Consolidation- Method changes

Hi
During method change whether the documents are posted automatically or manually? Further whether these documents needs to be inversted at the subsequent period ....

Since you'll switch to Equity method, then, yes, for Equity Adjustments.
Flags:
DABP - Switching immediately at the beginning period. RE for this period is not taken into account.
DAEP - RE is apportioned according to Purchase method. Then goes switch to Equity.
For the half month with Purhase method the Parent company earned its share of RE of divested company. So, IMHO, if you set DABP then calculate and add some more equity adjustment, IF DAEP - deduct some.
Of course, you should estimate the impact of switching methods on increase or decrease in your parent company net profit.

Similar Messages

SEM-BCS Preparation for Consolidation Group Changes

Hi All,
Is the task "Preparation for Consolidation Group Changes" only implemented when Consolidation of Investments has also been implemented?
Does "Preparation for Consolidation Group Changes" have any value on its own?
Any comments, replies or suggestions most welcome.

Hi,
I think that prep for cons group changes is independent (but supplementary to) from CoI.
See what is said in help:
"When in the middle of a fiscal year a consolidation unit is either acquired by a consolidation group (acquisition), divested from a consolidation group (divestiture), or changes its accounting technique (method change), the following data must be adjusted:
- Reported financial data
- Standardized financial data
- Consolidated data with posting level 20"
As you can see, not only consolidated data are to be changed, but also Standardized and Reported.
Moreover, as is seen above, changes of accounting technique will also trigger such activities.
So, my answers:
1. No
2. Yes.
Best regards,
Eugene

Different consolidation methods for one entity on one scenario

Dear experts,
How can I have different consolidation methods for one entity on one scenario?
One entity is going from proportionate to equity method. We would like to check variations due to this change.
Best regards,
Benoit

Hi Benoit,
How's things?
Managing the consolidation methods is based on the setup of your consolidation rules.
However, the first place that you should look is the Ownership Management. Select the parent of the entity that you work to process. In the screen, you will be able to see the available methods and the ownership. All these settings are related with the consolidation rules available in your application.
Regards,
Thanos
< spam signature link removed by moderator >

Amortization of Goodwill after method change

Hi all,
Need some help.
It is not really clear to me how does BCS take into account (equity-method)goodwill, and further more - amortization of goodwill, in/after Method Change activity.
Business scenario
Step 1.
Company "A" (equity - 1000 monetary units) is consolidated using equity method (25%) since Q4/2005 (parent company invested 4000 monetary units).
Step 2.
At the end of Q4/2006 method change takes place, equity to purchase (25% --> 51%).
Step 3.
At the end Q4/2007 parent company increases its ownership in company "A" (51% --> 60%).
Customizing
- COI method "METH1" utilizes equity method as an accounting technique. Acquisitions - group shares. Extraordinary amortization of goodwill
- COI method "METH2" utilizes purchase method as an accounting technique. Acquisitions - group shares. Ordinary amortization of goodwill, starting next Q, during 20 years.
Expected behavior
Step 1.
Equity-method goodwill arises (3750 monetary units).
Step 2.
"New" goodwill arises (3910 monetary units) from 26% (25% --> 51%).
Method changes from "METH1" to "METH2".
Next Q (Q1/2007) goodwill (3750 + 3910) is amortized - 95,75 (over 20 years, per Q).
Step 3.
"New" goodwill arises from 9% (51% --> 60%) and amortized next Q.
"Previous" is amortized.
Reality bites...
Step 1.
Equity-method goodwill arises (3750 monetary units).
Step 2.
"New" goodwill arises (3910 monetary units) from 26% (25% --> 51%).
Method changes from "METH1" to "METH2".
Next Q (Q1/2007) goodwill remains the same - goowdwill is not amortized.
Step 3.
"New" goodwill arises from 9% (51% --> 60%).
Only the newly arised goodwill (9%) is amortized next Q.
"Previous" is still not amortized.
Is it "standard" behavior?
What causes the difference in Steps 2 and 3?
Thanks in advance.

Hello Anton,
It's a complicated question that might be answered, IMHO, only by people who experienced the situation. Or by those who make some experiments in the system. Looks like there is nobody who have or did this. Sorry!

Consolidation Group Change and Consolidation Activity

Hi Experts,
I am new in SAP consolidation, I have a question regarding the difference between the function "consolidation group change" and "consolidation activity".
If I read in the sap library, these 2 functions are separated, but if I look at the content, I saw some similarity where the consolidation group change also included the investment activity like acquisition and divestiture.
Could anyone explain what are the difference between these 2 function?
When I was a user, if the group acquiered a new cons unit, I just add a new cons unit in the consolidation group hierarchy, assign consolidation method, add the additional financial data for the ownership percentage (activity = first consolidation), enter the reported financial data, run CI function and add one more column in my report painter.
When I read SAP library, I saw the "consolidation group change" function talking about the consolidation activity, now I wonder, what are the difference? What is the business scenario for using the "normal" CI activity and the "consolidation group change"? Please anyone advise. Thank you.
regards,

Normal C/I is a regular acquisition or divestiture. Cons Group Change could be movement of a company from one consolidation group to another (i.e., parent A sells company 1 to parent B). Or you own a company 20% and purchase an additional 60% and must switch accounting technique from Equity to Purchase. BCS will need to book Cons Group Change entries to account for the acct technique change. (In the past, at 20%, you would only book equity pickup, or equitization entries, to the parent as PL30 adjustments in the CoI. Now you must bring in the complete balances of the company due to purchase method of consolidation. BCS books consolidation-group specific adjustments to do this.)
Example....
"Normal C/I activity"
New company A needs be consolidated in Cons Group 1 starting in 03/2007. Add the company to the Cons Group master data, set the accounting technique, update additional financial data w/ activity First consolidation and load data for the new company. Run COI
"Cons Group Change"
Company A is consolidated in Cons Group 1, but starting in 06/2007 they will be sold to a parent in Cons Group 2. Update the Cons Group master data...setting company A to divest in 06/2007 from CG1 and to First Consolidate in CG2 starting in 06/2007. If using Org Change logic, create an Org Change number and define a sender/receiver relationship for CG1 --> CG2. In additional financial data, create a total transfer activity w/ org change logic from CG1 to CG2. Run Org Change task and BCS will zero out balance sheet related to company A in CG1 on posting level 02/12/22. In CG2, similar postings will book "catch up" entries in 06/2007 to bring full balance sheet into CG2. In CoI, company will be transferred to new parent.
Hopefully that makes sense...
Chris

ITunes is updated and works fine and I am able to log onto my account. When I go to purchase a song, I get the error message "Your Apple ID has been disabled". I've tried different methods: changing passwords, making a new account with another email addre

iTunes is updated and works fine and I am able to log onto my account. When I go to purchase a song, I get the error message "Your Apple ID has been disabled". I've tried different methods: changing passwords, making a new account with another email address, and emailing itunes tech support. I am curious as to how many others have been experiencing the same issue. When I googled the error, it seemed like it was happening extremely often with many people.
We all love their products, but they always come with a lot of issues and horrible customer support.
My apple Id is [email protected]

My Iphone 4 is telling me the same thing and I believe I figured out what the problem is. I had some fraudulent charges on my itunes account, so I call my bank and disputed the charges. Right after I did that, I started getting the message "Your apple ID has been disabled." I just realized today that the charges are not fraudulent, they are "in app purchases." One of my daughters downloaded the game Top Girl which is FREE, but in the game Top Girl you use money in the game to purchase things. It just so happens that the money you use to purchase things is real money MY Money!!!. My daughter thought she was using play money in the game and had no idea she was using real money. She spent $106.00 buying stuff. Now I have to call the bank and tell them to release the hold and pay Itunes. I'm hoping this solves the problem. Here is the link to learn how to disable "in app purchase" on your iphone or ipad.
http://www.ikidapps.com/2010/12/parents-avoid-accidental-app-purchases-how-to-tu rn-off-in-app-purchasing.html

Problem in testing UI add-on after login method changes

Dear All Experts/Gurus,
I have changed login method to a new one of a UI Add-on (because I just have SDK implementation version license). Using add-on identifier generator, I generate the add-on identifier string and put on the source code :
Public Sub GetApplication()
 Set oSboGuiApi = New SAPbouiCOM.SboGuiApi
 oSboGuiApi.Connect Command
 oSboGuiApi.AddonIdentifier = "4CC8B8ACE0273A61489738C94047855DE8768CDD37F64D4F11E82759A542BD545D5A6E4D50A39B9E9FB20FA944FF35C5B60FE779"
 Set SboApplication = oSboGuiApi.GetApplication
End Sub
After recompile it, I want to prove it by sending it to other friend's (work mate) PC/notebook with different license and hardware key. The error message when installing/starting the add-on is :
Runtime error '-7200 (ffffe3e0)':
Connection - Connection string doesn't match UI development work mode.
If the error happened, I just guessed that the login method change is success. I also read the SAP new license mechanism states that if the add-on is developed using SDK implementation version, it will only be able to install/use in the customer network PC and so on, ....etc.
The problem is that I am not fully sure if my guess is correct. I want to conduct some testing. I tried to request new temprary license with compatibility license is over within 2 days, but unsuccessful. Would you please to tell me if there is another way to prove/test that the add-on will be able to start after the compatibility license for add-on expires ?
I appreciate your answer so much. TIA
Rgds,

Hi Steve,
The AddOnIdentifier you obtain by selecting Development or Implementation options while creating the AddOnIdentifier depends on the license manager.
If you change the license manager to another machine or someone connected to a different license manager try to run your code you it will not work.
It is quite clear in the <a href="https://www.sdn.sap.comhttp://www.sdn.sap.comhttp://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/docs/library/uuid/13d67f3c-0e01-0010-eba2-cab13a5979c2">License Guide</a>:
Development License
This license is required for partners developing add-ons and the only license allowing distribution. In Development license, the license key is shared by all developers connected to the same License Service. The License Service allocates licenses on the basis of first-come, first-served.
Implementation License
This license is required for customers intending to develop small modifications or add-ons for their own use using only the UI API.
Add-ons developed under the Implementation license cannot run with a different License Service other than the one that was used for their development. The Implementation license does not allow
distribution to third-parties.
Regards
Trinidad

Consolidation group change: Balance sheet/income statement balance 14,560

Dear All,
While performing the consolidation group change task, system throws the error message :
Balance sheet/income statement balance 14,560,497.62- INR
Message no. UCD1011
Diagnosis
The document to be posted is not completely in balance.
Entries involving items of the balance sheet or the income statement must always have a zero balance to ensure that both the balance sheet and the income statement are balanced, respectively. This is not true in this case.
System Response
Entry cannot be posted.
Procedure
Correct the amounts for the balance sheet items and/or income statement items.
I have checked the COI Settings and not showing any error.
I have analysed the problem and found that system is not picking one FS item 107501 i.e Profit and Loss CY.
Can any one suggest me how to resolve this.
Thanks in advance.
G Vinod

Hi DAN,
i ll elaborate what i wanted to convey.
When we upload
1. TB Equal to ZERO
2. Net of BS items may not be equal to ZERO
Eg: if September 2010 (FY is April to Mar) file is being uploaded, the profit till the period September will be in PL items. so to the extent of profit element will be the difference in BS Items.
when u run profit calculation task, after data upload and validation, system will pass the following entry,
In case of Loss:
BS - Profit and loss - CY -           Dr
PL- Profit before MI         -          Cr
BS- BS Clearing A/c                     Cr
PL - PL Clearing A/c                    Dr
when u run PCC, system ll pick these two items *BS - Profit and loss - CY and BS- BS Clearing A/c. so obviously, posting cannot be done.
Please tell me if u still not understand
Thanks and Regards,
G Vinod

Update Contract Account in Background - BOR "ISUACCOUNT" Method "Change"

Hi Experts,
We are trying to update the "Dispatch Control" & "Alternative Bill Recipient" fields on the Contract Account in background.
We are using BOR - "ISUACCOUNT" and Method - "Change". The Method is unable to update the field values but not giving any error or exception.
Please sussest if someone has worked on such scenario before.
Thanks,
Ankur

Hi ,
Is it tiggering ur BADI implementation or not ? If yes then whats ur logic to update ?
regards
Prabhu

COI not reading equity data after consolidation group change

Dear experts,
I am running the consolidation of investments task for a new group that has been created on 012.2009. This new group CG2 is a child of an existing one CG1, and all the consolidation units that I have in 012.2009 under CG2 were in 012.2008 under the CG1.
In my new group GC2 all the units have as first consolidation period 012.2009 and on the parent group they have as last consolidation period 012.2009.
The problem is that when I run the COI task the system does not read the equity data for these consolidation units. I have both, equity data and Investment data defined to be read from additional financial data. The system reads correctly the investment data for the parent consolidation unit, and tries to eliminate it, but as it does not read the equity data of the child so it takes the value to consolidation a difference, that is incorrect.
Does anyone know what I am missing?
Thanks in advance.
Kind regards,
Sónia

Hi Sonia
i dont want to confuse you as Dan is guiding so far. let me put my thoughts some here.
CG1 12/2008
   - CU - A    Parent    12/2008 to 999/9999
   - CU- B                   12/2008 to 999/9999
   - CU - C                  12/2008 to 999/9999
do you have any another sub node for CU-B and CU-C? as B has investment in C
New Group: 12/2009
CG1
   - CU -A    12/08 to 999/9999
   - CU - B    12/08 to 12/9999
   - CU - C     12/08 to 12/2009
   CG2 group supose to be like this
CG1
    -CU-A
    -CU-B
       I--- CG2
             CU - B   Parent 12/09 to 999/9999
             CU - C                12/09 to 999/9999
     - CU-C
Now with above scenario you can invest in C from B and system will treate as FIRST CONSOLIDATION based on AFD Investments/Equity
How did you maintain B investments in C at CG1 12/08 level?
and or    as per Dan
You have to run PREP for CONSOLIDATION GROUP CHANGE task before CT task and after Elim Taks but before COI task
thx

Consolidation Method

Are there default consolidation methods in HFM? or do we have to write consolidation methods for every type of ownership?

thanks kelly.
where can i see the default consolidation methods? In the Ownership management screen the methods drop down appears blank in our installation. When the metadata was loaded ( Classic application) the consolidation method checkbox was not checked.
Does these consolidation method also handle equity/investment elimination automatically? I was given to understand that the equity pickup feature has been added by oracle only in their latest fusion release ( 11). we are using 9.3.1.

Consolidation methods

Dear HFM professionals,
Can somebody please kindly clarify a few questions regarding the automatic attribution of consolidation methods to nodes:
1) Is there any strict desription of the property "Control" in consolidation methods' properties? I failed to find one in admin or user guide. How exactly does this setting affect the attribution of consolidation methods to nodes? I do understand that when this property is set to "Full" then one of the condition of automatic attribution is that the control percent for the company through voting shares have to be 100%. However, all other options seem vague.
2) What is the purpose of Consol1, Consol2 and Consol3 accounts? It is stated in documentation that these are for consolidation methods applied. I can't figure out how it works.
3) Is it possible to write a rule for method attribution? If so, which subroutine shall contain it?
...or maybe you could just provide me with the solution on the specific task. What I'm trying to accomplish is the following: I have 2 types of nodes, where those with effective ownership percent (POWN) more than 50 have to be fully consolidated, whereas those with less ownership are considered associated companies and have to be consolidated through equity method. I would like to not use voting shares at all since this parameter is somehow redundant in my case. I just want the method to be attributed automatically to node on basis of the rule described.

Hi Benoit,
How's things?
Managing the consolidation methods is based on the setup of your consolidation rules.
However, the first place that you should look is the Ownership Management. Select the parent of the entity that you work to process. In the screen, you will be able to see the available methods and the ownership. All these settings are related with the consolidation rules available in your application.
Regards,
Thanos
< spam signature link removed by moderator >

LSMW Direct Input Method - Change Documents

Hello experts,
Could anyone please tell me how to enable the change documents(not just runtime) for LSMW direct Input method? There is also one option "Change Documents" in the last step of the process, will this write into any table that I see the changes later If I run the last step with selected this option? If yes, What are the application (customer master data, vendor master data, material master data, etc) specific tables?
Is there anyway that I could populate this method changes into the CDHDR & CHPOS tables?
SAP documenation on this:
To enter the data into the *corresponding database tables directly*, the system calls a number of function modules that execute any necessary checks. In case of errors, the direct input technique provides a restart mechanism
http://help.sap.com/erp2005_ehp_04/helpdata/EN/fa/097174543b11d1898e0000e8322d00/content.htm
Since this tool writing data into database tables directly skips the CDHDR & CDPOS recording..
Is there any other possible way for the complete change logs (change pointers???)? ( Or only table logging?)
Please share your experience on this.
Thanks,
Himadama

No response received..

Consolidation group change without ownership change

Hi All,
I require help in resolving this particular issue.
I have a company called 1000 which is having a subsidiary called 5010. both of the fall under the same consolidiation group called CG1.
Now I have run the First consolidation as of March 2009 and carry forwarded the balances in 2009.
Now 5010 has invested in 6 more companies and has become a holding company to them.
Now I thought of two options
1. To just create these 6 companies and enter the investment details for these companies and run the COI.
2. To create a new consolidation group called CG2. Put the 5010 company along with its 6 newly acquired subsidiaries under this consoldation group.
I ma exercising the option 2 by creating a new consolidation group as it will easy to get the reports at CG2 level.
As you can observe there has been no transfer of investment happening here. How do i take care of such a situation.
I read the posts regarding the Consolidation group changes but all posts were dealing with change in ownership happening. In my case there is no change in ownership as 1000 still continues to be the holding company. But only difference is that earlier 5010 was existing as a end node but now It has to have a consolidation group of its own where in it will have the holding company 5010 along with its 6 subsidiaries.
Pl give me a solution.
Thanks in advance.
Shivaprasad

facts of the scenario
1. Did first consolidation in period 012.2008
2. There is a company 5510 which belongs to CG1 as of first consolidation which was in period 012.2008
3. 5510 has invested in 6 new companies in period 003.2009
4. I want to create a new consolidation group CG2 and put the existing company 5510 along with 6 new companies under this group (client requirement)
5. I created a new consolidation group CG2 and assigned the company 5510 to this group along with 6 new companies
6. In consolidation group CG1 mentioned the divesture period as 003.2009 (DABP ticked) for 5510 company
7. in Consolidation group CG2 mentioned the First consolidation period as 003.2009 (FCEP unticked) against 5510 company
8. The figures are not accurate at the CG2 group level.
Should I be doing anything else apart from the above steps.
Will appreciate a fast reply as it is stopping the go-live
Thanks in advance
Shivaprasad

Defining consolidation method

Hi,
I would like to ask about consolidation method. I have hierarchy as follow:
1. Company A owned Company B for 70%
2. Company A owned Company C for 45%
3. Company D owned B for 0.2%
In hierarchy above, B will be using Full Consol, C will be using Equity Method (only absorb Net Income) and D will be using Cost Method (only calculate investment). When do this setting in HFM, where should i put % for PCON, POWN and PCTRL ? does HFM will read Method that i setup regardless how many % i setup in those 3 % ?
Appreciate your reply.
Thanks,
-Anna

Hi Anna,
Sample books, use specific methods, which means that the author has to define what is input to the method (is it POWN, or is it SharesOwned/SharesOutstanding?) and what kind of processing does. Methods like those you describe "FullMethod", "EquiMethod", "CostMethod" are just names. Without having documentation on how they work, or the corresponding part of the code in the rules file, its hard to tell what they do and what they require of you to input.
The specific methods I use, are quite simple, they need to specify only the Method, PCON and POWN. So the input for the consolidation in my case would look like:
Company B -> [Method] = FullMethod -> PCON 100% -> POWN 100%
Company C -> [Method] = EquiMethod -> PCON 100% -> POWN 45%
Company D -> [Method] = CostMethod -> PCON 0% -> POWN 0.2%
and the PCON in EquiMethod would be ignored for all accounts but capital and reserves, and the PCON/POWN for the CostMethod would not be handled at all, it would be just information.
However, the above is just a description of my rules. I could have written a set of rules that use the SharesOwned and SharesOutstanding as an input to calculate POWN and then depending on the POWN value the rules would decide if Full, Equity or Cost calculations would be performed.
As per the consolidation calculations, only the POWN is needed for calculating the goodwill, non-controlling interests and the group share of profits/reserves. The figure in POWN also depends on the entity structure, the simplest case being to input it ready to HFM into the POWN account.
So, the correct answer to your questions can be given only by the party that has implemented the rules, or if you can read and understand the rules code.
Regards,
Kostas

Consolidation- Method changes

Similar Messages

Maybe you are looking for