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Is COI required for CGC?

tanja_gliege
Participant
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Hi,

During the initial configuration of our data model the tasks for COI and CGC were out of scope and necessary cubes and objects have not been activated. We have defined the data streams only for totals records and documents. And we only have one consolidation area. So far any organisational changes were made at the beginning of a new year. Now the desire arose to move consolidation units mid year (within the management reporting structure only). Within our company structure there are only wholly owed subsidiaries (so no minority interest) or 50/50 JV's. Currenty the COI elimination adjustements are all posted manually.

Can the Consolidation Group change be implemented without the activation of the addional cubes for COI? Or are some items from COI required for the CGC task?

Is the config requirement much different when moving a company mid year than at the end of the year?

Your input would be very much apreciated.

Tanja

Accepted Solutions (1)

Accepted Solutions (1)

dan_sullivan
Active Contributor
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Cons group changes may be implemented without additional data streams in your case and I recommend doing so.

There is plenty of discussions regarding the correct cons group master data changes in this forum as well as SAP help to facilitate the correct cons group changes postings. It is important that the cons unit movements are not done via drag-and-drop, but that they be created in the new position and left in the old as well with parameters set to the period of the change. The cons group master data must then indicate the period and year of divestiture for the old cons group and the period of first consolidation in the new cons group according to whether the movement is upward vertical, horizontal or downward vertical.

Edited by: Dan Sullivan on May 5, 2011 7:41 AM

Edited by: Dan Sullivan on May 5, 2011 7:43 AM

Answers (3)

Answers (3)

tanja_gliege
Participant
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We have almost the identical situation of No COI, but immediate need for Group Change functions. In configuration, we have regenerated the data streams, activated COI in the Cons Area, and tried to do as much of COI configuration as possible including the appropriations of retained earning and Goodwill. One obvious problem is that the present chart of accounts lacks the typical FS items for these processes including minority interest functions. The Change of Consolidation Group has been fully configured for tasks and document types, and inserted into the Cons monitor. Would you all please indicate for me if this will, in your experiences, work .....and will it be necessary or best to install COI including the appropriations of Retained earnings...to have the functionality of cons group preparation. ? Maintining the new location and the old location makes sense until the new year, but i wonder if adding the statistical accounts would not be a good move so that the old can be removed at year end, but retain information for last year comparison. we are a team on BCS, Tanja and Robert Mathewson with split responsibility.

Your kind assistance shall be appreciated. Tanja and RCM.

dan_sullivan
Active Contributor
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Yes, COI may be configured to some extent without being fully implemented. I presented on this very topic at the SAP Financials 2011 conference in Las Vegas a few months ago.

It is correct that the appropriation of RE must be configured for cons group changes tasks. When COI is not implemented this is included in the cons group changes configuration, but when COI is implemented it no longer appears in cons group changes configuration and is then included in the COI setting configurations.

Because of complexities of COI it is suggested you avoid using it unless there is truly value in using it. Implementing it only for cons group changes is not enough reason alone. The data for prior years will continue to exist for reporting without COI. As mentioned there is no harm in leaving the cons unit in the hierarchy within the divesting cons group for several years if it accommodates the reporting of year-over-year reporting.

tanja_gliege
Participant
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Thanks you Dan : )

I'm a bit confused about the meaning of horizontal move. Could you give me an example of when a cons unit would be moving horizontally?

Thanks,

Tanja

dan_sullivan
Active Contributor
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Horizontal is when the cons unit moves to a different cons group that is at the same level of the hierarchy as the departing cons group.

tanja_gliege
Participant
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Thanks Dan : )

Is there anything I need to watch out for?

How long would you say should the cons group that moves to the new cons unit stay on the hierarchy of the old cons group?

Kind regards,

Tanja

dan_sullivan
Active Contributor
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As mentioned in my earlier post, it is important to know how to make the cons group master data changes with respect to divestiture period and period of first consolidation. It is different depending on the movement.

SAP suggest the cons unit remain in the old or divested oncs group until the beginning of the new year after the change. However for year-over-year comparison reports it must remain for another year or more depending on how many years are compared.