When do we use legal consolidation?

Hello Experts,
Can you explain what is meant by legal consolidation & when do we use legal consolidation?

Hi,
legal Consolidation is financial process for public companies are required under law to consolidate their accounts of their entire operations across globe to present a single view of their business.
In simple terms, legal consol is a process where all the operations are consolidated under the parent entity by looking at its economic interest in its daughter companies. The parent company has an ecomonic interest in the profits of its subsidiary companies as a result of its investment in them. so you consolidate against pre-determined rules.
Thanks,
Sreeni

Similar Messages

  • Currency and Groups Dimensions in Legal Consolidation, BPC 7.5

    Dear BPC Experts:
              I am using BPC 7.5 NW SP03, and building Legal Consolidation now. According to the SAP Library,http://help.sap.com/saphelp_bpc75_nw/helpdata/en/bpc_nw_index.htm, it says in 7.5, the currency and groups dimension are required and should hold currency members and consolidation members seperately. I have couple of questions about this design.
    1. Are GROUPS and CURRENCY dimensions both included in Legal Consolidation Application at the same time?
    2. How to move data in currency diemnsion into corresponding members in GROUPS dimension?
        For example: THe GROUPS member, CG1(its currency is USD). How to let data in currency USD move to CG1.
    3. In Legal Consolidation data package, should I modify the prompt dimension from CURRENCY_DIM into GROUP_Dim?? cause 7.5 has CURRENCY dim in its package setting at default. However, the consolidation package is based on GROUP perspectives.
        Does anyone give me any idea in it? I really appreciate your help.
    Best Regards,
    Fred Cheng

    Hi Collet,
    Thanks for such a quick response. Based on your answer,
    The group-type dimension is used for storing the group component of legal consolidation. The group-type dimension represents the relationship of entities for a given consolidation result. This group is consolidated in a single currency, so there is no need to have another dimension. As of Planning and Consolidation 7.5, you can continue to use the currency-type dimension for this purpose, or you can split it into a group-type dimension (type G) and use a pure currency-type dimension (type R) to allow reporting in multiple group currencies.
    If at all I go by that will that be sufficient to have only Group Dimension and ignore RptCurrency field in BPC 7.5?
    As of now I am having my Group Dimension looks like this.
    Member ID          EVDESCRIPTION        GROUP_CURRENCY        PARENT_GROUP      ENTITY
    G_CG1                XXXX                          USD                                                                 E_CG1
    G_CG2                XXX                            USD                                   G_CG1                   E_CG2
    G_CG3                XXXX                          USD                                   G_CG2                   E_CG3
    So now do I need to enter any RptCurrency Members under Group Member ID column to have RptCurrency ignored once for all. By the way our RptCurrency and Group Currency is USD only.
    Please advise as right now we are not able to have Currency Conversion Functioning properly. I mean when I executed FXTRANSLGF, I am able to my DM status as Successful but saying 0 Submitted   0 Success   0 Fail
    I am unable to crack this. I tired playing Groups and RptCurrency but same result. Successful but no records. We have maintained all Exchange Rates corrctly.

  • Intercompany Elimination is doubling after running Legal consolidation

    Hi BPC Guru's
    Intercompany Elimination is doubling after running Legal consolidation Data Manager Package 2nd time tripples when run 3rd time and so on..Only change is that for resolving an issue with balance carry forward, we had changed the datasource type property for the audit trail members that store the eliminated amounts ealier this was A (Automatic) we changed that to (Manual) M and this is causing the doubling to start because if i change it back to A then there is no doubling..but the eliminated values are incorrect.
    Would be great somebody provides with their expertise.

    Hi Arnold,
    This issue is related to another issue that was discussed on the http://scn.sap.com/thread/3247090
    Till December all was well. Come January, after I run the consolidation package, the rule takes into account the balance from December for each month’s calculation:
    There were 2 suggestions from the above post that i tried:
    Check if “COPYOPENING” property in the Audit Trail dimension should not be “Y” -> It was Y for me but changing it to “N” did not solve my issue.
    Opening Flow should be assigned “FLOW_TYPE” property with the value of “OPENING”
    Both these are done in my system. But still the above issue exists. I also tried to change the rule to “Periodic” type but did not help.
      What I basically want is for BPC to ignore the values from previous year and run the calculation based on only the current month’s data.
    When we first faced this issue during January closing, as a temporary fix, we changed the “DATASOURCE_TYPE” property of the audit members used in Eliminations from A to M. This made the rule not consider December balances in the calculation.
    But doing this gave rise to the doubling issue.
    Any suggestions?
    Regards,
    Shruti

  • 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.

  • Legal Consolidation

    Dear all,
    Does ECC 6.0 support Legal Consolidation or do I have to use SEM and BW?

    Hi,
    Legal consolidation is a term to represent the form of consolidation that is normally by company.
    This term is used by SAP as a general terminology. In terms of the SAP product, SAP offer 4 version of product to perform the legal consolidation.
    First product called FILC - Financial Legal Consolidation. This is refer to the first SAP consoldiation product which is curently outdated.
    Second, it's ECCS. The development of this product has been stopped I believe. But in terms of completeness, I would say that this is the very mature product. You still can use this product if you're at maximum R/3 Enterprise version (4.7).
    Third one, is the transition product between ECCS and the 4th product (SEM BCS). This transition product called R/3 based consolidation. You can use this product when you're in 4.7 and above.
    Fourth product is SEM BCS. This product is purely built on top of BW instance. I would prefer that you use this consolidation product when you are using at least ECC5.
    So, in your case, if you're using ECC6, then I would recommend you to use SEM BCS.
    Hope it helps.
    regards,

  • Legal consolidation reset values

    Hi All
    My legal consolidation package behaves strangely.
    I input my data for consolidation on COM_RAW datascr which has is_CONSOL to Y and DATASCR_TYPE to I.
    In my businnes rules I used COM_RAW as source datascr and ELIM1 as destination datasrc which has  DATASCR_TYPE  A.
    After run my package no entries are generated (0submitted......)
    But when I changed COM_RAW DATASCR_TYPE to A  all values on COW_RAW have been reset- set to 0. On ELIM1 which has DATASCR_TYPE set to A nothing was generated.
    Do you know why this happen?
    Regards
    Justyna

    Hi Justyna,
    the datasrc on which you enter/load your data has to be type I, so the intial setting was correct. Once you change it to type A the system expects that it needs to calculate the values and that there should be no LC values, so whatever you entered gets deleted.
    As to why the package did not post anything, I can only guess. One potential problem is the ownership information, the system will only created posting if the ownership information is correctly maintained.
    Regards

  • Just my own curiosity on Legal Consolidation

    Hi Everyone,
    Iu2019m curious and hope to see some good feedback here.
    How many people actually know and have experience performing legal consolidation with BPC.
    Anyone in America?
    Anyone with BPC 7, Microsoft or Netweaver?
    Thanks for your feedback, I'm sure many other are curious about this.
    Fletch

    At the outset, let me say that we did not have to do Intercompany profit elimination on this project.  But my BPC mentor had a few suggestions.
    The scenario is company A produces 100 units of Product X for $100 ($1 per Product X - Cost of Sales) and sells it to Company B for $200 with mark up price ($2 per Product X u2013 Sales). Now Company A has sales of $200 while Company B has COS of $200 which will be easily eliminated by intercompany elimination. But now Company B has $200 worth of Inventory (Assets) when it should be actually only $100 thus inflating the assets. Is there a business rule to eliminate inventory/asset of this kind?
    If certain assumptions can be made, you could eliminate the 'imbalance' of COS and sales to the inventory account.
    Also now if Company B sells 80 units of Product X, 50 of which are from the ones supplied by Company A while the remaining 30 are bought from somewhere else. So now company B is left with 50 units of Product X (that was bought from Company A) valued at $100 (when its actually $50). How do we evaluate inventory in this case (remember there might be hundreds of such transactions happening in the company, multiple products being bought from multiple inter-companies at different prices)? How do we eliminate the Inventory profit because of stock transfer? How do we track all these stock movements?
    In cases such as the above, I would rely heavily on using movement types to track stock transfers.  You then have the option of using formulas.  An alternative would be to (a) store the profitablilty of the products in the system,  (b) pull down the requisite movement types into an excel template within BPC, (c) let excel calculate the appropriate profit to be eliminated (d) send these profit figures to the system to actually perform the elimination.
    The above are just different ways of thinking about/tackling the issue.  You would have to test it out!
    All the best
    Tara

  • Journals posting on legal consolidation application

    Hi friends,
    created legal consolidation application.  Elimination are happening as per expectations.
    Created journal template in above application. But when i try to create journal entry, system not created .
    At status bar able to see, jouranl id. But it's not exising when i try to post using manage journals option.
    Is it  possible to create journal entry on application type(consolidation). ?
    But i'm successfully posted journal entry on applicatioin of type(financial).
    thanks,
    naresh

    Hi,
    Yes! You can post journals on consolidation type application.Why dont you compare application parameters with financial type application where you were able to post journals.
    Hope it helps...
    Thanks,
    Raju

  • I bought my iPhone 4 open line in Vancouver, Canada last week for use here in my home base in Bangkok, Thailand.  But when I tried using my Thai sim, I get a very weak signal, if not a weak signal, then a no service status.  What do I do?

    I bought my iPhone 4 open line in Vancouver, Canada last week for use here in my home base in Bangkok, Thailand.  But when I tried using my Thai sim, I get a very weak signal, if not a weak signal, then a no service status.  I also have very weak wifi reception.  What do I do?
    I already tried the following:
    a. Turned the phone off and then on.
    b. Checked all wifi connections – no problem given that all our laptops and desktops can connect seamlessly.
    c. I tried restoring the phone to original factory settings via itunes
    d. Tried resetting the phone.
    e.     Tried different microsims from all networks
    f. However, all methods failed given that the network reception is very weak and often reflects – “no service”.  And with regards to the wifi reception It has difficulty in reading even the signal right in front of the wifi router.
    I went to two Apple resellers here in Bangkok and requested that they please look at my Iphone and have it serviced.  I was frustrated when they said that given that I bought my phone in Canada, they are not able to support me and should instead try to contact the Apple store in Canada. 
    I went to apple.ca website and went to the expresslane support and I was said to register and callback.  Tried calling the 1800 number but given that I was in Thailand I had difficulty getting a connection.

    1st sentence, 4th page of the iPhone warranty found here:
    Apple may restrict service to the country where Apple or its
    Authorized Distributors originally sold the hardware product.
    From the Repair terms and conditions found here:
    9. Availability of Service.
    Apple may restrict service to the country where Apple or its authorized distributors originally sold the
    hardware product, and to the countries listed in the table below. A list of authorized distributors is
    available online at:
    http://images.apple.com/legal/warranty/docs/iPhoneAuthorizedDistributors.pdf
    If you do not believe that, then see these search results which confirm my statement.

  • BPC 5 - Best practices - Sample data file for Legal Consolidation

    Hi,
    we are following the steps indicated in the SAP BPC Business Practice: http://help.sap.com/bp_bpcv151/html/bpc.htm
    A Legal Consolidation prerequisit is to have the sample data file that we do not have: "Consolidation Finance Data.xls"
    Does anybody have this file or know where to find it?
    Thanks for your time!
    Regards,
    Santiago

    Hi,
    From [https://websmp230.sap-ag.de/sap/bc/bsp/spn/download_basket/download.htm?objid=012002523100012218702007E&action=DL_DIRECT] this address you can obtain .zip file for Best Practice including all scenarios and csv files under misc directory used in these scenarios.
    Consolidation Finance Data.txt is in there also..
    Regards,
    ergin ozturk

  • Problem with Legal Consolidation for Journal

    Hi BPC Friends
    I have the application icmatching with data and I have written other values with Journal.
    I have run the package legal consolidation.
    I have this problem:
    for the value that I have loaded into the application, the logic consolidation works correctly, indeed it writes a new record with different datasource
    but for the value that I have written into the application using the Journal the logic doesn't work correctly, indeed it writes into the database a new record like the original but with contrary value so I lose also the value that I wrote with the journal
    Could you please help me?
    thanks
    regards
    Michele Medaglia

    Hello Michele,
    Basically what ever data that you input in journal as long as the selection on xdim is fulfilled the script will run normally.
    If its write in reverse and deleted your original data, it must be something wrong in your script, you can check at first.
    If the problem still you can't found, can you share us a little about the script?
    hope helps

  • Error on legal consolidation

    Hi,
    we are using BPC 7.5 and we are trying to run a legal consolidation (SPRUNCONSO). The error we get is
    CSD-120: No Entity - Method available
    I have searched the forum for this error and found references to the ownership application. We do have one, it has data for the companies and period (plus previous year end) in question. I have checked the consolidation method used against those set-up (standard from Appshell, i.e. 90 and 86) and the rules we have created and it all matches and looks valid.
    Our accounts in ownership are
    PCON
    POWN
    PGROUP
    METHOD
    PMIN
    Most of the dimensions used in the ownership cube (category, currency, entity, intco and time) are shared with the consol app, only the account dimension is specific to the ownership cube.
    Does anyone have any idea what else I can check?
    Thanks,
    Arnold

    Dear Arnold
    I think your problem is to assign the consolidation method to the entity
    Into the administrator, define the consolidation method inside the business rule library
    for example
    90 for Holding
    86 for Global
    70 for proporcional
    etc.
    You have to create a input schedule, with the follow row and col
    ROW
    ENTITY
    COL
    CONSGROUP
    O_ACCT
    Afther that you can execute the package /CPMB/OWNERSHIPCALC to calculate the indirect plus direct consolithation percentage
    I hope this work for you
    Ariel

  • Legal Consolidation: Entity structure question

    Hi Experts,
    Just want to ask if technical Entities are required in order for Legal Consolidation to work in SAP BPC 7.5 NW SP6? I'm using both R-Type (Currencies) and G-Type dimension (Conso Groups). In my first structure, I only have the following set up in my Entity and Groups dimension:
    Entity Dimension:
    ID          EVDESCRIPTION          PARENTH1     CURRENCY     INTCO     FX_TYPE     ELIM
    ALL_COMP     All Company                         
    COMPT1          Company Group 1          ALL_COMP                    
    COMP1          Company 1          COMPT1             USD          I_COMP1          Y
    COMP2          Company 2          COMPT1             USD          I_COMP2          Y
    COMPT2          Company Group 2          ALL_COMP                    
    COMP3          Company 3          COMPT2             USD          I_COMP3          Y
    COMP4          Company 4          COMPT2             USD          I_COMP4          Y
    Groups Dimension:
    ID          EVDESCRIPTION     CURRENCY_TYPE     ENTITY     GROUP_CURRENCY     PARENT_GROUP     STORE_ENTITY     STORE_GROUP_CURR     CONSO_TYPE     DATASRC_LEVEL     STAGE_ONLY     
    GCOMPT1     Company Group 1             G               USD                                   Y               A               
    GCOMPT2     Company Group 2             G               USD                                   Y               A               
    NON_GROUP     Non Group     
    In this set up, my Consolidation results in error "RUN_LOGIC:Accounts and entities do not match data in application OWNERSHIP". But if I change my set up to the following(with technical Entities), I don't get the error:
    Entity Dimension:
    ID          EVDESCRIPTION          PARENTH1     CURRENCY     INTCO     FX_TYPE          ELIM
    ALL_COMP     All Company                         
    COMPT1          Company Group 1          ALL_COMP                    
    COMP1          Company 1          COMPT1          USD               I_COMP1          
    COMP2          Company 2          COMPT1          USD               I_COMP2          
    COMPT2          Company Group 2          ALL_COMP                    
    COMP3          Company 3          COMPT2          USD               I_COMP3          
    COMP4          Company 4          COMPT2          USD               I_COMP4          
    ECOMPT1             Company Group 1                    USD                         Y
    ECOMPT2             Company Group 2                    USD                         Y
    Groups Dimension:
    ID          EVDESCRIPTION     CURRENCY_TYPE     ENTITY          GROUP_CURRENCY     PARENT_GROUP     STORE_ENTITY     STORE_GROUP_CURR     CONSO_TYPE     DATASRC_LEVEL     STAGE_ONLY     
    GCOMPT1     Company Group 1             G          ECOMPT1     USD                         Y          Y               A               
    GCOMPT2     Company Group 2             G          ECOMPT2     USD                         Y          Y               A               
    NON_GROUP     Non Group
    Am I just missing some properties or set up in my first that's why I'm getting the error or do I really need to create technical Entities for consolidation to work??
    Thanks,
    Marvin

    Hi nilanjan,
    I was pertaining to the Entities with ID that starts with "E". Anyway, I tried removing the values "Y" for property "ELIM" in the Entity dimension and removed the values for "ENTITY" and STORE_ENTITY in the Groups dimension and I don't encounter the error and consolidation calculates okay.
    Thanks,
    Marvin

  • After upgrade BPC from 7.0 to 7.5 NW we facing issue in Legal consolidation

    Hi
    After upgrade BPC from 7.0 to 7.5 NW we facing issue in Legal consolidation where in case of equity knock off the amount is not get balanced even after we run legal consolidation package in group currency.
    Regards
    Vikash

    Hi sandeep ,
    Hence the problem was not there with previous versions where the .js files were simply not compressed by default.
    Solution :
    I believe switching off javascript compression is a suitable option in this case as the script files are usually cached by the browser as well and will not be transmitted every time.
    Kindly follow these steps:
    1. Enter the J2EE Config tool.
    2. drill down: Global Server Configuration->services->http
    3. on the right hand side, click on NeverCompressed
    4. on the bottom, add at the end: ,*.js
    5. Apply the changes
    6. restart the J2EE.
    After this clear the browser cache and then log onto the portal and check if the issue gets resolve
    I hope it will useful to you.
    Thanks@ Re grads
    G.srinu

  • Built-in templates for Legal Consolidation in SAP BPC

    Hi guys
    I am doing a demo for legal consolidation and was wondering if there are built-in input scehdules (templates) in SAP BPC to assign the consolidation methods to entities (to let the system know how an entity needs to be rolled up in a group)?
    Also are there any input schedules (templates) to enter the Ownership % and Control % for various subsidiaries under a parent?
    Please let me know.
    Thanks,
    Ameya Kulkarni

    I don't think any of the default applications come with pre-built input templates.  The legal applications does come with a number of pre-configured business rules, but as far as pre-built input templates go none are available.  That being said, it is pretty easy to build a simple input template using the dynamic templates that come with BPC.  Starting with one of these you should be able to configure one of them for your demo without much trouble.  Let me know if you need help with that.
    Nick

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