Consolidation COI

[Former Member]

I have Company A holds 75% in company B.

Company B has 100% investment in company B1,B2,B3 and 75% investment in B4.

All are consolidated using purchase method.

Company B wants to enter the COI entires manually ifor its invesments in B1 to B4.

In the same BCS system, A want to consolidate Company B's investment using automatic/predefined execution method.

Question 1. In one BCS system, can some consolidation units use automatic calculation execution of COI and some enter the COI enties manually? What are the pros and cons. What are the impacts or things to be taken care off..

Question2: if the COI is not implemented in the first stage, what are the pros and cons of implementing at later stage..

Appreciate your inputs and points will be rewarded.

[dan_sullivan · Accepted solution]

1) If A wants to have automatic COI for its investment in B only, and B want to manually enter COI entries for B1-4, it may be possible. To try this, do not assign accounting method to B1-4 in the master data. This may or may not work.

However, why manually post when the system will do it automatically?

2) It is not difficult to implement COI after-the-fact, as long as the databasis and cons area are configure to use COI from the start.

[Former Member]

Hello,

I answer only question2, which is worth to answer:

Configure the entire system functionalities (including CoI) in one go (as if you want to use all of them including CoI). Then you may execute every month all the tasks such as RE & Item substitution, Eliminations except CoI which may be postponed (till the required period) vide tcode CX1X u2013 tab Assignments u2013 field - year & period of first consolation. This period can be set up with any future period including year. Once that period is reached, system carries out CoI calculations, based on (among other things) CI activity-01.

This was not possible (particularly for consolidation of company codes with integrated method of data transfer) prior to SAP Note # 1122922 effective Dec 2007.

In short, start of CoI can be posponed to future period (including future year) however a special attention is required for correct computation of goodwill / capital reserve at the time of 1st consolidation.

Cheers

Ambadas