the Structure tab page, click the icon and choose a key figure. Set the value to Period Value LC.

Save your entries.

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2-2 Assign the manual data collection to the data collection method

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Method/ Display the existing entry (12000) in the details for Customizing objects Create a new entry in the existing data collection method.



Data Collection Proc Manual Data Entry

Method The data entry group for your data entry layout 100

Save your entries.

2-3 Opening the consolidation monitor


Select the top node (CG1) of the data collection task and use the Update pushbutton to start data collection. You can call up the layouts from a selection screen. After having saved the reported financial data in the Totals cube via the flexible upload interface you can use the entry layouts to view this data. For instance, open the Receivables/Payables layout for company C1000 with profit center 1220. You will see receivables against partner company C2000 in profit center 2220. For storing reported financial data, it does not make any technical difference which interface is used for data reporting. The characteristic that categorizes the data sets (reported financial data, standardizations, eliminations, etc.) is called the posting level and will be described later in this unit.

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Solutions

Unit: Data Collection and Standardizing Entry Topic: Validation

3-1 Define a validation method

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Validation/ Method.

Use Create to generate a new validation method 13000. Description: Validation Gr. ## (## = two digit group number).



Validation Type Data Rows are Totaled

The data stream type checks for totals records. The validation type checks for netted data rows. Call Create/Validation Rule from the context menu. Check 1: a) Enter a description in the Medium and Long Text fields of: Assets = Liab and SE.

b) To define a check, you first have to create the selection condition. Choose the "Create Selection Condition" pushbutton to generate a selection condition.

c) Scroll down to the bottom of the screen, click the Add Characteristic pushbutton, and choose the Item characteristic. As you want to include an interval and no individual value in the selection, choose Complex Selection at the = symbol level using the context menu. Maintain the interval 10000000 to 19999999. Label the selection condition "Total Assets."

Repeat this procedure to create the "Total Liabilities" selection condition (item 20000000 to 29999999). Repeat steps b and c in order to do so.

You can now use these two selection conditions to define your first check.

You create the check in the formula editor.

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d) To do so, choose the formulas ABS and VAL_YTD from the function list. (This function checks the absolute values of the cumulative annual values).

The formula editor contains the formula ABS (VAL_YTD ()). You can now add the Total Assets selection condition. Remember that the selection condition has to be placed in parentheses.

e) Link the asset and liabilities check in the financial statements with a "=." To do so, repeat the formula ABS (and the formula VAL_YTD.( ). The formula editor should now contain the following expression:

ABS (VAL_YTD (Total Assets)) = ABS(VAL_YTD (Liabilities))

f) To output the message text "Total Assets = Liabilities," right-click the check sequence True and choose Create Message from the context menu.

Enter the message ID SEM240 and message 000. Choose "I" (information) as the message type. Press Enter. The text "Total Assets = Liabilities" is now displayed in the text field. To output the message text "Total Assets Not Equal to Liabilities," right-click the check sequence False and choose Create Message from the context menu.

Enter the message ID SEM240 and message 001. Choose "E" (error) as the message type. Press Enter. The text "Total Assets = Liabilities" is now displayed in the text field.

Save your entries.

Check 2: a) Using the context menu, create a new check at method level. Choose the Create, then

Validation Rule

b) Enter a description in the Medium and Long Text fields of: Net income + Retained Earnings = 0.

Choose the "Create Selection Condition" pushbutton to create a new selection condition.

c) Scroll down to the bottom of the screen, click the Add Characteristic pushbutton, and choose the Item characteristic. Enter the single value "25712000" for the item. Label the selection condition "Retained Earnings."

Repeat steps b and c for the second selection condition Item = "39000000" Net Income.

…

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…

d) Choose the formula VAL_YTD from the function list and enter the net income selection condition.

e) Place cursor outside parentheses and select the “+” operand. Enter the formula VAL_YTD from the function list and add the retained earnings selection condition. Place cursor outside the parentheses and select the “=” operand.

f) Using the Number icon, define the number 0 as the check result. The formula editor should now contain the following expression:

VAL_YTD (net income) + VAL_YTD (retained earnings) = 0

g) Message text for True check sequence with message ID SEM240. As information, assign the message 002 “net income = retained earnings”. Take the message text for the check sequence "False" from the message ID SEM240 too. The text 003 “Annual net income not equal to retained earnings” should be output as the error message.

Save your entries.

3-2 Create a validation task

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Validation/ Task. Assign the name VAL## ((## = your two-digit group number) to the task 13000 you want to create.


Short/Medium Text Validation Gr. ##

Values Reported Financial Data

Currency Local Currency

Consolidation Frequency Quarterly

Period Category All quarters follow same method

Method Assignment Does not depend on company, profit center


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3-3 Include the validation method in task group DATA1 and execute it in the consolidation monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Task Hierarchy Expand your existing hierarchy. Take your validation task from the "Nodes Not Allocated" and assign it to the task group DATA1 after data entry.

Save your entries. Define the validation as a status-relevant preceding task Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Preceding Task Relationships

Use Drag&Drop to draw the data collection task to the validation task. Data collection then becomes the status-relevant preceding task for validation and opens automatically when data collection is opened.

Save your entries.

Now start the validation in the consolidation monitor.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor

Select the top consolidation group (CG1) and start the validation in local currency for all consolidation units using Update.

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Solutions

Unit: Data Collection and Standardizing Entry Topic: Manual Posting

4-1 Automatic financial statement balancing adjustments

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Master Data/ Items/ Selected Items

Clearing – Balance Sheet tab page


Item (debit/credit) 25712000 RE - Current Year

Movement Type 620 Debit

Movement Type 620 Credit

Clearing – Inc. Stmt. tab page


Item 39000000 Net income

Def.Taxes - Bal.Sheet tab page


Item - debit 12700000 with Movement Type 120 Acquisitions

Item - credit 21180600 Def. Taxes

Def.Taxes - IncStmt tab page


Item (debit/credit) 33111000 Tax Prov.-Curr.Fed.

Save your entries.

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Optional Exercise 5-1 Create a document type for manual standardizing entries

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Manual Posting/ Document Type/ Create a new entry in the details for Customizing objects Define document type #1 (where # = A [group 01], and so on) Description: Stnd Entry Gr##


Posting Level 10 Standardizing Entry

Balance Check Error if balance not equal to zero

Application Other

Posting Manual Posting

Inversion Automatic inversion within a fiscal year

Key Figures Post in local currency

Number Range T1

Tax Rate 35%

Set the latent tax debit/latent tax credit indicators and Direct Input in order to enter the percentage amount.

Save your entries.

5-2 Create a task for manual posting

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Manual Posting/ Task/ Create a new entry in the details for customizing objects Create a new task. Assign the name 14000.

For the short and medium text enter: Standardizing Entry. Assign your document type. Select the "Quarterly" consolidation frequency.

Save your entries.

5-3 Assign task 14000 to task group DATA1

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Task Hierarchy/ Drag your task 14000 from the Nodes Not Allocated window to task group DATA1.

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5-4 Set status-relevant preceding task

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Preceding Task Relationship Pull the data collection task by Drag&Drop to the manual posting task. The manual posting task opens automatically when data collection is opened.

Save your entries.

6-1 Post the depreciation adjustment to "machinery and equipment"

Call up the consolidation monitor in the SAP Easy Access menu.


Expand hierarchy H1 and task group DATA1.

Position your cursor on the intersection between the company C1000 and task 14000 Stnd Entry..

Choose Update which takes you to the entry screen for manual posting.

General tab page


Mode Enter Document (Select Enter)

Document Type #1 (this is your document type for manual postings in local currency)

Document Header C1000 is preset

Line Items tab page


Line item 1: Item 12110300 Machinery and Equipment

Profit Center 1000

Movement Type 220

Period Value in LC 100

Line Item 2: Item 30527140 Depreciation Expense, Machinery & Equipment

Profit Center 1000

Functional Area 4000 Research and Development

Period Value in LC -100

(Use the Check Entries icon to see the selected items appear prior to posting the document.

Select the Post Document icon.)

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7-1 Display a list of the totals records and journal entries

From the consolidation monitor, you can access the totals records that were updated by the posting by choosing Go to/ List of Totals Records.

You can also access the posted documents by choosing Goto/ List of Journal Entries.

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SAP AG 2003


Contents:

Currency Translation Methods

Translation Keys

Determination of Exchange Rates

Translation and Rounding Differences

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SAP AG 2003

Currency Translation: Objectives


Define a currency translation method.

Define selected items that you require for posting translation differences that affect net income.

Execute the currency translation task in the consolidation monitor.

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface





Reporting



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SAP AG 2003

Currency Translation: Business Scenario

Financial data reported by consolidation units is transferred to consolidation in local currency.

The local currency of a consolidation unit is not the same as the group currency.

You need to translate this data to group currency before you can create consolidated financial statements.

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SAP AG 2003

Currency Translation: Twofold Translation

Local Reference Group Diff

Assets S = 2.0 H = 3.0 1.0

Building 500 1000 1500 500

Machines 500 1000 1500 500

Inventory S = 2.0 S = 2.0

Raw Mat. 500 1000 1000 0

Translation

Inventory

Exchange Rates

2004

Diff: Currency Translation Difference

KeyDateAssets Historical

The currency translation task enables you to translate financial data reported by consolidation units from local currency to group currency.

Currency translation is based on a specific translation method. Several methods exist for translating data reported by consolidation units. You can assign a currency translation method to each consolidation unit depending on time and version. Since assignment depends on version, you can work with one translation method for planning and another for actual consolidation.

The method itself forms a special version, which means it can be used in other consolidation versions for the same consolidation area. Exchange rate determination forms a special version of its own. This means you can use methods you have defined for actual consolidation to process planning data. The related exchange rates (e.g. planning rates, scenario rates) can be maintained again separate to the processing of actual data. For more details, see "Determination of Exchange rates."

The type of currency translation you use often depends on relationships between your corporate group and the individual consolidation units (functional currency).

You can define any of the commonly-used translation methods for your chart of accounts - (temporal method, current-rate method, and so on).

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SAP AG 2006

Translation Keys

Cumulative Translation

Periodic Translation

Periodic, Average Rate for Reductions

Target Key Figure Not Modified

Different ranges of financial statement items are usually translated with different translation keys and exchange rates. You use various combinations of the currency translation key and the exchange rate indicator to determine these exchange rates.

Detailed examples of accumulated and periodic translation can be found later in this unit.

Periodic, average rate for reductions: In this case only period values are translated from base to target currencies. If the exchange rate you choose reduces from one reporting period to the next, the system deduces the average rate from the previous periods and then carries out the translation using this calculated average rate.

Target key figure not modified: This translation key is of value if consolidation units are already reporting individual values in the target currency and no subsequent translation need take place. The reported value remains a group value.

If you want to translate an item using the time of acquisition (that may be, for example, a requirement of the relevant accounting principles), do this using a customer-specific translation key. Set the translation period to "cumulated," the translation procedure to "Apply Rate Directly," and the data of exchange rate determination to "Acquisition Period."

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SAP AG 2003

Determining Exchange Rates

E/R Type

Exchange Rate Indicator

Changes in Investments (historical)

Changes in Equity (historical)

Items on balance sheets and income statements often need to be converted using a variety of translation keys and exchange rate indicators.

The exchange rate is determined either by entering the E/R type (current rate, average rate and so on) or is derived indirectly using the exchange rate indicator. The assignment of exchange rate type to indicator constitutes a special exchange rates version, meaning that once a translation method has been defined, this can be used for both actual and planning rates.

Investment items are in most cases transferred to the consolidated balance sheet with their historic values from the time the investment was acquired. In the background is the elimination of the investment as part of investment consolidation, which results in this historical book value. The investment (historic) exchange rate now accesses a group currency value stored in investment changes (ODS Object) and makes this the consolidated value. It is essential that an investment is maintained in its corresponding ODS Object for the purpose of this exchange rate mechanism.

Equity items are eliminated against the investment during the first consolidation. The first consolidation takes place once in SEM-BCS. The document produced is then transferred to the following calendar year by means of the balance carry forward. This is why it is essential for equity items that the group currency value is not altered as a result of the latest exchange rate values. Equity can only change if capital is increased or reduced. The changes in equity (historic) exchange rate accesses a group currency value stored in capital changes (ODS Object) and makes this the consolidated value.

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SAP AG 2006

Currency Translation Key: Periodic vs. Cumulative

Periods 1 2 3 4 5 6 ...

Local Currency 100 150 250

Exchange Rate 2.0 3.0

Group Currency 200 550 750

Group Currency 200 450 650

Crcy Trans. Key K

...

...

...

Crcy Trans. Key P

The above slide demonstrates the different results produced when values are translated with the cumulative (period end rate) or periodic (monthly exchange rate) translation keys.

Periodic values and exchange rates are portrayed as initial values.

Translation key "C"

Period 1: LC 100 * 2.0 = GC 200 This value is posted.

Period 6: LC 250 * 3.0 = GC 750 The total yearly value is translated. 200 has already been posted, only the remainder of GC 550 is booked in period 6.

Translation key "P"

LC 100 * 2.0 = 200 GC

LC 150 * 3.0 = GC 450 Only the respective monthly value is translated and posted.

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SAP AG 2003

Historic Investment and Equity Translations -Customizing

Investment

Equity

Investment and Equity Translations:

According to IAS 21.33 equity investments may be consolidated in two ways, based on current rates or historical rates. BCS uses historical values as the basis (for the first inclusion). Equity values are translated on the basis of historic values (current rate at time of origin) according to IAS, U.S. GAAP and German HGB.

Customizing enables the system to access historic values stored in the ODS, which are then transferred as group currency values to the totals cube.

First consolidation occurs in the BCS once at the point of the first inclusion. The document is then carried forward for the ensuing calendar years. Investment or equity value changes in group currency would trigger an activity interpretation on the part of the system (such as increase or reduction in capitalization, as the equity no longer matches the reported/translated amount in group currency from the first consolidation). It is therefore essential that investments and equity are transferred in their historic values. Accessing values from the two ODS Objects ensures this is possible.

Either exchange rate mechanism can be used, even if investments and equity are read from the totals cube as in equity consolidation Customizing. The ODS Objects need only have been created and the necessary data supplied. The system saves the information to the ODS Object as redundant.

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SAP AG 2006

CTD: Posting the Difference

Translation to Group CurrencyReference Exchange Rate

Differenz 1000-

Assets 20002.0

Individual FS: Balance Sheet

Assets Equity1000 1000-

... Ret. Earnings3000-

2.400

Balance Sheet

Equity 2000-...

CTD 1000-

Ret. Earn. 6000-

Journal Entry:

AssetsCTD 1000

CTD: Currency Translation Difference

Historical E/R

Assets 2000

+ CTD 1000

...

Assets 30003.0

Currency translation differences arise when the items of annual statements are translated with a different exchange rate. These differences can be posted with or without an effect on net income.

If the system selects data from the balance sheet during the currency translation as part of a method step, and posts the currency translation difference in the income statement (or vice versa), this posting has an effect on the net income.

Translation with an effect on net income/without an effect on net income. For every method step, the method checks if there is an item in the selection whose item type does not match the item type of the differential accounting object. If this is the case, the system calculates the amount of the financial statement imbalance and makes the offsetting entry for this to a clearing item for financial statement imbalances (special position Customizing). You can, therefore, determine the effects on annual net income and the retained earnings or losses by simply selecting the relevant differential items (in the Customizing for method entries).

If the currency translation affects net income, these effects are carried forward into the retained capital by means of balance carryforward. The currency translation calculates the new currency translation differences affecting net income based on the changes in the current year. Net income effects from the previous year are no longer included in the system's calculations, as these are already considered in the balance carryforward.

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SAP AG 2006

Method Layout for Currency Translation

Define in ... Selection Source KeyFigures

x

Translation Key Exchange Rate Deter-mination

Translation Differences

...Method

Visibility

Detail ScreenFast Entry

... all steps

Visibility

Detail Screen

Fast Entry

x x

Item Item

TType

When defining a method layout, note the following aspects and their effect on the translation method:

You can define the selection on the fast entry level. (For each step you can select either a single item or a range of items.)

The source key figure is globally visible for the entire method and can be specified (local currency should be translated to group currency).

You define the translation key and exchange rate indicator individually for each step (this enables each step to be translated separately).

You determine the items for the translation differences that occur separately for each step in fast entry; movement type is determined globally for all steps however using the Difference detail screen.

This means you can maintain a separate differential item for each method entry. The same movement type should be used for all differential items however. To avoid having to keep altering the movement type at each individual stage, this is set generally for all translation entries.

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SAP AG 2006

Method Entries

Reference Translation Special Translation Differences Fast Entry

Step Item Debit Item Credit Item Navigation001002003004

10000000-2999999930000000-30310000,...3031100030312000

25814000258140002581400025814000

25814000258140002581400025814000

Reference Translation Special Translation Differences

Character SelectionItemInvestee PC

10000000-29999999

Source Key Figures

Translation Keys

Exch. Rate

Source Key Figures Periodic Value in LC

Translation Keys Cumulative

Exchange Rate Indicator 1

Reference Translation Special Translation Differences

Character C/T Diff. C/T Diff. DefaultItemTrans. Type

25814000280

25814000280

On the Fast Entry tab page, you maintain the item or item ranges along with the differential items. The source key figure (periodic value in LC) is displayed for the individual translation, but stored globally in the method. Translation key and exchange rate indicator are maintained for each step.

From SEM-BCS Release 4.0 onwards, you can use consolidation chart of accounts hierarchies to facilitate maintenance. Alternatively, you can define individual selections in advance that can be used again and are not dependent on methods.

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SAP AG 2003

Rounding Differences

B/S in local currency before translation B/S in group currency after translation

Bal. SheetEquity & Liabilities

Assets

1500.01 1500.00

Bal. Sheet

Equity & LiabilitiesAssets

1000.00 1000.00

Results of Rounding Check:Checks:

• Total of range = 0

• Total of two ranges = 0

• Values of range withsubitem must be identical withanother range.

Rounding of Difference

0.01

Difference0.01

As well as currency translation differences, the translation of reported data can also produce differences caused by the system rounding up or down. If rounding differences occur, translated data will not conform with certain validation checks such as: total assets = total liabilities and equity.

The system detects differences that have occurred by means of rounding checks. These differences are then posted to the differential items designated in the rounding entries.

Three rounding types are available for defining rounding entries:

Rounding Type 1: Selection 1 = 0

With this rounding type, the system computes the total for all data records found (depending on selection) and posts the total to the differential accounting object you have specified.

You can use this rounding type to check that total assets equal total liabilities and equity for instance - in other words, whether the total of all balance sheet items equals zero.

Rounding Type 2: Selection 1 + Selection 2 = 0

You can use this rounding type to add values for the two selections together and check if the total is equal to zero.

You can also use this rounding type to check if accumulated depreciation in the balance sheet matches depreciation expense in the income statement after currency translation for instance.

Rounding Type 3: Selection 1 = Selection 2

This rounding type checks if the two selections have equal values.

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SAP AG 2006

Totals Database: Translation Differences Record

1760

1100

1660

000/CYYY 012/CYYY

1000 100

Value in GC Ref. E/R

Value in LC

RER old = 1.5 RER new = 1.60

1500 160

Diff. Ref. ER old/new: 0.1

100Value in GC =Translation Differencefrom Revaluation of Prior Year Value

CYYYY: Current YearDiff. Ref. ER old/new: Diff. Ref. ER old/new:LC / GC: Local / Group Currency

2

Translation Indicator

Translation Difference

1000 * 0,1 = 100

Use the cumulative translation method to generate the translation differences.

The change of the reference exchange rate between period 000 and period 012, results in the translation difference of 100 (1000 LC * 0.1 GC/LC) for the value 1,000 from period 000. The system calculates the difference as follows:

Reference value cumulative to period 012 1,760

Reference value cumulative to prior period 1,500

Reference value of period 012 160

= Translation difference at the prior period 100

This special disclosure is specified in the method entries and recorded in the totals cube using the translation indicator.

The above example shows records with translation indicators 0 (original record) and 2 (the translation difference between the old and the new reference exchange rate is shown here for the prior period value).

In reports you can analyze the effect of the currency translation using the characteristic translation, and display the generated records per translation key.

You can post the foreign exchange effects for the opening balances (original and accumulated valuation allowances) on separate movement types.

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SAP AG 2006

Asset History Sheet: Recording Temporal Differences

Translation of openingbalance to current E/R of prior year

Posting of translation difference from (1) to originating item with movementtype subitemOpening balance total

Translation withcurrent E/R

Closing balance total

ClosClos--BalBalPYYYPYYY

Temporal Temporal DifferencesDifferences

Open.Open.BalBal

AcquiAcqui--sitionssitions Clos.BalClos.Bal..

105 100 120

205 200 220

Orig.

VA

......

. . .

. . .

Cur. E/R: Current rate

1 2 3 4 5

1

2

3

4

5

If you translate asset values using the current exchange rate for the current period instead of historically by year of acquisition, temporal translation difference will occur when the current exchange rate changes with a new fiscal year. The closing balance for the prior year no longer corresponds to the opening balance of the current year.

As the asset items are always broken down by subitem, temporal translation differences are separately recorded by means of movement types.

In the asset history sheet above, the following subitems (consolidation movement types) are used:

105 opening balance translation differences

205 value adjustment translation differences

100 opening balance, original cost

200 opening balance, accumulated depreciation

120 additions

220 depreciation

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SAP AG 2003

Currency Translation: Summary


Define a currency translation method

Define selected items that you require for posting translation differences that affect net income

Execute the currency translation task in the consolidation monitor

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Exercises

Unit: Currency Translation Topic: Currency Translation and Rounding


Define tasks for currency translation and rounding, and execute them in the consolidation monitor.

Once the individual statement data has been standardized to meet the group's accounting policies, it is necessary to perform currency translation and rounding to any data that was reported by consolidation units in their respective local currency.

1-1 Call up standard layout 04010 for currency translation

Familiarize yourself with the layout.

1-2 Enter the item ranges you need for currency translation as individual selections.

Individual selection enables you to define item ranges that are required repeatedly in SEM-BCS once and use them several times. The exercise is limited to the example of asset items, as this reduces the number of Customizing settings required for currency translation. Enter an individual selection for the item characteristic. Limit the ranges to 12000000 to 12313000 and 12330000 to 12999999. Describe them as “noncurrent assets”.

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1-3 Define a method for the currency translation.

Name 14500 based on method layout 04010.

Description: Currency Translation

Define the currency translation with the following properties:

1-3-1 Reference Translation:

Source key figure: Period value in local currency

Exchange rate type 1 (current rate)

At this point leave the Rounding method blank.

1-3-2 Specific Translation:

Source key figure: Period value in local currency (this key figure is the initial base for all method entries you record in Fast Entry.)

Define the following settings on the Fast Entry tab page.

Field Name/Data Type Values

Step 01:

Trans. Type

Translation Key


Currency Translation Differences:

Subitem (debit/credit)

From 12000000 to 12313000

From 12330000 to 12999999

Use your individual selection from exercise 1.1 100

Cumulative

4 (leave the item field blank)

105/105

…

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…

Step 02:

Item:

Trans. Type

Translation Key



Item (debit/credit)

Subitem

From 12000000 to 12313000

From 12330000 to 12999999

Use your individual selection from exercise 1.1 200 Cumulative

4

leave the item field blank 205/205

Step 03:

Item:

Trans. Type

Translation Key



Item (debit/credit)


From 12000000 to 12313000

From 12330000 to 12999999 Use your individual selection from exercise 1.1

120 – 199 and 210 - 299

Cumulative

1

25811000

640/ 620

…

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…

Step 04:

Item

Translation Key



Item (debit/credit)

Trans. Type

From 10000000 to 11999999

From 12314000 to 12323000

From 20000000 to 29999999

Cumulative

1

25814000

640/620

Step 05:

Item

Currency Translation Key:



Item (debit/credit)

Subitem

39000000

Periodic

2

25712000

640 (debit) / 620 (credit)

Step 06: Translation of income statement items

Item



Currency Translation Differences

Item (debit/credit)

Subitem

From 30000000 to 38999999 Periodic 2 25813000 CTD for stockholders’ equity 640/620

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1-4 Define a method for rounding.

Name 14600 based in the method layout from the standard system 04310.

Description: Rounding

Key Figures tab page


Key figure to be checked Period value in local currency

Key figure to be rounded Period value in group currency

Fast Entry tab page: Choose Navigation to go to the detail level.

Rounding type for all steps: the values of each range should balance to zero.


Step 01:

Item Values

Rounding Differences:

Item (debit/credit)


From 25712000

From 39000000

(Enter two FROM values)

25712000

620

Step 02:

Item Values


Item (debit/credit)

Subitem

From: 10000000

To: 29999999

25813000

620

Step 03:

Item Values


Item (debit/credit)

From: 30000000

To: 39999999

32041000

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1-5 In the currency translation method overview, assign the rounding method to your currency translation method.

Save your entries.

1-6 Create a task for the currency translation.

Technical Name 14900.

Description: Currency Translation

Consolidation Frequency: Quarterly

Period Category: Quarterly; same method (400)

Assign the method 14500 to the task.

Save your entries.

1-7 Assign the currency translation task to your task group DATA1 and regulate status management with an appropriate preceding task.

1-8 Execute the currency translation in the consolidation monitor.

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Solutions

Unit: Currency Translation

Topic: Currency Translation and Rounding

1-1 Calling up the method layout for currency translation

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method Layout/ Currency Translation/ Display entry 04010 in the details for customizing objects

1-2 Enter the selections you need for currency translation as individual selections.

As you want to translate currency in the assets area dependent on the movement types, group the asset items together in a selection.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Master Data/ Single Selection

Select Create in the context menu.

Select the entry “Choose Field Name” and the “item” characteristic from the input help. Give the individual selection the name "noncurrent assets". Now you can define the selection in the workbench work area. Items 12000000 to 12313000 and 12330000 to 12999999 are there for the selection of noncurrent assets. Maintain both sub-ranges in an individual selection. Note: In practice, you would not translate investment items like tangible fixed assets. In order not to further complicate the course example, you should avoid going into this degree of detail.

1-3 Defining a currency translation method

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method/ Currency Translation/ Create a new entry in the details for customizing objects Assign 14500 as the technical name and enter currency translation in the text field.

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1-3-1 Settings for reference translation:


Reference Translation: Source Key Figure Period value in local currency

Exchange Rate Indicator 1 (current exchange rate)

1-3-2 Defining the settings on the Specific Translation tab page


Source Key Figure Period value in local currency

All other settings are made on the Fast Entry tab page; specific translation and differences are made at the step level. Whenever necessary, add the Movement Type characteristic to the selection. (This is possible at the step level using Add Characteristic)


Step 01:

Trans. Type

Translation Key




From 12000000 to 12313000

From 12330000 to 12999999

Use your individual selection from exercise 1.1 100

Cumulative

(Leave the item field blank)

105/105

…

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…

Step 02:

Item:

Trans. Type

Translation Key



Item (debit/credit)

Subitem

From 12000000 to 12313000

From 12330000 to 12999999

Use your individual selection from exercise 1.1 200 Cumulative

4

Leave the item field blank 205/205

Step 03:

Item:

Trans. Type

Translation Key



Item (debit/credit)


From 12000000 to 12313000

From 12330000 to 12999999 Use your individual selection from exercise 1.1

120 – 199 and 210 - 299

Cumulative

1

25811000

640/ 620

…

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…

Step 04:

Item

Translation Key



Item (debit/credit)

Trans. Type

From 10000000 to 11999999

From 12314000 to 12323000

From 20000000 to 29999999

Cumulative

1

25814000

640/620

Step 05:

Item




Item (debit/credit)

Subitem

39000000

Periodic

2

25712000

640 (debit) / 620 (credit)

Step 06: Translation of income statement items

Item



Currency Translation Differences

Item (debit/credit)

Subitem

From 30000000 to 38999999 Periodic 2 25813000 CTD for stockholders’ equity 640/620

Save your entries.

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1-4 Create a method for rounding.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method/ Rounding/ Create a new entry in the details for Customizing objects Assign 14600 as the technical name and enter currency translation in the text field.

Next, choose Navigation on tab page Fast Entry to go to the detail level.

Rounding type for all steps: the values of each range should balance to zero (rounding type selection 1 = 0).

Key Figures tab page


Key figure to be checked Period value in local currency

Key figure to be rounded Period value in group currency

Fast Entry tab page: Choose Navigation to go to the detail level.


Step 01:

Item Values


Item (debit/credit)


From 25712000

From 39000000

(enter both numbers as FROM values in the range)

25712000

620

Step 02:

Item Values


Item (debit/credit)

Subitem Cat.

Subitem

From: 10000000

To: 29999999

25813000

620

…

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…

Step 03:

Item Values


Item (debit/credit)

From: 30000000

To: 39999999

32041000

Save your entries.

1-5 Specify the new rounding method in your currency translation method.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method/ Currency Translation/ Call up your own currency translation method in the details for Customizing objects

Make the following settings on the Reference Translation tab page:

Field/Data Type Value

Rounding: Method The rounding method you defined in exercise 3.1 (14600)

1-6 Creating a task for currency translation

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Task/ Currency Translation/ Create a new entry in the details for Customizing objects. Name it 14900, with the text Currency Translation.

Field/Data Type Value

Consolidation Frequency Assignment Quarter

Method Assignment: Period Category All quarters follow same method

Method The currency translation you defined in task 2.1

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1-7 Assigning currency translation to task hierarchy DATA1

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Task Expand your existing hierarchy. Draw your currency translation method from Nodes Not Allocated and assign them to task group DATA1 after manual posting.

To ensure that the currency translation is opened when new reported financial data is loaded into the system, go to

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Preceding Task Relationship Use Drag&Drop to draw the data collection to the currency translation. Save your entries.

1-8 Executing currency translation in the consolidation monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor Select the top consolidation group and start the currency translation for all consolidation units using Update.

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SAP AG 2003


Contents:

Logic of interunit elimination in a hierarchically-structured corporation

Two-sided and one-sided eliminations

Using method layouts

Splitting differences for separate disclosure of currency-related differences

Elimination of IU Profit in Inventory

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SAP AG 2003

Interunit Elimination: Objectives


Describe the logic of interunit elimination in a hierarchically-structured corporation

Use method layouts

Define two-sided and one-sided eliminations

Elimination of IU Profit in Inventory

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface





Reporting



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SAP AG 2003

Interunit Elimination: Business Scenario

The units to be consolidated report item values forinterunit receivables and payables.

Sales revenue has been produced within the group byexchanging goods and services with affiliatedcompanies.

Goods produced internally within the group partlyremain on the inventory balance until balance sheetdate. On the sale, a profit has been generated thatneeds eliminating.

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SAP AG 2006

Elimination of IU Payables/Receivables (Concept)

Other Receivables 20

Aggregated Balance Sheet

Consolidated Balance Sheet

250

400

IU ReceivablesAssets

Inventory12030

Equity100

400

280IU Payables

250

300

Assets

Inventory 30

Equity

300

280

Payables to 3rd P. 20

Payables to 3rd P. 20

A consolidated balance sheet shows only payables and receivables that relate to non-affiliated (third-party) companies. Payables and receivables resulting from the exchange of goods and services within the corporate group must be eliminated.

In the example above, the system interprets the elimination difference between the receivables record (in the totals database) of unit A and the payables record of unit B as miscellaneous receivables and posts this automatically. Elimination differences can be posted with or without (as in this example) effecting net income. The character of the triggering position and the elimination differential assignment are, therefore, very important here.

The selection of data records for interunit elimination also includes standardizing entries with posting levels 01 through 10.

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SAP AG 2006

Interunit Elimination: The Principle

World

APAEurope

Japan (JP)France (FR)Germany (DE)

Item Amount Partner

Recv. 20 FR. . .. . .Recv. 50 JP

Item Amount Partner

Verb - 20 DE

Item Amount Partner

. . .

. . .Pay. - 60 DE

Elimination entries are always two-sided. Data needs to be reported with partner assignments for two-sided elimination, otherwise items cannot be eliminated.

Hierarchy information is taken into consideration in the posting. Only companies within the European consolidation group can consider themselves affiliated companies. The Americas group regards the Japanese subsidiary as a (non-affiliated) third party. The Americas group discloses the receivables to and payables from Japan in its financial statements.

At the World level, all companies within the group can regard themselves as affiliated. All interunit trade relationships are fully eliminated at this level only. This includes the receivables and payables between Americas and Japan.

The interunit elimination can only be executed in a consolidation group hierarchy, as with all the other tasks you have studied so far in this course. The status of the "other" hierarchies in the monitor is updated automatically.

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SAP AG 2006

Selection Logic of Interunit Elimination

Receivables

4000

Selection 1

Consolidation Unit:Consolidation Unit A

Consolidation Unit:Consolidation Unit B

(partner unit of consolidation unit A)

Item:

Elimination Differences:500

Payables

3500

Item:

Selection 2

(partner unit of consolidation unit B)

Above is an example of the elimination of IU payables and receivables:

Selection 1: Receivables (all items with receivables from affiliated companies)

Selection 2: Payables (all items with payables from affiliated companies)

You determine the consolidation group to be used in the interunit elimination or reconciliation when the corresponding task is started in the consolidation monitor: There you place the cursor on the junction between the consolidation group and the task, then you execute the task.

It is easy to use interunit elimination for determining elimination differences in advance and cleaning them up afterwards by making manual adjustments. To do this, you create a separate task to which you then assign the IU elimination method. The system describes these tasks as reconciliation tasks. Reconcilliation tasks can be executed directly after the data is entered. The log, however, only shows one balance list. A currency translation from the house currency into the group currency is executed "on the fly" (temporarily, however, for the log).

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SAP AG 2003

Document Type for Interunit Elimination

The document type for interunit elimination is posted on level 20. Using this level ensures that, for the purposes of reporting, only those levels are included in the selection that are affiliated.

A separate document is posted for each relationship of two consolidation units. You can further restrict this by using additional characteristics.

Document type needs to "post in transaction currency" to be able to separately post currency-related and true elimination differences. Values are only posted in group currency however. Transaction currency is shown in the audit trail.

Due to the automatic inversion process, documents from the last consolidation period are first inverted in the next period before processing begins. Yearly cumulative values are posted in the new consolidation statement documents. If this inversion process is not carried out, the document will only ever post new period value in the elimination. This is not usually helpful for the user department, which needs to be informed of elimination differences as soon as possible.

The inversion process can also be carried out for the new fiscal year. This is a good idea for eliminations that only occur in the balance sheet. For income statement eliminations, inversion should be suppressed at year end, as income statement values do not constitute part of the balance carryforward and hence this enables the income statement for the new year to start with zero balance.

If you want to use the splitting of differences feature in the interunit elimination method, you must use the transaction currency key figure for document type.

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SAP AG 2006

Inside an Interunit Elimination Method

Interunit Elimination Method

Other Options

Single Values or Ranges

Items for Currency-Related Differences

Items for Other Differences

Value 1 Value 2

Debit Credit

Debit Credit

Difference Strategy


Use a Threshold

Difference Split

One-Sided Elimination

Post to Triggering Unit

You can create multiple ranges of items for each IU elimination method. The first range contains the items for elimination, the second range the corresponding offsetting items.

To restrict the item values for elimination, you can specify the following characteristic values for each item range: subassignments, consolidation units, or partner units. The selection only finds the records that meet the specified criteria.

You can use one of the following strategies for posting elimination differences for a given unit.

Items: Posting at consolidation unit that reports values for range 1 (receivables) or range 2 (payables).

Lower/higher value: Postings against the unit reporting the lower/higher absolute value.

If you set a threshold value, no entry is posted for which elimination differences exist that are above this value. The threshold can be set up for each difference line item or for each elimination step.

Splitting differences into differences that are currency-related or otherwise is only possible if the values are reported in both transaction and local currency, and the document type posts in transaction currency.

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SAP AG 2006

Method Layout for Interunit Elimination

Layout 05510 Two-Sided Elimination, Standard

Define in ... Diff Strat. CU Selection1 Selection 2 OtherDiff. Currency Diffs...the Method

VisibilityDetail ScreenFast Entry

Item Item Item Item

Alloc. Cons PCCons. PC GrpDocument TypePartner Cons. fCons. ProfitCeCompanyItemCurrencyFunctional AreaMvmt. TypePartner Comp.Alloc. CompanyCons GroupInvestee UnitInvestee Partn.

Acq. YearPosting LevelUnit of Measure

Per. 1st Acquis.

Charact...

Activities when defining a method layout:

Specify which characteristics you want to use for methods based on the method layout you are defining.

Now select the target column.

Drag and drop the characteristics to the desired position in the target column. (You can select multiple characteristics using Shift/Ctrl.)

Specify whether you want the method to have steps. If so, drag at least one characteristic to fast entry. To create substeps, proceed in much the same way: Drag the characteristic to fast entry for the step level.

Any values you want to maintain in the detail screen for the method must now be dragged to the detail screen. You can add additional characteristics in the method detail screen.

Specify level (method level or any step level) at which you want individual method components to first be visible.

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SAP AG 2003

Method for Eliminating IU Payables & Receivables

General Selection Differences Limits Fast Entry

Selection

Differences

One-Sided Elimination

Two-Sided Elimination

Per Transaction Currency

Exch. Rate Ind. Current Rate

Use Limits

The elimination method shown above was created using a standard method layout.

Use the General tab to determine whether a method performs one or two-sided eliminations. This is then set for the entire method. It is not recommended that this be changed for individual steps and so the system does not allow this.

If consolidation units report their original amounts in transaction currency, you can split these differences and post them for each individual transaction currency. Selecting Per Transaction Currency causes the system to display additional input fields for currency-related elimination differences on the differences tab. When the exchange rate indicator is entered, this is incorporated in the translation of transaction currency-related differences in group currency. This exchange rate indicator is also referenced if a reconciliation task is assigned to the method. On the fly translation of transaction currency values to group currency values is conducted in the currency type entered here.

You can specify items for elimination in the selection or fast entry.

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SAP AG 2003


SelectionOne-Sided Elimination


Details of Interunit Elimination (1)


Step Item Item Debit Item Credit Item Navigation

001

002 11301200

11301200 21171000

21171000

21175000

21175000

21175000

21175000

General Selection Differences Limits

Limits per Currency KeyCrcy Text Amount of LimitEUR EuroUSD U.S. Dollar

100.000,0050.000,00

In the example above, item 11301200 is cleared against item 21171000 (Step 001).

The differences between the two items are split. (Two lines for elimination differences can be found on the differences tab.) The system automatically posts true differences to items 11301200 and 21181600. Currency-related differences are posted to 25815000 (equity).

If the differential item is broken down by subassignments, the system needs to know which value is posted for each subassignment. In method customizing, you can specify a value for each subassignment; alternatively, you can inherit the value from the original data record.

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SAP AG 2003

Details of Interunit Elimination (2)


SelectionOne-Sided Elimination



Step Item Item Debit Item Credit Item Navigation

001

002 11301200

11301200 21171000

21171000

21175000

21175000

21175000

21175000

General Selection Differences Limits

Limits per Currency KeyCrcy Text Amount of LimitEUR EuroUSD U.S. Dollar

100.000,0050.000,00

If the strategy "consolidation unit with the lower or higher value" is selected, the system posts the difference to the company with the original value that is higher or lower than that of the partner.

This strategy takes into account the key figure field. The system uses this to decide which key figure is to be checked for the higher or lower value.

There are two possible variants for limit checking.

Effects of the limit check can be based on method steps vs. line items

Example: Limit set at 380.

Receivable of CU A from CU B, due date 1: 100.-

Receivable of CU A from CU B, due date 2: 50.-

Payable of CU B to CU A, due date 1: - 500.-

Limit check for each difference line item for each method step

Due date 1 400.- 400.-

Due date 2 50.- - 50.-

Result: No entry posted; difference > 380 Entry is posted; difference = 350.-

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SAP AG 2003

Elimination Sets

Treatment of Differences

Eliminationof Loans

Elimination of Interest Income

Elimination of Interunit Sales . . . Elimination of

I/U pay./rec.

Balance Reconciliation

Item G2 G3 TCPay. 230 115Pay. 200- 110-

30 5

1030 - 10 = 20

Currency-related Difference

Other Difference

E/R 2.0

Unit Partner GC Diff

G1 G2 500 500- 0

G1 G3 120 100- 20

G2 G3 230 200- 30

Difference

Difference Split

The splitting of differences can be understood as the system's analysis of the causes of elimination differences. The system analyzes elimination differences and splits them into two categories depending on their cause. These differences are classed either as currency-related or other differences.

The following are essential prerequisites for difference splitting: Values must be available in both transaction and group currency. Splitting of differences option must be selected in method customizing. A reference exchange rate indicator has been specified for your elimination method. There must be separate differential items for currency-related and other differences. Document type must be defined so that elimination entries are posted in both transaction and group currency.

The elimination of IU payables and receivables discovers that U2 has receivables from U3 to the amount of 230. U3 reports payables to U2 to the amount of 200 however. This means the difference in group currency is 30.

The system examines these values in their original transaction currency in order to split the total difference of 30 into currency-related and true elimination differences. The difference in transaction currency is 5. This amount is translated to group currency internally at the current exchange rate. This variance is classified as a "true" difference because it already existed in transaction currency at the time of the posting

The system now compares this difference of 10 with the total difference of 30. The delta amount of 20 is interpreted as the currency-related difference and posted to the corresponding items.

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SAP AG 2003

Many itemsRelationships/account assignments depend on receiverFrequent errors when assigning expenses in individual statements

Inc. Stmt

Bal. Sheet

Clear overview of partner relationshipsFew items

Assets LiabilitiesLoansReceivables PayablesInterest Receivable Interest Payable

Auditor demands precise reconciliation

Gain ExpenditureNet Sales Materials ExpensesInterest gain Interest ExpenseOther Profits Other Expense...

Only report gain for partnersAssume expense is same for partner

Simplified Elimination in the Income Statement

No elimination difference

One-sided eliminations are a simplified way of performing the elimination process. They are often used to eliminate interunit revenue and expense. The system posts elimination entries based on values for only one item or range of items.

One-sided elimination is used where the time that would be required to find an exact 1:1 relationship between the accounts of two consolidation units is not justified. This is frequently the case when eliminating sales revenue against the cost of goods manufactured.

For one-sided elimination, the item to be eliminated must show the partner unit involved. The system uses this to determine the company for posting the offsetting entry.

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SAP AG 2006

Elimination of Interunit Profit/Loss in Transferred Inventory Basics

Company BCompany A

Production

100 Units Sale 50 Units

Warehouse

50 Units In Car

Sale

Product group:

01 Airplane instruments

Production costs: 10 $/unit

10% Profit$ 1100

$ 550Required value of tachometer in group: $ 500

Elimination of interunit profit or loss in transferred inventory is carried out as a result of the sale of inventory within the group. Since this inventory is entered on the invoice at market prices, an interunit profit is recorded by the supplying company. (Values in the individual financial statements of the inventory-managing company are higher than the group cost of goods manufactured.)

Items requiring elimination are usually found in the:

Finished goods or trading goods sold internally within the group

Unfinished goods that are processed further as part of the production process

Raw materials and operating supplies that are to be consumed in the production process

From a group perspective, a profit situation can only arise when the complex fixed asset has been sold outside the group. Consequently, interunit profits/losses for assets that are no longer part of the inventory on the balance sheet date (as they have been sold to a third party) are not taken into account.

As of SEM-BCS 6.0, it is not possible to carry out the elimination along the supply chain.

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SAP AG 2006

Execution of Elimination of IU Profit/Loss in Transferred Inventory

Company B

Product Group Partner Margin

Airplane Instr. B 10%

Product Group Partner Cur. As.

Airplane Instr. A 550

Additional Financial DataSupplying Unit

Additional Financial DataInventory-Managing Unit

GainExpense Debit Credit

Sales 1100

ManufacturingCosts

1000

OtherExpenses

50

Current Assets

Company A

50

Supplying unit A deduces from supplier data ODS that when sales of items from product group "airplane instruments" are made to Unit B, a profit of 10% is made.

Unit B, which manages the inventory, deduces from inventory data ODS that the value of airplane instruments supplied by Unit A currently in stock is 550 in local currency.

The task for elimination of I/U profit/loss finds the pair relationship and reduces inventory balance for Unit B by 10%. Offsetting entries take place for the supplier, for which the same amount of expense is posted. Financial statement balancing adjustments are performed. These are not depicted on the slide for the sake of clarity.

Rather than eliminating the full amount of interunit profit/loss in each period, the system only eliminates the difference since the prior period. This is done as part of the delta posting.

In the document type, you can define whether you want documents to be automatically inverted. If you do not want the documents to be automatically inverted, the system calculates the interim result for the current period and the previous period. In the current period, the interim result for the previous period is only reported in the log. It is not posted. Only the delta value is posted. If you set up an automatic inversion of the documents, the period initialization inverts the prior period values before the period values are posted. Only the delta value for the prior period is eliminated.

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SAP AG 2006

Location of Values

Elimination of interunit profit in transferred inventory determines the information required for the automatic postings from the supplier and inventory data.

The supplier data must be made available to the consolidation system in the form of additional financial data. Either a profit percentage or the cost of goods manufactured for each unit of measure is defined in the supplier data for every combination of inventory item, product group, and inventory-managing unit.

Supplier data is valid as soon as it is entered. The supplier data needs to be changed if the gross operating margin changes.

The inventory data is also recorded by means of additional financial data.

Explanation of "Also Consider Valuation Allowance" indicator: Set this indicator if the amortization, which was carried out against an asset in individual financial statements, is included in the calculation for the cost of production.

Explanation of "Post Interunit Losses" indicator: Where an interunit loss occurs (negative difference between posting value minus group production costs), the system executes a revaluation of the higher group production costs.

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SAP AG 2003

Product Groups

Product Group

Hierarchies Name

PROD Hierarchy of Product Groups

PG1 FoodstuffsPG2 Textiles

PG3 ToysPG4 Electronics

PG5 PharmaceuticalsPG6 Office Equipment

PG7 Metals

You can use product groups to relate assets to an elimination item using greater detail. This enables completely different goods to be in stock for affiliated companies for the "Goods Inventory - Production" item for instance. These different assets are analyzed using the product group. The 'finished goods from production' item for a foodstuffs manufacturer, for example, may contain both food and beverages. Using the product group enables you to process both lines of business separately. You can maintain posting items for the item and product group combination.

IU profit/loss is calculated at product group level. Posting takes place at inventory item level.

You define product groups as you desire according to business needs.

Product group hierarchies are stored under a special hierarchy version. This special version can be used in various consolidation areas and data bases.

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SAP AG 2003

Posting Items

Version Company Cons Group Cons. PC Period/Year 012 2002

Posting Items

Item Description Product Group Description

11411000-11415000 11411000-11415000 10000-30000 10000-30000

Offset Item C/T Difference Distr. Costs from Distr. Costs to

Charact. Debit Description Credit DescriptionItemAlloc. Co.Alloc. PrCtr.

32092000 Other expense 32091000 Other income

When defining posting items, you need to determine which items are to be posted in the balance sheet and income statement automatically for the purpose of interunit elimination profit/loss.

For each inventory item and product group combination, you need to define items for adjusting the IU profit/loss, a currency translation differences item, if required, and an item for distribution costs.

IU profit/loss is cleared from the inventory item. Offsetting entries are usually posted in the income statement with an effect on net income.

In the case of IU profit/loss having an effect on net income, you can decide where the system posts the elimination effects for every item and product group combination.

When defining a task, you need to decide whether the offsetting entry is to be posted to the inventory-managing or supplying unit.

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SAP AG 2003

Interunit Elimination: Summary


Describe the process of interunit elimination in a hierarchically-structured corporation

Work with method layouts

Define both two-sided and one-sided eliminations

Use the system to eliminateIU profit in the inventory.

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Exercises

Unit: Interunit Elimination Topic: One-sided and Two-sided Elimination


Define a method for two-sided, as well as one-sided interunit elimination, and execute the task in the consolidation monitor.

Setup and perform the elimination of interunit profit in transferred inventory.

After currency translation, all of the standardized financial data will be in group currency. The data is of a quality that allows the system to generate elimination postings. You will define a task to automatically execute the elimination of IU payables and receivables task and the elimination of interunit sales task using the consolidation monitor. Addionally, you will update the interunit profits in the internal inventories.

For the automatic postings in the elimination of IU payables/receivables, you need a document type that automatically eliminates payables against receivables.

1-1 Elimination of payables to/receivables from affiliated companies

1-2 Defining the document type: Create document type #2, Elimination of IU payables/receivables:

(#2: substitute # with A [group 1], B [group 2], … or R [group 18])

The following additional requirements regarding the document type have to be considered:

Enter the following:


Posting Level 20

Balance Check 0 (error if balance does not equal zero)

Application Other

Posting Automatic Posting

Inversion Automatic Inversion - also in New Fiscal Year

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The document type automatically posts in transaction and group currency. Do not make any settings for deferred taxes.

Use the existing number range T1.

1-3 Define the method for elimination of IU payables and receivables

Name: 20000 based on the standard method layout 05510

Description: Elimination of IU payables/receivables

Assign the following properties:


Selection Two-sided elimination

Differences Per Transaction Currency

Differences are split using exchange rate indicator 1 (current rate).

The method works without any limits.

The elimination of payables/receivables should be performed globally for all payables/receivables items in a single step.

Selection tab page


Step 001 selection (1)

All receivable items from affiliated companies

11301100 IC Trade Receivables

11301200 IC Notes Receivable

11301300 IC Interest Receivable

11301400 IC Dividends Receivable

11301500 IC Other Receivables

11302000 Allowance for Doubtful Accounts


All payable items to affiliated companies

21171000 IC Trade Payables

21172000 IC Notes Payable

21173000 IC Interest Payable

21174000 IC Dividends Payable

21175000 IC Other Payables …

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Other Differences

Enter the differential items for real elimination differences here

11311200 Miscellaneous Receivables Debit

21181600 Other Current Liabilities Credit

Currency Differences

Enter the differential items for currency-related elimination differences here

25815000 Debits with movement type 640 CTD-Other

25815000 Credits with movement type 620 CTD-Other

Save your entries.

1-4 Define a task for the elimination of IU payables/receivables

Define task 20000 with description Payables/Receivables.

Short text IU Pay/Rec, medium text IU Payables/Receivables

The task is executed every fiscal quarter. Assign document type: #2 and

method 20000.

Save your entries.

1-5 Add task 20000 to the consolidation monitor.

First, create a new task group CONS. In this unit, all tasks for interunit elimination should be assigned to this task group. Arrange the order of both task groups so that DATA1 is processed before the contents of CONS.

Assign task 20000 to task group CONS.

Then execute the elimination of IU payables/receivables in the consolidation monitor.

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Optional Exercise: Elimination of interunit sales 1-6 Elimination of sales revenue from affiliated companies:

The elimination of IU sales will be a one-sided elimination.

1-7 Defining the document type: Create document type #3 for eliminating IU sales.

(#3: substitute # with A [group 1], B [group 2], … or R [group 18])

The following additional requirements regarding the document type have to be considered:



Posting Level 20


Application Other


Inversion Automatic inversion within a Fiscal Year

The document type is used for automatic posting in group currency.

Enter number range T1.

Save your entries.

Optional exercise for elimination of interunit sales 1-8 Create a method layout

In the elimination of IU sales you want to clear (a) the IU revenue from the sale of goods with the cost of goods manufactured, (b) the IU revenue from the sale of services with the cost of services, and (c) other operating revenue with the cost of other operating revenue. The method layout delivered in the system does not permit the elimination over multiple steps. You therefore create you own method layout. Name: 10000

Make the following settings: The Item characteristic should be ready for input in Selection 1 as well as in the Other Difference column via Fast Entry.

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1-9 Create a method for eliminating IU sales

Create the method 21000 for the IU sales elimination. Use your method layout 10000. Set the elimination to one-sided elimination.

Enter the following properties for the IU sales elimination:

General


Selection One-Sided Elimination

Exchange Rate Indicator 1 (current rate)


Post Differences to Partner Unit

Fast Entry


Step 001: Item

(Revenue from IU sales of goods)

30110000 Goods

30210000 Discounts and Returns, Goods

Step 001: Debit/Credit Item

(Cost of goods manufactured for sales)

Enter the item for the offsetting entry at the partner company here.

30312000 DEBIT IC Cost Of Goods Sold

30312000 CREDIT IC Cost Of Goods Sold

Step 002: Item

(IU revenue from the sale of services)

30120000 IC Net Sales from Services

Step 002: Debit/Credit item

(Service costs)


30322000 DEBIT IC Cost Of Services

30322000 CREDIT IC Cost Of Services

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Differences

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Step 003: Item

(Other operating revenue)

30130000 Other IC Operating Revenue

30230000 Discount, Other IC Operating Revenue


(Costs of other operating revenue)


30332000 DEBIT IC Cost Of Other Operating Revenue

30332000 CREDIT IC Cost Of Other Operating Revenue

Save your entries.

1-10 Defining the task 21000

Define task 21000 with the name Gr. ## Elim. Of IU Sales (where ## = your two-digit group number)

Short text IU Sales, medium text Elim. Of IU Sales

Assign document type #3 and method 21000 to the task. Set the consolidation frequency and the period category to Quarterly, and use the same method (400).

Save your entries.

1-11 Assign the IU sales task to the CONS task group

Assign the task for eliminating IU sales to task group CONS and then execute the task in the consolidation monitor.

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Unit: Interunit Elimination Topic: Elimination of IU Profit in Inventory


Define a method for eliminating interunit profit in transferred inventory.

Current assets have been sold between the affiliated companies at an IU profit and are still linked to inventory on the balance sheet date. You want to devalue the inventory by this IU profit so that you can consolidate the financial statement imbalances from the reported data.

2-1 Create document type #4 for elimination of interunit profit/loss.



Posting Level 20


Application Other


Inversion No automatic inversion

The document type is used to automatically post in group currency.


Save your entries.

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2-2 Define inventory items:

The following inventory items in transferred inventory have been defined in the consolidation chart of accounts.

Item

11411000 Raw Materials

11412000 Work in Process

11413100 Goods Inventory – Purchasing

11413200 Goods Inventory – Production

11414000 Supplies

11415000 Other Inventories

2-3 Enter the posting items:

Elimination is to be carried out for all inventory items and product groups 10000 to 30000 against the other expenses and income. (Use the interval in exercise 2-2 for the inventory items)

Field Name and Posting Item Description

Offset Item, Debits 32092000 Other Expenses

Offset Item, Credits 32091000 Other Income

C/T Difference, Debits 32042000 Exchange Losses

C/T Difference, Credits 32041000 Exchange Gains

Save your entries.

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2-4 Define a task for eliminating IU profit/loss in inventory Define task 22000; Description Gr. ## Elimin. IU P&L Inv. (## = your two-digit group number)


Short Elimination of IU P&L Inv.

Medium Elimination of IU P&L Inv.

Consolidation Frequency Quarter

Document Type Document type #4 you created in section 2-2

Exchange Rate Indicator Current Rate

Comparative Exchange Rate Indicator Average Rate

Also Consider Valuation Allowance No

Post Offsetting Entry to Inventory-Managing Consolidation Unit

No

Post Interunit Losses No

Fiscal Year of First Execution 2002

Period of First Execution 012

Save your entries.

2-5 Assign the Elimination of IU Profit/Loss in Inventory Task to the CONS task group

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2-6 Elimination of IU profit in inventory The inventory data is read from the additional financial data (entered online) for eliminating the IU profit/loss in inventory. Enter the inventory data for the balance sheet date as well as the calculated markups from the supplying units. First, adjust the data collection task so that the data can be collected manually in the additional financial data (ODS object).

Inv.-Managing CU

Inventory Item

Supplying Unit

Product Group

Inventory Value in LC

Profit Margin in Percent

C1000/1220 11412000 C3000/1220 10000 305343,50 25% gross margin

C9000/2210 11412000 C3000/2210 20000 750000 10% gross margin

After you have entered the data, execute the Elimination of IU Profit/Loss in Inventory task.

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Solutions

Unit: Interunit Elimination Topic: One-sided and Two-sided Elimination

1-1 Elimination of payables to/receivables from affiliated companies

1-2 Create a document type

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ IU Elimination and Reconciliation/Document Type/ Create a new entry in the details for Customizing objects


Posting Level 20 – Two-Sided Elimination


Use Other


Inversion Automatic Inversion – also in New Fiscal Year

Key Figures Post in transaction currency and post in group currency

Number Range T1

Save your entries.

1-3 Create a method for the elimination of IU payables and receivables

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method/ Interunit Elimination/ Create a new entry in the details for Customizing objects

Assign the name you were given for the “elimination of IU payables/receivables” method.

In the selection window, define the method layout 05510, which will be used for setting up the elimination of interunit payables/receivables.

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General tab page


Two-Sided Elimination Select

Differences Per Transaction Currency

Exchange Rate Indicator 1 (current exchange rate)

Selection tab page



All receivable items from affiliated companies

11301100 Rec. (IC Trade)

11301200 IC Notes Receivable .

11301300 IC Interest Receivable

11301400 IC Dividends Receivable

11301500 IC Other Receivables

11302000 Allowance for Doubtful Accounts


All payable items to affiliated companies

21171000 IC Trade Payables

21172000 IC Notes Payable

21173000 IC Interest Payable

21174000 IC Dividends Payable

21175000 IC Other Payables

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Differences tab page

Post Differences to Unit from selection 1

Other Differences

Enter the differential items for real elimination differences here

11311200 Miscellaneous Receivables Debit

21181600 Other Current Liabilities Credit

Currency Differences

Enter the differential items for currency-related elimination differences here

25815000 Debits with trans. type 140 CTD-Other

25815000 Credits with trans. type 120 CTD-Other

Save your entries.

1-4 Set up a task for eliminating IU payables/receivables

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Task/ Interunit Elimination/ Create a new entry in the details for Customizing objects



Document Type Assignment Document type #2 you created in section 1.2


Method The method 20000 you created in exercise 1.3

Save your entries.

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1-5 Add the payables/receivables task to the consolidation monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Task / Create a new entry in the details for Customizing objects Node Type. Task Group In the From field, enter the name of the new task group "CONS."

Drag the payables/receivables task from Nodes Not Allocated to the new task group "CONS."

(Drag the currency translation folder and drop it onto the payables/receivables folder.)

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Optional Exercise 1-6 Eliminate sales revenue from affiliated companies

1-7 Create the document type for eliminating sales revenue

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ IU Elimination and Reconciliation/ Document Type/ Create a new entry in the details for Customizing objects


Posting Level 20 – Two-Sided Elimination



Key Figures Post in Group Currency

Number Range T1

Save your entries.

1-8 Define method layouts for eliminating interunit sales

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method Layout/ Interunit Elimination/ Create a new entry in the details for Customizing objects Select the Selection 1 column. Drag the item from the list of characteristics and drop it onto the fast entry level. Proceed likewise with the Other Differences column. Save your layout.

1-9 Define the method for eliminating interunit sales

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ IU Elimination and Reconciliation/ Method/ Create a new entry in the details for Customizing objects

Use the layout you created in exercise 1.8

Make the following settings on the General tab page:


Selection One-Sided Elimination

Exchange Rate Indicator 1 (current rate)

Use Other

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Make the following setting on the Differences tab page.


Post Differences to Partner Unit

Make the following settings on the Fast Entry tab page.


Step 001: Item

(Revenue from IU sales of goods)

30110000 Goods

30210000 Discounts and Returns, Goods

Step 001: Debit/credit item

(Cost of goods manufactured for sales)


30312000 DEBIT IC Cost Of Goods Sold

30312000 CREDIT IC Cost Of Goods Sold

Step 002: Item

(IU revenue from the sale of services)

30120000 IC Net Sales from Services


(Service costs)


30322000 DEBIT IC Cost Of Services

30322000 CREDIT IC Cost Of Services

Step 003: Item

(Other operating revenue)

30130000 Other IC Operating Revenue

30230000 Discount, Other IC Operating Revenue


(Costs of other operating revenue)


30332000 DEBIT IC Cost Of Other Operating Revenue

30332000 CREDIT IC Cost Of Other Operating Revenue

Save your method.

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1-10 Create a task for eliminating interunit sales

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor / Task: Interunit Elimination / <create a new entry in details for customizing objects>



Document Type Assignment The document type #3 you created in exercise 1.7


Method The method 21000 you created in exercise 1.9

Save your entries.

1-11 Assign the task for eliminating IU sales to task group CONS.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Task Drag the task for eliminating IU sales from the Nodes Not allocated window to the CONS folder and then execute it in the consolidation monitor.

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Solutions

Unit: Interunit Elimination Topic: Elimination of Interunit Profit/Loss in

Transferred Inventory

2-1 Create document type #4 for elimination of interunit profit/loss.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Elimination of IU Profit/Loss in Inventory/ Document Type / Create a new entry in details for Customizing objects


Posting Level 20


Use Other


Inversion No automatic inversion

Key Figure Group Currency

Assign number range T1 to the document type.

2-2 Define inventory items:

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Elimination of IU Profit/Loss in Inventory/ Settings/ Inventory Items In the Item field, enter the following inventory items from the current assets. You can enter the items as a range.

Item

11411000 Raw Materials

11412000 Work in Process

11413100 Goods Inventory - Purchasing

11413200 Goods Inventory - Production

11414000 Supplies

11415000 Other Inventories

Save your entries.

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2-3 Enter the posting items

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Elimination of IU Profit/Loss in Inventory/ Settings/ Posting Items The elimination of IU profit/loss in inventory is triggered by the inventory items. You define these in the Item field.

Enter the following values for the range of inventory items and product groups:

Inventory Items Product Group Range

11411000 to 11415000 10000 to 30000

Use the navigation button to display the details. Define the items for the offsetting entry and translation differences here.

Tab Page and Posting Item Description

Offset Item, Debits 32092000 Other Expense

Offset Item, Credits 32091000 Other Income

C/T Difference, Debits 32042000 Exchange Losses

C/T Difference, Credits 32041000 Exchange Gains

2-4 Define a task for the elimination of interunit profit/loss in transferred inventory.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Elimination of IU Profit/Loss Inventory/ Task/ Create a new entry in details for Customizing objects

Technical name: 22000


Short Elimination of I/U P&L Inv. .

Medium Elimination of I/U P&L Inv. .


Document type The document type #4 you created in exercise 2.2

Exchange Rate Indicator Current Rate …

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…

Comparative Exchange Rate Indicator Average Rate

Also Consider Valuation Allowance No

Post Offsetting Entry to Inventory-Managing Consolidation Unit

No

Post Interunit Losses No

Fiscal Year of First Execution 2002

Period of First Execution 012

2-5 Assign the Elimination of IU Profit/Loss in Inventory Task to the CONS Group

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Task Hierarchy Drag the task for eliminating IU profit in inventory from the Unassigned Nodes window to the CONS folder.

2-6 Elimination of IU profit/loss in transferred inventory Adjust the data collection task Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Method of Data Transfer Call up your data transfer task for entering reported financial data. Make two more entries. These two entries are used to provide the entry screens for inventory and supplier data for the end user.

Data Stream Data Collection Method

Inventory Data Manual Entry

Supplier Data Manual Entry

Save your entries and go to ...

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…


Start data entry in the consolidation monitor for the inventory-managing unit C1000/1220. Call up the additional financial data "inventory data" and enter the values below. Enter the supplier data for unit C3000/1220 in the same way. Enter the data for the other supply relationships between C9000/2210 (inventory-managing unit) and C3000/2210 (supplying unit). Enter the following values in the inventory and supplier data:

Inv.-Managing CU

Inventory Item

Supplying Unit

Product Group

Inventory Value in LC

Profit Margin in Percent

C1000/1220 11412000 C3000/1220 10000 305343,50 25% gross margin

C9000/2210 11412000 C3000/2210 20000 750000 10% gross margin

After you have entered the data, execute the task Elimination of IU Profit/Loss in Inventory in the consolidation monitor.

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SAP AG 2003

Reclassification & Allocation

Contents:

Reclassification

Allocation

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SAP AG 2003


List which accounting requirements can be met with reclassification or allocation

Define a reclassification rule and execute it in the monitor

Define an allocation rule and execute it in the monitor

Reclassification: Objectives

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface





Reporting



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SAP AG 2003

Reclassification: Business Scenario

A subsidiary reports a balance for finished goods. From the group's perspective, these goods are unfinished goods. You want to transfer the balance of the subsidiary's finished goods to the group's unfinished goods in every reporting period.

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SAP AG 2006

500

Trigger

500

Target

500

Source

Reclassification Posting

Reclassification

You can use a reclassification task to transfer balances from one item to another item. The triggering item and the source item can be identical or different (as in this example).

In the consolidation system you can use reclassifications to:

Standardize the financial data reported by consolidation units to meet the group's accounting requirements (standardizing entries)

Reclassify data that is already consolidated

A reclassifcation consists of the following detail settings:

Trigger

Source (optional): Only necessary if the trigger and source are different items

Target (optional): Percentage rate (you can only use a percentage rate if have chosen transaction data as the type of trigger data)

Condition (optional) Reclassify only if the sign of the trigger value is positive or negative.

If you need to distribute the values of one item to several items, you can define an allocation task.

Reclassification posts values with the opposite sign of the source to the target.

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SAP AG 2003

Capital Goods on Own Account

Net Sales

100100 100

from Partner Unit A

Property, Plant and Equipment

100

Receivables

100

Payables

100

Subitem Category 1

Subitem 125

Partner Unit B

Period 06

Capital Goods on Own Account

Net Sales

100100 100

from Partner Unit A

Property, Plant and Equipment

100

Receivables

100(from 06)

Payables

100(from 06)

Subitem Category 1

Subitem 125

Partner Unit B

Period 07

200(from 07) 200

200(from 07)

300

200(from 07)

200 200

to 07

Periodic Reclassification

Unit A

Unit A Unit B

Unit B

Cons Frequency 5 (Monthly)

Periodic reclassification only processes the new values added in the selected period range. In contrast, cumulative reclassification processes the year-to-date value of the current period.

You use this special type of reclassification if (a) the triggering item is not the same as the source item or (b) only a percentage of the value is reclassified.

To set up periodic reclassification, in Customizing of the respective method you select periodic reclassification and specify the desired consolidation frequency for each applicable reclassification rule. This only includes the item values that belong to the current interval of the selected consolidation frequency. Reclassification entries are restricted to the last period in the range of periods specified in the consolidation frequency. For example, in semi-annual consolidation, reclassification entries are posted only in periods 06 and 12.

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SAP AG 2003

Inheritance Logic in Reclassification

Trigger Perc. Rate Condition Source Target

The selection conditions are passed on to the elements as follows

Trigger Perc. Rate Condition Source Target

Inheritance of Values

You can only use a percentage rate if you select the Transaction Data option as the Type of Trigger Data.

Individual percentage rate per trigger

If you want to define a separate percentage rate for each trigger, you must select the per trigger indicator.

You can only select the per tigger indicator if you

selected Ranges for the trigger, and

selected the option inherited from trigger for the percentage rate

Individual condition per trigger

If you want to have a condition for each trigger, you have to set the per trigger indicator under the condition.

You can only set the per trigger indicator if you

selected Ranges for the trigger, and

selected the option Inherited From Trigger for the condition

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SAP AG 2006

Reclassification Triggered By the Debit/Credit Sign

Account 1 Account 2

200 100

Balance = - 100-

Condition

Trigger Source Target

100 100 100Reclassification

Posting

Trigger Source Target100 No

ReclassificationPosting

Condition 1:Reclassification if balance < 0 (if minus sign)

Condition 2:Reclassification if balance > 0

In customizing, you define the reclassification with a condition. For the condition you select the key figure (for example, the local currency) and you determine which balance triggers the reclassification.

Balance > 0, balance > 0, balance < 0, or balance < 0

A reclassification triggered by a debit or credit sign is interesting to consider if, as part of the interunit elimination, instead of using different credit/debit items for posting elimination differences, the netting of differences is done using one single item. Where this is the case, the result may be an atypical balance on the item, which can be reported correctly by means of a reclassification triggered by a credit/debit sign after the interunit elimination at posting level 20.

If the balance meets the condition, the system reclassifies the trigger value from the source item to the target item.

A reclassification with a condition also allows you to restrict the reclassification entries to any characteristics per financial statement item. The per trigger indicator computes a balance per characteristic value.

If you want to have a condition per trigger, you must select the per trigger indicator under the condition.

You can select the per trigger indicator only if both of the following are true:

Ranges were selected for the trigger

Inherited from trigger was selected for the condition

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SAP AG 2003

Using Reclassification to Replace Partner Assignments

Reclassification

Company … Partner …ValueDE USA 40

Company … Partner …Value

DE USA1 10

DE USA2 10

DE USA3 20

USA1

USA2

USA3

Intermediate group USA provides reported financial data

Company … Partner …ValueUSA DE - 40

Examples for using reclassification

Replacing a posted partner assignment with the consolidation unit Intermediary Group USA: In the example, Intermediate Group USA functions as a consolidation unit. Consolidation unit USA collects, consolidates, and reports the data of its own subsidiaries USA1 through USA3.

Each of the other (non-USA) subsidiaries have postings in items with partner breakdowns with USA1 through USA3. However, these partner companies are not shown in the system. To eliminate these relationships with company USA, partner assignments USA1 through USA3 in the reported financial data are replaced by USA. A reclassification task can be used to replace partner relationships.

Finished goods are reclassified as unfinished goods when a finished product must be disclosed as an unfinished product from the group's point of view.

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SAP AG 2003

Allocation

Allocation

There are two variants of allocation.

Distribution

Distribution allocates amounts to receiver objects (accounts, items or cost centers). Distribution decreases the sender object balance and increases the receiver object balance. Debit and credit entries for distribution are made at the respective original accounting object. The information about the original accounting object is retained.

Assessment

Assessment is similar to distribution. However, rather than posting debit and credit entries to the original accounting object, assessments post them to an assessment object (for example, an assessment account). Hence, the information about the original account assignment is lost.

You can use allocation entries with posting level 01 (adjustments to reported financial data) and posting level 10 (standardizing entries).

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SAP AG 2003

Allocation: Example of a Distribution

Sender:

ConsolidationUnit P(Parent Unit)

Distribution:

Transaction Data

Receiver:

S1, Item 9200

S2, Item 9

S3, Item 9

S4, Item 9

Total: 1000

200

300

300

Item 1

2000

Item 2

5000

Item 3

8000

S1

2000 x 200/1000

S2

S3

S4

Item 1 = + 400Item 2 = + 1000Item 3 = + 1600

Item 1 = + 400Item 2 = + 1000Item 3 = + 1600

2000 x 200/1000

2000 x 300/1000

2000 x 300/1000

Item 1 = + 600Item 2 = + 1500Item 3 = + 2400

Item 1 = + 600Item 2 = + 1500Item 3 = + 2400

ConsolidationUnit S1-S4

In this distribution, the trigger and the sender are the same (consolidation unit P). The values of items 1 to 3 of consolidation unit P are distributed to various receiving objects.

The receiving consolidation units are subsidiaries S1 through S4. The receiving items are adopted from the sending items 1:1. Thus, the receiving items are not specified separately. Sender object is the range of items 1 through 3 and is used to determine the receiver objects.

The distribution uses the balances of item 9. The system finds a total balance of 1000 on item 9 for all of the consolidation units. Balance 2000 of item 1 (at parent unit P) is distributed to all subsidiaries according to the distribution key "Values on Item 9" (of the subsidiaries). The balance of the parent unit item is decreased while the balances of the items of subsidiaries S1 through S4 are increased.

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SAP AG 2003

Item 1

300

Item 2

400

Item 3

500

Allocation – Example of an Assessment

Assessment P, S1600

360

120

120

Assessment P

1,200 1,200

Assessment P, S2

Assessment P, S3

Assessment P, S4

50%

30%

10%

10%

Receiver:

ConsolidationUnit S1-S4

Sender:


Trigger:


Distribution

Trigger = consolidation unit P (parent unit), items 1 to 3.

Sender = consolidation unit P with assessment account P.

Receivers = consolidation units S1 through S4, items: each respective assessment account S of the receiving consolidation units.

Distribution = using explicit data (distribution by percentages: 100% is distributed. S1 = 50%; S2=30%; S3=10%; S4=10%)

The values of the trigger are aggregated and posted to the assessment account and then posted to the respective assessment account of the receiver using the predefined percentage rate. The information about the trigger is lost in the process.

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SAP AG 2003

Inheriting Selection Conditions and Values

Sender Receiver Trigger Distributor

Selection conditions are inherited between triggers, senders, receivers and distributors as follows:

Sender Receiver Trigger Distributor

Values are inherited according to the following logic:

The trigger automatically inherits the parameters from the sender. However, you can overwrite them with other parameters if you have not specified a range for the sender.

The distributor automatically inherits the parameters from the receiver. However, with distribution type "transaction data" you can overwrite these parameters with other parameters if you have not specified a range for the receiver.

If you specified a range of values for the receiver, the system distributes the parameters to that range of values.

If you specified a range of values for the sender, you can choose to determine the mode of distribution individually by sender.

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SAP AG 2003

Method Layout

Allocation

Consolidation Area Dim. Version Cons Chart Year Period

Define in ... Sender Receiver Trigger Distribution Characteristics

Item

Cons Unit

Cons Unit

Cons GroupCons UnitSubitem Cat.Investee UnitItemSubassignmentGroup CurrencyLocal CurrencyUnit of Measure

Trash1

In the allocation method, you define how the system calculates and posts automatic consolidation entries.

You can use the standard method layouts (as delivered by SAP) to meet nearly all your allocation requirements.

A method layout determines the following:

How the hierarchy of steps for the methods is laid out

Which characteristics and key figures of the consolidation area are used in the methods

At which point in the methods these characteristics are visible and/or ready for input

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SAP AG 2003

Allocation Method

Distribution Key GeneralTriggerSender/Receiver

Per SenderCharacteristic Sender Default Receiver Distribute DefaultItem 30500000 - 31999999Company C1000 - C3000Cons. Profit Center 1000 1210-1220

In this example, profit center 1000 in companies C1000 through C3000 provides services to operational profit centers 1210 through 1220. To ensure that the costs are disclosed at the profit centers where they were incurred, the balances in item range 3050000 to 3199999 for companies C1000 through C3000 and for profit center 1000 are distributed to profit centers 1210 to 1220. This does not change the costs in each respective company. Only expenses from the management perspective are shown.

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SAP AG 2003

Distribution Key GeneralTriggerSender/Receiver

Per SenderCharacteristic Sender Default Receiver Distribute DefaultItem 30500000 - 31999999Company C1000 - C3000Cons. Profit Center 1000 1210-1220

Allocation (2)

Sender/Receiver Trigger Distribution Key General

Type of trigger data

Selection

Explicit DataTransaction Data

Cumulative Periodic

Sender/Receiver Trigger Distribution Key General

Type of Distribution DataExplicit Data

Transaction DataKey Figure Type Perc. Rate

Values

The values found in item range 30500000 to 31999999 are accumulated and distributed from the sender object to the receiving profit centers according to distribution key percentage rate.

The allocation is cumulative, which means that the values ranging from the beginning of the fiscal year to the current period are allocated to the receiving profit centers.

The values in item range 30500000 – 31999999 are decreased at the sending unit and increased at the receiving unit.

A document type (with posting level 01 or 10) must be created to enable the execution of the allocation in the consolidation monitor. You assign the method and the document type when defining the task. Once the task is assigned in the task hierarchy, it is available for automatic execution in the monitor.

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SAP AG 2003

Reclassification: Summary


List which accounting requirements can be met with reclassification or allocation

Define a reclassification rule and execute it in the monitor

Define an allocation rule and execute it in the monitor

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Exercises

Unit: Reclassification / Allocation Topic: Reclassification / Allocation


Define a reclassification task and an allocation task, and execute these in the consolidation monitor.

After interunit elimination, all of the internal group trade relationships are eliminated.

You want to assign the results of the individual segments to one parent segment. To do this, you use the reclassification function. A subsidiary reports certain finished goods that are considered unfinished from the group's point of view. You need to disclose the balances on the correct financial statement item using the reclassification function.

1-1 Create a method layout for the reclassification

You would like to reclassify the annual net income and the retained earnings from the profit centers to one parent profit center. The method layout delivered in the system does not permit reclassification over several steps. You therefore create you own method layout. Name:17000

Make the following settings: The Item and Profit Center characteristics should be ready for input as Trigger, Source and Target using Fast Entry. Select Source and Target as optional components.

1-2 Definition of a reclassification method

Create a reclassification method and name it 17000. Description:

Reclassification of ANI to Corp PC.

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Trigger tab page


Type of trigger data Transaction Data

Selection Cumulative

Go to the Fast Entry tab page or use the Navigation button to go to the step level.


Step 1:

Trigger: Item Characteristic 39000000

Trigger: Profit Center Characteristic 1000 - 2230

Source: Item Characteristic 25715000

Source: Profit Center Characteristic Inherited from trigger

Source Characteristic Trans. Type 620

Target: Item Characteristic 35999999

Target: Profit Center Characteristic Inherited from trigger

Step 2:




Source Profit Center Characteristic 9000


Target Profit Center Characteristic 9000

Target: Movement Type Characteristic 620

Step 3:




Source Characteristic Trans. Type 600

Source Profit Center Characteristic Inherited from trigger



Target: Profit Center Characteristic 9000

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1-3 Defining the document type: Create document type #6, Reclassification:

(#6: substitute # with A [group 1], B [group 2], … to R [group 18])

The following requirements must be met for the document type.



Posting Level 10


Use Other


Inversion No Automatic Inversion Within a Fiscal Year

Go to the Clearing Items tab page.

Selected Item Values

Clearing – Cons Unit 21199999

The document type is used to automatically post in group currency.


1-4 Create the task 17000 for reclassifying finished goods

Description: Reclassification of ANI to Corporate PC.

Assign document type #6 (from exercise 1.3) and method 17000 (from exercise 1.2) to the task. Set the task to Quarterly and save your entries.

1-5 Assigning the reclassification to the consolidation monitor

Assign the task 17000 to the consolidation monitor. The reclassification takes place after currency translation. Take that into consideration when arranging the task in task group DATA1. Execute the task in the monitor. Regulate status management taking the arrangement into account.

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Optional Exercise 2-1 Reclassifying stock in finished goods to the Unfinished Goods item

2-2 Defining the document type:

Create document type #7, Reclassification:

substitute # with A [group 01], B [group 02], … to R [group 18])

The following requirements must be met for the document type.



Posting Level 10


Use Other


Inversion Automatic Inversion Within a Fiscal Year


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2-3 Define the method for reclassifying finished goods

Enter the following: Description: Reclassification of finished goods

Use the standard method layout 07510 to create your reclassification method 18000.

Define the reclassification with the following properties:



Selection Periodic

Triggering Characteristic: Item 11413100 to 11413200

Triggering characteristic: Company C1000 to C2000

Target Characteristic: Item 11412000

2-4 Create a task 18000 for the reclassification of finished goods

Description: Reclassification of finished goods

Assign document type #7 (from exercise 2.2) and method 180000 (from exercise 2.3) to the task.

Set the task to Quarterly and save your entries.


Assign task 18000 to the DATA1 group in the consolidation monitor. The task should follow currency translation because the reclassification is posted in group currency. Take that into consideration when arranging the task in task group DATA1.

2-6 Execute the reclassification task in the consolidation monitor.

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2-7 Optional Exercise – Allocation

Profit center 1200 ("medicine – general") has operations in or for the companies C1000 to C3000. Operating costs must be distributed from profit center 1200 to operating profit centers 1210 (analgesic substances) and 1220 (diabetic substances) using the relationship 20% to 80%. The values need to be allocated from profit center 1200 to profit centers 1210 and 1220 within each company. Values will not be allocated across companies.

2-8 Defining the document type: Create document type #8 for allocations.

(#5: substitute # with A [group 1], B [group 2], … to R [group 18])

The document type must have the following characteristics.



Posting Level 10


Use Other


Inversion Automatic Inversion Within a Fiscal Year



Specify that the elimination is controlled via a clearing account. You must maintain the clearing account as you are generating a cross-unit posting to posting level 10. Posting level 10 needs each consolidation unit to have a zero balance.



Save your entries.

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2-9 Creating an allocation method

Create method 19000 for the allocation. Use the standard method layout 08010.

General


Sender: Item

Sender: Company

Sender: Profit Center (add the profit center characteristic to the selection)

30500000 to 31999999

C1000 - C3000

1200

Receiver: Profit Center 1210 – 1220 (use the Distribute function)

Trigger: Category Transaction Data


Type of Distribution Data: Explicit Data

Key Figure Type Perc. Rate

Profit Center 1210 gets 20% of the costs

1220 gets 80% of the costs

Save your entries.

2-10 Defining the task 19000

Define task 19000 with the description Gr. ## Profit centers in a company, % (where ## = your two-digit group number)

Assign document type #8 and method 19000 to the task.

Save your entries.

2-11 Assigning the allocation to the consolidation monitor

Assign the Profit centers in a company, % task to task group DATA1. The task should follow currency translation because the allocation is posted in group currency. Take that into consideration when arranging the task in task group DATA1. Execute the allocation in the consolidation monitor.

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Solution

Unit: Reclassification / Allocation Topic: Reclassification / Allocation

1-1 Create a method layout for the reclassification

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Method Layout/ Reclassification/ Create a new entry in the details for Customizing objects In the optional components, deselect the percentage and the condition. Select Source and Target as optional components. Select the Trigger column. Drag the Item characteristic from the Available Characteristics frame to the Trigger column on the Fast Entry level. Proceed with the Source and Target columns. Use the same procedure to create the Profit Center characteristic at the Trigger, Source and Target step level.

1-2 Defining a reclassification method

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Reclassification /Method / Create a new entry in the details for Customizing objects Create a new method.

Assign the name: Reclassification of ANI to Corporate PC. The method will be created on the basis of the layout defined in task 1.1.

Trigger tab page




Perform the following steps on the Fast Entry tab page and use the Navigation button to go to the step level of the method.

...

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Step 1:


Now use the navigation button to call the step level for the method You can maintain further settings there (there are limits for the trigger, source and target).




Source Characteristic Movement Type 620


Target Profit Center Characteristic Inherited from trigger

Step 2:





Source Profit Center Characteristic 9000




Step 3:






Source Characteristic Movement Type 600




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1-3 Defining the document type for the reclassification of ANI to Corp PC

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Reclassification/ Document Type/ Create a new entry in details for Customizing objects


Posting Level 10 Standardizing Entry


Use Other

Inversion No Automatic Inversion Within a Fiscal Year


Key Figures Post in Group Currency

Number Range T1

Go to the Clearing Items tab page.



Save your document type.

1-4 Create task 17000 for the reclassification of the annual net income to the Corporate

Profit Center.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Tasks/ Reclassification/ Create a new entry in the details for Customizing objects Assign the name Reclassification of ANI to Corporate PC to the task.

General tab page


Document Type Assignment #6

Period Category Assignment All quarters follow same method

Method Assignment 17000

Save your entries.

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Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Tasks The details frame shows task groups DATA1 and CONS. Both belong to the same task hierarchy.

Drag the reclassification task from the Unassigned Nodes window onto task group DATA.

Using Drag&Drop, insert the reclassification task behind currency translation.

Save your entries. Open the consolidation monitor and execute the task.

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Optional Exercise: 2-1 Reclassifying stock in finished goods to the Unfinished Goods item

2-2 Defining the document type for the reclassification of finished goods

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Reclassification/ Document Type/ Create a new entry in details for Customizing objects


Posting Level 10


Use Other



Save your document type.

2-3 Defining the reclassification method

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Reclassification /Method / Create a new entry in the details for Customizing objects Create a new method 18000.

Assign the name: Reclassification of Finished Goods. The method will be generated on the basis of Layout 07510. This method layout was automatically generated when the consolidation area was created, and can be used without further modifications for reclassifying unfinished goods.

Trigger tab page



Selection Periodic

Triggering Characteristic: Item 11413100 to 11413200

Triggering characteristic: Company C1000 to C2000

Add the Company characteristic to the trigger to be able to restrict the range of companies from C1000 to C2000. To do this, choose Insert Characteristic and select the Company characteristic.

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Target tab page


Target Characteristic: Item 11412000

Through this setting the method transfers all values that belong to the item range 11413100 to 1143200 to the item 11412000. The check whether transfer data exists is restricted to the companies C1000 through C2000.

Save your entries.

2-4 Creating the task for the reclassification of finished goods

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Tasks/ Reclassification/ Create a new entry in the details for Customizing objects Assign the name Reclassification of Finished Goods to the task.

General tab page


Document Type Assignment #7

Period Category Assignment All quarters follow same method

Method Assignment 18000

Save your entries.

2-7 Assigning the reclassification to task group DATA

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Tasks

The details frame shows task groups DATA1 and CONS. Both belong to the same task hierarchy.

Drag the reclassification task from the Unassigned Nodes window onto task group DATA.

Using Drag&Drop, insert the reclassification task behind currency translation.

Save your entries.

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2-6 Execute the reclassification task in the consolidation monitor.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor/ Expand task group DATA and execute the reclassification at the top node.

2-7 Allocation

2-8 Creating the document type for allocations

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Allocation / Document Type / <create a new entry in details for customizing objects>


Posting Level 10


Use Other




Go to the Selected Items tab page.



Save your entries.

2-9 Defining the method for the allocation

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor / Allocation/ Create a new entry in the detail for Customizing objects Create a new allocation method. Use standard layout 08010.

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Make the following settings on the Sender/Receiver tab page:


Step 001:

Sender item

30500000 to 31999999 is to be maintained as a range (cost interval)

Step 001:

Receiver item

Empty

Sender company C1000 to C3000

Sender profit center (add the characteristic to the selection using Insert Characteristic -> Profit Center)

1200

Receiver company BLANK - the values remain with the sending companies

Receiver profit center 1210 and 1220

Make the following settings on the Trigger tab page.




Make the following settings on the Distribution Key tab page.


Type of Distribution Data Explicit Data

Key Figure Type Perc. Rate

Percentage rate for PC 1210 20

Percentage rate for PC 1220 80

Save your method.

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2-10 Create a task for the allocation

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Task /Allocation/ Create a new entry in the details for Customizing objects


Document Type Assignment The document type you created in exercise 2.8


Method The method you created in exercise 2.9

Save your entries.

2-11 Assign the allocation task to the DATA task group

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Technical View/ Consolidation Monitor/ Task Drag the allocation task from the Nodes not allocated window to the DATA1 folder. Insert the allocation after the reclassification.

Calling up the consolidation monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor/ Expand task group DATA1 and execute the allocation at the top node.

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SAP AG 2003


Contents:

Introduction to consolidation of investments

Accounting technique: purchase method

Accounting technique: equity method

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SAP AG 2003

Consolidation of Investments: Unit Objectives


Set up consolidation of investments using the purchase method and the equity method accounting techniques.

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface





Reporting



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SAP AG 2003

Consolidation of Investments: Business Scenario

The group parent has acquired shares in other companies. They must be eliminated during consolidation of investments.

The companies have earnings. You want to calculate and post the minority interests in the results.

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SAP AG 2003

MethodAssignment

MethodDefinitionHierarchy

BCS: SAP Consolidation of Investments

C9000

C3000

C4000 C8000

90%

30%75%

Pur. Method

Book Value

GW Amortiz.

Basis Corp. Val.

Analysis ofActivitiesCons. of

Investments

CG1C9000 PURCG2

C1000 PURC2000 PUR

Rep. Fin. DataAdd. Data

CG3C9000

C3 C4 C8

CG1

Simultaneous and step consolidation for any type of corporate structure

Supports U.S. GAAP, IAS and German HGB

Investments, equity, goodwill reporting

Automatic activity recognition

Automatic generation of posting documents

Parameter selections for easy definition of customer-specific methods. Method assignment with inheritance logic for multiple-level groups

Comprehensive reporting

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SAP AG 2003

Investment

A

B

C D

80%

60%75%

Annual Net Incomefor B, C, D: 100

Structure: 1 consolidation group withall consolidation units

Docs: 1 document per consolidation unit

Group Share 100% 80% 60% 48%

Overall ANI– Min. - ANIGroup ANI

100- 20

80

100- 40

60

100- 52

48 = 188

G1

A B C D

Simultaneous Consolidation

Pros

Details of all units are available for analyzing the overall consolidation group.

Simultaneous consolidation process is simpler than step consolidation.

Cons

Difficult to manage when groups are very large (too much detail).

Parallel sub-consolidation groups are possible for reporting purposes, but generally pose the risk of being inconsistent with the overall group.

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SAP AG 2003

Docs: 1 document per CU in the lowest CG1 summarized document per higher-level CG

Group Share

= 235

= 188

80%235- 47188


Group Share

100% 75% 60%

1000

100

100- 25

75

100- 40

60



Structure: Hierarchical Consolidation Groups

100%

Step Consolidation

Investment

A

B

C D

80%

60%75%

B C D

G2

A

G1

G2

Pros

Improved clarity when groups are very large

Cons

Consolidation units of different sub-groups do not share common details.

When network-like (reciprocal) investment structures are involved, disclosures and computations are much more complex than in simultaneous consolidations (for instance changing methods in the hierarchy or re-interpretation of activities).

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SAP AG 2003

Docs: 1 document per unit (B,C,D) in each CG (G1,G2)

= - 47

Group share G2

Overall ANI – Min. ANI in G2

Group share G1

– Adj. min. int. in G1Group ANI

100% 75% 60%

1000

100- 25

100- 40

80% 60% 48%

- 2080

- 1560

- 1248 = 188

Structure: Any Consolidation Groups

Benefits: maximum detail for subsequent analysis


Stepwise Simultaneous Consolidation

Investment

A

B

C D

80%

60%75%

A

G1

G2

B C D

G2

Stepwise simultaneous consolidation unites the advantages of simultaneous and step consolidation:

Details of each consolidation unit

Details at each level of consolidation

SAP SEM-BCS supports stepwise simultaneous consolidation.

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SAP AG 2003

Investment Structure: Course Example

C1000 C3000 C5000

C2000 C4000 C5100C8000

C9000

80% 90% 100%

100%30%75%

80%

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SAP AG 2003

First Consolidation According to German HGB vs. US GAAP/IAS

A

Investment

80%

B

C

80%

60%

75%

Inv 100

Equ. 100-

Group BC US GAAP HGB

25 25 25 20

25- 25- 25- 20-

80%

GW

Min

GW

Min

US GAAP/ IAS: Direct Shares : 100 - 100 x 75%HGB: Group Shares: 100 x 80% - 100 x 60%

Apportionment using group share of the upper unit (80%)

Group ABC US GAAP HGB

EC-CS supports the consolidation of investments in compliance with the German HGB and U.S. GAAP / IAS.

You can use both calculation methods in parallel.

The selection is made by a parameter in the consolidation of investments method.

Calculating acquisitions with direct shares:

The minority interests in the equity change in accordance with the increase in the parent's direct share of the investee.

Minority interests in the investment are not disclosed.

For goodwill amortization, minority shares are calculated according to the group shares in the parent units.

Calculating acquisitions with group shares:

The minority interests in the equity change in accordance with the increase in the group share in the investee.

Minority interests in the investment are disclosed.

Minority interests are not calculated as part of goodwill amortization.

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SAP AG 2003

Subseq. Consolidation According to HGB vs. US-GAAP/IAS

A80%

B

C

80%

60%

75%

GW 25/20(5 years)

ANI 20-

5- 5- 5- 4-

5 5 4 4

80%

GW

ANI

GW

ANI

US-GAAP:Minority interests relating to goodwill amortization in group ABC

1Min

5 5 8 8

5- 5- 8- 8-

ANI

Min

ANI

Min

Investment Group BC US-GAAP HGB

Group ABC US-GAAP HGB

After goodwill is completely amortized, the minority interest in the group becomes the same for both HGB and US GAAP/IAS.

The variants differ only for multi-level investments. In subsequent consolidation, minorities in equity must be calculated according to the group shares of the investee in both cases.

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SAP AG 2006

BCS: Customizing SAP Consolidation of Investments

Overall SAP Consolidation of Investment Functions

Method

4-St

ep C

usto

miz

ing

GoodwillPurch.Equity

AmortizationDirect Elim.Per. Reduct.

AppropriationLeg. Data Trans.Stat. Items

Calculation Base Location of ValuesRep. Fin. DataDocument Types

InvestmentEquity

SystemUtilization

Location of Values

Direct Shares/Group SharesGoodwill Life/Start Date

ItemsSubitems

C/I MethodsCustomized by Customer

MethodDefinition

Other

GoodwillGlobal

Goodwill

In System Utilization, decide the scope of consolidation of investments (in SEM-BCS 3.1, only purchase method) you want to be used.

Only the selection activated in System Utilization is available in downstream steps. For example, if direct elimination of goodwill is not selected in System Utilization, you will not be able to make the settings required for direct elimination in the method or in other areas.

We recommend working through the steps in order (System Utilization – Location of Values – Goodwill Setting – Method Definition)

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SAP AG 2003

BCS: Data Modeling – Data Streams

Data Streams Data Model Authorizations

RFC Destination

Data Stream InfoCube Gen Virtual InfoCube GenTotals RecordsDocsInventory DataSupplier DataInvestmentsEquityGoodwill

OBCS_C11OBCS_DS12

OBCS_VC11OBCS_VC12

The investment, like equity, can be read directly from the totals database or from ODS objects.

To maintain investments, equity or equity holdings adjustments units in their own ODS object, you must first generate the objects in the data basis. In further steps, the BCS is informed which data you want to be read from the totals database or ODS objects.

Investments can also be read directly from the totals database (contrary to EC- CS methodology). The investment items require data reporting with the quantity VAL. You must maintain the quantity VAL as a fixed value in the assignment type that was assigned to the investment items.

The differentials for goodwill ODS are entered by the system during the first consolidation. If straight-line amortization is not planned for the differential (impairment test), enter goodwill losses manually in the ODS. The system reads this special depreciation and generates the corresponding posting records.

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SAP AG 2006

BCS: Data Modeling - Consolidation Area

In the Consolidation Area, you define whether you want to use the consolidation of investments features. You must activate Consolidation of Investments to generate the tables required for configuring the system.

The Data Basis and Consolidation Area must contain a characteristic for each consolidation unit assigned the role of investee. The investee role is comparable to the partner unit role. The partner unit plays a significant role in interunit elimination. For the consolidation of investments function, “investee” can be understood as “subsidiary”, the consolidation unit in which an investment is held.

If you want to transfer a posting of an investment from one consolidation activity to another, you choose organizational change. The goodwill is then not recalculated, but merely transferred to the relevant consolidation unit.

The Goodwill in Local Currency function determines the goodwill for an acquisition in the local currency of the investee unit. During the remaining life of the goodwill, the local currency is the leading currency: the group currency values are adapted to the current conversion rates on a period-specific basis. The currency translation differences caused by the exchange rate fluctuations are, therefore, tracked in detail. This applies to the acquisition costs or production costs, as well as the valuation allowance. The currency translation differences appear in the documents for the consolidation of investments activities as well.

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SAP AG 2006

BCS: System Utilization

In System Utilization, you select the accounting techniques to be used later.

The Legacy Data Transfer switch includes manual entries (extraordinary amortization and write-ups) in the goodwill table in the first consolidation activity. The function allows you to adjust the remaining book value of the goodwill to the feeder system values.

You decide which goodwill treatment alternatives you want to include. You can set the method to global or global with exceptions. The Extraordinary Amortization setting ensures that only manual entries in the goodwill table are regarded as triggers for amortization.

As of Release SEM-BCS 6.0, in the case of a partial or full divestiture of an investee unit, you can decide if the goodwill generated during the first consolidation is to be reduced in relation to the participation percentages (proportional reduction) or completely independent from it/not be reduced at all. This request relates to IFRS 3. As the setting is to be made in System Utilization, a different treatment can be stored separately only where there are different versions.

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SAP AG 2006

Global Goodwill

You define the statistical goodwill items in Customizing for Global Goodwill only; it is not possible to redefine in the consolidation of investments method. The Customizing for Global Goodwill also appears if all the goodwill treatment types are defined for each method in accordance with the settings in System Utilization.

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SAP AG 2003

BCS: Calculation Base

Location of Values

General Investment Equity

Location of Values

Calculation Base

Read Investment Data From

Read Equity Data From

Document Type Inclusion

Totals Database

Totals Database

Reported Financial DataAdjustment EntriesStandardizing Entries

Consolidation Entries

Result

Read Equity Holdings Adjs From Additional Financial Data

Elimination of Investment Income

The investment and the equity items can be read from the totals data as well as the additional reported financial data.

Selecting the document types you also want to be read controls the calculation base. Corporate valuations usually constitute the basis for consolidating investments. Select the document types to be read to determine which document types are included when activities are processed.

Document types used for the elimination of investment income always form part of the basis for calculation.

The read results from entry only applies to at equity consolidation and describes the storage location of the scope of reported data. The scope of reported data is mapped to an item on the Result tab page.

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SAP AG 2006

BCS: Reading Investment Data from Totals Data

Location of Values


Activity No. Item Movement Type NavigationFirst Consolidation

Increase in Capital.Reduction in Capital.Step AcquisitionPartial TransferTotal TransferPartial DivestitureTotal Divestiture

12311000 100, 105

Result

On the General tab, define which document types you want to be included in the consolidation of investments calculation base. The reported financial data, adjustments to reported financial data (posting level 01) and document types are mapped to eliminating investment income.

In the example, the investment item is only linked with the first consolidation. You can uniquely identify other activities that affect the development of the investment (such as increase/reduction in capital, partial divestiture and total divestiture) using other document types. The combinations of items and document type must not overlap.

You can regard an activity as programming for which you provide the item to which the business content is reported or entered.

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SAP AG 2006

Automatic Activity Recognition

Location of Values


Activity No. Item Movement Type NavigationConsPostFirst ConsolidationFirst ConsolidationFirst ConsolidationFirst ConsolidationSubseq. ConsolidationIncrease in CapitalReduction in CapitalDistribution of Dividends

Go to Consolidation of Investments/Settings/Location of Values to set the equity items you want to be checked within each of the activities provided. If a consolidation unit reports a value in one of the maintained equity items, the corresponding activity is started.

Since equity items are usually supplied with transaction data drilldown, you have to maintain a movement type as well as the equity item. The activity must be uniquely identifiable through the combination of activity, equity item and movement type.

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SAP AG 2003

Minority Interest and Statistical Equity: Positioning

Equity

Statistical Equity Minority Interest

Equity Description Min.Int. Description

Min.-Treasury

Common Stock

RE-Prior Years

Preferred Stock

RE-Current Year

Treasury Stock

Min.-Pref. Stock

Min.-RE-Prior YearsMin.-RE-Current Years

Min.-Common

25110000

The consolidated financial statements include 100% of the subsidiaries' assets and liabilities.

At the time of first consolidation, a balancing item must be determined and updated with the current changes in value for minority interests in equity.

Minority interests in equity are disclosed between stockholders' equity and liabilities.

Assign equity items and minority interest items 1:1 for automatic postings that indicate minority interests in equity (such as minority interests in common stock during the first consolidation or minority interests in the result during a subsequent consolidation).

Minority interest items are in the same breakdown category as equity items.

During the first consolidation, equity is fully eliminated against the investment, and minority interests in equity are disclosed. It is important that you retain the original equity values for subsequent activities such as divestiture and partial divestiture of a consolidation unit. The original group shares in equity are recorded in statistical equity items.

This setting allows you to maintain account determination for equity items and corresponding statistical items. As is the case when you maintain minority interest items, you must make a unique 1:1 assignment here.

The statistical item breakdown category corresponds to the equity item breakdown category. You must also add partner information to the breakdown.

To make sure statistical items are included in the balance carried forward, set them up as statistical inventory items.

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SAP AG 2006

Method Definition

This example uses the method to treat goodwill (not global treatment as in System Utilization). The activation item and accumulated amortization item are maintained in the method.

In the example, the useful life is set to five years. Amortization begins at the beginning of the current period interval (Begin Amortization 2). The current period is derived from the consolidation frequency assigned to the method. When investments are consolidated quarterly, amortization for a quarter is already booked in December. This setting corresponds to the default setting in the consolidation group master record that calculates the first consolidation at the beginning of the period.

You can activate a threshold value to amortize differentials that do not exceed the threshold in a period.

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SAP AG 2003

Method Assignment (1)

A

DB C

Investment Method Assignment

G1 PUR

A 100% PUR ______

B 80% PUR ______

C 80% PUR ______

D 60% PUR ______

E 20% EQU PUR

F 90% PUR ______

H 80% PUR ______

Units Direct Method Prior Period

F HE

80 8010

25

3080

25

6020

Group G1 Method AssignmentSingle maint. Inheritance Exceptions

Prop. (Defaults) Prior period

A consolidation of investments (C/I) method is assigned to every consolidation unit within each consolidation group by time period and version.

The method assignment uses an "effective period" approach, which avoids the need to re-enter repetitive definitions for each subsequent period, as long as the method remains consistent.

You can make the assignments easier by using an inheritance logic to assign one method to the entire consolidation group. This default method is then overridden for individual units.

Changing the accounting technique causes the system to automatically change the method. The Method Change function will be implemented as of Release 4.0. The system posts the Method Change function automatically when it recognizes a change in the accounting technique.

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SAP AG 2003

Method Assignment (2)

Detail Dim.

Company Medium Description Parent Indicator Method Inheritance Accounting TechniqueSEMBAH1 Investments

Parent Company, USA

Germany

Great Britain

United StatesCanada

JapanAustraliaRegionsCompanies

Use the following path to access method assignment maintenance or parent indicator maintenance: Master Data\ Consolidation Units\ Accounting Techniques.

In a matrix organization you only need to assign one consolidation of investments method to an InfoObject with the role of consolidation unit.

You must set a parent indicator for at least one unit in each consolidation group. The parent consolidation unit is then excluded from consolidation in the group where it is the parent (100% of its results are included in the consolidation group results). The group parent is consolidated one group level higher where it is no longer the parent. Example: Unit C1000 is the parent in group CG2. This company is consolidated in the next higher group, CG1.

If a consolidation group consists only of other groups, assign the parent indicator to the group that contains the actual parent.

Define only as many levels in a consolidation group hierarchy as are absolutely necessary, as the system posts a financial statement for each consolidation group. The system begins with the lowest level. Only adjustments are posted to the higher groups. Levels that are not really needed create more analysis work for consolidation of investments.

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SAP AG 2006

Consolidation Groups: Date of ConsolidationAccounting/First Consolidation

Date of first consolidation/withdrawal from consolidation

First consolidationat period end

Devistiture at beginning of period

The consolidation group master record stores the time at which the unit was first and last consolidated. The default setting is the acquisition of a unit at the beginning of a period and the last consolidation at the end of the period.

Special treatment for FCEP field: If you select the First Consolidation at the End of Period field, the unit appears as if shares in it are acquired at the end of the period. The "Consolidation Group Change" function uses this parameter to check whether the result position needs to be transferred to retained earnings before the first consolidation. The Retained Earnings Prior to First Consolidation item is always included in the first consolidation. The income statement is not included in the financial statements when the unit is acquired at the end of the period.

Special treatment for the DABP field: Set this flag to indicate that divestiture takes place at the beginning of the period. You can enter the year and month to map the retroactive divestiture of a unit. (This is how financial reporting data is posted from the system using divestiture posting level 02, for example.) The movement types are also adjusted for different graphs. (Assets, provisions, equity aging: Movement types are cleared using a divestiture movement type.)

The acquisition and divestiture indicators are included in reporting when values are selected.

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SAP AG 2006

Selected Items

BCS uses statistical items to create a consolidation of investment history. This history is logged to the real equity items as a mirror image of the changes in values.

The statistical equity items must be carried forward in the balance to allow the system to trace historical changes in the values of earned and retained equity.

This information is used if a company divests its shares (fully or partially) to adjust expenses or revenue from individual financial statements by values that must first be posted at the group level, and are therefore not taken into account in individual financial statements.

The group share of the results earned and retained while the company belongs to the group is logged in the Statistical Annual Net Income item. The value of the item is increased by current results and decreased by amortization of goodwill.

The Adjusted Net Income item shows the result including dividends that were distributed according to appropriations. The value corresponds with the statistical annual net income. The item values for the parent and subsidiary only differ if dividends have been distributed.

The minority interest in the retained results is written to the Minority Interest in Adjusted Net Income item.

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SAP AG 2006

Additional Financial Data: Goodwill

C/I Activity First Consolidation

Activity No. Sequence NumberUnits

Creation

Amortization

Character Value Description Req. Character Value Description Req.Cons. ProfitCenter

Cons. PC Group

Investee (CPC)

1200TSEG

Medicine, general

Total of All Segments

Company

Cons GroupInvestee (Co.)

C1000

CG1

Germany

World by Investment

Year

PeriodEntered Manually

Original Value

Div. Orig. Item Prev. YearNegative Goodwill Push-down

USD

USD

USD

USD

USD

USD

USD

Begin in Year

Begin in Period

Values

Opening Book Value

Normal Amortization

Extraordinary Amortization

Writeup

Div. Orig. Item

The difference between the purchase prices (value on the investment item) and purchased equity (value on the equity items at the time of transfer) is calculated when a subsidiary is consolidated for the first time.

Assuming that there are no fair value surpluses, the entire differential is interpreted as goodwill and stored in its own ODS object.

The general data for the treatment of goodwill is written from the consolidation of investments method definition to the ODS object.

You can also make manual entries in the ODS. Manual entries are necessary when transferring legacy data (adjusting the remaining goodwill book value to the final values in the legacy system) and for special depreciation/write-up of the differential (impairment test).

To open the goodwill table in the Consolidation Monitor, go to data collection at group level.

If you have selected amortization for the treatment of goodwill, the amortization will affect net income. The postings have no effect on net income in the elimination.

Goodwill amortization generates an entry in the InfoProvider for goodwill for the current period. It also generates default values for the opening and closing book value of the consolidation period that follows and for scheduled depreciation. The default values are also stored in the InfoProvider for goodwill.

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SAP AG 2006

Automatic Consolidation Activities

Documents created automatically for:First consolidationSubsequent consolidationGoodwill treatment

Step acquisition

Distribution of dividends

Increase in capitalizationReduction in capitalizationInvestment amortization and writeup

Partial divestiture and total divestiture

Partial transferTotal transfer

Indirect change to proportional shareholding

Method change

The consolidation activities depicted above are supported by automatic document generation.

The list has been simplified. The goodwill treatment area, for example, comprises the partial or complete reduction of a goodwill during the divestiture or managing a goodwill in the local currency.

In addition to the consolidation activities, which, in accordance with the accounting principles, have to be supported, SEM-BCS also has the "organizational change" activity. If you want to transfer a posting of an investment from one consolidation activity to another, you choose organizational change. The goodwill is not recalculated, but merely transferred to the relevant consolidation unit. An organizational change has the following properties:

For a consolidation group that contains the issuing and receiving investor unit (top node), the organizational change does not affect net income. The consolidation system handles the organizational change as a transfer posting.

For a consolidation group that contains the issuing investor unit (sender group), it is a divestiture that does not affect net income.

For the consolidation group that contains the receiving investor unit (receiver group) but not the issuing investor unit, this organizational change involves a first consolidation, a step acquisition, or an increase in indirect investment.

You can find an example about the consolidation of investments with all the executed activities in the documentation for SEM-BCS 6.0.

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SAP AG 2003

(First) Consolidation of Investments: Calculation Scheme

Calculation Scheme Calculation

Investment book value

Group share * stockholders' equity

Differential

Fair value adjustments

Goodwill

Minority interest * stockholders' equity

Minority share

. .

. .

10,000

0,7 * 12,000

1,600

0,7 * 900

970

0,3 * 12,000

3,600

Consolidation under the following assumptions:

Investment book value of parent: 10000

Investment percentage of parent: 70 %

Equity of subsidiary: 12000

Fair value adjustmennts for subsidiary: None

Calculation

Differential 10000 – (70% * 12000) = 1600

Group fair value adjustments (group share * fair value adjustments): 70% * 900 = 630

Goodwill: 1600-630 = 970

Minority interest: 30 % * 12000 = 3600

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SAP AG 2006

Goodwill Amortization

Cons. Bal. Sh. and I/S

(I) Amortization (A) 40

(I) Retained earnings, bal. sh. (A) 40

(II) Statistical ANI (A) 40

(III) Adj. ANI goodwill (A) 40

(Goodwill from first consolidation = 200, life of goodwill = 5 years)

(I) Goodwill (A) 40

(I) Annual net income I/S (A) 40

(II) ANI, stat. offset item (A) 40

(III) Overall offset item (A) 40

The following settings are required for posting goodwill amortization:

- In Global Settings or Method Definition, you must define a goodwill item (acquisition and accumulated amortization), an amortization expense item and the amortization characteristics (life in years). Alternatively, you can suppress regular amortization (impairment test).

- The financial statement imbalance is automatically calculated and posted in the balance sheet and income statement to the items that are defined in the IMG under Workbench -> Selected Items for Posting.

- The subsidiary entry to statistical items is also automatic. Posting to these items is necessary for later complete or partial retirements, since the effect on profits from the depreciation influences the retirement results. (As the depreciation in this case is an expense, if a complete or partial retirement was to take place, the result would be increased by this amount.)

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SAP AG 2006

Subsequent Consolidation

Group B/S and I/S(I) Min. int. in ANI (B) 40

(II) (II) ANI, I/S (B) 40

(III) Total ANI (B) 200

(III) Min. int. in ANI (B) 40

(IV) Adjusted ANI (B) 200

(IV) MI in adjusted ANI (B) 40

(I) Annual net income (B) 40

(II) Minority share, I/S (B) 40

(III) Total ANI, offset (B) 200

(III) MI in ANI, offset (B) 40

(IV) Overall offset item (B) 240

(B: Annual net income 200, group share 80%)

Assume that the current year saw a profit of 200.

Subsequent consolidation reclassifies the minority interest by the amount of the external share, namely 40 units. In the balance sheet, the minority interest is transferred to the minority interest item (see I).

The minority shares are also adjusted in the income statement (see II). The item for setting minority interests in annual net income in the income statement is stored when you make the appropriation of retained earnings settings.

The statistical items for annual net income are updated separately for the total annual net income, adjusted annual net income and minority interest (see III). These items are also defined in Customizing under Selected Items.

The amount by which the investment book value would increase is posted to the statistical at-equity item if the fully consolidated unit is included using an at-equity consolidation.

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SAP AG 2006

Elimination of Investment Income

Ind. Fin. Stat. C9000 Ind. Fin. Stat. C1000

Investment income 120 Distribution 150

(I) Inv. income (C9000) 120(III) ANI I/S (C9000) 120

(III) ANI Bal. Sh. (C9000) 120

(II) Clear Distr. (C1000) 120(I) Distribution (C1000) 120

(II) Clear Distr. (C9000) 120

Consolidated Income Statement


80 %

The investment income of consolidation unit C9000 is eliminated against the distribution in consolidation unit C1000 (see posting I). The posting is made to the items specified in the method for eliminating investment income. In this example, the entry is one-sided, which means that the amount of the investment income is the determining factor. 30 units remain on the distribution item for minority interests.

Clearing entries (see II) are made to ensure that the balance sheet at the consolidation unit level also balances out. You specify the item for this entry under the document type for eliminating investment income. A financial statement balancing adjustment is automatically posted (see III).

Define the method for eliminating investment income as one-sided elimination. You cannot use the automatic consolidation of investments activity "distribution of dividends" for two-sided elimination, as the consolidation of investments function does not process the differences that arise there. Enter the distribution of dividends item as a differential item in the method for the elimination of investment income.

The close relationship between the elimination of investment income and the distribution of dividends transaction is described in detail in SAP Note 682595.

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SAP AG 2003

(II) ANI B/S (C9000) 120

(III) Clear distrib.(C1000) 120

(I) Distribution (C1000) 120

(III) Clear distrib.(C9000) 120


After elimination of investment income:

Remaining Equity B:Distribution 30Reduct. Distribution 120

Ind. Fin. Stat. C1000

Distribution 150

Minority Interest150

MI in Distrib. (C1000) 30Distribution (C1000) 30

Consolidated Balance Sheet 20 %

Distribution of Dividends

After the investment income has been eliminated, the minority share of the distribution of dividends must be reclassified if the group share of the distributing consolidation unit is less than 100%. This is done in a separate C/I activity for dividend distributions.

To reclassify minority interests in dividend distribution, define the distribution item in Customizing. In the "Distribution of Dividends" activity, the system reclassifies the dividend item balance to the corresponding minority interest item.

If you apply usage 3 (elimination of investment income) to more than one document type in SEM-BCS, the clearing item must be identical in all the document types. If the clearing item were not identical, the consolidation of investments function in the distribution of dividends activity could not disclose the minority interests correctly.

Both the item for the distribution of dividends and the clearing item defined in the document type for the elimination of investment income are equity items. You shoud therefore assign these items to equity and statistical / minority interest items in Customizing for consolidation of investments.

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SAP AG 2003

Partial Divestiture

80%

Minority Interest

Minority Interest

80%

C9000

C1000

60%

Partial Divestiture (20%)

20%

40%

With a partial divestiture the system reduces the previous consolidation of investment entries in accordance with the reduction in the percentage of ownership. This reduction covers the following points:

Acquisition of goodwill value and cumulative goodwill amortization

Group and minority interest share in the equity as well as statistical equity

Financial statement imbalances posted to the investment unit and the direct upper units

Update the investment book value (only for at equity consolidation)

With the purchase method, the reported reduction in the investment book value is cleared.

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SAP AG 2003

Equity Method: Customizing

In the data basis, generate the Result ODS object.

In System Utilization, select Equity Method.

Define the scope of reported data and connect to the reported items.

Select whether the scope of reported data

Can be read from the ODS result. Select

Manual population (directly in the ODS) or

Population by flexible upload

Can be read directly from the totals cube.

Posting records are closely linked to the scope of reported data.

Per scope of reported data

Per activity

Define method

Assign method to unit(s)

Overview of setting up the equity method.

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SAP AG 2003

Equity Method: Defining the ODS Data Stream for the Scope of Reported Data

The equity method is usually used to include a unit in the consolidated financial statement if the investment percentage is less than 50%.

Subsidiary equity items (balance sheet and income statement values) are not shown in reporting. The virtual InfoCube is used to check the accounting technique.

The parent share is updated by the scope of reported data (such as the retained earnings in the equity subsidiary income statement) when investments are consolidated.

Goodwill and statistical postings follow the purchase method logic.

For assigning factors that update the investment book value (scope of reported data), it is a good idea to create a separate ODS object in which values can be assigned manually or by flexible upload. You must first generate the ODS in the data basis.

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SAP AG 2006

Equity Method – Location of Values (1)

If you set additional financial data as the location of values, you can prepare the scope of reported data manually or using the flexible upload feature.

Data is saved in the ODS "Result", regardless of the interface.

If you set Reported Equity Data as the location of values, the scope of reported data can be read directly from the totals cube.

The totals cube is then populated with the scope of reported data manually or using the flexible upload feature.

Items with a scope of reported data are stored on the "Result" tab page.

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SAP AG 2006

Equity Method: Maintaining the Scope of Reported Data

Maintaining the reported item and movement type

Values in these items triggers the investment value update

In this step, you connect the defined scope of reported data to an item and if necessary, a movement type. If this combination is found in the ODS or totals database for a unit that is consolidated using the equity method, the system triggers a posting in Consolidation of Investments.

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SAP AG 2006

Equity Method – Item Assignment

You define item determination for each scope of reported data to generate the consolidation of investment documents.

In the above example, if the scope of reported data for net income is reached, the system posts the investment (item 12311000 offset against revenue item 3208000). If the subsidiary reports a deficit, the posting document is reversed. There is no special logic involved.

You must break down the revenue item by the partner unit(s) characteristic(s).

If the investment book value is eroded by continuous losses on the part of the subsidiary, the investment is updated in an "auxiliary schedule" or to statistical items.

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SAP AG 2006

Equity Method – Method and Method Assignment

Selecting the Accounting Technique in the Method Definition

Assigning the Method to the Consolidation Unit

If the Equity method is selected in System Utilization, you can select this accounting technique in the method definition.

In the method, enter the goodwill treatment and item details for goodwill amortization.

A method is assigned to the consolidation unit(s). The system can also change accounting techniques. For example, this is necessary if a unit is consolidated using only the equity method in a lower-level group but is consolidated using the purchase method in a higher-level group. In reporting, the system uses method assignment to select the relevant data records. The virtual InfoCube handles this task.

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SAP AG 2003

Consolidation of Investments: Summary


Set up consolidation of investments using the purchase method and at equity accounting techniques.

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Exercises

Unit: Consolidation of Investments Topic: Consolidation of Investments


Make the settings for the consolidation of investments and map the purchase method and equity accounting techniques in the SEM-BCS

You want to generate automatic postings for consolidating investments.

1-1 Set up the purchase method as part of the consolidation of investments

1-1-1 Make the following system utilization settings:

Accounting Technique Purchase Method and at Equity Method

Global Settings None

Further Settings Extraordinary amortization of goodwill and ordinary amortization of goodwill. These options are method-specific.

Extraordinary amortization of negative goodwill and ordinary amortization of negative goodwill. These options are method-specific.

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1-1-2 Settings for location of values

General tab page

Read Investment Data From Totals Database

Read Equity Data From Totals Database

Read Equity Holdings Adjs From

Additional Financial Data

Calculation Base Standardized financial data (financial data + adjustment entries + standardizing entries)

Investment tab page

Activity: First Consolidation Item 12311000 Movement Type 100, 105

Equity tab page

Activity: First Consolidation Item 25110000 Treasury Stock Movement Type 600 Opening Balance

Activity: First Consolidation Item 25711000 Retained Prior Years Movement Type 600 Opening Balance

Activity: First Consolidation Item 25712000 Retained Current Year Movement Type 600 Opening Balance

Activity: First Consolidation Item 25300000 Common Stock Movement Type 600 Opening Balance

Activity: First Consolidation Item 25200000 Preferred Stock Movement Type 600 Opening Balance

Activity: Subsequent Consolidation Item 25712000 Retained Current Year Movement Type 100 – 599 all movement types except movement type 601- 699 Opening Balance

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1-1-3 Global Settings for Goodwill Account determination for statistical goodwill items is stored centrally. It is not dependent on the accounting technique.

Make the following settings for the amortization of the statistical goodwill:

Acquisition Value 94100000 Goodwill

Valuation allowance 94501000 Unplanned goodwill amortization

Make the following settings for the amortization of the negative statistical goodwill:

Acquisition Value 94200000 Neg. Goodwill

Valuation allowance 94502000 Unplanned negative goodwill amortization

1-1-4 Settings for account determination Define the following settings for account determination for equity and statistical items.

Statistical Equity tab page

Equity Stat. Item

25110000 Treasury Stock 95110000 Treasury Stock

25200000 Preferred Stock 95200000 Preferred Stock

25300000 Common Stock 95300000 Common Stock

25711000 Retained Prior Years 95711000 Retained Prior Years

25712000 Retained Current Year 95712000 RE-Current Year

Define the following account determination settings for equity and minority interest items. …

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Minority Interest tab page

Equity Minority Interest

25110000 Treasury Stock 24111000 Min.-Treasury

25200000 Preferred Stock 24120000 Min.-Pref. Stock

25300000 Common Stock 24130000 Min.-Common

25711000 Retained Prior Years 24171100 Min. Retained Prior Years

25712000 Retained Current Year 24171200 Min. Retained Current Year

1-1-5 Settings for appropriation of retained earnings

Distribution of Dividends tab page

25717000 with Movement Type 640 Retained Earnings, Dividends Paid

Annual Net Income tab page

Annual Net Income: Appropriation of Retained Earnings

Net Income Prior to First Consolidation 25713000 Retained Earnings, Current Year Prior to First Cons.

Method Change 25721000 Retained Earnings, Method Change

Clearing: Consolidation of Investments

Item 25723000 RE-Clear. C/I

Movement Type (Debit/Credit) 620; 620 Acquisitions

Minority Interest in Annual Net Income

Settings/Deductions 32070000 Minority Interest

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1-1-6 Set up selected items

Statistical Annual Net Income tab page

Annual Net Income: Item 93101000 Total ANI

Net Income: Offset Item 93102000 Total ANI, offset.

Minority Interest in Net Income 93103000 ANI MIN

Minority Interest in Net Income: Offset Item 93104000 ANI MIN, offset

Adjusted Net Income

Min. Interest in Adjusted Net Income

Adjusted Net Income - Goodwill

MIN – Adjusted Net Income – Goodwill

Adjusted Net Income - Equity Method

MIN Adjusted Net Income Equity Method

Overall Offsetting Item

93211000 Adj. ANI, subs.

93221000 Adj. ANI subs., MIN

93212000 Adj. ANI, GW

93222000 Adj. ANI, GW, MIN

93213000 Adj. ANI, at-equity

93223000 Adj. ANI, equ., MIN

93399999 Overall offset

Divestiture tab page

Expense 32010000 Exp. fr divestit.

Gain 32020000 Reven. fr. divestit.

Expense, Minority Interest 32070000 Minority interest

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1-1-7 Create a purchase method accounting technique investment consolidation method.

Create method 30000 with the following description "Purchase Method (GW Amortization)"

General tab page

Accounting Technique Purchase Method

Acquisitions Direct Share

Goodwill/Negative Goodwill Ordinary Amortization

Make the following detailed settings for goodwill.

Goodwill is to be amortized over a period of five years using the ordinary method. Amortization starts for the first time at the "start of the current period interval" and depreciates in a straight line over the total useful life of the goodwill.

Make the following settings for goodwill:

Original Item, Movement Type 12414100 GW from purchase method Movement Type 120 Acquisitions

Original Offsetting Item, Movement Type (Debit/Credit)

25120000 Treasury Stock, Reciprocal Holdings. Movement Type 640/620

Accumulated Amortization Item, Movement Type (Debit/Credit)

12414100 GW from Purchase Method, Movement Type 220/275

Amortization and Writeup Item 30527210 Amortization of Goodwill Purchase Method. Functional Area 3000 Administration

Make the following settings for negative goodwill:

Original Item, Movement Type 26100000 negative GW from purchase method Movement Type 120 Acquisitions




26100000 Neg. GW from Purchase Method, Movement Type 220/275


Save your method.

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1-1-8 Assign the method to the consolidation unit and set the parent indicator. Assign the method you have just defined to all the companies in the H1 hierarchy. In addition, set the parent indicator for units C9000, C1000, C3000, and C5000.

1-1-9 Defining the document type Create document type #5 for the consolidation of investments. (substitute # with A [group 1], B [group 2], … to R [group 18])


Posting Level 30 (Cons.: Group Dependent Posting)

Balance Check 0 (Error if balance does not equal zero)

Use Consolidation of Investments


Inversion Not applicable in COI application

The document type posts only in group currency. Use number range T1.

1-1-10 Define the consolidation of investments task Create a task for consolidating the investments (30000). (Text: Short: CoI; medium length: consolidation of investments). The task is to be executed on a quarterly basis with document type #5.

1-1-11 Add the task to the monitor Add the consolidation of investments task to task group CONS. Execute the task in the monitor.

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1-2 Interpret the documents

Display the documents for the consolidation of investments in the “Europe” company group (CG2). Select the central profit center group (BU90). The posting records to be interpreted can be found in the company C2000, profit center 9000. Once you have finished with these records, look at the postings in the next highest consolidation group. To do this, expand the World by Investment company group (CG1) in the hierarchy. Select the central profit center group (BU90). The posting records to be interpreted can be found in the company C2000, profit center 9000.

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Exercises

The steering committee just decided that consolidation unit C8000 is no longer to be consolidated using the purchase method. From now on the equity method is to be used.

2-1 Setting up the equity method as part of the consolidation of investments

2-1-1 Specifying the scope of reported financial data Check both reported data scopes: 1 = Annual net income; 2 = dividends paid

2-1-2 Completing the value location

Investment tab page


Equity Holdings Adjustment tab page

The reported data scope 1 (Annual Net Income) should be fulfilled when a value is reported for reported item 25712000 with movement type 620 (Acquisitions). The reported data scope 2 (Distribution of Dividends) should be fulfilled when a value is reported for reported item 25717000 with movement type 640 (Acquisition).

2-1-3 Storing the Posting Records for Scope of Reported Data 1 and 2

Scope of reported data 1: Annual net income

Investment Item 12312000 Investm. Subs.-Equity Movement Type 120 Acquisitions Movement Type 140 Retirements

Offsetting Item - Debit and Credit 32080000 Equ. NI 20-50% Subs.

Divestiture Item (Debit/Credit) 32080000 Equ. NI 20-50% Subs.

Negative Investment Book Value Item Offset Item - Debit/Credit

96001000 Stat. Neg. Stockholders’ Equity ANI

93399999 Genera. Offset Item

Statistical Scope of Reported Financial Data 93301000 Stat: ANI Equity

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Scope of reported data 1: Dividends Paid


Offsetting Item - Debit and Credit 32052150 Dividend Income Enterprise

Divestiture Item 32052150 Dividend Income Enterprise

Negative Investment Book Value Item Offset Item

96002000 Stat. Neg. Stockholders’ Equity Dividends 93399999 General Offset

Statistical Scope of Reported Financial Data 93302000 Stat: DIV Equity

2-1-4 Create an equity method accounting technique investment consolidation method Create method 31000 with the following description "Equity Method (GW Amortization)" General tab page

Accounting Technique Equity Method


Goodwill/Negative Goodwill Extraordinary amortization


Original Item, Movement Type 12414300 GW from equity method Movement Type 120 Acquisitions

Original Offsetting Item

25120000 Treasury Stock - Reciprocal Holdings.

Accumulated Amortization Item, Movement Type

12414300 Goodwill Purchase Movement Type 220 DepreciationMovement Type 275 Write-ups

Amortization and Writeup Item 30527230 Goodwill Amortization - Purchase. Functional Area 3000 Administration

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Original Cost item

26200000 neg. GW Equity Method


25120000 Treasury Stock - Reciprocal Holdings. 120 Addition

Accum. amortization item 26200000 Neg. GW Equity Method


2-1-5 Assign the method 31000 to the unit C8000.

2-1-6 Complete the data collection method. The reported data scopes should be entered manually for equity companies.

2-1-7 Enter reported data scope values in the equity holdings adjustments of unit C8000. Annual net income in LC and GC USD 100,000.00 Distribution of dividends in LC and GC USD 50,000.00

2-1-8 Start the consolidation of investments.

Check the documents for unit C8000 in the consolidation group CG3 Americas/ BU90 central.

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Solution

Unit: Consolidation of Investments Topic: Consolidation of Investments

1-1 Set up the purchase method as part of the consolidation of investments

1-1-1 Make the following system utilization settings:

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ System Utilization/ Make the following settings

Accounting Technique Purchase Method and at Equity Method

Global Settings None

Further Settings Extraordinary amortization of goodwill and ordinary amortization of goodwill. These options are method-specific.

Extraordinary amortization of negative goodwill and ordinary amortization of negative goodwill. These options are method-specific.

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1-1-2 Settings for location of values

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ Location of Values/ General tab page

Read Investment Data From Totals Database

Read Equity Data From Totals Database

Read Equity Holdings Adjs From Additional Financial Data

Calculation Base Standardized data (select the reported data as well as all document types on posting level 01 and 10)

Investment tab page


Equity tab page

Activity: First Consolidation Item 25110000 Treasury Stock Movement Type 600 Opening Balance

Activity: First Consolidation Item 25711000 Retained Prior Years Movement Type 600 Opening Balance

Activity: First Consolidation Item 25712000 Retained Current Year Movement Type 600 Opening Balance

Activity: First Consolidation Item 25300000 Common Stock Movement Type 600 Opening Balance

Activity: First Consolidation Item 25200000 Preferred Stock Movement Type 600 Opening Balance

Activity: Subsequent Consolidation Item 25712000 Retained Current Year Movement Type 100 – 599 all movement types except movement type 601- 699 Opening Balance

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1-1-3 Global Goodwill Settings

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/Global Goodwill Account determination for statistical goodwill items is stored centrally. It is not dependent on the accounting technique. Make the following settings for the amortization of the statistical goodwill:

Goodwill Amortization Stat. Item

Original Cost 94100000 Goodwill

Valuation allowance 94501000 Unplanned goodwill amortization

Make the following settings for the amortization of the negative statistical goodwill:

Negative Goodwill Amortization Stat. Item

Original Cost 94200000 Neg. Goodwill

Valuation allowance 94502000 Unplanned negative goodwill amortization

1-1-4 Account determination settings Assign equity items and statistical items to each other. Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ Equity Statistical Equity tab page

Equity Stat. Item

25110000 Treasury Stock 95110000 Treasury Stock

25200000 Preferred Stock 95200000 Preferred Stock

25300000 Common Stock 95300000 Common Stock

25711000 Retained Prior Years 95711000 Retained Prior Years

25712000 Retained Current Year 95712000 RE-Current Year

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Minority Interest tab page

Equity Minority Interest

25110000 Treasury Stock 24111000 Min.-Treasury

25200000 Preferred Stock 24120000 Min.-Pref. Stock

25300000 Common Stock 24130000 Min.-Common

25711000 Retained Prior Years 24171100 Min. Retained Prior Years

25712000 Retained Current Year 24171200 Min. Retained Current Year

1-1-5 Settings for appropriation of retained earnings

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ Appropriation of Retained Earnings Distribution of Dividends tab page

25717000 with Movement Type 640 Retained Earnings, Dividends Paid

Net Income tab page

Annual Net Income: Appropriation of Retained Earnings

Net Income Prior to First Consolidation 25713000 Retained Earnings, Current Year Prior to First Cons.

Method Change 25721000 Retained Earnings, Method Change

Clearing: Consolidation of Investments

Item 25723000 RE-Clear. C/I

Movement Type (debit/credit) 620 ; 620 Acquisitions

Minority Interest in Annual Net Income

Settings/Deductions 32070000 Minority Interest

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1-1-6 Set up selected items

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ Selected Items Statistical Annual Net Income tab page

Annual Net Income: Item 93101000 Total ANI

Net Income: Offset Item 93102000 Total ANI, offset.

Minority Interest in Net Income 93103000 ANI MIN

Minority Interest in Net Income: Offset Item 93104000 ANI MIN, offset

Adjusted Net Income

Min. Interest in Adjusted Net Income

Adjusted Net Income - Goodwill

MIN – Adjusted Net Income – Goodwill

Adjusted Net Income - Equity Method

MIN Adjusted Net Income Equity Method

Overall Offsetting Item

93211000 Adj. ANI, subs.

93221000 Adj. ANI subs., MIN

93212000 Adj. ANI, GW

93222000 Adj. ANI, GW, MIN

93213000 Adj. ANI, at-equity

93223000 Adj. ANI, equ., MIN

93399999 Overall offset

Divestiture tab page

Expense 32010000 Exp. fr divestit.

Gain 32020000 Reven. fr. divestit.

Expense, Minority Interest 32070000 Minority interest

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1-1-7 Create a consolidation of investments method

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings Create method 30000 "Purchase Method (GW Amortization)." General tab page

Accounting Technique Purchase Method


Goodwill/Negative Goodwill Ordinary Amortization

Method Straight line over total useful life

Make the following detailed settings for goodwill. Goodwill is to be amortized over a period of five years using the ordinary method. Amortization starts for the first time at the "start of the current period interval." Make the following settings for goodwill:

Original Cost Item, Movement Type 12414100 GW from purchase method Movement Type 120 Acquisitions

Offsetting Item of Original Cost, Movement Type (Debit/Credit)


Valuation Allowances Item, Movement Type (Debit/Credit)

12414100 GW from Purchase Method, Movement Type 220/275


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Original Cost Item, Movement Type 26100000 negative GW from purchase method Movement Type 120 Acquisitions




26100000 Neg. GW from Purchase Method, Movement Type 220/275


Save your method.

1-1-8 Assign the method to the consolidation unit and set the parent indicator

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Master Data/ Consolidation Units/ Accounting Techniques/ Company. Assign the method you have just defined to all the companies in hierarchy H1. In addition, set the parent indicator for units C9000, C1000, C3000, and C5000. Use the inheritance logic that you can start from the top consolidation group CG1 for the method assignment.

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1-1-9 Maintain the document type

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Document Type Create document type #5 for the consolidation of investments. (substitute # with A [group 1], B [group 2], … to R [group 18])


Posting Level 30 (Cons.: Group Dependent Posting)

Balance Check 0 (Error if Balance Does Not Equal Zero)

Use Consolidation of Investments


Inversion Not applicable in COI application

The document type posts only in group currency. Use number range T1.

1-1-10 Define the consolidation of investments task

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Task/ Create a new entry in details for Customizing objects Create a consolidation of investments task 30000. (Text: Short: CoI; medium length: consolidation of investments). The task is to be executed on a quarterly basis with document type #5.

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1-1-11 Transferring task to monitor

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Task Hierarchy Drag the task for consolidating investments from the Nodes Not Allocated window to the CONS folder and then execute it in the consolidation monitor.

1-2 Interpreting the documents

Display the documents for the consolidation of investments in the Europe company group (CG2). Select the central profit center group (BU90). The posting records to be interpreted can be found in the company C2000, profit center 9000. Once you have finished with these records, look at the postings in the next highest consolidation group. To do this, expand the World by Investment company group (CG1) in the hierarchy. Select the central profit center group (BU90). The posting records to be interpreted can be found in the company C2000, profit center 9000.

2-1 Setting up the equity method as part of the consolidation of investments

2-1-1 Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ Scope of Reported Financial Data Equity Method Check two ranges of reported financial data: 1 = Annual net income; 2 = Dividends paid

2-1-2 Completing the value location

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Settings/ Location of Values Investment tab page:


Equity Holdings Adjustment tab page

The reported data scope 1 (Annual Net Income) should be fulfilled when a value is reported for reported item 25712000 with movement type 620 (Acquisitions). The reported data scope 2 (Distribution of Dividends) should be fulfilled when a value is reported for reported item 25717000 with movement type 640 (Acquisition).

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2-1-3 Store the posting records for ranges of reported financial data 1 and 2 Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/Settings/Equity Method Posting Scope of reported financial data 1: Annual net income


Offsetting Item - Debit and Credit 32080000 Equ. NI 20-50% Subs.

Divestiture Item (Debit/Credit) 32080000 Equ. NI 20-50% Subs.

Negative Investment Book Value Item Offset Item - Debit/Credit

96001000 Stat. Neg. Stockholders’ Equity ANI

93399999 Genera. Offset Item

Statistical Scope of Reported Financial Data 93301000 Stat: ANI Equity

Scope of reported financial data 2: Dividends paid


Offsetting Item - Debit and Credit 32052150 Dividend Income Enterprise

Divestiture Item 32052150 Dividend Income Enterprise

Negative Investment Book Value Item Offset Item

96002000 Stat. Neg. Stockholders’ Equity Dividends 93399999 General Offset

Statistical Scope of Reported Financial Data 93302000 Stat: DIV Equity

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2-1-4 Creating an equity accounting technique investment consolidation method Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Consolidation of Investments/ Method Create method 31000 with the following description "Equity Consolidation (Extraordinary GM Amortization)." General tab page

Accounting Technique Equity Method


Goodwill/Negative Goodwill Extraordinary amortization


Original Cost Item, Movement Type 12414300 GW from equity method Movement Type 120 Acquisitions


25120000 Treasury Stock - Reciprocal Holdings. 120 Acquisitions

Valuation Allowances Item, Movement Type 12414300 Goodwill Purchase Movement Type 220 DepreciationMovement Type 275 Write-ups



Original Cost item

26200000 Neg. GW Equity Method


25120000 Treasury Stock - Reciprocal Holdings. 120 Addition

Accum. amortization item 26200000 Neg. GW Equity Method


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2-1-5 Assign the method 31000 to the unit C8000. Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Master Data/ Consolidation Units/ Context Menu (right mouse button) -> Accounting Techniques Assign method 31000 from exercise 4-1-4 to unit C8000 in group CG3.

2-1-6 Complete the data collection method. The objective is to manually enter the reported data scopes for equity companies. Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Data Collection/ Method Make the following settings in your data collection method:

Data Stream: Result Data Collection: Online Data Entry

Save your settings.

2-1-7 Enter reported data scope values in the equity holdings adjustments of unit C8000.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor Enter the following reported data scopes for the C8000 company and PC9000.

Annual net income in local currency and group currency USD 100,000.00

Dividends paid in local currency and group currency USD 50,000.00

2-1-8 Start the consolidation of investments.

Check the documents for unit C8000 in the consolidation group CG3 Americas/ BU90 central.


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SAP AG 2003


Contents:

Configuration

Balance Carryforward with

Appropriations in the balance sheet

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SAP AG 2003

Balance Carryforward: Objectives


Configure and execute the task for carrying forward balances.

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface



Reclassification/Allocation


Reporting



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SAP AG 2003

Balance Carryforward: Business Scenario

You want to demonstrate how balance carryforward is executed in SEM-BCS.

You need to set up a task for this purpose.

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SAP AG 2003

Balance SheetAssets 10,000...Liab. 10,000

Balance SheetAssets 10,000...Liab. 10,000

n+1

Closing Balanceold year

Opening Balancenew year

Carryfwd


The closing balance of one year must be identical to the opening balance of the following year. The first task for a new fiscal year is therefore to carry forward the balance from the previous year.

Balance carryforwards are dependent on the item type and are usually performed as follows:

All balance sheet items are automatically carried forward to themselves.

Income statement items are not carried forward as standard.

Statistical inventory items are likewise carried forward to their corresponding items on the new balance sheet as standard.

Statistical flow items are not carried forward as standard.

If you want to carry forward items to different items (this is necessary if you show appropriations in the balance sheet), you need to make additional settings in Customizing.

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SAP AG 2003

BalanceAssets 10,000...Machines, Start Bal: 2,000Machines in: 1,000Machines out: 500-

Machines, Closing Bal: 2,500...Liabilities 10,000

BalanceAssets 10,000...Machines, Start Bal: 2,500

...Liabilities 10,000

Carryfwd

Year n Year n+1

Balance Carryforward - Subitems

Carryforward subitems are assigned to subitems and the carryforward made for the new year. This ensures that all of the current year's transactions are carried forward to "opening balance" and "accumulated valuation allowance" subitems in an asset history sheet, for example.

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SAP AG 2003

Balance Carryforward for Each Totals Record

Year/Per Reported Data Two-sided Elim. Cons. Posting Consolidated Stmts

2002/006 1,000 500- 100- 4002002/012 2,000 800- 1,200

2003/000 3,000 500- 900- 1,600

Individual posting levels and document types are carried forward separately.

The balance carryforward function generally retains the additional account assignments (such as partner unit, subitem, year of acquisition), but these are interpreted according to breakdown category of target item. Summarization may occur (target item does not require breakdown) or a default account assignment may be made (target item requires breakdown).

The values shown in italics do not exist in the database.

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SAP AG 2003

Retained earnings:Retained Earnings, B/S 5,000-Transfers to approp. 1,000-Deduct. from approp. 2,000+

Annual Net Income, I/S 5,000+

Retained earnings:Retained Earnings, B/S 0Transfers to approp. 0Deduct. from approp. 0

Ret.earn.-prior yrs, B/S 4,000-

Annual Net Income, I/S 0

123

Maintain items to be carried forward:

Item in old year Item in new yearRetained earnings, B/S (1) Retained earnings-prior yrs, B/STransfers to appropriations (2) Retained earnings-prior yrs, B/SDeductions from appropriations (3) Retained earnings-prior yrs, B/S

Balance Carryforward for Appropriation Items

Items. All appropriation items must be carried forward to the "Retained Earnings - Prior Years" item.

As balance sheet items can only be carried forward to corresponding items, additional settings are necessary in this case:

In the menu option "Define Items to be Carried Forward" maintain all the appropriation items and assign the "Retained Earnings, Prior Years" item to them.

As both source and target items are balance sheet items, different rules apply: The balance sheet item is not carried forward to itself, but only to the assigned balance sheet item.

Income statement items are not carried forward by default.

The annual net income in the balance sheet and income statements must be identical both before and after the carryforward. After the carryforward, the balance of all income statement items must be zero.

The items to be carried forward are defined dependent on the special version "account assignment". To be able to maintain the items to be carried forward in different ways in various versions, you need a further special version in the "account assignment" category.

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SAP AG 2003

Balance Carryforward: Unit Summary


Configure and execute the task for carrying forward balances.

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Exercises

Unit: Balance Carryforward Topic: Balance Carryforward


• Configure and carrying forward balances

After you have completed all your consolidation tasks, you want to create an opening balance for the new fiscal year. To do this, you need to run a balance carryforward as the first task in the new year.

In this group, retained earnings are appropriated in the balance sheet.

1-1 Carryforward Retained Earnings to Retained Earnings, current year Make sure that the following retained earnings/appropriations are carried forward to Retained Earnings, Prior Year (25711000), not to themselves.

Item

BCF Debit

BCF Credit

25700000 Retained ANI 25711000 RE-Prior Years 25711000 RE-Prior Years

25712000 RE-Current Year 25711000 RE-Prior Years 25711000 RE-Prior Years

25713000

Retained Earnings – CY prior

to First Cons 25711000 RE-Prior Years 25711000 RE-Prior Years

25714000 Ret.ANI-before.Propor. 25711000 RE-Prior Years 25711000 RE-Prior Years

25715000 Ret.ANI-Introd.GR 25711000 RE-Prior Years 25711000 RE-Prior Years

25716000 Ret.ANI-Deduct GR 25711000 RE-Prior Years 25711000 RE-Prior Years

25717000 Ret.ANI-Divid.Distrib. 25711000 RE-Prior Years 25711000 RE-Prior Years

25718000 Ret.ANI-Div.Paid.Clear. 25711000 RE-Prior Years 25711000 RE-Prior Years

25719000 Ret.ANI-Bonus 25711000 RE-Prior Years 25711000 RE-Prior Years

25720000 Ret.ANI-Org.change. 25711000 RE-Prior Years 25711000 RE-Prior Years

25721000 Ret.ANI-Meth.change 25711000 RE-Prior Years 25711000 RE-Prior Years

25722000 Ret.ANI-Pushdown 25711000 RE-Prior Years 25711000 RE-Prior Years

25723000 Ret.ANI-Elimin.C/I 25711000 RE-Prior Years 25711000 RE-Prior Years

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1-2 Carry forward minority interest items to Min. Int. – Ret. Earnings - Prior Years Use the same procedure for minority interest items. Check that the following items exist. These items are carried forward to item 24171100 Minority interest in retained earnings – prior years.

Item

BCF Debit

BCF Credit

24170000 Min. Retained ANI 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Years

24171200 Min. RE – Current Year 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Years

24171300 Min. RE – CY prior to First Cons 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Years

24171400 Min. RE –ANI prior to Proportion Change 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Years

24171500 Min.RE –Appropriation Transfers 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Years

24171600 Min.RE –Appropriation Deductions 24171100 Min.RE – Prior Years 24171100 Min. RE–Prior Years

24171700 Min. RE –Dividends Paid 24171100 Min. RE–Prior Years 24171100 Min.RE – Prior Years

24171800 Min. RE – Clearing of Dividends Paid 24171100 Min. RE–Prior Years 24171100 Min.RE – Prior Years

24171900 Min. RE – Bonus Management 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Years

24172300 Min. RE - Clearing 24171100 Min. RE–Prior Years 24171100 Min. RE–Prior Year

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1-3 Carry forward statistical items to Retained Earnings – Prior Years Use the same procedure for the statistical items. Check the following entries.

These items are carried forward to item 95711000 Retained Earnings, Prior Year.

Item

BCF Debit

BCF Credit

95700000 Retained ANI 95711000 RE-Prior Years 95711000 RE-Prior Years

95712000 RE-Current Year 95711000 RE-Prior Years 95711000 RE-Prior Years

95713000 Retained Earnings – ANI prior to First Cons 95711000 RE-Prior Years 95711000 RE-Prior Years

95714000

Retained Earnings – ANI prior to Proportion Change 95711000 RE-Prior Years 95711000 RE-Prior Years

95715000 Retained Earnings – Appropriation Transfers 95711000 RE-Prior Years 95711000 RE-Prior Years

95716000

Retained Earnings – Appropriation Deductions 95711000 RE-Prior Years 95711000 RE-Prior Years

95717000 Retained Earnings – Dividends Paid 95711000 RE-Prior Years 95711000 RE-Prior Years

95718000

Retained Earnings – Clearing of Dividends Paid 95711000 RE-Prior Years 95711000 RE-Prior Years

95719000 Retained Earnings – Bonus Management 95711000 RE-Prior Years 95711000 RE-Prior Years

95720000 Retained Earnings – Organizational Change 95711000 RE-Prior Years 95711000 RE-Prior Years

95721000 Retained Earnings – Method Change 95711000 RE-Prior Years 95711000 RE-Prior Years

95722000 Retained Earnings – Pushdown 95711000 RE-Prior Years 95711000 RE-Prior Years

95723000

Retained Earnings – Clearing of Cons of Investment 95711000 RE-Prior Years 95711000 RE-Prior Years

1-4 Define a balance carryforward task Define task 40000

1-5 Transfer of task to Consolidation Monitor In task group DATA1, 03/2003, assign the balance as the first task you want to be carried out.

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1-6 Performing the Balance Carryforward In the Consolidation Monitor, start Balance Carryforward and confirm that the data records were carried forward to the database listing.

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: Solutions

Unit: Balance Carryforward Topic: Balance Carryforward

1-1 to 1-3 Retained Earnings, Minorities and Statistical Items The following solutions refer to exercises 1-1 to 1-3

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Balance Carryforward/ Items to be Carried Forward.

• Choose New Entries.

• Create an entry for each item to be carried forward. This information is found in exercises 1-1, 1-2 and 1-3. If entries already exist, make sure they contain all information listed in exercises 1-1, 1-2 and 1-3.

• The debit and credit items for the new year are identical.

• For section 1-1 specify item 25711000,

for section 1-2 (minority interest) specify item 24171100 and

for section 1-3 (statistical items) specify item 95711000.

1-4 Define a Balance Carryforward task

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Functions/ Balance Carryforward/ Task / <create a new entry in details for Customizing objects> Assign the task the technical name 40000 and use the description Balance Carryforward Group ##.

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1-5 Transfer of task to Consolidation Monitor Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Parameters Environment/ Parameters Set permanent parameters of 2003 for year and 003 for period. Go to Customizing for task group.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Workbench/ Process View/ Consolidation Monitor/ Task Hierarchy Select the Balance Carryforward task from the nodes not yet assigned window and place this first of all into task group DATA1.

1-6 Performing the Balance Carryforward Start the Consolidation Monitor.

Strategic Enterprise Management/ Business Consolidation/ Consolidation Monitor First expand the task group DATA1, then the according to investments hierarchy. Now start the Balance Carryforward task by clicking Update. Check under the database listing that all totals records for the previous year have been carried forward for the new financial year.

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SAP AG 2003

Reporting

Contents:

Reporting with the Business Information Warehouse

Consolidation Reports

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SAP AG 2003

Reporting: Objectives


Describe how BW reporting works.

Analyze consolidated data using standard reports.

Customize your reports more effectively as a result of course BW 305 Reporting.

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SAP AG 2006

Course Overview

Data Model

Appendix

Master Data

Preface





Reporting



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SAP AG 2003

Reporting: Business Scenario

You want to use one report for the whole process from collection of financial data to consolidation of group values.

You are also interested in how to create a comparative display for the financial data reported by units.

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SAP AG 2003

Central data store for reports and analyses

Contains two types of data

Key Figures

Characteristics

Contains one fact table and 16 dimension tables

Three dimensions predefined by SAP

Time

Unit

Info Package

InfoCube

The central data containers on which reports and analyses are based in SAP-BW are known as InfoCubes. InfoCubes contain two types of data: key figures and characteristics. Each individual InfoCube should contain a self-contained dataset, since queries always refer to one InfoCube.

One InfoCube consists of several InfoObjects and has a star-like structure: one fact table containing InfoCube key figures is surrounded by several dimension tables in which the cube characteristics are stored.

- Each InfoCube is assigned to an InfoArea.

- Data is supplied to InfoCubes from one or more InfoSources.

- Reports in the Business Explorer only ever refer to one InfoCube.

Characteristics that logically belong together are contained in the same dimension (district and area, for example, belong to the 'region' dimension).

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SAP AG 2003

Info Cube: Characteristics & Key Figures

Posting LevelItem

Con

sU

nit

Eliminations

USA

Report

DE

GB

Assets

Net Sales/RevenueInventory

Reported Financial DataStandardizations

Characteristics determine how the dataset is classified. Examples of characteristics include consolidation unit, item, and posting level. Note that time references such as fiscal year or period also constitute characteristics.

Permitted values for a characteristic are contained in the master data. These are also known as characteristic values. Combinations of characteristics or characteristic values are often referred to as objects in SAP documentation.

A relationship between three characteristics can also be illustrated graphically (as in the example above). A cube shape is used for this purpose. The edges represent characteristics (here: consolidation unit, item, posting level), and each characteristic is sub-divided into several characteristic values. The subcomponents of the cube then represent combinations of characteristic values. An example of an evaluation object might be as follows: consolidation unit = Germany; item = sales; posting level = Reported Financial Data.

There are lots of different key figures that may be relevant for your evaluation purpose depending on the area you work in. Key figures include values in transaction, local or group currency and quantities, plus calculated figures based on user-defined formulas.

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SAP AG 2003

OLAP BCS Reports and the Virtual Cube

SEM-BCS Programs...Interpret the totals records read from the BasicCube

Function Module

Including selection conditions

BasicCubefor Totals Records(TransactionalInfoCube)

Virtual Cubefor Totals Records(no data; structure identical to BasicCube)

Query

Report

16

4

3

25

Queries are always defined on virtual InfoCubes. Only virtual InfoCubes can manage the selection conditions that apply specifically to consolidation. A virtual InfoCube can break down the group hierarchy to be reported on to determine which companies are affiliated on group level and which need treating as a third party. To use this logic, you have to adopt the consolidation group characteristic in the query definition. For further information see SAP Note 632472.

The SEM-BCS function module reads the query selections and applies the selection requirements to the corresponding InfoCube/ODS Object.

The totals cube reports the data back again.

The SEM-BCS function module interprets the data (according to hierarchies or posting level for example) and reports the “correct” data records to the virtual cube.

The report is then displayed in BW.

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SAP AG 2003

Reporting: Summary


Describe how BW reporting works

Analyze consolidated data using standard reports

Customize your reports more effectively as a result of course BW 305 Reporting

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Exercises

Unit: Reporting Topic: Reporting with the Business Information Warehouse


• Define and execute reports in BEX Analyzer

• The consolidation processes have been modeled within the prototype.

• The executive board would like to get an overview of the capabilities of reporting on consolidated data.

• To meet legal requirements, the reported financial data must be reconciled with the consolidated value.

1-1 Create a report showing the transfer of reported financial data to consolidated data at the group level. Execute the report. Use the Posting Level characteristic for the transfer. When executing the report, you must be able to set the consolidation group, consolidation version and fiscal year variables. You must be able to navigate using the company and profit center characteristics.

Optional Exercise 1-2 Create a report showing the companies’ reported financial data in the group currency.

Execute the report. When executing the report, you must be able to set the consolidation group, consolidation version and fiscal year variables. Navigate using the profit center characteristic.

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Solutions

Unit: Reporting Topic: Reporting with the Business Information

Warehouse

1-1 Log on to the analyzer

Log on toWTS BI7.0 for this exercise. Your instructor will give you the logon details.

Choose Start -> Programs ->Business Explorer ->Analyzer to start the Business Explorer Analyzer, which is required to prepare the reconciliation.. When you access the Analyzer, the system initially displays this ‘blank’ excel interface.

Use the icon to log on to your training system using the user and your password from the start of the week.

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…

Now use the “Open” icon to open the reconciliation with the technical name HBIII

Since you have not previously accessed any Query, your history (Queries used previously) is blank.

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…

Use the binoculars to find the query with the technical name HBIII

If you do not open the Query, the system queries the variables.

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…

Use your own version in which you entered data during the training week in the consolidation version. You can view a selection of possible characteristic attributes for the

info object version using the icon .

Enter the value K4/2002 as the variable for the fiscal year.

The system displays a selection for the consolidation group. Choose the node CG2 (Europe) from the group CG1. Retain the default setting for the characteristic Hierarchy with H1 and start the evaluation using the OK button.

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…

Once you have entered all of the variables, the system displays the completed reconciliation, which displays a breakdown of the reporting data down to the consolidated group value.

Click on the Filter button in the query header. The free characteristics, which you can use to drilldown in the report, are displayed in the left hand section.

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…

In the following diagram, the reconciliation was first drilled down using the company characteristic, and the filtering was set to item 11300000 (intercompany receivable).

Drilldown using the partner company characteristic.

The axes are swapped to create a better overview. To do this, call up the context menu in the reporting data and choose Swap Axes.

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…

From this it is clear, that the receivables reported by C1000 against partner C2000, are shown in the elimination. The receivables delivered to other partners in meta data entry are not shown in the elimination. This is because at the level of the consolidation group Europe, only C1000 and C2000 recognize one another as affiliated companies. Companies that belong to other consolidation groups are on a third level and their elimination records cannot be selected.

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Optional Solution 1-2 Log on to the Query Designer.

Use the Query Designer tool to create a query. Access this tool by choosing Start/ Programs/ Business Explorer/ Query Designer.

Structure of Query

Display Rows and Columns

Display Filter

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Details on the structure of the rows and column structures.

Once you have started the Query Designer, structure a new Query. Click on the icon to do so.

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…

Use the icon to find the Info Provider YBCS_C1V1

Structure of the columns:

Drag the “periodic value key figure in group currency” from the key figure area into the column. Repeat until you have performed this action a total of four times. This should produce the following structure:

Now restrict the key figures to the individual transfer columns using the posting level 00/10/20 or 30.

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Restrict a key figure:

Use the context menu/properties at the level of the first key figure to open the following sub-dialog:

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…

Scroll in the left hand frame to the dimension table “Document Type/ Levels, Posting Level/ Characteristic Values” and restrict to the posting level reporting data 00. Change the description to “Reporting data” and confirm this with OK. Repeat this step for the other three key figures and limit these to posting levels 10.20, 20 and 30 in each case.

A formula is required to calculate the group value. Choose this from the context menu for the structure.

The restricted key figures are displayed in the formula editor. Drag these into the formula editor in the correct order. Connect the restricted key figures with a “+” and then confirm by choosing OK.

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… Create row structure: The balance sheet hierarchy from the consolidation chart of accounts should be used to display the values in the rows. Drag the “Item” characteristic into the row structure and enter the following parameters in the detail screen on the right hand side.

Create free Characteristics:

As shown in the overview, drag the characteristics partner company, controlling area, profit center and company into the Free Characteristics frame.

Now switch to the filter display.

Create default values: Access the context menu fort he item. Restrict to hierarchy 201 and confirm by choosing OK …

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Structure of the characteristic restrictions:

Posting period characteristic:

The posting period should show the period between the balance carry forward period # and the last posting period 12. Drag the time characteristic from the corresponding dimension table into the

characteristic restrictions frame and access the Restrict entry in the context menu. Switch to value areas from single values in the pull-down menu.

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Once you have done so, make the restriction # (not assigned) through 12 in the selection area on the right hand side of the screen.

Include fiscal year:

The user should be able to select the fiscal year flexibly before the report is generated. Yu should therefore drag the time characteristic fiscal year from the corresponding dimension table as a characteristic value variable with the name “Fiscal year (required single value entry, technical name 0P_FYEAR)” to the Characteristic Restrictions frame.

Fiscal Year Variant:

Since the fiscal year variant with the fixed value “K4” is fixed in the consolidation area, you can copy the corresponding value into the characteristic value directly. Scroll to the time characteristic fiscal year variant in the corresponding dimension table and drag the fixed value “K4” into the Characteristic Restrictions frame from the “Characteristic Values” folder.

Version:

The user should be able to select the version flexibly before the report is generated. Yu should therefore drag the version characteristic from the corresponding dimension table as a characteristic value variable with the name “Consolidation Version, technical name 0P_CSV)” to the Characteristic Restrictions frame.

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Consolidated chart of accounts:

Since you have already included the items in the rows, the Query Designer inserts the consolidated chart of account characteristic (item and consolidated chart of account characteristic are info objects in brackets) in the default values frame. Use Drag & Drop to access the consolidated chart of account and insert it in the Characteristic Restrictions frame. Now delete the consolidated chart of account characteristic from the default values frame..

Consolidation group:

Flexible control options should be available for the consolidation group according to the hierarchy selected. This means that the user can select the hierarchy and the associated consolidation group flexibly before the report is executed. This means the report can be used to evaluate regions , subgroups, or the entire corporate group.

First, drag the consolidation group characteristic into the characteristic restrictions.

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Access the Hierarchy tab page for the consolidation group characteristic in the properties

frame. Use the icon to access the possible values. From here, use the icon to access the hierarchy variables subdialog.

Now choose the hierarchy variable “Select Hierarchy“ (technical name: FCN).

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Switch to the following menu and set the Display field to variables and the Type field to Hierarchy Node Variable. Select the value “Choose consolidation group” technical name CLUB from the variables displayed and copy the variable into the selection area on the right hand side of the screen. Confirm your selection by choosing OK.

Save the query and then execute it.

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SAP AG 2006

Appendix

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SAP AG 2006

Course Overview

Data Model

Reporting

Master Data

Preface







Appendix

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For the SEM-BCS documentation, see the help portal at help.sap.com

Select the Documentation / mySAP ERP/ mySAP Strategic Enterprise Mgmt section.

Choose the SAP SEM 6.0 link to display the SEM-BCS documentation.

Status: May 2006

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SAP AG 2003

Integration with BPS: Scenario with One InfoCube

BPS

SEM-BCS

0BCS_C10

ActualVersion

100

PlanVersion

101

Actual Plan

The quality of the data that you control in BCS using breakdown categories must remain consistent for data entry in BPS. To simplify matters, you can allow data to be entered at hierarchy nodes (Customizing version combinations).

In this scenario, a shared consolidation InfoCube for consolidation and planning has the following advantages: - Maximum integration, as both applications access the same transaction data, - No data redundancy - Additional data copying from one InfoCube to another is no longer necessary.

Disadvantages: - Both applications are very dependent on one another. Structural changes will affect both applications. - Frequently, additional features are required in planning that are not contained in the consolidation InfoCube. If these are included, it has a negative effect on the performance of the consolidation cube.

Conclusion: The single InfoCube scenario is suitable for pure balance sheet planning with BPS.

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SAP AG 2003

0BCS_C10

ActualVersion

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PlanVersion

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Integration with BPS: Scenario with Two InfoCubes

ZBCPS_C10

PlanVersion

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SEM-BCS

ActualPlan

Copy Data

Advantages of a scenario with two InfoCubes, offering separate data storage for consolidation data and planning data: - Greater flexibility. With this scenario, you can change the structure of the InfoCube for planning, without influencing consolidation. - Even if considerable integration exists as a result of the multi-planning area link, both applications are decoupled, which makes them easier to implement. The applications are only linked to one another by the copy function in the multi-planning area.

Disadvantages: - Copying the actual consolidation data to the plan InfoCube and back to the actual consolidation InfoCube after planning produces further administrative work that requires organizing. This model approach results in data redundancy. "Read from data stream" data transfer technology enables BPS data to be copied to the BCS Cube, however. Consolidation-specific characteristics such as the posting level are enriched during copying.

Conclusion: The two InfoCube scenario is more efficient for multi-dimensional planning situations.

If you compare both approaches again, you can see that SEM-BCS and BPS use the same InfoObjects, in other words, the same master data, where necessary. These can be defined in SEM-BPS and then used in BPS. If you define master data in BPS, this can also be used in SEM-BCS. However, it has to be assigned to a role in the data basis, and other settings are also necessary.

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SAP AG 2003

Problems with Integrated Planning and Consolidation

Aircraft Helicopter

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Product GroupPrograms

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Region

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South

East

West

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Consolidation view-> Target segment

reporting

If the aim is joint planning and consolidation, there is a further advantage for planning in that the quality of the consolidation data is very good, thanks to semantic checks and validations.

A fundamental problem for planning and consolidation is that both have different requirements when it comes to information, however. The breakdown category for consolidation has to be filled by planning in BPS.

The graphic above offers an example. In general, both the controller and the consolidator will have to make compromises in order to arrive at a shared view for integrated planning.

If an integrated planning approach is to be taken, the reported data must include all the necessary characteristics. Looking specifically at the above example, this means that the sales item must be reported with the product group and the region. This places demands on the source system. In reporting, the different information required by the controller and the consolidator can be taken into account by providing various drilldown options.