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Former Member

Controlling area set up for company codes with different fiscal year varian

Hi Guru:

Business requirement:

One global company with multiple company codes want to view management reports in one controlling area and have the capability to allocate cost across cost centers that are assigned to different company codes. However the company codes can have different fiscal years, some are on "July to June" (US and group reporting), and some are on calendar year basis (some overseas entities).

Question:

1. If we desided to set up all company codes and the controlling area with "July to June" fiscal year, so that all company codes can be assigned to the same controlling area. How to meet legal/statutory reporting (calendar year) requirements for those overseas subsidiaries? We are on ECC 6.0 with New GL.

2. Any limitations, pros and cons.

Thanks.

Eric

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5 Answers

  • Best Answer
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    Former Member
    Oct 11, 2007 at 03:28 PM

    Can you have 2 Controlling Areas and a single Op Concern

    Then you could have one CA with one rule for calendar and another for the other rule.

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    • Former Member

      Hi Mark:

      Thanks for the reply.

      But I think you can assign multiple controlling areas to one operating concern, only when they have same fiscal year.

      Thanks.

      Eric

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    Former Member
    Oct 11, 2007 at 03:32 PM

    You can assign one company to several company codes but the following you should note

    The operative fiscal year variants in the company codes must match the fiscal year variants in the controlling area.

    You should execute period-end closing in Controlling for all company codes at the same time. Separate period-end closing for each company code would be too time-consuming.

    You can only execute period-end closing for a shared controlling area once closing is complete in Financial Accounting.

    If you only use one controlling area, you can only use one operating concern.

    You can only display profit center allocations in a controlling area.

    You can only use transfer prices within a controlling area.

    SAP recommends a 1:n relationship between controlling area and company code for the following situations:

    Cross-company code transactions that MUST be processed in a controlling area, for example, production in an associate plant, special cases of intercompany processing.

    Cross-company code CO postings that can be displayed in the reconciliation ledger, such as assessments, capitalization of internal activity in Asset Accounting, activity allocation.

    Representation of group costing

    Use of Profit Center Accounting and transfer prices

    Multilevel Product Cost Management across company codes

    See this link i took from this link only

    http://help.sap.com/erp2005_ehp_02/helpdata/en/08/513f4b43b511d182b30000e829fbfe/frameset.htm

    Radha

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  • Oct 11, 2007 at 03:45 PM

    Refer to Oss Note 779251. This is handled by additional ledgers.

    Advantages of the ledger solution are:

    You maintain a separate ledger for every accounting principle

    You can use different fiscal year variants in this scenario

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    Former Member
    Oct 12, 2007 at 08:57 AM

    A very small query to the Gurus

    The New GL - is it available in 4.6c or 4.7 or 4.7EE(Enterprise Edition)

    Regards,

    Sudhakar

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    Former Member
    Oct 12, 2007 at 11:51 AM

    Thanks for your help!

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