SAP FICO organization Strucure

[Former Member]

Hello Experts,

am working for rollout project. currently XYZ company operating globally.

and XYZ company is starting new busines in India where they are going to sell the FInished goods.

Now to prepare organization structure there will be one company code

the doubt is currently XYZ company all the company codes is having fiscal year from July to June

and they are using special purpose Ledger.

for indian company code they have to draw Balance sheet and PnL from April to March.

XYZ company codes to draw balance sheet and PnL from July to June

how we can design this?

can we create company code with fiscal year varaint from July to June and then in the special purpose ledger can create ledger and assign the fiscal year from April to March?

please advise

[Former Member]

Thank you Sayed,

Hello Experts can you please input advise..

[former_member206852]

Dear Math

As you said your parent company XYZ is using SPL. Can you please tell what they are using SPL for?

In your case, you will also have to use SPL functionality for reporting to XYZ. In that case your local company code will have FY variant K4 (Apr-Mar) and your Sp Purpose ledger will use Jul-Jun FY Variant for reporting to XYZ.

Hope it is clear to you.

Regards

Syed Zia Abbas

[Former Member]

Hello Abbas,

in Special purpose ledger we have

L0-Local direct posting ledger

LR-Local rollup ledger

can we use via virsa? company code will have Fiscal year from July to June and in SPL

L0 can we assing the FIscal year from April-June?

[former_member206852]

Dear Math

Yes you can do that as well.

Rgrds

Abbas

[Former Member]

Hi Syed,

If we are doing like this can you please tell me what are the implications at reporting level?

Thanks in advance,

Balaji Bharath N

[former_member206852]

Hi Balaji

There are no implication. Just that you are using separate ledgers for Special P Ledgers. So when your SPL is active, every transaction will post a separate SPL document that will post in the different period as per the FYV set for that SPL.

Regards

[Former Member]

Hello Sayed,

can we use the fiscal year varaint from July to June for indian company code? if so how can we draw Balance sheet and PnL

bcoz one of my client operating in diffrent countries, for indian company code they are using Fiscal year from Jan to Dec. is this possible?

[former_member206852]

Dear Math

Your query is bit confusing. At one place you say "...indian company code they have to draw Balance sheet and PnL from April to March." and now you are asking "can we use the fiscal year varaint from July to June for indian company code?"

See below explanation;

Group Reporting ( Your XYZ Company) = JULY to JUNE.

Indian Reporting (Say ABC Company)= APRIL to MARCH. Along with this, ABC will have special ledger with FYV Jul-Jun, so that every transaction (say for example in period 1) will post a document in April for standard ledger and additional document in July for special ledger.

So XYZ will use ABC's special ledger for reporting at global level.

Hope its clear to you.

Regards

Syed Zia Abbas

[Former Member]

Sayed,

Now the client wont want to use SPL for indian company code and they are asking what if we use Fiscal year varaint From July to June.

Can Indian company code use? will it satisfies Indain Legal requirement?

[former_member206852]

Dear Math

What you are talking about is the statutory decision. As per Indian Accounting standards, any company listed in Indian Stock exchange have to publish their financial statements. And these published FS will be April-March statements.

Now talking about global company having office in India (whether listed or not listed), generally they follow Global (IFRS) reporting standards, i.e. what is being followed by the group company. In that case what is feasible is that you can use main ledger with FYV Jul-Jun and SPL ledger as Apr-Mar.

Hope I am able to answer your query and clear your doubts?

Regards

Syed

[Former Member]

Hello Sayed,

Thanks.

the company is not listed in Indian stock exchange.

client is having operating in other countries.. now they are starting same business in India.

which will have new office, . for this scenario can we use FSV July to June`

now is must to use special purpose ledger for indian company code?

can we manage with FSV from  July to June?

[former_member206852]

Dear Math

Since it is not a listed company, you need to do only IFRS reporting. Hence go for FYV Jul-Jun and no need of using SPL.

Having said that, you need to decide on the process. Additionally you can opt for new GL functionality where you can have option of leading and non leading ledger.

Regards