Configuring the consolidation of expenditures and revenue

  1. In Business Modeling, select Modules > Consolidation > Processes and click the Expenditures / Revenue tab.
  2. Perform one of these actions:
    Option Description
    Click the + icon Displays the Add Elimination dialog box.
    Select an elimination and click the Edit icon Displays the Edit Elimination dialog box
  3. Specify this information:
    Id
    Specify an ID for the elimination.
    Name
    Specify a name for the elimination.
    Optionally, click the Translate Name icon and specify translations for the name in one or more languages.
    Threshold
    Specify the threshold at which the elimination applies.
  4. Click the lookup icons to select values for these items:
    • Currency Translation Differences Account: An account to present the currency translation differences.
    • Detail for Currency Translation Differences: A detail for the account that presents the currency translation differences.
    • Other Differences Account: An account to present other differences.
    • Detail for Other Differences: A detail for the account that presents other differences.
    • Account Set: Revenue accounts.
    • Contra-Account Set: Expenses accounts.
    For the Account Set and Contra-Account Set, you can select multiple values. The number of accounts in one set can be different than in the other set. For example, 1:n, n:1, or n:n.
    Note: Consolidation of expenditures and revenue differentiates between Other Differences and Currency Translation Differences only for the R process, which does not use segmentation. For HR and HRE processes, the difference in total is posted only to the Other Differences account.
  5. To save an added elimination or edited elimination, click + Add or Save respectively.
    You can save an elimination when you have specified its ID, name, and threshold. An elimination is marked as configured when all required group accounts and schedule details are specified.
  6. To enable required expenditures/revenue elimination processes, in the Enabled column of the list of processes, select the check box of the processes to enable.
  7. Select additional properties as required.
    These additional properties and values are available:
    • Number of journals per company-intercompany relation

      Represents the number of journals to create in the Journal List for each entity-intercompany relation. These options are available:

      • One: Indicates that one journal is created for both entities together.
      • Two: Indicates that a separate journal is created for each entity.
    • Target for Differences

      Defines the target entity and intercompany to which the Other Differences are posted. The Other Differences are calculated in this way: Total Credit - Total Debit = Other Differences. The difference amount, target entity, and target intercompany are reflected in the corresponding lines of the journal that is generated by a specific consolidation process.

      Note: In the journal lines, the values in the Entity and Intercompany columns are categorized under the Entities business object. If you selected One as the number of journals per company-intercompany relation, to distinguish between the original entity and intercompany in a journal, refer to the Order column in the Entities business object in Business Modeling. Select Business Objects > Organizational > Entities. For the purpose of posting the Other Differences value, the record with the lower order value is designated as the Entity and the record with the higher order value is assigned as Intercompany. For example, if RU0001 has the order value of 10 and RU0002 has the order value of 20, then RU0001 is tagged as Entity and RU0002 is tagged as Intercompany.

      If you selected One as the number of journals per company-intercompany relation, these options are available:

      • According to the account value

        The difference is posted based on the account value, especially the sign of the difference amount. If the difference amount is higher than or equal to 0, the difference is posted as debit against the original entity and intercompany. If the difference amount is less than 0, the difference is posted as credit against the swapped intercompany-entity pair (the target entity becomes the original intercompany and the target intercompany becomes the original entity).

      • External

        The difference is posted to the External element (placeholder account) that holds unmatched intercompany differences during consolidation. If the difference amount is higher than or equal to 0, the difference is posted as debit and the target entity remains as the original entity. If the difference amount is less than 0, the difference is posted as credit and the target entity becomes the original intercompany. The target intercompany becomes External in both cases.

      Note: If you selected Two as the number of journals per company-intercompany relation, to distinguish between the original entity and intercompany in a journal, refer to the journal line that, in the Account column, contains the value that was configured as the Account Set in Business Modeling. That line indicates the original entity and intercompany for the journal.

      If you selected Two as the number of journals per company-intercompany relation, these options are available:

      • According to the account value

        The difference is posted based on the account value, especially the sign of the difference amount. If the difference amount is higher than or equal to 0, the difference is posted as debit against the original entity and intercompany. If the difference amount is less than 0, the difference is posted as credit against the swapped intercompany-entity pair (the target entity becomes the original intercompany and the target intercompany becomes the original entity).

      • Intercompany Relation

        If the difference is higher than or equal to 0, the difference is posted as debit. If the difference is less than 0, the difference is posted as credit. The difference is posted to the intercompany. The target entity becomes the original intercompany and the target intercompany becomes the original entity.

      • Company

        If the difference is higher than or equal to 0, the difference is posted as debit. If the difference is less than 0, the difference is posted as credit. The difference is posted to the original entity. The target entity remains as the original entity and the target intercompany remains as the original intercompany.

      • External

        The difference is posted to the External element (placeholder account) that holds unmatched intercompany differences during consolidation. If the difference amount is higher than or equal to 0, the difference is posted as debit and the target entity remains as the original entity. If the difference amount is less than 0, the difference is posted as credit and the target entity becomes the original intercompany. The target intercompany becomes External in both cases.

        This table shows a use case in which a journal contains only lines with the Contra-Account Set (L300100) and no lines for the Account Set (A220100, A220210):

        Line Entity Account Intercompany Debit Credit
        1 RU0002 - Genesis Finance L300100 - Trade Payables RU0001 - Genesis Cars 5,975.00
        2 RU0002 - Genesis Finance PLUG ST - Intercompany Differences Long term External - External 5,975.00

        If an Account Set is missing in a journal and the journal contains only Contra-Account Set values, the only way to find the original entity and intercompany is to swap them. In this use case, the original entity is RU0001 and the original intercompany is RU0002. Because of the swap, the original intercompany (RU0002) becomes the target entity and the original entity (RU0001) becomes External. The Other Differences value is -5975 and is booked as credit (0 (Total Credit) - 5975 (Total Debit) = -5975 (Other Differences).

    • Consolidation Basis

      Provides options to select the basis from which source data is read with the configured Account Set and Contra-Account Set in Business Modeling. To configure those sets, select Modules > Consolidation > Processes, click the Expenditures / Revenue tab, and click the + icon to add elimination. These options for the Consolidation Basis property are available:

      • Adjusted entity data

        Consolidation level: HB III, name: Adjusted Company Data.

      • Adjusted entity data, including carry forward: Typically used in the consolidation of debts.

        Consolidation level: HB III adjust, name: Adjusted Company Data inc. Carry Forward

      • Consolidated Balance Sheet

        Consolidation level: Consolidated Balance Sheet, name: Consolidated Balance Sheet.

    Note: To find the options for the Consolidation Basis property, select EPM Administration > Dashboards > OLAP > Edit Database and select the DGLEVEL dimension. Alternatively, select Self-Service > Explore Your Data > FinCon Group Balances – DEPMAPPS_DEPM. FinCon Group Balances correspond to the TFINANG cube.
  8. Click Save.
  9. To enable the consolidation process configuration to take effect, publish the model.
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