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

Similar Messages

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.

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

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.

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.

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.

BPC v7 for Legal and Tax Consolidation

We need to save data by year using the legal organization structure and currency rates in place in that year. It needs to be saved for at least 11 years for annual report purposes and tax audit purposes. There are over 2000 entities including parents in any one years org structure. Has anyone dealt with large entity hierarchies saved for multiple years? What is the best way to handle a situation like this. I know that in Hypereion Enterprise you can consolidate different years data with different organization structures but I am not sure that BPC can handle this.

SAP BPC's Legal consolidation provides for this very issues. If you can have a look at the IFRS Starter kit for BPC 7.0, it has already the org structure that can change from period to period. The actual hierarchy itself does not change over time, but the way its consolidated is driver by an application called Ownership in which group structures can be defined.
This will allow you to define structures that are impossible to represent in a traditional hierarchy, eg Joint venture owned by a company's two subsidiaries.
In the IFRS Kit, there is documentation describing how consolidation works in this way.
This same functionality is available in both MS and NW version.

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.

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

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.

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

BPC and Financial consolidation

Dear All,
I would like to understand what is difference between BPC and Financial consolidation.
I have a client who wants to implement only consolidation in system and we would like to know which product to implement BPC or Financial consolidation.
Is there any advantage/ disadvantage if we go ahead with BPC and not Financial consolidation.
Regards,

One major difference which BPC has over their competettor product is
"BPC is a unifed application for finacial planning , forcasting , budgeting & consolidation."
if u thinking to use other functions apart from consolidation like planning etc ... then BPC is the go forward path for u
Edited by: Aalok Kumar on Jul 2, 2009 8:18 PM

BPC backup and restore Q&A...

Dear all:
See below, and please share your knowledge!
Situation
We are in the phase of modifying existing structure. We would like to back up what's in the Production server, and restore onto Development Box and develop and test our modification there using the latest data we have.
Data
We have a production server, which SQL service and BPC service are running on separate physical server (as I was told), and a development box, which SQL and BPC are running together in one box.
A_PRODUCTION is the App Set in the Production Server
A_DEV is the App Set in the Development Box.
Below are what I have done and failed:
1.
a. I used "Server Manager" to back up A_PRODUCTION.
b. I then copied and pasted the backup folder (in which has Web, File, SQL etc sub folders) to the Development Box.
c. I used "Server Manager" to restore by selecting the backup folder. The Server Manager was able to allocate all the backup files and SQL db.
d. My Web and File folders are OKed during restore, but my SQL restore failed with an error message.
2.
a. We tried to open SQL Server Management Studio, and manually restore the A_PRODUCTION SQL backup (*.BAK) to A_DEV of Development box.
b. We received the error message, System.Data.SqlClient.SqlError: RESTORE detected an error on page (0:0) in database "A_PRODUCTION" as read from the backup set. (Microsoft.SqlServer.Smo).
c. We went to option and checked "Overwrite existing database" and still failed to restore.
3.
a. I logged on to Development Box's BPC Web Admin, and tried to create an App Set that has the same name A_PRODUCTION as my live database in the Production Server.
b. The App Set creation failed at OLAP service with an error message saying something about "SalesPerson" column was not found or something.
c. I noticed that a database named A_PRODUCTION is created Development Box.
d. I tried method 1 and 2 again to A_PRODUCTION of the Development Box and failed.
Question
What is wrong with my approach?
I have referenced the document https://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/20a26f50-4252-2a10-8c97-a2c7058cd804, and am confused why we have to backup the master database.
Secondly, in the document, quoted "Restore Microsoft SQL Server 2005 Database(s): Restore the most recent database backup for APPSERVER, and each of the application set databases.
(ApShell/ApShellExtra)", what is the difference between "the most recent database backup for APPSERVER", and "each of the application set databases"?
At last, in the document, quoted "You must use an u2018Open File Agentu2019 to backup Data files that may be in use by the web server.", what does it mean by using an Open File Agent? Is it a type of agent in SQL backup service, or an agent in general that is able to back up open files?
Thank you!

Kranthi and Akim:
Thanks for the reply...
Kranthi: With BPC Admin ID, I did go back to *BPC Administration\Manage Security* and re-saved the configuration, and I did see the table update in *Database Engine\AppServer\tblAppSetAccess*. I could then grant my Windows ID rights to "everything", but was only able to access BPC Administration.
Akim: Can you be more specific about delete/recreate orphaned users? Did you mean deleting/creating via SQL Analysis Services AppServer\tblAppSetAccess, or via BPC Administration\Manage Security? In addition, when you mentioned "reset permissions from the application itself", did you mean to modify Task, Member Access Profile, Team, and User, and re-save them again with the same settings?
I am sorry that this thread has become longer than expected. Here are some updates:
1. I have two Application Sets which my Windows ID can access: AppShell (default) and App_Dev
2. I tried to create a new Application Set "App_Dev1" by copying from App_Dev (unchecked database,biz process flows, content library, and live reports). Then I logged in as BPC Admin and added my Windows ID to the System Admin Team, which was modified to have full access to everything. Again the same problem occured -- I could access App_Dev1's BPC Administration area but could not access BPC Excel; same error messages popped out.
3. I tried to create a new Application Set "AppShell1" by copying from AppShell (same unchecked everything). Then I logged in as BPC Admin and added my Windows ID to the System Admin Team, which was modified to be able to access everything. Same result as #2
4. I tried to add myself to the System Admin Team of original AppShell, and I could open BPC Excel.
My experiments so far concluded the followings:
--No problem with App_Dev and AppShell in the Development Box
--I could grant myself access to everything in any new Application Set, but only was able to access BPC Administration
--BPC Admin ID and my Network Administrator (Domain Admin)'s Windows ID has no problem opening BPC Excel in any Application Set.
What concerns me now is that even a copy from AppShell is not working as expected... My Network Administrator said it is not an easy process to reinstall BPC Development Server, but I think that's perhaps the only way to fix everything, if the root causes remain mysterious.
If you have any insightful tip, please share with me as I have spent over a week and cannot progress further... Thank you!!!!
Brian

BPC Mass User Management Tool in BPC 10.0 NW-Version Component Error

Hi,
We have a problem when importing request K900024.RBP and R900024.RBP.
We changed the UJ_STRING in "DATA: lv_value TYPE uj_value" in the source code as recommended at BPC Mass User Management Tool in BPC 10.0 NW
Unfortunately, when we try to import CSV files we receive a error message "BPC Version Component must be 800". Our is 801.
Where can I find this files or its upgrades? Is there a SAP link?
Can anybody help us?
Best Regards,
Ana Teresa

Hi Ana,
See note https://css.wdf.sap.corp/sap/support/notes/1861347. You should solve this issue.
Best Regards,
Charlie

Difference between BPC 5 and 7 ms

Hello all,
I have found documents about the bpc 7ms but however im looking for whats the difference between bpc 5 and bpc 7ms systems, new features and so on. Do anyone have information about this. Please Share =)
Cheers
Jojo

hI,
Right now BPC 5.1 is going on in the market, and BPC 7.0 NW version is in rampup.
BPC 5.1 is the Microsoft version which uses the microsoft tools (Excel,powerpoint,etc) and the backend is SQL server, while BPC7.0 will be having both Microsoft version and Netweaver version.Here Microsoft version will be same as for BPC 5.1 with some advancements,while for NW version the backend will be BI.
Between BPC 7.0NW and BPC 5.1
What is In
Integration with NetWeaver BI
Increased dimensionality
New Validations engine
Integration with BI Accelerator
Improved dynamic templates
Lifecycle Management (transports)
Statistics framework for monitoring
64-bit ABAP A/S support
Database neutrality
Debugging capabilities (ABAP only)
What is Out
BPFs
Books
Drill-Through
Dynamic Hierarchy Editor
Insight
SQL-Logic in Script Logic
Some EV functions
Ability to rename a member, delete a member being used, reduce the length of a property
Custom Menus
Thanks,
Anila

Re: BPC; Legal and Management Consolidation

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