Difference between Legal and Managerial consolidation?

Hi,
Can you guys please share your knowledge for this question
Difference between Legal and Managerial consolidation?
Thanks,
Charly

This is quite a general question and should not be answered only in context of BPC.
Paraphrasing your question is not really a help.
In general a Legal Consolidation is one whose purpose is to meet statutory requirements [whereever/whatever they are].
For example generating data for Shareholders on an annual basis in Glossy Annual reports.
A managerial consolidation may be similiar in several ways, but focuses on internal factors and may have a different entity structure than that of the Legal structure. Management reports are typically used at the end of any given reporting cycle (actual/budget/forecast etc) and allow 'management' to guage the performance/review the data of their business.
I suggest looking this up on the various financial websites, where you will get better definitions.
Of course in BPC it is possible to do Legal consolidations without 'legal ownership cubes' and this is what many 4.2 customers have done.
In modern BPC i would check the scope of the consolidaton requirements before choosing any 'bpc consolidation methodology'
Raghu's links are also useful in context of BPC.

Similar Messages

What is the differences between Legal and Financial Consolidation

Dear Experts,
Can any body explain me what is the differences between Legal Consolidation and Financial Consolidation.
Thanks in advance.
Regards,
Srinivasan.

hi srinivasan.singari
NOT is the same.. legal & management are diferent.
the diference is the master data, while you have for consolidation.
the legal consolidation only take the company code, because the County's legal policies just is interesting in your company, your statements about your company.
The management consolidation take company but take another master data, usually Cost Center or Bussines Area, your client is interesting in the business´s behavior.
So, if you have a legal consolidation you are ok with the legal policies, but if you need more detail, you need management legal.
if you want legal and management, you need settings for a parallella consolidation. or take diferents areas for consolidation.
please check this link: http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/7070134c-1b04-2d10-f29d-bbb35abfa119?QuickLink=index&overridelayout=true&46870978105886
In master data you define company, if you need management consolidation you should add another master data like cost center or bussines area in the subgroup.
regards.

Legal and management consolidation

Hi experts,
Anybody can specify what are all the differences between legal and management consolidation?
What are the tasks that differentiate each one from the other?
Regards.

Hi,
Technically, you can do both in same application. However, it would be advisable to have separate applications. You will need to do lot of intercompany bookings, eliminations. This may increase the amount of data in a single application.
Hope this helps.

Difference Between Legal Consolidation and Management Consolidation

Dear Experts,
Kindly help me to know
1) To Differenciate between Legal Consolidation and Management Consolidation Theoritically?
2) To Differenciate between Legal Consolidation and Management Consolidation Technically in BPC?
3) What is impact on /Difference on Business Process Flow in BPC in case of Legal Consolidation or Management Consolidation? (What should be done in Management COnsolidation and Legal COnsolidation in BPF in BPC)
Thanks in Advance
Ritesh

True accounting/legal consolidations encompasses the three following elements:
1. the general ledgers of the entities
2. elimination entries between entities (inter entity transactions such as sales/cost of sales, a/r and a/p etc.)
3. adjustments for partially owned entities
Using the legal app, rate and ownership apps, and the proper configuration, outlooksoft achieves a legal/accounting consolidation. Accounting consolidations also link to a legal hierarchy of entities.
Any consolidation that is referred to as management or financial consolidation etc. can have differing connotations. In Outooksoft software, management consolidations does not include item 3.
However, when the terms are used by the client they can have different meanings. They could mean either :
A true legal consolidation BUT tied to the Management hierarchy of entities (as opposed to a legal hierarchy) OR An aggregation without item 3 above and tied to the Management hierarchy of entities.
9 times out of 10, clients usually want the first rather than the second alternative. Financial statements
rolled up using legal consol should equal that using management consol.
However, when clients do planning, they may have their entities plan as if they were fully owned. They could also have their entities provide actals for less than 100% in the case of partially owned entities. In these cases, you have to adjust appropriately.
From an Outlooksoft config point of view, you need the legal, rate and ownership app and the related configuration for a legal consolidation. Management consol depends on client definition and client practice in the data that they collect from the entities.
In the area of BPFs, the key difference between legal and management COULD be the steps (1-3) and the maintenance of the different hierarchies and ownership values.
Hope the above helps.

Activity System status: differences between u0093Openu0094 and u0093In processu0094 status

Dear Experts,
Whats the difference between Open and In process system status? In help.sap.com it: There are four system statuses that represent the life cycle of the business transaction:
Open: has been recently created and not yet processed (for example, contract from the Internet)
In process: administrator is clearing up questions
But, how does the system assumes the In Process status ?? Ive tested business activities creation with different employees assigned and, when editing and saving the business activities with these BPs the system status does not change.
However, in other unknown situations the status system is changed to in Process.
Any ideas about the meaning of the In Process status? And when the business activity switches to that?
Thanks in advance,
Joao

Hi,
These four system statuses that represent the life cycle of the business transaction:
·        Open: has been recently created and not yet processed (for example, contract from the Internet)
·        In process: administrator is clearing up questions
·        Released: contract is complete and legal. Follow-up processes can be started (printing, billing, distribution, releases and so on)
·        Completed: All actions directly linked to contract are completed
·        Closed: all actions indirectly linked to the contract are closed (for example, from R/3: batch run to actual costs)
Each status having its own control at the configuration level. If you observe the following process you may understand the importance of various statuses.
For example in any transaction by default status would be Open. Once the transaction opened by the respective responsible person he will change the status as In Process, Once the assigned task is completed he will change the status as Completed.
Please notice the configuration settings in the following navigation path:
SPRO->IMG->CRM->Transactions->Basic Functions->Status Management-> Change Status Profile for User Status->Select Quotation->Double click on the different status. You can observe the difference.
Hope I convinced.
Best Regards,
Johnny.
Reward if it helps.

Difference between Implement and Extend

what is the difference between implements and extends and why do we use them
thanks,

classes extend one other class and implement as many
interfaces as they wish.
interfaces extend as many interfaces as they wish.But for all that, they both just mean "inherits."
There wouldn't even have to be two different words, since you never have a choice between X extends Y and X implements Y. For a given X and Y, only one of the two will be legal.

Difference between SPL and Embargo check

Hi,
What is the difference between Embargo and SPL screening.
Regards
Gaurav Jain

Hi Gaurav,
Embargo
An embargo is a government prohibition against the shipment of particular products to a particular country for economic or political reasons.
SAP Global Trade Services (SAP GTS) provides an embargo service that helps you manage import and export processes in global trade. The embargo service automatically checks whether there are any "critical" business partners contained in your customs document, that is, whether the business partners are in an embargo situation. If there is an embargo situation, the document is blocked for further processing. Essentially, the embargo service enables you to map all possible combinations of legal regulations using three functions in combination with one another
Sanctioned Party List Screening
A sanctioned party list contains a list of persons and companies with whom trade is prohibited by law. These boycott lists are issued by government agencies and can be obtained from data providers. All traders must comply with these lists.
Sanctioned party list screening lets you compare the addresses of your business partners (such as the consignee) with the sanctioned party lists automatically prior to goods export. It is a system-independent solution that performs and logs the SPL check and is fully integrated into the complete business process.
Hope this information helps
Regards,
Prarit
Edited by: Prarit Sehgal on Apr 2, 2009 2:05 AM

Difference between consignment and subcontract

hi,
Could anybody tell me what is the difference between consignment and subcontract?
Thanks a lot!

Dear Lauliu,
Under Consignment - there are vendor consignment and customer consignment categories.
Vendor consignment:In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period of time.
http://help.sap.com/erp2005_ehp_05/helpdata/EN/4d/2b8f4c43ad11d189410000e829fbbd/frameset.htm
http://help.sap.com/erp2005_ehp_05/helpdata/EN/c6/af3c415e5dde2be10000000a1550b0/frameset.htm
Customer Consignment: http://help.sap.com/bestpractices/BBLibrary/HTML/J58_CustConsProc_EN_KO.htm
Sub-contracting: this can be operation sub-contracting/External Processing and product sub-contracting.
Regards
Mangalraj.S

Difference between BPS and BO

Hi All,
Can u guys tell me the difference between BPS and BO because both are used for Decision making purposes.
Thanks
Edited by: Nithi Anandan on Feb 12, 2010 2:33 PM

Nithi - there are many products in the Business Objects suite.
BPC is a new planning and consolidation tool that will replace the relevant SEM modules.
Edited by: Khaled McGonnell on Feb 12, 2010 5:09 PM

What is the difference between DSo and Infocube

Hello,
Kindly tell me what is the difference between DSO and Infocube?
And please tell me how to take the desicion that in whichi case we can use DSO and in which case we can use Infocube..

Hi ,
DataStore object serves as a storage location for consolidated and cleansed transaction data or master data on a document (atomic) level.
This data can be evaluated using a BEx query.
A DataStore object contains key fields (for example, document number/item) and data fields that can also contain character fields (for example, order status, customer) as key figures. The data from a DataStore object can be updated with a delta update into InfoCubes and/or other DataStore objects or master data tables (attributes or texts) in the same system or across different systems.
Unlike multidimensional data storage using InfoCubes, the data in DataStore objects is stored in transparent, flat database tables. The system does not create fact tables or dimension tables.
Use
The cumulative update of key figures is supported for DataStore objects, just as it is with InfoCubes, but with DataStore objects it is also possible to overwrite data fields. This is particularly important with document-related structures. If documents are changed in the source system, these changes include both numeric fields, such as the order quantity, and non-numeric fields, such as the ship-to party, status and delivery date. To reproduce these changes in the DataStore objects in the BI system, you have to overwrite the relevant fields in the DataStore objects and set them to the current value. Furthermore, you can use an overwrite and the existing change log to render a source delta enabled. This means that the delta that is further updated to the InfoCubes, for example, is calculated from two successive after-images.
An InfoCube describes (from an analysis point of view) a self-contained dataset, for example, for a business-orientated area. You analyze this dataset in a BEx query.
An InfoCube is a set of relational tables arranged according to the star schema: A large fact table in the middle surrounded by several dimension tables.
Use
InfoCubes are filled with data from one or more InfoSources or other InfoProviders. They are available as InfoProviders for analysis and reporting purposes.
Structure
The data is stored physically in an InfoCube. It consists of a number of InfoObjects that are filled with data from staging. It has the structure of a star schema.
The real-time characteristic can be assigned to an InfoCube. Real-time InfoCubes are used differently to standard InfoCubes.
ODS versus Info-cubes in a typical project scenario
ODS
why we use ods?
why is psa & ods nessasary
Hope this helps,
Regards,
CSM Reddy

What is the difference between ODS and PSA?

DIFFERENCE BETWEEN ODS AND PSA?

hi..
ODS:
Stores consolidated data on the document level.
Data is stored in transparent tables.
Reporting is possible.
Represented on the database by three transparent tables.
Stores Transaction data.
Can merge data from different infosources.
Can be defined as a datasource for another Bw system.
ODS has granular data, it is volaital.
ODS having the Over write functionality
contains Current data
PSA:
It is source system dependent.
Stores data in 2-D format.
We can edit data in PSA.
Reporting is not possible.
used mainly for performing manual update or simulate update or reconstruction.
partition is possible.
Data stored in psa can be used for several purposes.
Repeated delta updates possible.
Error handling posibility.
Structure of PSA is called as Trasfer structure.
It stores the data exactly like how the data is presented in the source system.
We have psa and ODS but we can't do reporting on PSA
You can do reporting in ODS , In PSA u cant do reportin directly
ODS contains detail -level data , PSA The requested data is saved, unchanged from the source system. Request data is stored in the transfer structure format in transparent, relational database tables in the Business Information Warehouse. The data format remains unchanged, meaning that no summarization or transformations take place
In ODS u have 3 tables Active, New data table, change log, In PSA u dont have
We can only add in PSA and change, add and delete in ODS.Is the statement true?
we can edit/add the records in PSA and delete the records,
i thjink its not possible to edit the records in ODS, u can delete the records, and u can add records in ODS
check out this link..
PSA and ODS
hope it helps..

Difference Between Aggregates and Compression

Hi,
Can you tell me what is the difference between Aggregates and Compression?
I know ,once compressed data is not available for deletion in request wise
and it moves from F table to E table .
Aggregates means ,data will move from cube to aggreagates(Baby cubes).
But my query is ,As both of them aggregates the data.which of them should be used. at what situation?
I hope you understood my Query.
Regards.
Naresh.

Hi,
An aggregate is a materialized, aggregated view of the data in an InfoCube. In an aggregate, the dataset of an InfoCube is saved redundantly and persistently in a consolidated form into the database.
Aggregates make it possible to access InfoCube data quickly in Reporting. Aggregates serve, in a similar way to database indexes, to improve performance.
especially in the following cases we create aggregates:
The execution and navigation of query data leads to delays with a group of queries.
You want to speed up the execution and navigation of a specific query.
You often use attributes in queries.
You want to speed up reporting with characteristic hierarchies by aggregating specific hierarchy levels.
For more info on aggregates go though the link below
https://help.sap.com/saphelp_sem320bw/helpdata/en/c5/40813b680c250fe10000000a114084/frameset.htm
Compression creates a new cube that has consolidated and summed duplicate information.
2. When you compress, BW does a group by on dimensions and a sum on measures... this eliminates redundent
information.
3. Compressed infocubes require less storage space and are faster for retrieval of information.
4. Once a cube is compressed, you cannot alter the information in it. This can be a big problem if there
is an error in some of the data that has been compressed.
For more info go though the below link
http://www.sap-img.com/business/infocube-compression.htm
Regards,
Marasa.

Difference between extends and implements

hi
i am new to java. i need to know the difference between extends class implement class.
can anybody explain in simple words? i am new too oops concept also?
what are the conditions to use extends class, implement and interface?
class b extends a implements c
i know class a is a super class and class b is a sub class.
if class b extends class a means how should be the class a, what about the methods?
and class a implements class c means what should be the conditions?
i searched in Internet but the explanation is not very to me.can body explain me please?
thank you

sarcasteak wrote:
Your class can implement an interface, which means it must use the methods defined in the interface.No, it doesn't need to use them. It needs to implement them. Or be declared abstract.
Note that the methods in the interface are empty,No, they're not. They're abstract.
// empty method
void foo() {}
// abstract method
abstract void foo();(The abstract keyword is optional for interface methods, since they're all abstract.
and you have to define what they do in your class that implements the interface.Just like they have to for abstract methods in a class you extend, if the child class is not declared abstract.
There really isn't any difference between "extends" and "implements." There is no situation where you can choose. Any case where one is legal, only that one is legal. They could just as easily be a single keyword.
Presumably the OP's real question is, "When do I use a class for a supertype vs. using an interface for a supertype?" The answer to that, of course, is:
Use a class when at least some of the methods have valid default implementations. Use an interface when that is not the case. And of course the two are not mutually exclusive. It's quite common to do both.
At the end of the day, an interface is really nothing more than a class that has no non-final or non-static member variables and whose instance methods are all abstract, and from which you can multiply inherit.
Edited by: jverd on Feb 4, 2010 1:56 PM

Difference between Appropriation and Proportion?- HFM

Dear Professionals,
I am new to HFM, I have a query regarding Value dimension.
What is the difference between Appropriation and Proportion?
If possible give me simple examples..
Help me out
Thanks
Sarath

Allocation is a subroutine in rules, and also a general concept of taking amounts from one place and spreading them using some method to other places. Proportion is a specific value dimension member which stores non-eliminated data after consolidation rules have been executed. Combine that with Elimination data and any adjustments from [Contribution Adjs] and that's the amount the child contributes to the parent entity.
--Chris

Difference between customizing and configuration?

Is there any Difference between customizing and configuration?

Hi Rajesh,
What is Client? What is the difference between Customization and Configuration?
The difference between cutomizing and configuration is:
- CONFIGURATION: we will configure the system to meet the needs of your business by using the existing data.
- CUSTOMIZING: we will customise or adapt the system to your business requirements, which is the process of mapping SAP to your business process.
- CLIENT: A client is a unique one in organizational structure, can have one or more company codes. Each company code is its own legal entity in finance.
Configuration vs. Customization
When considering enterprise software of any type, it is important to understand the difference between configuration and customization.The crux of the difference is complexity. Configuration uses the inherent flexibility of the enterprise software to add fields, change field names,modify drop-down lists, or add buttons. Configurations are made using powerful built-in tool sets. Customization involves code changes to create functionality that is not available through configuration. Customization can be costly and can complicate future upgrades to the software because the code changes may not easily migrate to the new version.Wherever possible, governments should avoid customization by using configuration to meet their goals.Governments also should understand their vendor's particular terminology with regard to this issue since words like "modifications" or "extensions" often mean different things to different vendors.
Reg,
Ashok

Difference between Legal and Managerial consolidation?

Similar Messages

Maybe you are looking for