New acquistion for ownership additions

[former_member243837]

Our client has bought of new companies and we need to integrate and consolidate them..

We are already maintaining ownership table for consolidation for existing fully and partially owned companies.

1. What are the steps to be taken to integrate the newly owned companies opening  balances in to BPC. We are in netweaver version 10.0 but all company code balances are loaded to BW directly from external sources and from there loaded to BPC.

2.If we maintain the ownership table in the middle of the year for newly acquired companies during aquisition, will it impact any previous period.

3. How to treat the previous period income of current year for these companies in consolidation, since the acquisition happened during middle of the year.

4. If the entity hierarchy is updated for current aquisition, will it impact previous period data. If so how to ensure it is not impacted.

5. What are the other places impact to be considered while adding the aquired companies.

Appreciate your inputs

[former_member243837 · Accepted solution]

Please share your ideas/inputs

[former_member225135 · Accepted solution]

Hi,

I will try to answer your queries. Below are my response.

1. What are the steps to be taken to integrate the newly owned companies opening  balances in to BPC. We are in netweaver version 10.0 but all company code balances are loaded to BW directly from external sources and from there loaded to BPC.- For newly owned companies, you have to maintain the opening balance in group currency (scope- s_none and currency - group currency) if you doing consolidation at historical values, otherwise not required to maintain opening balance

2.If we maintain the ownership table in the middle of the year for newly acquired companies during aquisition, will it impact any previous period.- No. Ownership is maintain periodically, so anything maintained in middle of the year will not have any impact on previous period

3. How to treat the previous period income of current year for these companies in consolidation, since the acquisition happened during middle of the year. - This is the case of pre-acquisition reserves, ideally what i do is i create a new flow for this reserves (which i keep out of my flow hierarchy) and through business rules, i use them for calculation of goodwill/ capital reserve and post them in a different audit trail (which is in hierarchy)

4. If the entity hierarchy is updated for current aquisition, will it impact previous period data. If so how to ensure it is not impacted. - It will not have any impact till the entity don't have any previous period data. if the entity have previous year data, then you have to use time based hierarchy in entity dimension

5. What are the other places impact to be considered while adding the aquired companies.

- 1) if you are not maintaining rates at global level, then add new entity in RATE ENTITY dimension

   2) Add the currency of new entity in Input Currency Dimension

   3) assign entity in proper entity hierarchy.

Regards,

Rahul

[former_member243837 · Accepted solution]

Thanks Rahul. Appreciate all your inputs.