SAP BusinessObjects Planning and Consolidation 75 version for the Netweaver platform

September 2011

English

Legal Consolidation (B64)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Legal Consolidation (B64) BPD

Copyright

copy 2011 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

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors

Microsoft Windows Excel Outlook and PowerPoint are registered trademarks of Microsoft Corporation

IBM DB2 DB2 Universal Database System i System i5 System p System p5 System x System z System z10 System z9 z10 z9 iSeries pSeries xSeries zSeries eServer zVM zOS i5OS S390 OS390 OS400 AS400 S390 Parallel Enterprise Server PowerVM Power Architecture POWER6+ POWER6 POWER5+ POWER5 POWER OpenPower PowerPC BatchPipes BladeCenter System Storage GPFS HACMP RETAIN DB2 Connect RACF Redbooks OS2 Parallel Sysplex MVSESA AIX Intelligent Miner WebSphere Netfinity Tivoli and Informix are trademarks or registered trademarks of IBM Corporation

Linux is the registered trademark of Linus Torvalds in the US and other countries

Adobe the Adobe logo Acrobat PostScript and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States andor other countries

Oracle is a registered trademark of Oracle Corporation

UNIX XOpen OSF1 and Motif are registered trademarks of the Open Group

Citrix ICA Program Neighborhood MetaFrame WinFrame VideoFrame and MultiWin are trademarks or registered trademarks of Citrix Systems Inc

HTML XML XHTML and W3C are trademarks or registered trademarks of W3Creg World Wide Web Consortium Massachusetts Institute of Technology

Java is a registered trademark of Sun Microsystems Inc

JavaScript is a registered trademark of Sun Microsystems Inc used under license for technology invented and implemented by Netscape

SAP R3 SAP NetWeaver Duet PartnerEdge ByDesign SAP BusinessObjects Explorer StreamWork 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 other countries

Business Objects and the Business Objects logo BusinessObjects Crystal Reports Crystal Decisions Web Intelligence Xcelsius and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd Business Objects is an SAP company

Sybase and Adaptive Server iAnywhere Sybase 365 SQL Anywhere and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc Sybase is an SAP company

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

copy SAP AG Page 2 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process AlternativeDecision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen These include field names screen titles pushbuttons as well as menu names paths and options

Cross-references to other documentation

Example text Emphasized words or phrases in body text titles of graphics and tables

EXAMPLE TEXT Names of elements in the system These include report names program names transaction codes table names and individual key words of a programming language when surrounded by body text for example SELECT and INCLUDE

Example text Screen output This includes file and directory names and their paths messages source code names of variables and parameters as well as names of installation upgrade and database tools

EXAMPLE TEXT Keys on the keyboard for example function keys (such as F2) or the ENTER key

Example text Exact user entry These are words or characters that you enter in the system exactly as they appear in the documentation

ltExample textgt Variable user entry Pointed brackets indicate that you replace these words and characters with appropriate entries

copy SAP AG Page 3 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Contents

1 Purpose 5

2 Background Information5

21 Ownership Information5

22 Intercompany Transaction5

23 Other Information6

3 Preparation 6

31 IE Setting 6

32 Logging on SAP BPC system7

33 IE Configuration - Back to BPF7

34 Switch User Log on SAP BPC system8

35 Logon Interface for Excel8

4 Process Overview 8

5 Business Processes11

51 Preparation 11

511 Entering Exchange Rate11

512 Entering Ownership Information11

513 Copying Opening Data13

514 Closing the Step14

52 Uploading Data (All the Companies in the Group)14

521 Uploading Financial Statements14

522 Importing Financial Statements15

523 Reviewing Balance Sheet Statement16

524 Reviewing Profit Loss Statement16

525 Checking Onwerrsquos Equity Statement17

526 Checking Validation Report Result17

527 Entering Inter-Company Transaction Data18

528 Submiting Data23

529 Approving Data24

5210 Checking the Data Approval Status25

53 Consolidation Process25

531 Foreign Currency Conversion25

532 Pushing Data to IC-Maching26

533 Running IC-Matching27

534 Checking IC Matching Result ndash Sales27

535 Checking IC Matching Result ndash AR amp AP28

536 Journal Entry29

537 Running Consolidation36

538 Checking Consolidation Working Sheet37

539 Checking Validation Result for Cosolidation Report38

5310 Closing this Step38

54 Consolidation Report38

541 Presenting Consolidated Balance Sheet Statement38

542 Presenting Consolidated Income Statement39

copy SAP AG Page 4 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Legal Consolidation

1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure

The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps

Data Upload from Subsidiariesrsquo financial systems

Currency Translation

Inter-company Elimination

Journal Elimination

Consolidation Reports

According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)

2 Background Information

21 Ownership InformationParent Subsidiary Percentage of voting stock

S000 （Holding） S001 100

S000 S002 (overseas) 100

S000 S003 90

22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from

S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book

2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book

3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001

4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003

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SAP Best Practices Legal Consolidation (B64) BPD

23 Other InformationThe parent company uses Equity Method to record Investment

Entity theory full goodwill method is applied to the consolidation group

For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010

The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

3 Preparation

31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password

1 Open Windowns internet Explorer Brower

2 Choose Tools Internet Options

3 Choose Security tab

4 Make setting as screenshot in both Local intranet and Trusted sites zone

5 Choose OK and exit

copy SAP AG Page 6 of 60

SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

copy SAP AG Page 7 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Copyright

copy 2011 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

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors

Microsoft Windows Excel Outlook and PowerPoint are registered trademarks of Microsoft Corporation

IBM DB2 DB2 Universal Database System i System i5 System p System p5 System x System z System z10 System z9 z10 z9 iSeries pSeries xSeries zSeries eServer zVM zOS i5OS S390 OS390 OS400 AS400 S390 Parallel Enterprise Server PowerVM Power Architecture POWER6+ POWER6 POWER5+ POWER5 POWER OpenPower PowerPC BatchPipes BladeCenter System Storage GPFS HACMP RETAIN DB2 Connect RACF Redbooks OS2 Parallel Sysplex MVSESA AIX Intelligent Miner WebSphere Netfinity Tivoli and Informix are trademarks or registered trademarks of IBM Corporation

Linux is the registered trademark of Linus Torvalds in the US and other countries

Adobe the Adobe logo Acrobat PostScript and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States andor other countries

Oracle is a registered trademark of Oracle Corporation

UNIX XOpen OSF1 and Motif are registered trademarks of the Open Group

Citrix ICA Program Neighborhood MetaFrame WinFrame VideoFrame and MultiWin are trademarks or registered trademarks of Citrix Systems Inc

HTML XML XHTML and W3C are trademarks or registered trademarks of W3Creg World Wide Web Consortium Massachusetts Institute of Technology

Java is a registered trademark of Sun Microsystems Inc

JavaScript is a registered trademark of Sun Microsystems Inc used under license for technology invented and implemented by Netscape

SAP R3 SAP NetWeaver Duet PartnerEdge ByDesign SAP BusinessObjects Explorer StreamWork 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 other countries

Business Objects and the Business Objects logo BusinessObjects Crystal Reports Crystal Decisions Web Intelligence Xcelsius and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd Business Objects is an SAP company

Sybase and Adaptive Server iAnywhere Sybase 365 SQL Anywhere and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc Sybase is an SAP company

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

copy SAP AG Page 2 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process AlternativeDecision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen These include field names screen titles pushbuttons as well as menu names paths and options

Cross-references to other documentation

Example text Emphasized words or phrases in body text titles of graphics and tables

EXAMPLE TEXT Names of elements in the system These include report names program names transaction codes table names and individual key words of a programming language when surrounded by body text for example SELECT and INCLUDE

Example text Screen output This includes file and directory names and their paths messages source code names of variables and parameters as well as names of installation upgrade and database tools

EXAMPLE TEXT Keys on the keyboard for example function keys (such as F2) or the ENTER key

Example text Exact user entry These are words or characters that you enter in the system exactly as they appear in the documentation

ltExample textgt Variable user entry Pointed brackets indicate that you replace these words and characters with appropriate entries

copy SAP AG Page 3 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Contents

1 Purpose 5

2 Background Information5

21 Ownership Information5

22 Intercompany Transaction5

23 Other Information6

3 Preparation 6

31 IE Setting 6

32 Logging on SAP BPC system7

33 IE Configuration - Back to BPF7

34 Switch User Log on SAP BPC system8

35 Logon Interface for Excel8

4 Process Overview 8

5 Business Processes11

51 Preparation 11

511 Entering Exchange Rate11

512 Entering Ownership Information11

513 Copying Opening Data13

514 Closing the Step14

52 Uploading Data (All the Companies in the Group)14

521 Uploading Financial Statements14

522 Importing Financial Statements15

523 Reviewing Balance Sheet Statement16

524 Reviewing Profit Loss Statement16

525 Checking Onwerrsquos Equity Statement17

526 Checking Validation Report Result17

527 Entering Inter-Company Transaction Data18

528 Submiting Data23

529 Approving Data24

5210 Checking the Data Approval Status25

53 Consolidation Process25

531 Foreign Currency Conversion25

532 Pushing Data to IC-Maching26

533 Running IC-Matching27

534 Checking IC Matching Result ndash Sales27

535 Checking IC Matching Result ndash AR amp AP28

536 Journal Entry29

537 Running Consolidation36

538 Checking Consolidation Working Sheet37

539 Checking Validation Result for Cosolidation Report38

5310 Closing this Step38

54 Consolidation Report38

541 Presenting Consolidated Balance Sheet Statement38

542 Presenting Consolidated Income Statement39

copy SAP AG Page 4 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Legal Consolidation

1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure

The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps

Data Upload from Subsidiariesrsquo financial systems

Currency Translation

Inter-company Elimination

Journal Elimination

Consolidation Reports

According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)

2 Background Information

21 Ownership InformationParent Subsidiary Percentage of voting stock

S000 （Holding） S001 100

S000 S002 (overseas) 100

S000 S003 90

22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from

S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book

2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book

3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001

4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003

copy SAP AG Page 5 of 60

SAP Best Practices Legal Consolidation (B64) BPD

23 Other InformationThe parent company uses Equity Method to record Investment

Entity theory full goodwill method is applied to the consolidation group

For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010

The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

3 Preparation

31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password

1 Open Windowns internet Explorer Brower

2 Choose Tools Internet Options

3 Choose Security tab

4 Make setting as screenshot in both Local intranet and Trusted sites zone

5 Choose OK and exit

copy SAP AG Page 6 of 60

SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

copy SAP AG Page 7 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process AlternativeDecision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen These include field names screen titles pushbuttons as well as menu names paths and options

Cross-references to other documentation

Example text Emphasized words or phrases in body text titles of graphics and tables

EXAMPLE TEXT Names of elements in the system These include report names program names transaction codes table names and individual key words of a programming language when surrounded by body text for example SELECT and INCLUDE

Example text Screen output This includes file and directory names and their paths messages source code names of variables and parameters as well as names of installation upgrade and database tools

EXAMPLE TEXT Keys on the keyboard for example function keys (such as F2) or the ENTER key

Example text Exact user entry These are words or characters that you enter in the system exactly as they appear in the documentation

ltExample textgt Variable user entry Pointed brackets indicate that you replace these words and characters with appropriate entries

copy SAP AG Page 3 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Contents

1 Purpose 5

2 Background Information5

21 Ownership Information5

22 Intercompany Transaction5

23 Other Information6

3 Preparation 6

31 IE Setting 6

32 Logging on SAP BPC system7

33 IE Configuration - Back to BPF7

34 Switch User Log on SAP BPC system8

35 Logon Interface for Excel8

4 Process Overview 8

5 Business Processes11

51 Preparation 11

511 Entering Exchange Rate11

512 Entering Ownership Information11

513 Copying Opening Data13

514 Closing the Step14

52 Uploading Data (All the Companies in the Group)14

521 Uploading Financial Statements14

522 Importing Financial Statements15

523 Reviewing Balance Sheet Statement16

524 Reviewing Profit Loss Statement16

525 Checking Onwerrsquos Equity Statement17

526 Checking Validation Report Result17

527 Entering Inter-Company Transaction Data18

528 Submiting Data23

529 Approving Data24

5210 Checking the Data Approval Status25

53 Consolidation Process25

531 Foreign Currency Conversion25

532 Pushing Data to IC-Maching26

533 Running IC-Matching27

534 Checking IC Matching Result ndash Sales27

535 Checking IC Matching Result ndash AR amp AP28

536 Journal Entry29

537 Running Consolidation36

538 Checking Consolidation Working Sheet37

539 Checking Validation Result for Cosolidation Report38

5310 Closing this Step38

54 Consolidation Report38

541 Presenting Consolidated Balance Sheet Statement38

542 Presenting Consolidated Income Statement39

copy SAP AG Page 4 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Legal Consolidation

1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure

The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps

Data Upload from Subsidiariesrsquo financial systems

Currency Translation

Inter-company Elimination

Journal Elimination

Consolidation Reports

According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)

2 Background Information

21 Ownership InformationParent Subsidiary Percentage of voting stock

S000 （Holding） S001 100

S000 S002 (overseas) 100

S000 S003 90

22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from

S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book

2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book

3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001

4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003

copy SAP AG Page 5 of 60

SAP Best Practices Legal Consolidation (B64) BPD

23 Other InformationThe parent company uses Equity Method to record Investment

Entity theory full goodwill method is applied to the consolidation group

For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010

The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

3 Preparation

31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password

1 Open Windowns internet Explorer Brower

2 Choose Tools Internet Options

3 Choose Security tab

4 Make setting as screenshot in both Local intranet and Trusted sites zone

5 Choose OK and exit

copy SAP AG Page 6 of 60

SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

copy SAP AG Page 7 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Contents

1 Purpose 5

2 Background Information5

21 Ownership Information5

22 Intercompany Transaction5

23 Other Information6

3 Preparation 6

31 IE Setting 6

32 Logging on SAP BPC system7

33 IE Configuration - Back to BPF7

34 Switch User Log on SAP BPC system8

35 Logon Interface for Excel8

4 Process Overview 8

5 Business Processes11

51 Preparation 11

511 Entering Exchange Rate11

512 Entering Ownership Information11

513 Copying Opening Data13

514 Closing the Step14

52 Uploading Data (All the Companies in the Group)14

521 Uploading Financial Statements14

522 Importing Financial Statements15

523 Reviewing Balance Sheet Statement16

524 Reviewing Profit Loss Statement16

525 Checking Onwerrsquos Equity Statement17

526 Checking Validation Report Result17

527 Entering Inter-Company Transaction Data18

528 Submiting Data23

529 Approving Data24

5210 Checking the Data Approval Status25

53 Consolidation Process25

531 Foreign Currency Conversion25

532 Pushing Data to IC-Maching26

533 Running IC-Matching27

534 Checking IC Matching Result ndash Sales27

535 Checking IC Matching Result ndash AR amp AP28

536 Journal Entry29

537 Running Consolidation36

538 Checking Consolidation Working Sheet37

539 Checking Validation Result for Cosolidation Report38

5310 Closing this Step38

54 Consolidation Report38

541 Presenting Consolidated Balance Sheet Statement38

542 Presenting Consolidated Income Statement39

copy SAP AG Page 4 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Legal Consolidation

1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure

The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps

Data Upload from Subsidiariesrsquo financial systems

Currency Translation

Inter-company Elimination

Journal Elimination

Consolidation Reports

According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)

2 Background Information

21 Ownership InformationParent Subsidiary Percentage of voting stock

S000 （Holding） S001 100

S000 S002 (overseas) 100

S000 S003 90

22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from

S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book

2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book

3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001

4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003

copy SAP AG Page 5 of 60

SAP Best Practices Legal Consolidation (B64) BPD

23 Other InformationThe parent company uses Equity Method to record Investment

Entity theory full goodwill method is applied to the consolidation group

For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010

The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

3 Preparation

31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password

1 Open Windowns internet Explorer Brower

2 Choose Tools Internet Options

3 Choose Security tab

4 Make setting as screenshot in both Local intranet and Trusted sites zone

5 Choose OK and exit

copy SAP AG Page 6 of 60

SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

copy SAP AG Page 7 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Legal Consolidation

1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure

The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps

Data Upload from Subsidiariesrsquo financial systems

Currency Translation

Inter-company Elimination

Journal Elimination

Consolidation Reports

According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)

2 Background Information

21 Ownership InformationParent Subsidiary Percentage of voting stock

S000 （Holding） S001 100

S000 S002 (overseas) 100

S000 S003 90

22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from

S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book

2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book

3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001

4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003

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SAP Best Practices Legal Consolidation (B64) BPD

23 Other InformationThe parent company uses Equity Method to record Investment

Entity theory full goodwill method is applied to the consolidation group

For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010

The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

3 Preparation

31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password

1 Open Windowns internet Explorer Brower

2 Choose Tools Internet Options

3 Choose Security tab

4 Make setting as screenshot in both Local intranet and Trusted sites zone

5 Choose OK and exit

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SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

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SAP Best Practices Legal Consolidation (B64) BPD

23 Other InformationThe parent company uses Equity Method to record Investment

Entity theory full goodwill method is applied to the consolidation group

For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010

The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

3 Preparation

31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password

1 Open Windowns internet Explorer Brower

2 Choose Tools Internet Options

3 Choose Security tab

4 Make setting as screenshot in both Local intranet and Trusted sites zone

5 Choose OK and exit

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SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

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SAP Best Practices Legal Consolidation (B64) BPD

32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft）

2 Make the following entries in the pop up window

Field name Description User action and values Comment

User name For example[domain]Conso

Password For example welcome1

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SAP Best Practices Legal Consolidation (B64) BPD

3 Choose OK

4 On the SAP BusinessObjects- Launch Page choose Interface for the web

5 Choose AppSet SAP_BP_Conso_GL choose OK

6 Choose Business Process Flows

7 On the Business Process Flows screen choose the business process flow named Legal Consolidation

8 Steps assigned to this user are listed in lower part of the page

9 Choose the step to find the sub-step list The detailed explanation is included in part 5

10 Change Current View as follow

Field name Description User action and values Comment

Application For example Consolidation

Time The period For example 2011DEC

33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following

1 Open Windowns Internet Explorer Brower

2 Choose Tool Internet Options

3 Choose General tab

4 Choose Settings in the Tabs area

5 On the Tabbed Browsing Settings tab make setting as screenshot

6 Choose OK and exit

34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed

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SAP Best Practices Legal Consolidation (B64) BPD

35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application

4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results

Preparation

Enter Exchange Rate Financial Specialist in group company for financial consolidation

The exchange rate used for consolidation has been entered into the system

Enter Ownership information

Financial Specialist in group company for financial consolidation

The ownership percentage has been maintained in the system

Copy Opening Data Financial Specialist in group company for financial consolidation

Carry forward the closing balance of last period to this period

Upload Data

Upload Financial Data Financial Specialist and Financial Manager in subsidiaries

All the Financial Statements have been uploaded to the server

Import Financial Data Financial Specialist and Financial Manager in subsidiaries

The Financial Statement has been imported to the BPC system

Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries

Check the Balance sheet and make the necessary adjustment

Review Profit Loss Statement

Financial Specialist and Financial Manager in subsidiaries

Check the Income Statement and make the necessary adjustment

Check Ownerrsquos Equity Statement

Financial Specialist and Financial Manager in subsidiaries

Check the Ownerrsquos Equity Statement and make the necessary adjustment

Review Validation Report Financial Specialist and Financial Manager in subsidiaries

All the financial reprots have been checked

Input Inter-Company data Financial Specialist and Financial Manager

Enter the inter-company transactions

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SAP Best Practices Legal Consolidation (B64) BPD

Process Steps Sub-Process Steps Business Roles Expected Results

in subsidiaries

Submit Data Financial Specialist and Financial Manager in subsidiaries

The data has been submitted

Approve Data Financial Specialist and Financial Manager in subsidiaries

The data has been approved

Review Work Status Financial Specialist in group company for financial consolidation

Data Upload has been done and we can start the following steps

Consolidation Process

Foreign Currency Conversion

Financial Specialist in group company for financial consolidation

Local Currency has been converted to the reporting currency

Push Data to IC-Matching Financial Specialist in group company for financial consolidation

Copy Intercompany transaction data to IC matching

Run IC-Matching Financial Specialist in group company for financial consolidation

Run IC Matching

Review ICMatching Result ndash Intercompany Inventory Transaction

Financial Specialist in group company for financial consolidation

Check Validation Result

Review ICMatching Result ndash Intercompany AR and AP

Financial Specialist in group company for financial consolidation

Check Validation Result

Journal Entry Financial Specialist in group company for financial consolidation

Manual Adjustment

Run Consolidation Financial Specialist in group company for financial consolidation

Generate Consolidation Report

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SAP Best Practices Legal Consolidation (B64) BPD

Process Steps Sub-Process Steps Business Roles Expected Results

Review Consolidation working Sheet

Financial Specialist in group company for financial consolidation

Check Consolidation Working Sheet

Review Consolidation Validation Report

Financial Specialist in group company for financial consolidation

Check Validation Report

Consolidation Report

Review Consolidated balance Sheet

Financial Specialist in group company for financial consolidation

Present Report

Review Consolidated Profit Loss Statement

Financial Specialist in group company for financial consolidation

Present Report

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SAP Best Practices Legal Consolidation (B64) BPD

5 Business Processes

51 Preparation

PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on

511 Entering Exchange Rate

PurposeEnter the exchange rate which could be used in the currency restatement step

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business

Objects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application RATE

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Preparation

3 Select sub-step Enter Exchange Rate

4 On the Exchange Rate Sheet screen enter the following entries

Row Column Field Value Remark

USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency

USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency

EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency

EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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SAP Best Practices Legal Consolidation (B64) BPD

5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application

4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results

Preparation

Enter Exchange Rate Financial Specialist in group company for financial consolidation

The exchange rate used for consolidation has been entered into the system

Enter Ownership information

Financial Specialist in group company for financial consolidation

The ownership percentage has been maintained in the system

Copy Opening Data Financial Specialist in group company for financial consolidation

Carry forward the closing balance of last period to this period

Upload Data

Upload Financial Data Financial Specialist and Financial Manager in subsidiaries

All the Financial Statements have been uploaded to the server

Import Financial Data Financial Specialist and Financial Manager in subsidiaries

The Financial Statement has been imported to the BPC system

Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries

Check the Balance sheet and make the necessary adjustment

Review Profit Loss Statement

Financial Specialist and Financial Manager in subsidiaries

Check the Income Statement and make the necessary adjustment

Check Ownerrsquos Equity Statement

Financial Specialist and Financial Manager in subsidiaries

Check the Ownerrsquos Equity Statement and make the necessary adjustment

Review Validation Report Financial Specialist and Financial Manager in subsidiaries

All the financial reprots have been checked

Input Inter-Company data Financial Specialist and Financial Manager

Enter the inter-company transactions

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Process Steps Sub-Process Steps Business Roles Expected Results

in subsidiaries

Submit Data Financial Specialist and Financial Manager in subsidiaries

The data has been submitted

Approve Data Financial Specialist and Financial Manager in subsidiaries

The data has been approved

Review Work Status Financial Specialist in group company for financial consolidation

Data Upload has been done and we can start the following steps

Consolidation Process

Foreign Currency Conversion

Financial Specialist in group company for financial consolidation

Local Currency has been converted to the reporting currency

Push Data to IC-Matching Financial Specialist in group company for financial consolidation

Copy Intercompany transaction data to IC matching

Run IC-Matching Financial Specialist in group company for financial consolidation

Run IC Matching

Review ICMatching Result ndash Intercompany Inventory Transaction

Financial Specialist in group company for financial consolidation

Check Validation Result

Review ICMatching Result ndash Intercompany AR and AP

Financial Specialist in group company for financial consolidation

Check Validation Result

Journal Entry Financial Specialist in group company for financial consolidation

Manual Adjustment

Run Consolidation Financial Specialist in group company for financial consolidation

Generate Consolidation Report

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Process Steps Sub-Process Steps Business Roles Expected Results

Review Consolidation working Sheet

Financial Specialist in group company for financial consolidation

Check Consolidation Working Sheet

Review Consolidation Validation Report

Financial Specialist in group company for financial consolidation

Check Validation Report

Consolidation Report

Review Consolidated balance Sheet

Financial Specialist in group company for financial consolidation

Present Report

Review Consolidated Profit Loss Statement

Financial Specialist in group company for financial consolidation

Present Report

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5 Business Processes

51 Preparation

PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on

511 Entering Exchange Rate

PurposeEnter the exchange rate which could be used in the currency restatement step

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business

Objects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application RATE

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Preparation

3 Select sub-step Enter Exchange Rate

4 On the Exchange Rate Sheet screen enter the following entries

Row Column Field Value Remark

USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency

USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency

EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency

EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency

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5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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Process Steps Sub-Process Steps Business Roles Expected Results

in subsidiaries

Submit Data Financial Specialist and Financial Manager in subsidiaries

The data has been submitted

Approve Data Financial Specialist and Financial Manager in subsidiaries

The data has been approved

Review Work Status Financial Specialist in group company for financial consolidation

Data Upload has been done and we can start the following steps

Consolidation Process

Foreign Currency Conversion

Financial Specialist in group company for financial consolidation

Local Currency has been converted to the reporting currency

Push Data to IC-Matching Financial Specialist in group company for financial consolidation

Copy Intercompany transaction data to IC matching

Run IC-Matching Financial Specialist in group company for financial consolidation

Run IC Matching

Review ICMatching Result ndash Intercompany Inventory Transaction

Financial Specialist in group company for financial consolidation

Check Validation Result

Review ICMatching Result ndash Intercompany AR and AP

Financial Specialist in group company for financial consolidation

Check Validation Result

Journal Entry Financial Specialist in group company for financial consolidation

Manual Adjustment

Run Consolidation Financial Specialist in group company for financial consolidation

Generate Consolidation Report

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Process Steps Sub-Process Steps Business Roles Expected Results

Review Consolidation working Sheet

Financial Specialist in group company for financial consolidation

Check Consolidation Working Sheet

Review Consolidation Validation Report

Financial Specialist in group company for financial consolidation

Check Validation Report

Consolidation Report

Review Consolidated balance Sheet

Financial Specialist in group company for financial consolidation

Present Report

Review Consolidated Profit Loss Statement

Financial Specialist in group company for financial consolidation

Present Report

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5 Business Processes

51 Preparation

PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on

511 Entering Exchange Rate

PurposeEnter the exchange rate which could be used in the currency restatement step

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business

Objects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application RATE

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Preparation

3 Select sub-step Enter Exchange Rate

4 On the Exchange Rate Sheet screen enter the following entries

Row Column Field Value Remark

USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency

USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency

EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency

EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency

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5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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Process Steps Sub-Process Steps Business Roles Expected Results

Review Consolidation working Sheet

Financial Specialist in group company for financial consolidation

Check Consolidation Working Sheet

Review Consolidation Validation Report

Financial Specialist in group company for financial consolidation

Check Validation Report

Consolidation Report

Review Consolidated balance Sheet

Financial Specialist in group company for financial consolidation

Present Report

Review Consolidated Profit Loss Statement

Financial Specialist in group company for financial consolidation

Present Report

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5 Business Processes

51 Preparation

PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on

511 Entering Exchange Rate

PurposeEnter the exchange rate which could be used in the currency restatement step

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business

Objects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application RATE

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Preparation

3 Select sub-step Enter Exchange Rate

4 On the Exchange Rate Sheet screen enter the following entries

Row Column Field Value Remark

USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency

USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency

EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency

EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency

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5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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5 Business Processes

51 Preparation

PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on

511 Entering Exchange Rate

PurposeEnter the exchange rate which could be used in the currency restatement step

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business

Objects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application RATE

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Preparation

3 Select sub-step Enter Exchange Rate

4 On the Exchange Rate Sheet screen enter the following entries

Row Column Field Value Remark

USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency

USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency

EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency

EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency

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5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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2 From the BPF step list choose step Preparation

3 Select sub-step Enter Exchange Rate

4 On the Exchange Rate Sheet screen enter the following entries

Row Column Field Value Remark

USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency

USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency

EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency

EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency

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5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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5 Choose Save

6 Choose Active workbook and choose Refresh

7 Choose Back to BPF

ResultThe exchange rate has been maintained properly in the system

512 Entering Ownership Information

PurposeEnter the ownership information in the system

Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly

maintained

Field name Description User action and values Comment

Application OWNERSHIP

Time For example 2011DEC

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2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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2 For the BPF step list choose step Enter Ownership information

3 Choose menu eSubmit Manage Dynamic Hierarchies

4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen

Field name Description User action and values Comment

CATEGORY ACTUAL Data type

TIME For example2011DEC

CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child

6 On the Add CHILD screen choose Entity S000

7 Choose OK

8 On the Node Details screen Choose Show Empty and make the following entries

Field name Description User action and values Comment

CONSOSCOPE G-H1 Current consolidation group

METHOD Choose the cell and choose 90-HoldingParent

90-Holding Parent = holding company30-Equidity=subsidiary

POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60

PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003

Node S001

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

Node S002

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 1

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

Node S003

Field name Description User action and values Comment

CONSOSCOPE G-H1

METHOD Choose the cell and choose 30 Equity

POWN 09

PCON 1

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SAP Best Practices Legal Consolidation (B64) BPD

10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

10 Choose Save

11 Choose Yes

12 Choose OK

13 Close the screen

14 Now you could get the latest ownership information in the whole group

ResultAll the ownership percentage has been finalized within the consolidation group

513 Copying Opening Data

PurposeCarry forward the closing balance of last period to this period

Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly

maintained

Field name Description User action and values Comment

Application Consolidation

Time For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Copy Opening Data

3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL

Time Enter the current period for carry forwarding for example 2011 DEC

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjects screenchoose OK

9 Choose Back to BPF

ResultThe opening balance has been updated properly

514 Closing the Step

PurposeSet the status of Preparation as completed

Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this

step

ResultThe step Preparation has been completed you can go with the following steps

52 Uploading Data (All the Companies in the Group)

PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose

To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data

521 Uploading Financial Statements

PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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2 From the BPF step list choose step Upload Financial Data

3 On the Data Manager ndash upload screen make the following entries

Field name Description User action and values Comment

Source file Enter the menu where yoursquove put the balance sheet

Local_Financial_Data_2011csv

Destination file Enter the target place you would like to save the file

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4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose OK

5 In the pop-up window choose OK for the message File transferred successfully

6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server

7 Choose Back to BPF

ResultAll the companies have uploaded the file to the server

522 Importing Financial Statements

PurposeConvert the files stored in the server and save them in the backend database

To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data

Procedure1 From the BPF step list choose step Import Financial Statements

2 From the list choose Import Transaction Data and choose Run

3 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Import file Put the menu path you stored the file in step 521

Transformation file

The transformation file stored in the servereg Transformation filexls

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

4 Choose Next

5 Select Run now and choose Finish

6 Choose OK

7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever

8 Choose Back to BPF

ResultAll the financial data has been saved in the relevant database

523 Reviewing Balance Sheet Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

copy SAP AG Page 32 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Balance Sheet

3 On the worksheet of balance sheet please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary

ResultAll the balance sheet statements have been checked

524 Reviewing Profit Loss Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 27 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 28 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

copy SAP AG Page 30 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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2 From the BPF step list choose step Review Profit Loss Statement

3 On the worksheet of Income Statement please check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary

ResultAll the Income Statements have been checked

525 Checking Onwerrsquos Equity Statement

PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Check Ownerrsquos Equity State

3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data

4 Make the necessary changes

5 Choose Save

6 Choose Back to BPF

7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary

ResultAll of the Ownerrsquos Equity Statements have been checked

526 Checking Validation Report Result

PurposeWe could have a further check for all the financial statements submitted by the subsidiaries

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Review Validation Report

3 On the relevant working sheet check all the data

4 For the items marked as incoorect we should have a further analysis

5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525

6 Choose Refresh to check the latest validation result after the adjustement

7 Choose Back to BPF

8 Repease above-mentioend steps 1-6 check all the validation report for other companies

ResultAll the financial data has been validated

527 Entering Inter-Company Transaction Data

PurposeEvery subsidiary log on the system and enter the inter-company transaction information

Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

copy SAP AG Page 32 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Data Uploading

3 Select sub-step Input Inter-Company Data

4 For different type of inter-company transactions refer to the following detailed steps

5271 Intercompany Transaction No 1

Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003 ndash S003Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transactions ARampAP

Accounts receivable net

-S003Company Ending balance

1200

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S003 S003

8 Choose sheet IC transaction ARampAP

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

copy SAP AG Page 30 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

copy SAP AG Page 31 of 60

SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000 Company Ending balance

1200

11 Choose Save

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5272 Intercompany Transaction No2

Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002

Procedure1 Use following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction ARampAP

3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S002 ndash S002 Company

View members by ID And Description

4 Choose OK

5 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts Receivable net

-S002 Company Ending balance

8000

6 Choose Save

7 Use following information to log on the system

User ID Entity

User_S002 S002

8 Choose sheet IC transaction ARampAP

9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

Insert member hellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000 Company

View members by ID And Description

10 Make the following entries

Worksheet Account Line item Column Amount

IC transaction ARampAP

Accounts payable

-S000Company Ending balance

5700

11 Choose Save

The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536

12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5273 Intercompany Transaction No3

Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S001 ndash S001Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S001Company Ending balance

-800

IC transaction sales

Sales -S001Company Period value 1000

IC transaction sales

Cost of Goods Sold

-S001Company Period value 800

5 Choose Save

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

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SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

6 User following information to log on the system

User ID Entity

User_S001 S001

7 Choose sheet IC transaction Sales

8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000 ndash S000Company

View members by ID And Description

9 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending balance

1000

10 Choose Save

11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

5274 Intercompany Transaction No4

Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003

Procedure1 User following information to log on the system

User ID Entity

User_S000 S000

2 Choose sheet IC transaction Sales

3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S003Company

View members by ID And Description

4 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S003Company Ending balance

-800

IC transaction sales

Sales -S003Company Period Value 1000

IC Cost of -S003Company Period Value

copy SAP AG Page 32 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

copy SAP AG Page 33 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

copy SAP AG Page 34 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 36 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 37 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 38 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Worksheet Account Line item Column Amount

transaction sales

Goods Sold 800

5 User following information to log on the system

User ID Entity

User_S003 S003

6 Choose sheet IC transaction Sales

7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries

Field name Description User action and values Comment

INTERCO I_S000Company

View members by ID And Description

8 Make the following entries

Worksheet Account Line item Column Amount

IC transaction sales

Inventory -S000Company Ending Balance

400

IC transaction sales

Cost of Goods Sold

-S000Company Period Value 600

9 Choose Save

10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh

528 Submiting Data

PurposeEvery subsidiary has submitted the data

Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Submit Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to submit data Eg S000

Currency LC Only the data in LC will be submitted

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies

ResultAll the subsidiaries have submitted the data

529 Approving Data

PurposeThe manager in every subsidiary should approve the data

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SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

copy SAP AG Page 35 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 36 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 37 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 38 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

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SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose step Approve Data

3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information

Field name Description User action and values Comment

Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL

Entity The entity that you are going to apprve the data For example S000

RptCurrency LC

Time The time you are going to create the consolidation report For example 2011 DEC

4 Choose the green arrow in the screen

5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved

6 Choose the green arrow in the screen

7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies

ResultThe relevant managers have reviewed and approved the data

copy SAP AG Page 35 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 36 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 37 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 38 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 40 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

5210 Checking the Data Approval Status

PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated

Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 36 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 37 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 38 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 40 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Work Status

3 On the worksheet check if all the status is Approved

4 Choose Refresh to refresh the report result

5 Choose Back to BPF

6 From the BPF step list choose the Complete button under step Uploading Data to complete this step

ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized

53 Consolidation Process

531 Foreign Currency Conversion

PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 37 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 38 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 40 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose Consolidation Process

3 Choose Foreign Currency Conversion

4 On the Data Manager screen choose Financial Process package group

5 Choose package Currency Conversion choose Run

6 On the Data Manager ndash Run Package screen make the following entries

Field name Description User action and values Comment

Entity ltallgt All entities

Category ACTUAL All the actual data

RptCurrency Reporting currency

USD

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 38 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 40 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

7 Choose Run now

8 Choose Next

9 Choose Finish

10 On the SAP BusinessObjeects screen choose OK

ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report

532 Pushing Data to IC-Maching

PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 39 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 40 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Push Data to IC-Matching

3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Entity S000S001 S002 and S003

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 40 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been copied to application IC Mataching

533 Running IC-Matching

PurposePerform automatic checking for all the inter-company transaction data

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application ICMatching

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 41 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run IC-Matching

3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 42 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Run now

6 Choose Next

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultAll the inter-company transaction data has been checked via the system

534 Checking IC Matching Result ndash Sales

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 43 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose stepReview ICMatching Result Sales

3 On the working sheet check if there is any difference is listed

4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X）receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529 and 5210

9 For the adjusted data should process steps 531 532 and 533

10 From the BPF step list chooseReview ICMatching Result Sales

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Inventory transaction data has been checked

535 Checking IC Matching Result ndash AR amp AP

PurposeCheck the IC-matching result

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 44 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

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SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review ICMatching Result ARampAP

3 On the working sheet check if there is any difference is listed

4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process

5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly

6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5

7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528

8 The reponsible person in the group should monitor the approval status via step 529

9 For the adjusted data should process steps 531 532and 533

10 From the BPFstep list chooseReview ICMatching Result ARampAP

11 On the working sheet check if there is any difference is listed

12 If there is any difference please process above-mentioned step 4-11

ResultAll the inter-company Account Receivable and Account Payable transaction has been checked

In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536

536 Journal Entry

PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment

5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction

PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly

For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step

The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

copy SAP AG Page 45 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

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SAP Best Practices Legal Consolidation (B64) BPD

Field name Description User action and values Comment

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 46 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 Choose Business Process Flows

3 Choose Consolidation Process

4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries

Field name Description User action and values Comment

Appset Application Set Use the default value Application SetSAP_BP_Conso_GL

Application Application Use the default value ApplicationConsolidation

Time 2011DEC

Category ACTUAL

RptCurrency USD

Journal ID

Journal Group

Description

Selection List

Server Name Use the default value For example HTTPVMW 4594 1080

Entry Status Use the default value New

Old Journal ID

copy SAP AG Page 47 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 On the line item screen make the following entries

Double-choose the field and choose the proper value to enter the items

Field name The 1st line item Remark

ConsoScope G_H1

Entity ELIM_UNIT

Account NW01BS0505 View members by ID and Description

Interco I_NONE

DataSrc ELIM10

FLOW F99 F99（Ending Balance）PL99（period value of current

period）

Remark

Debit

Credit 265

6 Choose Save journal

7 Choose OK for the message Jounal successfully saved

8 Choose Post journal

9 Choose Yes for the message Do you want to post a journal

10 Choose Close for Journal post results

11 Choose Back to BPF

ResultThe adjustment entries have been recorded in the system

5362 Adjusting the Value of Investment

PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011

copy SAP AG Page 48 of 60

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Equity in Subsidiary lsquos net income

S003 net income 90 + S001 net income + S002 net income

CR Long term Investment Same as above

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount

5363 Adjustment entry to determine the goodwill

PurposeEliminate the change of investment

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010

The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

copy SAP AG Page 49 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Asset The difference between Net Book Value and Fair Value

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

According to Full Goodwill Method the goodwill should be recorded is as $ 62700

12060090 = 134000

134000 ndash fair value of the net asset 71300 = 62700

Non Controlling Interest is 134000 10 = 13400

DebitCredit Description Amount Comment

DR Goodwill 62700

Inventories 4000

Property plant and equipment net

8000

Preferred Stock 10000

Common Stock 40000

Retained Earnings 9300

CR Long Term Investment 120600

Non-Controlling Interest

13400

copy SAP AG Page 50 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry

PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is

copy SAP AG Page 51 of 60

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Cost of Goods Sold 4000

Retained Earnings

2000 The depreciation expense of equipment in year 2010

Depreciation Expense 2000

Retained Earnings

6000 (for the PL accounts adjustment in this entry)

CR Inventory 4000

Accumulated Depreciation

4000

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5365 Adjustment Entry to Eliminate the Long-Term Investment

PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002

copy SAP AG Page 52 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5366 Determine the Income related to Non-controlling Interest

PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income

copy SAP AG Page 53 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Equity in Subsidiary lsquos net income

S003 net income 90 + S001 net income + S002 net income

CR Long term Investment Same as above

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount

5363 Adjustment entry to determine the goodwill

PurposeEliminate the change of investment

For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010

The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

copy SAP AG Page 49 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Asset The difference between Net Book Value and Fair Value

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

According to Full Goodwill Method the goodwill should be recorded is as $ 62700

12060090 = 134000

134000 ndash fair value of the net asset 71300 = 62700

Non Controlling Interest is 134000 10 = 13400

DebitCredit Description Amount Comment

DR Goodwill 62700

Inventories 4000

Property plant and equipment net

8000

Preferred Stock 10000

Common Stock 40000

Retained Earnings 9300

CR Long Term Investment 120600

Non-Controlling Interest

13400

copy SAP AG Page 50 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry

PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is

copy SAP AG Page 51 of 60

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Cost of Goods Sold 4000

Retained Earnings

2000 The depreciation expense of equipment in year 2010

Depreciation Expense 2000

Retained Earnings

6000 (for the PL accounts adjustment in this entry)

CR Inventory 4000

Accumulated Depreciation

4000

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5365 Adjustment Entry to Eliminate the Long-Term Investment

PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002

copy SAP AG Page 52 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5366 Determine the Income related to Non-controlling Interest

PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income

copy SAP AG Page 53 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

Asset The difference between Net Book Value and Fair Value

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

According to Full Goodwill Method the goodwill should be recorded is as $ 62700

12060090 = 134000

134000 ndash fair value of the net asset 71300 = 62700

Non Controlling Interest is 134000 10 = 13400

DebitCredit Description Amount Comment

DR Goodwill 62700

Inventories 4000

Property plant and equipment net

8000

Preferred Stock 10000

Common Stock 40000

Retained Earnings 9300

CR Long Term Investment 120600

Non-Controlling Interest

13400

copy SAP AG Page 50 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry

PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is

copy SAP AG Page 51 of 60

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Cost of Goods Sold 4000

Retained Earnings

2000 The depreciation expense of equipment in year 2010

Depreciation Expense 2000

Retained Earnings

6000 (for the PL accounts adjustment in this entry)

CR Inventory 4000

Accumulated Depreciation

4000

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5365 Adjustment Entry to Eliminate the Long-Term Investment

PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002

copy SAP AG Page 52 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5366 Determine the Income related to Non-controlling Interest

PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income

copy SAP AG Page 53 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry

PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry

Asset The difference between Net Book Value and Fair Value

Inventories 4000

Property plant and equipment net 8000

Total 12000

The equipment should be amortized in the following 4 years

In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000

In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is

copy SAP AG Page 51 of 60

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Cost of Goods Sold 4000

Retained Earnings

2000 The depreciation expense of equipment in year 2010

Depreciation Expense 2000

Retained Earnings

6000 (for the PL accounts adjustment in this entry)

CR Inventory 4000

Accumulated Depreciation

4000

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5365 Adjustment Entry to Eliminate the Long-Term Investment

PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002

copy SAP AG Page 52 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5366 Determine the Income related to Non-controlling Interest

PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income

copy SAP AG Page 53 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

DebitCredit Description Amount Comment

DR Cost of Goods Sold 4000

Retained Earnings

2000 The depreciation expense of equipment in year 2010

Depreciation Expense 2000

Retained Earnings

6000 (for the PL accounts adjustment in this entry)

CR Inventory 4000

Accumulated Depreciation

4000

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5365 Adjustment Entry to Eliminate the Long-Term Investment

PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002

copy SAP AG Page 52 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5366 Determine the Income related to Non-controlling Interest

PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income

copy SAP AG Page 53 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

5366 Determine the Income related to Non-controlling Interest

PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income

copy SAP AG Page 53 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the

system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 Choose Consolidation Process

3 From BPF step list choose Journal Entry

4 Refer to the following screen dump and make the journal entry

537 Running Consolidation

PurposeVia Running Consolidation following procedure should be done

Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest

Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet

copy SAP AG Page 54 of 60

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Application Consolidation

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 55 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Run consolidation

3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run

4 On the Data Manager- Run Package screen make the following entries

Field name Description User action and values Comment

Category ACTUAL All the Actual Data

Consoscope G_H1

Time The time you are going to create the consolidation report For example 2011 DEC

copy SAP AG Page 56 of 60

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

5 Choose Next

6 Choose Run now

7 Choose Finish

8 On the SAP BusinessObjeects screen choose OK

ResultConsolidation has been processed

538 Checking Consolidation Working Sheet

PurposeCheck the consolidation result via the format of consolidation working sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Consoscope Company G_H1

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 57 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review consolidation sheet

3 Check the worksheet

4 If there is any adjustment required repeat steps536 and 537

ResultCheck the consolidation result in the consolidation working sheet

539 Checking Validation Result for Cosolidation Report

PurposeValidation checking the consolidation report

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 58 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review validation report

3 Check all the data in the validation report

4 Further analyze the items marked as incorrect

5 For the items should be corrected please refer to 536 537 and 538

6 After the adjustement choose Refresh to update the validation result

ResultAll the consolidation reports have been validated

5310 Closing this Step

PurposeClose the step Consolidation Process

Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to

complete this step

ResultStep3Consolidation Process has been completed

54 Consolidation Report

541 Presenting Consolidated Balance Sheet Statement

PurposePresent Consolidated Balance Sheet

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

copy SAP AG Page 59 of 60

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result

SAP Best Practices Legal Consolidation (B64) BPD

2 From the BPF step list choose step Review Consolid Balance Sheet

3 Present the consolidated balance sheet

ResultConsolidated Balance Sheet has been finished

542 Presenting Consolidated Income Statement

PurposePresent Consolidated Income Statement

Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP

BusinessObjects ndash Business Process Flows page make the following entries

Field name Description User action and values Comment

Entity Company CON_GROUP

Time The period of the consolidation report

For example 2011DEC

2 From the BPF step list choose stepReview Consolid Profit Loss Statement

3 Present the consolidated Income Statement

ResultConsolidated Income Statement has been finished

copy SAP AG Page 60 of 60

• Copyright
• Icons
• Typographic Conventions
• Contents
• 1 Purpose
• 2 Background Information
• • 21 Ownership Information
  • 22 Intercompany Transaction
  • 23 Other Information
  • • 3 Preparation
    • • 31 IE Setting
      • 32 Logging on SAP BPC system
      • 33 IE Configuration - Back to BPF
      • 34 Switch User Log on SAP BPC system
      • 35 Logon Interface for Excel
      • • 4 Process Overview
        • 5 Business Processes
        • • 51 Preparation
          • • Purpose
            • 511 Entering Exchange Rate
            • • Purpose
              • Procedure
              • Result
              • • 512 Entering Ownership Information
                • • Purpose
                  • Procedure
                  • Result
                  • • 513 Copying Opening Data
                    • • Purpose
                      • Procedure
                      • Result
                      • • 514 Closing the Step
                        • • Purpose
                          • Procedure
                          • Result
                          • • 52 Uploading Data (All the Companies in the Group)
                            • • Purpose
                              • 521 Uploading Financial Statements
                              • • Purpose
                                • Procedure
                                • Result
                                • • 522 Importing Financial Statements
                                  • • Purpose
                                    • Procedure
                                    • Result
                                    • • 523 Reviewing Balance Sheet Statement
                                      • • Purpose
                                        • Procedure
                                        • Result
                                        • • 524 Reviewing Profit Loss Statement
                                          • • Purpose
                                            • Procedure
                                            • Result
                                            • • 525 Checking Onwerrsquos Equity Statement
                                              • • Purpose
                                                • Procedure
                                                • Result
                                                • • 526 Checking Validation Report Result
                                                  • • Purpose
                                                    • Procedure
                                                    • Result
                                                    • • 527 Entering Inter-Company Transaction Data
                                                      • • Purpose
                                                        • Procedure
                                                        • 5271 Intercompany Transaction No 1
                                                        • • Transaction Data
                                                          • Procedure
                                                          • • 5272 Intercompany Transaction No2
                                                            • • Transaction Data
                                                              • Procedure
                                                              • • 5273 Intercompany Transaction No3
                                                                • • Transaction Data
                                                                  • Procedure
                                                                  • • 5274 Intercompany Transaction No4
                                                                    • • Transaction Data
                                                                      • Procedure
                                                                      • • 528 Submiting Data
                                                                        • • Purpose
                                                                          • Procedure
                                                                          • Result
                                                                          • • 529 Approving Data
                                                                            • • Purpose
                                                                              • Procedure
                                                                              • Result
                                                                              • • 5210 Checking the Data Approval Status
                                                                                • • Purpose
                                                                                  • Procedure
                                                                                  • Result
                                                                                  • • 53 Consolidation Process
                                                                                    • • 531 Foreign Currency Conversion
                                                                                      • • Purpose
                                                                                        • Procedure
                                                                                        • Result
                                                                                        • • 532 Pushing Data to IC-Maching
                                                                                          • • Purpose
                                                                                            • Procedure
                                                                                            • Result
                                                                                            • • 533 Running IC-Matching
                                                                                              • • Purpose
                                                                                                • Procedure
                                                                                                • Result
                                                                                                • • 534 Checking IC Matching Result ndash Sales
                                                                                                  • • Purpose
                                                                                                    • Procedure
                                                                                                    • Result
                                                                                                    • • 535 Checking IC Matching Result ndash AR amp AP
                                                                                                      • • Purpose
                                                                                                        • Procedure
                                                                                                        • Result
                                                                                                        • • 536 Journal Entry
                                                                                                          • • Purpose
                                                                                                            • 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
                                                                                                            • • Purpose
                                                                                                              • Procedure
                                                                                                              • Result
                                                                                                              • • 5362 Adjusting the Value of Investment
                                                                                                                • • Purpose
                                                                                                                  • Procedure
                                                                                                                  • • 5363 Adjustment entry to determine the goodwill
                                                                                                                    • • Purpose
                                                                                                                      • Procedure
                                                                                                                      • • 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
                                                                                                                        • • Purpose
                                                                                                                          • Procedure
                                                                                                                          • • 5365 Adjustment Entry to Eliminate the Long-Term Investment
                                                                                                                            • • Purpose
                                                                                                                              • Procedure
                                                                                                                              • • 5366 Determine the Income related to Non-controlling Interest
                                                                                                                                • • Purpose
                                                                                                                                  • Procedure
                                                                                                                                  • • 537 Running Consolidation
                                                                                                                                    • • Purpose
                                                                                                                                      • Procedure
                                                                                                                                      • Result
                                                                                                                                      • • 538 Checking Consolidation Working Sheet
                                                                                                                                        • • Purpose
                                                                                                                                          • Procedure
                                                                                                                                          • Result
                                                                                                                                          • • 539 Checking Validation Result for Cosolidation Report
                                                                                                                                            • • Purpose
                                                                                                                                              • Procedure
                                                                                                                                              • Result
                                                                                                                                              • • 5310 Closing this Step
                                                                                                                                                • • Purpose
                                                                                                                                                  • Procedure
                                                                                                                                                  • Result
                                                                                                                                                  • • 54 Consolidation Report
                                                                                                                                                    • • 541 Presenting Consolidated Balance Sheet Statement
                                                                                                                                                      • • Purpose
                                                                                                                                                        • Procedure
                                                                                                                                                        • Result
                                                                                                                                                        • • 542 Presenting Consolidated Income Statement
                                                                                                                                                          • • Purpose
                                                                                                                                                            • Procedure
                                                                                                                                                            • Result