HFM "Inter unit profit elimination"

Can any one have any idea about " Inter unit profit elimination" and how it is done in HFM? we have done this through Essbase, and we just converted to HFM

If I understand your terminology correctly, this is simply 'Intercompany'!
HFM has an out the box ICP dimension.
When you create your Entity ad Account hierarchies, simply flag them as ICP and they will automatically eliminate and, the system report will provide Intercompany matching.
No more... no less. HFM is the right place to do this. As you seem to have done, in Essbase you have to script it.
Good luck

Similar Messages

Inter unit profit elimination

Hi all
This is not a technical question ...Can any one have any idea about " Inter unit profit elimination" and "Driver Models" what exactly these words represent....is it possible to achieve using Hyperion planning.
Thanks

Technically yes, you can do these kind of entries.
However, since these entries are almost journal entries, users should be doing these in another system like HFM. This being said, I am seen implementation where users have use essbase for these kind of entries.

Inter Unit Elimination

Hi,
Can any body explain, what is inter unit elimination in consolidation and why this has to be carried out, with simple example?
Regards,
Praisty

IC elimination has to do with group reporting. If 2 business units are part of same group. And there is a business transaction between them. For example, one business unit sells goods or services to the other. This transaction will not result in any net profit/loss or even net asset/liablity situation at the group level, where we have to report on the consolidated basis.
The popular way to achieve this in SAP is to use trading partner for these transactions. And during consolidation these lines with TP will be eliminated while generating the periodic consolidated reports.
Thanks
Ron

SEM-BCS: Cons Group Field Required for Inter-Unit Elimination

Hi!
I need help.
I need to use document type for manual postings that allows me to indicate the cons group field.
I understand the PL10 is cons unit dependent only and not cons group.
I know that PL12 allows cons group posting.
But from what I understand PL12 is not captured in the inter-unit elimation task.
Is there other way?
Appreciate response.

Hi Adam and Eugene,
Thanks for the helpful response.
However I want my manual entries related to inter-unit elimination to reflect in one cons group only, considering that we have different hierarchies in our system.
The manual entries related to I/U elimation is basically an adjustment to the intercompany accounts. The purpose of my manual entries is to minimize the value of the difference of my intercompany accounts.
for example: (before interunit elimination)
Company A has intercompany accounts receivable of 100 USD with trading partner Company B
However, Company B recorded 50 USD intercompany payable with trading partner Company A. Company B has understated figure of 50 USd
To manually adjust in the BCS system, I'll post in Company B debit inventory and credit intercompany payable 50 with trading partner Company A.
Question is I want my adjusting entries to relfect only at the top hierarchy (one cons group) and not at the other cons group
Is there a way?
Please advice.
Thank you so much

Intercompany Profit eliminations

Hi Experts
I am working on intercompany profit elimination and trying to understand how it works.
We have implemented intercompany profit elimiation for US and trying to work for other countries. My client is using Dual costing for materials to record profit made in intercompany and later to eliminate (I/C profit elimination) at month end.
Can any one explain how does this work ?
Thanks
Deepa

Hello Deepa! I too am just beginning to work on our intercompany profit elimination techniques using 4.7 in SAP and Material Ledger actual costing. We previously set up 3 currencies. The currencies are as follows:
10 - Called Local currency. this currency will include the profit in the cost estimate and std of the transferred parts.
30 - Called Group currency. This one is a straight conversion to the group currency (if different) at the exchange rates provided in the rate table.
31 - Called Group at Group. This currency is expected to provide the cost estimate standard cost of all inventory without the extra profit layer.
So, we have a couple of things that must happen. We need a layer within the cost estimate that gets picked up in currencies 10 and 30, but not in 31. I believe this behavior is handled by the way the layer is created. If we use Additive Costs, the Accounting department would add the profit layer to the cost estimate for the normal costing variant. We would not apply an additive cost layer for the other costing variant that applies to the 31 currency. The other thing is that we then need to find a report that shows the currencies with (30) and without (31) intercompany profit layer. This report will show us the remaining intercompany profit layer in inventory which should be eliminated.
That is the basic strategy we are going to test with. Another way we plan on adding the layer is to use Purchasing Information Records (PIR) - Pricing Conditions. If we can get the PIR pricing conditions to work as described above using Additive Costs, we can hand off the daily maintenance to the purchasing side of the organization. This is just another option to explore.
If you have arrived at any additional epiphanies, please let me know.
David

Inter unit posting for blank business area

Hi
For Inter unit posting we have executed the run in TC-F.5D & F.5E for the month april -- july which was successful.But while executing the same for the month of aug it is reading the document to be posted for IU run.But while executing f.5E it not generating the posting.Please adivice the possible reason for the same problem.Please consider it as a priority.
Thanks
shivaji

Hi,
I have an answer for your 1st question only.
After putting the data in F.01 click on the "Arrow" which is there beside the option Business Area which will take you tor "Multiple selection for Business Area" window.
In that window do not enter anything but select the 3rd option, "Maintain selection options". you will get one more window with the options 1. Single Value 2. Greater than or equal to and so on......
Select, 1st option, Single Value and execute (F8). Also select - "Classical List" option under List Output in F.01, you will be able to see "Non Business Area" related GL's in Balance Sheet.
Regards,
Shridhar Sawant
FICO

BPC 7.5NW SP 06 - IC Profit Elimination

Hello experts,
At our company, we configured the business rules (both at the Appset level and at the Application level) to perform the Automatic Adjustments. These include IC ARAP elimination, Parent's Investment elimination, Subsidiary's Equity elimination and IC Profit elimination.
After running the Consolidations, we noticed that the entries for the IC Profit elimination are not being picked up by the consolidations program. It is only this particular type of elimination that we are having a problem with. All the other eliminations are running just fine.
To troubleshoot this problem, we tried changing multiple fields such as the source account, All account, Group account, Rule ID, etc one at a time. We even changed the Rule ID field to use the same Rule ID as the other types of eliminations. However, the result is still the same.
Any idea why this is happening? Your insights are greatly appreciated.
Thanks in advance for everything.
Van.

Hi,
Thanks for the response. What kind of details would you like to see?

Inter unit transfer -stock transfer

Hi
what is the difference between Inter unit transfer & stock transfer between plants

Hi,
Intra company transfer - transferring stocks between plant under the same company code. So u can do that with delivery and without delivery also. But billing will not happen.
Inter company transfer - transferring stocks from one company code o another company code. So u can do this without delivery and with delivery and billing. Below i have given configuration steps for both.
Follow the below steps to to make STO between two plants ( different company codes).It is also called as Inter Company STO.....
1) Create one Customer Master in XD01 with respect to Supplying Plant Sales Area and assign this Customer no with Receiving Plant in OLME->PO-> set up STO->Define shipping data for plant and for the supplying Plant assign the above sales area.( Make sure, In Customer Master, sales Area Tab: you are maintaining shipping condition)
2) For Receiving Plant Pur. Org and Co.Code Combination create Vendor master in XK01 and in this vendor master assign the Supplying plant in Pur.Org.Data screen->Extras--> Add.Pur.data
3) OLME->PO-> Set up STO------>For your supplying plant assign document type NB, Delivery type NLCC and Checking Rule RP
4)then For your supplying Plant and receiving Plant assign Document type NB
5)Make sure you are maintaining Sales View for the material at supplying Plant and in Sales /Gen plant Data view maintain Availability check, Loading group and Transportation group.
6) In SPRo-->Logistics execution> Shipping->Basic shipping functions->Shipping point Determination>assign shipping points-> For your Loading group, Shipping Condition and Supplying plant combination, Assign shipping point
these are the configuration settings you have to do in background.
Then Create STO from Receiving Plant in ME21N with document type NB.
Based on that STO, Create Delivery in VL10B from supplying Plant
Do PGI in VL02N from Supplying plant
Do GR in MIGO at Receiving Plant keeping Outbound delivery as a ref. document.
Now your STO bet. two plants belongs to diff. Co.Codes will be completed.
2)Follow the below steps to to make STO between two plants belongs to same company codes).It is also called as Intra- Company STO.....**
1)Create one Customer for Supplying Plant Sales area and assign this Customer no with Receiving Plant in OLME---> PO -
> Set up STO -
> define Shipping Data for plants. and maintain the same sales area in your Supplying plant.
2) In OLME---> PO -
> Set up STO.....for your Document Type: UB and Suppying plant Combination assign Del. Type NL and Checking rule RP
3) In OLME---> PO -
> Set up STO...for your Supplying Plant and Receiving Plant combination Maintain Doc. Type : UB
Make sure you are maintaining Sales View for your Material at Supplying Plant.
4) Maintain Shipping point at, SPRO----> Logistics Execution -
> Shipping -
> Basic Shipping Functions -
> Shipping Point Determination for Plants.....there for your Loading group, Shipping Condition, Shipping Plant combination maintain Shipping plant..
Now Create STO in ME21N with Doc.type: UB at Receiving Plant.
Then Create Delivery in VL10B from Supplying Plant...
Then Do PGI in VL02N from supplying Plant.
Then do GR at Receiving Plant based on Outbound Delivery at Receiving Plant...
Regards,
Prasath

Profit elimination application?

hey pals,
am supposed to start work on profit elimination application in sem-bps.i have to build an application for it.any idea on whats that exactly and how to go about? Thanks in advance
ragav

Hi Ragav,
What we are talking about is named as 'elimination of internal business volume'. If you want to do it in BPS you should figure out how you will determine the volume to be eliminated (through which characteristics).
Though, the links below refer to reporting, they may give you hints how to go for your task.
http://help.sap.com/saphelp_nw04/helpdata/en/d5/784d3c596f0b26e10000000a11402f/content.htm
http://help.sap.com/saphelp_pserv463/helpdata/EN/42/ce5e3891ccb657e10000009b38f889/content.htm
http://help.sap.com/saphelp_banking463/helpdata/en/5c/c1c713445f11d189f00000e81ddfac/content.htm
Do not forget to assign points if the answer is helpful. It's the way to say thanks in SDN.
Best regards,
Eugene

Inter Unit Reconciliation

Dear Experts,
Please help me out.
we have got 24 factories located all over india.
there are numerous transactions taking place amongst these factories ( units ).
on regular basis, i need to do Inter Unit Reconciliation & identify un accounted sales or purchase transactions, if any.
I want to know whether there is any report or SAP activity where by i can perform the Inter Unit Reconciliation??
the output of the report should show me transactions ( open items ) for which sale or purchase is pending.
i will be grateful to you.
thanks & regards.
nilesh dalvi

Please identify how have you configured these twentyfour factories within SAP system.

Inter Unit ( factory ) Reconciliation

Dear Experts,
Please help me out.
we have got 24 factories located all over india.
there are numerous transactions taking place amongst these factories ( units ).
on regular basis, i need to do Inter Unit Reconciliation & identify un accounted sales or purchase transactions, if any.
I want to know whether there is any report or SAP activity where by i can perform the Inter Unit Reconciliation??
the output of the report should show me transactions ( open items ) for which sale or purchase is pending.
i will be grateful to you.
thanks & regards.
nilesh dalvi

Please identify how have you configured these twentyfour factories within SAP system.

Roles on the elimination of inter-unit transf. assets

Hi guys
We have a problem on implementing IU elimination of profit on assets. Our requirement is not to use capitalisation and valuation allowances. This role is left empty. Upon saving there are various warning messages coming up regarding roles for characteristics that can not be filled. When the databasis is exited and re-entered, the capitaisation and valuation fields are filled with the non-current asset value giving rise to an error message. Message number UCM0145 stating that the caharcteristics for non-current assets and assets / liabilities are identical. What are the steps to get past this error and why is this field filled even though we are not using it in the data streams?
Thanks.

1. It is necessary to create a InfoObject Catalog for this, or include the onject within the already created catalog. In my case I included all to get around the errors:
a.     0BCS_FVD with compound object of MCOMPANY
b.     0BCS_AASSET (or equivalent M-object)
c.     0BCS_AASTMN (or equivalent M-object)
d.     0BCS_ALMCOM (or equivalent M-object)
e.     0BCS_ALMPC (or equivalent M-object)
f.     0BCS_ALMU (or equivalent M-object)
g.     0BCS_ALTYPE (or equivalent M-object)
h.     0BCS_ASSET (or equivalent M-object)
i.     0BCS_FVDMN (or equivalent M-object)
j.     0BCS_INITEM (or equivalent M-object)
k.     0BCS_MASSET (or equivalent M-object)
l.     0BCS_MASTMN (or equivalent M-object)
2. Maintain the necessary customizing for Assets/Liabilities in Data Basis on Tab Data Model for Asset/Liability-managing Consolidation Unit, Elimination of Interunit Profit/Loss in Transferred Assets and Capitalization and Valuation Allowances. For further details please also review SAP note 1082379.
3. Add the data steams for Assets/Liabilities and Noncurrent Assets
4. Save and generate the data basis
NOTE: If the data basis is changed and needs to be regenerated, there is a possibility that the error below will occur.
Data model: Definitions of acquired asset and retired asset are invalid
Message no. UCM0149
When this error occurs, the steps to save the data basis without the error are:
a. Make Retired u201CNoncurrent Assetu201D blank
b. Save the data basis
c. The system will automatically add the characteristic from u201CNoncurrent Assetu201D to u201CRetired Noncurrent Assetu201D

ECCS - Intercompany Profit Elimination of Inventory Transfers

Hi Consolidation Gurus,
We are trying to eliminate intercompany profits on inventory transfers. We are using the Additional Financial Data and created Product Groups like Machines, Parts etc. How complicated is it to use Reported Financial Data? Is it possible to get profit elim at each item level?
How do we go about doing the profit elim? Could somebody explain in detail how the intercompany profit is set up(customising) and how exactly it works? What are the steps involved in setting it up? Also, how do we use the flexible upload file? Is there any format for uploading this?
Any help would be greatly appreciated.
Thanks.
SV

We are going to implement SEM-BCS - So i wanted to know the details of interprofit elimination in detail during the blueprinting process.
Traditional R/3 for inter company transactions is you create one account for each CC and check that account to see the amount that's due from that CC
With Trading partner functionality, you will be having one single account for all transactions with all the Co Cds and if you want the balance of a particular Co Cd, you do it with by checking the A/C and the Trading Partner(Company ID).
Am i correct in saying so ? Correct me if i am wrong anywhere.
How would things be taken care in BCS? is what i wanted to know.
Thanks,
Nandita

Inter plant profit determination on Consolidation

Dear Gurus/Experts,
I am facing a scenario in Consolidation in an Indian Implementation project. The Client is a manufacturing company and has two plants. The production of 1st plant is mostly captive consumed by 2nd plant and also sold outside. Now they are having some local ERP system. In this system, they are recording the stock transfer as Sales. So when goods are issued from 1st plant to second plant, it is done by raising sales invoice with sales tax. However, they do not allow me to see the consolidation entries.
I have thought of treating each plant as profit center and so as show the sales/turnover at plant level as per their requirement. But during consolidation, the unrealized profit will be knocked off. The client wants to show the inter-plant sales also (as the scenario I have mentioned) on the plant level as well as company code level. I am unable to do this as this company is registered with the Registrar of Companies as a single company and have single PAN No. I also cannot go for creating two company codes as this will be out of scope.
Gurus, please help me how I can map this scenario in SAP.
Thanks and Regards,
Amit

Hi Amit,
What I undestand from your post is only one company code with multiple plants.
1.So here you can create a plant as a customer and do the stock transfer.
2.At company code level in p&l you can show purchases and also show sale for the transaction you are mentioning. I am doubtful that you cannot show in this way as it is not following the accounting standard for revenue recognition .
3. As the company is single entitiy the step two is going to eliminate profit in stock transfer & which a basic accounting principle and legal requirement for revenue recognition accounting standard.
Warm Regards

Inter-Unit transactions within Company Code

Hi,
Business Scenario: There are various units within a Company Code. Each unit is a Profit Center. There are lot's of transactions that happens between units. For example, for expenses of Unit A, Unit B makes the makes the payment. There would be thousands of such transactions and there are more than 100 units. My query is, at the end of a period, how would Unit A would come to know that how much they have to pay to Unit B or Unit C or Unit D etc.
Can someone please guide how to achieve this?
Regards,
Sanjay

Hi
You can get this reports by following T.Codes:
1. S_ALR_87013343    : Profit Center Receivables
2. S-ALR_87013344     : Profit Center Payables
3. S_ALR_87013336    :   Profit Center Group: Balance Sheet Accounts

HFM "Inter unit profit elimination"

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