Proportionate Consolidation

Hi,
I am using BPC for financial consolidation and I need to do proportionate consolidation for one entity, say Entity J. What this means is that Entity J is owned 50% by the parent. During the consolidation process, Entity J will upload its full trial balance into BPC but the parent will only aggregate 50% of Entity J's trial balance to the parent entity.
Is aggregating only the proportionate percentage owned of an entity to its parent automatically done in BPC?

Hello Lilia
I appreciate Lilia for posting challenging question , which hardly happens in this forum.
Although I used purchase method, I havenu2019t had opportunity to use proportionate consolidation method (as there was no need in all of my projects). However after going through the new stuff available in SEM 6.0, I think you are right in your conclusions (....earlier reclassifications more simpler and suitable when proportionate share is 50%....)
New innovative way seems to be more technically advanced (unlike in earlier versions proportionate share is maintained at customization level) as it makes use of document type and statistical items to record initial proportionate share as well as subsequent changes.
By the way which version do you use?
Cheers
Ambadas

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Proportionate consolidation advise

Hello experts,
Can anybody give me some advise to implement the porportionate consolidation with BCS?
Do I have to implement all the methods and task indicated on the sap help?
http://help.sap.com/erp2005_ehp_02/helpdata/en/44/8ea67092113abfe10000000a155369/content.htm
Thank you in advance.

Hi Eugene,
I did not undertand why we have to activate the content.
According to the sap note: "Note: When you activate the content in a client, any existing SEM-BCS settings are overwritten"
If we applay the note all the current customizing will be eliminated. We have a new requeriment but we don´t want to eliminate all the actual customizing.
Can you explain it better?? If we need the proportionate consolidation, do we need to apply the note compulsory??
We have 602 sem-bw version, will be neccesary apply the note with this version??
Regards and thank you for your quick response.
Edited by: David Santos on Feb 17, 2009 1:34 PM

Proportionate consolidation customizing issue

Hello,
In order to do the customizing tasks of the proportinate consolidation,
we have followed the help steps of "Customizing for Proportionate
Consolidation (Standard Delivery) / Payables-Receivables Elim.; Minimum
Procedure (1) (Task 7612)"
And we found a customizing issue in the fast entry of the estep 002 of
the method 76120.
We can not add the "Trading partner" in the condition area.
We have check out the customizing of the related layout and it looks right.
How can we add this characteristic? What do I have to change to add it?
Regards.

Hi DAvid, I'm sending you my thread with the answers I've got if you are interested.
(DId not find a way to attach a link so I am sending the text).
Have a nice day,
Lilia
Posts: 11
Registered: 2/14/08
Forum Points: 2
   Proportionate consolidation
Posted: Jul 23, 2008 2:28 PM           Reply
Hello all,
I would like to know if someone uses the new functionality of proportionate consolidation.
I need to use the proportionate consolidation for some companies that are held by 50%.
I studied the SAP solutions and found out that before SEM ver. 6 there were 2 reclassifications: one that cuts off 50% of the amounts of proportionately consolidated company and the second one checks every I/C item that uses a proportionately consolidated company as a Trading partner and reclassifies 50% to predefined item (third parties). So, when you execute I/U Elimination, there are only 50% at each side and they are fully eliminated.
Simple example:
Company 1000 - fully consolidated
Company 1300 - proportionately consolidated
I/U receivables item in company 1000 with trading partner 1300 1,000 USD
I/U payables item in company 1300 with trading partner 1000 (1,000) USD
After first reclass. :
I/U payables item in company 1300 with trading partner 1000 (500) USD
Clearing item for proportionate consolidation (balance sheet) (500) USD
After second reclass.:
I/U receivables item in company 1000 with trading partner 1300 500 USD
Third parties receivables 500 USD
Before I/U Elimination:
I/U payables item in company 1300 with trading partner 1000 (500) USD
I/U receivables item in company 1000 with trading partner 1300 500 USD
After I/U Elimination:
I/U payables item in company 1300 with trading partner 1000 (0) USD
I/U receivables item in company 1000 with trading partner 1300 0 USD
The innovation that SAP suggests nowadays is a new Application for Document types that you use for the first reclassification (Reclassification: Apportionment of standardized financial data )based on statistical items that determine the holdings share. Afterwards you execute the I/U Elimination and after it you execute reclass (Reclassifications: Two-sided eliminations)
I don't see an advantage* of using this new solution in a case there is 50% holding share. I think that the first solution was more simple. The new solution can easily deal with percentage share other than 50% (for example, in case there is 60% proportionate consolidation). If there is 50% you need to update the statistical items.
Does anyone think differently? Did someone implemented the proportionate consolidation?
I would appreciate to get any kind of advice.
Sorry for the long thread.
Best regards,
Lilia
Kodam AV
Posts: 156
Registered: 3/3/08
Forum Points: 290
   Re: Proportionate consolidation
Posted: Jul 25, 2008 6:26 AM    in response to: Jason Ryker           Reply
Hello Lilia
I appreciate Lilia for posting challenging question , which hardly happens in this forum.
Although I used purchase method, I havenu2019t had opportunity to use proportionate consolidation method (as there was no need in all of my projects). However after going through the new stuff available in SEM 6.0, I think you are right in your conclusions (....earlier reclassifications more simpler and suitable when proportionate share is 50%....)
New innovative way seems to be more technically advanced (unlike in earlier versions proportionate share is maintained at customization level) as it makes use of document type and statistical items to record initial proportionate share as well as subsequent changes.
By the way which version do you use?
Cheers
Ambadas
Jason Ryker
Posts: 11
Registered: 2/14/08
Forum Points: 2
   Re: Proportionate consolidation
Posted: Jul 29, 2008 8:32 AM    in response to: Jason Ryker           Reply
Hi Kodam,
Thank you for your reply.
We use BI7 ver. 6 Enh 2.
Best regards,
Lilia
Mariano Rantz T...
Posts: 3
Registered: 9/1/08
Forum Points: 0
   Re: Proportionate consolidation
Posted: Sep 1, 2008 4:07 PM    in response to: Jason Ryker           Reply
the main difference or advantage is that oen consolidation unit could be proportionally consolidated in several groups and method changes are allowed. Beside that, the new consolidation is quite complex.
CU are porportionally consolidated and fully eliminated (afterwards other reclassification correct that effect).
The old recl. workaround was useful only if a CU was proportioanlly consolidated only once.
I am trying to use this new feature (I have follow exactly the standar delivery example but still have problems).
I hope you find this useful.
Mariano Rantz

Step Acquisition in Proportionate Consolidation

Hi Friends,
I am in the process of configuring Proportionate Consolidation. I have configured the reclassification method-76110 with task 7611 (Adjustment to standardized Financial data) as suggested by Standard SAP. But I haven't configured the Methods & tasks of tasks 7628 (Adjustment to statistical Items) and 7627 (Adjustment to equity and Minority Interest Items) as I am not sure about their requirement in proportionate consolidation.
My concern here is how to take it up step holdings in subsequent consolidations as we have have taken a 100% proportion for first consolidation in elimination of Investment and equity.
Example:-
Holding Company Code : 1000
Joint venture Company Code : 5013
% of Holding: 70%
Through Reclassification task 7611, I have eliminated 30% balances and remaining 70% balances taken for consolidation. So I have taken % of holding as 100% in Additional Financial data with balances of 70% equity.
Next consolidation period My % of holding will be changing from 70 % to 80% due to step acquisition of 10% in same Joint Venture-5013.
Since in my First consolidation I have taken % of holding as 100% in my additional financial data, my concern here is how to proceed for elimination of this 10% holding.
Process Steps followed for Proportionate consolidation
1. Data Collection
2. Addfin Data for Investment with % of holding 100% and equity value (Proportionate) but % = 100%
3. Reclssification of standardised Fins data
4.Consolidation of investment
Thanks in Advance
VNK

Instead of taking proportionate equity input 100% and using reclassification function and quantity postings, adjust the % changes in the subsequent consolidation...
Regards
Naveen.KV

IFRS requirement in HFM

Hi,
We have a client requirement which should allow to enter different methods for IFRS and IGAAP accounts in their application.The issue is that they have different percentage owenrship scenario for IFRS and IGAAP. Example : Company B is subsidiary of company A (A is holding 50% shares of B resulting global consolidation method)in IGAAP but A and B are joint ventures in IFRS(resulting proportionate consolidation method).We tried different possibilities by having multiple hierarchy in Entity ;also in Scenario dimension but this does not resolve the client issue
Would appreciate if anyone can throw light how to handle this in HFM.
Thanks .

Look, if you place one entity (say Company1) under two different parents (e.g. IFRS_Group and IGAAP entities), then you can enter different POWN and consol Method for each of the parents.
In your case you would create CompanyA and CompanyB under IFRS_Group like this:
IGAAP_Group.CompanyA Method=Holding, POWN = 100%
IGAAP_Group.CompanyB Mehtod=Global, POWN=50%
IFRS_Group.CompanyA Method=Proportional, POWN=50%
IFRS_Group.CompanyB Method=Proportional, POWN=50%

New features of CPM BSC in version 6.0 Vs version 4.0

Hi everybody,
Does anyone have some information or document about the new features that CPM-BSC has in version 6.0 Vs. version 4.0?
I really appreciate your help.

Hi,
Below are some important changes: -
Consolidation of Investments
100% Disclosure of Hidden Reserves and Hidden Contingencies
Retrospective correction of goodwill within allocation period
New Treatment of Goodwill in Decrease of Ownership
Hidden Reserves in Local Currency
Joint Venture and Proportionate Consolidation
Joint ventures through proportionate consolidation
Monitor in Web based version
Coming with the special release
Copy for all levels of Data instead of 00, 01, 10,12
Interunit Elimination of Profit in Inventory
Beside the traditionally used additional financial data for inventory and supplier a third type of data can be optionally used to model a supplier network based on average percentages per supplier and product group
Interunit Elimination of Profit in Transferred Assets
Sellers and buyer's data can be entered.
3 different transfer types can be chosen: Transfer, In-house production and external sale.
It is possible to enter both sides of the transfer simultaneously, but they can also be entered separately.
Regards

Freight proportionate in condition value

Dear Friends,
I have made fregiht condition as "Header" in M/06 and check for "Group conditions" and then try to create PO and then check
the same it is working .
But i makes its copy and will do anothre freight then if there are more than oneline item system not devide freight as proportionate.WHY??
Regards,
Mahesh.

You are trying to test you assumption and asking why it is not happening. The header condition can be either updated directly or it can be sum of item conditions across multiple items. So you have to enter frieght in the item conditions manually and then get a header level consolidation, the reverse cannot happen. How SAP will know the logic for proportioning, nowhere in the condition type configuration you are mentioning a logic to do this?

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
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Consolidation Rules Formulas

Dear Expert,
When I saw the consolidation example in Appshell Appset and I review the business rule "Consolidation Rules Formulas". That business rule contains the fields like as: Rule ID, Entity Method, Intco Method, All Formula, Group Formula, Minority Formula, and Remark. I just know that the field "Entity Method" and "Intco Method" contains the method code from the business rule "Consolidation Methods".
I have the questions like as:
1. We can input the field "Entity Method" and "Intco Method" only one code or the sequence of code in the business rule "Consolidation Rules Formulas". What is the different that we input one code with the several code ?
2. What is the uses of the field "All Formula", "Group Formula", "Minority Formula" ?
Thank you very much for your answer and I really appreciate it.
Best Regards,

I am very hesitant to agree that merging the Method Based Multipliers will give the same result as keeping them separate, in the IFRS starter kit.
As an example, how will you be able to develop an Elimination and Adjustment Rule that targets Newly Acquired companies and differentiate them from existing companies, in addition to treatment of mergers.
These methods (Leaving, Merger, Step Acquisition, Newly Acquired Purchase and Newly Acquired Equity) are distinguished in the method ID, then grouped through Method Based Multipliers. NOT for the purpose of the equation only (ALL FORMULA, GROUP and MINORITY), but also since the Elimination and Adjustment Rule does not have an Entity Field or Method Field, it has METHOD Multiplier.
To explain, Line one of the Method Based Multiplier addresses Existing Companies that have intercompany values with Existing Companies. Line two addresses Existing Companies that have intercompany values with newly Acquired companies, leaving, merged and so on.
Line three addresses newly acquired companies, leaving and so on with existing companies. and line four, newly acquired, leaving, ect... with newly acquired, leaving, ect...
Now the question is, how will you develop an elimination and adjustment rule that targets newly acquired companies, moves the data from F00 to F01, under the Audit_ID INPUT11, for the consoscope and the same month, then conduct the elimination. Or divested to be moved to F98, in addition to other flow/AUDIT_ID treatment. These are different than Existing companies that will not need to be moved from F00 to F01....
To add to it, how will you be able to differentiate in your ELIM and ADJUST Rules between:
All entities but Leaving
All but leaving, divested Interco
Newly Divested
Step Acquisition
Step Divestment
These methods cannot be grouped in the same method multipliers of the existing companies, as the ELIM and ADJUST rules have their field limitations and run on "Entity Group" as per Ownership Model. Thus the need to have these multiple Method Multipliers, despite having the same ALL_FORMULA, GROUP and MINORITY.
As for ALL_FORMULA, it is usually 1. which means automatically -1. this is to eliminate mainly the amount.
Group formula and minority formula are both referenced in the method multiplier (PCON, PCON-POWN, POWN, ect...) and dictate the amounts that will be posted and eliminated.
Minority is used for Equity type ownership, where the holding company owns less that 50% (since proportionate is no longer used in consolidated). it targets the Retained Earning of the held company (equity owned) and eliminates the value. then it reflects the % of ownership of the RE on the
Minority Interest Account of the Held company's consolidated Balance sheet. So if the holding company owns 25% of Company A, and the NI of the held company is 100 USD, the Minority Field in the formula is dictating that only 25 USD is reflected on the Minority Interest of the consolidated company's balance sheet. Meanwhile, all formula is posting the inverse of the amounts for all accounts and group is posting yet another calculation.

Proportionate Accounting for Joint Venture

Can anybody share with me how to do proportionate accounting for Joint Venture in HFM? We're using HFM9.3.

Follwing are the steps for doing performing custom defined consolidation :
1) define the method of consolidation in Consol Method in the application metadata
2) write the method specific consolidation rules in rules file.
3) in the ownership managment, set the entity as active, choose the method, define the ownership %
4) when you run the consolidation, you will get the desired result.

Error while consolidating. The operation could not be completed.

Error while consolidating. The operation could not be completed. Cocoa error 13. (null)
Got this when I was trying to consolidate some referenced photoshop files. If failed to create a new version as well when I tried to open the files in Photoshop. I rebuilt the the library and it displays and exports both masters and version just fine, but it won't let me consolidate the master to the library.
What gives?

I think that error was due to the fact that I hadn't upgraded MAC OSX after installing it. I have done that now and now I get another error saying the masters are offline.
I found this old thread: https://discussions.apple.com/thread/1965601?start=0&tstart=0 which seems to be the same problem. This is a whole other topic so I will start a new thread, but leave this in case anyone gets the same problem as me. Upgrade your OSX. That's the solution :-)

Ipod consolidated all of my playlists into one

While updating Ipod consolidated all of my playlists into one. And I thought if I got rid of the super playlist it would have to go back to the regular system. The library and all the other playlists are still intact but now it says, "Ipod cannot update becasue there are no songs in the playlist." But there are songs there and there are songs in the library as well. What's wrong? What happened? What did I do wrong?
Ipod-Nano Windows 2000 2GB

Open iTunes prefs -> iPod.
it should be set to Auto update only selected playlists.
Select the playlists you want to go onto the iPod.

F.01 - extract to consolidation on company code level

Hi everyone
We're trying to do an extract to consolidation on company code level (1). When popup dialog "Filename for extraction file" appears we can choose between presentation server or application server.
When choosing presentation server and logical filename ECCS_FILE we get error GC027 (Error opening file c:\temp\EXTRACT_CS_CO.txt).
Doing so choosing application server however works (whereas path isn't the same).
We already checked and double-checked settings of logical file name and logical path in transaction FILE.
Any suggestions what to do or isn't it supposed to work via presentation server?
Thanks in advance and best regards to all
Renaud

I have not seen anything that you have mentioned to enter file path?
Is this being customised for your Company?
How did you download this before?

Best practice data source from ECC 6.0 for legal consolidation in BPC NW7.5

Hi there,
after scanning every message in this forum for "data source" I wonder if there isn't any standard approach from SAP to extract consolidation data from ECC 6.0. I have to say that my customer is not using New g/l so far and therefore the great guide "how to get balances from ECC 6.0 ..." does not fully work for us.
Coming from the old world of EC-CS there is the first option to go via the GLT3 table. This option requires clever customization and the need to keep both GLT0 and GLT3 in line. Who has experiences regarding maintenance of these tables in a production environment?
We therefore plan to use data source 0FI_GL_4 which contains all line items to the financial documents posted. Does this approach make sense or will it fail because of performance issues?
Any help is appreciated!
Kind regards,
Dierk

Hi Dierk,
Do you have a need for the level of detail provided by the 0FI_GL_4 extractor? Normally I would recommend going for the basic 0FI_GL_6 extractor, which provides a much more manageable data volume since it only gives the periodic activity and balances as well as a much smaller selection of characteristics. Link: [http://help.sap.com/saphelp_nw70/helpdata/en/0a/558cabb2e19a4db3097b81bba4fd0e/frameset.htm]
Despite this initial recommendation, every client I've had has eventually had a need for the level of detail provided by the 0FI_GL_4 extractor (or the New G/L equivalent - 0FI_GL_14). Most BW systems can handle the output of the line-item extractors without much issue, but you should test using production data and make sure your system sizing takes into account the load.
The major problem you can run into with the line-item extractors is that if your delta somehow gets compromised it can take a very long time (days, sometimes weeks) to reinitialize and this can cause a large load in your ECC and BW system. Also, for the first transport to production, it is important to plan time to initialize the delta.
Ethan

B1BC - Dashboard de Consolidação

Prezados Boa tarde,
Iniciei a utilização do B1BC e cheguei até o ponto de consolidar Lançamentos Contábeis, consegui exportar e importar o plano de de contas e associar as contas, porém no momento de exportar lançamentos já tem 10 dias que "está processando" e não termina. O problema maior é que não aparecere mensagem de erro, não consigo iniciar novo processo e nem parar o atual.
Atenciosamente,

URGENTE
No Exportar pre-lancamento do setor, dar inicio a exportacao mais no fim dar erro *Failure: Account Mapping is not complete; map all accounts*. O que devo fazer, pois estou tentando terminar a consolitacao das empresas e em todas dar o mesmo erro,
Na parte de Importar consolidação plano de contas, foi todas com sucesso, e outro coisa estranha é que em duas filiais no mapeamento dentro da filia lnao mapeou o ATIVO, só o passivo e recietas.
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Proportionate Consolidation

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