Define Conversion of Subsidiary's Chart of Accounts

Outcome

A range of accounting identities in the subsidiary is connected to each account in the parent company's chart of accounts.

If account conversion is selected for the subsidiary in 'Settings – Transfer of General Ledger' (GMS015/E) and 'Settings – Transfer of Budget' (GMS020/E), the chart of accounts is converted when a consolidation proposal is created in 'Consolidation Proposal. Create/Transfer' (GMS200).

The account conversion table is saved in the GMCHAH and GMCHAD tables.

Before you start

• The subsidiaries' and parent company's charts of accounts must be defined in 'Accounting Identity. Open' (CRS630).
• You must have a good understanding of the accounting policy of both the parent company and the subsidiary.
• The accounting dimensions to include in consolidation are selected in 'Settings – Transfer of General Ledger' (GMS015).

Follow These Steps

1. Start 'Account Conversion. Open Table' (GMS100/B). Check that the panel sequence is set to E1.

2. Enter an account in the parent company's chart of accounts. Select Create.

   Please note: The account you enter is not automatically validated against the parent company's chart of accounts, since that chart of accounts can be in another system.

3. On the E panel, enter a name and description (mandatory).

4. Select the check boxes for the accounting dimensions whose figures you want to include in the consolidation proposal.

   For example, if you select accounting dimension 2 (Cost center), a separate record for each combination of account and cost center will be created in the consolidation proposal. If you also select accounting dimension 3 (Product group), a separate record is created for each combination of account, cost center and product group. Only the accounting dimensions selected in 'Settings – Transfer of General Ledger' (GMS015) are displayed on this panel.

5. If the subsidiary will convert the transactions to the currency of the parent company, select an exchange rate type. Press Enter.

6. In 'Account Conversion. Open Table Lines' (GMS101/B), enter an ID for a range of accounting identities in the subsidiary's chart of accounts to connect to the parent company's account. Click Create.

7. In (GMS101/E), enter the range of accounting identities in the From and To accounting strings. Press Enter.

8. Repeat steps 6 and 7 to add further ranges. When finished, click Close.

9. Repeat the procedure for the next account.

   If you intend to use account conversion, all the business accounts in the parent company's chart of accounts – not just those that differ from the subsidiary's chart of accounts – must be entered.