Balance carryforward consolidation unit with equity method

Hi experts,
One question in relation with balance carryforward in SEM BCS 4.0. Do Additional finantial data of Consolidation unit with equity method must be carried forward to following periods?
I have a problem with AFD validation for equity method.
Best regards,
Beatriz B.

Thanks Halim,
I am not using consolidation unit combination. It is only Legal Consolidataion. However, I have fixed the problem by changing the master data of consolidation unit. I have enabled FCEP.
I have one more question. Do I have to run Consolidation Group Change Task also when I am switching from Equity method to Purchase method for Associate companies?
When I am changing from Equity to Purchase method all the previous C/I postings are reversed, but the profit of Associates which was already accounted by holding company in the previous period is transfered to Net Income-Method Change and second effect is given to Goodwill (GW is enhanced).
Hence, post change of method, when I upload TB of Associate, the Net Income is not eliminated to the extent of the profit Adjusted on account of Method change.
Please suggest,
Thanks,
USR

Similar Messages

I/U Elim with Equity Method

Dear BCS SDNers,
I have an issue regarding I/U Eliminations with Equity method companies.
If I remember correctly in my other projects (I am not able to check it now), the system is supposed to look at the accounting techniques to determine if it has to post or not the I/U Elimination.
Example :
A transaction involving Company 1 (Purchase method) with Partner 2 (Equity method) must not be included in the elimination process. Thus, the system is enough intelligent to skip this transaction.
Do you agree with me ?
If it is true, I have an issue, because it is not working in my case : it tries to eliminate this transaction... Did I forget something ?
I have re-checked everything, including SAP notes and the BCS doc, but I don't find...
Thanks in advance for your help.
Regards,
Thibaud

Hi Dan,
Your answer is very relevant.
But I still have a small doubt....
When I look to SAP documentation, there is nothing about that !
Anyway, thanks for your help.
I'll maybe ask SAP for a confirmation
Regards,
Thibaud

First conso with Equity method and LDT

Hi Gurus,
I have to perform a first consolidation with legacy data transfer for a Company consolidated at Equity.
This company (Let's say company A), at the date of first conso in SEM-BCS, has accumulated some Retained Earnings. Company A is owned by company B.
Company A :
Capital : -100
RE : -20
Accumulated RE : -50
Companty B :
Historical Investment : 120
If I look to the SAP doc and perform the fisrt conso in the system, BCS will only adjust the investment with the GW entry I make in the AFD. That's it.
But I also need to have an adjustement of the investment with the accumulated RE (which is in fact the Equity method postings of the prior periods that were done out of BCS) !!
NB : Equity Holding adjustments are read from RFD.
How the system can perform this historical adjustment ? Why is the system not able to do the same as for Purchase with legacy data transfer ?
many thanks for your help
regards,
Thibaud

Hi all,
Has anyone experienced this topic ?
Your help would be appreciated
Regards,
Thibaud

SEM-BCS how to make Consolidation Unit with Business Area

Hi all,
I am newbie in SEM-BCS and implementing BW-based BCS. Our situation is as follows.
Situation
- we have 7 companies worldwide and 4 different Business areas.
   Every company consists of at least two business areas in R/3.
- we have sales transaction in FI among companies.
requirement
- we need consolidated F/S in whole consolidation group and consolidated F/S in Business area level.
actually, we are planning to make the consolidation unit in company level.
Do we have to break down consolidation unit in business area? or just breakdown category solves our requirement?
If we have sales transaction even between business areas within certain company, do we have to make it in business area?

Following are the answer to your questions
Q:   What to do for using this cube in BCS?
A:    Add the business area to the cube. Generate the data basis and the business area gets added to all ODS/DSO , virtual cube.
Suggestion: To avoid deleting the Profit center cube, since you can reduce the complication.
Q:   Is it the problem about DATA BASIS Role?
A:   No. Assign the role of subassignment or consolidation unit as needed. If you are giving the role of consolidation unit to business area, you need to insert the char Partner business area also in the cube.
Q:   Is there some materials to solve this situation?
A:   Refer the matrix consolidation material in help.sap.com from BCS portion. As per SAP literature any relevant object can be made as second consolidation unit such as business area, functional area etc. Dont fear. Once you start it the issue will be resolved in few days.
Expected complication:
If you are going to make business area as subassignment then it is simple. But if you are making business area as Consolidation unit, go for partner business area in cube.
Ensure with your BI consultant that all BCS messages are addressed in BI infoobject for business area specifically.
Things can get complicated only if we allow for it get complicated. But you are doing great.. Keep posted.. Good luck.!!!..

BCS how to change the accounting technique of consolidation unit.

Hi, expert,
    We have a C/I method with accounting technique 'equity method', but when we assign the method to consolidation unit, the value of 'accounting technique' of consolidation unit is 3 (mutul stock method ), not 2 (equity method).
   How to crrect this.
I really appreciate your input on this matter
Thanks.

Thanks, Dan and Collet
   In my compandy hierarchy, each consolidation unit with the method is 3, not 2. include inheritance and not inheritance.
   When I double click one of consolidation unit. a maintain window display, I change accounting technique in this window, the syste issue another message UGMD016 ('The value 2 is invalid for characteristic METHOD'
                                                                     Characteristic METHOD has no master record with the value 2.
                                                                     (The non-existing value was stored as an attribute for characteristic and value .)
   This mean that the method is incorrect?
   But the accounting technqiue of the method is '2 equity method';

Equity method - First cons

There is a requirement that
as per local GAAP , units following equity method
( non consolidated units ) , should identify ( not post )
the goodwill / negative Goodwill which arise out of First
consolidation. as notes to Financial statements.
However during subsequent cons I can post equity holding
adjustments to this investment.
But the problem is system is posting the euity adjustments
as susbsequent consolidation.
So , I want to avoid the First consolidation , but still
be able to post subsequent consolidation.
Please share with me any best posiible way out.

we used the statistical investment and equity items in AFD.
If we use statistical items , then system does First
consolidation. It will not post any document in FC.
However equity adjustments postings will happen as per the
investment account given in equity method postings.

Consolidation Unit Clearing account for Income / Expenses elimination

Hi,
When companys are leaving the group, where the parent comapany has some income/expenses elimination transactions with the company leaving, there is still balance on the parent company on consolidation unit clearing account with the company leaving the group as partener company.
This shows incorrectely the retained earning for the parent company for posting leve20 when balances on consolidation unit clearing account is not included. Please advise.
We are not unsing COI but we are using Group change functionalities when company leaves the grop.
Furthere, in all auto elimination document type for Balance Sheet Elimination and Income statement elimination, we have assigned same consolidation unit clearing account. Please advise.
Best Regards,
UR

When viewing the results using the standard reporting mode I suspect the balances are okay. Please clarify in detail how the data is being analyzed so we may better assist.

Consolidation as per Equity Method_SEM-BCS

Hi Experts,
I am doing consolidation as per Equity Method. I am using Additional financial data for Investments and Equity.
However, when I execute C/I task I get an error message saying that Investments are missing for activity 01 in Investee unit combination. I have already entered Investment and Equity and also done the matching of Investment and Equity.
Also it is calculating one more activities as step acquisition. However no document is posted either for First Consolidation or Step Acquisition.
Can you please suggest !

Thanks Halim,
I am not using consolidation unit combination. It is only Legal Consolidataion. However, I have fixed the problem by changing the master data of consolidation unit. I have enabled FCEP.
I have one more question. Do I have to run Consolidation Group Change Task also when I am switching from Equity method to Purchase method for Associate companies?
When I am changing from Equity to Purchase method all the previous C/I postings are reversed, but the profit of Associates which was already accounted by holding company in the previous period is transfered to Net Income-Method Change and second effect is given to Goodwill (GW is enhanced).
Hence, post change of method, when I upload TB of Associate, the Net Income is not eliminated to the extent of the profit Adjusted on account of Method change.
Please suggest,
Thanks,
USR

COI Equity method...

Have scenario where A is has invested in 45% in B. It is consolidated under equity method. But both are group companies in the SAP instance and both company financial data is brought to BCS cube
when I read the equity statement rule following is mentioned in help.sap.com
If an investee unit is consolidated using the equity method, then its individual financial statement data is not included in the consolidated financial statements
Does this means that we should not consolidated B in the consolidated financial statement and ignore it in reporting? But company B is also the same SAP system..?
What is the step to be followed in consolidation in this regard...
Help /Answers appreciated..

Hi Venkat,
If we are talking about associated companies (equity method), not about joint ventures (proprtional method), then it's really one-line consolidation.
You don't need all FS from the associated company. And very often one simply doesn't have it.
Actually, there is one entry that should be done in each period for equity method accounted companies:
Group's or mother company entries:
Dr Investments in associated companies
Cr Share of profit from associated companies.
In BCS you may do it in two ways:
1. Handle associated companies as a part of the group, entering for those companies only equity item amounts that trigger automatic recalculation of the Group's net profit (consequitive consolidation).
2. Do not have those companies in the Group's hierarchy, do not maintain any data input from them. Just make a manual entry I mentioned earlier. In this case you do not need equity method settings. Everything is done manually. Sometimes it's preferred method. You put into the system the figures really provided by the associate, not calculated amount that may not be equal to those figures provided by associate later.

16a equity method,the investment is loss the positon came to zero

Hi,experts
We have trouble when our investment is came to zero,with equity method.
In China GAAP ,The real business backgroud is our investment is equity method,not cost
method.
every year we will get the corporation 's profit or loss .And we shall
count it decrease or increase at our hold percent.
If we investment 10000,and the company
profit 1000 ,our holding is 20% the we will increase our positon by 200
If loss ,then we decrease 200 position.
Use tpm12,we shall see the position now is 10000 +- 200.
We can't use sell and buy because there is not real sell or buy happend
and no bank pay or received at all.
We use FWZZ add the condition set up by our consultant just as bonus condition type.
and the position change category should be different (1005),
if the reduse amount is not as the position,there is not problem.
But when it is reduce the same amount as the position .Errors cames out.
When saved it .There will be no flow came out at all.
SAP SUPPORT TOLD :you need to use FTR_CREATE and a flow like se2000 sell it to finish the business.
Did you know the more standard mehthod of euqity method yearly euqity increase ore decrease?
Thanks and best regards.

Not exactly sure what is being accomplished, but your problem lies with the setData method (as stated by the trace).
When calling the method, you are doing myUse.setData(21, c) or myUse.setData(248, c). In both cases, you are passing two arguments (21 and c or 248 and c). However, the method setData() in the UseDataClass is not setup to accept any arguements. You need to do one of the following:
1) if you want to use the two numbers being passed, you need to change the method to be something like:
//up top:
myUse.setData(21,c);
//within the UseDataClass class:
setData(int a, int b)
//then do whatever you want to with the a and b...for instance:
t = a;
co = b;
//now t =21 and co = c
2) if you don't want to use any of the numbers being passed, then don't pass them:
//up top:
myUse.setData();
//you can just leave the setData() method alone since it is already setup to work without arguements
3) If you want to switch between the two methods (ie - sometimes pass arguements and sometimes not), you can create another method like the one in the first example.
here's what I mean:
class UseDataClass
public void setData()
//do what ever you want here without worrying about any values...
public void setData(int a, int b)
//now use the a and b values...
You could then do either:
myUse.setData();
or
myUse.setData(21, c);

Reparenting - of equity consolidated units upward in hierarchy

Hi experts,
We're doing reparenting of a cons unit (upward in a hierarchy) : The scenario is explained as under:
There are two hierarchies in a single version. The consolidation units falling under both hierarchies are same. Difference being - H1 is a flat hierarchy with parent A and all other as subsidiaries (100% owned and purchase method consolidated)
H2: Has multiple levels (conso groups) with overall parent A. All other companies are equity consolidated (ofcourse parents in each group is assigned purchase method, ownership is again 100% of all units)
In H2: we're doing a reparenting. From a lower conso group(cons group CGB with parent B) a unit(unit C) is moving to the top conso group(cons group CGA with parent A). The master data changes in both conso groups have been made(period/yr of divestiture and period/yr of acquisition set in the sender group and receiver group respectively; added the cons unit C in CGA group).
The organizational change logic is being used.
After the conso group change task and COI task are run, in the report there is a difference in the equity PY surplus at level A - overall parent) in both hierarchies.
There are two equity pickups - A/c1 and A/c2
The opening balances on these accounts are getting reversed in the divestiture period in old parent.
Whereas the PY - RE(Previous year - Retained earnings) account is not getting reversed (in itself) but the balance is being posted to COI:Clearing item (COI clearing item defined in COI settings->Appropriation of retained earnings -> Net income tab)
1. The client doesnt want PY equity surplus to change. In H1 , it is not changing (not reversing) whereas, in H2 it is reversing in the same accounts - balancing to zero.
2. They'd ideally want the PY surplus to goto the COI clearing.
They'd like the system to do this entry and not fix this by doing a manual PL30 journal.
Can you tell me if there is anything in the configuration of COI that can fix this issue?
Why is the system behaving differently for A/c1 (and A/c2)and PY - RE account?
Another thing, when I look at the COI documents posted in the H2 hierarchy, I see the A/c1 and A/c2 (scopes of data for equity method) as double the amount in the new cons group (equity holdings data) whereas in the H1 (where only a total transfer doc is posted) I see the accounts (as part of equity data) with the actual value.
Thanks, AJ
Edited by: A J on Nov 17, 2009 3:17 PM

Thanks Dan.
Appreciate if you can help on the below points as well.
1. As part of divestiture/transfer postings: The system is reversing some Previous Year(PY) equity accounts into themselves. How can we get the system to eliminate them by posting to COI Clearing account. Basically, we dont want the PY accounts to be touched?
For the Retained earnings - PY account, the system is actually posting to COI clearing account.
These PY accounts are part of some scopes for equitization.
Is there any link between the "balance carry forward" - list of items table and the divestiture postings?
Does the system check this table while posting/reversing the equity(PY) accounts?
2. I want to understand the sequence in which the system posts the documents at the old parent and new parent (group) level.
The same activity number is there for Total Divestiture, total transfer documents posted at new parent level and total divestiture document posted at old parent level.
Does the system follow bottom up approach? Thereby creating total divestiture document at old parent level.
Followed by documents at upper level (new parent level)
Also , at the upper level(new parent level), does it post documents in the way they are shown in the log? (We havent changed the default sequence maintained in UCWB - COI settings). so it will post first consolidation doc, followed by total divestiture, followed by total transfer docs at the new parent level?
Is this the reason for the double value being posted at new parent for equity holding data?
Will studying the statistical items (corresponding to eliminated equity holding items) be relevant here to understand why at upper level there is double the value being posted by system?
Thanks.

Total transfer of equity consolidated unit using organizational change

Hi,
We have a scenario where we are doing total transfer of an equity consolidated unit (100% owned) from one company(old parent) to another (new parent)
The new parent is one level above the old parent in the hierarchy.
We've used organizational change logic and have set the divestiture dates/flag in the sender consolidation group and accordingly first consolidation dates/flag/OC number in the receiver consolidation group.
The investment AFD is submitted with "total transfer" with OC number.
There are multiple scopes of reported data for equity method in our configuration.
Each scope(equity pickup) is inturn created by reclassifying several equity accounts to a single BCS only item(the scope item)
When we run COI, the system posts one total divestiture document at the old conso group (where old parent is situtated) and posts a first consolidation, total divestiture, total transfer documents at the new conso group level (which is one level above the sender conso group)
The total divestiture document at upper level is reversing the divestiture document posted at old parent.
The first consolidation document jas only statistical items posted in it.
The real document to check is the "Totals transfer document" which actually reads the investment (at old parent and new parent) , the equity holdings adjustment data(the scope items) and adjusts the investment in subs at new parent with offset going to divestiture account but of double the value than the expected scope vlaue.
Issues faced:
Q1. Consolidation group change tasks (at PL02, 12, 22) are not posting any documents. Is there an issue? Since I am using these tasks for the first time and dont know if this is possible.
Q2. The total transfer document is reading the equity holdings data as double the expected value( for each of the scopes of equity method). What could be the possible reason? How to fix this?
Q3. I would appreciate if someone can clarify what kind of postings the system makes as part of divestiture/transfer in case of equity consolidated unit transfer.
Please help!
Thanks,
AJ

Thanks Dan.
Appreciate if you can help on the below points as well.
1. As part of divestiture/transfer postings: The system is reversing some Previous Year(PY) equity accounts into themselves. How can we get the system to eliminate them by posting to COI Clearing account. Basically, we dont want the PY accounts to be touched?
For the Retained earnings - PY account, the system is actually posting to COI clearing account.
These PY accounts are part of some scopes for equitization.
Is there any link between the "balance carry forward" - list of items table and the divestiture postings?
Does the system check this table while posting/reversing the equity(PY) accounts?
2. I want to understand the sequence in which the system posts the documents at the old parent and new parent (group) level.
The same activity number is there for Total Divestiture, total transfer documents posted at new parent level and total divestiture document posted at old parent level.
Does the system follow bottom up approach? Thereby creating total divestiture document at old parent level.
Followed by documents at upper level (new parent level)
Also , at the upper level(new parent level), does it post documents in the way they are shown in the log? (We havent changed the default sequence maintained in UCWB - COI settings). so it will post first consolidation doc, followed by total divestiture, followed by total transfer docs at the new parent level?
Is this the reason for the double value being posted at new parent for equity holding data?
Will studying the statistical items (corresponding to eliminated equity holding items) be relevant here to understand why at upper level there is double the value being posted by system?
Thanks.

First Consolidation purchase method subsequent consoli.. in Equity method

I have a scenario where the business wants to eliminate investments and equity postings. So investment should be offset against equity.(like in Purchase method). After the client also wants the Net income from the investee to be rolled into parent .(like in equity method offset against investment and offset to a P&L account.). Can some body give me a suggestion how to configure this kind of situation.Is this scenario reasonable.
Also all subs are 100% owned.So no minority or goodwill activities are taking place. Any help is appreciated.
Thanks.
Sanjay

The earnings of the subsidiaries is automatically included in the cons group results.
However, I have seen this request on more than one occasion and have dealt with it differently depending on the reason for this requirement.
For determining the value of a parent, including investment in subs, the best approach IMHO is to create a separate cons group hierarchy exactly the same as the legal or standard hierarchy, with different group names (we used the first letter L for each group in the legal hierarchy and first letter E for each group in the "equity" hierarchy). In the equity hierarchy each unit is assigned the equity method except for the parent company of each group. Then COI is executed for this hierarchy. In the equity hierarchy, all the earnings is posted to the parent. Reports may be written for this hierarchy to achieve the required results.

3EC_CS_1A ECCS Consolidation DataSource does not extract Equity Method

In note 370048/588176 - Difference between database list and group reports.
For Posting level "00" The note says "Not included are Equity method or
Mutual stock method"(Tcode - CXM1).
In the ECC system they have a way to turn this function off to report on this Equity method consolidation units. Is there a work around for the BW extraction as well to extract the equity method consolidation units into BW?
Has anyone created Generic extractors on the ECMCT table?
Best Regards, Gargi

Posting the message again!

Equity Method Consolidation

Dear All,
How to define equity method consolidation rules in BPC 7.5 as per Indian GAAP.
Regards,
Kalpik

Thanks Halim,
I am not using consolidation unit combination. It is only Legal Consolidataion. However, I have fixed the problem by changing the master data of consolidation unit. I have enabled FCEP.
I have one more question. Do I have to run Consolidation Group Change Task also when I am switching from Equity method to Purchase method for Associate companies?
When I am changing from Equity to Purchase method all the previous C/I postings are reversed, but the profit of Associates which was already accounted by holding company in the previous period is transfered to Net Income-Method Change and second effect is given to Goodwill (GW is enhanced).
Hence, post change of method, when I upload TB of Associate, the Net Income is not eliminated to the extent of the profit Adjusted on account of Method change.
Please suggest,
Thanks,
USR

Balance carryforward consolidation unit with equity method

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