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Former Member

Consolidation of books without implementing SAP BPC

Hello Experts

I have a question regarding the consolidation and elimination of inter company profits without implementing SAP BPC or any other consolidation tool. We are implementing SAP ECC 6.0. I have read in several forums that it is possible through creating company id for all the company codes and defining company codes(who do inter company transactions) as customer and vendors with trading partner assignment in the respective master data.

Is this possible? if yes, Can you please explain with an example?

I will greatly appreciate your responses.

Thanks

AL

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4 Answers

  • Sep 18, 2014 at 08:23 AM

    You have various options:

    Option 1 : Use group chart of accounts, assign group chart of accounts in operating chart of account in OB13 and use the group chart of account GL in each of the respective GL accounts of operating chart of accounts

    Option 2: Use EC-CS in ECC

    Option 3: SEM BW Based Consolidation (However, this may be phased out at some point)

    Option 4. Use BPC (If you have enough money)

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    Former Member
    Sep 18, 2014 at 04:09 PM

    Hi AL

    I have done a similar set up earlier for one of the project that I implemented.

    Created a elimination company code and IFRS company code apart from the main company code.

    Created some custom programs to post the elimination entries in the elimination company code on daily basis. Identify IC and Wholesale/Retail company transactions and post elimination entries in another company code.

    To explain with an example, suppose say your company does wholesale/brand partner and retail business. It owns both of them. When you sell from your wholesale company to retail company, from the group perspective it is not a final sale. Identify such transactions on a daily basis and post reversal entries in the elimination company code. Track your inventory at the Retail company level to see what sale entries could be retained. Similarlly for all Inter company transactions, use the trading partner in all the transactions and using a lookup table, post the elimination/reversal entries in the elimination company code.

    I used the same Chart of accounts and no new GL accounts. Using financial statements, combine main company code and elimination company code to get the right results. Use business/trading partner concept to identify any further eliminations.

    Also use the group chart of accounts and assing a group GL to your operational CoA GLs. Download the financial statements combined with Group GLs, users can do consolidation outside system manually. This is cost effective and applicable in some scenarios considering the volume of operations and complexity of eliminations and consolidation.

    You should brainstorm a lot to check the design meets all your elimination and consoldiation functionalities.

    Thanks,

    Sekhar

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  • Sep 18, 2014 at 08:16 AM

    neither interco nor the the rest of consolidation require BPC, but to run it in ECC you may have to turn on the switches to use the latest functionality/code/notes.

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    Former Member
    Sep 18, 2014 at 04:01 PM

    Thanks Ravi/Gregory for your effort in giving your valuable inputs. My company is undergoing new implementation and any consolidation tool is not in scope. As far as Chart of accounts is concerned, we are thinking to have one common operating chart of accounts for all domestic and foreign subsidiaries. In that case, group coa do not come into picture(correct me if I am wrong here). What would be solution to the consolidation issue and inter company eliminations in that case?

    Best regards

    AL

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