Equity Method data collection

[Former Member]

If the actual equity transaction details such as netincome, dividend, Bonus is captured in the source system and if we are trying to load again thru AFD will it not duplicate the entries.

Or how different is the data cpatured in Totals cube and AFD could be....

Why exactly we have to load thru AFD , than routing the Equity adjustment data thru 'Totals cube'.

Please share your thoughts..

[dan_sullivan · Accepted solution]

Typically the equity is a combination of totals and AFD. As you mention, the income, dividends and bonus, etc. are sourced from the totals (G/L). The increases or decreases in capital are entered via AFD.

[Former Member · Accepted solution]

Hi Dan,

Incase of Equity method there is no elimination( of Investment with Equity) . Hence there is need only to update the investment value with Investment income, dividend etc.

1. If I can identify the income, dividend account for adjustment from Total's records what should I at all modify by loading AFD.

2. If My investment account is updated in source system and total cube is updated by latest changes in investment value, what is the need to load by AFD again.

If the changes to investment value is routed thru Total cube's final balance for account , what is the necessity to load the changed thru AFD.

I cannot visulize the scenario.. please clarify...thanks a ton.

[dan_sullivan · Accepted solution]

1. There is no need to load any AFD for income and dividends as these are determined from totals per items defined in the location of values for income, dividends.

2. If the investment is updated due to increase in capital or reduction of capital a corresponding AFD entry is needed. The investment account and any change in ownership is entered for the parent company and the equity change is entered for the investee company.

If the location of values for investment is to be the totals, then it is necessary to create separate investment accounts or transaction types (movement types) to diferentiate first consolidation from increase in capital, reduction in capital, partial transfer, total transfer, partial divestiture, total divestiture, and step acquisition.

[Former Member · Accepted solution]

Thanks Dan,

As regards to the point 2, shall the changes in investment, equity not coming from source system since

everyincrease /decrease is part of source system trial balance.

For example the Company 1, has increased the investment in Company 2.

The increase in investment has to be reflected in Company 1 trial balance:

'Investment account' Dr.

Cash/Bank Cr.

The increase in share captial is accounted by Company B with following entries

Cash/Bank Account Dr.

Share Capital Account Cr.

Now if the entries has happened in source system, why it is seperately updated in AFD. Will it not duplicate the entries?

or is it for purpose of of capture the investor/investee fields.

Please calrify...

[dan_sullivan · Accepted solution]

The AFD entry is not included in the totals records and thus there is no double counting of the investment change. The AFD entry is required because this triggers, for purchase method cons units, the elimination of the investment and corresponding equity.

[Former Member · Accepted solution]

Thanks dan.

Is the AFD entries are done to populate the investor /investee fields which is not normally filled in when the data received from ECC? I think investor /investee fileds are required for consolidation function.

[dan_sullivan · Accepted solution]

Investor is, by default, the company or cons unit.

The investee is typically mapped from trading partner.

[Former Member · Accepted solution]

Thanks. I understand the terminlogy.

Does the is investor /investee mapping is done in ECC data or is it handled in AFD loading.

[dan_sullivan · Accepted solution]

Investor is, by default, the company or cons unit wich for the totals records comes from ECC data collection and/or BCS entries.

The investee is typically mapped from trading partner for ECC data collection.

When you post the AFD entry you are required to choose or enter the investor company for investments and the investee for the equity. Try it and you should better understand.

[Former Member]

hi gokul

pls see the below urls

http://help.sap.com/SCENARIOS_BUS2005/helpdata/EN/33/A703F210254B8884F9E1E39DB83A15/content.htm

http://help.sap.com/saphelp_sem40bcs/helpdata/en/c0/f4693701e08332e10000009b38f8cf/content.htm

www.sap.com/usa/solutions/business-suite/erp/financials/pdf/BWP_Financial_Consolidation.pdf

thanks

karthik