financial consolidation

Business Network IntegrationFinancial Consolidation Preparation

SAP Best Practices Cross-Industry Package SAP Best Practices

Purpose This scenario, aimed at supporting consolidation preparation, enables subsidiaries to contribute data

to the legal consolidation process and Intercompany Reconciliation.

Scope The focus of this Best Practice solution is the contribution of consolidation and intercompany

reconciliation relevant data from a BAiO system Not in scope are any kind of consolidation logic, and support for the elimination of IC profit and losses

consolidation scenario. This solution does not focus on any kind of SAP or third party consolidation, reconciliation tool or

software. The intention is to have a generic solution that can support various consolidation landscapes.

Benefits Contribution of data to consolidation processes, and intercompany reconciliation with data extracts

from BAiO that can be used in various consolidation tools or spread sheet solutions. Having consolidation relevant data in place for performing group consolidation in a simple, structured

group hierarchy No additional license fees for small and medium groups using BAiO.

Key processes covered Extraction and provision of data for summary financial statements Extraction and provision of data for the elimination of Intercompany payables and receivables, and

Intercompany Reconciliation Extraction and provision of data for the elimination of Intercompany revenue and expenses Extraction and provision of data for the consolidation of investments

Purpose and Benefits:

Scenario Overview – 1

SAP Applications Required:

Required SAP ECC 6.0 EhP4

Company roles involved in the process flows Accounts Receivable Accountant Accounts Payable Accountant Chief Accountant CFO

Scenario Overview – 2

Scenario Overview – 3Financial Statement for Consolidation

Requirements Create an individual financial statement with the Group Chart of Accounts for each

consolidated subsidiary, to be used as the basis for a group-wide aggregated balance sheet and P&L Statement

Create the data base for subsequent consolidation activities by aggregating the individual financial statements into a summarized financial statement

Provided solution Report RFBILA00 The report provides both a balance sheet and profit and loss statement for each

company based on a group chart of account, or a mutual operational chart of account.

The report content can be downloaded in various file formats Customers can merge the individual financial statements in a system of their choice

in order to generate an aggregated group financial statement.

Benefits The easy creation of a summarized financial statement for further consolidiation

activities.

Process Description in Detail:

Scenario Overview – 4Consolidation/Elimination of Intercompany Accounts

Requirements The elimination of receivables and payables between consolidated companies

belonging to one group The reconciliation of receivables and payables between companies belonging to

one group Business partner data needed when identifying account line items relating to

consolidated companies

Provided solution Report RFITEMAR provides the open items posted on receivables and payables

accounts relating to consolidated group companies. Report FAGL_ACCOUNT_ITEMS_GL provides the relevant open items

(receivables, payables) relating to the consolidated group companies posted on the General Ledger Accounts.

Report results can be used to determine consolidation postings and to reconcile open items.

Benefits Supporting this consolidation and reconciliation scenario means offering a solution

that most customers are interested in, because it is the largest part of every consolidation preparation process.


Scenario Overview – 5Consolidation of Intercompany Revenues and Expenses

Requirements The elimination of revenues and expenses deriving from intercompany business

transactions.• ICO delivery of goods and assets• ICO delivery of services• Profits and losses from investments• Other profit and losses

Business partner data needed when identifying account line items relating to consolidated companies

Provided solution Report FAGL_ACCOUNT_ITEMS_GL provides the items (revenues, expenses,

other profits) taken from the General Ledger accounts. The profitability reports (KE30) and Cost estimations with quantitiy structure

(CK11N) provide the production costs and cost of goods sold for both products and/or customers.

Benefits Provides a data base for elimination, reclassification and netting postings.


Scenario Overview – 6Consolidation of Investments

Requirements The elimination of the value of the shares of investment companies against the

equity of the subsidiaries. Avoid showing the value of investment companies twice in the consolidated

financial statement. The account balances for the investments and equity needed, as well as detailed

information concerning each investment.

Provided solution Report RFSOPO00 provides single posting items for the investment and equity

accounts of one or more fiscal years. The download function enables the processing/analyzing of additional data outside

of BAiO. Customer specific knowledge concerning the investments and report results could

be used as the basis for the correct implementation of capital consolidation.

Benefits The support of a basic consolidation activity that each group must accomplish.

Process description in Detail:

Process Flow DiagramConsolidation Preparation

Ma

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nt Start of

Consolidation Preparation Process

Extract data for the Consolidation of Intergroup Revenue & Expense

End of Consolidation Preparation Process

Sy

ste

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Ad

min

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tor

Extract data for theConsolidation of IC Payables & Receivables

Extract data for the Consolidation of Investments

Verify Data and Reports before use in the Consolidation Process

Generated a summarized Financial Statement for Consolidation

Perform Period End Closing

Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

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Ext

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Business Activity / Event

Unit Process

Process Reference

Sub-Process Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version / Data

System Pass/Fail Decision

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