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Proportional Consolidation: New Functionality ( RELN45A_EC_CS_PROPORTION )

Proportional Consolidation: New Functionality ( RELN45A_EC_CS_PROPORTION )

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Proportional Consolidation: New Functionality

Description

In Release 4.5A, the SAP Component Consolidation features the 'proportional method' of consolidation of enterprises, in addition to the 'purchase' and 'equity methods'. Mid-year increases and reductions of the proportion of ownership are supported by all functions (interunit elimination, elimination of interunit profit or loss, reclassification, consolidation of investments). Any percentage rate can be used for the proportion. Two-sided eliminations distinguish between the variants 'minimum apportionment' and 'product apportionment'.

The reported financial data and the standardizing entries are apportioned in local currency, transaction currency, and group currency. The data is reported and standardized at full amounts. The apportionment does not modify the data, so the data remains available for auditing purposes.

The elimination of interunit payables and receivables and interunit revenue and expense allows you to reclassify minority interest in the payables or receivables, and revenue or expense, to special financial statement items. The reclassification, which is triggered by the apportionment, is disclosed in separate document line items.

The elimination of interunit profit and loss in transferred inventory only eliminates the proportional profit and loss. The posting document is divided in two parts: The first part eliminates the entire interunit profit or loss, and the second adjusts the document according to the proportion.

Reclassifications also generate a partial document that contains an adjustment for the proportion.

All of the activities of consolidation of investments take the apportionment into account. Minority interest in investee equity and annual net income is calculated when dealing with multi-level investments in a proportionally consolidated company.

The reporting functions disclose the apportionment adjustments for the group. This means that a given consolidation unit can be included in multiple consolidation groups using different accounting techniques (for example, the purchase, proportional, or equity method). The reports can separately list all apportionment adjustments made against the automatic consolidation entries.

Damage caused to data by errors

Software/hardware requirements

Installation information

Effects on System Administration

Effects on Customizing

Before proportional consolidation can be used, you need to perform the following Customizing activities:

  1. In Utilization of Consolidation of Investments, choose accounting technique "proportional consolidation".
  2. Create one or more consolidation of investment methods dedicated to proportional consolidation. If you do not use consolidation of investments (C/I), no further C/I settings are required.
  3. Allocate the C/I methods to the respective consolidation units at the group level.
  4. Create the FS item "Annual Net Income Prior to Proportion Change" and enter the item at the other selected items for consolidation of investments.
  5. Create a task for performing apportionments and assign it to the task group for the data monitor.
  6. In dimension maintenance, in the two-sided elimination section, determine whether you want to do minimum apportionments or product apportionments.
  7. In the methods for interunit elimination, maintain the FS items for reclassifications to third parties.

Effect on batch input

Changes to the Interface

Changes in procedure

Procedure for removing dataset errors

Dependent functions

Planning

Further notes

The proportion of a consolidation unit must remain the same in all consolidation groups in which the consolidation unit is proportionally included. However, you can use different versions to portray different consolidation proportions.

Only in special constellations can proportionally consolidated companies hold investments in other consolidation units that are included in the same consolidation group.






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This documentation is copyright by SAP AG.

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