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

[Former Member]

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

[Former Member · Accepted solution]

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.

[Former Member · Accepted solution]

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

[Former Member]

Thanks for your help!

[Former Member]

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

[former_member188826]

It is available from the subsequent release ECC5 onwards.

[former_member188826]

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

[Former Member]

Thank you very much for your feedback, it is very helpful to me.

One more question, is there any pros./cons. about using parallel ledger? Is there anything I need to pay attention when I configure it?

BTW, points are already given.

Thanks.

Eric

[former_member188826]

With the New GL, that is the only way. We may have to accept whatever be the pros and cons. I am sure that will have more sophistication.

[Former Member]

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