2 Replies Latest reply: Jul 9, 2011 2:41 PM by Rajat Gupta RSS

Step Consolidation

Rajat Gupta
Currently Being Moderated

Hello,

 

We have a scenario wherein we are doing Step Consolidation. Suppose there are 5 Companies..C1, C2, C3, C4 and C5; C1 is the holding compay of C2 and C3 and C3 is the holding company of C4 and C5. There are Inter-company transactions between all the companies like C1 can transact directly with C5 or through C3; Trading partner is being used.

 

Now, we will first consolidate C4 and C5 into C3 which makes C3 our Consolidation level 1 (CL1); this consolidation will eliminate all inter-company transactions between C3, C4 and C5 but not the inter company transactions that either C1 or C2 had with C3, C4 or C5.

 

Now, we will consolidate C2 and C3 (C3's consolidated financial statements) with C1 which makes C1 our CL2. This consolidation with eliminate all inter-company transactions including the inter-company transactions C1 or C2 had with either C3, C4 or C5 since these would not have been eliminated at CL1.

 

I am planning to create 2 applications, one for each Consolidation Level (CL1 and CL2) wherein I will run Legal Consolidation. But I am unable to figure out how C3's consolidated financial statements would be availabe for consolidation in CL1 application? Can we use/refer data across applications? We are implementing SAP BO BPC 7.5 Netweaver.

 

This is my first BPC implementation...kindly advice.

 

Thanks and regards,

Rajat Gupta

  • Re: Step Consolidation
    Stuart Hooker
    Currently Being Moderated

    Hi Rajat,

     

    The good news is that there's no need for you to create two consolidation applications.

     

    The first thing you need to do is set-up two groups for your two different consolidation levels, and in your ownership app ensure that the correct entities are assigned to each group.  This will allow the system to differentiate intercompany postings according the Group in question.

     

    If you want to store the sub-consolidation results against a specific entity please do the following:

     

    - Create a new entity e.g. Sub Consol Company 3

    - In the Store_Entity property of your group dimension enter Y against your consol group used for the sub consol

    - In the Entity property of your group dimension enter e.g. Sub Consol Company 3

     

    When you process the automatic consolidation rules the engine will save the sub consolidation results against the Sub Consol Company 3 allowing you to see the step consolidation results.

     

    Fortunately if you're running a 7.5 system help is at hand.  I recommend that you install the IFRS appset to see a working example of this config, the documentation around the solution is very good.

     

    Good luck!

     

    Stuart

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