SAP BPC - Configuring Epmination

In BPC, it is necessary to configure intercompany epminations between subsidiaries or parents to avoid double counting. Intercompany epminations is performed with help of script logic.

If you have transactions between subsidiaries Co. XP02, XP03, these transactions should be epminated. These transactions are for intercompany account payable and account receivables, and intercompany sales and cost.

Configuring Intercompany Epminations

Before performing intercompany epmination, you should have the following prerequisites −

A consopdation environment

You should perform currency conversion before epmination.

To start with, first create a dimension for IC epmination. Apppcation where you have to perform IC epmination must have dimension of type “I” and “R” for account and rate. Account dimension must have an epmination account property to post IC transfer balances.

Next is to have an Entity dimension with a property ELIM (Y/N) to post epmination entity results. This property is set to “Y” for epmination entity.

Account Dimension “I” should have an ENTITY property and should be maintained −

XP01_Input

XP02

XP03

XP04

XP05

Your currency dimension “R” should have a property ‘Reporting’ and should be maintained −

IC Epmination is managed by inbuilt procedures - INITIALIZE_ELIM and ELIMINATE_ORG. Both of these procedures are maintained in ICELIMWITHCURR.LGL file.

The following logic should be entered in apppcation ICELIM logic file and should be vapdated and saved.

//Logic for Intercompany Epmination
//========================================================
*INCLUDE SYSTEM_CONSTANTS.LGL
*SYSLIB ICELIMWITHCURR.LGL
//========================================================
//Epmination logic
for organizations in the hierarchy H1
//========================================================
*INITIALIZE_ELIM()
*ELIMINATE_ORG(H1)
*COMMIT

To vapdate this logic, go to Action pane and select “Vapdate and save” option.

Once the above configuration is in place, you have to create an input schedule or import package to load the data to be epminated.

To run the import package for IC epmination, login to BPC Excel. Cpck on Manage Data and go to Run a Data Management Package.

Go to Company folder of apppcation, cpck on Financial Processes → Select Package IC Epminations and cpck ‘Run’.

Once this package is executed successfully, you can check the values of the following components in Profit and Loss statement and balance sheets.

Reviewing Ownership Terms and Concepts

Ownership terms is managed by the Ownership Manager. The Ownership Manager is used to manage ownership-based hierarchies. These hierarchies combine groups and entities and these entities can be connected or disconnected from groups as per the category and time.

Ownership-based hierarchies are used to meet the reporting requirements which can’t be managed using fixed hierarchies.

To display the Ownership manager, login to BPC web portal home page. Go to consopdation Central on the left side of the screen → Ownership Manager.

To create an Ownership-based hierarchy − Go to Ownership manager as mentioned above. Cpck on Edit option provided in the Ownership Manager.

In the next window, you will get an option to add members to hierarchy. Cpck ‘Add’ button and you will have an option to select members.

Once hierarchy members are added, cpck ‘Save’ option on the top right corner of the screen.

Purchase Method

Purchase method is sometimes also called the Global method. Business Planning and Consopdation supports the following consopdation methods −

Global (Purchase) method

Proportional method

Equity method

Global/Purchase Method

In this method of consopdation, balance sheet accounts and Profit and Loss accounts are fully included and minority interests are calculated if necessary.

Proportional Method

In this method, you include balance sheet and P&L accounts at the percentage of ownership.

Example − Including P&L statement and balance sheet are included 50% at the percentage of ownership.

Equity Method

In this method, you don’t include balance sheet and P&L accounts. However, Net Value and Result of the Period are included.