Overcoming the Top 7 Intercompany Accounting Challenges in SAP ERP Financials

Produced by Wellesley Information Services, LLC, publisher of SAPinsider. © 2015 Wellesley

Information Services. All rights reserved.

Overcoming the Top 7 Intercompany Accounting Challenges in SAP ERP Financials

David Cohen EY

1

In This Session

• Discuss common issues in Intercompany (IC) processes

• Review common design solutions for seven main processes

• Examine project challenges for implementing IC processes

• Consider how existing and future HANA functionality can improve

efficiency of IC processes

• Explore Leading Practices in the areas of systems, master data,

processes, and people related to IC

2

What We’ll Cover

• Intercompany Processes and SAP ERP

• How Can HANA Improve IC Processes?

• Challenges for Implementation

• Leading Practices – Systems, Master Data, Processes, and People

• Wrap-up

3

Intercompany Processes

• Intercompany Product Sales

• Intercompany Charge of Services

• Intercompany Lease of Assets

• Intercompany AP/AR Reconciliation

• Intercompany Treasury (In-House Cash)

• Intercompany Profit Elimination

• Intercompany Month-End Closing

4

Common Intercompany Issues

• Top-side, high-level entries

• No ability to isolate Foreign Exchange (FX) impact on IC profit reserve

• Limited ability to analyze gross profit on a consolidated cost basis

• Intercompany profit reserve based on estimates and averages

• Lost goods, goods stuck in transit, COGS without revenue, revenue without

COGS, etc.

• Lack of established policies and procedures driving IC activities

• Not leveraging common processes across multiple countries into one Shared

Service Center

Manual

Processes

Poor Visibility

Lack of

Control

Lack of adherence to a process resulted in unexpected IC write-offs and tedious

manual processing

• Long close cycle times and difficult reconciliation of IC processes

• Highly manual and spreadsheet-based process

• No ability to adjust obsolescence, revaluation, PPV, or consumption

variances for IC profit

• Poor data quality and inconsistencies

• Low accuracy of product costing

5

Why Is Intercompany a Challenge in SAP?

• Strictly from an SAP functional perspective:

Many IC processes are not represented by specific SAP

functionality

Sometimes there is no out-of-the-box standard solution

There might be multiple possible designs and solutions for a

specific IC process

IC processes are very dependent on company and the industry

• Processes in this presentation are depicted as generic

suggestions and not as specific “unique” solutions with all

steps

• GAPs will vary depending on company, industry, processes,

and systems architecture

6









7

Design Principles

• Adopt Stock Transfer Orders

• Establish Transfer Price agreements harmonized with SAP ERP

design

• Use EDI to automate booking of payable upon creation of

receivable – no manual intervention after Goods Receipt

• Handle Invoice Receipt automatically without manual intervention

(reduces time required for month-end closing)

Special care needed for:

• Country Taxes (might require implementation of User Exit)

• Additional Lines (freight, customs, etc.)

8

Process Flow (Main Activities)

9

Key Enablers: Stock Transfer Order and Goods-in-Transit Functionality

• Stock Transfer Orders (STO) are used to move materials between

companies integrating both processes

• Both companies need to implement Materials Management and

Purchasing (MM) and Sales and Distribution (SD)

• Process is initiated by company that needs to receive the material

• It is necessary to pay attention to fulfilling country statutory

requirements – usually revenue recognition, transfer price, and

settlement of receivables/payables must be performed as if the

companies were independent

• The additional usage of Goods-in-Transit improves the financial

controls of inventory ownership

10

Key Enabler: Goods-in-Transit Functionality

• SAP ERP 6.0 with EHP5 supports full automation of intercompany

accounting, including accruals for stock in transit

Seller location

On-hand In-transit

Buyer location

On-hand In-transit

Transfer to

in-transit (681)

Issue paired with

receipt (685)

Goods receipt

(101)

Transfer to

in-transit (681)

Issue paired with

receipt (685)

Goods receipt

(109)

Logical receipt

(107)

Transfer to

in-transit (683)

Goods receipt

(109)

Goods receipt

(107)

Seller ships goods and retains

ownership while in transit. Buyer

confirms receipt, which

automatically books goods issue

and receipt to on-hand.

Seller retains ownership for part of

transit time. POD at title transit

point moves inventory to in-transit

to buyer. Final receipt moves

inventory to on-hand at buyer.

Intercompany sale recognized

immediately at time of goods

issue. Buyer holds inventory in-

transit until physical receipt, which

moves inventory to on-hand.

Intercompany invoicing is automatically triggered

when title transfers between companies

Inventory location by status, ownership, and movement

User task performed in SAP

Title transfer point that triggers billing

1. Ship goods

1. Ship goods

2. Create proof of delivery 1. Ship goods 3. Receive goods

2. Receive goods

2. Create proof of delivery

11









12

Design Principles

• Use Intercompany Charge of Services process to create and

charge a variety of expenses between Company Codes

• Accumulate charges either by direct posting or with periodic

assessment into Work Breakdown Structures (WBS)

• Calculate and post invoices (AP/AR) at month end or ad hoc

• Use EDI and IDoc integration to automatically create the Accounts

Payable invoice, booking it at the same time as A/R

• Consider each type of process carefully. As this is not a standard

process in SAP, there are several alternatives on how to trigger

the process or how to deal with specific charges (IT fees, HR ex-

pat charges, training, etc.)

13

Process Flow

14

Design Principles

• Consider the creation by the Buyer of a blanket PO authorizing the

charges while seller creates a Sales Order for automatic billing

The reference PO is used to post charges to the receiver cost

object

Other types of POs can be considered depending on specific

business process

• Based on the WBS charges, the sales price is calculated and the

following documents are created: Billing, Accounts Receivable

Invoice, and Accounts Payable Invoice

Charges are collected on a WBS by direct posting or

by allocation of expenses from Cost Centers or other

objects

15

Design Principles (cont.)

• Trigger Billing and Invoicing periodically and automatically. It is

possible to add an ad hoc billing event as well.

• Activate Extended Withholding Tax (WHT) functionality for all

countries – you will need it

• Resolve issues with billing through Dispute Management − do not

hold back month-end closing

SAP GAPs:

• Full Processing of WHT in receiver side

• Posting Payable Invoice to the correct cost object

16

Key Enabler: Resource-Related Billing

• RRB allows for the summarization of data based on Project, Sales

Order, Service Order, and other cost objects in order to calculate

COGS and Revenue (Sales Price)

• RRB is powerful, but requires standardization and rationalization

of different business processes and scenarios

• There are several standard possibilities for billing: Cost-Based

Billing, Quantity-Based Billing, Fixed Price, Surcharges, and any

combination of these. They are used when simple Milestone or

Periodic Billing are not enough.

• RRB has extensive possibilities for configuration with the

possibility of custom logic by using User Exits

17

Example: Usage of WBS and RRB

Service Charges

Labor – $2,000

Fringe – $1,000

Other Costs – $3,000

IT Cost Center

WBS 123

Country A

Charges

Labor – $2,000

SAP – $5,000

Support – $8,000

Transferred to WBS 123

Labor – $500

Fringe – $100

Other Costs – $300

WBS 123

Labor – $500

Fringe – $100

Other Costs – $300

Allocated to WBS 123

IT Charges – $1,000

Allocated from IT

IT Charges – $1,000

Month-End

Billed – $1,900

COS – $1,900

A/R – $2,000* Revenue – $2,000

*Difference between COS and A/R is due to markup and surcharges

18









19

Design Principles

• Leverage the key design principles from IC Sales of Products and

IC Service Charges processes

• Use a zero-dollar value PO (STO) to request rental equipment or

an asset

• Match Asset or Equipment to a Non-Valuated Material through

Serial Number

• Enhance SAP solution through user exits to handle all scenarios

of Withholding Tax and other Fees

Most prevailing technology nowadays:

Excel spreadsheets!

20

Process Flow

21

Key Enablers

• Link Assets, Equipment, and Non-Valuated Material by serial number

• MM/SD are the drivers for shipping the asset and creating the documentation

• For some scenarios, Cost Centers can be used as an indirect assignment of the location (country) of the equipment in order to derive invoice and tax charges (e.g., IT charges to different countries)

• It will probably be necessary to develop custom reports to manage end of lease and other management information

• Potential GAP for different country taxes

Use combination of Vendor, Country, and other Sales Orders/ Billing characteristics to derive correct tax calculation

• There is a need to keep synchronization between AM and MM modules for quantity (i.e., asset disposal)

22









23

Leading Practices

• Use automatic Intercompany Reconciliation Process (ICR)

• Periodically process (during the month) the reconciliation of IC

payable and receivable – no need to wait for month-end closing

• Implement Dispute Management process for issues about price,

quantity, or quality

• Reconcile the documents and afterwards deal with the dispute

Subsequent debit and credit memos derived from the dispute

resolution will also be reconciled

Dispute does not interrupt month-end closing

The automatic creation of payable (in buyer’s GL) upon the

creation of the receivable (in seller’s GL) should reduce the

number of discrepancies to a minimum

24

Process Flow

25

Option 1: SAP ICR (Intercompany Reconciliation) Tool

• Solution collects data from Accounts Receivable and Payable

invoice level detail and enables matching analysis during the

month. It can accommodate non-SAP data.

• There is an opportunity to correct before month-end close,

reducing differences at month-end. Nevertheless, it is a batch

process.

• There is a process for automatic and manual matching with

standard or customized rules for reconciliation and matching

• ICR is an analysis tool. It does not correct the problem at the

source, but can initiate a dispute.

ICR works better in an SSC environment (centralized processing)

26

Option 1: SAP ICR (Intercompany Reconciliation) Tool (cont.)

Navigation Tree with

Differences to Reconcile

by Company and Partner

Company Unassigned

Documents Partner Unassigned

Documents

Matched Documents

27

Option 1: SAP ICR (Intercompany Reconciliation) Tool (cont.)

Communication (Email)

Workflow (Custom)

Dispute Case

28

Option 2: SAP BusinessObjects IC Reconciliation Tool

• Easier to include mixed ERP data

• Good integration with Consolidation (BPC)

• Good functionality for mixed currencies

• Works well in decentralized environment

• It can force agreement by generating adjustment posting

• More complicated integration to Dispute Management

How does it compare to SAP ERP ICR?

29

The total of the invoices

is equal to the balance in

the child account

The total of the

invoices differs from

the balance in the child

account

Matched invoices

(in Black font)

Unmatched invoices

(in Blue hyperlink)

Matching takes place

based on Invoice

reference created by

ERP System

Uploaded data

Amount not

matched

Option 2: SAP BusinessObjects IC Reconciliation Tool (cont.)

The declaring company’s invoices are compared to the partner’s. The invoices are matched automatically:

• Have the same transaction reference

• Contain the same transaction amount

30









31

In-House Cash Concepts

• Simulate an internal bank and use it to fulfill financial services to group companies

• It can provide services such as: Provision of FX, Interest Rate Calculation, Liquidity Management, Intercompany Liability, Funding Management, Centralized Management of Payables and Receivables

• Two scenarios for Payables and Receivables

External Incoming and Outgoing Payment via In-House Cash (IHC)

All Incoming and Outgoing Payment with external entities is processed through the In-House Cash Center of the parent company

Internal Payments

The In-House Cash Center is used to manage all payments between company units and thus keeps cash resources within the group and optimizes how they are applied

32

Example: Vendor Payment Process Flow

33

In-House Cash

• Principles:

IHC is set up at the group headquarters

IHC is a virtual bank where subsidiaries have current accounts

Technically, it is a separate engine – that is the reason for the

complex ALE/IDoc configuration and the multiple steps in

processing

Accounts can be maintained in any currency

The handling of intercompany payments is fully automated

within IHC. On the due settlement date, the IHC accounts and

the general ledgers of the paying and recipient intercompany

counterparties are updated automatically with the relevant

postings.

34

In-House Cash: How Does It Help?

• Benefits:

Centralized payment and receivable transactions on a regional

or global level

Reduced cost and number of payment transactions, bank

account numbers, and bank fees

Surplus cash can be used for financing purposes; cash

resources are kept within the group

Better control of financial interest of subsidiaries

Processes internal payment transactions on a cost-effective

basis

Reduction of the number of external banks and associated

interfaces

35

Additional Points

• Critical configuration: ALE and IDocs. Functionality makes

extensive usage of IDocs. Users might have to be trained in

troubleshooting them.

• Accounts Payable has two steps (instead of one)

• SAP ERP functionality works well, but additional custom

management reports and interfaces might be required

• Plan enough time to test with banks

• IHC cannot be implemented for certain countries (e.g., China)

Difficult to have 100% adherence to IHC (country

regulations, external systems, etc.)

36









37

Accounting 101: Intercompany Profit Elimination

Intercompany Sales has a

profit of $200.00

Overall inventory is overstated

by $200.00

Inventory must be adjusted (by

eliminating IC Profit) and taxes

deferred (30% of ICP, as an

example)

What is Intercompany Profit Elimination?

38

Accounting 101: Intercompany Profit Elimination (cont.)

• It looks simple until you add:

Balances from previous years

Price Purchase Variances (PPV)

Exchange Rate Differences

Currency Adjustment Translation (CAT)

Production Variances

Price Adjustments and Rebilling

Legal, Group, and Functional Currency

Billing Currency

Daily and Monthly Exchange Rates

Complex Production and Supply Chains (such as tolling)

39

Leading Practices

• Keep in mind that there are two processes that must be

addressed:

Determination of Actual Costing across Company Codes

Determination of Company Uplift (or Delta Profit, ICP)

• Use the latest SAP functionality in this area:

Parallel Valuation in Material Ledger (Legal and Group/

Management) with single and multi-settlement

Implementation of STOs for intercompany sales

Actual Company Uplift (EHP 5 – business function

LOG_MM_SIT)

Companies must be in the same Controlling Area

40

Option 1: Intercompany Profit as a Cost Component

• Inventory value is tracked in legal valuation and group valuation

in Material Ledger

• Company Uplift is a cost component of Group Costing

IC Inventory Profit is reported,

revaluating inventory and goods

movement based on Management

View:

• Inventory at hand

• Good Issue (for relieve of IC

Profit)

• Returns

• Scrap

• And so on

41

Option 2: STO Updating ICP

Invoice $1,100 Invoice $1,300

• IC profit is recorded in Legal Valuation

• Group Valuation excludes IC profit

• Actual costing is calculated based on Legal Valuation

• After period end, price differences and variances from sending

plant are transferred to the receiving plant in multi-level

settlement in group valuation

42

Option 2: STO Updating ICP (cont.)

• Uplift included in Legal Valuation plus Actual Costing in Group

Valuation

• Delta Profit is updated based on STO information

Condition type PR00 – legal valuation with profit markup

Condition type KW00 (group valuation) – value of the material in

the sending plant to be used as the invoice value on the

receiving side in group valuation

Updates Delta Profit with:

Purchase Price Value – Sender’s COGS (KW00)

• Can use BAdI for changes in how values are calculated and

updated

43

Changes in Development

• SAP and a partner client are developing and implementing a

solution that enhances Delta Profit calculation

Delta Profit is calculated based on

Transfer price – COGS selling Plant

Variances in multi-level settlement are forwarded to receiving

plants and update Delta Profit

External Sales or transfer of goods decrease Delta Profit in the

material/plant

More Information on upcoming SAP developments

Attend SAP Financials 2015 presentation:

Sanjeev Walia, EY, “Key Design Considerations for Legal and

Group Valuation in SAP’s Material Ledger”

44









45

Leading Practices

• Implement one of the two SAP options for managing month-end

closing

SAP Closing Cockpit − standard SAP tool to monitor and

control the entire period-end closing cycle

SAP Financial Closing Add-On

More Information on SAP Financial Closing Add-On

Attend SAP Financials 2015 presentation:

Genco Odevci, EY, “I Implemented SAP Financial Closing

Cockpit in SAP ERP 6.0: Now What?”

46

Key Enabler: SAP Closing Cockpit

• SAP Closing Cockpit works through the definition of templates

and tasks lists executed during period end

• The key design elements are:

Defining organizational hierarchy for closing

Defining period close template

Assigning tasks to template

Defining task dependencies

Creating and releasing a task list – ongoing each period

47

Key Enabler: SAP Closing Cockpit (cont.)

• It provides a structured list of financial activities that

occur periodically

• The single-screen layout presents a period-close-centric view

• The purpose is to replace spreadsheet-based close checklists.

Embedded task dependencies can help prevent timing issues.

• Once a task is being worked on, its status will be visible to all

• Support documentation or a note can be attached to tasks

• Auditors accept completed task list printout as proof of close

completion

• SAP transactions or custom T-Codes can be directly called from

the Closing Cockpit. Task execution captured with a time

snapshot.

Source: Genco Odevci “Expert Techniques for Making the Most of the SAP Financial Closing

Cockpit” (SAP Financials 2014).

48

Additional Option: Usage of SAP Financial Closing Add-On

• It requires a separate license agreement

• It connects to multiple SAP ERP systems for remote runs

• It offers automated closing tasks, even in remote system. All task

types (transactions, programs, jobs, workflow, CPS [Central

Process Scheduling by Redwood] tasks) are available for the local

and remote systems.

• It has reusable task groups

• Tasks can automatically start when predecessors are done (e.g.,

run transaction in test mode; if successful, run in production

mode; if errors, send mail using workflow)

• It offers collaboration, notifications, and workflows

• It offers better real-time insight into the closing status

49

What We’ll Cover





• Wrap-up

50

How Can HANA Improve IC Processes?

• ICR (Intercompany Reconciliation)

ICR works directly on the open items in AP/AR (central ERP instance)

Always ready to reconcile – no batch loading or matching

New Management Dashboard

• Material Ledger

Side-car solution implemented in several clients

Accelerated Closing Runs:

Material Selection

Single and Multi-Level Settlement

Post-Closing

In-memory computing increases speed of tasks due to almost

instantaneous fetching of data from the virtual “hard-disk”

51

SAP Simple Finance (Optimized Financial Data Architecture)

Legal/External

Accounting (FI)

Documents

Legal/External

Accounting (FI)

Totals tables

Management

Accounting (CO)

Documents

Management

Accounting (CO)

Totals tables

ERP Financials

Market Segment

Data

Legal/External

Accounting (FI)

Documents

Legal/External

Accounting (FI)

Totals tables

Management

Accounting (CO)

Documents

Management

Accounting (CO)

Totals tables

Profitability Analysis

(COPA)

Documents

Market Segment

Data

• No Data Redundancy

• Easy Reconciliation

• High Flexibility

• Less Data Volume

• High Performance

• One-stop shop for all operational financial reporting

• Drilldown to atomic detail

One Unified Accounting Document

• Data Redundancy (Totals tables, Data Warehouse)

• High Reconciliation effort

• Low Flexibility

• Higher Data Volume

• Performance issues

Physical Data

Virtual HANA views

Reports

Reports

Reports

Profitability Analysis

(COPA)

Documents

Data

Warehouse

Simple Finance on HANA

52

Central Journal

• Finance data is copied from source systems

onto a Central Journal instance. Source

systems can remain in place and continue

with local transaction processing.

• Real-time harmonized global financial

information on a HANA platform with atomic

detail, allowing flexible reporting using robust

reporting tools

• Single Uniform Global Data Model for external

(FI), internal (CO), and Profitability/Market

Segment (COPA) accounting

• No reconciliation across instances

• Central Journal is an adoption scenario that enables implementing Simple Finance with

minimum disruption to existing systems

• It provides real-time replication of financial information from diverse instances that are

harmonized into a Central Journal

• Can provide consolidated financial and management reporting, central process execution and

transaction, planning, consolidation, and reporting based on the same (single source of truth)

data set

Consolidation Reporting

SAP ERP

6.0

SAP ERP

6.0

SAP R3 4.6

Non-

SAP

Central Journal SAP Instance with

Simple Finance

53

What We’ll Cover





• Wrap-up

54

Project Perspective

• IC processes are frequently an afterthought

• Seen as only an integration issue instead of a process

Integration: Communication or connection between modules

(e.g., account determination for material movements)

Process: Series of connected steps accomplishing a goal (e.g.,

P2P, O2C, R2R)

• IC processes frequently “break” during integration tests or after

go-live

• Create a specific project work stream to deal with

IC processes

• In a phased rollout, think about interim stage

• Give the team the right resources (business and

functional)

55

Interim Stage Challenges

• Projects frequently think in terms of to-be processes of final design

• This works fine with big-bang style implementations, but most Global implementations are phased by business and/or geography

• The Key Decision is whether or not to integrate the IC processes in the interim stage

• Unless the company works with two or more disconnected systems in terms of IC processes, there is a need to link all systems from day one

The design for the interim stage can absorb significant resources from the project team (up to 30% to 40% of work)

To-be might need to be adjusted to work together with the interim design (need for compromise)

The Key Decision is whether or not to integrate the

IC processes in the interim stage

56

Interim Stage Challenges: Integrating All Companies

• In a phased rollout, a design decision to integrate companies that

have not migrated to the new environment into the IC processes

has advantages and disadvantages

• Immediate benefit to IC processes by

implementing leading practices

• Better management reports

• Faster closing

• Alleviates issues with

communications

• Easier transition in future rollouts

• Early work on master data

harmonization

Advantages

• Complexity of implementation

• Consumption of project resources

• Potential issues with differences in

business processes (e.g., transfer

prices, material valuation)

• Need to compromise a few to-be

design decisions

Disadvantages

57

Interim Stage: STO Integration

• Integration can be done through a custom development

(Intercompany Data Transfer)

• Need to customize IC Data Transfer for each IC process

58

What We’ll Cover





• Wrap-up

59

Leading Practices

• Single instance with consistent global template

• Leverage dual posting (Seller AR and Buyer AP)

• Use the matching and reconciliation functionality for AR/AP and GR/IR

• Use ERP (SAP In-House Cash) netting functionality

• SAP ERP 6.0 since Enhancement Pack 5 – provides Goods in Transit visibility

• Use workflow and IDocs where possible

• Single point consolidation (avoid sub-consolidation) and leverage a tool (HFM, BPC, etc.)

Systems

Master Data Management and Governance

• Establish a governance policy to manage strategic changes to master data

• Establish master data policies and procedures for change management

• Ensure that all projects that impact systems include master data team participation

• Assign full responsibility of master data to individuals for maintenance

60

Leading Practices (cont.)

• Establish materiality thresholds for posting of IC transactions

• Establish a detailed monthly calendar for IC tasks

• Establish a Dispute Resolution Policy with a Committee that arbitrates disputes

• Establish upfront approvals

• Consider tax needs (provisioning, transfer pricing) when establishing timing of billing

(monthly, quarterly, annual) for corporate pass-downs

• Establish policy on currency for transactions between entities with different currencies

for reconciliation and settlement

• Document and communicate IC policies and procedures

Processes

People

• Centralize IC accounting (where possible), but maintain a single point of contact for IC

transaction inquiries for each company

• Document and train for specific roles and responsibilities, including handoffs

• Train and provide job aids/contact information for all personnel involved in IC

transactions

• Document review/approval/escalation points for IC transactions

61

What We’ll Cover





• Wrap-up

62

Where to Find More Information

• SAP Financials 2015 presentations

Sanjeev Walia, “Key Design Considerations for Legal and

Group Valuation in SAP’s Material Ledger” (Las Vegas, 2015).

Genco Odevci, “I Implemented SAP Financial Closing Cockpit

in SAP ERP 6.0: Now What?” (Las Vegas, 2015).

• Prem Ramlal, “Manage Cash Flows and Reduce Bank Costs with

an Integrated Treasury System” (SAP Financials 2014, Orlando).

• Financials Expert (http://sapexperts.wispubs.com/Financials)

Janet Salmon, “Calculate Actual Costs Across Multiple

Company Codes Using a New Business Function in SAP

Enhancement Package 5 for SAP ERP 6.0” (Financials Expert,

December 2010).

63

7 Key Points to Take Home

• Consider IC processes as a project work stream

• Automate transactions and postings across company codes

• Use a formal process of Dispute Resolution to avoid interruptions

in the IC processes

• Standardize IC processes and manage the necessary change to

accomplish them

• Review policies to support the implementation of leading

practices

• Do not forget about the interim stage with a phased rollout

• Be bold – You will live with the system for the next 15 years!

64

Your Turn!

How to contact me:

David Cohen

[email protected]

Please remember to complete your session evaluation

65

Disclaimer

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or

an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective

companies. Wellesley Information Services is neither owned nor controlled by SAP SE.

EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a

separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Ernst & Young LLP

is an EY member firm serving clients in the US. For more information about our organization, please visit ey.com.

© 2015 Ernst & Young LLP.

All Rights Reserved.

1401-118151

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other

professional advice. Please refer to your advisors for specific advice.

Wellesley Information Services, 20 Carematrix Drive, Dedham, MA 02026 Copyright © 2015 Wellesley Information Services. All rights reserved.

Technology

Overcoming the Top 7 Intercompany Accounting Challenges in SAP ERP Financials