bpf legal consolidation
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SAP BusinessObjects Planning and Consolidation 75 version for the Netweaver platform
September 2011
English
Legal Consolidation (B64)
SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany
Business Process Documentation
SAP Best Practices Legal Consolidation (B64) BPD
Copyright
copy 2011 SAP AG All rights reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG The information contained herein may be changed without prior notice
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors
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Java is a registered trademark of Sun Microsystems Inc
JavaScript is a registered trademark of Sun Microsystems Inc used under license for technology invented and implemented by Netscape
SAP R3 SAP NetWeaver Duet PartnerEdge ByDesign SAP BusinessObjects Explorer StreamWork and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries
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All other product and service names mentioned are the trademarks of their respective companies Data contained in this document serves informational purposes only National product specifications may vary
These materials are subject to change without notice These materials are provided by SAP AG and its affiliated companies (SAP Group) for informational purposes only without representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services if any Nothing herein should be construed as constituting an additional warranty
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SAP Best Practices Legal Consolidation (B64) BPD
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process AlternativeDecision Choice
Typographic Conventions
Type Style Description
Example text Words or characters that appear on the screen These include field names screen titles pushbuttons as well as menu names paths and options
Cross-references to other documentation
Example text Emphasized words or phrases in body text titles of graphics and tables
EXAMPLE TEXT Names of elements in the system These include report names program names transaction codes table names and individual key words of a programming language when surrounded by body text for example SELECT and INCLUDE
Example text Screen output This includes file and directory names and their paths messages source code names of variables and parameters as well as names of installation upgrade and database tools
EXAMPLE TEXT Keys on the keyboard for example function keys (such as F2) or the ENTER key
Example text Exact user entry These are words or characters that you enter in the system exactly as they appear in the documentation
ltExample textgt Variable user entry Pointed brackets indicate that you replace these words and characters with appropriate entries
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SAP Best Practices Legal Consolidation (B64) BPD
Contents
1 Purpose 5
2 Background Information5
21 Ownership Information5
22 Intercompany Transaction5
23 Other Information6
3 Preparation 6
31 IE Setting 6
32 Logging on SAP BPC system7
33 IE Configuration - Back to BPF7
34 Switch User Log on SAP BPC system8
35 Logon Interface for Excel8
4 Process Overview 8
5 Business Processes11
51 Preparation 11
511 Entering Exchange Rate11
512 Entering Ownership Information11
513 Copying Opening Data13
514 Closing the Step14
52 Uploading Data (All the Companies in the Group)14
521 Uploading Financial Statements14
522 Importing Financial Statements15
523 Reviewing Balance Sheet Statement16
524 Reviewing Profit Loss Statement16
525 Checking Onwerrsquos Equity Statement17
526 Checking Validation Report Result17
527 Entering Inter-Company Transaction Data18
528 Submiting Data23
529 Approving Data24
5210 Checking the Data Approval Status25
53 Consolidation Process25
531 Foreign Currency Conversion25
532 Pushing Data to IC-Maching26
533 Running IC-Matching27
534 Checking IC Matching Result ndash Sales27
535 Checking IC Matching Result ndash AR amp AP28
536 Journal Entry29
537 Running Consolidation36
538 Checking Consolidation Working Sheet37
539 Checking Validation Result for Cosolidation Report38
5310 Closing this Step38
54 Consolidation Report38
541 Presenting Consolidated Balance Sheet Statement38
542 Presenting Consolidated Income Statement39
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SAP Best Practices Legal Consolidation (B64) BPD
Legal Consolidation
1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure
The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps
Data Upload from Subsidiariesrsquo financial systems
Currency Translation
Inter-company Elimination
Journal Elimination
Consolidation Reports
According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)
2 Background Information
21 Ownership InformationParent Subsidiary Percentage of voting stock
S000 (Holding) S001 100
S000 S002 (overseas) 100
S000 S003 90
22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from
S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book
2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book
3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001
4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003
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SAP Best Practices Legal Consolidation (B64) BPD
23 Other InformationThe parent company uses Equity Method to record Investment
Entity theory full goodwill method is applied to the consolidation group
For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010
The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
3 Preparation
31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password
1 Open Windowns internet Explorer Brower
2 Choose Tools Internet Options
3 Choose Security tab
4 Make setting as screenshot in both Local intranet and Trusted sites zone
5 Choose OK and exit
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SAP Best Practices Legal Consolidation (B64) BPD
32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
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SAP Best Practices Legal Consolidation (B64) BPD
3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Copyright
copy 2011 SAP AG All rights reserved
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All other product and service names mentioned are the trademarks of their respective companies Data contained in this document serves informational purposes only National product specifications may vary
These materials are subject to change without notice These materials are provided by SAP AG and its affiliated companies (SAP Group) for informational purposes only without representation or warranty of any kind and SAP Group shall not be liable for errors or omissions with respect to the materials The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services if any Nothing herein should be construed as constituting an additional warranty
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SAP Best Practices Legal Consolidation (B64) BPD
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process AlternativeDecision Choice
Typographic Conventions
Type Style Description
Example text Words or characters that appear on the screen These include field names screen titles pushbuttons as well as menu names paths and options
Cross-references to other documentation
Example text Emphasized words or phrases in body text titles of graphics and tables
EXAMPLE TEXT Names of elements in the system These include report names program names transaction codes table names and individual key words of a programming language when surrounded by body text for example SELECT and INCLUDE
Example text Screen output This includes file and directory names and their paths messages source code names of variables and parameters as well as names of installation upgrade and database tools
EXAMPLE TEXT Keys on the keyboard for example function keys (such as F2) or the ENTER key
Example text Exact user entry These are words or characters that you enter in the system exactly as they appear in the documentation
ltExample textgt Variable user entry Pointed brackets indicate that you replace these words and characters with appropriate entries
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SAP Best Practices Legal Consolidation (B64) BPD
Contents
1 Purpose 5
2 Background Information5
21 Ownership Information5
22 Intercompany Transaction5
23 Other Information6
3 Preparation 6
31 IE Setting 6
32 Logging on SAP BPC system7
33 IE Configuration - Back to BPF7
34 Switch User Log on SAP BPC system8
35 Logon Interface for Excel8
4 Process Overview 8
5 Business Processes11
51 Preparation 11
511 Entering Exchange Rate11
512 Entering Ownership Information11
513 Copying Opening Data13
514 Closing the Step14
52 Uploading Data (All the Companies in the Group)14
521 Uploading Financial Statements14
522 Importing Financial Statements15
523 Reviewing Balance Sheet Statement16
524 Reviewing Profit Loss Statement16
525 Checking Onwerrsquos Equity Statement17
526 Checking Validation Report Result17
527 Entering Inter-Company Transaction Data18
528 Submiting Data23
529 Approving Data24
5210 Checking the Data Approval Status25
53 Consolidation Process25
531 Foreign Currency Conversion25
532 Pushing Data to IC-Maching26
533 Running IC-Matching27
534 Checking IC Matching Result ndash Sales27
535 Checking IC Matching Result ndash AR amp AP28
536 Journal Entry29
537 Running Consolidation36
538 Checking Consolidation Working Sheet37
539 Checking Validation Result for Cosolidation Report38
5310 Closing this Step38
54 Consolidation Report38
541 Presenting Consolidated Balance Sheet Statement38
542 Presenting Consolidated Income Statement39
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SAP Best Practices Legal Consolidation (B64) BPD
Legal Consolidation
1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure
The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps
Data Upload from Subsidiariesrsquo financial systems
Currency Translation
Inter-company Elimination
Journal Elimination
Consolidation Reports
According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)
2 Background Information
21 Ownership InformationParent Subsidiary Percentage of voting stock
S000 (Holding) S001 100
S000 S002 (overseas) 100
S000 S003 90
22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from
S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book
2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book
3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001
4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003
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SAP Best Practices Legal Consolidation (B64) BPD
23 Other InformationThe parent company uses Equity Method to record Investment
Entity theory full goodwill method is applied to the consolidation group
For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010
The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
3 Preparation
31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password
1 Open Windowns internet Explorer Brower
2 Choose Tools Internet Options
3 Choose Security tab
4 Make setting as screenshot in both Local intranet and Trusted sites zone
5 Choose OK and exit
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SAP Best Practices Legal Consolidation (B64) BPD
32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
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SAP Best Practices Legal Consolidation (B64) BPD
3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Icons
Icon Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process AlternativeDecision Choice
Typographic Conventions
Type Style Description
Example text Words or characters that appear on the screen These include field names screen titles pushbuttons as well as menu names paths and options
Cross-references to other documentation
Example text Emphasized words or phrases in body text titles of graphics and tables
EXAMPLE TEXT Names of elements in the system These include report names program names transaction codes table names and individual key words of a programming language when surrounded by body text for example SELECT and INCLUDE
Example text Screen output This includes file and directory names and their paths messages source code names of variables and parameters as well as names of installation upgrade and database tools
EXAMPLE TEXT Keys on the keyboard for example function keys (such as F2) or the ENTER key
Example text Exact user entry These are words or characters that you enter in the system exactly as they appear in the documentation
ltExample textgt Variable user entry Pointed brackets indicate that you replace these words and characters with appropriate entries
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SAP Best Practices Legal Consolidation (B64) BPD
Contents
1 Purpose 5
2 Background Information5
21 Ownership Information5
22 Intercompany Transaction5
23 Other Information6
3 Preparation 6
31 IE Setting 6
32 Logging on SAP BPC system7
33 IE Configuration - Back to BPF7
34 Switch User Log on SAP BPC system8
35 Logon Interface for Excel8
4 Process Overview 8
5 Business Processes11
51 Preparation 11
511 Entering Exchange Rate11
512 Entering Ownership Information11
513 Copying Opening Data13
514 Closing the Step14
52 Uploading Data (All the Companies in the Group)14
521 Uploading Financial Statements14
522 Importing Financial Statements15
523 Reviewing Balance Sheet Statement16
524 Reviewing Profit Loss Statement16
525 Checking Onwerrsquos Equity Statement17
526 Checking Validation Report Result17
527 Entering Inter-Company Transaction Data18
528 Submiting Data23
529 Approving Data24
5210 Checking the Data Approval Status25
53 Consolidation Process25
531 Foreign Currency Conversion25
532 Pushing Data to IC-Maching26
533 Running IC-Matching27
534 Checking IC Matching Result ndash Sales27
535 Checking IC Matching Result ndash AR amp AP28
536 Journal Entry29
537 Running Consolidation36
538 Checking Consolidation Working Sheet37
539 Checking Validation Result for Cosolidation Report38
5310 Closing this Step38
54 Consolidation Report38
541 Presenting Consolidated Balance Sheet Statement38
542 Presenting Consolidated Income Statement39
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SAP Best Practices Legal Consolidation (B64) BPD
Legal Consolidation
1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure
The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps
Data Upload from Subsidiariesrsquo financial systems
Currency Translation
Inter-company Elimination
Journal Elimination
Consolidation Reports
According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)
2 Background Information
21 Ownership InformationParent Subsidiary Percentage of voting stock
S000 (Holding) S001 100
S000 S002 (overseas) 100
S000 S003 90
22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from
S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book
2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book
3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001
4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003
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23 Other InformationThe parent company uses Equity Method to record Investment
Entity theory full goodwill method is applied to the consolidation group
For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010
The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
3 Preparation
31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password
1 Open Windowns internet Explorer Brower
2 Choose Tools Internet Options
3 Choose Security tab
4 Make setting as screenshot in both Local intranet and Trusted sites zone
5 Choose OK and exit
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32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
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3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Contents
1 Purpose 5
2 Background Information5
21 Ownership Information5
22 Intercompany Transaction5
23 Other Information6
3 Preparation 6
31 IE Setting 6
32 Logging on SAP BPC system7
33 IE Configuration - Back to BPF7
34 Switch User Log on SAP BPC system8
35 Logon Interface for Excel8
4 Process Overview 8
5 Business Processes11
51 Preparation 11
511 Entering Exchange Rate11
512 Entering Ownership Information11
513 Copying Opening Data13
514 Closing the Step14
52 Uploading Data (All the Companies in the Group)14
521 Uploading Financial Statements14
522 Importing Financial Statements15
523 Reviewing Balance Sheet Statement16
524 Reviewing Profit Loss Statement16
525 Checking Onwerrsquos Equity Statement17
526 Checking Validation Report Result17
527 Entering Inter-Company Transaction Data18
528 Submiting Data23
529 Approving Data24
5210 Checking the Data Approval Status25
53 Consolidation Process25
531 Foreign Currency Conversion25
532 Pushing Data to IC-Maching26
533 Running IC-Matching27
534 Checking IC Matching Result ndash Sales27
535 Checking IC Matching Result ndash AR amp AP28
536 Journal Entry29
537 Running Consolidation36
538 Checking Consolidation Working Sheet37
539 Checking Validation Result for Cosolidation Report38
5310 Closing this Step38
54 Consolidation Report38
541 Presenting Consolidated Balance Sheet Statement38
542 Presenting Consolidated Income Statement39
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SAP Best Practices Legal Consolidation (B64) BPD
Legal Consolidation
1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure
The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps
Data Upload from Subsidiariesrsquo financial systems
Currency Translation
Inter-company Elimination
Journal Elimination
Consolidation Reports
According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)
2 Background Information
21 Ownership InformationParent Subsidiary Percentage of voting stock
S000 (Holding) S001 100
S000 S002 (overseas) 100
S000 S003 90
22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from
S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book
2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book
3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001
4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003
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SAP Best Practices Legal Consolidation (B64) BPD
23 Other InformationThe parent company uses Equity Method to record Investment
Entity theory full goodwill method is applied to the consolidation group
For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010
The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
3 Preparation
31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password
1 Open Windowns internet Explorer Brower
2 Choose Tools Internet Options
3 Choose Security tab
4 Make setting as screenshot in both Local intranet and Trusted sites zone
5 Choose OK and exit
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SAP Best Practices Legal Consolidation (B64) BPD
32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
copy SAP AG Page 7 of 60
SAP Best Practices Legal Consolidation (B64) BPD
3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
copy SAP AG Page 9 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
copy SAP AG Page 11 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Legal Consolidation
1 PurposeThis business process document describes the consolidation process during the period-end it aligns the whole consolidation procedure in the company and ensures the completeness of the procedure
The SAP Business Planning and Consolidation enables enterprises to consolidate financial information based on the respective accounting standards such as US GAAP IAS and so on This allows the enterprise to report its financial data accurately timely and consistently This Business Process Document (BPD) demonstrates a typical US legal consolidation scenario based on the US GAAP requirements covering following key consolidation steps
Data Upload from Subsidiariesrsquo financial systems
Currency Translation
Inter-company Elimination
Journal Elimination
Consolidation Reports
According to the US GAAP an enterprise is required to consolidate all the subsidiaries for which the parents control over 50 of the voting interest The parent and its subsidiaries are treated as one management and one economic entity for financial reporting purpose Per SFAS 94 this includes domestic foreign similar and dissimilar subsidiaries No legal consolidation is required when the Control is not with owners (for example under legal reorganization or when control of a subsidiary is with a trustee)
2 Background Information
21 Ownership InformationParent Subsidiary Percentage of voting stock
S000 (Holding) S001 100
S000 S002 (overseas) 100
S000 S003 90
22 Intercompany Transaction1 On December 31st 2011 there are 1200 USD intercompany accounts receivables (from
S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003s account book
2 On December 31st 2011 there is 8000 USD intercompany accounts receivables (from S002) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book
3 On November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001
4 On July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003
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SAP Best Practices Legal Consolidation (B64) BPD
23 Other InformationThe parent company uses Equity Method to record Investment
Entity theory full goodwill method is applied to the consolidation group
For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010
The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
3 Preparation
31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password
1 Open Windowns internet Explorer Brower
2 Choose Tools Internet Options
3 Choose Security tab
4 Make setting as screenshot in both Local intranet and Trusted sites zone
5 Choose OK and exit
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SAP Best Practices Legal Consolidation (B64) BPD
32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
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3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
23 Other InformationThe parent company uses Equity Method to record Investment
Entity theory full goodwill method is applied to the consolidation group
For the illustration purpose we assume that during acquisition of company S001 and S002 the net book value of the identifiable assets and liabilities acquired is same as the fair value
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120600 in 2010
The Fair Value of the net asset in S003 is $ 59300 The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
3 Preparation
31 IE SettingBefore Log on interface for web please make following setting and make sure there is a pop-up window to ask you enter user name and password
1 Open Windowns internet Explorer Brower
2 Choose Tools Internet Options
3 Choose Security tab
4 Make setting as screenshot in both Local intranet and Trusted sites zone
5 Choose OK and exit
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SAP Best Practices Legal Consolidation (B64) BPD
32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
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SAP Best Practices Legal Consolidation (B64) BPD
3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
32 Logging on SAP BPC system1 Choose the proper link ( for examplehttp[domain][port]OSoft)
2 Make the following entries in the pop up window
Field name Description User action and values Comment
User name For example[domain]Conso
Password For example welcome1
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SAP Best Practices Legal Consolidation (B64) BPD
3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
3 Choose OK
4 On the SAP BusinessObjects- Launch Page choose Interface for the web
5 Choose AppSet SAP_BP_Conso_GL choose OK
6 Choose Business Process Flows
7 On the Business Process Flows screen choose the business process flow named Legal Consolidation
8 Steps assigned to this user are listed in lower part of the page
9 Choose the step to find the sub-step list The detailed explanation is included in part 5
10 Change Current View as follow
Field name Description User action and values Comment
Application For example Consolidation
Time The period For example 2011DEC
33 IE Configuration - Back to BPFIf you do not want to new a page in web interface after choosing back to BPF make setting as following
1 Open Windowns Internet Explorer Brower
2 Choose Tool Internet Options
3 Choose General tab
4 Choose Settings in the Tabs area
5 On the Tabbed Browsing Settings tab make setting as screenshot
6 Choose OK and exit
34 Switch User Log on SAP BPC systemWhen you switch the user to log on BPC system please make sure all the BPC relevant screens are closed
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SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
35 Logon Interface for ExcelWhen choosing steps in BPF to access interface for excel a dialog will pop-up for the user to enter proper user password and choose application set and application
4 Process OverviewProcess Steps Sub-Process Steps Business Roles Expected Results
Preparation
Enter Exchange Rate Financial Specialist in group company for financial consolidation
The exchange rate used for consolidation has been entered into the system
Enter Ownership information
Financial Specialist in group company for financial consolidation
The ownership percentage has been maintained in the system
Copy Opening Data Financial Specialist in group company for financial consolidation
Carry forward the closing balance of last period to this period
Upload Data
Upload Financial Data Financial Specialist and Financial Manager in subsidiaries
All the Financial Statements have been uploaded to the server
Import Financial Data Financial Specialist and Financial Manager in subsidiaries
The Financial Statement has been imported to the BPC system
Review Balance Sheet Financial Specialist and Financial Manager in subsidiaries
Check the Balance sheet and make the necessary adjustment
Review Profit Loss Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Income Statement and make the necessary adjustment
Check Ownerrsquos Equity Statement
Financial Specialist and Financial Manager in subsidiaries
Check the Ownerrsquos Equity Statement and make the necessary adjustment
Review Validation Report Financial Specialist and Financial Manager in subsidiaries
All the financial reprots have been checked
Input Inter-Company data Financial Specialist and Financial Manager
Enter the inter-company transactions
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
in subsidiaries
Submit Data Financial Specialist and Financial Manager in subsidiaries
The data has been submitted
Approve Data Financial Specialist and Financial Manager in subsidiaries
The data has been approved
Review Work Status Financial Specialist in group company for financial consolidation
Data Upload has been done and we can start the following steps
Consolidation Process
Foreign Currency Conversion
Financial Specialist in group company for financial consolidation
Local Currency has been converted to the reporting currency
Push Data to IC-Matching Financial Specialist in group company for financial consolidation
Copy Intercompany transaction data to IC matching
Run IC-Matching Financial Specialist in group company for financial consolidation
Run IC Matching
Review ICMatching Result ndash Intercompany Inventory Transaction
Financial Specialist in group company for financial consolidation
Check Validation Result
Review ICMatching Result ndash Intercompany AR and AP
Financial Specialist in group company for financial consolidation
Check Validation Result
Journal Entry Financial Specialist in group company for financial consolidation
Manual Adjustment
Run Consolidation Financial Specialist in group company for financial consolidation
Generate Consolidation Report
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SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Process Steps Sub-Process Steps Business Roles Expected Results
Review Consolidation working Sheet
Financial Specialist in group company for financial consolidation
Check Consolidation Working Sheet
Review Consolidation Validation Report
Financial Specialist in group company for financial consolidation
Check Validation Report
Consolidation Report
Review Consolidated balance Sheet
Financial Specialist in group company for financial consolidation
Present Report
Review Consolidated Profit Loss Statement
Financial Specialist in group company for financial consolidation
Present Report
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SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 Business Processes
51 Preparation
PurposeFinish the preparation for the consolidation report for example enter the exchange rate and enter the ownership rate and copy the closing balance of last period to this period and so on
511 Entering Exchange Rate
PurposeEnter the exchange rate which could be used in the currency restatement step
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP Business
Objects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application RATE
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Preparation
3 Select sub-step Enter Exchange Rate
4 On the Exchange Rate Sheet screen enter the following entries
Row Column Field Value Remark
USD Average Rate 1 Direct method enter the amount of USD which equals to one foreign currency
USD Period end rate 1 Direct method enter the amount of USD which equals to one foreign currency
EUR Average Rate 142 Direct method enter the amount of USD which equals to one foreign currency
EUR Period end rate 145 Direct method enter the amount of USD which equals to one foreign currency
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5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Save
6 Choose Active workbook and choose Refresh
7 Choose Back to BPF
ResultThe exchange rate has been maintained properly in the system
512 Entering Ownership Information
PurposeEnter the ownership information in the system
Procedure1 Check screen on the right hand of the side and maek sure the following enteies are correctly
maintained
Field name Description User action and values Comment
Application OWNERSHIP
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 For the BPF step list choose step Enter Ownership information
3 Choose menu eSubmit Manage Dynamic Hierarchies
4 On the Dynamic Hierarchy Editor screen make the following entries in the Tree Settings screen
Field name Description User action and values Comment
CATEGORY ACTUAL Data type
TIME For example2011DEC
CONSOSCOPE The consolidation group that you are going to maintain for exampleG-H1
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 On the Dynamic Hierarchy Editor screen choose the node G_H1 [Consolidation Group ndash Group Company](The consolidation group with Entity S000 as the holding company)choose action Add Child
6 On the Add CHILD screen choose Entity S000
7 Choose OK
8 On the Node Details screen Choose Show Empty and make the following entries
Field name Description User action and values Comment
CONSOSCOPE G-H1 Current consolidation group
METHOD Choose the cell and choose 90-HoldingParent
90-Holding Parent = holding company30-Equidity=subsidiary
POWN 1 Percentage of the stock owned by the holding company for example 1=100 06=60
PCON 1 1 = should be included into the consolidation 0 = should not be included into the consolidation scope
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SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
9 Repeat the above-mentioned steps 5-8create sub nodes S001 S002 and S003 Confirm to save it in the pop-up window Refer to the following information for the sub nodes S001 S002 and S003
Node S001
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Node S002
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 1
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Node S003
Field name Description User action and values Comment
CONSOSCOPE G-H1
METHOD Choose the cell and choose 30 Equity
POWN 09
PCON 1
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SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
10 Choose Save
11 Choose Yes
12 Choose OK
13 Close the screen
14 Now you could get the latest ownership information in the whole group
ResultAll the ownership percentage has been finalized within the consolidation group
513 Copying Opening Data
PurposeCarry forward the closing balance of last period to this period
Procedure1 Check screen on the right hand of the side and make sure the following entries are correctly
maintained
Field name Description User action and values Comment
Application Consolidation
Time For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Copy Opening Data
3 On the Data Manager screen choose package group Financial Process then choose Copy Opening and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL
Time Enter the current period for carry forwarding for example 2011 DEC
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjects screenchoose OK
9 Choose Back to BPF
ResultThe opening balance has been updated properly
514 Closing the Step
PurposeSet the status of Preparation as completed
Procedure1 From the BPF step list choose the Complete button under step Preparation to complete this
step
ResultThe step Preparation has been completed you can go with the following steps
52 Uploading Data (All the Companies in the Group)
PurposeWithin this step every subsidiary uploaded the financial data to the BPC system and submitted the inter-company transactions In our example it is required each subsidiary company to provide financial statements in CSV format as for upload purpose
To simplify process we prepared necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscB64Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and upload all necessary financial statement data
521 Uploading Financial Statements
PurposeAccording to the standard format provided by the headquarter every subsidiary should submit the financial statement to the system
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 27 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 28 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
copy SAP AG Page 29 of 60
SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
copy SAP AG Page 31 of 60
SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Upload Financial Data
3 On the Data Manager ndash upload screen make the following entries
Field name Description User action and values Comment
Source file Enter the menu where yoursquove put the balance sheet
Local_Financial_Data_2011csv
Destination file Enter the target place you would like to save the file
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
copy SAP AG Page 34 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
4 Choose OK
5 In the pop-up window choose OK for the message File transferred successfully
6 Repeat above-mentioned steps 1-5 every subsidiary should log on the system and upload the financial statement to the server
7 Choose Back to BPF
ResultAll the companies have uploaded the file to the server
522 Importing Financial Statements
PurposeConvert the files stored in the server and save them in the backend database
To simplify process we prepare necessary data for financial statements of holding company and subsidiary companies under the folder ( MiscENBP4Local_Financial_Data_2011csv)Please use user CONSO to logon system (Entity CON_GROUP) and import all necessary financial statement data
Procedure1 From the BPF step list choose step Import Financial Statements
2 From the list choose Import Transaction Data and choose Run
3 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Import file Put the menu path you stored the file in step 521
Transformation file
The transformation file stored in the servereg Transformation filexls
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SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
4 Choose Next
5 Select Run now and choose Finish
6 Choose OK
7 Repeat above-mentioned steps 1-4 every subsidiary should log on the system and import the financial statement to the sever
8 Choose Back to BPF
ResultAll the financial data has been saved in the relevant database
523 Reviewing Balance Sheet Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 27 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
copy SAP AG Page 29 of 60
SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Balance Sheet
3 On the worksheet of balance sheet please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos balance sheet and make the changes if necessary
ResultAll the balance sheet statements have been checked
524 Reviewing Profit Loss Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Profit Loss Statement
3 On the worksheet of Income Statement please check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Income Statement and make the changes if necessary
ResultAll the Income Statements have been checked
525 Checking Onwerrsquos Equity Statement
PurposeIn BPC system you could manually check the financial data imported to the system and make the necessary changes
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
copy SAP AG Page 34 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Check Ownerrsquos Equity State
3 On the worksheet of Ownerrsquos Equity Statment check all the relevant data
4 Make the necessary changes
5 Choose Save
6 Choose Back to BPF
7 Repeat the above-mentioned steps 1-6 check other companiesrsquos Ownerrsquos Equity Statement and make the changes if necessary
ResultAll of the Ownerrsquos Equity Statements have been checked
526 Checking Validation Report Result
PurposeWe could have a further check for all the financial statements submitted by the subsidiaries
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Review Validation Report
3 On the relevant working sheet check all the data
4 For the items marked as incoorect we should have a further analysis
5 For any necessary adjustement should be done on the financial statements please refer to steps 523 524 525
6 Choose Refresh to check the latest validation result after the adjustement
7 Choose Back to BPF
8 Repease above-mentioend steps 1-6 check all the validation report for other companies
ResultAll the financial data has been validated
527 Entering Inter-Company Transaction Data
PurposeEvery subsidiary log on the system and enter the inter-company transaction information
Procedure1 Refer to Step 32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
copy SAP AG Page 30 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
copy SAP AG Page 33 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
copy SAP AG Page 34 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
copy SAP AG Page 35 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 36 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Data Uploading
3 Select sub-step Input Inter-Company Data
4 For different type of inter-company transactions refer to the following detailed steps
5271 Intercompany Transaction No 1
Transaction DataOn December 31st 2011 there are 1200 USD intercompany accounts receivables (from S003) on S000rsquos account book and 1200 USD intercompany accounts payable (to S000) on S003rsquos account book This is an inter-company ARAP transaction the related companies are S000 and S003
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Trade Accounts receivable net Right choose and choose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003 ndash S003Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transactions ARampAP
Accounts receivable net
-S003Company Ending balance
1200
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S003 S003
8 Choose sheet IC transaction ARampAP
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SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
9 Choose Account Accounts payable right choose and choose EVDRE Insert memberhellipOn the Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000 Company Ending balance
1200
11 Choose Save
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5272 Intercompany Transaction No2
Transaction DataOn December 31st 2011 there is 8000 USD intercompany accounts receivables (from S000) on S000rsquos account book and 5700 EUR intercompany accounts payable (to S000) on S002rsquos account book This is an inter-company ARAP transaction with difference the related companies are S000 and S002
Procedure1 Use following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction ARampAP
3 Choose Account Accounts receivable net right choose and chose EVDRE Insert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S002 ndash S002 Company
View members by ID And Description
4 Choose OK
5 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts Receivable net
-S002 Company Ending balance
8000
6 Choose Save
7 Use following information to log on the system
User ID Entity
User_S002 S002
8 Choose sheet IC transaction ARampAP
9 Choose Account Payables right choose and choose EVDRE Insert memberhellipOn the
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SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Insert member hellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000 Company
View members by ID And Description
10 Make the following entries
Worksheet Account Line item Column Amount
IC transaction ARampAP
Accounts payable
-S000Company Ending balance
5700
11 Choose Save
The difference caused by foreign currency translation will be further adjusted by journal entry in following step 536
12 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5273 Intercompany Transaction No3
Transaction DataOn November 29th 2011 S001 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 all the purchased merchandise had not been sold out in company S001 This is an inter-company inventory transaction The affected companies are S000 and S001
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S001 ndash S001Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S001Company Ending balance
-800
IC transaction sales
Sales -S001Company Period value 1000
IC transaction sales
Cost of Goods Sold
-S001Company Period value 800
5 Choose Save
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SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
copy SAP AG Page 32 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
copy SAP AG Page 35 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
6 User following information to log on the system
User ID Entity
User_S001 S001
7 Choose sheet IC transaction Sales
8 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000 ndash S000Company
View members by ID And Description
9 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending balance
1000
10 Choose Save
11 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
5274 Intercompany Transaction No4
Transaction DataOn July14th 2010 S003 purchased a batch of merchandise from S000 at the price of USD 1190 (tax included output tax 19) The cost of the merchandise in S000 is USD 800 At December 31st 2011 there is still 40 of the purchased merchandise remained unsold in company S003 This is an inter-company inventory transaction The affected companies are S000 and S003
Procedure1 User following information to log on the system
User ID Entity
User_S000 S000
2 Choose sheet IC transaction Sales
3 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S003Company
View members by ID And Description
4 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S003Company Ending balance
-800
IC transaction sales
Sales -S003Company Period Value 1000
IC Cost of -S003Company Period Value
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SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
copy SAP AG Page 33 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
copy SAP AG Page 34 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
copy SAP AG Page 35 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 36 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 37 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 38 of 60
SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Worksheet Account Line item Column Amount
transaction sales
Goods Sold 800
5 User following information to log on the system
User ID Entity
User_S003 S003
6 Choose sheet IC transaction Sales
7 For every account you are going to process choose the account and right choose choose EVDREInsert memberhellip on the Insert memberhellip screen make the following entries
Field name Description User action and values Comment
INTERCO I_S000Company
View members by ID And Description
8 Make the following entries
Worksheet Account Line item Column Amount
IC transaction sales
Inventory -S000Company Ending Balance
400
IC transaction sales
Cost of Goods Sold
-S000Company Period Value 600
9 Choose Save
10 On the Send and Refresh Schedules screen choose Active Workbook and choose Refresh
528 Submiting Data
PurposeEvery subsidiary has submitted the data
Procedure1 Refer to Step32 log on the system via user user_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Submit Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to submit data Eg S000
Currency LC Only the data in LC will be submitted
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status setting Submitted
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and submit the financial data for different companies
ResultAll the subsidiaries have submitted the data
529 Approving Data
PurposeThe manager in every subsidiary should approve the data
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 36 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 42 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 44 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
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SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user manager_S000 For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose step Approve Data
3 On the right side of the screen choose Another CV on the Work Status Options ndash Step 1 of 2 screen choose Another CV and make sure the following information
Field name Description User action and values Comment
Category ACTUAL As we only cover the actual data so we will only choose category ACTUAL
Entity The entity that you are going to apprve the data For example S000
RptCurrency LC
Time The time you are going to create the consolidation report For example 2011 DEC
4 Choose the green arrow in the screen
5 On the Work Status Options ndash Step 2 of 2 screen choose New work status settingApproved
6 Choose the green arrow in the screen
7 Repeat the above-mentioned steps 1-6 log on the system with different user and approve the financial data for different companies
ResultThe relevant managers have reviewed and approved the data
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SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5210 Checking the Data Approval Status
PurposeAll the subsidiaries have submitted the data and data has been checked properly The responsible person in the group checks the overall status and determines if the next step consolidation process could be initiated
Procedure1 Refer to Step 32 log on the system via user conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Work Status
3 On the worksheet check if all the status is Approved
4 Choose Refresh to refresh the report result
5 Choose Back to BPF
6 From the BPF step list choose the Complete button under step Uploading Data to complete this step
ResultAll the data has been approved and submitted to the group level the next consolidation process could be initialized
53 Consolidation Process
531 Foreign Currency Conversion
PurposeAll the financial statement submitted to the group are with its local currency we should convert the amount in local currency to the amount in reporting currency of the consolidation report
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
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SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
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SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
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- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose Consolidation Process
3 Choose Foreign Currency Conversion
4 On the Data Manager screen choose Financial Process package group
5 Choose package Currency Conversion choose Run
6 On the Data Manager ndash Run Package screen make the following entries
Field name Description User action and values Comment
Entity ltallgt All entities
Category ACTUAL All the actual data
RptCurrency Reporting currency
USD
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 38 of 60
SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 39 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 40 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 41 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 42 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 43 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
copy SAP AG Page 45 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
7 Choose Run now
8 Choose Next
9 Choose Finish
10 On the SAP BusinessObjeects screen choose OK
ResultAll the financial statement data submitted by the subsidiaries have been converted to the report currency of the consolidation report
532 Pushing Data to IC-Maching
PurposeCopy all the inter-company transaction data from application Consolidation to application IC matching
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 39 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 40 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 41 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 42 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 43 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 44 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
copy SAP AG Page 45 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Push Data to IC-Matching
3 From the list choose package group Financial Process and then choose Data Package Push ToICMatching and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Entity S000S001 S002 and S003
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
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SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been copied to application IC Mataching
533 Running IC-Matching
PurposePerform automatic checking for all the inter-company transaction data
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application ICMatching
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 41 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
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SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 43 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 44 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
copy SAP AG Page 45 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run IC-Matching
3 From the list choose Package Group Financial Process and then choose IC Maching and choose Next
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 42 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 43 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 44 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
copy SAP AG Page 45 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Run now
6 Choose Next
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultAll the inter-company transaction data has been checked via the system
534 Checking IC Matching Result ndash Sales
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
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SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
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SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose stepReview ICMatching Result Sales
3 On the working sheet check if there is any difference is listed
4 If there is any difference which is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X)receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529 and 5210
9 For the adjusted data should process steps 531 532 and 533
10 From the BPF step list chooseReview ICMatching Result Sales
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Inventory transaction data has been checked
535 Checking IC Matching Result ndash AR amp AP
PurposeCheck the IC-matching result
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 44 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
copy SAP AG Page 45 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review ICMatching Result ARampAP
3 On the working sheet check if there is any difference is listed
4 If there is any difference whihc is not acceptable go to BPF step list choose Re-open Step beside Consolidation Process
5 Send the difference report to the relevant subsidiaries and the counter-party and ask them to do the adjustement accordingly
6 If the management in the subsidiary (Manager_S00X) receives the difference report from the headquarter they should follow step 529 and change the new workstatus as unlocked in step 5
7 The financial specialist in the subsidiary (User_S00X) should repeat steps from 527 to 528
8 The reponsible person in the group should monitor the approval status via step 529
9 For the adjusted data should process steps 531 532and 533
10 From the BPFstep list chooseReview ICMatching Result ARampAP
11 On the working sheet check if there is any difference is listed
12 If there is any difference please process above-mentioned step 4-11
ResultAll the inter-company Account Receivable and Account Payable transaction has been checked
In our scenario if the ending exchange rate for USDEUR yoursquove entered in step 511 there will be a difference 265 USD As this difference is caused by exchange rate difference it should be acceptable We should adjust it in step 536
536 Journal Entry
PurposeFor the required elimination which is not covered in the above-mentioned steps or if it is required to do any adjustment for the financial statements please use this step to do the necessary adjustment
5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
PurposeThe inter-company transaction difference caused by the exchange rate change should be adjusted directly
For example in our case for the inter-company transaction 2 it covers different currency S000 and S002 provided the inter-company information in their own local currency there will be exchange rate difference after the Inter-company checking For this kind of difference you could make the adjustment in this step
The difference is USD 265 We should make an entry ldquoCredit NW01BS0505 with amount USD 265
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
copy SAP AG Page 45 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Field name Description User action and values Comment
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 46 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 Choose Business Process Flows
3 Choose Consolidation Process
4 From the BPF step list choose step Jounal Entry Choose Cancel for the pop up window Jounal Manager Query In EV4Journal screen Make the following entries
Field name Description User action and values Comment
Appset Application Set Use the default value Application SetSAP_BP_Conso_GL
Application Application Use the default value ApplicationConsolidation
Time 2011DEC
Category ACTUAL
RptCurrency USD
Journal ID
Journal Group
Description
Selection List
Server Name Use the default value For example HTTPVMW 4594 1080
Entry Status Use the default value New
Old Journal ID
copy SAP AG Page 47 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 On the line item screen make the following entries
Double-choose the field and choose the proper value to enter the items
Field name The 1st line item Remark
ConsoScope G_H1
Entity ELIM_UNIT
Account NW01BS0505 View members by ID and Description
Interco I_NONE
DataSrc ELIM10
FLOW F99 F99(Ending Balance)PL99(period value of current
period)
Remark
Debit
Credit 265
6 Choose Save journal
7 Choose OK for the message Jounal successfully saved
8 Choose Post journal
9 Choose Yes for the message Do you want to post a journal
10 Choose Close for Journal post results
11 Choose Back to BPF
ResultThe adjustment entries have been recorded in the system
5362 Adjusting the Value of Investment
PurposeAssume that the parent company S000 used Equity Method to record the investment During the consolidation procedure a journal entry should be created to eliminate the changes in long term investment of current year In our case there is no dividend paid out by S001 S002 or S003 in Year 2011
copy SAP AG Page 48 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Equity in Subsidiary lsquos net income
S003 net income 90 + S001 net income + S002 net income
CR Long term Investment Same as above
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
As the journal entry result will directly adjust the consolidation reportfor any entry related to the PL account we should add an entry for Retained Earning with the same amount
5363 Adjustment entry to determine the goodwill
PurposeEliminate the change of investment
For the acquisition of S003 S000 acquires 90 interest in S003 in exchange of shares of stock which having a total market value of $ 120 600 in 2010
The Book Value of the net asset in S003 is $ 59300 The fair value of the net asset is $71300The difference between Net Book Value and the Fair value of the identifiable assets is $ 12000 The details are as following
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
copy SAP AG Page 49 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Asset The difference between Net Book Value and Fair Value
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
According to Full Goodwill Method the goodwill should be recorded is as $ 62700
12060090 = 134000
134000 ndash fair value of the net asset 71300 = 62700
Non Controlling Interest is 134000 10 = 13400
DebitCredit Description Amount Comment
DR Goodwill 62700
Inventories 4000
Property plant and equipment net
8000
Preferred Stock 10000
Common Stock 40000
Retained Earnings 9300
CR Long Term Investment 120600
Non-Controlling Interest
13400
copy SAP AG Page 50 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
PurposeTo eliminate amortization of the revaluations to fair value made in the above journal entry
Asset The difference between Net Book Value and Fair Value
Inventories 4000
Property plant and equipment net 8000
Total 12000
The equipment should be amortized in the following 4 years
In year 2010 for S003 all the inventory has not been sold out Only the equipment has been depreciated for USD 2000
In year 2011 for S003 all the inventory (related to the revaluation) has not been sold out So the adjusting entry is
copy SAP AG Page 51 of 60
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
DebitCredit Description Amount Comment
DR Cost of Goods Sold 4000
Retained Earnings
2000 The depreciation expense of equipment in year 2010
Depreciation Expense 2000
Retained Earnings
6000 (for the PL accounts adjustment in this entry)
CR Inventory 4000
Accumulated Depreciation
4000
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5365 Adjustment Entry to Eliminate the Long-Term Investment
PurposeIn this step we could create the journal entry to eliminate the long-term investment for company S001 and S002
copy SAP AG Page 52 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
5366 Determine the Income related to Non-controlling Interest
PurposeThis journal entry has only one item which is used to record the amount for Non-controlling Interest Income In our case all the sales transactions are down straight so the non controlling interest income is just 10 of S003 net income
copy SAP AG Page 53 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user user_S000 Refer to Step 32 log on the
system via user Conso_C For step 10 on the SAP BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 Choose Consolidation Process
3 From BPF step list choose Journal Entry
4 Refer to the following screen dump and make the journal entry
537 Running Consolidation
PurposeVia Running Consolidation following procedure should be done
Eliminate the long-term investment with the ownerrsquos equity of subsidiaries determine the minority interest
Eliminate the return of investment Update the above-mentioned elimination entries in the consolidation working sheet Update the above-mentioned adjustment entries in the consolidation working sheet
copy SAP AG Page 54 of 60
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Application Consolidation
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 55 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Run consolidation
3 Choose Package Group Financial Process from the list choose LegalConsolidation and choose Run
4 On the Data Manager- Run Package screen make the following entries
Field name Description User action and values Comment
Category ACTUAL All the Actual Data
Consoscope G_H1
Time The time you are going to create the consolidation report For example 2011 DEC
copy SAP AG Page 56 of 60
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
5 Choose Next
6 Choose Run now
7 Choose Finish
8 On the SAP BusinessObjeects screen choose OK
ResultConsolidation has been processed
538 Checking Consolidation Working Sheet
PurposeCheck the consolidation result via the format of consolidation working sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Consoscope Company G_H1
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 57 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review consolidation sheet
3 Check the worksheet
4 If there is any adjustment required repeat steps536 and 537
ResultCheck the consolidation result in the consolidation working sheet
539 Checking Validation Result for Cosolidation Report
PurposeValidation checking the consolidation report
Procedure 1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 58 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review validation report
3 Check all the data in the validation report
4 Further analyze the items marked as incorrect
5 For the items should be corrected please refer to 536 537 and 538
6 After the adjustement choose Refresh to update the validation result
ResultAll the consolidation reports have been validated
5310 Closing this Step
PurposeClose the step Consolidation Process
Procedure1 From the BPF step list choose the Complete button under step Consolidation Process to
complete this step
ResultStep3Consolidation Process has been completed
54 Consolidation Report
541 Presenting Consolidated Balance Sheet Statement
PurposePresent Consolidated Balance Sheet
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
copy SAP AG Page 59 of 60
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
SAP Best Practices Legal Consolidation (B64) BPD
2 From the BPF step list choose step Review Consolid Balance Sheet
3 Present the consolidated balance sheet
ResultConsolidated Balance Sheet has been finished
542 Presenting Consolidated Income Statement
PurposePresent Consolidated Income Statement
Procedure1 Refer to Step 32 log on the system via user Conso For step 10 on the SAP
BusinessObjects ndash Business Process Flows page make the following entries
Field name Description User action and values Comment
Entity Company CON_GROUP
Time The period of the consolidation report
For example 2011DEC
2 From the BPF step list choose stepReview Consolid Profit Loss Statement
3 Present the consolidated Income Statement
ResultConsolidated Income Statement has been finished
copy SAP AG Page 60 of 60
- Copyright
- Icons
- Typographic Conventions
- Contents
- 1 Purpose
- 2 Background Information
-
- 21 Ownership Information
- 22 Intercompany Transaction
- 23 Other Information
-
- 3 Preparation
-
- 31 IE Setting
- 32 Logging on SAP BPC system
- 33 IE Configuration - Back to BPF
- 34 Switch User Log on SAP BPC system
- 35 Logon Interface for Excel
-
- 4 Process Overview
- 5 Business Processes
-
- 51 Preparation
-
- Purpose
- 511 Entering Exchange Rate
-
- Purpose
- Procedure
- Result
-
- 512 Entering Ownership Information
-
- Purpose
- Procedure
- Result
-
- 513 Copying Opening Data
-
- Purpose
- Procedure
- Result
-
- 514 Closing the Step
-
- Purpose
- Procedure
- Result
-
- 52 Uploading Data (All the Companies in the Group)
-
- Purpose
- 521 Uploading Financial Statements
-
- Purpose
- Procedure
- Result
-
- 522 Importing Financial Statements
-
- Purpose
- Procedure
- Result
-
- 523 Reviewing Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 524 Reviewing Profit Loss Statement
-
- Purpose
- Procedure
- Result
-
- 525 Checking Onwerrsquos Equity Statement
-
- Purpose
- Procedure
- Result
-
- 526 Checking Validation Report Result
-
- Purpose
- Procedure
- Result
-
- 527 Entering Inter-Company Transaction Data
-
- Purpose
- Procedure
- 5271 Intercompany Transaction No 1
-
- Transaction Data
- Procedure
-
- 5272 Intercompany Transaction No2
-
- Transaction Data
- Procedure
-
- 5273 Intercompany Transaction No3
-
- Transaction Data
- Procedure
-
- 5274 Intercompany Transaction No4
-
- Transaction Data
- Procedure
-
- 528 Submiting Data
-
- Purpose
- Procedure
- Result
-
- 529 Approving Data
-
- Purpose
- Procedure
- Result
-
- 5210 Checking the Data Approval Status
-
- Purpose
- Procedure
- Result
-
- 53 Consolidation Process
-
- 531 Foreign Currency Conversion
-
- Purpose
- Procedure
- Result
-
- 532 Pushing Data to IC-Maching
-
- Purpose
- Procedure
- Result
-
- 533 Running IC-Matching
-
- Purpose
- Procedure
- Result
-
- 534 Checking IC Matching Result ndash Sales
-
- Purpose
- Procedure
- Result
-
- 535 Checking IC Matching Result ndash AR amp AP
-
- Purpose
- Procedure
- Result
-
- 536 Journal Entry
-
- Purpose
- 5361 Adjustment entry to eliminate exchange rate difference caused in the intercompany transaction
-
- Purpose
- Procedure
- Result
-
- 5362 Adjusting the Value of Investment
-
- Purpose
- Procedure
-
- 5363 Adjustment entry to determine the goodwill
-
- Purpose
- Procedure
-
- 5364 Adjustment Entry to Amortize the Revaluation to Fair Value Made in the Previous Entry
-
- Purpose
- Procedure
-
- 5365 Adjustment Entry to Eliminate the Long-Term Investment
-
- Purpose
- Procedure
-
- 5366 Determine the Income related to Non-controlling Interest
-
- Purpose
- Procedure
-
- 537 Running Consolidation
-
- Purpose
- Procedure
- Result
-
- 538 Checking Consolidation Working Sheet
-
- Purpose
- Procedure
- Result
-
- 539 Checking Validation Result for Cosolidation Report
-
- Purpose
- Procedure
- Result
-
- 5310 Closing this Step
-
- Purpose
- Procedure
- Result
-
- 54 Consolidation Report
-
- 541 Presenting Consolidated Balance Sheet Statement
-
- Purpose
- Procedure
- Result
-
- 542 Presenting Consolidated Income Statement
-
- Purpose
- Procedure
- Result
-
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