US GAAP consolidation

Our client has multiple company codes in different companies.
The local currencies are different for each country's co codes
Group currency is USD
At year end, when they run financials in F.01, in the consolidation ledger 0L, they first run with currency type 10 (co code crcy) and then with crcy type 30 (grp crcy).
When they compare the fig of bank balance in , say , GBP with grp crcy USD, the exchange rate works out to be ridiculously high- more than double the one maintained in OB08
I would like to know:
1. how to see the USD figures of bank account at the rate maintained in OB08 as on the DATE OF RUNNING F.01
2. whether these can be used for consolidation purpose
3. if some configuraton is required for Special Purpose Ledger
4. if figures in SAP will not show at the rates on date of running F.01, how do we post for the change in value ONLY IN GROUP CURRENCY and not in local currency, so that the bank account is valued at current rate at year end.

Sorry, the first line should read:
Our client has multiple company codes in different countries

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Special depru00B0 : posting scheme not compliant with FR GAAP

Hello guys,
I have implemented the gross procedure for the special depreciation
area (transaction OAYQ) in order to distinguish the increase and
decrease movement types for the special reserve Balance sheet G/L
account. Indeed, the variations need to be detailed into FR GAAP
Consolidation reports for these BS accounts.
I have followed the standard SAP procedure but I donu2019t get the expected
result :
The increase and decrease are cumulated into the special reserve
balance sheet account while the depreciation and write off are
correctly detailed for the P&L accounts of the same posting :
Exemple :
SAP posting scheme :
145000 -500 (BS special depr° account)
687250 1000 (P&L special depr° account)
787250 -500 (P&L special write off account)
Expected result :
145000 -1000 (item with a depreciation movement type)
145000 500 (item with a write off movement type)
687250 1000
787250 -500
Do you have any solution for me?
Thank you in advanc for your help,
Best regards
Pascal MORIZUR

Hi,
please open a support ticket to SAP and request to release note 1013613 for your customer number. This note contains a modified posting line item schema which should solve your issue.
Regards,
Markus

Legal Consolidation - A comparision between Indian AS, IFRS and US GAAP

Hi Experts,
Can any one shed light on the above subject? My Client is based out of India and has business spread across US and Europe. Are there any significant variations between these standards?
Thanks in Advance.
Points will be given.

Hello Harikrishnan,
To start with, there is nothing like legal when it comes to consolidation. We prepare Group accounts to take into account the increase/decrease in the shareholders funds of the parent company. In doing so we follow rules which are generally accepted at local country level also known as GAAP or at an international level also known as IAS/IFRS.
Companies own companies and the parent company is required to pay taxes on the global profits and parent company's country of incorporation is used as tax base.
My understanding of Indian Standards are limited and therefore providing information only for US GAAP and IFRSs.
Accounting rules in the US is heavily controlled especially post-Enron collapse. The have legislation to govern and investigate anything that is not correct. While US GAAP is pretty much in line with overall impression of standards, some rules vary like treating the value of inventory and recognition and derecognition of property, plant & equipment also known as Tangile Non-Current Assets. It is not possible to give you full explanation but some rules varies.
With the full comprehensive development of International Standards, more and more countries are following IFRSs to local GAAPs. In many countries like Australia and New Zealand, they just added country names before the IFRSs and made that their local GAAP to avoid confusion and differential treatments.
Hope the above would be helpful.
CONMJI

Consolidations(GAAP)

Hi gurus,
My client is on ECC6.0.The new GL accounting is not activated.They want to go for the consolidations and GAAP with two things.
One is with Special purpose ledger and the other one is creating a new company code.
Can you suggest which one is the best to maintain my client GAAP(US,China,Japan and Germany) reporting?????

Hi Santosh,
The best way would be to go for consolidation with Enterprise controlling, a couple of things would be required like Group chart of accounts, additional Ledgers, Consolidation units Flow of posting from FI ( say Roll Up etc) , Financial Statement Version, Account grouping, Account assignement etc. You can have inter-company eliminations.
Consolidation relies much on Report painter reports. New GL activation is not required.
Hope this helps you.
Regards
Bharat

Load transaction data from ECC to BPC 10.1 using US GAAP starter kit SP3

I need to understand a bit more the process to load transactional data into BPC 10.1. We have US GAAP Starter Kit SP 3. Below is an screenshot from the config guide:
It explains how transactional data can be extracted from ECC system to the SAP Netweaver BW data source 0FI_GL_10 and then transform it
to get it loaded into BPC. The Objects /PKG/FC_C01 and PKG/FC_DS01 are just mentioned here as reference because they come in the RDS for Financial Close and Disclosure Management, which not all companies have.
I believe the upwards data flow should be from Data Source 0FI_GL_10 to Data Store Object 0FIGL_O10 and then to InfoCube 0FIGL_R10. There is also a data flow that goes from 0FI_FL_10 to InfoCube 0FIGL_R10. Can anyone with experience with US GAAP starter kit answer this?
Thank you.

Hello, we were able to load actuals to our environment with the US GAAP Starter Kit, SP03. I followed the Operating Guide document up to section 5.2 and ran the Consolidation Data Manager Package with no issue. We are using the A20 Input and A20 Consolidation process flows based on flows F00, F10, F20, F30, F99, etc... According to the documentation, the Statemnet of Cash Flow and Changes in Equity should be automatically calculated and available from the changes
in Balance Sheet accounts once Consolidation is completed . However, when I ran the corresponding reports, they bring no data.
We loaded actual data for the whole 2013 and Jan 2014. Our intention is
to run the first consolidation for Jan 2014. The closing balance for period 12.2013 in flow 99 was copied to flow 00 2014 (opening balance). Flows 20 and 30 were updated with the corresponding balance sheet movements (increase/decrease), according to the delivered controls in the starter kit. However, cash flow is still showing no results.
I found the following text in the operating guide, but I am not clear if I am missing a step. Can you please clarify? This is telling me that I need to copy my 01.2014 opening balance (F00) to 12.2013 closing balance (F99, which is done by the copy opening data manager package, but in the opposite direction, from Y-1 F00 to Y F99) and in addition to also copy that balance to 12.2013 F00 (previous year opening balance)??
"5.2.2 First Consolidation
When operating the consolidation for a given Scope for the first time in the application, it is necessary to populate and process the prior year-end time period for this Scope, in addition to the first required consolidation period. This is because the flows dedicated to the scope change analysis are properly populated by the consolidation engine provided that at least one automatic journal entry has been detected in the consolidation used as opening consolidation, which by default is the prior year end (December, Y-1). To accomplish this, it is recommended that you copy all input-level opening data of the first required consolidation (flow “F00”) into the closing data (“F99”) and opening data (“F00”) of the prior year-end time period, including intercompany breakdowns.
This breakdown by intercompany in the balance sheet triggers automatic eliminations, which are carried over to the closing position. After the consolidation process, the closing data of the prior year
end time period will contain the appropriate source data for the opening data of the following consolidation, notably the opening automatic journal entries.

Lega consolidation package error

Hi experts,
We are executing the legal consolidation package and we get next error:
"Accounts and entities do not match data in application OWNERSHIP failed"
We have entered the ownershipdata, but the "ultimate ownership calculation" package did nothing, so we guess that is the problem.
Did it happen to anybody? How can we solve the problem?
Regards.

David and Jorge,
Thanks a lot for your reply.
Yes, we followed the procedure decribed in the How To Paper on NW Consolidation.
I will create the message tomorrow. Strange, that there is still no reply from SAP to your message. It is time to escalate the issue.
Were you able to run calculation of Group Shares (CALCOWN) before execution of the Consolidation Package?
There are various sources of information on the function:
On the help.sap.com
"The calculation of PCTRL in the business rule table is supported as same as itu2019s in BPC5.1, however the automatic calculation scripts of PCTRL (% of control) from investor/investee ownership percentage is not supported in the BPC 7.0 version for NetWeaver, so This means the user mustneed manually input the PCTRL % into the ownership application in order to use it for further calculations."
How To Paper
Step4: Run the pre-delivered DM package u201CCalculate Ultimate Ownershipu201D to calculate the ultimate ownership that how much each consolidation group own on each entity. As a result that write back after calculation, the ultimate ownership is stored under the member u201CI_NONEu201D of IntCo dimension, and POWN, PGROUP, METHOD member has the group-own-entity value
described above.
Traing Materials:
Ultimate ownership is a function for legal consolidation used to perform certain calculations used by he application (primarily in regard to calculating the group share of a subsidiary). This information is needed by the business rule library to
properly consolidate the operations of various subsidiaries in accordance with GAAP.
Customers may decide to also enter the direct and indirect pown values instead of having the system derive them.
The concusion is that we can enter Group POWN data manually. We can execute the function, we get a message "Could not write the transaction data successfully. No data found.' Do you have the same problem?
The second question is whether we need to enter PCTRL?
Best regards,
Mila

Indirect Cash Flow from Consolidation (EC-CS)

We want to produce consolidating cash flows from SAP and are considering 3rd party solutions as well as inside development. We have multiple foreign currency entities and must follow U.S. GAAP.
Has anyone used the 3rd party solution from Buehrle at http://www.kapitalflussrechnung.com/en/ or other 3rd party solutions?
Any leads would be appreciated as well as comments on your experience.

Andrew Koszyk,
We have recently implemented SEM BCS for a global company with more than 100 company code spanning across globe and multiple currency.
We were able to get best reports using Bex analyzer , infact we created a dash board for cash flow ,we were able to get cash flows for various segments, groups, subgroups, and consolidation cash flows.
We created structured reports using Bex and with a combination of excel work book and simple excel formulae ( not Macros) we were able to get the cash flow reports.
Try implementing BW and pull the EC CS data to BW and use Bex report to create the consolidtion reports.

BPC - Consolidation - Data Loading - Will BS/PL accounts data ONLY be loaded from ECC?

Dear All,
In BPC, when we load data from ECC for Consolidation, my understanding is that we load only BS and PL accounts' data for/by the entity.
Apart from BS and PL data, will there be any data that will have to be loaded into BPC for consolidation?
The following three financial statements -
-Statement of Cash Flow
-Statement of Changes in Equity
-Statement of Comprehensive Income
are actually derived/calculated from the loaded BS and PL data. This is my understanding. Pls. correct me if I am wrong.
Thank you!
Regards,
Peri

Hi Peri,
Balance sheet, PL and those three financial statements are derived from BS/ PL accounts, however, there should also be "flow" information. Otherwise you won't end up with a correct consolidated cash flow or equity movement. ( or you can prefer to enter flow detail manually)
Second thing is, while getting BS & PL accounts, you will also need trading partner detail, otherwise you won't be able to do the eliminations. (or you can prefer to manually enter trading partner detail for intercompany accounts)
Thirdly, you should also consider other disclosures. (Depending on what standart you are implementing - IFRS, US GAAP, Local Gaap whatever...)
Hope this gives an idea.
Mehmet.

Leading ledger can be local GAAP? Pros and Cons. 1 company code scenario

My client /the company uses 2 GAAPs: local GAAP and IFRS.
I have read that "the leading ledger is based on the same accounting principle as that of the consolidated financial statement. It is integrated with all subsidiary ledgers and is updated in all company codes (if posting is not ledger specific)."
If we have only 1 company code can we have local GAAP as the leading ledger? What are the pros and cons?
Arjan

Hi,
Local GAAP must be a leading ledger because country you are operating your business will require wide reporting like financial statements, tax registers, stock registers. So, primary posting will be related to your local GAAP which will be directed to both leading and non leading ledger. If there are certain things which are required to be altered then you can post the differences exclusively to the non leading ledger using transaction FB50L.
Keeping Local GAAP as non leading ledger will require huge posting of adjustments.
Regards,
Chintan Joshi.

Waht is legal consolidation?

Dear All,
What is legal consolidation?
What are the stept to do this?
b.s.rao

Rao,
Around the globe are volumes of legal regulations, or the equivalent, which require the reporting of consolidated financial statements and determine their contents. In addition, similar reporting regulations exist for listings on certain stock exchanges. In some cases, these consolidation regulations require (only) one consolidation on a legal entity level, but more in-depth details for particular statements. This is callled legal consolidation.
The statutory consolidation(Legal consolidation) requirements depend on the legal and taxation regulations in the country of the parent company. In complex structures of corporate groups, these requirements may differ from group level to group level. In many cases it is sufficient to include the legal entities as consolidation units. For groups that report according to US GAAP or IAS, business segment reporting is also required. Most local accounting principles also demand business segment reporting from companies listed on a stock exchange.
Hope this helps you.
Rgds
Manish

General consolidation questions - HFM

1. Is it possible to consolidate in one application according to 2 different gaap's? IFRS, US GAAP?If it's in 2 application what is the way to connect between the application?
2.is it possible to consolidate the hierarchy with 2 currencies, where the data is saved? do we need different scenario? different hierarchy? different application?
3.if we want to create journals in <Parent currency adj> is there a way to copy the journals automatically to all the hierarchies?
Thanks,
Edited by: user10194788 on 05:00 28/08/2008

1. How are you separating the gaaps? If you have a different entity structure, then the answer is yes and it is very easy. If you need to do some custom consolidation, then you will need to write your own consolidation method in the rule file and it becomes complicated quickly.
2. If you run a force translate after you consolidate, then you can look at any entity in any currency.
3. If you do an entry in Parent Curr Adjs, the entry applies to the entity in every hierarchy.

BCS regional consolidation reporting

For a company headquartered in US , the consolidation is done as per USGAAP rules
However there is regional consolidation needs to be done for :
Japan
Europe
China
What is your experience on regional consolidation reporting requirement. Is all consolidation function such as COI function to be done for regional consolidation also. If there any fiscal year variant change requirement, how it is addresses.

Hi Mani,
when you say region consolidation do you mean consolidation as ler local GAAP or do you mean consolidation rollup by region.
IF you mean regional consolidation rollup . The BW heirarchies can handle this or can be handled in report itself with attributes of the company. The regular COI function will take care of it also.Fiscal year variant will be ar driven by parent company in this case.
If you mean regional consolidation as per local GAAP then it is different ball game .
Let us know.
Thanks and best regards
Sekar

Equity Method Consolidation

Dear All,
How to define equity method consolidation rules in BPC 7.5 as per Indian GAAP.
Regards,
Kalpik

Thanks Halim,
I am not using consolidation unit combination. It is only Legal Consolidataion. However, I have fixed the problem by changing the master data of consolidation unit. I have enabled FCEP.
I have one more question. Do I have to run Consolidation Group Change Task also when I am switching from Equity method to Purchase method for Associate companies?
When I am changing from Equity to Purchase method all the previous C/I postings are reversed, but the profit of Associates which was already accounted by holding company in the previous period is transfered to Net Income-Method Change and second effect is given to Goodwill (GW is enhanced).
Hence, post change of method, when I upload TB of Associate, the Net Income is not eliminated to the extent of the profit Adjusted on account of Method change.
Please suggest,
Thanks,
USR

Translation / consolidation cannot be completely correct conducted

hi,
has anyone the similar situation as us?
Base entity (value: EUR) ->parent company 1 (value: USD) -> parent company 2 (value: EUR)
the consolidation and translation on the first level (parent company 1) are going well. But if we wanna a consolidation on the second level (parent company 2, which has the same value as the base entity), the value cannot be always correct translated from bottom to top, namly from EUR to USD and then to EUR again.
Now we have to force translate every time after consolidation.
Anybody has a better way? Any advice would be highly appreciated.
thanks in advance
kind regards

This doesn't make sense, so we need more details. If you have an entity hierarchy:
Parent2 (EUR)
- Parent1 (USD)
- Base Entity1 (EUR)
Then upon consolidation of Parent2 you will find BaseEntity1 gets translated into USD (you will see this in it's parent currency), and it's contribution total goes to Parent1 in USD. Parent1 in turn gets its <Entity Currency> which is in USD translated into EUR which is its parent's currency, and in turn contributed to Parent2. You should see this without need to force translate.
Now it's possible that EUR to USD back to EUR may be a different value than you started with, depending on your GAAP rules, and any possible adjustments or eliminations, so please elaborate on your example and perhaps we can assist.
--Chris

DATA TRANSLATION FROM GAAP TO IFRS USING BFC STARTER KIT

Dear All,
1.Does the Starter Pack provide data translation from GAAP to IFRS especially when the underlying GL is a non-SAP GL?
2.What are the specific u201CAutomated controls, business rules and calculationsu201D that are performed in the starter kit as stated in the presentation?
3.For banks not using SAP ERP, what combination of SAP solution will you advise that they take and why, if they must beat the January 1, 2012 deadline.
4. Where SAP GL is in place, what relevance will the IFRS Starter pack provide?
5. Can't I just build a universe in BOBJ to do the data translation from GAAP to IFRS and display the report in the IFRS format?
Thanks for your advice

Hi and sorry for the late answer.
You may find answers to your questions in the paper about "IFRS adoption in consolidated statements with BOFC".[http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/30effe30-6c44-2d10-c48a-fb26102b0bf6]
Be aware that BOFC is a consolidation product, it doesn't cover the same areas as the GL.
Regards
JF
Would you need further information, or real-time update on all new IFRS/XBRL assets for SAP BusinessObjects solutions I would recommend you join the following social media:
- Facebook http://www.facebook.com/sapifrs
- Twitter http://twitter.com/SAP_IFRS_XBRL
- LinkedIn http://www.linkedin.com/groups?mostPopular=&gid=1851849

US GAAP consolidation

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