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Step-by-Step Guide to Leveraging Inter- and Intra- Company Processing Options for More Efficient Management Reporting

by The Tip Doctor

June 27, 2011

Tip Doctor, Insider Learning Network.

The following tip has been taken from Manish Dharnidharka’s presentation “A Step-by-Step Guide to Leveraging Inter- and Intra- Company Processing Options for More Efficient Management Reporting” which took place at the Financials 2011 conference in Las Vegas, March 8-11.

The below tip provides an example of how to set up intra-company transactions.

Intra-Company Configuration and Accounting

  • Field “Profit center” is used to represent a company within a company
  • New field “Segment” was introduced with SAP ERP Central Component 5.0/6.0, is assigned in the profit center master data, and its main purpose is to be used for SEC/IFRS segment reporting requirements
  • To facilitate accounting for intra-company processes the document splitting functionality was introduced with SAP ERP Central Component 5.0/6.0
  • Zero-balancing functionality within the document splitting helps balance the accounting entry by profit center/segment
  • Accounting is similar to the previously discussed accounting for inter-company’s option 1 (using GL account)
  • No other option is available

Document Splitting Configuration

  • Menu path for document splitting configuration
    • IMG -> Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting

      To simplify, configuration Wizard for document splitting was introduced with EhP4:

Zero-Balancing Configuration 

  • Similar to the inter-company clearing account, inter-profit center clearing account is setup in the zero-balancing configuration


  • Only one account can be set for all combinations of intra-company transactions

Resulting Accounting Entry for Intra-Company

  • This example shows movement of cost from one profit center to another (P3100 to P3200)

  • The resulting document in the SAP General Ledger gets two additional inter-PC clearing lines based on the zero-balancing configuration (using GL account 194500)






    • Inter-PC clearing lines has partner profit center/segment information which can be very useful for management reporting

Analysis of Inter-PC Clearing Lines

  • The inter-profit center clearing account (194500) line items were created as a result of cross-profit center posting and the configuration of zero-balancing functionality
  • System creates a line item that represents a receivable in P3100 with P3200 as the partner profit center
  • System creates a line item that represents a payable in P3200 with 3100 as the partner profit center
  • Clearing lines make the entry balanced by profit center and segment and is a key to achieving balance sheet by profit center/segment

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COMMENTS

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R Tricari

9/25/2013 8:56:06 PM

How can I get the whole presentation “A Step-by-Step Guide to Leveraging Inter- and Intra- Company Processing Options for More Efficient Management Reporting” which took place at the Financials 2011 conference in Las Vegas, March 8-11.

Thanks


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