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Consolidation without using LC or EC- CS modules

Former Member
0 Kudos

Hi,

I am planning to have two company codes in SAP. Two company codes together are at present individual legal entity in the real world. The reason for planning for two company codes is that management plans to have a separate company for the other business. That is, one is a transport business and the other is a repair and maintenance business. Management plans to have repairs as a separate business.

So, now the question is if we create two separate company codes for a single legal entity ( at present) will the auditors question this ?

I believe company codes can also created from MIS point of view and both are separate kinds of businesses.

Second question- since at present both are single company businesses, how do I consolidate the financial statements of two company codes into one. As external financial statement has to be one and not two!

We can't use Consolidation modules. so please suggest how to configure this. We have same Operating Chart of accounts and One group chart of accounts and same fiscal year for both company codes.

How to handle the transactions that have happened between these two company codes.

Appreciate your kind responses

Regards,

satan

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Answers (1)

Answers (1)

former_member206852
Contributor
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Dear Satan

You statement is bit contradictory. Initially you say that "two company codes together are at present individual legal entity in the real world". Is it together or individually?

If it is together, then there is no use of going for separate company codes for each business. You can create these business as separate profit centers and then generate the PL statement per profit center.

Otherwise, if they are separate individual legal entities, then you have to go for separate company codes and then there will be separate financial statement also.

Regards

Syed Zia Abbas

Former Member
0 Kudos

Hi,

Thanks for quick response. The plan to have separate company codes is because- in the near future repairs and maintenance is going to become a separate business, a separate company.

Why I intend to create new company codes is, when we have to create new company code later, the existing company code will be left with the garbage of all the data of this new business since, the type of business is different. So all the vendors, customers, materials, created for maintenance will be left as garbage in existing company code. Also PM module is not required for the Transport business, it is required for maintenance and repairs business.

My only concern is until the maintenance business becomes a separate legal entity how I can combine the financial statements of both these company codes into one. Because externally it is still a single business until it becomes a separate entity.

Regards,

Satan