Sap bpc nw 10.0 consolidations ( ic elimination) implementation guide v1 p

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Author: Chief Architect:

Sulthan Mohammad Jothi Periasamy

SAP EPM/BPC Project Lead/Manager/Architect SAP HANA/EPM/BI/EIM Community Thought Leader

SAP EPM Community Member SAP BPC/BOBJ/BW/MDM Community Domain Champion

[email protected] [email protected] , (916)-296-0228 - Cell

CloneSkills, Inc., http://www.CloneSkills.com , [email protected] , 1.800.836.8959, Page - 1

A SAP EPM Community Services

01/01/2012

SAP BPC NW 10.0 Knowledgebase

Inter Company Elimination(IC) Implementation Guide


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Table of Contents

Business Scenario: ......................................................................................................... 3

Overview: ........................................................................................................................ 5

Business Example: .......................................................................................................... 6

Consolidation Business Process Flows: ........................................................................ 11

Consolidation (IC Elimination) Building Blocks: ............................................................. 12

Consolidation (IC Elimination) Implementation Steps: ................................................... 13

Consolidation (IC Elimination) Implementation: ............................................................. 14

Consolidation Building Blocks: ...................................................................................... 15

Data Preparation: .......................................................................................................... 16

Solution Building Blocks: ............................................................................................... 20

Implementation: ............................................................................................................. 24

Appendix: ...................................................................................................................... 62

Log File – IC Elimination Run ........................................................................................ 63

Log File – Currency Calculation .................................................................................... 64

Disclaimer: .................................................................................................................... 65

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Business Scenario:

During period close or month end close or quarterly close the accounting concepts, the revenue generated within the group by exchanging the goods and services with affiliated companies needs to be eliminated. All Inter-Company activities and balances should be eliminated within in a group when the group reports the financial results of entities within the group. In any given group, the entities and the partner doing business with should only be present. For this unique requirement, the IC Elimination process follows the concept called “posting at first common parent”.

� Holding Company � Holding company is a company that owns other companies'

outstanding stock. The term usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the US, 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.(Source : Wikipedia)

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� Parent Company � A parent company is a company that owns enough voting

stock in another firm (subsidiary) to control management and operations by influencing or electing its board of directors. A parent company could simply be a company that wholly owns another company. This would be known as a "wholly owned subsidiary." (Source : Wikipedia)

� Subsidiary � A subsidiary company, subsidiary, or daughter company [1]

is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock.[2][3] The subsidiary can be a company, corporation, or limited liability company. In some cases it is a government or state-owned enterprise. The controlling entity is called its parent company, parent, or holding company. (Source : Wikipedia)

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Overview:

The IC Elimination process is used to identify the inter-company activities and balances. This process can also post records so that these activities and balances are fully eliminated for the group. IC Elimination entries should be reflected only in groups containing both the entity and the partner entity.

• The data is collected either by an Input Schedule or by using the Data Import option in the Data Manager (DM) package. In this guide, an input schedule is used to collect the data.

• Currency Conversion process is used to translate the local currency (EUR) to USD using the standard Currency conversion DM package

• IC_ELIMINATION Data Manager Package is used to generate the entries to post to the elimination entities which are created especially for this purpose.

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Business Example:

In the following organizational structure, the entities’ intercompany accounts needs to be reconciled to reflect the operations of all subordinate organizations that have an effect on the parent.

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As part of the reconciliation, the IC Elimination process will be performed for the lower level intercompany entities China, Singapore, India & Japan. The adjustments will be made through the special entity “AP Elimination”.

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List of Inter Company Transactions:

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Sample GL Data: Scenario I:

This guide demonstrates the following scenario and how the elimination records are generated. The elimination report based on this scenario is given at the bottom.

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Sample GL Data - Scenario II:

The following scenario shows that there is a difference in balance and how it is adjusted with the journal entry or manual adjustments. This guide does not give steps for doing this kind of IC eliminations.

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Consolidation Business Process Flows:

SAP BPC NW 10.0 Out of the Box Consolidation Functions

Step #

Consolidation Process

SAP BPC Consolidation Function s

1 Data Collection � Collect FX (Currency ) Rate � Collect GL Data

2 Data Preparation � Collect FX (Currency ) Rate � Collect GL Data

3 Consolidation � Intercompany Elimination

4 Report � Cash Flow � P&L � Balance Sheet

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Consolidation (IC Elimination) Building Blocks:

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Consolidation (IC Elimination) Implementation Steps:

________________________________________________________________________

Author:

Sulthan Mohammad

SAP EPM/BPC Project Lead/Manager/Architect

SAP EPM Community Member

[email protected]

CloneSkills, Inc., http://www.CloneSkills.com

Consolidation (IC Elimination) Implementation:

________________________________________________________________________

Chief Architect:

Jothi Periasamy

/Architect SAP HANA/EPM/BI/EIM Community Thought

SAP BPC/BOBJ/BW/MDM Community Domain Champion

[email protected] , (916)-296-0228 - Cell

http://www.CloneSkills.com , [email protected] , 1.800.836.8959, Page - 14

Elimination) Implementation:

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Thought Leader

Domain Champion

Cell

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Consolidation Building Blocks:

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Data Preparation:

Entity dimension The following is the hierarchy view of the entities needed for the scenario I. The elimination entity “AP_ELIM” is used to post the elimination balance. The property ELIM for this entity should have the flag ‘Y’. The other needed entities are grouped under Asia Pacific, the first common parent.

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INTCO dimension The Intercompany dimension looks should have the trading partner information as follows.

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Account dimension In the account dimension, the following accounts are added for the IC Elimination process. The property ELIMACC should have the valid account ids to be processed for the IC Elimination. For BS Account

� INT121-INTCO RECEIVABLE (BS Account) � INT222-INTCO PAYABLE (BS Account) � ELIM_ADJUST_B

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For P&L Account

� PL021- INTCO SALES (P& L Account) � PL111-INTCO COST (P & L Account) � ELIM_ADJUST_P

Datasource dimension: The data source ids “Input” and “IC” are used for the process.

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Solution Building Blocks:

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� Models needed:

o IC_Elimination - Finance type model and the data entry mode is of year-to-date.

o Rates – Standard reference model to store the exchanges rates.

� Dimensions needed: The model IC_Elimination uses the following dimensions (minimum required properties and dimensions are used to keep it simple)

The model Rates uses the following dimensions (minimum required properties and dimensions are used to keep it simple)

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� Data Manager Packages: The following standard DM packages are used with no customization. 1. FX Restatement – for currency translation 2. IC_ELIMINATION – To process the IC Elimination records

and to generate the records to be posted.

� Business Rules 1. Currency Translation Business Rule for rate types. 2. ICELIMINATION Business Rule

� Logic Scripts:

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1. An FXTRANS.LGF logic file for currency translation, will translate into a reporting currency that is selected at run time.

2. USELIMFORCLONE.LGF for processing the IC elimination process.

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Implementation:

Step # 1 : Create and Populate Dimensions & Model

1. Log into Web Admin Client using Primary Admin account (or any account with necessary task profile access that can create Model/Dimension and other building blocks)

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2. Click on “Planning and Consolidation Administration” option at

the lower right corner.

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3. Create all the dimensions under Dimensions tab.

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4. Create the Financial IC Elimination model with the following structure.

Note: Rate Model – IFP_Rates is referenced in this model.

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Author:

Sulthan Mohammad



[email protected]


Step # 2: Set up Business Rules

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Chief Architect:

Jothi Periasamy





Set up Business Rules

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1. Click Administration tab/Rules/Business Rules and choose the

model (USElimination) as follows.

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2. Add the following 2 rule types by clicking “Add/Remove rule Types”

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3. Click on the currency Translation and add the following 2 rules for the translation. The contents for the AVG & CLO are also given below.

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4. Enter the following rule for the elimination id CLONE001. All the records with source type of “Input” will be chosen for the elimination process. The records will be posted to the destination source “IC”.

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Author:

Sulthan Mohammad



[email protected]


Step #3: Set up Logic Scripts

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Chief Architect:

Jothi Periasamy





Set up Logic Scripts

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Thought Leader

Domain Champion

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1. Click Administration tab/Rules/Logic Scripts and choose the model (USElimination) as follows.

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2. Create the following scripts and the contents of the scripts are given below.

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Step # 4: Set ups in the Excel Interface of the EPM add-in (Data Manager Package).

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Author:

Sulthan Mohammad



[email protected]


1. Go to the Start page of the page and click the EPM under the Launch tab

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Chief Architect:

Jothi Periasamy





Go to the Start page of the Planning and Consolidation main and click the EPM Office Add-in Excel at the right side

under the Launch tab.

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Domain Champion

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Planning and Consolidation main at the right side

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2. It opens up the EPM connection manager and prompts to choose the connection as follows.

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3. Double click the model that you have created for the IC Elimination (Click on IC_Elimination).

4. In the following screen, click Data Manager Tab. Then click “Organize”,”Organize package list” to go the package maintenance Screen.

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5. Click “Package” at the top left corner, then click “Add a package”.

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Then press “select”, to select the process chain in the above screen. Task type can be either user package and/or admin package.

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6. Select the process chain /cpmb/IC_ELIMINATION under the script logic, then press okay.

7. Now name the package as follows and then press Add to add the package.

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Author:

Sulthan Mohammad



[email protected]


Step # 5: Set ups in the Excel Interface of the EPM add(Data Input Form and Reports

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Chief Architect:

Jothi Periasamy





Set ups in the Excel Interface of the EPM addand Reports).

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Thought Leader

Domain Champion

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Set ups in the Excel Interface of the EPM add-in

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8. The following input schedule is used for collecting the data and to do the currency calculation.

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9. Using the report editor, create the following input schedule to load the data for the IC Elimination model.

Actual

No Scope

Jan 2012

Year To Date

Input

IC

ELIM

Local

Curre

ncy

US

Dollar

US

Dollar

China-Input I_SIN LOAN INT121 - INTCOREC 100 24.3

PL021 - INTCOSALES 100 24.3

India I_SIN CMAT INT222 - INTCOPAY 200 6.6

PL111 - INTCOCOST 200 6.6

I_JPN LAPTOP INT222 - INTCOPAY 300 9.9


Singapore I_CHINA_INPUT LOAN INT222 - INTCOPAY 100 88.7


I_IND CMAT INT121 - INTCOREC 200 177.4


Japan I_IND LAPTOP INT121 - INTCOREC 300 13.5


AP

Elimination I_CHINA_INPUT LOAN INT222 - INTCOPAY

PL111 - INTCOCOST

ELIM_ADJUST_B -

Elimination Adjustment - B

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ELIM_ADJUST_P -

Elimination Adjustment - P

I_IND LAPTOP INT121 - INTCOREC

PL021 - INTCOSALES

ELIM_ADJUST_B -


ELIM_ADJUST_P -


CMAT INT121 - INTCOREC

PL021 - INTCOSALES

ELIM_ADJUST_B -


ELIM_ADJUST_P -


I_SIN LOAN INT121 - INTCOREC

PL021 - INTCOSALES

ELIM_ADJUST_B -


ELIM_ADJUST_P -


CMAT INT222 - INTCOPAY

PL111 - INTCOCOST

ELIM_ADJUST_B -


ELIM_ADJUST_P -


I_JPN LAPTOP INT222 - INTCOPAY

PL111 - INTCOCOST

ELIM_ADJUST_B -


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ELIM_ADJUST_P -


10. Now run the IC Elimination package “IC_ELIMINATION” by choosing Data Manager Tab/ Run package option. After the successful execution of the pacakge, refresh the screen. The report looks as follows.

Actual

No Scope

Jan 2012

Year To Date

Input

IC

ELIM

Local

Curre

ncy

US

Dollar

US

Dollar

China-Input I_SIN LOAN INT121 - INTCOREC 100 24.3


India I_SIN CMAT INT222 - INTCOPAY 200 6.6


I_JPN LAPTOP INT222 - INTCOPAY 300 9.9


Singapore I_CHINA_INPUT LOAN INT222 - INTCOPAY 100 88.7


I_IND CMAT INT121 - INTCOREC 200 177.4


Japan I_IND LAPTOP INT121 - INTCOREC 300 13.5

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AP

Elimination I_CHINA_INPUT LOAN INT222 - INTCOPAY -88.7

PL111 - INTCOCOST -88.7

ELIM_ADJUST_B -

Elimination Adjustment - B -88.7

ELIM_ADJUST_P -

Elimination Adjustment - P 88.7

I_IND LAPTOP INT121 - INTCOREC -13.5

PL021 - INTCOSALES -13.5

ELIM_ADJUST_B -

Elimination Adjustment - B 13.5

ELIM_ADJUST_P -

Elimination Adjustment - P -13.5

CMAT INT121 - INTCOREC -177.4


ELIM_ADJUST_B -


ELIM_ADJUST_P -


I_SIN LOAN INT121 - INTCOREC -24.3


ELIM_ADJUST_B -


ELIM_ADJUST_P -


CMAT INT222 - INTCOPAY -6.6

PL111 - INTCOCOST -6.6

ELIM_ADJUST_B -

Elimination Adjustment - B -6.6

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Author:

Sulthan Mohammad



[email protected]


I_JPN

Step # 6: Setup Consolidation Business Process Flows:

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Chief Architect:

Jothi Periasamy





ELIM_ADJUST_P -


LAPTOP INT222 - INTCOPAY

PL111 - INTCOCOST

ELIM_ADJUST_B -



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Domain Champion

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6.6

-9.9

-9.9

-9.9


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1. Create a Process Template called “Consolidation Function” with the following activities.

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2. Create the following Process Instance for the above activities.

3. Deploy the process template.

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4. Go to Home/Activities section, choose the consolidation function and run the activities.

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5. For the collection of currency rates, the following EPM add-in Excel opens up with the input schedule for entering the currency rates.

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6. The following opens up when the activity of Currency conversion is chosen to run.

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7. The status of the activities is shown as follows.

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8. The following screen is displayed for running the IC Elimination process.

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9. After running the IC Elimination process, the log files are viewed as follows.

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Author:

Sulthan Mohammad



[email protected]


Step # 7 : Setup Consolidation Monitors

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Chief Architect:

Jothi Periasamy





Step # 7 : Setup Consolidation Monitors

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Thought Leader

Domain Champion

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1. Go to Home tab and click Consolidation Central and Consolidation Monitor. Set the Context for the consolidation model at the top of the panel.

2. Now we can run the Currency Translation and consolidation

process for the given context. The following shows the successful

run of the currency calculation.

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Appendix:

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Log File – IC Elimination Run

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Log File – Currency Calculation

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Disclaimer:

This description is a preliminary version and not subject to a license agreement or any other agreement with SAP®. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this preview is subject to change and may be changed by SAP at any time without notice.

SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This preview is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected.

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SAP Community Contributors: Author: Chief Architect: Sulthan Mohammad Jothi Periasamy SAP EPM/BPC Project Lead/Manager /Architect SAP HANA/EPM/BI/EIM Community Thought Leader SAP EPM Community Member SAP BPC/BOBJ/BI/MDM Community Domain Champion [email protected] [email protected] , (916)-296-0228 - Cell

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