My client is trying to consolidate their European operations into a single European entity. Currently they have each country as a company code/sales org. Now they want a single european financial/legal entity representing the company to clients with the countries underneath as Branches. However a couple of countries (which will now be Branches) will still have statutory reporting requirements in local currency due to the countries they reside in. The rest of the Branches need internal profitability reporting and not external.
One of the options is to have a single company code/sales org as that will accurately reflect the consolidation they are doing financially and legally. Effectively that means they have to use the Branches as Profit Centers. However they already use Products as Profit Centers to analyse profitability by products (they use only CO-PA currently) .
My questions are:
- Can they still use Profit Centers (via EC-PCA) to manage their profitability, i.e can they use few Profit Centers for Product profitability reporting and the rest for Branch profitability reporting? Will that work?
- How complex is it going to be for the Finance team to manage to manage both COPA reporting for Products and PCA reporting for Branches?
- Any other options that might help, please do share.
p.s. I did think of Business Areas but from my understanding BA cannot do P/L & BS reporting in local currency, i.e. can do only Company code currency reporting. Please let me know if my understanding is not correct.