Management Consolidation

Hi Friends
Have you ever done consolidation per profit center? Actually my client wants a managemet consolidation, is posible to do this at the same consolidation area? because according to help.sap the consolidation area is for that.
what is the first step for Management consolidation From ECC 6.0? Really Im confused with the documentation about this.
Thanks in advance

Thanks Dan for quickly answer
The matrix consolidation is always necesary for consolidation per profit center?
I want to consolidate for legal consolidation (Level company), and management consolidation (Level Profit Center), is posible to have in one consolidation area only Profit center for consolidation unit?
I know that the matrix consolidation you should have two consolidation unit (company and Profit center) but what is the best practice for management consolidation
Cheers

Similar Messages

Introducing Business Area for Management Consolidation

Our Business has been using Business Area for all management reporting purpose since SAP had been implemented some 15 yrs back in our organization. They do not want to use Profit Center for management consolidation purpose in SEM-BCS. Our Project Manager wants to go with one data basis with one cons area.
I have planned to remove all Profit center related characteristics (alloc cons Profit center, cons Profit center grp, cons profit center, Investee unit- profit center and Partner cons profit center) and introduce Business Area with Sub-assignment role. Under Breakdown category, I will create necessary sub-assignment from comp code GL transaction data to Business Area. I can do legal consolidation in the normal course and with sub-assignment and using breakdown category, I can derive Business Area based consolidation and also I can generate both legal and mgmt reports.
Whether my understanding of the data basis architecture is correct? Is it prudent to proceed further based on my understanding?
Dan & Eugene: I look forward for your feedback.
Thanks in Advance,
Tim

Dan: <i>For management reporting you may not want to post eliminations between companies where the business areas are the same.</i>
If the Business wants to see the eliminations between companies, within the same business area, as part of BEx reports, what should I do? They do not want to execute consolidation functions in UCMON but just want to see how the eliminations have taken place between companies with in the same business area.
Dan: <i>As long as the partner company and partner business area are consistently included for the intercompany transactions, the eliminations between Legal and Management will agree at the top-level of each hierarchy.</i>
Have I to introduce one more InfoObject Partner Business Area in the data basis and assign the role Sub-assignment once again?
Thanks in advance.

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.

Re: BPC; Legal and Management Consolidation

Hello,
Would it be possible to have both legal and management consolidation with one Appset and two different Applications? One Application for legal consolidation and another for Management consolidation?
Please share your inputs.
Kind regards,
RJ

Hi Niranjan,
Can we have both legal and management consolidation in one application ? If there are 2 applications, the processes and reports need to be maintained in 2 different applications.
Is there a way to maintain in one application knowing the complexity involved in intercompany eliminations.
Thank you,
Mohan

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.

Legal Consolidation VS Management Consolidation

Hi Gurus,
In the reporting application types
" Financial type allows to perform Management consolidation function and in Consolidation type allows to perform Legal consolidation function. "
What is the difference between Management consolidation and legal consolidation ?
I am bit confused can some one explain me what exactly it mean with an example??

Hi,
For the consolidation purpose,the data record contains at least the following fields:
company
company-partner
Profit Centre
Profit Centre-partner.
For legal consolidation, only company-related data matters. Because Profit centre data will be taken from the other source.For management consolidation, only Profit centre-related data matters.
There will be 2 initial data sets, should be created as Consolidation Areas to meet the business requirements , for example ASML -Legal Consolidation,ASMM-Management Consolidation.This is as according to the best in practice approach to have different sets of data for legal and management reporting. Management is focused on per segment, per product reporting and statutory focused on the legal entity view.
Each consolidation area will only hold the relevant consolidation unit. That is, the statutory consolidation area will only hold company codes and will not post/process to profit centres at all. The management view will hold Company codes/profit centres (sub assignment object) and the users will post only to the relevant company codes/profit centres
Also Pls check these links...
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FILC/FILC.pdf
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/ECCS/ECCS.pdf
http://help.sap.com/saphelp_sem40bw/helpdata/en/67/f7e73ac6e7ec28e10000000a114084/frameset.htm
Re: Synchronize Master Data between BCS and BW within the same SEM system
/message/1508507#1508507 [original link is broken]
http://sap.ittoolbox.com/groups/technical-functional/sap-sem/dataflow-from-r3-to-sem-bcs-950671
https://www.sdn.sap.com/irj/sdn/go/portal/prtroot/docs/webcontent/uuid/6e01a04e-0a01-0010-dfbe-951c2c39d169
http://help.sap.com/saphelp_nw2004s/helpdata/en/c4/9057475ca611d4b2e30050dadfb23f/frameset.htm
http://www.sapprofessionals.org/?q=sem_bcs_key_design_considerations_for_integration_points
http://sapnewbie.blogspot.com/2006/03/sap-sem-bcs.html
http://www.pragmatek.com/news/BW%20Reprint%20Jun%202004.pdf
https://forums.sdn.sap.com/click.jspa?searchID=329906&messageID=549616.
Follow this link.
https://websmp103.sap-ag.de/sem
Pls chk under for more detils: Forums -> SAP Solutions-> SEM-BCS.
media library -> presentations -> SEM-BCS. Here u can find the relative document.
Hope this helps.
Regards,
CSM Reddy

Legal \ management consolidation (What is the appropriate data model?)

Hi,
We are implementing SEM-BCS 6.0 with SAP BI 7.0.
For reporting purposes we have 2 types of consolidation:
Legal (external) and management (internal).
I have the following situation in a project (fictive names for companies):
Legal entity hierarchy is as follows:
Company Apple has business units A, B, C
Company Bello has business units A, D.
Management hierarchy is as follows
To the Business unit A belongs companies Apple and Bello.
Question is now: to be able to report in 2 different ways (legal and management reporting), having in account that for legal I consolidate by company and for management I consolidate by business areas:
Do I need to create 2 consolidation areas with each a data basis and perform financial consolidation twice (interunit eliminations (elimination of payables and receivables, elimination of revenue and expense, elimination of investment income) Elimination of Interunit Profit/Loss in Transferred Inventory, consolidation of investments, Reclassifications).
Or do I create one consolidation area with one databasis with 2 consolidation unit hierarchies.
For example, one hierarchy could have a structure of consolidation units as companies; another hierarchy could have a structure with business segments. (In our opinion this is the best way - Are we correct?)
If so, can we have the first hierarchy (legal) with consolidation unit (company) and partner unit (trading partner);
And the second hierarchy (management) with consolidation unit (business area) and partner unit (trading partner or trading partner's business area).
Thanks.
Ps: Our purpose is to have one databasis and one Financial Statement Item for both consolidations (legal and management).

Ricardo Pedro Rodrigues Ferrão wrote:
> Hi Eugene,
>
> Ill try to explain it better.
>
> For example the business unit A is portable pc and I have this business unit in both companies and what I want in management consolidation is to consolidate data by the business unit portable pc joining data from both companies.
>
> Thanks.
Ricardo,
I had similar business scenario in my earlier project and the expectations were almost same.
I created one consolidation area (legal consolidation) under one single data basis and assigned business area as sub-assignment. All the consolidation functions are executed by the business users based on legal cons requirements purpose, while the reports can be generated for both legal and management consolidation.
In management consolidation reporting, your expectations can be met easily. The header will be business area, while line item data will be companies wise (if you would like the data to display that way).
For more information, you can check the threads created by me.

Management Consolidation-Moving PC and PC Group

Hi,
We want to do Managemet Consoliation based on Profit Centers. Would like to understand how movement of Profit Center and Profit Center Group is handeld in Managemetn Consolidation? These change are purely management requirement and does not affect legal ownership.
Kindly advise.
Best Regards,
UR

The biggest challenge is reconciling PCs with LEs.
I agree that this is challenge. But if the management where UR works would be interested in automatic reconciliation they would consider the matrix consolidation - the manual reconciliation would go away.
Otherwise (without a matrix and only PC CU) such consolidation will worth nothing just taking into account how much manual work it will take to really reconcile the data.

Source data for Legal and Management Consolidation

Hi,
I'm in ECC5, using BCS 4.0 and BW 3.5.
Our current designed required 2 type consolidation, which is company consolidation and profit centre consolidation. Note that the profit centre consolidation also required balance sheet and profit/loss.
Now, I know that basicly the source of data coming from R/3 is actually the special ledger table FAGLFLEXT. In this table, both company and profit centre shared the same table in order to maintain data consistency.
My question is:
1. Is my understanding about FAGLFLEXT correct?
2. What are the prerequisites steps so that the table FAGLFLEXT can have the profit centre data inside?
Any advise please....
regards,
Halim

Hi Halim,
Yes, you are right.
As a prerequisite, you need to activate new General Ledger Accounting in Customizing for Financial Accounting in the OLTP system:
http://help.sap.com/saphelp_nw04/helpdata/en/be/928f40f5767d17e10000000a1550b0/frameset.htm
http://help.sap.com/saphelp_erp2005/helpdata/en/b6/5f58405e21ef6fe10000000a1550b0/frameset.htm
See here an example of configuration:
http://help.sap.com/bp_bblibrary/500/documentation/N70_BB_ConfigGuide_EN_DE.doc
here a presentation on GL in mySAP ERP:
http://www.asug.com/client_files/DocUploads/search/doc1194.ppt
and here a thread about dataflow from R/3 to BCS:
http://eai.ittoolbox.com/groups/technical-functional/sap-r3-sem/dataflow-from-r3-to-sem-bcs-950671
Best regards,
Eugene

Travel Management - Consolidated Limits on two Expenses

Experts,
I have a requirement. I have created 3 Expense Types
HOTEL
MEALS
INCIDENTAL/ MISCELLANEOUS
There is consolidated limit on these three expenses, example the limit of these 3 is 300 per day.
I have already assignd the individual expense limit and now want to club it under one expenses head.
Please let me know how can it be possible.
Regards,
Shiv

Thanks Raynard,
I can control individual expense heads in the table "V_T706B2". I have done the same configration.
Is there any other way where we can control combination of 3 expenses.
Ok, let me put my query in other way.... Suppose, I have three different expense heads and a daily limit as mentioned below
HOTEL          -                       $150.00 Per Day
MEALS         -                       $100.00 Per Day
INCIDENTAL/ MISCELLANEOUS        -                  $50.00 Per Day
There is consolidated limit on these three expenses for a day is $300.
In case there is only Hotel expenses on travel day and not other expenses(Meals & Incidental).
Scenario1 - Now, if I enter Hotel $160.00, it should give me a warning message on Hotel limit exceeds by $10.00 and should not accepts the consolidated limit of $300.00
In case there are Hotel expense with other expense as well Meals & Incidental
Scenario2 - Now, if I enter Hotel, Meals & Incidential ($160.00, $110.00 and $25.00), it should give me a warning message on Hotel limit exceeds by $10.00; Meals limit exceeds by $10.00; and there will not be any issue on incidental as it is within the limit. And it will allow the day consolidated limit.
Please let me know how can it be possible.
Regards,
Shiv

Difference between Consolidation, Harmonization and Central master data man

Hi ..Expertise
Consolidation is use to identify duplicate records and merge them into one record.
Harmonization is the process of pushing the new cleansed data back out to your partner systems.
Central master data management means you create records within MDM and then you distribute (Syndicate) this centrally created data to your Remote Systems.
My Question is her after Consolidation both Harmonization and Central master data management is doing the same thing i.e. sending the clean data to the other system. What is the difference between these two? Please explain me with an example or scenario..

Hi Yugandhar,
There are three basic scenarios that we follow in MDM:
Data Consolidation
Data Harmonization
Central Master Data Management
Consolidation :
Conolidation (matching , normalization, cleansing) and storage of master data imported from client system. Entails capabilities to identify identical and similar objects spread across the local systems , build consolidated master data.
Key Capabilities:
1. Cleansing and de-duplication
2. Data normalization including categorization and taxonomy management
3. New interactive consolidation capabilities
Data Harmonization :
In case of Harmonization we generally aim at reaching high quality master data within heterogeneous system landscapes. Here the main focus is on ensuring high quality of master data within the connected systems and then distributing the Master data
Key Capabilities:
1. Automated synchronization of globally relevant master data information
2. New Interactive distribution capabilities
Central Master Data Management :
In case of CMDM, it is not always the scenario that the Client wants to go for the above two scenario`s, but CMDM is always required as it helps us to maintain the Business data effectively and efficiently.
After MDM is put into the business scenario all the operations related to the Master records are done in MDM only. For Eg: Creating a record, Deleting a record, Distributing a record etc.
Now it is the work of CMDM to centrally maintain the data and check that no duplicate enteries can be created.
And all the various systems that are attached to MDM gets the updates from CMDM with the help of Syndication Process or Distribution Process.
Key Capabilities:
1. Central creation and maintenance of data
2. Ongoing master data quality
Hope this would be helpful !!!!!!!!!
Regards,
Parul

Consolidation: What to use?

Hi all,
Hope this finds everyone well.
In any case, we are in the midst of design phase now with the view of running on ECC 6.0.
While BI is part of the project scope, BPC or BCS is not.
We have a requirement to perform both statutory and management consolidation.
We are planning to utilise a non-leading ledger in the New GL to provide us with the consolidation of a each company code.
As for group/corporate consolidatation (all combined company codes), we are unsure as to what will the best solution be to perform consolidation.
Per the advice from our consulting team, we can use BI to perform consolidation.
A few questions:
1. It is true that BI can handle consolidations?
2. How can BI perform the consolidation?
While we realise that BPC maybe the better alternative, it is unlikely that it will be implemented.
Thank you in advance for your responses,
Richard

Hi,
All SEM components are based on BI. The transaction data processed by Consolidation is written to the BI system, which means that the BI system represents the primary data basis for all SEM components. This enables you to directly exchange data between individual SEM components without the need for interim steps or for special objects for exchanging data in BI.
The Consolidation component provides functions to collect master data and individual financial statement data from data files from non-SAP systems as well as SAP systems.
Data from transactional SAP systems (for example, FI-GL) that has been loaded into BI can be transferred as reported financial data to the Consolidation component.
Furthermore, you can load reported financial data from transactional SAP systems directly into SEM BCS without a prior extraction into BI storage.
for more information you can check the following link.
http://help.sap.com/saphelp_sem60ep1/helpdata/en/62/f7e73ac6e7ec28e10000000a114084/frameset.htm
Hope this helps you.
Regards,
Priyanka

Version of Consolidation

Hi all
I want to know wich is the better way to cuztomizing a hierarchy for a group of company that in legal consolidation have 5 company and in managment consolidation have 6 company.
Is it good have two hierarchies in a version? or have a hierarchie per version or is it necesary have other consolidation area?
Two consolidation (Legal and Mngmet) have the same data collection, the same rules interunit elimination, the same validation only are diferent hierarchy and reports.
thanks for your reply

Hi Lucio,
Two consolidation (Legal and Mngmet) have the same data collection, the same rules interunit elimination, the same validation only are diferent hierarchy and reports.
And I would add - they have the same data sources -- the same and one version is acceptable.
In a version you may have several hierarchies of ConsUnits, regardless of number of units in each. All consolidation operations are run simultaneously for all hierarchies in one go. Only Operations on the level 30 (Consolidation Of Investments and supply chain unrealized profit eliminations) should be executed separately for each hierarchy.

Can Multiple Hierarchies for Entity fits into Consolidation? Please respond

Hello Gurus,
Here is a strange requirement from our Buisness Users. We are implementing BPC 7.5 NW primarily for Consolidation.
High Level Managerial Team wants Consolidated Statement by Operational G/L Account (Have only 1500 GL Accounts hence requested to go for Op GL) by Entity (Company Code).
But now they want to compare this Consolidated Actuals with Budget and hence they changed the scope and were requesting to bring in Consolidated Fin Statements by Enity, Account, Profit Center, Cost Center, Functional Area and Segment.
Question 1:
Is this possible to have all of these Dimensions in One Main Application? By the way they are doing Managerial Consolidation.
Question 2:
As Eliminatiosn will be done on Entities, are these Eliminated Results reflects on all other Dimensions like say Cost Center, Functional Area, Profit Center and Segment. Based on my knowledge I have told them they can only see these Dimesions in Reports but dont expect to have the Eliminations done on any of these add on Entities.
They are fine with that but they wish to see Eliminated Results to be reflected by Segment also. Which in other words they are wishing to see Elimnations of Legla Entites (Company Codes) at two different Roll Ups One at Consolidation Group Level and One at Segment Level
Is this a possible scenario or not?
From my understanding that the Entity Structure is maintained with 2 Parent H1 Propetrties. If it is possible can Dynamic Hierarchies will help us in any way?
Kindy help us with quickest possible solution.
Thanks,
BIBPC

Based on my experience of other consolidation SAP modules, especially SEM-BCS and ECCS, for such requirements you would need to defined what we called "consolidation matrix", that is to say create a structure where you need to combine the Entity dimension and the other core dimension (Segment or Profit Center for example). The purpose is that the system would then include both dimensions in the consolidation calculations. Example : the inter-unit eliminations should have to be performed between entities and Segments. So in other words, you would need two dimensions with the type "Entity".
But when you read the official SAP help, it's said that a BPC application can only have one dimension of type "Entity"...
There might be a workaround such as creating another application where you perform you management consolidation. That's for example how they did in the SAP starter kit.

ECCS- PC consolidation

Hi
I am trying to do management consolidation using EC CS. I am defining PC as a consolidation unit and also created the CG. I wanted to to know whether these PC are linked to Compnay in ECCS or we have to define independently of the company codes. Appreciate sharing your knowledge.
Regds
Ideas

Hello,
you have to use integrated data transfer method rollup in order to link the Profit Center accounting with EC-CS.
(realtime update cannot be used)
I hope you find my short answer helpful.
Ciao,
David

Management Consolidation

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