Business Consolidation (SEM-BCS) PDF

4/20/2019
Business Consolidation (SEM-BCS)

Generated on: 2019-04-20
SAP ERP | 6.16.13
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Validation
Purpose
You use this component to ensure the consistency of the following data:
Reported nancial data
Standardized nancial data
Consolidated data
Additional nancial data
You also can use this component to validate documents.
Integration
You apply validation within the consolidation process as follows:
Before any consolidation entries are posted you need to ensure the consistency of the reported nancial data (and
additional nancial data if applicable) you have collected.
After posting standardizing entries, you need to check the consistency of the standardized nancial data.
After posting the consolidation entries, you can check the consistency of the consolidated data.
You can validate the documents during posting.
Features
Validation of Totals Data
Validation of Reported Financial Data, Standardized Financial Data, and Consolidated Data
Validation of this data uses validation rules, which you can de ne in Customizing. To do this, you establish selection conditions
(typically for items and subitems), which you then use in a formula. Then the system tests whether the validation rule is true or
false for a given data set.
You can also perform multilevel checks: First, as a precondition the data is tested with a Boolean expression you have de ned.
Depending on whether this check is true or false, the system can do one of the following:
Execute tasks
Perform more checks
Issue a message which was de ned by the customer
Validation of Additional Financial Data
Validation of additional nancial data uses validation rules that are prede ned and xed in the system. The prede ned xed
messages can be output as either error messages or warning messages.
Validation of Documents
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When validating documents, you can choose whether to check the header, the line items, or the entire document. The document
header contains elds whose values equally apply to all line items, in addition to general additional elds.
Whereas validation of totals data examines highly aggregated data (such as net sales per quarter ), validation of documents
focuses on individual line items of documents. Here you can de ne validation rules that correlate the characteristic values and
key gure values within a given data row and check their plausibility.
 Example
You want to ensure that the characteristic values and key gure values in a line item coincide with the dependency
relationships between characteristic values as they apply to consolidation. For example, you can de ne a validation rule that
checks the following:
If document type 05 is assigned to a document and the document has transaction type 220 or 230, the amount in the line
item needs to be greater than zero and be in the group currency.
You de ne validation rules and messages for documents the same way as you do for totals data. Whereas validation of totals
data produces a detailed log, validation of documents generates merely a list of messages incurred during the validation run.
Use of BI Aggregates
To improve task execution performance, you can have validation use the aggregatescontained in the totals data InfoCube. For
the use of aggregates to be feasible, a validation method should have selections for only a few characteristics of the totals data
InfoCube. This is normally the case. For the other characteristics, the validation method aggregates the values contained in the
InfoCube. For characteristics that do not appear in the de nition of a validation method at all, the system can use aggregates
that already exist in SAP NetWeaver Business Intelligence (BI). Accelerated performance is achieved through the reduced
volume of data the method needs to read.
Validation uses existing aggregates automatically as long as these aggregates contain all of the characteristics required for the
validation. To nd out which characteristics are required, choose List of Characteristics in the customizing screen for the
validation method. This displays a list of the characteristics needed to use aggregates. The types of characteristics required
are:
Characteristics used as execution parametersfor the validation method
Characteristics used in the selection conditions of the validation method
Grouping characteristics in the validation rules of the method
Before you can use aggregates, you need to make sure that the aggregates of the totals data InfoCube contain the
characteristics shown on the list. You might need to create suitable aggregates for the totals data InfoCube using tools
available in BI. For more information, see Aggregates and HPA Indexes .
Log
After validation of totals data, the system lists each individual result along with the overall result in the Validation Log . When
executing a validation, you can have the log show only the check results in which errors occurred and, therefore, need to be
examined more closely.
Consequences of Validation
Within the consolidation process, validation is executed after data collection and before the downstream tasks to ensure that
only valid data can be posted.
A validation contains an error if one or more messages with the type error are output. If this occurs, the subsequent tasks can
still be executed, but no longer blocked.
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Example
You can test the reported and the standardized nancial data of a given period to see if the following expressions are true:
Total assets = total liabilities (see also the detailed example )
Net pro t = appropriation of retained earnings
Retained earnings on balance sheet = net income on income statement
Customizing Interface for Validation

De nition
A central environment for de ning validation tasks, methods and rules.
Structure
The following gure shows the validation interface when de ning a validation rule .
Check Hierarchy (1)
Elements of a check hierarchy
In a check hierarchy, you can create validation rules (for example, Total Assets = Total Liabilities).
Under the nodes for a positive validation result and/or negative validation result you can create:
Further validation rules, or
Messages
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The system tests a validation rule at lower levels of the hierarchy only if the next-higher (positive or negative) result is valid. In
other words, the result at a higher level serves as a prerequisite for the rules of the rules at the lower levels.
Copying
You can copy methods, validation rules and messages. Afterwards, you can change the properties of the copied objects and save
them under a different name. For more information, see Reuse of Validation Rules .
Drag&Drop
You can move the elements of the check hierarchy (validation rules, messages, etc.) using Drag&Drop.
Validation Rule
You can de ne validation rules within a validation method.
Validation rules that you create in a validation method are reusable. This means that they are available for any validation
method that has the same validation type and the same data stream type. A validation rule becomes reusable when you assign
a (technical) name to that rule. Then you can copy the validation rule.
For example, you can designate one validation method for exclusive use as a template containing reusable validation rules. You
would then copy and modify this method. Using reusable validation rules can save time customizing your validation methods.
You can set up (reusable) validation rules in different places:
Directly under the workbench entry Validation Rule : Maintenance behaves the same as, for example, maintenance of
single selections.
Within a validation method: Here you can overwrite the key eld (to establish reusability) and create a copy.
Selection Conditions (2)
In this section you select the characteristics used for the validation rule. For each characteristic, you then specify the
characteristic values (for the selection condition).
If you create a rule for validating individual data rows, you can also select key gures. The system lists these automatically.
You create selection conditions by choosing the symbol Create Selection Condition . You can also use single selections for
characteristic values by choosing Complex Selection during the selection process.
You insert the selection condition in the formula editor by double-clicking on the selection condition.
You can copy selection conditions by choosing Copy in the toolbar for the selection condition.
You can delete selection conditions by choosing Delete in the toolbar for the selection condition.
Operators (3)
This section contains frequently-used operators (for example, +, -, =) as well as buttons for manual input of character strings,
numbers, constants, and comments.
Constant
The function Constant , for example, lets you compare item values with a constant in local currency.
The function uses the following syntax: CONST( value, currency key, exchange rate indicator )
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 Example
VAL_YTD( total assets ) > CONST( 1000, USD, 1 )
Use of message variables (Commentbutton)
Message can contain up to four variables that re ect the results of the validation. To do this, you insert a comment with the
characteristic variables behind the value ( Comment button).
 Example
VAL_YTD“&1“ ( assets ) + “&3“ VAL_YTD’’&2’’ ( liabilities ) = 0.
Message output might look like this:
"Assets (&1) not equal to Liabilities (&2);difference: &3."
For more information, see Use of Message Variables .
Grouping (4)
The grouping function allows the differentiated use of a valuation rule for subsets of the data. For example, you can add the
scal year as a grouping characteristic to a validation rule such as
"asset depreciation (balance sheet) = depreciation expense (income statement)" to be able to
perform the rule for each acquisition year.
You add to the list of grouping characteristics those characteristics and attributes you want to group by. To cancel a grouping,
you delete all entries from the list.
The symbol on the Group button indicates that one or more characteristics or attributes have been entered. The symbol
Empty List indicates that the list of characteristics and attributes is empty.
For more information, see Validation with Grouping Characteristic .
Functions (5)
This area contains more functions you can choose.
Several functions are discussed here.
Condition
CONDITION controls which of the validation rules following the condition is executed. The result of the CONDITION function is
Boolean – that is, either true or false . The CONDITION function can be combined with other functions and expressions that also
have Boolean-type results (see example).
The function uses the following syntax: CONDITION( selection condition ).
 Example
CONDITION (company C1000) AND (VAL_YTD (assets) > 0 )
For more information, see Validation with Condition Check .
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Consolidation-Speci c Functions
There are also consolidation-speci c functions, including the following:
VAL_YTD to select cumulative values
VAL_YTD to select periodic values
To select values from prior years, you can use the functions P_VAL_YTD and P_VAL_PER. These functions use the following
syntax (using the periodic function): P_VAL_PER( selection, period, scal year )
If you use generic functions, such as VAL_YTD, VAL_PER, or P_VAL_YTD, the system uses you customizing settings for the
currencies in the task to select values in either the local or group currency. That is, if necessary the system translates the values
it nds into group currency.
Formula Editor (6)
In the formula editor you assemble the formulas for the validation rules from the selections, operators, and functions that are
available.
See also
Detailed documentation on the formula editor by choosing Information in the toolbar for the formula editor.
The section Execution of Validations explains how to customize a validation rule.
Execution of Validations
Purpose
You use this process to initially make the customizing settings for validation of totals data, and then to execute the validation
task.
Prerequisites
Prerequisites for executing validations
Depending on what type of data you want to validate, you need to have executed the following tasks:
For validating reported nancial data: You have collected the reported nancial data.
For validating standardized nancial data: You have posted the standardizing entries and performed currency
translation.
For validating consolidated data: This task is the very last task executed. Thus, you have executed all other tasks.
Process Flow
A. Customizing
Either use the standard customizing settings for validation, or create your own validation methods and tasks, which is described
as follows.
De ne method
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Method
1. To de ne a validation method, go to the process view of the workbench and choose Consolidation
Functions Validation Method .
2. Select the entry Method and choose Display in the context menu.
3. In the lower left screen area, choose Create from the context menu.
4. Create a method and give it a technical name and description.
5. Determine which data stream ( documentsor totalsrecords) and which type of validation you want to use.
Note
The data stream and the validation type are fundamental attributes of the validation method. Therefore, they can be
de ned only when the method is created. Once the method is saved, this setting cannot be changed.
6. Beneath the method, create one or more rules (see the upcoming section).
7. Under the nodes for a positive result and/or negative result you can create:
Further rules, or...
Messages
Validation Rule
You can set up (reusable) validation rules in different places:
Directly under the workbench entry Validation Rule : Maintenance behaves the same as, for example, maintenance of
single selections.
Within a validation method: Here you can overwrite the key eld (to establish reusability) and create a copy.
To create a validation rule:
1. Select the validation type and the data stream type.
2. An entry in the check hierarchy is created after you create a validation rule. If you enter a name (with a maximum length
of 10 characters) directly behind the symbol for the validation rule, the validation rule is stored with this name and
becomes reusable.
You can look up the validation rule in the process view of the workbench at Consolidation Functions Validation Validation
Rule .
3. Edit the formula for the validation rule (see the related section below).
If the name of a validation rule already exists, you are able to overwrite that name.
To copy a validation rule, overwrite the existing name with a new name.
To replace a validation rule, overwrite the name with an existing name.
If you delete the name of a validation rule, this rule is copied to a non-reusable validation rule, which is then assigned to the
validation method.
To delete a validation rule, choose Consolidation Functions Validation Validation Rule in the context menu chooseDisplay ;
now highlight the validation rule and choose Delete in the context menu.For more information, see Reuse of Validation Rules .
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Selection Condition
1. Create a selection condition as follows:
a. Choose Create Selection Condition in the work area of the workbench, in the selection area.
b. Assign a name to the selection condition in the lower screen area.
c. To select characteristics for the selection, choose Insert Characteristic .
d. Select one or more characteristic values for the selection condition. If desired, you can use Complex Selections
( single selections ).
Repeat the same procedure for further selections.
2. Save your changes.
When working with selection conditions, it often helps to know which validation rules of a method are limited to certain
characteristic values and are not performed on all data. It is particularly interesting to know which validation rules are used only
for certain consolidation groups. To gain this knowledge:
1. Choose List Settings in the context menu of the validation method you are interested in .
The system shows a hierarchy with method settings.
2. Expand the node Checks .
3. Place the cursor on the desired selection characteristic and choose Filter .
Now you see only the rules for which a selection has been de ned according to the characteristic you have chosen.
Formula
To assemble a formula for the validation rule, proceed as follows:
1. Place the cursor in the formula editor.
2. Assemble the formula by choosing the functions, selections, and operators. You insert operators by (single-) clicking the
buttons; and you insert selections and functions by double-clicking at the end of the formula or at the position where you
placed the cursor beforehand.
3. Run the syntax check by choosing Check in the toolbar for the formula editor.
4. Save your changes.
Note
For detailed documentation on the formula editor, choose in the toolbar for the formula editor.
Message
Go to Message Maintenance (transaction SE91) and create a message class. You need to create two messages:
One message for a positive result
One message for a negative result
Then return to the workbench and proceed as follows:
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1. To create the message for the positive result, select the positive result and choose Create Message in the context
menu.
The system creates a node for the message.
2. In the work area, specify the message class, the message number, and the message type (for example, "Success" (S)).
Enter the message text.
3. Save the message.
Repeat these steps for the message for the negative result.
De ne Task
1. To de ne a validation task, go to the process view of the workbench and choose Consolidation
Functions Validation Task .
2. Select the entry Task and choose Display in the context menu.
3. In the lower left screen area, choose Create from the context menu.
4. Specify a technical name, a short text, and a medium text for the task.
5. Choose which data is to be validated (reported, standardized, or consolidated nancial data).
6. Determine whether you are validating values in local or group currency.
7. Select the period category .
8. Specify whether the method is to be dependent on the organizational unit.
9. Assign the method (you previously created) to the task.
10. Save the task.
B. Execution of the Validation
Execute the validation task in the consolidation monitor.
1. Place the cursor at the intersection between (a) the task for validating reported nancial data and (b) the consolidation
unit or consolidation group .
2. Choose Update Run.
Result
The result of the validation task is displayed in a log .
Example: Execution of Validation of Reported

Financial Data
Initial Situation
You have collected the reported nancial data and want to check the data before posting standardizing entries.
In doing this, you want to make sure that the assets side equals the liabilities side in the balance sheets of all consolidation
units.
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You consolidate once per year.
Process Flow
A. Customizing
De ne method
Method with validation rule
To de ne a validation method, go to the process view of the workbench and choose Consolidation Functions Validation Method
Select the entry Method and choose Display in the context menu.
In the lower left screen area, choose Create from the context menu.
Create a method with:
The technical nameValMD
The nameValidate Reported Financial Data
Data stream type Totals Records
Validation type Data Rows Are Totaled
Below the method, create the validation rule : Total Assets = Total Liabilities.
Assign the technical nameASSETLIABNow the validation rule is reusable and appears in the list of validation rules when you go
to the process view of the workbench and choose Consolidation Functions Validation Validation Rule
Selection condition
Create a selection condition as follows:
Choose Create Selection Condition in the work area of the workbench, in the selection area.
For the rst selection, assign the titleTotal Assets
To select the characteristic Item , choose Insert Characteristic .
Select the total assets item from the consolidation chart of accounts.
Proceed in the same manner for total liabilities :
The system displays the selections in the work area.
Save your changes.
Formula
You create the formulaVAL_PER( total assets ) + VAL_PER( total liabilities ) = 0. (Total liabilities are added to total assets
because the system stores liability items with a negative sign.) Proceed as follows:
Place the cursor in the formula editor.
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In the function list, double-click the function VAL_PER .
If necessary, place the cursor inside the bracket, and double-click the selectionTotal Assetsin the list of selections.
Select the operator "+".
In the function list, double-click the function VAL_PER .
If necessary, place the cursor inside the second bracket, and double-click the selectionTotal Liabilitiesin the list of selections.
Select the operator "=".
Choose Number and enter “0” (zero) .
Save your changes.
Message
Go to Message Maintenance (transaction SE91) and create a message class and the following two messages:
One message for when the rule total assets = total liabilities is true. Specify the message textTotal assets equals total liabilities
One message for when the rule total assets = total liabilities is false. Specify the message textTotal assets does not equal total
liabilities
Now return to the workbench and proceed as follows:
To create the message for the positive result, select the true node and choose Create Message in the context menu.
The system creates a node for the message.
In the work area, specify the message number, the message class, and the message type (in this case, "Success" (S)).
Save the message.
Proceed in the same manner for the negative result. In this case, use the message type “Error” (E).
De ne Task
To de ne a validation task, go to the process view of the workbench and choose Consolidation Functions Validation Task
Select the entry Task and choose Display in the context menu.
In the lower left screen area, choose Create from the context menu.
Specify a technical name, a short text, and a medium text for the task.
In the group eld Values, choose all of the following options:
Local currency
Select the period category the represents annual consolidation.
To assign the method, choose Independent of Consolidation Unit .
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Assign the method (you previously created) to the task.
Choose Save Log.
Save the task.
B.Execution of the Validation
Prerequisite: The task is assigned in a task hierarchy.
Place the cursor at the intersection between the task for validating reported nancial data and the top consolidation group .
Choose Update Run .
Result
The result of the validation task is displayed in a log. The log is saved.
Reuse of Validation Rules

Use
You use this function to be able to create frequently-used validation rules for validation methods once only. You then reference
the reusable validation rules in the customizing settings for the validation methods that should use these rules. Making
frequently-used validation rules centrally available has the following bene ts:
Improved consistency in customizing settings
Easier change management
Reduced customizing effort
Note
Changes to reusable validation rules affect all validation methods that use those rules. Before making a change, we
recommend that you create a where-used list for the validation rule (using the context menu for the rule) to estimate
the follow-up effort that will be required (for activities such as testing the changed functionality). You may want to
consider copying the validation rule and making the changes to the copy only.
Integration
You cannot operate validation rules as stand-alone functions. Validation rules are executed from within validation methods.
Prerequisites
You have assigned a technical name to one or more validation rules.
Features
Validation rules must be named before they can be reused. You can assign a technical name in one of the following ways:
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You create a validation rule within a validation method and you assign it a technical name. In this case, you have to
proactively assign a name because validation rules do not need to be named when you work within a method and you are
not prompted to enter a name.
You create a validation rule without any reference to a validation method (in the consolidation workbench choose
Consolidation Functions Validation Validation Rule ). In this case, the rule applies to a combination of validation type
and data stream, rather than to a single validation method. The system uses technical names to identify validation rules
that are created independently like this. Therefore, the system prompts you for a technical name (input is required).
You can also enter a description.
Named rules are available in all validation methods that have the same validation type and the same data stream.
Reusable Validation Rules Within Validation Methods
In the customizing settings for validation methods, you can de ne named rules as well as unnamed rules. You also can change
the de nition of a named rule you have referenced in another method. This raises questions concerning the consistency of
customizing settings which are hopefully answered in the scenarios that follow.
Reuse of a Validation Rule
To create a reference to a named validation rule, you add a validation rule in the method settings and you immediately either
enter the technical name of a rule that is available to the current method or select a rule using input help (F4). The system then
uses the de nition of the validation rule in the method you are currently editing.
Creation of a Reusable Validation Rule
To create a new reusable validation rule, you add a validation rule in the method settings and enter a an unused technical name
for this rule. You then create the formula and save the entry. The system then uses the de nition created in the method with
the name you entered and makes it available as a reusable validation rule.
Resolving of Con icts Between Named and Unnamed Validation Rules
You have created an unnamed validation rule in a validation method, and have begun to create the formula. If you now enter a
technical name of a validation rule that already exists, the system does not know which of the two rules you want to use. In this
situation, the system asks you whether you want to replace the unnamed rule with the named rule. You have the following
options:
Yes
The system deletes the de nition of the unnamed rule and adds a reference to the named rule to the validation method.
No
The system deletes the technical name you entered. The de nition of the unnamed validation rule is retained.
Replacing of a Named Validation Rule
A named validation rule has already been assigned to a validation method. You now enter the name of a different named rule.
The system replaces the reference to the previously-assigned rule with a reference to the new rule. If you made changes to the
de nition of the previously-assigned validation rule, the system automatically saves these changes.
Copying of a Named Validation Rule
A named validation rule has already been assigned to a validation method. You now enter a new name that does not yet exist.
The system copies the previously-assigned validation rule and assigns the new name to the copy. The system also replaces the
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reference to the previously-assigned rule with a reference to the new rule. If you made changes to the de nition of the
previously-assigned validation rule, the system automatically saves these changes.
Replacing of a Named Validation Rule with an Unnamed Validation Rule
A named validation rule has already been assigned to a validation method. You now delete this name. The system copies the
previously-assigned validation rule and assigns the copy to the method as an unnamed rule. If you made changes to the
de nition of the previously-assigned validation rule, the system automatically saves these changes.
Use of Message Variables

Use
You use message variables in a message you have assigned to the validation result to display values that either (a)are
calculated in the formula of a validation rule or (b) ow into the formula. This feature makes the validation result immediately
transparent and plausible, thereby saving you the need for time-consuming rechecking and calculating of individual document
line items. Message variables are most bene cial in messages intended for negative results.
Integration
When variables are embedded in a formula of a validation rule, the system transfers the value of the variable determined during
runtime to the messages assigned to the validation results. You edit these messages in Message Maintenance . When editing
messages for a validation rule, you can navigate directly from the consolidation workbench to Message Maintenance.
Prerequisites
The messages you assign to validation rules contain variables in the short text and long text, and those variables can be
substituted with values from the validation rule.
Features
General
To use message variables, you rst need to:
Create one or more message classes in the customer namespace (in Message Maintenance). Within these message
classes, you create messages that describe the various results of a speci c validation rule. You insert variables in the
short or long text of these messages, which are then substituted with values computed during validation runs.
In the de nition of validation rules, you de ne which values substitute which variables.
You can use up to four variables per message. The names of the variables are prede ned. They all start with ampersands and
are numbered from one to four: &1 , &2 , &3 , &4 .
Note
The following applies when validation rules have one or more grouping characteristics: Up to four variables are available (as
is also true otherwise) for the different messages issued according to the check result. However, here the system always
substitutes the fourth variable with a concatenated string of the values of the grouping characteristics used for the current
check. For more information, see Validation with Grouping Characteristics .
De ning Message Variables
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How you de ne message variables for a validation rule depends on the validation type of the validation method:
Data Rows are Totaled
When you insert the variables you need into the formula that belongs to a validation rule, where you insert each variable
determines what that variable represents. The position of the variable determines the variable’s content: In the formula editor,
you insert each variable after the function that provides the value of the variable.
To insert a variable in a formula, you position the cursor behind the appropriate function, choose the Comment button of the
formula editor, and specify one of variable names.
Note
Make sure you insert the variable directly behind the name of the function – even if the function has parameters. In this
case, place the variable between the function name and the parameters (which are set in parentheses).
Data Header; Individual Data Rows
For these two validation types, you de ne message variables in the input elds shown on the screen by entering the name of the
eld each variable should represent. You can use input help to list all elds (characteristics and key gures) of the data stream
you have chosen for the method.
If a characteristic you have chosen contains attributes, you can also choose the desired attribute. If you do this, at runtime the
system allocates the value of the attribute to the variable, instead of the value of the characteristic.
Note
If you want a message to output both the characteristic value and the attribute value, assign the characteristic (without
selecting an attribute) to one variable and assign the same characteristic including the attribute to a second variable.
Example
You want to use a validation method to check whether a balance sheet’s total assets are equal to the total liabilities (including
stockholders' equity). You want a message to display the result of the check. If the result is negative (that is, the balance does
not equal zero), you want the message to display three amounts: total assets, total liabilities, and the balance.
First, you create the message class ZVAL in Message Maintenance and add two new messages to the message class:
001: “Assets and liabilities have a balance of zero”
002: “Assets (&1) and liabilities (&2) do not balance. Difference = &3“
In the Consolidation Workbench, you create a validation method with the type Data Rows are Totaled and you de ne a validation
rule with the following formula:
VAL_YTD ( assets ) + VAL_YTD ( liabilities ) = 0
To allocate the values that ow into the formula to the message variables, do the following:
1. In the formula editor, place the cursor behind the rst function name and choose Comment .
2. Enter &1 into the input eld.
3. In the formula editor, place the cursor behind the second function name and choose Comment .

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5. In the formula editor, place the cursor in front of the second function name and choose Comment .
Now the formula looks like this:
VAL_YTD “&1” ( assets ) + “&3” VAL_YTD “&2” ( liabilities ) = 0
Now, add a message to the validation rule for the positive result. For the Message ID enter message class ZVAL , for Message
enter 001, and for MessageType enter I (informational).
Repeat the same procedure for the negative result; however, specify message 002 . Since an unbalanced balance sheet is not
auditable, for this message you specify the message type E (error).
Validation Log
De nition
Hierarchical list you can use to analyze the results of the validation task.
Structure
Header
The header consists of the following elements:
Permanent parameters
Whether the task was run in test mode or update mode
Task settings
Method settings, if they apply equally to all organizational units
Body
The body consists of a hierarchical list that has the following structure for each validated consolidation unit or consolidation
group:
Consolidation unit or consolidation group with the number of errors and warnings, and the overall result of the validation
task
Validation rule and the hierarchy level on which the rule was executed within the validation rule hierarchy, and the
number of errors and warnings issued
Details about the check
Messages issued by the system
Other messages regarding the consolidation unit or the consolidation group
The number of errors and warnings is aggregated over the entire check hierarchy. The system also adds the number of errors
and warnings issued by the validation of additional nancial data, and displays the total at the top log level of the consolidation
unit or consolidation group.
Relationship Between Messages and Validation Result
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The check results for single formulas de ned as validation rules in validation methods do not necessarily have an immediate
effect on the overall validation result in the log. More important is whether a message was assigned to a single check result and
whether it was output because of the achieved result. The following table illustrates the relationship between the types of
messages, the number of messages issued, and the validation result disclosed in the log.
Number of Warnings Number of Errors Result
0 0 OK (green)
>0 0 OK with warnings (yellow)
Any number >0 Errors (red)
Recommendation
When executing a validation, you can have the log show only the check results in which errors occurred and, therefore, need
to be examined more closely. To do this, select Checks with Errors Only on the selection screen. Doing this can often greatly
accelerate the execution of the validation task. This depends on the volume of data being processed and the number of
messages incurred.
Details of Validation Checks
The detailed information of validation checks portrays the formulas – which describe the conditions that are checked – as a
hierarchical list, and also shows the values used in those formulas in each individual check. This list is structured as follows:
Function or operator with the result of the check
Parameter name and value
 Example
You want to check whether the sales revenue shown in segment reporting equals the revenue recorded
without the segment information. The following gure shows how the validation rule VAL_PER(Segmented
Sales) = VAL_PER(Non-segmented Sales) is portrayed in the log.
The reader of the log interprets this as follows: The two parameters (each of which is a “period value”
function) are linked by the Equal-to operator (“=”). Which value the two operand functions contain depends on
which parameter is used for calling them. Here the call parameter is a selection condition that selects the
segmented sales in one case and the non-segmented sales in the other case. Since the two function values
differ, the rule returns the value “false”.
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The portrayal as a hierarchy is useful because the parameters of the operators and functions can themselves be operators or
functions, as shown in the example. The log then visually portrays the hierarchical nesting of the rule.
Note
Technically, the portrayal of validation rule hierarchies is limited to nine levels. Therefore, in some cases, rules with very
complex formulas might not be completely displayed in the log. However, the result of the check is always displayed correctly.
Validation of Additional Financial Data

Use
You use this function to validate the additional nancial data for consolidation of investments and elimination of interunit
pro t/loss in transferred inventory. The function tests:
The equality of the changes in investments and changes in equity (reported in consolidation of investments) with the
corresponding totals records
The equality of the inventory data (reported in elimination of interunit pro t/loss) with the corresponding totals records
There are two aspects in which validation of additional nancial data differs from validation of totals data and documents:
The rules and messages for validation of additional nancial data are prede ned and xed by the system. In Customizing
you only specify whether the system is to validate additional nancial data.
Because the validation logic for additional nancial data is prede ned and xed, you do not need to de ne validation
rules and you do not therefore need validation methods. You therefore make the decision as to whether to validate
additional nancial data at the validation task level, instead of at the validation method level.
Prerequisites
You have entered the additional nancial data (for example, by means of manual data entry).
Features
In the task de nition, you can specify whether the system is to validate the following additional nancial data when the task is
executed (and if so, which data):
Inventory Data
Investments
Equity
Noncurrent Asset Transfer
For each type of additional nancial data, you can determine whether an error message or a warning message is displayed when
a discrepancy is found. You do this in the customizing settings of the validation task.
Caution
You can only carry out the further consolidation steps if the task for validating standardized nancial data runs without
errors. Otherwise, you must rst ensure the accuracy of the additional nancial data.
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Additional Financial Data for Consolidation of Investments
Which Data is Selected
Speci cally, validation of additional nancial data checks the following data:
The aggregated values for each consolidation unit -from the beginning of the speci ed scal year up to, and including,
the current period
The investment data for each combination of item, subassignment, and partner unit (if available). The system checks the
investee equity data for each combination of item and subitem. This data is aggregated across the activities and the
activity numbers of consolidation of investments.
Reported nancial data and standardizing entries with posting levels "", 00, 01, and 10 are taken into account in the
totals database.
How the Data Is Checked
The system generates a message for each discrepancy it discovers between the additional nancial data and the corresponding
data records in the totals database. Such messages disclose the differing values.
The system generates a warning message if the function nds totals records for a subassignment that belong to an item for
which the additional nancial data was posted without an account assignment.
When validating the additional nancial data for changes in equity, the system checks if corresponding totals records exist for
the reported investment data.
Note
For consolidation units that use the equity method or
mutual stock method accounting techniques, it is not necessary to enter additional nancial data. Validation of additional
nancial data for these consolidation units is not therefore bene cial.
Additional Financial Data for Elimination of Interunit Pro t/Loss in Transferred Inventory
Validation of additional nancial data for elimination of interunit pro t/loss in transferred inventory distinguishes between:
Inventory Data Without Partner Breakdowns
Inventory Data with Partner Breakdowns
Inventory Data Without Partner Breakdowns
The system adds up the inventory data recorded for all partner units and checks whether the total is equal to the corresponding
totals records. If they are not equal, the system issues a message.
Note
If the mismatch is caused by postings in which the partner unit is a company that does not itself belong to the consolidation
group, you should choose Warning as the message type for inventory data. The system regards this kind of discrepancy as
acceptable. You can suppress the message by manually recording the amount of the difference to the inventory data of
prede ned partner unit "External".
Inventory Data with Partner Breakdowns
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Here the system examines only the inventory data of those partner units for which you have recorded data for a given inventory
item. The system then checks if the total aggregated across these partner units is equal to the corresponding totals records. If
the system discovers other totals records for the item that reference other partner units, the system issues a message.
Additional Financial Data for Elimination of Interunit Pro t/Loss in Transferred Assets
When validating additional nancial data for elimination of interunit pro t/loss in transferred assets, the system performs the
following checks:
The original value of an asset for the buying consolidation unit must be equal to the revenue gained from the asset for
the selling consolidation unit.
For each asset transfer, additional nancial data must be recorded for the retired noncurrent asset and the noncurrent
asset acquired (exceptions: in-house production, sale to third party).
Supply chains may contain only asset transfers in which each selling consolidation unit has only one buying counterpart.
Partial transfers of assets with 1:N or N:1 relationships are not supported.
In principle, the following also needs to be checked:
An asset cannot be sold by the same consolidation unit more than once (exception: regular, recurring asset transfers
over multiple periods).
The capitalization date of the asset bought must be the same as the date of the asset transfer.
However, these two checks are technically incompatible with the internal data structure for validation tasks, which are based on
consolidation units. Therefore, these last two checks are not supported.
Investment Data from the Totals Database
If you select the Investments checkbox, the system validates the investment data even if this data is to be read from the totals
database. In this case, the system checks the consistency of the investment data for the following activities:
Partial transfer
Total transfer
Investment amortization
Investment writeup
Activities
A. Customizing: De ning a Task
De ne the validation task as described in section Execution of Validations.
In the Additional Financial Data group box, select the additional nancial data to be validated and, for each selection,
specify whether the system is to issue an error message or a warning if an error occurs.
B. Execute the Validation Task
1. Place the cursor on the intersection between the validation task and the consolidation unit or group.
2. Choose Update Run.
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Validation with Grouping Characteristics

Use
In certain situations, it may be useful or even necessary to not apply the rules you have de ned in a validation method per diem
to all of the data, but rather to rst split up the data according to speci c criteria and then to execute the validation for each
data subset.
 Example
One case in which this could be conceivably bene cial is when a validation con rms that the assets and liabilities of the
balance sheet of a consolidation group have a zero balance even though the detailed validations of individual consolidation
units uncover remaining amounts that, when totaled, also balance to zero. Of course, in such a case you rst would have to
balance the balance sheets of all consolidation units to also balance the assets and liabilities at the consolidation group
level.
Thus, validation of data subdivided according to certain grouping characteristics allows you to perform detailed checks with
regards to technical consistency and accounting consistency.
Prerequisites
The grouping function is supported only for validation methods with the type Data Rows are Totaled .
Features
You can use the grouping function in individual validation rules within a validation method. In the list of available characteristics,
you choose the characteristic by which you want to group the data. If attributes are assigned to the characteristic, you can use
the attribute values for the grouping, as well.
You can choose more than one grouping characteristic. If you do this, the system splits the data into as many subsets as there
are unique combinations of all values that exist for each grouping characteristic. Then the system consecutively performs the
validation rule for each data subset.
The system shows a positive overall check result only if all of the subset checks produce positive results. If one or more subset
checks produces a negative result, the system regards the overall result as negative. If no data or only zero values are found for
a given grouping characteristic value (or a combination of multiple characteristic values), this returns a positive check result.
The following applies when validation rules have one or more grouping characteristics: Up to four variables are available (as is
also true otherwise) for the different messages issued according to the check result. However, here the system always
substitutes the fourth variable with a concatenated string of the values of the grouping characteristics used for the current
check. For more information, see Use of Message Variables .
Note
As described above, using grouping characteristics in a validation rule causes the system to execute that rule once for each
unique characteristic value (or unique combination thereof). This increases the runtime of the validation accordingly. As a
rule of thumb, the validation check for each characteristic value requires as much processor time as the processing of a
complete validation rule without grouping characteristics.
Example
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You want to use validation to check whether the cumulative value of balance sheet item A is greater than the cumulative value
of item B - both in local currency respectively. In addition the check result across all of the data, you also want to see the results
differentiated by the country of each consolidation unit. The data basis contains the following totals records to be checked:
Country Item Value in Local Currency
USA A 700
USA B 900
Germany A 500
Japan B 0
Japan C 200
You have de ned the following rule:
LC_YTD (item A) > LC_YTD (item B)
You choose Group and add the characteristic “Country” to the list of grouping characteristics that has appeared. Now, the rule
is executed once for each group of data records that have the same value for characteristic “Country”, rather than across the
aggregated values of all ve data records.
Since the data records have three different countries, the system returns the following three results:
Country Value of A Operator Value of B Result
USA 700 > 900 FALSE
Germany 500 > N/A TRUE
Japan N/A > 0 TRUE
The negative partial result for the grouping “USA” causes the entire validation method to return a negative result.
In contrast, the same data would produce the following result without grouping by country:
Value of A Operator Value of B Result
1200 > 900 TRUE
This means that without the grouping, the validation method returns the opposite result.
Validation with Condition Testing

Use
You use this function to make the process ow of validation dependent on condition tests. Condition testing works differently
depending on which type of validation the method performs:
Validation of totaled data rows
Validation of individual data rows
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Another way of making a validation dependent on conditions is to assign validation methods to validation tasks so that the
methods are executed with dependency on version, time, and the consolidation unit. We recommend that our customers use
this approach.
However, in certain scenarios this approach can make Customizing very complex. In those cases, you should consider modeling a
conditional validation as described below.
Validation of Totaled Data Rows
In validations it is sometimes bene cial to make validation rules dependent on certain conditions. Possible examples for the use
of conditional validations:
You want to use different validation rules for data in the special periods 13-16 than for data in periods 1-12.
You have arranged the consolidation units to be included in the consolidated nancial statements into different
namespaces according to certain criteria. Now you want to perform different validations for each group of consolidation
units. (For example, you might distinguish such groups of units using ranges of their technical names – such as range A*
through F* .)
These kinds of conditional validations can be based on the consolidation units included, the period, the posting level, or other
characteristics. Also, these kinds of conditional validations can be achieved through user intervention in which you manually
check whether the conditions are met and then manually execute the appropriate validation task. This function enables you to
automate the testing for conditions in validation runs. This shifts the decision-making for different conditions away from error-
prone live executions over to the Customizing activities.
 Example
Assume you want to execute different validation tests speci cally for the four end-of-quarter periods. To do this, you create
the validation rule “Validation at End of Quarter”. You enter the formula CONDITION ( Period 3,6,9,12 ) , where “ Period
3,6,9,12 ” is the name of a selection condition you have previously de ned for the posting period, and where this selection
condition selects the periods 3, 6, 9, and 12 as single values. You then place the validation rules executed at the end of each
quarter under the “True” branch of the validation rule “Validation at End of Quarter”.
Validation of Individual Data Rows
Validation of individual data rows tests whether the row currently under scrutiny matches your selection conditions. (This can
include header data and data rows.)
Integration
To test conditions, you insert the CONDITION function into the formula of a validation rule.
Features
To de ne a validation rule to test a condition, you insert the CONDITION function into the formula of the validation rule and
pass the condition as a parameter to the function.
The CONDITION function tests whether the condition contained in the parameters is true and returns either a true or false
value. If the formula contains no other expressions besides the one function, then the return value of the function is the same as
the result of the validation rule. If you use multiple expressions, the result of the validation rule re ects the logical combination
of the function result with the other expressions that return true or false values. An example of this might be: CONDITION
(Period 16) AND (GC_YTD (Revenue) > 0) .
Syntax
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CONDITION ( <selection condition> )
For each parameter you enter the name of a selection condition you have already de ned – for example, 0COMPANY=C1000 .
Validation of Totaled Data Rows
You can use parameters that are valid at the time of task execution ( execution parameters). This involves the characteristics
contained in the current consolidation area that have the following roles:
Version
Group currency
Posting level
Period
Fiscal year
Further parameters you can use are the following characteristics. The values of these characteristics result from the
selection made in the Consolidation Monitor when the validation task is executed:
Consolidation unit (for validation of reported nancial data and standardized nancial data)
Consolidation area (for validation of consolidated data)
Note
The above list of usable roles is complete. Characteristics with roles not listed above cannot be used for validation
testing when validating totaled data rows.
Validation of Individual Data Rows
In validations of individual data rows, you can de ne selection conditions for all characteristics contained in the data stream to
which the validation method is assigned. Each individual data row is tested whether its data matches the selection condition.
You can use the equivalency ( <==> ) and implication ( ==> ) operators of the formula editor to model complex logical
expressions for data rows. This lets you simultaneously test multiple conditions that have dependency relationships to each
other within a single validation rule.
Example of an Implication (If/Then Relationship):
CONDITION ( posting level 20 ) ==> CONDITION ( partner unit exists )
This rst tests whether the data belongs to posting level 20. If it does, the rule also tests whether the partner unit eld contains
a value other than the initialized value. If this also is true, the validation rule returns the value “True”.
Postings
Purpose
The main bene t of SEM Business Consolidation lies in the postings that are automatically generated by the system. Automatic
postings let you achieve a high degree of automation, enabling the efficient creation of consolidated nancial statements.
In isolated cases, you may want to enhance the automatic postings with manual postings. It is also often necessary to manually
post adjustment entries to the nancial data reported by the consolidation units to meet corporate requirements.
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For this reason, the consolidation system offers both automatic and manual posting functions for carrying out your
consolidation tasks.
Features
The following tasks generate postings in the system (and thus update the totals records in the corresponding InfoProvider):
Adjustments of reported nancial data
Standardizing entry
Capitalization and valuation allowances
Interunit elimination
Elimination of interunit pro t/loss in transferred inventory
Elimination of interunit pro t/loss in transferred assets
Consolidation of investments
Reclassi cation
Allocation
Custom task
You can display the totals records with the List of Totals Records.
These tasks also generate documents (also called journal entries), which are written to the InfoProvider for documents. The
journal entries document all changes to the values in the database. This lets you reconstruct at any time all of the changes that
were made to the original reported nancial data of the consolidation units in order to arrive at the consolidated data.
You can also display a list of the documents.
The following tasks do not post journal entries, but rather update the values in the InfoProvider for the totals data.
Collection of reported nancial data
Currency translation
Balance carryforward
You can use the list of journal entires to verify the value changes.
The following illustration shows the correlation between:
the customizing settings required for the postings
the journal entry itself
the totals records and journal entries generated by the posting
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The following table explains the relationships shown in the illustration, with the distinction between automatic postings and
manual postings.
Automatic Posting Manual Posting
Customizing of the Task e.g., for interunit elimination e.g., for manual adjustment entries
Assignment of a consolidation frequency, a

document type, and a method (if
applicable)
Customizing of the Document Type Automatic posting Manual posting
Settings for posting level, balance check,

business application, key gures
(currency), deferred taxes, number range,
treatment of subassignments, and so on
Assignment of a number range for

document numbers
Customizing of the Method The method settings control exactly how the None
system generates postings.
For example: In a method for interunit

elimination you de ne which groups of
items are cleared with each other.
Customizing of Selected Items The system generates automatic line items for nancial statement balancing adjustments
and deferred taxes in both automatic and manual postings.
You de ne selected items to be used for these automatic line items.
Posting You execute the task in the consolidation monitor or in the workbench.
The system creates and posts the entries In the task for manual posting you enter the
automatically. document header data and the line items,
and you execute the posting.
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Automatic Posting Manual Posting
Data At the same time, the system writes new data records
in an InforProvider for documents
in an InforProvider for totals records
You can display a list of the documents and totals records in the consolidation
monitor or in the workbench.
You can also use BI reports to analyze both InfoProviders.
Reversal/Inversion You can automatically invert/reverse You can:

documents in as follows:
Reverse or invert individual
Documents are (regularly) inverted documents
during period initialization (if the sapurl_link_0004_0002_0004
relevant settings are made). If you
perform a Mass Reversal
have not de ned any tasks for
period initialization, documents Use the period initialization
from the previous period are
automatically inverted when the
automatic tasks are performed.
Documents can be reversed or

inverted during mass reversal.
If required, documents are reversed

when automatically booked tasks
are repeated (depending on the
settings in the version combination).
Recommendation
You should use automatic postings to perform the tasks whenever possible to take advantage of the built-in features
available for the consolidation process.
See also
Consistency Check of Transaction Data
Posting Levels for Classifying Journal Entries

De nition
Posting levels classify journal entries in the consolidation system.
Posting levels distinguish between the following types of entries (among others):
Adjustments to reported nancial data
Standardizing entries
Entries for interunit elimination and the elimination of interunit pro t/loss in transferred inventory
Consolidation group-dependent entries
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Consolidation-group-speci c entries
There is also a separate posting level for reported nancial data.
Use
You typically assign a document type to journal entries. The document type determines the posting level of the entry. When
reported nancial data is collected, the system uses a separate posting level; however, it does not post any documents.
When entries are posted, the system writes the posting level to the totals record and to the journal entry.
The classi cation of journal entries with posting levels serves as an aid to the user for selecting data by posting level, and is also
utilized by the system:
By specifying posting levels when selecting data, you can evaluate individual steps of the consolidation process in your
consolidation reports.
 Example
You can analyze the standardized nancial data of a consolidation unit by selecting that unit’s data with posting levels
00, 01, and 10.
The system uses the posting level:
For internal consistency checks of the data
For the selection of data to be processed
 Example
For interunit elimination, the system selects all data (of the consolidation units to be eliminated) with posting
levels less than or equal to 20.
Structure
The available posting levels are prede ned in the system. The following posting levels exist:
Posting Level Use
00 Reported nancial data
No postings with documents exist for reported nancial data.
01 Adjustments to reported nancial data
If, after collecting the reported data of the consolidation units, you want to centrally make
changes to the data, we recommend doing this by posting adjustment entries with posting
level 01. This has the bene t that your changes are documented.
02 Reported data: consolidation group changes
(See explanations below.)
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Posting Level Use
10 Standardizing entries
You may need to standardize the reported data of consolidation units to comply with corporate
policies or valuation rules.
 Note
In data records with posting levels less than or equal to 10, the system posts only to the
consolidation unit – not to the consolidation group. Reporting takes into account the data
records for all consolidation groups.
12 Standardizing entries: consolidation group changes
20 Two-sided elimination entries
Interunit elimination, the elimination of interunit pro t/loss in inventory, and reclassi cation are
examples of two-sided elimination entries.
Here, both the consolidation unit and the partner unit are recorded in the data records.
Reporting takes into account the data records for all consolidation groups in which both the
consolidation unit and the partner unit are posted.
22 Two-sided elimination entries: consolidation group changes
30 Consolidation group-dependent entries
The consolidation unit, partner unit, and consolidation group are recorded in the data records
for consolidation of investments entries, and in the entries for elimination of interunit
pro t/loss in transferred inventory that have this posting level. Reporting only takes into
account the data records with the assigned consolidation group and the higher-level
consolidation groups.
32 Consolidation group-dependent entries: consolidation group changes
35 Consolidation-group-speci c entries
You can use posting level 35 to make group-speci c manual postings that relate to
management consolidation only and are not included in external consolidation.
For more information, see Consolidation-Group-Speci c Postings.
Explanations for Posting Levels Used for Consolidation Group Changes (02, 12, and 22)
Preparatory Entries for Consolidation Group Changes
When a consolidation group purchases or sells consolidation units, or when the accounting technique changes, you post
preparatory entries for consolidation group changes to ensure the correct disclosure of the reported data (02), the
standardized data (12), or the consolidated data (22). This is a preparatory measure before the rst consolidation or divestiture
is posted in consolidation of investments.
These preparatory entries adjust the data of the following posting levels:
Adjusted Posting Level Posting Level of Preparatory Entries
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Adjusted Posting Level Posting Level of Preparatory Entries
00, 01 02
10 12
20 22
30 32
Both the consolidation unit as well as the consolidation group are recorded in the data records – in posting level 22, the partner
unit is also recorded. Reporting only takes into account data records in the assigned consolidation group and in all consolidation
groups that have ownership in the assigned consolidation group. For posting level 35, there is no posting level for preparatory
entries.
Reclassi cations for Proportional Consolidation
You use the reclassi cation function to model the proportional consolidation in the system.
If you choose the business application Proportional Consolidation in the document type, the reclassi cation tasks include the
data to be apportioned as follows:
Selected Posting Levels Posting Level Used for Reclassi cation Task
≤02 02
≤12 12
≤22 22
Note
Proportional consolidation is not supported for posting level 32.
Reporting only takes into account data records in the assigned consolidation group and in all consolidation groups that have
ownership in the assigned consolidation group.
Example: Selecting Data Records

The following illustration shows three consolidation groups: CG1 comprises all consolidation units (A – E) along with the lower-
level groups CG2 and CG3. All consolidation units are included in their entirety.
The system posts the following documents with different posting levels:
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DocumentNumber PostingLevel ConsUnit PartnerUnit ConsGroup Text
1 10 C - - Standardizing entry
2 20 A B - Elimination of IU
payables and
receivables
3 20 A D - Elimination of IU
payables and
receivables
4 30 E D CG3 Consolidation of
Investments
5 30 E D CG1 Consolidation of
Investments
The following table shows for which consolidation groups the documents are valid in consolidation reporting:
Document CG1 CG2 CG3
1 X X X
2 X X -
3 X - -
4 X - X
5 X - -
Key Figures to be Posted

De nition
Key gures the system posts during automatic and manual posting.
You specify in the document type which key gures the system should post:
Transaction currency
Local currency
Group currency
Quantity
Structure
Transaction Currency
You can post ( nancial statement) items with a breakdown by transaction currency if:
The document type allows for posting in transaction currency
The breakdown category of the item is de ned with a breakdown by transaction currency
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You can post several transaction currencies in one document. The system does not check whether the balance per transaction
currency is equal to zero.
Quantities
You can post quantities to nancial statement items if:
The document type allows for posting in quantities
The breakdown category of the item is de ned with a breakdown by quantity
A xed value is assigned to the unit of measure in the breakdown category, which means that the breakdown category of the
item determines the unit of measure.
It is possible to post to items, to which several breakdown categories with different units of measure have been assigned. In this
case, you would post quantities in multiple units of measure within a single document. The system does not check whether the
balance is equal to zero – neither for each unit of measure, nor for the entire document.
Fin. Stmt Imbalances, Deferred Taxes, and

Balancing Adjustments
Use
It may become necessary to manually and automatically post nancial statement balancing adjustments, deferred income
taxes, or clearing entries for nancial statement imbalances. If you make consolidation group changes on posting level 32, the
system also has to calculate the balance for each consolidation group. The system checks every manual and automatic posting
document to determine whether a balancing adjustment, a deferred tax entry, or a clearing entry is necessary and, if so,
generates additional line items.
In manual entries, these generated line items are referred to as automatic line items because the system automatically adds
them to your manually-entered line items.
Prerequisites
The following table shows in which situations and under which circumstances the system generates these additional line items:
Purpose of the Line Items If these conditions are given…
Financial statement balancing adjustment An entry posted to both balance sheet and income statement items
would cause an imbalance in those nancial statements
Posting of deferred taxes The document type is con gured in this way.
The entry has an effect earnings or you have made the Customizing
settings for account assignments for deferred taxes in the balance
sheet (see Specifying Account Assignments for Deferred Taxes in
the Balance Sheet).
Balance adjustment per consolidation unit when posting interunit Special clearing items are de ned in the document type.
entries
Balance adjustment for speci c consolidation groups for The document type posts to posting level 32.
consolidation group changes for group-dependent entries
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Features
Financial statement imbalances, deferred income taxes, or balance adjustments are documented in more detail in the sections
that follow. This section explains the functions that apply to all three types of additional line items.
Selected Items
To enable the system to generate individual line items for nancial statement imbalances, deferred taxes, and balance
adjustments, you must de ne the following settings in the workbench:
Under Master Data Items Selected Items , you specify the items the system should post for nancial statement
imbalances and deferred income taxes.
Note
You can de ne these selected items per document type. This overrides the global settings you made in the master
data.
When you de ne the document types (such as document types for manual posting), you de ne the following settings:
The Deferred Taxes – Debit or Deferred Taxes – Credit indicators, as well as the tax rate in the master record for
the consolidation units or in the document type
If applicable, the selected items for deferred income taxes and nancial statement imbalances (however, see
note earlier)
The selected clearing item for adjusting the balance for consolidation units
The selected clearing item for adjusting the balance for speci c consolidation groups for consolidation group
changes for group-dependent entries (relevant for posting level 32 only)
Subassignments for These Selected Items
You de ne the selected items for nancial statement imbalances, deferred taxes, and clearing imbalances for consolidation
units in the workbench under Selected Items or in the de nition of the document types. Depending on which breakdown
category is used, these items may require a breakdown by subassignments.
Customizing offers you several ways of controlling how the system determines the subassignments for the selected items.
Selected Items for Financial Statement Balancing Adjustments
For each selected item that has one or more subassignments, you can select the Default indicator for each subassignment,
and/or specify a value for the subassignment. The following, multi-level logic applies:
If you do not select the Default indicator, you must enter the value for the subassignment. Then the system always posts
this value as the subassignment for the selected item.
Exception: If the breakdown is optional, you do not have to enter the value. Then the system leaves the value of the
subassignment initialized.
If you select the Default indicator, you are not required to enter a value for the subassignment.
The system applies a series of steps to determine the subassignment. This gure illustrates these steps from a) to d):
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Legend:
a) First, the system attempts to determine the subassignment based on the document.
b) If step a) is unsuccessful, the system checks whether you speci ed the subassignment for the selected item.
c) If step b) does not apply, the system uses the subassignment you de ned in the Customizing settings for default values.
d) If step c) is unsuccessful and the breakdown category shows that the subassignment is a required breakdown, the system
outputs an error message.
Note
Step a) – using the document to determine the subassignment – is possible under the following circumstances:
The subassignment is unique within the document, which means that the same value is posted for this
subassignment in all line items.
For each subassignment, the document is divided into subdocuments and the balance for all balance sheet and
income statement items equals zero (see also the gure for the clearing item example).
Selected Items for Deferred Income Tax
The system logic for determining the subassignment for selected items for deferred income tax is the same as for selected
items for nancial statement imbalances. When posting the system rst checks whether the selected items are de ned for the
document type, and determines the subassignments in the way described earlier.
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If the selected items are not de ned per document type, then the system uses the (global) Customizing settings (at Master
Data Items Selected Items ).
Selected Item for Clearing (Clearing Imbalances per Consolidation Unit)
Selected items for clearing are always de ned for each document type. The system logic for determining subassignments is the
same as for selected items for nancial statement imbalances and deferred income tax.
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Note
Using an example from the gure, in step a) the system can determine the following partner assignments based on the
document:
Partner B in line item 3
Partner A in line item 4
The subassignment divides the document into two subsets, each of which has a balance of zero across all nancial
statement items.
Selected Item for Clearing (Clearing Imbalances per Consolidation Group)
Selected items for clearing are always de ned for each document type. These document types must post to posting level 32. We
recommend that you do not use a breakdown for these clearing items.
For more information, see Consolidation Group Changes for Group-Dependent Entries.
Manual Posting: Auxiliary Functions for Automatic Line Items
Simulation
When you post and save a posting document manually, the system generates the automatic line items and writes the entire
document to the database. You can simulate the posting prior to actually saving the document. The simulation shows you the
automatic line items. This lets you preview whether and how the system will post nancial statement imbalances, deferred
taxes, or balance adjustments.
Identi cation
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The system ags automatic line items in the document with a special number to let you differentiate them from your manually-
entered line items:
Auto Field Meaning
1 Automatic line item for nancial statement imbalances
2 Automatic line item for deferred income tax
3 Automatic line item for clearings across different consolidation

units
4 Rounding in currency changes (see Rounding)
5 Automatic line item for preparations for consolidation group

changes for group-dependent entries (posting level 32)
Manual Entry of, or Adjustment to, Automatic Line Items
You can suppress the automatic line items and manually enter your own line items. If you do this, the following rules apply:
When entering the line items manually, you must enter all "automatic" line items.
You need to enter the correct amounts.
The net balances of the balance sheet items and the income statement items of the entire document must equal zero.
You need to post the tax portion of the imbalance of the complete document to the selected items for deferred income
tax.
Alternatively, you rst can have the system simulate the automatic line items, and then modify these line items. For example,
you could modify the subassignments or distribute the simulated amounts across different line items.
Clearing of Imbalances Caused by Interunit

Entries
Use
Under certain circumstances, it may be necessary to clear imbalances caused by interunit entries – that is, entries between
different consolidation units – not only for the entire document but also for each consolidation unit.
Consequently, after the consolidation, you are also able to create consolidated individual statements for each consolidation
unit.
Features
A clearing item is needed for clearing the entries of the consolidation units. In Customizing, you de ne the clearing item for
document types with posting levels greater or equal to 20. Each consolidation chart of accounts requires its own clearing item.
De ning a clearing item ensures that the system always posts a balancing entry.
During posting, the system calculates the balance for each consolidation unit, posts it to the clearing item.
Example
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You want to post interunit eliminations between two consolidation units. In the document type you are using, you previously
de ned a clearing item for interunit entries. This results in the following posting document:
Posting document
Line item Cons unit Financial statement item Amount (USD)
01 Cons unit 1 Receivables from affiliates 1,000.00 -
02 Cons unit 2 Payables to affiliates 1,000.00
03 Cons unit 1 Clearing item 1,000.00
04 Cons unit 2 Clearing item 1,000.00 -
Remarks
Lines 03 and 04 are automatic line items inserted by the system.
The entire entry balances to zero:
All line items add up to zero.
Each consolidation unit has a zero balance.
The balance of the clearing item remains zero.
Financial Statement Balancing Adjustments

Use
Standardizing and consolidation entries can cause an imbalance in the balance sheet and the income statement. For example,
an adjustment to depreciation of machinery involves posting in both the income statement and the balance sheet. This causes
an imbalance in both the balance sheet and the income statement. The system calculates this imbalance and automatically
posts balancing adjustments.
The system posts the balancing adjustment automatically . This ensures that the balance sheet and income statement are
posted consistently. Once the adjustment is posted, the two statements balance again.
It may become necessary to post balancing adjustments for both manual and automatic postings. The system checks every
manual and automatic posting as to whether a balancing adjustment is necessary and, if so, generates additional line items in
the document.
In manual entries, these additional line items are called automatic line items .
Prerequisites
Imbalance in Balance Sheet and Income Statement
When an entry involving both balance sheet and income statement accounts leads to an imbalance in the nancial statements,
the system generates additional line items to post balancing adjustments .
Selected Items
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To enable the system to automatically generate line items for balancing adjustments, the following customizing settings must
be made beforehand: In the selected items you specify which accounting objects are posted with the balancing adjustments .
The selected items for balancing adjustments can require a breakdown by subassignments , depending on which breakdown
category is being used.
Customizing offers several ways of controlling how the system determines the subassignments for the selected items:
For each selected item with one or more subassignments, you can select the Default indicator for each subassignment, and/or
you can specify a value for the subassignment.
Features
During each posting, the system checks if the income statement items are being posted with a non-zero balance. If so, the
system computes and posts a balancing adjustment .
The balancing adjustment is also dependent on where the appropriation of retained earnings is stated .
If the appropriations are stated at the end of the income statement, the system posts the balancing adjustment to
retained earnings items in the balance sheet as well as in the income statement.
If the appropriations are stated in the balance sheet, the adjustment is posted to annual net income items in the
balance sheet as well as the income statement.
Which items are posted is de ned in customizing of the selected items for retained earnings and annual net income . However,
you can de ne exceptions for these items in customizing of document types.
The posting remains in balance because the balancing adjustment takes both nancial statements into account .
Manual Posting: Auxiliary Functions for Automatic Line Items
Simulation
When you enter a manual posting and save, the system generates the automatic line items and writes all line items to the
database. You can simulate the posting prior to actually executing the entry. The simulation shows you the automatic line items.
This enables you preview if and how the system will post balancing adjustments.
Manual entry of, or adjustment to, automatic line items
You can suppress the automatic line items and manually enter your own line items. If you do this, the following rules apply:
When entering the line items manually, you must enter all “automatic” line items.
You must enter the correct values , so that the balance of the balance sheet items and the balance of the income
statement items in the entire journal entry both equal zero.
You can also let the system simulate the automatic line items, and then modify these line items. For example, you might modify
the subassignments, or distribute the simulated values to several line items.
Example
Say, you want to post a standardizing entry to a balance sheet item. After the standardizing entry is posted, the balance sheet
and the income statement are no longer in balance.
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The following illustration shows you how the accounts are affected by the original entry and by the automatic balancing
adjustment. Whether the entry is posted automatically depends on where retained earnings are stated.
Deferred Taxes
Use
Due to the consolidation entries, the consolidated earnings for the year usually differ from the sum of the earnings reported by
the individual consolidation units. Posting deferred taxes to consolidated nancial statements adjusts the tax expense from the
individual nancial statements to meet the consolidated net income.
Furthermore, you can choose to also post deferred taxes to the balance sheet if the underlying consolidation entry does not
cause a nancial statement imbalance.
 Example
As a result of an impairment test, a revaluation of securities is necessary, and therefore also a transfer to the revaluation
reserves. You also want to post the relevant deferred taxes.
The system automatically calculates and posts deferred taxes.
Prerequisites
Specifying Posting of Deferred Taxes
In Customizing, you have speci ed that deferred taxes are to be posted for the document type.
If you want to use Customizing to post deferred taxes to speci c balance sheet items, you have set the Deferred Tax Debit and
Deferred Tax Credit indicators in the document type.
Tax Rate
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In the document type, you have either speci ed that the tax rate is to be read from the master data of the consolidation unit, or
you have entered the tax rate directly in the document type.
Items for Deferred Taxes
You have speci ed the selected items for deferred taxes. You can specify these selected items using the following options:
globally for all postings of deferred taxes: You enter the item for deferred taxes in the process view in the workbench by
choosing Master Data Items Selected Items , tab pages Deferred Taxes - Balance Sheet and Deferred Taxes - Income
Statement
for each document type
individually according to the triggering balance sheet item and, if required, subassignment
(see also the section below)
For more information, see Specifying Account Assignments for Deferred Taxes in the Balance Sheet.
Features
Posting of Deferred Taxes Due to Financial Statement Imbalance
Deferred taxes can arise from standardizing entries posted to the reported nancial data of consolidation units, or they can
arise from consolidation entries: The system automatically posts deferred taxes if you have activated the function in
Customizing, and a nancial statement imbalance occurs during an entry. The nancial statement imbalance is multiplied by the
tax rate. The system posts the resulting deferred tax to the consolidation unit to which the nancial statement imbalance is
posted.
Posting of Deferred Taxes Without Underlying Financial Statement Imbalance
Posting of deferred taxes in the balance sheet need not be triggered by a balance sheet imbalance; the existence of balance
sheet triggering items in the original document can also trigger the postings.
You determine these balance sheet triggering items in Customizing for Balance Sheet Items for Deferred Taxes.
When a balance sheet triggering item exists in the original document, the system posts the deferred taxes for the affected
consolidation unit to all balance sheet items in the original document and de ned in Customizing, even if these balance sheet
items are not de ned as triggers.
 Example
Balance sheet triggering item: revaluation reserves
Tax rate: 40%
Posting to original document: securities 100; revaluation reserves 100-
Resulting tax posting: Deferred taxes securities 40-; deferred taxes revaluation reserves 40
If more than one consolidation unit is posted in the same document, the system response changes; for more information see
below and Examples: Interunit Entries.
Global or Speci c Account Assignments for Deferred Taxes in the Balance Sheet
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You can specify a global item for all postings of deferred taxes to the balance sheet. You must de ne this item in the selected
items or in the document type.
Alternately, you can specify account assignments (items and applicable subassignments) for posting deferred taxes to the
balance sheet that are speci cally for the balance sheet items and subassignments in the original document. In Customizing
for Balance Sheet Items for Deferred Taxes, you must assign speci c account assignments for deferred taxes to the balance
sheet items. You can differentiate these speci c account assignments for deferred taxes according to debit and credit account
assignments.
 Example
The following can be shown with speci c account assignments for deferred taxes:
Due to an increase in postretirements, the active deferred taxes for postretirements also increase.
Due to a decrease in postretirements, the active deferred taxes for postretirements also decrease (and the passive
deferred taxes do not increase).
For more examples, see Examples: Speci c Account Assignments for Deferred Taxes in the Balance Sheet.
If you do not specify a speci c account assignment for deferred taxes in the balance sheet, the system posts the deferred taxes
to the global item (or subitem) that you speci ed in the document type or in the selected items.
The system determines the account assignments to be posted for deferred taxes as follows: It rst searches in the speci c
account assignments to determine whether you have speci ed an account assignment, then it searches in the document type,
and then in the selected items.
The assignment of the speci c tax account assignments to the balance sheet account assignments is static. Activation of this
Customizing in the selected items is time and version dependent.
If Customizing is activated, the system always uses the postings for balance sheet items from the original document as the
calculation base for deferred taxes; otherwise the postings in the income statement are used as the calculation base.
For the Customizing settings for global and speci c tax account assignments, see Specifying Account Assignments for Deferred
Taxes in the Balance Sheet.
Documents That Are Not Cleared Per Consolidation Unit
If you have activated Customizing for Balance Sheet Items for Deferred Taxes (see above), the system handles separately
those documents that are not cleared per consolidation unit. As a general rule, the amounts that are to be posted to speci c
account assignments for deferred taxes in the balance sheet for a consolidation unit A must then be derived from original
posting items that were posted to another consolidation unit B. (Subdocuments that arise per consolidation unit, however, are
not included here – the system analyzes these separately.)
To determine the correct amount, the system uses the following procedure:
Case 1: The original document contains postings that affect earnings: The system uses the amounts that are posted to
the income statement as weighted factors to determine the amounts to post in the balance sheet. The latter form the
basis for determining the deferred taxes. (The amounts for the clearing items for interunit entries are not taken into
account in this procedure.)
Case 2: The original document contains only postings to balance sheet items: In this case, the procedure for balance
sheet triggering items is used again.
For more information, see Clearing of Imbalances Caused by Interunit Entries.
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Note
Since the system assumes that the contents of all balance sheet line items belong to all income statement line items, the
following restrictions apply to determining deferred taxes:
Double triggers (income statement triggering items and balance sheet triggering items) are not possible.
The system issues a warning message stating that the taxes in the balance sheet could not be uniquely determined.
If there are income statement postings that span multiple consolidation units and also encompass multiple balance
sheet line items in the original document, unexpected results frequently occur.
The system issues a warning message.
The system cannot calculate a result if the total of all original income statement line items is, or is practically, zero.
The system issues an error message.
Recommendation
To allow the system to correctly determine the deferred taxes, we recommend that you only post one business transaction
per manual posting.
Line-Item-Speci c Credit/Debit Decision
If you have activated Customizing for Balance Sheet Items for Deferred Taxes (see above), the system determines whether to
post the deferred taxes to the debit item (speci ed in Customizing) or to the credit item for each individual line item, using the
posting items in the original document. The postings to the balance sheet line items from the original document are used as the
calculation base for the deferred taxes. The postings to income statement line items are used as the calculation base for other
automatic line items.
For more information, see Credit/Debit Decision.
Deferred Taxes for Manual Postings
For manual postings, you can choose to suppress the posting of deferred taxes and to invert the credit/debit decision of the
system.
You can use these two functions independently of the Customizing for Balance Sheet Items for Deferred Taxes mentioned
above.
To use the functions, the following prerequisites must be met:
You have included the Not Tax Relevant and/or Invert Debit/Credit Decision elds in the data stream for documents.
Posting of deferred taxes is supported for the document type.
Suppressing Posting of Deferred Taxes
For manual postings, you can suppress the posting of deferred taxes, even if you have set the indicator for posting deferred
taxes in the document type. You can set the indicator for suppressing the tax posting per manual posting.
This decision is saved in the InfoProvider for documents, so that it can be later traced for checking purposes.
Inverting the Credit/Debit Decision
You can invert the credit/debit decision of the system for the automatic documents lines for the following postings:
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If you have activated the business function Financials, Group Closing: for manual postings
If you have activated the business function Financials, Group Close, Restatement Monitor: for automatic postings with
document types that have the following properties:
Automatic posting
Application Other
Posting with deferred taxes
This inversion then applies to each automatically generated posting item (to clearing items in which balance sheet line items
are posted, to clearing items in which income statement line items are posted, as well as for lines items for deferred taxes in
the balance sheet and income statement).
This decision is also saved in the InfoProvider for documents, so that it can be later traced for checking purposes.
Example
For examples of posting deferred taxes, see:
Examples: Tax Postings With/Without Financial Statement Imbalance
Examples: Speci c Account Assignments for Deferred Taxes in the Balance Sheet
Examples: Interunit Entries for Speci c Account Assignments for Deferred Taxes
Example: Tax Postings With/Without

Financial Statement Imbalance
Example 1: With Financial Statement Imbalance
Initial Data
You want to post a standardizing entry to a balance sheet item. You use a document type that provides for posting of deferred
income tax. After the standardizing entry is posted, the balance sheet and the income statement are no longer in balance.
Prior to posting the deferred income taxes, the nancial statement imbalance amounts to 1000 currency units.
The tax rate is 60%.
Item Value Remark
Balance sheet item 1000 ⇒ Balance in Balance Sheet
Income statement item 1000- ⇒ Balance in income statement
Automatic Postings for Financial Statement Imbalance and Deferred Income Taxes
The following table shows the automatic posting of the nancial statement imbalance (assuming appropriation of retained
earnings in the balance sheet) and the automatic posting of deferred income taxes.
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The system multiplies the nancial statement imbalance by a tax rate of 60% and posts the resulting deferred income taxes of
600 currency units. The nancial statement imbalance remaining to be posted is 400 currency units.
Item Value Automatic Posting Item
Annual Net Income – Income Statement 400 1
Annual Net Income – Balance Sheet 400- 1
Tax Expense 600 2
Provision for Accrued Taxes 600‑ 2
Example 2: Without Financial Statement Imbalance
Initial Data
The following initial data forms the basis for the postings:
Tax rate: 25%
The balance sheet item BS_1 is assigned the item for deferred taxes DT_BS_1. The balance sheet item BS_1 is also
identi ed as a trigger.
The balance sheet item BS_2 is not assigned any speci c item for deferred taxes.
The global item for deferred taxes DT_BS_DEF is speci ed in the document type.
The consolidation entry in the original document is:
BS_250,00anBS_150,00
Postings
Although a nancial statement imbalance does not arise through the posting, a trigger balance sheet item is posted in the
original document, and therefore the posting of deferred income taxes is triggered.
The system automatically posts the deferred taxes (per balance sheet item 0.25 * 50 = 12.50), where the deferred taxes
allocated to balance sheet item BS_2 are posted to the global item DT_BS_DEF.
Item Value Automatic Posting Item
BS_1 50,00-
BS_2 50,00
DT_BS_1 (Credit) 12,50- 2
DT_BS_DEF (Debit) 12,50 2
Examples: Speci c Account Assignments for

Deferred Taxes
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Example 1: Active and passive deferred taxes, subdivided according to triggering

balance sheet item
Active Deferred Taxes 2003 2004
Intangible Assets xxxx xxxx
Property, Plant & Equipment xxxx xxxx
Financial Assets xxxx xxxx
Receivables and Other Assets xxxx xxxx
Passive Deferred Taxes
Intangible Assets xxxx xxxx
Property, Plant & Equipment xxxx xxxx
Example 2: Active and passive deferred taxes, subdivided according to due date
Active Deferred Taxes 2003 2004
Short-Term xxxx xxxx
Long-Term xxxx xxxx
Passive Deferred Taxes
Short-Term xxxx xxxx
Long-Term xxxx xxxx
Example 3: Posting example
Initial Data
The following data is used for the example:
Tax rate: 25%
The balance sheet item BS_1 is assigned the item for deferred taxes DT_BS_1.
The balance sheet item BS_2 is not assigned any speci c item for deferred taxes.
The global item for deferred taxes DT_BS_DEF is speci ed in the document type.
The consolidation entry in the original document is:
BS_150.00
BS_250.00toIS100.00
Postings
The original document triggers the posting of deferred taxes.
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The system automatically posts the deferred taxes (per balance sheet item 0.25 * 50 = 12.50), where the deferred taxes
allocated to balance sheet item BS_2 are posted to the global item DT_BS_DEF. The system also posts the remaining amount
(100.00 – 2 * 12.5 = 75.00) to the clearing items in the income statement or in the balance sheet.
Item Value Automatic Line Item
BS_1 50.00
BS_2 50.00
Income Statement 100.00-
Clearing Item for the Income Statement 75.00 1
Clearing Item for the Balance Sheet 75.00- 1
DT_IS 25.00 2
DT_BS_1 (Credit) 12.50- 2
DT_BS_DEF (Credit) 12.50- 2
Specifying Account Assignments for

Deferred Taxes in the Balance Sheet
Use
You use this procedure to make the following Customizing settings:
De ning speci c account assignments for posting of deferred taxes in the balance sheet
De ning triggering balance sheet items for posting of deferred taxes in the balance sheet without effect on net income
If you have activated the Adjustment of Deferred Taxes function in the consolidation area, you can suppress this function
for speci c balance sheet items.
There is another option you can choose instead of or in addition to assigning speci c tax items. This option is to de ne a global
selected item, to which all deferred taxes are posted, regardless of which balance sheet item triggered the posting of deferred
taxes. You de ne this item either in the selected items or in the document type.
Prerequisites
See the section Deferred Taxes.
Procedure
Speci c Account Assignments and Triggering Balance Sheet Items
Specify Speci c Account Assignments and Triggering Balance Sheet Items
To de ne the balance sheet account assignments and the tax account assignments belonging to them, proceed as follows:
1. In the process view of the consolidation workbench, choose Master Data Items Balance Sheet Items for Deferred
Taxes .
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2. Enter a selection for the balance sheet item. You can specify it in more detail later on (item, subassignment, and so on).
3. Indicate whether the selection should trigger the posting of deferred tax in the balance sheet even if there is no nancial
statement imbalance for the consolidation unit. Select the Trigger indicator, if applicable.
4. If you have activated the Adjustment of Deferred Taxes function in the consolidation area, you can suppress this function
for speci c balance sheet items by selecting the corresponding checkbox.
5. To navigate to the detail screen for balance sheet account assignments and their tax account assignments, choose the
navigation arrow next to the selection.
6. In the Selection for Balance Sheet Item group box, enter details for the balance sheet item, such as subassignment and
attributes.
7. In the Deferred Tax Item group box, enter the item for deferred taxes along with any subassignments, making sure to
have separate entries for debits and credits.
Select the Default indicator, if applicable.
8. Save your entries.
Activate Customizing for "Balance Sheet Items for Deferred Taxes"
The de nition of speci c items for deferred taxes in the balance sheet (in other words, Customizing for Balance Sheet Items for
Deferred Taxes) is neither time-dependent nor version-dependent - instead it is static. However, you can nonetheless use a
certain set of values and settings from Customizing for Balance Sheet Items for Deferred Taxes on a time-dependent and
version-dependent basis.
To be able to use the Customizing for Balance Sheet Items for Deferred Taxes (that is, to activate it), enter its technical name
in the process view of the consolidation workbench by choosing Master Data Items Selected Items , tab page Deferred Taxes -
Balance Sheet and save your entries.
The consequences of using this Customizing are listed below:
Using the original document, the system checks for each item whether a debit or credit item for deferred taxes is to be
posted.
For more information, see Credit/Debit Decision.
The system uses the postings for balance sheet items from the original document as the calculation base for deferred
taxes.
Specify Global Balance Sheet Item for Deferred Taxes
The global balance sheet item for deferred taxes is the item to which the system should post the deferred taxes, if no selected
item is entered and if no item is entered in the document type. You specify the global balance sheet item as follows:
1. In the process view of the consolidation workbench, choose Master Data Items Selected Items .
2. On the Deferred Taxes - Balance Sheet tab page, enter the global balance sheet item for deferred taxes.
Specify Account Assignments for Deferred Taxes for Capitalization and Valuation Allowances
If you are using the Adjustment of Deferred Taxes function, you must make the following settings in the Customizing for
Balance Sheet Items for Deferred Taxes:
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1. Specify the Original Cost Item - Acquisition as the trigger item for deferred taxes and specify a balance sheet item to
which the system is to post the deferred taxes.
The Original Cost Item - Acquisition item is speci ed in Customizing under Consolidation Functions Capitalization and
Valuation Allowances Type of Assets/Liabilities on tab page Items for Original Cost and can be overridden in the
master data of the individual noncurrent assets.
The balance sheet item for the posting of the deferred taxes cannot overlap with balance sheet items for deferred taxes
that are de ned in the global Customizing for Selected Items or in the Customizing of document types.
2. Specify the Appropriations for Asset - Acquisition as the trigger item for deferred taxes and specify a different balance
sheet item to which the system is to post the deferred taxes.
The Appropriations for Asset - Acquisition item is speci ed in Customizing under Consolidation Functions Capitalization
and Valuation Allowances Type of Assets/Liabilities on tab page Items for Original Cost.
Since no adjustment of deferred taxes is allowed to take place for this balance sheet item, select the NoAdjDfTx (
Suppress Adjustment of Deferred Taxes) checkbox.
Examples: Interunit Entries

All of the examples are based on these assumptions:
Customizing for Balance Sheet Items for Deferred Taxes is active. (For more information on activating this Customizing,
see Specifying Account Assignments for Deferred Taxes in the Balance Sheet .)
The postings are made using a document type with business application Elimination of IU Pro t/Loss in Transferred
Inventory on posting level 30.
Example 1: Posting Affecting Net Income; One Business Transaction per Posting
Initial Data
The following data forms the basis for the postings:
For consolidation units A and B, interunit entries need to be made: In the original document, there is only one posting to
the income statement for consolidation unit A; for consolidation unit B, there are only postings to balance sheet items.
The tax rate for consolidation unit A is 20%.
Postings
Since the document does not balance per consolidation unit, and there is a line item that posts to the income statement, the
system assumes that all balance sheet items are related to the nancial statement imbalance.
Note
Even if there were a triggering balance sheet item, the system would ignore it.
The deferred taxes for the balance sheet are posted to the consolidation unit to which the nancial statement imbalance is
posted. The system derives the posting items for the deferred taxes from the original document, from the posting items with
postings to balance sheet items. This derivation disregards the consolidation unit on which these postings were made.
Consolidation Unit Item Value
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Consolidation Unit Item Value
A Income statement 1 80
B Balance sheet 1 30-
A Annual Net Income – Income Statement 64-
A Annual Net Income – Balance Sheet 64
A Deferred Taxes (I/S) (Debit Item) 16-
A Deferred Taxes (Balance Sheet) (Debit 6

Item)
A Deferred Taxes (Balance Sheet) (Debit 10

Item)
Comments:
If there were an additional consolidation unit in the original document, and its postings balanced, then the system would
view this consolidation unit separately, so that it would not be included in the determination of deferred taxes in the
balance sheet.
If a clearing item for consolidation units were de ned in the document type, then the values on this item would not be
included in the considerations outlined above.
Example 2: Posting Affecting Net Income; Multiple Business Transactions in One

Posting
Initial Data
For consolidation units A, B, and C, interunit entries need to be made: In the original document, there are only postings to
the income statement for consolidation units A and B; for consolidation unit B, there are postings to balance sheet
items.
Tax rate for A: 20%; tax rate for B: 20%
Postings
Since the document does not balance per consolidation unit, and there are line items that post to the income statement, the
system assumes that all items that post to balance sheet items are related to the nancial statement imbalance.
Note
Even if there were a triggering balance sheet item, the system would ignore it.
The system posts the deferred taxes for the balance sheet to the consolidation units to which a nancial statement imbalance
is posted. The system derives the posting items for the deferred taxes from the original document, from the posting items with
postings to balance sheet items. This derivation disregards the consolidation unit on which these postings were made. To
distribute the values of the original items that post to the balance sheet to consolidation units A and B, the system uses the
values of the items with income statement postings (from the original document) as weighting factors.
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Consolidation Unit Item Value Automatic Line Item
A Income Statement 1 80.00
B Income Statement 2 20.00
C Balance sheet 1 60.00-
C Balance sheet 2 40.00-
A Clearing - Balance Sheet 64.00 1
A Clearing for the Income 64.00‑ 1

Statement
A Deferred Taxes - Balance Sheet 9.60 2

1 (Debit)
A Deferred Taxes - Balance Sheet 6.40 2

2 (Debit)
A Deferred Taxes - I/S (Debit) 16.00- 2
B Clearing - Balance Sheet 16.00 1
B Clearing for the Income 16.00‑ 1

Statement
B Deferred Taxes - Balance Sheet 2.40 2

1 (Debit)
B Deferred Taxes - Balance Sheet 1.60 2

2 (Debit)
B Deferred Taxes - I/S (Debit) 4.00- 2
Comments: See comments for Example 1.
Example 3: Posting Without Effect on Net Income; Multiple Consolidation Units
Initial Data
Consolidation units: A and B
For consolidation units A and B, interunit entries need to be made.
Tax rate for A: 20%
Triggering balance sheet item for A: Balance sheet 1
Global item for deferred taxes in balance sheet for A: Deferred taxes - standard
Consolidation Unit Item Trigger Value
A Balance sheet 1 X 100
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Postings
Balance sheet 1 item is speci ed as the triggering balance sheet item. Since the document does not contain any items with
postings to the income statement, the triggering item triggers the posting of deferred taxes to the balance sheet on
consolidation unit A. This rst leads to the posting of deferred taxes on the tax item Deferred Taxes Balance Sheet 1, which is
speci cally for the Balance sheet 1 item. Since the original document does not balance for consolidation unit A, the system
makes a further inverse posting on the global item for deferred taxes (balance sheet).
Consolidation Unit Item Value Automatic Line Item
A Deferred Taxes - Balance Sheet 20- 2

1 (Credit)
A Deferred Taxes - Standard 20 2

(Debit)
Comments:
If a clearing item for the consolidation unit were entered in the document type, this would not result in any change to the
postings of deferred taxes (balance sheet).
Credit/Debit Decision
For automatic posting of deferred taxes and for posting to clearing items, the system has to make a credit/debit decision. This
means:
During posting of deferred taxes, the system determines what should be posted: the debit item entered in Customizing,
the credit item, or a corresponding subassignment.
During posting of a balance clearing to a clearing item, the system determines whether the credit or debit
subassignment entered in Customizing is to be posted.
During posting of a balance clearing per consolidation unit due to interunit entries, the system does not make a
credit/debit decision like those above.
There are two methods the system can use to make the credit/debit decision. Which of the two methods is used depends on
whether you use selected items for deferred taxes from Customizing for Balance Sheet Items for Deferred Taxes (in other
words, whether you assigned your choice of Customizing for Balance Sheet Items for Deferred Taxes). You do so by choosing, in
the process view of the consolidation workbench, on the Deferred Taxes - Balance Sheet tab page, Master
Data Items Selected Items .
If you do not use this special Customizing then the system makes the credit/debit decision as follows:
The decision is made for all line items in the original document which apply to a consolidation unit . Here the
system uses the credit/debit indicator of the balance of the income statement posting items.
The postings to income statement items in the original document serve as the calculation base for the automatic
posting items for balance sheet clearing and income statement clearing, as well for deferred taxes in the balance
sheet and income statement.
If you do use this special Customizing then the system makes the credit/debit decision as follows:
The system makes the decision for each individual line item, using the debit/credit indicator of the posting items
in the original document.
The postings to balance sheet items in the original document serve as the basis for the calculation of deferred
taxes in the balance sheet.
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The postings to income statement items in the original document serve as the basis for the automatic posting
items for balance sheet clearing and income statement clearing, as well for deferred taxes in the income
statement.
Example 1: Balance for Balance Sheet and Income Statement Items Is Zero for
Each Subdocument
You entered the following manual posting. Subsequently, the system posts on this document, both to clearing items for the
balance sheet and income statement, as well as to debit and credit items for deferred taxes.
The following table shows the posting items of the original document, as well as – in the last column – the credit/debit decision
of the system for the given item.
Line Item Transaction Type Value Credit/Debit Decision of System
Per ConsUnit By Item
1 Income statement 120 100.00 50.00 Debit ⇒ Debit

item
2 Income statement 140 50.00‑ ⇒ Credit

item
3 Balance sheet item 120 100.00‑ ⇒ Debit
4 Balance sheet item 140 50.00 ⇒ Credit
You set the default indicator for the transaction type in account assignments for balance sheet clearing and income statement
clearing, as well as for deferred taxes in the balance sheet and income statement.
Credit/Debit Decision of System

Case 1: You are not using Customizing for Balance Sheet Items for Deferred Taxes (credit/debit decision per
consolidation unit):
The system totals the income statement postings from line items 1 and 2. The result is that the postings to the items for
deferred tax must be on the debit items.
Case 2: You are using Customizing for Balance Sheet Items for Deferred Taxes (credit/debit decision for each item):
The system considers the line items individually. The resulting tax postings for transaction type 140 are then two credit
postings – in contrast to the situation in case 1.
The following applies in both cases: Since the subdocuments for transaction types 120 and 140 each balance, and the default
indicator is set for the transaction type, the system adopts the value for the subassignment from the original document.
The following tables show the automatic postings, separately for cases 1 and 2.
Derived from Line X of Item TransactionType Value Automatic Posting Item

Original Document
(1) Clearing Item for the 120 75.00 1

Balance Sheet
(1) Clearing Item for the 120 75.00‑ 1

Income Statement
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Original Document
(1) Deferred Taxes - Balance 120 25.00 2

Sheet (Debit)
(1) Deferred Taxes - I/S 120 25.00‑ 2

(Debit)
(2) Clearing Item for the 140 37.50- 1

Balance Sheet

Income Statement
(2) Deferred Taxes - Balance 140 12.50‑ 2

Sheet ( Debit )
(2) Deferred Taxes - I/S ( 140 12.50 2

Debit )

Original Document

Balance Sheet
(1) Clearing Item for the 120 75.00‑ 1

Income Statement
(3) Deferred Taxes - Balance 120 25.00 2

Sheet (Debit)
(1) Deferred Taxes - I/S 120 25.00‑ 2

(Debit)
(2) Clearing Item for the 140 37.50- 1

Balance Sheet

Income Statement
(4) Deferred Taxes - Bal. 140 12.50‑ 2

Sheet ( Credit )
(2) Deferred Taxes - I/S ( 140 12.50 2

Credit )
Example 2: Balance for Balance Sheet and Income Statement Items Not Zero for
Each Subdocument
You entered the following manual posting.
The following table shows the posting items of the original document, as well as – in the last column – the credit/debit decision
of the system for the given item.
Line Item Value Credit/Debit Decision of System
Per ConsUnit By Item
1 Income statement item 100 100- Credit ⇒ Debit
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Line Item Value Credit/Debit Decision of System
2 Income statement item 200- ⇒ Credit
3 Balance sheet item 100 ⇒ Debit
Credit/Debit Decision of System

Case 1: You are not using Customizing for Balance Sheet Items for Deferred Taxes (credit/debit decision per
consolidation unit):
The system totals the income statement postings from line items 1 and 2. The result is that the tax postings are credit
items.
Case 2: You are using Customizing for Balance Sheet Items for Deferred Taxes (credit/debit decision for each item):
The system considers the line items individually. Here the result is a debit posting for item 1 and a credit posting for item
2.
The following tables show the automatic postings, separately for cases 1 and 2.
Belongs to Line X from Item Subitem Value AutomaticPosting Item

Original Document
(1 + 2) Clearing Item for the Credit 75- 1

Balance Sheet
(1 + 2) Clearing Item for the Credit 75 1

Income Statement
(1 + 2) Deferred Taxes - Bal. Credit 25- 1

Sheet (Credit)
(1 + 2) Deferred Taxes - I/S Credit 25 1

(Credit)
Belongs to Line X from Item Subitem Value AutomaticPosting Item

Original Document
(1) Clearing Item for the Debit 75 1

Balance Sheet
(2) Clearing Item for the Credit 150- 1

Balance Sheet
(1) Clearing Item for the Debit 75- 1

Income Statement
(2) Clearing Item for the Credit 150 1

Income Statement
(3) Deferred Taxes - Bal. Credit 25- 2

Sheet (Credit)
(1) Deferred Taxes - I/S Debit 25- 2

(Debit)
(2) Deferred Taxes - I/S Credit 50 2

(Credit)
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Manual Posting
Use
You can make manual postings on all posting levels.
You use manual posting, for example:
To adjust the reported nancial data (with posting level 01)
To post standardizing entries to the (adjusted) reported nancial data (with posting level 10)
The sections that follow describe the functions that are available only in manual postings.
Fixing or Hiding of Subassignments

Use
The nancial statement items you post manually sometimes require a breakdown by subassignments, depending on the
breakdown category. When you enter documents with many items and subassignments, document entry can become very
confusing.
For this reason, document type Customizing provides the option of xing or hiding each subassignment during document entry.
Features
Fixing a Subassignment (Permanently or Temporarily)
A xed subassignment means that the subassignment must be unique for each posting, and thus can only have one xed value.
A xed subassignment can either be permanent or temporary. When you x a subassignment temporarily, you can deactivate
the xing when entering the document.
 Example
You may want to x the subassignment transaction currency temporarily or permanently if you normally only enter
documents in transaction currency. By making the transaction currency subassignment xed, you prevent two different
transaction currencies from being entered inadvertently.
The xed subassignments are displayed when a document is entered. The system shows the non- xed characteristics for each
document line item.
Hiding a Subassignment
You can hide subassignments that only apply to very few nancial statement items.
The system only shows a hidden subassignment in a posting when you enter an item in the document line that is broken down
by that subassignment.
Report for Consistency Check for Manual Document Types
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If you make changes to the data model after you have created document types for manual postings, this can result in
inconsistencies in the control of document elds for the document types. The system eliminates these inconsistencies when a
data collection task is run to which you assigned the inconsistent document type for posting documents. If, when you execute
the task, the system identi es this type of inconsistency in the Customizing settings for a document type, the system attempts
to correct this inconsistency automatically. Where applicable, a message is also displayed requesting you to save the changes.
To prevent this message from appearing, you can execute report UCUMD_REPAIR_DOCTYPE_FIELDOPT. This report checks
manual document types for these inconsistencies. When you execute the report in the update run, it eliminates any
inconsistencies found.
Recommendation
We recommend that you always execute the report whenever you have made changes to the data model.
Before you execute the report, specify the consolidation area in the global parameters. The report only ever checks the manual
document types for this consolidation area that you speci ed in the global parameters.
Validation of Manually-Created Documents

Use
You can extend the validations that are, by default, performed for all postings. This is done by checking manually-created
documents with your own (custom) validation methods.
Prerequisites
1. In validation customizing, you have de ned the validation methods and rules you want to use.
2. In document type customizing, you have speci ed these validation methods for the document header, line items, and/or
the entire document.
Features
The following elements of a manually-created document can be checked with validation methods:
Document Header
The validation method checks the characteristics that are xed in the header.
Document Line Items
The validation method checks each line item.
An example would be a check that certain users do not post currency values beyond certain currency limits.
The Entire Document
The validation method checks the entire document.
An example would be to ensure that the total amount of depreciation that is posted to assets with certain
subassignments is equal to the total amount in the corresponding depreciation expense item.
Manually Posting an Entry

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Procedure
Launch the consolidation monitor.
Check the parameters.
Place the cursor at the intersection between the organizational unit to be posted and the task to be performed.Then choose
Update Run
If you did not assign the document type for manual posting to a task, the system automatically assigns the document type to
the data entry task.
The Document Header tab page shows that the document type is already preset. Enter the missing header data (for example,
the partner unit).
If you plan to book deferred taxes in the document type and you have included the Not Tax Relevant and/or Debit/Credit
Decision Inverted elds in the data stream for documents, you can (by setting the relevant indicator) suppress the booking of
deferred taxes and invert the debit/credit decision that the system makes. For more information, see the eld help or Deferred
Taxes .
The Fixed Subassignments tab displays the subassignments that were xed with a permanent or temporary default in the
document type. You specify the xed value for each subassignment. You can revoke the xing of subassignments that are only
temporarily xed by removing the subassignment from the tab page. If necessary, you can re- x the subassignments that were
removed later on when you enter the line items.
Enter the required accounting objects.
Run a simulation to ensure that the entry is complete and to review the automatic line items generated by the system. To do
this, choose Check .
The system checks, for example, if:
the document balance is zero
all required subassignments have been entered
all required currencies have been entered
Automatic line items have an indicator that shows whether the entry is a nancial statement balancing adjustment. If needed,
you can modify the automatic line items.For example, you might want to select a different subassignment for selected items
(see also Financial Statement Balancing Adjustments ).
If desired, enter a comment for the document.
Post the document by selecting the Post symbol.
If the document type is assigned a work ow variant for Approving Manually Entered Documents , the system starts the
work ow. The document is not permanently posted until it has been authorized.
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Entering a Document with a Reference

Document
Use
You employ this procedure to manually enter a posting document that is similar to an existing document.
Procedure
1. Launch the consolidation monitor.
2. Check the parameters.
3. Place the cursor at the intersection between the organizational unit to be posted and the task to be performed. Then
choose Update Run .
4. On the screen for manual document entry, choose the mode Enter Document with Reference Document .
5. Enter the scal year, period, and document number of the document you want to reference.
The system shows the reference document (with header and line item information).
If the reference document uses a different document type than the task for manual posting you have just started, the
system replaces the document type with the document type of the started task, in which case the document that is
nally posted has the document type of the started task.
6. Enter a new document text.
7. On the Fixed Subassignments tab page, proceed in the same fashion as in regular manual postings .
8. Where applicable, change the header data and line items of the reference document by overtyping the existing values.
9. Run a simulation to ensure that the entry is complete and to review the automatic line items generated by the system.
To do this, choose Check .
The section Manually Posting an Entry describes which checks the system performs.
10. If desired, enter a comment for the document.
11. Post the new document by selecting the Post symbol.
Sample Documents
Use
You use sample documents as templates when manually entering a document. Sample documents are used to propose values
for the data elds in manually-entered documents.
The use of sample documents is bene cial if you need to enter many documents that are similar to each other.
Integration
You can save a held document as a sample document.
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Conversely, you can save a sample document as a held document.
Prerequisites
To use sample documents, you need to have generated the data stream for held documents and sample documents in the data
basis . Held documents and sample documents are stored in the corresponding InfoProvider.
You have completed your Customizing settings for manual postings.
To create sample documents, you require authorization for manual posting.
To create sample documents for all users, you require authorization for making Customizing settings. To create user-speci c
sample documents, you require authorization for master data.
Features
When entering a document, you can have the system propose values from a sample document. You can do the following with the
data of a sample document:
Adopt the data without change
Change the data by omitting or supplementing portions of the data
When you save sample documents, the system does not write totals records or journal entries to the database, nor does it
change the task status in the Consolidation Monitor.
Sample documents are reusable: When you post a document based on a sample document, the sample document is retained.
User-Speci c and All-User Sample Documents
You can save sample documents for yourself. These sample documents are called user-speci c . Only you (the user who entered
the document) can view or change these documents.
Alternatively, you can provide access to your sample documents to all other users. These documents are called all-user . All
users are able to view and use these documents. If other users have the respective authorization, they can also change the
sample documents (see "Prerequisites" above).
Identi cation of Sample Documents
Sample documents use the following key elds for unique identi cation: Document Name (technical name) and User Name .
Document Name User Name
All-user sample documents De ned by the user Blank
User-speci c sample documents De ned by the user Name of user who created the document
Held documents have document numbers - as do normal documents. However, they are only used for technical purposes.
Transport
Only all-user sample documents can be transported.
When you save an all-user sample document, the system writes a Customizing change request. The document can be
transported to another system.
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If an all-user sample document with the same document name already exists in the target system, that sample
document is overwritten with the same document name.
If no all-user sample document with the same document name exists in the target system, then the target system
creates the document name.
Comments
You can enter comments for user-speci c and all-user sample documents.
Contexts for Sample Documents
Sample documents are visible only in the consolidation area in which they are entered. The context in which sample documents
are valid is determined by the xed characteristics of the consolidation area.
Sample documents are not time dependent.
Consistency Checks for Sample Documents
When you enter data for a sample document or when you save, the system checks if the entered values are valid. The system
also checks the breakdowns when a nancial statement item is entered in the line item. However, the system does not check
the entire document. For example, it does not check whether the document balances to zero or whether the automatic line
items are correct.
User Actions on Sample Documents
You can create, change, or delete sample documents, and you can load sample documents for posting.
Note
These actions are available only within tasks for manual posting. This applies regardless of whether you execute the task in
the Consolidation Monitor or in the Consolidation Workbench.
The creation of sample documents is available only within tasks for manual posting, as well.
Lists of Sample Documents
In the Consolidation Workbench, you can list the sample documents and, when doing so, distinguish between user-speci c and
all-user sample documents.
Creating, Changing, Loading, and Deleting

Sample Documents
Use
You use this procedure to perform the following actions with sample documents:
Create
Change
Load (to use a sample document as a template for creating a document)
Delete
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Prerequisites
Prerequisites are listed under Sample Documents .
Creating Sample Documents

1. Call up the desired task for manual posting.
The Enter Manual Document screen appears.
2. Enter the data you want to save in the sample document.
If desired, enter a comment.
3. In the toolbar for manual posting, choose Save As Sample Document .
The Save as Sample Document dialog box appears.
4. Enter a name in the Document Name eld. If you want all users to be able to access the sample document, deselect the
User-speci c indicator.
5. To con rm your entries, choose Continue .
The system saves the data, but does not post journal entries or totals records in the database.
Changing Sample Documents

After creating a sample document, you decide to change it.
2. In the toolbar for manual posting, choose Load Held Documents/Sample Documents.
The Load Held Documents/Sample Documents dialog box appears. A list of documents is displayed with only those
documents with document types that are suitable for the present task.
3. Select the sample document you want to load, and choose Continue .
4. The sample document is displayed.
5. Change the sample document.
6. Resave the sample document by choosing Save As Sample Document in the toolbar for manual postings.
The system asks you whether to save the changed sample document as a new sample document, or whether to
overwrite the old sample document.
7. If you save it as a new sample document, enter a new name for the document. Decide whether to select or deselect the
User-speci c indicator. To con rm your entries, choose Continue .
Loading Sample Documents for Posting

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3. Select the sample document you want to load, and choose Continue .
4. The system loads and displays the data of the sample document.
5. Change the data as required.
6. Post the document by choosing Post Document in the toolbar for manual postings.
Deleting Sample Documents

You have created and saved a sample document. Later you discover that you no longer need the sample document.
2. In the toolbar for manual posting, choose Delete Held Documents/Sample Documents.
The Delete Held Documents/Sample Documents dialog box appears. A list of documents is displayed with only those
3. Select the sample document you want to delete, and choose Continue .
Held Documents
Use
When manually entering documents, you often are interrupted or do not have all of the data necessary to complete the entry.
(For example, the value of a subassignment might be missing.)
In such cases you can temporarily save the data you already entered; then, later on, you can continue entering the document
and post the completed document.
Integration
You can save a held document as a sample document. Conversely, you can save a sample document as a held document.
Prerequisites
To use held documents, you need to have generated the data stream for held documents and sample documents in the data
basis . Held documents and sample documents are stored in the corresponding InfoProvider.
You have completed your Customizing settings for manual postings.
Features
When you hold a document in the system, the document does not need to be complete. Also, the system does not post journal
entries or totals records, nor is the document data used for reports and evaluations. The task status in the Consolidation
Monitor does not change.
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Only after you complete and truly post the document later on, does the system write the journal entries and totals records to
the database. Then, the system also deletes the held document.
Identi cation of Held Documents
Held documents use the following key elds for unique identi cation:
Document Name (technical name): The document name is initially blank.
User Name : This is the name of the user who created the document.
Held documents have document numbers - as do normal documents. However, they are only used for technical purposes.
User-Speci c and All-User Held Documents
You can hold incomplete documents for yourself. These held documents are called user-speci c . Only you (the user who
entered the document) can view or change these documents.
Alternatively, you can provide access to your incomplete documents to all other users. These held documents are called all-user
. All users are able to view and change these documents.
Transport
Held documents can not be transported.
Comments
You can enter comments for user-speci c and all-user held documents.
Context for Held Documents
Held documents are visible only in the consolidation area in which they are entered. In other words, the context of held
documents is determined by the xed characteristics of the consolidation area.
Consistency Checks for Held Documents
When you enter data for a held document or when you save, the system checks if the entered values are valid. The system also
checks the item breakdowns. However, the system does not check the entire document. For example, it does not check whether
the document balances to zero.
User Actions on Held Documents
You can create held documents (that is, you can hold documents), and you can change, complete, and delete held documents.
Note
These actions are available only within tasks for manual posting. This applies regardless of whether you execute the task in
the Consolidation Monitor or in the Consolidation Workbench.
Listing of Held Documents
In the Consolidation Workbench, you can list the held documents and, when doing so, distinguish between user-speci c and all-
user held documents.
Holding Documents
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Use
You use this procedure to temporarily store (or "hold") incomplete documents, to complete held documents, and to delete held
documents.
Prerequisites
Prerequisites are listed under Held Documents .
Holding Documents
2. Enter the document as usual.
3. In the toolbar for manual posting, choose Save As Held Document .
The Save as Held Document dialog box appears.
4. Enter a name in the Document Name eld. If you want all users to be able to access the held document, deselect the
User-speci c indicator.
5. Con rm your entries.
The system saves the data, but does not post journal entries or totals records in the database.
Note
You can change the held document and save it again with the same name.
Completing Held Documents

You have entered an incomplete document and saved it as a held document.
3. Select the held document you want to load, and choose Continue .
4. The held document is displayed.
5. Complete the held document. You can change the document or add new line items.
6. Post the document by choosing Post Document in the toolbar for manual postings.
The system posts the document and updates the journal entries and the totals records.
Deleting Held Documents
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You have entered an incomplete document and saved it as a held document. Later you discover that you no longer need the
held document.
2. In the toolbar for manual posting, choose Delete Held Documents/Sample Documents.
The Delete Held Documents/Sample Documents dialog box appears. A list of documents is displayed with only those
3. Select the held document you want to delete and choose Continue .
Reversal and Inversion of Manual Postings

Use
You use these functions to revoke individual documents.
See also
If you want to revoke a great number of manually or automatically posted documents, you can use the function Mass Reversal .
Features
The system features two modes for revoking documents:
Reversal
Inversion
Reversal
The system reverses a document by posting a reversal (reversing) document with the same line items as in the reversed
document with reversed debit/credit signs, using the same period as in the reversed document.
Neither the reversed document nor the reversal document can be reversed again.
Inversion
Inversion mode revokes postings that were made in earlier posting periods. Thus, an inversion is not a true reversal because a
net difference remains in the original period (of the inverted document).
It is still possible to reverse a document that has been inverted. When an inverted document is reversed, the inverting
document is also reversed with the result that a remaining net difference no longer exists in both the period of the inverted
document and the period of the inverting document.
Activities
Reversing
1. Run the consolidation monitor.
2. Check the parameters.
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3. Place the cursor at the intersection between the organizational unit to be posted and the task to be performed, and
choose Update Run .
4. If you did not assign the document type for manual posting to a task, the system automatically assigns the document
type to the data entry task.
5. On the screen for manual document entry, choose the Reverse Document mode.
6. On the Document Header tab page:
Enter the document number of the document to be reversed.
Enter the document text.
The document type is already preset. The systems uses the scal year and period that are set in the permanent
parameters.
7. The only data you can change in the screens that follow is the text for the reversal document. The other data is only
displayed. The amount in each line item carries a reversed debit/credit sign as compared to the document to be
reversed.
8. You post the reversal entry by choosing Save .
Note
The display of a reversed document shows the number of the associated reversal document in the header data.
Likewise, in the header of a reversal document you see the number of the reversed document. The system
automatically records the document number in the header data of the associated document.
Inverting
To invert documents, proceed as you would when reversing documents.
However, note the following exceptions:
On the screen for manual document entry, choose the Invert Document mode.
On the Document Header tab page, specify the scal year, posting period, and document number of the document to be
inverted.
Consolidation-Group-Speci c Entries
Use
You can use posting level 35 to make group-speci c manual postings that relate to management consolidation only and are not
included in external consolidation.
Prerequisites
You have activated the FIN_ACC_GC_BCOMB business function.
Features
In Customizing for document types, you can create document types that post to posting level 35 (Posting Speci c to
Consolidation Group). This is only supported for manual document types (manual posting, upload, and copying of documents).
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Postings made to posting level 35 are handled in the same way as postings to posting level 30 – the only difference being that
there is a special reporting logic for postings to posting level 35. This reporting logic enables you to make manual postings
explicitly for speci c consolidation groups.
The following table shows an example of postings and reporting for posting levels 30 and 35 in a consolidation group hierarchy:
Consolidation Group Hierarchy Posting (30) Posting (35) Reporting (30) Reporting (35)
Higher-level group 50 50 150 50
Lower-level group 100 100 100 100
In the lower-level group, you post the value 100 to level 30 and again to level 35. The values are displayed accordingly in
reporting.
If you now post the value 50 to level 30 in the higher-level group, the value displayed for level 30 in reporting is 150. This is
because values from lower-level groups are inherited implicitly by higher-level groups.
However, if you post the value 50 to level 35 in the higher-level group, the value displayed for level 35 of the higher-level group
when reporting is run is 50, which is the value that you posted explicitly for this group.
To achieve the behavior described above in reporting, the system's reporting logic performs a virtual revocation of data posted
on level 35 from lower-level consolidation groups. The system only revokes this data in the working memory used to display data
with reporting logic; the data is not revoked persistently from the database.
Work ow for Approving Manually-Entered

Documents
Use
You use this function to improve the quality of manually-entered documents by requiring that the documents be cross-checked
by one or more approval agents. This improves public con dence in your consolidated statements and satis es the
requirements of the Sarbanes-Oxley Act .
A work ow for approving manually-entered documents consists of the following activities: The employee creates the document
and saves it temporarily. The system noti es an approval agent, who then either approves or rejects the document.
The system logs all work ow processes.
Integration
This consolidation function uses functions of SAP Business Work ow (for example, work ow templates and e-mail noti cations
in Business Workplace ).
When a document creator submits a document for approval, that document is stored as a document requiring approval in the
data stream for held documents and sample documents
Prerequisites
See the prerequisites and the Customizing settings in Customizing for Work ows for Approving Documents .
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Features
Overview
You can activate or deactivate the Work ow for Approving Documents function within each individual consolidation area. If you
activate the function, you can use the document type to determine whether work ows are started for all documents that use
that document type.
The de nition of the approval process is exible. You can implement a BAdI to meet any special requirements you may have.
When the creator of a document selects a document type that is de ned for work ows and posts the document, he or she
essentially submits the document for approval . This automatically triggers the work ow.
Each approval agent can approve or reject the document, and can supplement the document with a comment. Once the
document is approved , the system irrevocably posts the document. However, if the document is rejected , the system noti es
the document creator about the rejection. The document creator can then discard the document (which deletes the document),
or can revise the document and resubmit it for approval.
If an error occurs during a work ow process (for example, because Customizing settings are incorrect or have been changed),
the work ow is interrupted and the system noti es the document creator or the approval agent. The document creator can
discard the document – that is, cancel the work ow – or correct the error and resume the work ow .
In the Business Workplace , you can de ne substitutes for approval agents.
You can list the documents undergoing the work ow process. You also can display the work ow logs.
Flexible De nition of Work ow Variants
You can de ne one or more work ow variants. Work ow variants determine the start condition, the process ow, and the
approval agents for the work ow. They have the following elements:
Work ow template
Start condition
Approval agents
You de ne work ow variants in Customizing for Consolidation, and assign them to document types for manual posting. You can
assign a given work ow variant to any number of document types.
Work ow Templates
When de ning a work ow variant, you specify a work owtemplate. The work ow template roughly determines the process ow
of the work ow. SAP delivers two standard work ow templates:
WS75300001: Once all approval agents have approved the document, the system posts the document.
WS75300002: The document is immediately posted; all approval agents are noti ed in their Business Workplace
inboxes.
You can specify a work ow template delivered by SAP, or de ne your own work ow template.
Recommendation
We recommend that you use the prede ned work ow template.
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Start Condition
As a condition for starting a work ow, you can specify a validation method in the work ow variant.
If you specify a validation method, then the work ow is triggered only if the validation issues one or more messages
(error, informational, warning, or others). In this case, the system displays the message returned from validation on the
screen for manual posting when the work ow is started.
However, if the validation does not issue a message, no work ow is started and the document is immediately posted.
 Example
You want to trigger a work ow only if the document balance exceeds a certain amount.
If you do not specify a validation method, the work ow is always triggered.
Note
You can assign multiple work ow variants to a document type. If this is done, the system consecutively checks the
start conditions in each work ow variant, using the order in which the assignments to the document type were made.
As soon as the start conditions of a work ow variant are met, the system starts the work ow and ignores any
remaining, unchecked work ow variants.
If none of the start conditions of the assigned work ow variants are met, the system posts the document without a
work ow.
Approval Agents
When de ning a work ow variant, you specify one or more approval agents per work ow variant step. You can also use single
selections when doing this.
The system sends the workitemrandomly to the approval agents within a work ow variant step.
In contrast, the system uses the order of the work ow variant steps when sending work items to the approval agents of
the different work ow variant steps.
Normally the de nitions of approval agents in the work ow variant remain constant. However, the following options are
available for determining the approval agents dynamically:
The system derives the approval agents from the respective attribute of the consolidation unit or consolidation group
(or any other document eld). But the following prerequisites must be given:
BI InfoObject Approval Agent ( 0BCS_AGENTA ) is activated.
InfoObject 0BCS_AGENTA is assigned as an attribute to the appropriate consolidation units and/or consolidation
groups. (You can assign the InfoObject 0BCS_AGENTA to other InfoObjects also. For example, if you assign it to
the partner unit, the system determines the approval agent according to the partner unit.)
On the Attributes tab page in Customizing for the data basis, you have selected the respective indicators for
InfoObject 0BCS_AGENTA for the eld name for the consolidation unit (for example, the company) and for the
eld name for the consolidation group.
In Customizing for the work ow variant steps, you used cross-characteristic selections and you selected the
Approval Agent attribute (as the attribute of a consolidation unit, consolidation group, or another document
eld).
The system determines approval agents dynamically using the UC_WFV_DOC BAdI (see below).
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If multiple work ow variant steps exist, the system normally proceeds as follows: First, all approval agents of the rst work ow
variant step must approve the document. Then, all approval agents of the second work ow variant step must approve the
document, and so forth. Once all approval agents of the last work ow variant step have approved the document, the system
nally posts the document.
BAdI
If none of the delivered work ow templates meet your requirements or the possible Customizing settings for the work ow
variants are insufficient, you can use the BAdI UC_WFV_DOC . This lets you determine the following:
Should the work ow be started using a certain work ow variant?
How many steps should the work ow variant have? And which approval agents belong to which work ow variant step?
You can also determine that only a certain number of approval agents need to approve the document (instead of all
approval agents).
Which conditions must be met before a work ow variant step is nished?
When is a manually-entered document ultimately approved (so that it can be posted in the InfoProvider for documents),
or when is it ultimately rejected?
The work ow variant is an input parameter for the BAdI methods. This lets the system differentiate the BAdI implementation by
work ow variant.
For more information about the BAdI UC_WFV_DOC , see the system documentation for the BAdI.
Constraints
The following constraints apply:
Flexible upload cannot be used to upload a document type, to which a work ow variant has been assigned.
A work ow cannot be triggered by the data collection methods Copy or Load from Data Stream – even if a work ow
variant is assigned to the document type.
The system uses background work itemtechnology for work ows. If an error related to a background work item causes
processing to be terminated, the system is able to alert the work ow administratoronly by means of a missed deadline
work item.
See also
SAP Business Work ow
Business Workplace: Work ow Functions
Work ow Settings
De ning a Substitute During a User's Absence
Work ow Inbox and Work ow Outbox
Extended Noti cations for SAP Business Work ow [e-mail, SMS]
Process Flow of Work ows for Manually-

Entered Documents
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Purpose
You use the work ow approval process as a participant in a work ow for approving manually-entered documents.
As the creator of a document, you perform the following subprocesses:
Enter documents and submit them for approval (which triggers the work ow)
When an error arises during the approval process: either discard the document; or correct the error and resume the
work ow
When a document is rejected: Either discard the document, or revise the document and resubmit it for approval
As an approval agent , you manage the following subprocess:
Review the document, and either approve or reject the document
Prerequisites
You have made your Customizing settings for work ows for approving documents .
Process Flow
Overview
The gure below shows the process ow in an approval work ow for manually-entered documents. The gure makes the
following assumptions:
There is only one approval agent.
No errors occur in the work ow.
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Approval Work ow for Manually-entered Documents
Triggering of the Work ow (Creator)
Prerequisite: At least one work ow variant needs to be assigned to the document type for manual posting.
1. The creator of the document runs the task for manual postings (or a task for data collection) in the Consolidation
Monitor.
2. He or she enters data for the document as usual. (See Manually Posting an Entry .)
3. In the toolbar for manual posting, the creator chooses Post Document .
The document is temporarily stored as a document requiring approval.
4. The approval work ow starts, provided one of the following conditions apply:
No validation method has been speci ed in the work ow variant.
A validation method has been speci ed and it has issued a message (which is displayed on the manual posting
screen)
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Otherwise, the document is immediately posted without the work ow.
5. The rst approval agent is noti ed in the Business Workplace inbox.
Approval or Rejection of the Document (Approval Agent)
1. The approval agent displays the document in Business Workplace at Inbox Work ow.
The consolidation system displays the document.
2. He or she reviews the document.
3. If desired, the he or she enters a comment .
4. He or she approves or rejects the document:
To approve the document, the approval agent chooses Approve in the toolbar for manual postings.
The document is irrevocably posted. The creator of the document is noti ed in the Business Workplace inbox.
To reject the document, the approval agent chooses Reject in the toolbar for manual postings.
The creator of the document is noti ed in the Business Workplace inbox.
(What the creator of the document can do after a rejection is described below.)
Steps Taken When Errors Occur Within a Work ow (Creator)
Errors in a work ow can have the following causes:
The work ow variant changes and is therefore no longer valid.
The document cannot be posted because the task is blocked.
The implementation of BAdI UC_WFV_DOC is inconsistent.
If these errors occur, the work ow is interrupted and an e-mail with detailed error messages is sent to the Business Workplace
inbox of the creator of the document.
The creator of the document does one of the following:
Corrects the error and resumes the work ow by choosing Resume in the manual posting toolbar on the manual posting
screen.
Discards the document by choosing Cancel in the toolbar for manual postings.
The document requiring approval is deleted. This ends the work ow.
Steps Taken When a Document is Rejected (Creator)
When a document is rejected, the creator of the document does one of the following:
Revises the document and resubmits it for approval.
Discards the document.
To revise the document, the creator proceeds as follows:
1. He or she calls up the task for manual posting.
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2. In the toolbar for manual posting, he or she chooses Load Held Documents/Sample Documents.
The Load Held Documents/Sample Documents dialog box appears. A list of documents appears on the screen with only
those documents with document types suitable for the present task.
3. He or she selects the rejected document to be loaded, and chooses Continue .
The document appears on the screen.
4. He or she changes the document.
5. He or she resubmits the document for approval by choosing Post Document in the toolbar for manual postings.
6. The rst approval agent is noti ed in the Business Workplace inbox.
To discard the document, the creator of the document does the following:
1. Starts the task for manual posting.
2. Chooses Cancel in the toolbar for manual posting.
The document requiring approval is deleted. This ends the work ow.
Listing of Work ows and Work ow Logs

Use
You use this function to list work ows for approving manually-entered documents, and to display the logs of those work ows.
Integration
The display of work ow logs is a function of Business Workplace .
Prerequisites
You have made your Customizing settings for work ows for approving documents .
One or more work ows for approving manually-entered documents have been triggered.
Features
List of Documents Requiring Approval
You can display a list of all documents that belong to a work ow approval process.
Approval Events for a Document
You can display the events of the approval process for each individual document.
Step No. Agent Event Date Changed At
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Step No. Agent Event Date Changed At
1 Employee A Submitted 10/26/2006 10:12:14 AM
2 Manager 1 Approved 10/26/2006 02:03:00 PM
3 Manager 2 Approved 10/26/2006 03:53:01 PM
4 Manager 3 Approved 10/27/2006 08:02:55 AM
5 Manager 4 Approved 10/27/2006 08:41:26 AM
Work ow Logs for Documents
You can display the work ow logfor individual documents.
For more information, see the following documentation for Business Workplace :
Work ow Log: Standard View
Work ow Log: Technical View
Graphical Work ow Log
Activities
Displaying a List of Documents Requiring Approval
To display a list of documents requiring approval, do the following:
1. Go to the process view of the Consolidation Workbench and choose Analysis List Data Held Documents and Sample
Documents .
2. In the selection screen for listing held documents and sample documents, enter the number " 5 " (for documents
requiring approval) in the Document Category eld in the Further Settings group box.
Make other selections, if applicable.
3. Choose Execute .
The system displays the list of documents requiring approval.
Displaying Approval Events for a Document
To display the events of the approval process for a single document, select the row of the desired document in the list of
documents requiring approval and choose Approval Events .
Displaying a Work ow Log for a Document
To display the work ow log for a single document, select the row of the desired document in the list of documents requiring
approval and choose Work ow Log .
Customizing for Work ows for Approving

Documents
Purpose
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You use this process to de ne your Customizing settings for work ows for approving manually-entered documents.
Prerequisites
You have completed the Customizing settings for manual postings.
Process Flow
A. Customizing Settings in the Data Basis and Consolidation Area
1. Go to the process view of the Consolidation Workbench and choose Data Model Data Basis . Select the relevant data
basis from the list.
2. If you have not done so already, go to the Data Streams tab page and con gure the data stream for held documents and
sample documents.
3. Go to the Data Stream Fields tab page and select the Work ow Work Item eld for the data stream for documents.
Recommendation
We recommend that you include the Work ow Work Item eld in the data stream for documents and – if applicable –
in the data stream for held documents and sample documents. This lets you track, afterwards, in which work ow an
approval agent has approved or rejected a particular document.
4. Save the data basis.
5. Go to the process view of the Consolidation Workbench and choose Data Model Consolidation Area . Select the relevant
consolidation area from the list.
6. Go to the Settings tab page and select the Work ow for Approving Documents indicator in the Consolidation Functions
Used group box.
7. To de ne a number range for documents requiring approval, go to the Settings tab page and choose the Number Range
button in the Technical Settings group box.
Note
The system uses a document number using the number range for documents requiring approval. This number range
is also used for assigning document numbers to held documents and sample documents.
Do not use this number range for other types of documents besides those mentioned here. Otherwise, the document
numbers in the document data stream will not be sequential.
8. Save the consolidation area.
B. De nition of Work ow Variants
You use a work ow variant to de ne the basic conditions of a work ow.
1. Go to the process view of the Consolidation Workbench and choose Consolidation Functions Manual Posting Work ow
Variant.
2. Create a work ow variant for manual posting in the navigation area in the lower left area of the screen.
The screen for customizing the work ow variant appears in the work area.
3. Either specify a new work owtemplatein the Work ow Template eld, or select an existing work ow template using input
help.
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For more information about the work ow templates delivered by SAP and which ones we recommend, see
Work ow for Approving Manually-Entered Documents .
4. Specify a validation method as a condition for starting the work ow (if desired).
If you specify a validation method, then the work ow is executed only if the validation issues one or more
messages (error, informational, warning, or others). Otherwise, the system posts the document without
triggering a work ow.
If you do not specify a validation method, the work ow is always started.
5. Specify the approval agents for each work ow variant step. You can also use single selections .
The order in which you arrange the approval agents in the table determines the order in which the approval process is
carried out. First all agents in the rst work ow variant step are alerted and need to approve the document. Only then
are all agents in the second work ow variant step alerted, and so on.
6. Save the work ow variant.
C. Assignment of Work ow Variants to a Document Type for Manual Posting
1. To be able to use a work ow variant in a task for manual postings (or in manual posting within a data collection task), you
need to assign the work ow variant to the respective document type for manual posting.
You can assign more than one work ow variant.
2. Go to the process view of the Consolidation Workbench and choose Consolidation Functions Manual Posting Document
Type.
3. Either select an existing document type and change it, or create a new document type.
4. Go to the Validation tab page and specify one or more work ow variants in the Work ow Variant group box.
5. Save the document type.
D. Settings in Business Workplace
In general, you do not need to make settings in Business Workplace .
The following settings, for example, are optional:
You can de ne substitutes for approval agents.
You can have the system forward noti cations about new work items in your e-mail system (for example, Microsoft
Exchange and Microsoft Outlook).
Result
When you manually post entries when executing a task for manual posting (or data collection), enter the document data and
choose Post Document in the toolbar for manual posting. This starts the work ow, which presents the document to the rst
approval agent in the form of a message in the inbox of Business Workplace .
Mass Reversal
Use
You use this function to reverse or invert many documents, which have been posted either manually or automatically.
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See also:
If you want to reverse individual documents, you can use Reversal of Manual Postings.
Integration
If you have activated the business function Financials, Group Closing, when the system reverses or inverts documents with the
mass reversal function, it checks whether you have assigned a work ow variant to the document type. If this is the case, the
system starts the work ow speci ed in the document type before the reversal document is posted.
Features
The system features two modes for reversing documents:
Reversal
Inversion
Reversal
Reversal mode reverses previously posted documents by posting a second document that posts the same set of characteristics
but with reversed debit/credit signs. The reversal does not produce a remaining net difference.
The reversal document posts in the same period in which the reversed document was posted.
Neither the reversed document nor the reversal document can be reversed again.
Inversion
Inversion mode undoes postings that were made in earlier posting periods. Thus, an inversion is not a true reversal because a
net difference remains in the original period (of the inverted document).
It is still possible to reverse a document that has been inverted. When an inverted document is reversed, the inverting
document is also reversed with the result that a remaining net difference no longer exists in both the period of the inverted
document and the period of the inverting document.
See also the example below.
Selection criteria for mass reversals
The system uses the following selection criteria to determine which documents are to be reversed or inverted:
Criterion Required/Optional
Organizational unit Optional
Version Required
Time period (starting year/period and ending year/period) Required
Item Optional
Subassignments Optional
Document type Optional
Posting level Optional
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Criterion Required/Optional
Document number Optional
Posting date and time Optional
Furthermore, for an inversion you can select whether to reverse the following documents:
Pairs of reversing and reversed documents
Reversal (reversing) documents
Reversed documents
You also select the scal year and period in which the mass reversal is to be posted. These are called:
Reversal year
Reversal period
List of Documents to Be Reversed or Inverted
After you specify the selection criteria and start the mass reversal, the system displays a list of documents that match your
criteria. You then select the individual documents to be reversed or inverted.
Activities
1. Call up the selection screen for mass reversal.
2. Specify the criteria for choosing the documents to be reversed or inverted.
3. Execute the function.
4. Two lists are displayed:
The Documents to Be Reversed tab page lists all documents that match your criteria and that can be reversed
(mode R) or inverted (mode I).
The Documents That Cannot Be Reversed tab page lists the documents that cannot be reversed or inverted.
5. In the list of documents to be reversed, select the individual documents to be reversed or inverted.
6. Choose Save to start the mass reversal.
7. On the Documents Already Processed tab page, the system displays another list of the documents actually reversed or
inverted.
8. If applicable, repeat steps 5 and 6.
Example
Reversal
1. Reversal of a reversed document and reversal of a reversal document
Neither is possible.
2. Reversal of a document that was neither reversed nor inverted
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Before the reversal:
Per. Document Reversal Reversed Inverting Inverted Value

Document Document Document Document
001 1 10.00
After the reversal:

001 1 2 10.00
001 2 1 10.00-
3. Reversal of a document that was inverted but not reversed
Before the reversal:

001 1 2 10.00
002 2 1 10.00-
After the reversal:

001 1 3 2 10.00
002 2 4 1 10.00-
001 3 1 4 10.00-
002 4 2 3 10.00
Both documents (number 1 and 2) are reversed. This is done even if you only select one of the two documents in the list of
documents to be reversed or inverted.
Thus, if the list only contains document number 1, both documents are reversed.
However, if the list only contains document number 2, this document can neither be reversed nor inverted.
Inversion
1. Inversion of a reversed document and inversion of a pair of documents consisting of a reversed document and a reversal
document
Neither is possible.
2. Inversion of an inverting or inverted document
This is not possible.
3. Inversion of a document that was neither reversed nor inverted
Before the inversion:
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001 1 10.00
After the inversion:

001 1 2 10.00
002 2 1 10.00-
Automatic Inversion Prior Periods

Use
The system uses automatic inversion prior periods for consolidation tasks that post totals data and create documents in
consolidation periods. In the current consolidation period, an automatic inversion for prior periods inverts documents that have
been posted by consolidation tasks in prior consolidation periods.
Integration
Automatic inversion prior periods is a part of task execution.
Prerequisites
The following conditions must exist before the system performs automatic inversion prior periods during the execution of a
consolidation task:
The task posts documents.
The task is based on totals data.
The indicator for automatic inversion prior periods is selected in the task’s document type.
Features
For cumulative-posting consolidation tasks, the system inverts those documents that have been posted by consolidation tasks
in previous consolidation periods for the current consolidation period. This takes place before the documents are posted for the
current consolidation period.
This has the following bene ts:
The amounts posted in a given period are always cumulative values. Thus, the system does not need to calculate delta amounts,
which are difficult to reconcile.
If the postings occur within one scal year (so that no balance carryforward is required), the consolidation task recalculates the
amounts without taking the task’s own changes to the transaction data into consideration. This is because the changes are
inverted.
If a transaction has an effect on net income and affects more than one scal year (which then requires balance carryforward),
the system automatically allocates the effects on net income between those of previous scal years and those in the current
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scal year.
The task execution makes sure that all documents created in earlier task runs are reversed in the same period.
If you have selected the corresponding indicator, task execution also makes sure that all documents created by task runs in the
prior consolidation period are inverted.
Activities
Maintain the document type that will be assigned to the automatic-posting task, and select the indicator for automatic
inversion prior periods .
If you have manual consolidation tasks, create a period initialization task to enable the system to perform automatic inversion
prior periods for these tasks.
The system automatically performs automatic inversion prior periods in consolidation periods at the beginning of the execution
of a consolidation task that posts documents. The system uses the following procedure:
It selects all line items concerned.
It reverses all documents that are neither reversed documents nor reversal documents. (Document pairs consisting of an
inverting document and an inverted document must be reversed in unison.)
If one or more inverted line items are reversed during this step, the system triggers task execution in the subsequent period.
You need to repeat the task execution to ensure your totals data becomes consistent.
The system proceeds as follows, depending on the settings in the document type:
It checks whether the inversion of the tasks has already been performed in the prior period (that is, whether the prior period
does not contain a line item that is inverting or inverted).
If the inversion in the prior period has not been performed, the system performs the inversion at this time. (The system can
invert only those line items that are not reversing, reversed, inverting, or inverted.)
Example
This example shows you how automatic inversion prior periods works step by step:
It uses a reclassi cation task for an asset item that is executed in each quarter. The value of the asset item increases in each
period by a monetary amount of 10.
The table below uses the following abbreviations :
o The original document
i The inverting document
r The reversal document
ri The reversal document for the inverting document
1. Initial Posting Run in Period 003
Period 003 006 009
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Period 003 006 009
Posting level 00, period value 10 10 10
Posting of consolidation task 30-(1o)
The reclassi cation task creates a new original document (1o) for the amount of 30-.
Period 003 006 009
Posting of consolidation task 30-(1o) 60-(2o)
Inversion of prior periods 30 (2i)
While posting in period 006, the old original document (1o) from the prior consolidation period 003 is discovered. This document
has not yet been inverted. Therefore, the document is inverted in period 006 by document 2i.
The accumulated value of 60 is reclassi ed by document 2o.
Period 003 006 009
Posting of consolidation task 30-(1o) 60-(2o) 90-(3o)
Inversion of prior periods 30 (2i) 60 (3i)
While posting in period 009, the documents 2o and 2i from the prior consolidation period are discovered. Document 2o has not
yet been inverted and, therefore, is inverted in period 009 by document 3i. Document 2i is ignored because it is an inverting
document.
The accumulated value of 90 is reclassi ed by document 3o.
4. Repetition Run in Period 006
Period 003 006 009
60-(4o)
Reversal 60 (4r) 60-(4ri)
In the repetition run in period 006, document 1o from the prior consolidation period 003 is discovered. This document has
already been inverted by document 2i. Therefore, the system continues to ignore documents 1o and 2i.
The old original document 2o is discovered and needs to be reversed. Therefore, the reversal document 4r is posted in period
006.
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The inverting document 3i also needs to be reversed – this is done by document 4ri.
The new original document 4o is created with an accumulated value of 60-.
5. Second Repetition Run in Period 006
Period 003 006 009
60-(4o)
60-(5o)
60 (5r)
In the second repetition run in period 006, document 1o from the prior consolidation period 003 is discovered. This document
has already been inverted by document 2i. Therefore, the system continues to ignore documents 1o and 2i.
The old original document 2o is discovered, but has already been reversed by document 4r. Therefore, the system ignores both
documents.
The old original document 4o is discovered and needs to be reversed. Therefore, the reversal document 5r is posted in period
006.
A new original document (5o) is created with an accumulated value of 60-.
6. Repetition Run in Period 009
Period 003 006 009
60-(4o) 90-(6o)
60-(5o)
60 (6i)
60 (5r) 90 (6r)
Documents 2o, 4o, 5o, 2i, 4r, and 5r are discovered in prior consolidation period 006. They are treated as follows:
Document 2o was reversed by document 4r. Therefore, both documents are no longer observed. The same applies to
documents 4o and 5r.
Document 2i is an inverting document. Therefore, it is ignored.
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Document 5o is an original document that was neither reversed nor inverted. Therefore, the document is inverted in period 009
by document 6i.
The old original document is discovered in period 009 and needs to be reversed. Therefore, the reversal document 6r is posted
in period 009.
A new original document (6o) is created in period 009 with a value of 90-.
See also
Reversal of Manual Documents
Mass Reversal
Period Initialization
Posting of Group Shares

Use
This function displays information about percentages of ownership:
For group shares
For the sum of direct shares
The log of the task Posting of Group Shares is an aid for clearly understanding investment relationships.
This function also lets you document the percentages of ownership recorded in the database.
Prerequisites
You have created a task Posting of Group Shares and assigned a consolidation frequency to the task (in the process view of the
workbench under Consolidation Functions Other Tasks Posting of Group Shares ).
The task requires nancial data about the investments and therefore needs to be inserted into the task sequence after the
related data collection task.
You have speci ed the statistical share items in Customizing for consolidation of investments in the section Selected Items .
Features
Task Mode
The task reads the cumulative (year-to-date) investment data. The system uses this data to calculate the investment structure
and the percentages of ownership. The percentages of ownership are listed in the task log.
When you execute the task in update mode, the system posts the shares in the totals database to the selected items (which
you have de ned in Customizing) in the quantity eld. These values are multiplied by 100000 to achieve greater accuracy. The
posted entry uses posting level 30, which means it includes group data. This uses hierarchical delta logic, which is also used in
consolidation of investments. The system also employs temporal delta logic, which posts only the difference (or delta) since the
task was posted in the preceding consolidation period.
The task status is managed at the consolidation group level.
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Analysis Mode
You also can use this function for purely informational purposes. In the process view of the workbench, you choose Analysis List
Data Group Shares . When you do this, the system only displays the log, but does not change the database.
Customizing is not necessary for analysis mode.
Comments for Documents and Additional

Financial Data
Use
You use this function to create additional information for documents and additional nancial data, to save that information in a
speci c context, and to access it on demand.
Integration
Comments are stored in SAP NetWeaver Business Intelligence (BI).
Prerequisites
Enabling the Creation of Comments
The following table shows you how the characteristics in BI need to be set up to allow for the creation of comments in the
consolidation system.
All characteristics denoted with an “X” must have an activated Characteristic is Document Attribute indicator in the
corresponding InfoObject in BI. (Also see the procedure below the table.)
Data Stream/ Documents Inventory Data Supplier Data Supplier Share Goodwill Noncurrent Asset Transfer
Assets
InfoObject
Document X
number
Fiscal year X X X X X X X
Fiscal year X X X X X X X
variant
Posting period X X X X X X X
Consolidation X
of
investments
activity
Activity X
number
Company X X X X X
Pro t center X X X X X
Item X
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Item type X
Partner X X X X
company
Partner pro t X X X X
center
Product group X X X
Investee unit – X
company
Investee unit – X
pro t center
Asset main X X
number
Asset X X
subnumber
Asset main X
number –
asset bought
Asset X
subnumber –
asset bought
To enable the creation of comments in the consolidation system, set up the document attribute in an info object:
Launch Data Warehousing Workbench
Choose Modeling InfoObjects .
Navigate to the characteristics for the consolidation system.
Double-click the InfoObject to start editing – for example, the InfoObject Document Number (with technical name OAC_DOCNR
).
Go to the General tab page and select the Characteristic is Doc. Attribute indicator.
Save and activate the InfoObject.
Now you can use the comment function in the consolidation workbench and the consolidation monitor.
Enabling the Calling of Comments for BI Reporting
To be able to call up comments in a BI report, you need to have deactivated the document attribute in the InfoProvider for
certain characteristics. This needs to be done for characteristics that (a) belong to multiple data streams, and (b) are not used
by the consolidation system as keys for comments in certain data streams (or more speci cally, in certain virtual InfoProviders).
The characteristic Item ( OCS_ITEM ) is not used as the key for comments in the document data stream. Hence, you need to
deactivate the document attribute for the Item characteristic in the virtual InfoProvider for documents.
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In this data stream, the same applies to the characteristics Company and Pro t Center .
You follow these steps to deactivate the document attribute for these kinds of characteristics (the Item characteristic is used
here as an example):
In the Consolidation Workbench , you call up the data basis for editing, and go to the Data Streams tab page.
To call up and edit the virtual InfoProvider for the document data stream, you double-click the InfoProvider.
The BI system displays the InfoObjects of the virtual InfoProvider.
To call up the Item ( OCS_ITEM ) characteristic, you choose Provider-speci c Attributes from the context menu of the
characteristic.
You switch to edit mode (if you are in display mode).
In the Provider-speci c Attributes of InfoObject dialog box, you select the document attribute Deactivated .
Con rm your entry.
Save and activate the virtual InfoProvider.
For characteristics that the consolidation system uses in a data stream as a key for comments, you must ensure in the
Provider-speci c Attributes of InfoObject that the Default from InfoObject option is activated for the document attribute .
The characteristic Item ( OCS_ITEM ) is not used as the key for comments in the data stream for documents. It is therefore
necessary to take the document attribute for the item characteristic from the item InfoObject in the InfoProvider for
documents.
Features
You can create new comments, or display and change existing comments, for documents and additional nancial data.
You can create multiple comments for individual documents or additional nancial data records.
You can enter comments on-line in the SAP Editor (in plain text format).
Furthermore, you can upload data les or create these on-line.The data les can have the following formats:
Plain text (.txt)
Microsoft PowerPoint (.ppt)
Microsoft Excel (.xls)
Microsoft Word (.doc)
The following functions are available when comment creation is activated:
Symbol Text Explanation
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Symbol Text Explanation
Create Comment Creates a new comment
Display Comment Displays a comment:
Plain-text comments are viewed on the

Comment tab page.
Comments in PowerPoint and other formats

are shown in their respective application.
Change Comment Changes a comment:
Plain-text comments are changed in the

text editor on the Comment tab page.
Comments in other formats are changed in

their respective application.
Import Comment You can select a le in a separate dialog

box.
Delete Comment Deletes a comment.
-- Display Attributes of Comment Comments have the following types of

attributes:
Generic attributes: title, size, type of

comment, last changed by, and so forth
Consolidation-related attributes for

documents: document number, scal year,
period, and so on
Consolidation-related attributes for

additional nancial data: activity number,
investee unit(s), scal year, period, and so
on
Comments are subject to locking: When a user edits a comment, other users can only display the comment.
The consolidation system displays all comments in a single list. The list shows the most important attributes for each comment
(for example, the title, size, and last changed by). To display, change, or delete an existing comment, select the line in the list
and choose the corresponding symbol.By double clicking on a line, you can open the comment or change it, depending on which
of the two actions you have already performed.
The comments you have stored can also be used in SEM-BPS or the BI system. For example, you can access comments from
within BI Reporting. (However, this is only bene cial when the reports use InfoObjects0AC_DOCNRand0CS_COINR.)
Activities
Comments for Documents
Creating a Comment for a Document
Before you can create a comment for a document, you need to call up that document.
For example, you can create such a comment when running a task for manual posting in the consolidation monitor:
Execute the task for manual posting in the consolidation monitor.
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Go to the Comment tab page and choose Create .
The Create/Import Comments dialog box appears.
Enter the title and type of comment (for example, Microsoft PowerPoint), and con rm your entry.
Proceed as follows, depending on which type of comment you specify:
To enter a plain-text comment on-line, choose the Text Comment type. You enter the text in the editor on the same tab page,
and you save the text.
To create a comment in one of Microsoft's proprietary formats Word, Excel, or PowerPoint, choose one of those comment types.
While in the Microsoft application, enter the comment and then choose the corresponding menu item in the le menu to close
the le and to return to manual posting.
Save the comment.
Importing a Comment
Execute the task for manual posting in the consolidation monitor.
Go to the Comment tab page and choose Import .
The Create/Import Comments dialog box appears.
Enter the title and type of comment (for example, Microsoft PowerPoint), and con rm your entry.
The Import Comment dialog box appears.
Choose which le is to be imported and con rm your selection.
Save the comment.
Calling Up a Comment from Within a BI Report (Query)
Queries for a Speci c Document Number ( BEx Web Analyzer)
You use the Query Designer to execute the query in the Web browser.
In the browser display of the Ad-Hoc Report , you specify the scal year and period as well as the document number as the
variables for the Ad-Hoc Analysis ; then you execute the query.
The BEx Ad-Hoc Analysis screen appears.
Go to the Data Analysis tab page and choose Comments
The BI session displays the comment in the Document Browser
If desired, change the comment and save it.
You also can call up a comment from a query in the BEx Analyzer (Microsoft Excel environment). You use the same procedure as
with the BEx Web Analyzer
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Queries Without a Speci c Document Number ( BEx Web Analyzer)
You use the Query Designer to execute the query in the Web browser.
In the browser display of the Ad-Hoc Report , you specify only the scal year and period as the variables for the Ad-Hoc Analysis
; then you execute the query.
The BEx Ad-Hoc Analysis screen appears. A list with the document numbers appears on the Data Analysis tab page.
To call up a comment for a speci c document number, right-click the document number and choose Goto → Documents for
Navigation Status from the context menu.
The BI session displays the comment in the Document Browser
If desired, change the comment and save it.
Comments for Additional Financial Data
To create or import comments for additional nancial data, proceed in the same manner as described above.
Consistency Check of Transaction Data

Use
The system performs speci c checks when creating transaction data to ensure that the data remains consistent.
Features
Transaction data is automatically checked for consistency whenever transaction data is created – both in manual posting and
automatic posting, and also in automatic data collection. The individual checks are discussed below.
Note
You also can use the function Breakdown Check and Correction of Transaction Data to manually trigger the checking of
already posted data records (for example, after changing breakdowns). The breakdown check performs the checks listed
below for the data streams that contain the characteristic with the role nancial statement item .
Checks for Each Data Record
The following checks are performed for each data record (these are discussed in detail later):
No. Consistency Check Totals Records and Additional Financial Data All Other Additional
Documents(*) That Contains Financial Data
Characteristic with Role
Item (Investments,
Equity, Inventory Data,
Supplier Data)(*)
1 Is master data contained X X X

in the data record?
2 For characteristics with X X X

activated validity
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check:Is master data
valid?
3 Do characteristic X X X
combinations exist
(consolidation unit,
partner unit, investor
unit, investee unit)?
4 When a validity check is X X X

activated for
characteristic
combinations:Are
characteristic
combinations valid?
5 Is the local currency key X X X

in data record the same
as in the consolidation
unit?
6 Does the posted entry X X X

contain a value for the
characteristic with the
role consolidation unit ?
7 Does the posted entry X X

contain a value for the
role nancial statement
item ?
8 Are the subassignments X X

of the breakdown type
compatible with the
settings for the
document type, posting
level, and data stream
type?
9 When posting to posting X

levels 02, 12, 22, or
30:Is the characteristic
with the role
consolidation group
being posted to?
When posting to other

posting levels:Is the
value for the
role consolidation
group initialized?
10 If the currency keys are X

the same:Are the values
in the currency elds
equal?
11 Speci c checks in X X
additional nancial data
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(*) Checks for totals records and documents, and for additional nancial data with the characteristic with the role nancial
statement item are performed by the breakdown check .
No. Explanation
1 Is master data contained in the data record?
The system checks if master data exists.
This check is independent of the data stream.
2 For characteristics with activated validity check: Is the master

data valid?
In the data basis on the Authorization/Validity Check tab page,

you determine whether and to what extent the system performs
validity checks. The following options are available for each
characteristic:
No check
Time-dependent check
Version-dependent check
Time- and version-dependent check
If you choose “no check” for all characteristics, no checks

are performed for the characteristics.
These checks are independent of the data stream.
3 Do characteristic combinations exist (consolidation unit,

partner unit, investor unit, investee unit)?
For example, if there are two characteristics with the role

consolidation unit , the system checks whether the data record
uses any permitted combinations.
This check is independent of the data stream.
4 If a validity check is activated for characteristic combinations:

Are the characteristic combinations valid?
In the data basis on the Authorization/Validity Check tab page,

you determine whether and to what extent the system performs
validity checks.
For characteristic combinations, the same options exist as for

“simple” characteristics:
No check
Time-dependent check
Version-dependent check
Time- and version-dependent check
This setting applies to all characteristic combinations.
For example, the system issues an error message if a value

exists for a characteristic combination, but not for the date
or version you speci ed.
These checks are independent of the data stream.
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No. Explanation
5 Is the local currency key in the data record the same as in the
consolidation unit?
The check is performed for all data streams that contain the
currency key.
6 Does the posted entry contain a value for the characteristic with
the role consolidation unit?
The consolidation unit eld must be lled.
7 Does the posted entry contain a value for the characteristic with
the role nancial statement item?
The item eld must be lled.
8 Are the subassignments of the breakdown type compatible with

the settings for the document type, posting level, and data
stream type?
For each data record, the system checks whether a subassignment

complies with the breakdown category. For example, the system
issues a message if the breakdown category requires a transaction
type, but the data record does not contain this transaction type.
If necessary, the system overrides the breakdown category settings

depending on the document type, posting level, and the data
stream type.
Examples:
If entries are posted with a document type with the use

consolidation of investments , then the investee unit must
always be speci ed.
A partner unit must always be speci ed when posting two-

sided elimination entries (posting level 20).
The additional nancial data for investments must always

contain the investee unit.
Breakdown checks automatically make the following

corrections:
If no breakdown is stipulated, but the data record contains

a breakdown, the system removes the breakdown and
issues an informational message.
If a nancial statement item has a breakdown but a default

value is stipulated, the system automatically writes the
default value to the data record.
For more information, see Breakdown Check and Correction

of Transaction data .
9 When posting to posting levels 02, 12, 22, or 30: Is the

characteristic with the role consolidation group being posted
to?
When posting to other posting levels: Is the value for the

characteristic with the role consolidation group initialized?
Note: The consolidation group is not a subassignment.
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No. Explanation
10 If the currency keys are the same: Are the values in the currency
elds equal?
This check is performed if the local currency is the same as the

group currency, or the same as the transaction currency.
11 Speci c checks in additional nancial data
Examples:
In additional nancial data for investments with activity

“reclassi cation”:In reclassi cations the system checks
that there is only one selling and one buying consolidation
unit.
When an elimination of interunit pro t/loss in transferred

inventory processes a supply chain, the system checks
that all supplier shares are positive.
If any errors are discovered in checks 1 through 9, the system always issues error messages. For check 10, the system issues an
informational message.
Checks for the Entire Document
In addition to the checks for each document line item, the document data stream includes the following checks with regards to
the document as a whole:
Does the document (excluding the statistical items) balance to zero?
Depending on the document type settings: Is the sum of the statistical items equal to zero?
Are the values on the selected items compatible (clearing item for balance sheet, clearing item for income statement,
deferred taxes)?
Capitalization and Valuation Allowances

Purpose
You use this component to uniformly perform capitalizations, valuation allowances, and divestitures for assets and liabilities in
the consolidation system.
You can record fair value differences (surpluses and de cits) in noncurrent assets to trigger appropriate postings in
consolidation of investments.
Note
To improve readability, the term asset stands for all assets and liabilities that are suitable for the functions described in this
section (except when used in concrete examples).
The term valuation allowance stands for depreciation, amortization, writedowns, and writeups.
Implementation Considerations
You use capitalization and valuation allowances:
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To post automatic standardizing entries for differences in valuations of nancial statements between the corporate
group and individual subsidiaries
To account for fair value differences in consolidation of investments
Integration
The Entity “Assets and Liabilities”
You can extend your data model with the new entity “assets and liabilities.” This provides the following functions:
You can maintain master data speci c to this new entity (by means of manual data entry or automatic data collection
methods such as exible upload).
You can enter additional nancial data for this entity. The additional nancial data is automatically adjusted in the period
initialization function.
You can extend the document database (journal entries) by this entity.
You can have the entity be posted when documents are posted manually.
Task Hierarchy and Task Sequence
Tasks for capitalization and valuation allowances (CVA) post with posting level 10 (standardizing entries) for each consolidation
unit and each asset.
The task hierarchy can have one or more tasks of this category. You may want to have multiple CVA tasks:
To exclude certain assets from consolidation of investments
To record deferred taxes for only a certain portion of the assets
In the task sequence, period initialization must precede capitalization and valuation allowances. If the assets are carried in local
currency only, a currency translation task must be performed after the capitalization and valuation allowances task.
 Example
Example of a task sequence:
Period initialization
Manual posting
Validation
For information about customizing CVA tasks, see Customizing for Capitalization and Valuation Allowances .
Relationship with Data Collection
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You use manual data entry for assets and liabilities or automatic methods of data collection to record additional nancial data
and also master data required for capitalization and valuation allowances (in particular, fair value differences).
Relationship with Period Initialization
A period initialization task is required to automatically adjust the additional nancial data for the new consolidation period (for
example, with a periodic depreciation charge).
Features
In the capitalization and valuation allowances task, the automatic posting of documents is controlled by the master data and
the additional nancial data. Documents are posted for the following activities:
Capitalization of assets/liabilities with an option to record deferred taxes in the balance sheet
Valuation allowances (writeups and depreciation) of assets/liabilities
Retirements of assets/liabilities
Asset accounting data is included in each individual set of nancial statements. When this occurs, the capitalization and
valuation allowances task posts only the difference in valuations of nancial statements between the corporate group and the
individual subsidiary. (You record the additional nancial data needed for this using manual data entry or automatic data
collection methods).
The period initialization task calculates the depreciation charges for the difference. These charges are then posted in
capitalization and valuation allowances.
You can have capitalization and valuation allowances post entries in local currency only or in both local and group currencies.
Thus, you have two alternatives:
You run capitalization and valuation allowances of assets and liabilities in both local currency and group currency right
from the start.
You carry the assets and liabilities in local currency only and then run currency translation to translate the amounts into
group currency.
Fair Value Surpluses and Fair Value De cits
Fair value surpluses and fair value de cits (also known as hidden reserves and hidden contingencies) is a typical application for
assets and liabilities. You can use the CVA task to record such fair value differences. A capitalization posts the fair value
differences directly to the original value item, and posts the offsetting entry to the appropriation item ( Appropriations for
Assets ).
The parameters used for depreciation only apply to fair value differences (not to the total fair values including the differences).
These parameters conform to the group valuation and can be entered in the master data.
Consolidation of investments uses these postings when calculating goodwill and minority interests in net income/retained
earnings.
Fair value adjustments reduce the amount of goodwill when goodwill is calculated in rst consolidation: the higher the
fair value difference, the lower goodwill becomes.
Valuation allowances of fair value differences become part of subsequent consolidations.
Constraints
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Capitalization and valuation allowances of assets and liabilities does not include currency translation. How you arrive at values
in group currency depends on the settings in the master data of the asset.
See Dependencies of Customizing on Which Currencies Are Carried .
Example
See Examples of the Posting Logic .
Posting Logic in Capitalization and Valuation

Allowances
Use
The posting logic determines how assets (or liabilities) are capitalized, depreciated, and retired.
Prerequisites
You have completed your Customizing for Capitalization and Valuation Allowances .
Features
Capitalization
The system capitalizes only the differential amount between the book value in the individual nancial data and the group value
(as per the accounting rules adopted by the group). When you record fair value differences, the group value equals the fair value
whereas the surplus (or de cit) to be posted represents the hidden reserve (contingency) of the asset.
The fair value difference is posted to the original value item of the asset. The offsetting entry is posted to the appropriations
item for assets. You specify these items in Customizing.
The task reads the value to be capitalized from the additional nancial data.
The task reads all additional nancial data that meets these conditions:
The characteristics xed in the consolidation area, the currency key, and the special version for additional nancial data
all match the settings in the execution parameters.
The consolidation unit speci ed in the additional nancial data must be among the set of consolidation units for which
the task is executed.
The period and scal year must fall within the current consolidation interval.
Valuation Allowances
Period initialization
The period initialization task calculates (ordinary) depreciation charges for all capitalized assets. The depreciation methods
available are straight-line over the asset’s entire useful life, straight-line over the asset’s remaining useful life, declining-
balance, or no depreciation at all. The task also calculates the ending book value.
The depreciation method is determined in the master data.
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The depreciation charges are based on the original value of the asset (acquisition/production cost).
The Retirement at Beginning of Period setting is taken into account.
These values are then posted in the capitalization and valuation allowances task.
Which items are posted is determined in the master data.
The task processes all additional nancial data with a period and scal year that corresponds to the current consolidation
interval.
The amount for any impairment loss, writeoff, or writeup is taken from the additional nancial data.
Retirement
The task reads the values for retirements from the additional nancial data and posts these retirements and any adjustments
needed for depreciations posted in an earlier period. The task also takes the Retirement at Beginning of Period setting into
account. See the last example listed in Examples of the Posting Logic .
The task processes all additional nancial data with a period and scal year that corresponds to the current consolidation
interval.
Deferred Taxes
The system is able to post deferred taxes. To do this, the indicator for posting deferred taxes in the document type needs to be
selected.
The system posts deferred taxes in the following activities:
Capitalization (here the respective indicator in the master data for assets and liabilities also needs to be selected)
Valuation allowances
Retirements
For more information about the indicators, see Customizing for Capitalization and Valuation Allowances .
See also the examples that compare postings with and without deferred taxes in Examples of the Posting Logic .
Restrictions for Copying Documents with Deferred Taxes
If you have not intended any speci c balance sheet items for posting deferred taxes in the balance sheet, the following
restrictions apply:
The copy function does not allow for unrestricted copying of posting documents that include deferred tax postings due to
capitalization of an asset.
To copy such documents, you need to select the Suppress Posting of Deferred Taxes indicator in the mapping settings. (This
indicator is part of the document data stream.) When this is done, the system posts the document in the target with the
assumption that the document type does not support posting of deferred taxes. As a result, the system transfers the values
posted in the source to the deferred tax items in the target with the same amounts. However, if a change in the tax rate occurs,
it is not possible to adjust the amount of deferred tax.
If however, the deferred taxes in the balance sheet are posted to speci c items, this restriction does not apply.
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For more information about speci c account assignments for deferred taxes, see Deferred Taxes .
The difference in the posting logic when using or not using speci c account assignments for deferred taxes is highlighted by
example 3 in Examples of the Posting Logic .
Examples of the Posting Logic

Initial Data
All of the following examples are based on this initial scenario:
Asset A has a useful life of 10 years. There is a fair value surplus of 100 currency units. The capitalization and valuation
allowances task is run once per year.At the end of year 01, a partial divestiture of 50 occurs. The depreciation (devaluation)
must be corrected accordingly.
Example 1: Asset in Local Currency (Without Deferred Taxes)

In the master data, you specify the depreciation parameters (straight-line depreciation, no scrap value) and you specify the
posting item.
In the additional nancial data, you specify the fair value surplus and the partial retirement. (User entries are shown in boldface
below.)
Now the system calculates the beginning book value, the depreciation, the reduction in the valuation allowance, and the ending
book value.
Acquired (LC) Val. Allow. (LC) Retired (LC)
Capitalization (orig. value) 100 -50
Depreciation (bal. sheet) -10 5
Appropriations for asset -100 50
Amortization and Impairment 10 -5

Losses (income statement)
Clearing Item for the Balance 10 -5

Sheet
Clearing Item for the Income -10 5

Statement
Key Figure Location of Values
Original value 100 Entered by user
Beginning book value 100 Calculated by system
Ordinary depreciation 10 Calculated by system
Divestiture 50 Entered by user
Retirement of valuation allowance 5 Calculated by system
Ending book value 45 Calculated by system
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Example 2: Asset in Local Currency and Group Currency (Without Deferred Taxes)
When an asset is carried in local and group currencies, you enter the original value in both currencies:
Acq (LC) Acq (GC) VA (LC) VA (GC) Ret (LC) Ret (GC)
Capitalization 100 200 -50 -100

(orig. value)
Depreciation -10 -20 5 10

(bal. sheet)
Appropriations -100 -200 50 100

for asset
Amortization and 10 20 -5 -10

Impairment
Losses (income
statement)
Clearing Item for 10 20 -5 -10

the Balance
Sheet
Clearing Item for -10 -20 5 10

the Income
Statement
Explanations:
OV = original value (acquisition/production cost)
LC = local currency; GC = group currency
Acq = acquisition; VA = valuation allowance; Ret = retirement
Key Figure (LC) Key Figure (GC) Location of Values
Original value 100 200 Entered by user
Beginning book value 100 200 Calculated by system
Ordinary depreciation 10 20 Calculated by system
Divestiture 50 100 Local currency entered by user;

group currency calculated by
system
Retirement of valuation 5 10 Calculated by system

allowance
Ending book value 45 90 Calculated by system
Example 3: Asset in Local Currency Taking Deferred Taxes into Account

You want the system to post 40% in deferred taxes during capitalization and valuation allowances:
In the document type, you have selected the option to post deferred taxes and speci ed the percentage rate.
In the additional nancial data, you have selected the deferred taxes indicator.
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For posting deferred taxes, we will examine the following cases:
Case 3a) Deferred taxes in the balance sheet must not be posted to speci c balance sheet items.
Case 3) Deferred taxes in the balance sheet must be posted to speci c balance sheet items.
3a) No Speci c Balance Sheet Items for Deferred Taxes
Acquired (LC) Val. Allow. (LC) Retired (LC) Automatic Line Item
Capitalization (orig. 100 -50

value)
Amortization and 10 -5
Impairment Losses
(income statement)
Appropriations for asset 40 -20 2
Deferred taxes (B/S) -40 20 2
Deferred taxes (B/S) 4 -2 2
Deferred taxes (I/S) -4 2 2
Clearing Item for the 6 -3 1

Balance Sheet
Clearing Item for the -6 3 1

Income Statement
3a) With Speci c Balance Sheet Items for Deferred Taxes

The system posts the deferred taxes in the balance sheet to the deferred taxes items that are speci c for the triggering
balance sheet items. If a speci c item for deferred taxes is not assigned to a triggering balance sheet item, then the system will
use the general item for deferred taxes (balance sheet).
Acquired (LC) Val. Allow. (LC) Retired (LC) Automatic Line Item
Capitalization (orig. 100 -50

value)
Amortization and 10 -5
Impairment Losses
(income statement)
Deferred taxes (B/S) 40 -20 2
Deferred taxes (B/S)– -40 20 2

Capitalization (orig.
value)
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Deferred taxes (B/S) – 4 -2 2
Depreciation
Deferred taxes (I/S) -4 2 2
Clearing Item for the 6 -3 1

Balance Sheet
Clearing Item for the -6 3 1

Income Statement
Example 4: Asset Retirement at the Beginning or End of the consolidation period

(Without Deferred Taxes)
A partial retirement valued at 50 currency units takes place in period 03.The system posts the following depending on whether
you have selected Retirement at Beginning of Period
Val. Allow.(LC) Retired (LC) Val. Allow.(LC) Retired (LC)
Capitalization -50 -50
Depreciation (bal. sheet) -10 15 -5 10
Appropriations for asset 50 50
Amortization and 10 -15 5 -10

Impairment Losses
(income statement)
Clearing Item for the 10 -15 5 -10

Balance Sheet
Clearing Item for the -10 15 -5 10

Income Statement
Retirement at End of Period 03 Retirement at Beg. of

Period 03
Key Fig. (LC) Calculation Key Fig. (LC) Calculation
Original value 100 100
Beginning book value 80 80
OrdinaryDepr. 10 =OV/10 5 =(OV-Ret)/10
Divestiture 50 50
Reduction in val. 15 =Ret/OV*(OV- 10 =Ret/OV*(OV-BegBV)

allowance BegBV+Depr) =50/100* =50/100*(100-80)
(100-80+10)
Ending book value 35 =BegBV-Depr- 35 =BegBV-Depr-

Ret+RedVA =80-10- Ret+RedVA =80-5-50+10
50+15
Explanations:
(also see above)
BegBV = beginning book value
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RedVA = reduction in valuation allowance
Master Data and Additional Financial Data

De nition
Information the system requires to be able to execute capitalization and valuation allowances for assets and liabilities (that is,
in addition to the totals database, which contains balance sheet, income statement, and similar data).
Structure
Master Data
The master data is comprised of:
Record Deferred Taxes During Capitalization indicator
Carry Asset in Local Currency indicator
Year and period of the start of depreciation
Year and period of capitalization
Life of depreciation in years and periods
Method of depreciation (straight-line over entire useful life, straight-line over remaining useful life, declining-balance, or
no depreciation at all)
Percentage rate for the declining-balance method of depreciation
Depreciation base value (full original value or original value less scrap value)
Scrap value (as an amount or percentage rate)
You either record the master data of an asset in the data collection task along with the additional nancial data, or you enter
the master data in the consolidation workbench under the respective type of asset/liability.
Additional Financial Data
The additional nancial data is comprised of:
Original value (acquisition/production cost)
Beginning book value
Ordinary depreciation
Extraordinary depreciation (or writedown)
Writeup
(Partial) retirement
Reduction in valuation allowance
Ending book value
To record additional nancial data, you use either manual data entry for assets and liabilities or automatic methods of data
collection. To start the process, you execute the respective data collection task in the consolidation monitor.
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Customizing for Capitalization and Valuation

Allowances
Purpose
You use this process to de ne your Customizing settings for capitalization and valuation allowances .
Prerequisites
You have de ned the Customizing settings for the data basis .
You have speci ed which InfoObject is to be used for assets and liabilities at Assets/Liabilities on the Data Model tab page. (For
more information, see Data Model: Assets/Liabilities as well as the corresponding eld helps.)
You have set up the data stream Assets/Liabilities on the Data Streams tab page.
If applicable, you have selected additional subassignments and custom elds on the Data Stream Fields tab page.
You employ at least one period initialization task that will adjust the additional nancial data for each new period.
You have de ned the Customizing settings for the preceding tasks - the data collection tasks in particular.
Process Flow
You rst decide how you want to classify your assets and liabilities into different types. Then you create one or more values
(such as “Fair Value Surplus in Building XYZ”) for each type of asset/liability. You also create the applicable document type(s)
and task(s).
If applicable, you de ne your Customizing settings for a subsequent currency translation task.
Types of Assets/Liabilities (ALTYPE)
You use the Type of Assets/Liabilities attribute to classify your assets and liabilities into types such as buildings, plant and
equipment, or vehicles.
For each type of asset/liability, you specify which items are to be posted.You do this in the process view of the consolidation
workbench at Consolidation Functions → Capitalization and Valuation Allowances → Type of Assets/Liabilities
To create a type of asset/liability (for example, “Plant and Equipment”), go to Capitalization and Valuation Allowances and
chooseType of Assets/Liabilities ; then, in the bottom left area of the workbench screen, call up the context menu and choose
Create
Assign a two-digit numeric key and enter a name for the type of asset/liability (for example, “Plant and Equipment”).
Specify the debit/credit sign (“+” for assets, “–“ for liabilities) on the General tab page.
On the Items for Original Cost tab page, you can specify the following items and transaction types (if applicable):
Acquisitions and retirements
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Transfers
Acquisitions and retirements for appropriations for assets
You also can de ne the posting items for acquisitions and retirements, and also transfers, in the master record of the asset
itself.(Settings made there override the settings made for the type of asset/liability. )
On the Items for Valuation Allowances tab page, you can specify the following items and transaction types (if applicable):
Acquisitions and retirements for valuation allowances (balance sheet items)
Transfers for valuation allowances (balance sheet items)
Depreciation and writeups (income statement items)
You also can de ne these items in the master record of the asset itself.(Settings made there override the settings made for the
type of asset/liability. )
InfoObject for Assets/Liabilities (Using Fair Value Differences as an Example)
Assume you have de ned the InfoObject for assets/liabilities in the data basis – for example, for fair value differences. This
InfoObject is compounded with the InfoObject (or InfoObjects) for consolidation unit(s) and, possibly, with another InfoObject
(for example, “Fair Value Difference Main Number”). These values are listed in a tree structure in the bottom left screen area of
the workbench.
You perform these steps to create a new value for a speci c fair value surplus or fair value de cit:
Choose the consolidation unit for a given type of asset/liability (and the fair value difference main number, if applicable), call up
the context menu, and choose Create
Assign a name to the fair value difference.
The General tab page displays the type of assets/liabilities.
Determine whether you want to post deferred taxes during the capitalization process.
The following table illustrates which indicators to select if you want to post deferred taxes during capitalization and valuation
allowances:
Customizing Settings for Posting Deferred Taxes
To Post Deferred Taxes Make This Setting in the Document Type Make This Setting in the Master Data of
the Asset/Liability
In capitalizations (balance sheet) and in Set the indicator Set the indicator
valuation allowances (income statement)
and retirements
In valuation allowances and retirements only Set the indicator Do not set the indicator
In capitalizations only: this is NOT (You would not set the indicator) (You would set the indicator)
possible; such customizing settings will
produce an error message
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To Post Deferred Taxes Make This Setting in the Document Type Make This Setting in the Master Data of
the Asset/Liability
Neither in capitalizations, nor in valuation Do not set the indicator Do not set the indicator
allowances and retirements
Determine whether fair value differences should be carried in local currency only.
Specify the parameters for valuation allowances (start of depreciation, useful life, method of depreciation, scrap value, and so
on).
In the system, fair value difference entries have no technical relationship with the depreciation parameters of their
corresponding assets.
On the Items for Original Cost tab page, specify the posting items for the capitalization.(See also the previous section
concerning the customizing of the type of assets/liabilities .)
On the Items for Valuation Allowances tab page, specify the posting items for the valuation allowances.(See also the previous
section concerning the customizing of the type of assets/liabilities .)
Document Type
You can create one or more document types for capitalizations and valuation allowances.
Such a document type must have the following properties:
Posting level 10 (adjustments to reported nancial data)
Error if balance not equal to zero
Application: Other
Automatic posting
No automatic inversion
Local currency/group currency:
Post in local currency if you want to carry assets/liabilities in local currency only. In this case, the task must be followed a
currency translation task (see below).
Post in group currency if you want to carry historical values in group currency, in addition to the values in local currency.
Recording of deferred taxes during valuation allowances, if applicable (see the table above)
Save the document type.
Task
You can create one or more tasks for capitalizations and valuation allowances. You may want to create multiple tasks in the
following cases:
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You have multiple types of assets/liabilities and you do not want some of these types to be used in consolidation of
investments. In the calculation base for consolidation of investments, you need to choose those document types for
capitalization and valuation allowances that should be included in consolidation of investments.
You want certain tasks to post deferred taxes, and other tasks to not post deferred taxes.
Create a task.(You can do this the process view of the consolidation workbench under Consolidation Functions → Capitalization
and Valuation Allowances → Task )
Assign a name to the task.
Specify the consolidation frequency for the task.
Assign one or two document types to the task, depending on the currencies you will carry the assets and liabilities in:
If all assets and liabilities will be carried in local currency only, choose a document type that translates foreign currencies.
If the assets and liabilities will be carried in local currency and group currency, choose a document type that does not translate
foreign currencies.
See also the respective eld help texts.
If applicable, restrict the task to certain types of assets/liabilities.
If desired, specify your preferences for the task log .
Save the task.
Currency Translation
If you carry the assets and liabilities in local currency only, you need to subsequently run currency translation to translate the
amounts into group currency.
Result
You have completed customizing for capitalization and valuation allowances.
To display the customizing settings, go to the process view of the consolidation workbench and choose Consolidation Functions
→ Capitalization and Valuation Allowances →List Settings
Once you have completed your data collections (master data and additional nancial data) for capitalization and valuation
allowances, you can execute the task (or tasks) for capitalization and valuation allowances in the consolidation monitor. The
results of the task are displayed in a log.
Dependencies of Customizing on Which

Currencies Are Carried
Capitalization and valuation allowances of assets and liabilities does not include currency translation. How you arrive at values
in group currency depends on the settings in the master data of the asset (or liability).
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Asset Not in Local Currency

If an asset is not carried in local currency (which means that the asset is carried in group currency), then you already record the
additional nancial data for this asset in both the local currency and the group currency.
In this case, the task for capitalization and valuation allowances (CVA) also posts entries in both currencies. The relationship
between the values in local and group currencies does not change: The historical relationship of the recorded original values is
retained for all key gures.
You assign two document types to the task in task customizing for capitalization and valuation allowances. The CVA task posts
the values in group currency. Therefore, the subsequent currency translation task does not process the non-local currency-
carrying document type used for posting assets.
Asset in Local Currency

If an asset is carried in local currency, the additional nancial data for that asset contains values in local currency only. In this
case, the task for capitalization and valuation allowances (CVA) posts values only in local currency, as well. A subsequent
currency translation task determines the values in group currency.
The appropriations for assets item (which is used for the offsetting entries in the capitalization of assets) typically ows into the
rst consolidationactivity in consolidation of investments. Currency translation of asset appropriations related to rst
consolidation can cause delays in the delivery of rst consolidation data. To avoid problems related to this, we recommend that
you process these asset appropriations in a separate method step in currency translation.
This method step should not modify the target key gure of the asset appropriations related to rst consolidation. Instead, it
should post the translation difference to a different transaction type.
Then, the asset appropriations with the transaction type for posting the difference should trigger an increase in capitalization
in consolidation of investments so that the effects of currency translation on the asset appropriations cause goodwill to be
adjusted.
Currency Translation
Purpose
You can use this function to translate monetary amounts into a different currency.
Notably, you can translate the nancial data reported by consolidation units into the group currency of the consolidation group.
The consolidation system typically collects the nancial data reported by consolidation units in local currency. You need to
translate this data into group currency before you can create consolidated nancial statements. Thus, you use this function if
the local currency of one or more consolidation units differs from the group currency.
Furthermore, this function offers the following features:
You can carry out reference translations and you can record translation differences.
On the one hand, this makes currency-related impacts transparent. And on the other hand, you can ensure the
accounting consistency of the translated data (for example, the matching of retained earnings in the balance sheet and
annual net income in the income statement).
You can use different currency translation keys (for example, periodic and cumulative), or you can refrain from entering
translation exceptions if individual data records are already in the target currency.
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You can group together the accounting objects to be translated (for example, FS items) as selections in various ways, for
example:
where a selection represents exactly one combination of currency translation key and exchange rate type
where for each selection you specify exactly one speci c differential accounting object for the translation
difference
where the selections represent steps, which the system executes consecutively.
Currency translation requires an account-based data model (that is, a chart of accounts).
Integration
You can implement this function as part of the components SEM-BCS as well as SEM-BPS.
As an extension of currency translation, you should use rounding to correct rounding errors that can occur during currency
translation.
See also:
Local Currency and Group Currency
Fiscal Year Variant of a Consolidation Unit
Translation to a Target Currency

Use
You can use this function to translate the data records from a source key gure (such as the local currency) to a target key
gure (such as the group currency).
Features
Translation from Source Key Figure to Target Key Figure
You can individually specify a source key gure for each selection, or a common one for the method layout. The target key gure
is taken from the permanent parameters when the task is executed.
Use of Exchange Rate Types
You may want to use different exchange rate types depending on which group of accounting objects you want to translate. For
example, you may want to translate long-term assets at historical exchange rates, inventory at current rates, and income
statement items at average rates.
You de ne the exchange rate types in the SAP Implementation Guide at General Settings Currencies Check Exchange Rate
Types and Enter Exchange Rates.
Existence Check for Exchange Rates
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If you have activated the business function Financials, Group Close, Restatement Monitor, you can set up an existence check for
exchange rates. When currency translation tasks are executed, the system then checks whether the exchange rate table for the
exchange rate type and the currency pair contains an exchange rate for the period in which you are performing the currency
translation. If this is not the case, the system writes an information message to the task log for the currency translation.
The Customizing settings for Existence Check for Exchange Rate are now available in the settings for the currency translation.
Here you specify the exchange rate types for which the system is to run the existence check for exchange rates when currency
translation tasks are executed.
If you enter a missing exchange rate in the exchange rate table based on the information message indicated above, you then
need to restart the consolidation workbench or the consolidation monitor before you can execute the currency translation task
again. The system only takes into account the new exchange rate once the transaction has been exited and called again.
Use of Currency Translation Keys
You may want to use different currency translation keys depending on which group of accounting objects you want to translate.
For example, you may want to translate cumulative balances for stockholders' equity, but periodic balances for retained
earnings.
Currency translation supports the following currency translation keys:
Criterion/ Translation Timeframe Translation Rule Exchange Rate Period Used
Currency Translation Key
Cumulative Cumulative translation multiplied... ... by the exchange rate of the

current period
Periodic Periodic translation multiplied... ... by the exchange rate of the

current period
Periodic, average rate for Periodic translation see Translation Rule column
if the value increases:
reductions
multiplied by the
current rate
if the value decreases:

multiplied by the
average rate for the
prior periods of the
scal year
No modi cation of target key If values were recorded in the target currency:
gure
the system does not modify the values
but the system performs a reference translation and records a translation difference
Periodic or cumulative translation
Periodic translation uses data that belongs to the current period. By contrast, cumulative translation uses data that belongs to
the entire scal year.
. Periodic Cumulative
Period Value in LC Total Value in Exchange Value in GC Total Value in Value in GC Total Value in
LC Rate GC GC
001 100 (100) 2,0 200 (200) 200 (200)

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002 50 (150) 2,2 110 (310) 330-200 =130 (330)
LC = local currency; GC = group currency
Average Exchange Rate when Value Decreases
In the event that values decrease, you can specify that the system is to translate the period value using the average rate, which
is based on the prior periods of the scal year.
This example uses periodic translation.
Period Value in LC Value in GC Exchange Rate
001 1.000 1.500 1,5
002 1.000 2.000 2,0
003 1.000- 1.750- 1,75
The system calculates the average rate for period 3 as follows:
(1.500 + 2.000) / (1.000 + 1.000) = 1,75
Selections for Currency Translation

De nition
Group of accounting objects to which exactly one unique combination of currency translation key and exchange rate type is
assigned.
Use
You may want to use different exchange rate types and currency translation keys depending on which group of accounting
objects (for example, FS items) you want to translate. In a selection, you can assign exactly one combination of exchange rate
type and currency translation key to a group of accounting objects. Use the single selection for a selection. This means that you
can de ne the selection, for example, as a single value or as a ranges of values (if desired, including multiple sub-ranges).
Selection Item E/R Type, Crcy Transl. Key
Investments Range 170000-170399

C/T key: cumulative
E/R type : historical

rate
Stockholders’ equity Range 250000-250899, 290300-

C/T key: cumulative
290700
E/R type : current rate
Furthermore, for each selection you can choose a differential accounting object to be posted with currency translation
differences.
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Calculation and Recording of Currency

Translation Differences
Use
To make currency-related effects visible and to ensure the accounting consistency of the translated data (for example, the
matching of net income in the balance sheet and income statement), perform reference translations and record translation
differences in differential assignments.
Features
Speci c Translation and Reference Translation
For the speci c translation, you determine the exchange rate type and the currency translation key for each selection.
The system performs the reference translation in parallel to the speci c translation. The system performs the reference
translation globally for all account assignments (irrespective of the selections) with a xed exchange rate type (for example,
current rate) and the currency translation key "cumulative".
Recording of Currency Translation Differences
The application of different currency translation keys and exchange rate types for the selections results in currency translation
differences (abbreviated: translation differences). For conversion of individual nancial statements, you can distinguish between
translation differences on the balance sheet and translation differences in the income statement (I/S):
Translation differences on the balance sheet are, for example, a result of using historic exchange rates to translate the
values for investments and equity capital, and the current rate to translate the other balance sheet items.
Translation differences in the income statement are, for example, a result of (when mapping the appropriation of
retained earnings in the I/S) using an average exchange rate to translate the income and expenses, and the current
rate to translate the values for the appropriation of retained earnings.
Since it is not usually possible to determine which items caused the translation differences, in addition to the speci c
translation, a reference exchange rates is used to translate all selections to the target currency. The system uses the reference
values to determine the translation differences. It posts them to the differential assignments. The recording of translation
differences means that the nancial statements in the target currency are consistent again.
The system calculates the translation differences as follows:
1. Reference translation of all selections with xed currency translation key and exchange rate type
2. Translation of selections according to your entries ( xed currency translation key and exchange rate type per selection)
3. Calculation of translation differences per selection
4. Posting of target currency values
5. Posting of translation difference to the differential assignment per selection
This example of a selection shows the reference translation and the calculation of currency translation differences (CTD).
The following conditions apply to the translation:

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Speci c translation: periodic, at average exchange rate
Reference translation: cumulative, at current rate
Period Value in Total: Average Value in Current Total: Value in Value in CTD
LC Value in Rate GC Spec. Rate GC Ref. Tr. GC Ref. Tr.
LC Tr.
001 100 (100) 1.6 160 1.5 (100*1.5=150) 150 10
002 100 (200) 1.7 170 2.0 (200*2.0=400) 400-150= 80-

250
003 100 (300) 2.0 200 1.8 (300*1.8=540) 540-400= 60

140
Temporal Translation Differences

Use
In your consolidated nancial statements you may want to determine how exchange rate uctuations have an effect on the FS
item values in group currency. You may like to display these effects separately.
A change in the group currency value, which occurs exclusively through a change in the exchange rate, is called temporal
translation difference. On the other hand the change in the group currency value, which occurs through a change in the local
currency value, is called transaction difference.
 Example
An example for the requirement to display temporal translation differences is the asset history sheet in group currency. In an
asset history sheet, you present the changes of the asset values from the opening balance to the closing balance. At the
scal year change, the closing balance of the old year is transferred to the opening balance of the new year. If during this
change, the exchange rate (current exchange rate) changes, then the opening balance in the new year (calculated with the
new exchange rate) does not agree with the closing balance of the old year (calculated with the old exchange rate). In this
case it useful to display this temporal translation difference.
The temporal translation differences in an asset history sheet can be displayed in the subassignments of the FS items of the
transferred assets. For FS items where this procedure is not possible (no breakdown by subassignments), currency translation
offers a separate disclosure of temporal translation differences in the totals records.
Prerequisites
You must use the characteristic translation indicator in the consolidation area.
Recording temporal translation differences is only feasible when doing cumulative translations.
Features
Recording Temporal Translation Differences in the Totals Records
In the Customizing of currency translation, in fact in the de nition of translation entries, you can set the indicator temporal
translation difference, The indicator has the following effect:
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The system calculates temporal translation differences between the periods, within a scal year
The system displays the temporal translation differences under a translation indicator and generates separate totals
records.
Transl. ind. Period value in local currency Period value in group currency
0 LC value of transaction Reference value of transaction
1 Value 0 Delta between speci c value and

reference value of the transaction
2 Value 0 Delta between old reference value and

new reference value and for the prior
period values
Therefore: the temporal translation

difference on the basis of the change in
the reference exchange rate
3 Value 0 Change of the delta between speci c

value and reference value – that is, for
the prior period values
Therefore: the temporal translation

difference for the delta between speci c
value and reference value
This results in the following values:
0 + 1 + 2 + 3: speci c value
0 + 2: reference value
1 + 3: currency translation difference
2 + 3: temporal translation difference
The separated display of the temporal translation differences is reset for the balance carried forward, that means
the totals records with translation indicator 2 go into the totals records with translation indicator 0.
the totals records with translation indicator 3 go into the totals records with translation indicator 1.
Example
Example 1: Translation at the reference exchange indicator, thus incurring no currency translation differences
Scenario: The reference exchange rate changes from 1.5 (period 000) to 1.6 (period 012)
Item Transl. ind. Period: 000 Period: 012 Period: 012
Ref. exchange rate: 1.5 Ref. exchange Cumulative

rate: 1.6
LC GC LC GC LC GC
123456 0 1,000 1,500 100 160 1,100 1,660
123456 2 0 0 0 100 0 100
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Note:
The change of the reference exchange rate between period 000 and period 012, results in the temporal translation difference
of 100 (1000 LC x .1 GC/LC) for the value 1,000 from period 000.
The system calculates the difference as follows:
Reference value cumulative to period 012 1,760
- Reference value cumulative to prior period 1,500
- Reference value of period 012 160
= Temporal translation difference at the prior 100

period
Item Transl. ind. Period: 000 Period ...
Ref. exchange rate: 1.6 Ref. exchange rate

...
LC GC LC GC
123456 0 1,100 1,760 … …
123456 2 0 0 … …
Note:
For the balance carried forward, the temporal translation difference of 100 is written to the totals record with translation
indicator 0, so that the balance carryforward period contains the accumulated speci c value of 1,760.
Example 2: Translation at an exchange rate that is not equal to the reference exchange rate, thus incurring currency
translation differences
Scenario:
The reference exchange rate changes from 1.6 (period 000) to 2.0 (period 012). The exchange rate stays the same.
Item Transl. ind. Period: 000 Period: 012 Period: 012
Ref. exchange rate: 1.6 Ref. exchange Cumulative

rate: 2.0
Exchange rate: 1.7
Exchange
rate: 1.7
LC GC LC GC LC GC
123456 0 1,100 1,760 100 200 1,200 1,960
123456 1 0 110 0 30- 0 80
123456 2 0 0 0 440 0 440
123456 3 0 0 0 440- 0 440-
Note:
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As the exchange rate differs from the reference exchange rate, in period 000 a currency translation difference of 110 is
displayed under translation indicator 1.
The change of the reference exchange rate between period 000 and period 012 results in two temporal translation differences.
Temporal translation difference 1 under the translation indicator 2 is 440 (1,100 LC * 0.4 GC/LC).
Temporal translation difference 2 under the translation indicator 3 is 440- (1,100 LC * 0.4 GC/LC-).
The system calculates the temporal translation difference 1 as follows:
Reference value cumulative to period 012 2,400
- Reference value cumulative to prior period 1,760
- Reference value of period 012 200
= Temporal translation difference 1 440
The system calculates the temporal translation difference 2 as follows:
Speci c value accumulated up to period 2,040

012
- Speci c value accumulated up to the prior 1,870

period
- Speci c value of period 012 170
- Temporal translation difference 1 440
= Temporal translation difference 2 440-
Item Transl. ind. Period: 000 Period: ...
Ref. exchange rate: 2.0 Ref. exchange rate:

...
Exchange rate: 1.7
Exchange rate: ...
LC GC LC GC
123456 0 1,200 2,400 … …
123456 1 0 360- … …
123456 2 0 0 … …
123456 3 0 0 … …
Note:
For the balance carryforward, the temporal translation difference 1 of 440 is written to the totals record with translation
indicator 0, so that carryforward period contains the accumulated speci c value of 2,400. The temporal translation difference 2
of -440 is written to the totals record with translation indicator 1, so that the carryforward period contains the accumulated
speci c value of -360.
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Currency Translation Differences That Affect

Earnings
Use
You use this function to determine and record currency translation differences that have an effect on earnings.
Prerequisites
The characteristic with the role Translation is contained in the consolidation area and in the data stream for totals records.
Features
Within a method step in currency translation, whenever the system selects data from the balance sheet and posts the currency
translation difference in the income statement (and vice versa), such a journal entry has an effect on earnings.
Whether such entries are posted depends on the customizing settings of the currency translation method and on the
transaction data that is translated.
When you save a currency translation method, the system checks whether the current customizing settings cause postings that
affect earnings and displays an informational message to that effect.
At runtime, the currency translation method checks for the existence of currency translation differences with an effect on
earnings. To do this, the method examines the selection of each method step for items that have an item typethat does not
match the item type of the differential item. If a mismatch is discovered, the system calculates the amount of the nancial
statement imbalance and posts an offsetting entry to a clearing item for nancial statement imbalances .
The currency translation log shows currency translation differences that affect earnings separately.
After balances are carried forward for a new scal year, the system calculates the new currency translation differences that
affect earnings, based on changes incurred during the current year. Financial statement imbalances in the previous scal year
are no longer taken into account because these are accounted for in the balance carryforward.
If you do not utilize currency translation with effects on earnings (which means you have not included the characteristic with the
role Translation in the consolidation area and the data stream for totals records), the system computes nancial statement
imbalances in the rounding function that follows currency translation. This, of course, causes higher rounding differences.
Activities
A. Customizing
De ne the currency translation method as you normally would. (See the section Execution of a Currency Translation .)
B. Execution of Currency Translation
Execute the currency translation task (as you normally would) in the consolidation monitor. Examine the resulting nancial
statement imbalances from currency translation in the log.
Execution of a Currency Translation

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Purpose
You implement this process to translate a consistent data set to a target currency and measured by a reference translation
report translation differences.
In particular, you can use this process to translate individual nancial statements of consolidation units into the shared group
currency and to represent budget calculations made in different currencies in one shared currency.
Process Flow
A Currency Translation may consist of multiple steps, each of which can contain its own substeps; meaning that the steps can
be de ned as a hierarchy.
In order to execute a currency translation, you rst de ne its general structure in the method layout; meaning that you de ne
the following:
Number of levels of the step hierarchy of this method layout
Characteristics that are to be available in fast entry when a method is de ned (fast entry is discussed later on)
Level of the step hierarchy as of which Selection, Source Key Figures, Currency Translation Key, Exchange Rate
Determination, and Currency Translation Difference are visible and/or ready for input when de ning a method.
When de ning the method, you specify the details of the currency translation. Fast entry features an overview of the currency
translation. Fast entry enables you to create steps and to navigate among these steps. You specify the reference translation
globally for the entire method. For each step, you specify which currency translation key and which exchange rate type are to be
used for the translation, and how the currency translation differences are to be posted. The system executes the steps in the
desired sequence. Meaning: The system considers the results of a step in the subsequent step.
The process ow in detail:
A. Customizing
De ning Exchange Rate Indicators, Translation Ratios, Exchange Rates
De ne exchange rate indicators, translation ratios, and exchange rates for the currency translation.
De ning a Task
De ne a task for the currency translation.
De ne Method Layout
Create a new method layout with the type Currency Translation or use an existing one.
If you de ne a new method layout, proceed as follows:
1. On the screen for de ning the currency translation, de ne the number of levels the step hierarchy contains.
In order to de ne a method later on, also specify the following:
Level of the step hierarchy as of which the Selection and the Translation Difference are visible. You change the
visibility by dragging the arrows over to the desired row (using drag and drop).
Level of the step hierarchy as of which the Source Key Figures, Currency Translation Key, and Exchange Rate
Determination are visible and ready for input. You change this by dragging the cross symbols over to the desired
row (using drag and drop).
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Characteristics that are to be available in fast entry when de ning a method
Note
If you only want a single step for currency translation, there is no need to designate characteristics for fast
entry.
You can remove characteristics from the table by dragging them to the trash folder (using drag and drop).
You can delete a step by dragging it to the trash folder (using drag and drop).
Recommendation
We recommend planning fast entry for the characteristic for the accounting object (for example, item) at the highest
level of the step hierarchy for Selection and Translation Difference since this will provide you with a good overview of
the selections and their differential accounting objects later on.
2. Save the method layout de nition.
De ne Method
1. Create a method for the method layout.
2. First, specify (at the highest level) the Reference Translation with Source Key Figure and Exchange Rate Type globally
for all steps.
Note
You cannot specify the Target Key Figure explicitly. The system automatically speci es the group currency as
the target key gure; the currency key for this is the group currency key.
The reference translation always uses the currency translation key “cumulative”.
3. In fast entry, create a step for each combination of currency translation key and exchange rate type. For example, you
create a step for the translation of equity; during selection, you enter the equity items as an interval (for example, items
170000 to 170399).
If you have also planned fast entry for the differential accounting object, for each step, enter the accounting object to
which the translation differences are to be posted (for example, translation differences when translating equity: item
250900).
For an item, you can specify one or more subassignments; for each subassignment, you can select the Default indicator
and/or specify a characteristic value for the subassignment.
Note
The differential accounting object must reside outside of the associated selection, if you also enter values in the
source currency for the accounting object.
4. For each step (and therefore for each group of accounting objects to be translated), de ne the Speci c Translation:
Determine which currency translation key and which exchange rate type are to be used for the speci c translation.
Note
For the settings for currency translation, where necessary, assign a custom procedure for determining exchange
rates and/or a custom translation procedure. Use the following BAdIs:
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For custom procedures for determining exchange rates: UC_CTR_XRPROC
For custom translation procedures: UC_CTR_CTPROC
For more detailed information, see the relevant system documentation for the BAdI and the documentation for its
methods.
Assign Method
Assign the currency translation method to the task and the corresponding consolidation units.
B. Execute the Currency Translation
You execute the currency translation by running the task for the currency translation in the consolidation monitor.
Result
A con rmation is displayed after successful execution of the currency translation. The translated data is then available in the
InfoCube for transaction data.
Example: Execution of a Currency

Translation
Purpose
You want to translate the balance sheet and the income statement of a consolidation unit from local currency to group
currency.
Prerequisites
The consolidation area contains:
the characteristics with the roles nancial statement item and transaction type
the key gures local currency and group currency
Process Flow
A. Customizing
De ne exchange rate indicators, translation ratios, exchange rates
De ne the exchange rate indicators, translation ratios, and exchange rates for the currency translation.
De ne task
De ne a task for the currency translation.
De ne method layout
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1. Create a new method layout or use an existing one. The method layout must have steps:
2. De ne the method layout as follows:
De nition of the method layout
De ne in ... Selection Source Key Figures Currency Exchange Rate Translation

Translation Key Determination Differences
... the method
Visibility ¯ X ¯
Detail Screen TType
Fast Entry Item Item
... all steps
Visibility X X
Detail Screen
Fast Entry
This method layout de nition has the following consequences for the de nition of the method:
You de ne the selection in fast entry.
The source key gures are visible and speci able globally (for the entire method).
You de ne the currency translation key and the exchange rate type for each step.
The accounting object for the translation difference is de ned in fast entry for each step; however, the transaction type
is determined globally for all steps in the detail screen Difference .
1. Save the data.
De ne method
2. First, globally de ne (at the top level) the reference translation for all steps:
3.
a. Select the group currency as the target key gure .
b. Select the local currency as the target key gure for the reference translation.
c. Select 1001 (current exchange rate) as the exchange rate type for the reference translation.
4. In fast entry, create a step for each combination of currency translation key and exchange rate type.
Fast Entry
Step Item (Selection) Item (Translation Navigation

Difference)
Investments [] 170000-170399 = 250900
Stockholders’ [] 250000-250899, = 250900

Equity 290300-290700
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Retained earnings = 290200 = 250900

(balance sheet)
Other balance sheet [] 100000-169999, = 250900

items 170400-249999
Income statement [] 300000-390000 = 321300
1. In the detail screen Differences, globally select (at the top level) the transaction type 100 (opening balance) for all steps.
2. For each step, de ne which currency translation key and exchange rate type are to be used:
Step Speci c translation
Investments
Currency translation key: cumulative
Exchange rate type : 1003 (historical rate)
Stockholders’ Equity
Exchange rate type : 1001 (current rate)
Retained earnings (balance sheet)

Currency translation key : periodic, average rate for
reductions
Exchange rate type : 1002 (average rate)
Other balance sheet items

Income statement
Currency translation key : periodic, average rate for
reductions
Assign method
Assign the currency translation method to the task and the corresponding consolidation units.
B. Starting the Currency Translation
Execute the currency translation by running the task for currency translation in the consolidation monitor.
Historical Currency Translation by Date of

Acquisition
Use
You use this function to execute currency translation using the exchange rate of the period in which the asset was acquired.
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Prerequisites
The items to be translated have a breakdown by acquisition year and (optionally) by acquisition period.
Activities
A. Customizing the Currency Translation Key
To enable the system to determine historical exchange rates, you go to the customizing settings for currency translation and
de ne a currency translation key within your customer namespace (in which the key starts with an alphabetic letter). This
currency translation key needs the following settings:
Translation Timeframe: Cumulative
Translation Procedure: Apply Rate Directly
Exchange Rate Period Used: Period of Acquisition
You use this currency translation key in a method step that belongs to the speci c-type translation.
B. Execution of Currency Translation
You execute the historical currency translation by starting the respective task in the consolidation monitor.
At runtime, the system establishes the exchange rate period used from each data record, by determining:
1. The scal year variant in the master record of the consolidation unit. If no scal year variant is found, the system uses
the scal year variant that is xed in the consolidation area.
2. The year of acquisition .
3. The period of acquisition . If there is no characteristic in the consolidation area with the role Period of Acquisition , or the
posting period in the data record is initialized (for example, because of the optional breakdown by period of acquisition),
then the system uses the last period of the current consolidation interval.
Historical Currency Translation According to

Investments or Equity
Use
If you want to perform historical currency translation based on additional nancial data for consolidation of investments, you
use one of the procedures for determining exchange rates – Investments or Equity.
Prerequisites
You have generated the Investments or Equity data stream in the data basis.
You have speci ed in the settings for the location of values for consolidation of investments that the system is to read
investment or equity data from the additional nancial data.
Note
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You can also specify for the Equity procedure for exchange rate determination that the system is to read equity data from
both the totals database and additional nancial data. This is only possible if the system does not read the equity data for
the combinations of item and subassignments to be translated using this procedure for exchange rate determination from
the totals database.
Features
The trigger and target of currency translation are always the totals records. When you use either the Investments or Equity
procedure for exchange rate determination, the system uses the additional nancial data to determine the exchange rate. It
attempts to use the additional nancial data to determine all the required rates for each totals record to be translated.
To determine the relevant additional nancial data for a totals record, the system uses all non-blank characteristic values that
also exist in the data stream for additional nancial data. If characteristics are empty in the totals record, the system
summarizes the values for these in the additional nancial data.
To enable the system to identify the relevant additional nancial data, the following condition must be met: Any characteristics
with values in the totals record must have the same values in the additional nancial data. This applies in particular to
characteristics with the roles transaction type, partner unit, or investee unit.
If a characteristic in the totals record does not have a value, the system identi es all additional nancial data irrespective of the
value of this characteristic. This results in totals records with leaner item breakdowns than in the additional nancial data.
Note
If the relevant items have optional breakdowns by characteristics that also exist in the additional nancial data, the
corresponding totals records either cannot use these breakdowns or must use them consistently with the additional
nancial data.
Local Currency Change for a Consolidation

Unit
Use
A change of the local currency is primarily necessary in the following cases:
A company moves to a different country and reports its nancial statements in a different currency.
A consolidation unit or an entire country introduces a new reporting currency.
A consolidation unit wants to report its nancial data in the group currency rather than in the local currency.
When a consolidation unit changes its local currency, this function makes certain that:
The balance carryforward data is posted in the new local currency.
All entries are posted in the new local currency starting on the closing date which always must be in line with a new scal
year.
Whenever the system needs to access data of previous years, this data is translated into the new currency on an ad hoc
basis (ad hoc translation). (Inversions and prior year comparisons need to access prior year data.)
Integration
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In contrast to the euro changeover, a local currency change does not abolish the old currency.
Prerequisites
Local currency changes must take place at the beginning of a scal year.
The local currency change must be performed before you carry forward the balances or post new data for the new scal year.
Otherwise the data could become inconsistent.
See also Customizing for a Local Currency Change.
Features
Functions Affected by Local Currency Changes
The following functions are affected by local currency changes:
When the currency-bearing consolidation unit changes the attribute value for the local currency, the balance
carryforward function needs to translate the values in the old currency into the new currency.
Period initialization (task)
Period initialization inverts documents of prior years. When a local currency changes, the system also needs to translate
the prior-year documents to be inverted into the new currency.
Other tasks that invert documents
These are tasks that post automatically and have document types that automatically invert postings of prior periods.
(For example, document types for the elimination of interunit payables and receivables are con gured to do this.)
These tasks proceed as in period initialization tasks (discussed earlier).
Mass reversal
Mass reversals proceed as in period initialization tasks (discussed earlier).
Consolidation of investments with goodwill in local currency
If goodwill is carried in the local currency of the investee unit, the goodwill and investment values also need to be
translated into the new currency.
Validation
Validations sometimes compare prior year values. Such prior year comparisons may need to access data in the old local
currency. In this case, the data needs to be translated into the new local currency.
Currency Translation and Rounding for Local Currency Changes (Customizing Settings)
The local currency key is an attribute of the currency-bearing consolidation unit. The assignment of this attribute is scal year
dependent.
When the local currency changes, starting in the new scal year the new currency is used by all functions that work with local
currency values. Therefore, functions that access prior year data (in particular, balance carryforward, period initialization, and
other inversion functions) need to react to the local currency change: In most cases the system translates the old currency
(located in the data rows) into the new currency (according to the local currency key in the master data of the consolidation
unit).
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To enable the system to translate prior year values into the new currency on demand, you specify a currency translation method
in the Customizing settings for balance carryforwards.
Recommendation
For the currency translation method, we recommend that you merely specify a reference translation, rather than a speci c
translation. The system would not be able to take advantage of all of the functionality in speci c translations anyway.
We recommend also that you assign a rounding method to the currency translation method.
You assign the currency translation method to the balance carryforward task. The system then derives the currency translation
method that belongs to the consolidation unit from the Customizing settings for the balance carryforward.
The system then applies this currency translation method (along with the assigned rounding method) to a set of data records.
As a result, the local currency key and the local currency values are replaced by the new values. If necessary, the system
calculates and posts any currency translation or rounding differences.
Balance Carryforward for the Consolidation Unit with the New Local Currency
When a consolidation unit changes its local currency, the balance carryforward function needs to translate the totals data as
well as the local currency data of all data streams. The currency translation method to be used for this needs to be assigned to
the balance carryforward task.
The balance carryforward function then does the following:
The function determines whether there are any consolidation units with the local currency to be changed.
The function adds the following information to the balance carryforward task log:
Currency translation method
Exchange rate
Old and new currency keys
Old and new local currency values
Rounding differences (if incurred)
Balance Carryforward for Totals Data, Investment Data, and Equity Data
As an option, you can assign a rounding method to the currency translation method. This enables the system to post rounding
differences depending on which data streams are used. However, in some cases, rounding differences cannot be posted:
Totals data: The system stores translated data records in the totals database, including any rounding differences.
Investment data: Rounding is not possible for investment data.
Equity data: Customizing for the location of equity data offers you various options with different effects on balance
carryforwards:
Read from totals database: No equity data is carried forward.
Read from additional nancial data: No rounding differences are posted if the account assignment for rounding
differences is not an equity item.
Read from totals database and additional nancial data: No rounding differences are posted if the account
assignment for rounding differences is not an equity item, or if the account assignment is an equity item but this
account assignment is read from the totals data.
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Special Case: New Local Currency Is Same as Group Currency
You can specify whether the system is to apply special logic if the new local currency is the same as the group currency.
If you do not activate this special logic, translation differences generally occur when the currency is translated into the new local
currency.
If you activate this special logic, the system aggregates the group currency values for the new scal year in the balance
carryforward using the indicator for translation differences and then uses these aggregated group currency values as the local
currency values in the new scal year. This is only done if the new local currency and group currency keys match. By doing this,
you can prevent currency translation differences in this special situation.
When the consolidation of investments is run, the system also adjusts the key gures for goodwill entries in update mode in the
rst consolidation period of a scal year: For any investee units with a new local currency that matches the group currency, the
system copies the key gure values for the currency translation (in group currency) to the corresponding original key gures
(without translation) in group currency. The system then copies the original key gures in group currency to the corresponding
key gures in local currency and initializes the translation key gures (in group currency).
To activate this special logic, you select the Copy Local Currency Values from Group Currency Values indicator in Customizing
for balance carryforward tasks.
Treatment of Values in Transaction Currency
The system treats data in transaction currency differently, depending on whether the item has a breakdown by transaction
currency:
Items with breakdown by transaction currency:
The values in transaction currency remain unchanged.
Items without breakdown by transaction currency:
After translation, the values in transaction currency are replaced with the default currency:
Posting levels 00, 01, 10: Value is replaced by the local currency value.
All other posting levels: Value is replaced by the group currency value.
Example
See the section Examples: Local Currency Change.
Customizing for a Local Currency Change

Purpose
You use this process to de ne your Customizing settings for local currency changes .
Process Flow
We recommend that you make the settings in the order shown below.
If you have already carried forward the balances or posted new data for the new scal year before performing the local currency
change (despite our recommendation), see SAP Note 722764.
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1. Entry of the New Local Currency
As soon as you know that a consolidation unit intends to change its local currency, perform the following steps:
1. In the parameters of the Consolidation Workbench, temporarily change the scal year to the year, at the beginning of
which the local currency is going to change.
2. In the Customizing settings for the consolidation unit, specify the new local currency and save your entries (in the
process view of the Workbench at Master Data Consolidation Units ).
3. In the parameters of the Workbench, change the scal year back to what it was before the temporary change (in step 1).
2. De nition of a Currency Translation Method with Rounding Method
Create a currency translation method to be used exclusively for the local currency change – even if you are still in the year prior
to the change. This method merely needs to contain a reference translation with the following settings:
Source key gure: period value in local currency
Exchange rate determination: current exchange rate
Rounding method: If possible, assign a rounding method. At a minimum, this method should ensure that the total assets
are equal to the total liabilities and equity.
Note that rounding must be done in local currency.
Note
Reference translations always use the currency translation key “cumulative”.
3. Assignment of the Currency Translation Method to the Balance Carryforward Task
Assign the currency translation method to the balance carryforward task. (You should make this assignment no later than the
rst period of the new scal year; but you can make it earlier than that, as well. You do not need to reverse the assignment later
on.)
Result
When you perform the balance carryforward task, the system translates all of the values to be carried forward into the local
currency.
The task log includes information about the local currency change (see the section Local Currency Change for a Consolidation
Unit ).
Examples: Local Currency Change

Inversion of an Entry in Local Currency Posted in the Prior Year
This example illustrates the approach the system takes when data records of the previous year are inverted and, thus, need to
be translated ad hoc.
The original entry was posted in the local currency GBP in 2003 (step 1).
In the year 2004 a consolidation function needs to invert the data record (step 2) and translate it into the new local currency ad
hoc (step 3).
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Afterwards, the system also processes the values in transaction currency (step 4): The value for item “A” remains unchanged
because item “A” has a breakdown by transaction currency. However, the old value of item “B” is translated into the new local
currency because the item does not have a breakdown by transaction currency and was posted with posting level 10.
Year Cons Unit LC Key of Item TC Key TC Value LC Key LC Value GC Key GC Value
Cons Unit
1. Original data records
2003 C1000 GBP A GBP 100 GBP 100 USD 300
B GBP -100 GBP -100 USD -300
2. Result of an inverting consolidation function (executed in the current year)
2004 C1000 GBP A GBP -100 GBP -100 USD -300
B GBP 100 GBP 100 USD 300
3. Ad hoc translation
2004 C1000 GBP A GBP -100 EUR -270 USD -300
B GBP 100 EUR 270 USD 300
4. Postprocessing to adjust data records for items without a breakdown by transaction currency
2004 C1000 GBP A GBP -100 EUR -270 USD -300
B EUR 270 EUR 270 USD 300
Posting of a Rounding Difference

This example shows how a rounding difference can be incurred due to a local currency change, and how this difference is posted
to a differential item.
Item LC Value 2003 Exchange Rate LC Value 2004
11112000 0.30 1/32.5 0.01
11411000 -0.15 1/32.5 0.00
11412000 -0.15 1/32.5 0.00
25714000 (Rounding -0.01

Differences)
Total 0.00 0.00
Consolidation in Multiple Group Currencies

Use
You can consolidate reported data into more than one group currency.
Reasons to do this might be:
You need to have a second reporting currency.
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You want to do your planning in a different group currency.
You want to report in two currencies on the subgroup level: You disclose the subgroup result in the rst group currency
while reporting the subgroup result to corporate headquarters in their group currency.
 Example
A subgroup reports in Swedish Kronor, but corporate group consolidates in euros.
You only need to enter the reported nancial data in local currency. Then you need to standardize the data, translate it into the
group currency, and then periodically use a copy task to translate the reported data, documents, and additional nancial data
into the second group currency.
Integration
The group currency is not a property of the consolidation group.
The group currency key is a characteristic in the data basis .
You can carry multiple group currencies in each version .
If you only want to carry one group currency in a consolidation area, explicitly specify the value of the group currency key in the
consolidation area .
However, if you want to carry multiple group currencies, you need to specify each group currency in the parameters of the
Consolidation Workbench.
Features
Copying and Translation of Source Data
To translate reported nancial data, documents, and additional nancial data into an additional group currency, you use a copy
task with a copy method – the copy method contains the currency translation method. The currency translation method, in turn,
should have a rounding method.
If the copy method’s source group currency and target group currency vary, the system performs currency translation when the
copy task is executed.
The copy task consists of the following steps:
1. Read source data
2. Execute mapping (if de ned)
3. Execute the BAdI (if de ned)
4. Currency translation and rounding according to the currency translation method
5. Write target data in the target version
When totals data is copied, rounding differences can cause additional data rows. When documents are copied, additional
document line items can be created.
If you periodically copy data (that is not accumulated), you can create the opening balances by copying the associated totals
records one time only using the nonperiodic copy function .
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If you copy the totals records cumulatively and copy documents at the same time, the system behaves as follows:
Totals records and documents are translated separately. However, documents are always translated periodically.
Then the system compares the translated totals records with the sum of the translated documents. Here, the
translation of totals records takes precedence.
If a difference is found, the system creates a correction document. The document text denotes that this is a correction
document. The correction document is also listed in the copy task log.
Copy Task Log
When data is translated into another group currency, the copy task log shows the following in addition to the ordinary
information:
In the source data section: the group currency key of the source version
Error messages generated during currency translation
In the target data section: rounding differences
Correction documents (if created)
Activities
Copy Method
See also the more general description in De ning a Copy Method .
Under Data Type , choose All Data Types .
SettingsTab Page
Specify the update mode . We recommend the option Delete All.
Specify the input type. We recommend Cumulative Data Entry because this option does not require you to separately
create the opening balances, as opposed to periodic data entry (see earlier).
Specify a BAdI lter (if applicable).
(For detailed information, see eld help, the system documentation for the UC_DATATRANSFER BAdI, and the
documentation of its methods.)
Source/Target VersionTab Page
Specify the source and target group currencies, and enter a currency translation method (see below).
Specify the source and target versions.
Source version = target version:
To copy all of the data (and, in particular, to retain the hierarchy of consolidation units), copy to the same version.
Source version ≠ target version:
If you do not want to copy all of the data and you want to have different subhierarchies in the two versions (in
scenarios such as the subgroup scenario discussed earlier), choose a target version that does not equal the
source version.
MappingTab Page
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If applicable, de ne how the elds are mapped. See also Mapping .
SelectionTab Page
If applicable, de ne a source and/or target selection .
For example, you can restrict the target selection as follows:
By posting levels
By document types (when copying documents)
But not by consolidation unit or group
Instead, we recommend assigning the copy method to the consolidation units or groups in the copy task. For example, for
copying reporting data and standardized reporting data, choose the option Dependent on Consolidation Unit in the Per
Consolidation Unit processing type and set the relevant indicator for the consolidation group affected.
Currency Translation Method
Create a currency translation method that translates the data into the second group currency only. This method should only use
reference translation since not all functions are available anyway in speci c translations. (For example, you cannot determine
the relationship between the source and target group currencies according to the additional nancial data because no data
exists in the target group currency.) The reference translation should have the following settings:
Source key gure: value in group currency
Exchange rate determination: exchange rate indicator and exchange rate type; current exchange rate
Rounding method: If possible, assign a rounding method. This method needs to round in group currency and, at a
minimum, should ensure that total assets are equal to total liabilities and equity.
Note
Reference translations always use the currency translation key “cumulative”.
Copy Task
See also the general description in Copy Task and De ne Copy Task .
Specify which data streams should be copied with this task: totals data plus documents (if applicable) and/or additional
nancial data.
We recommend that you de ne a source task so that any subsequent changes to the source data (such as the entry of
additional documents) affect the status of the target task.
In order to copy reporting data and standardized reporting data, use the Per Consolidation Unit processing type. If you
select the Dependent on Consolidation Unit option, you can, for example, copy the data from various consolidation units
from various versions into a target version in which you assign multiple copy methods.
To copy documents from the posting levels 02, 12, 20, 22, and 30, use the Per Consolidation Group processing type and
choose the consolidation group for which the copy task should be performed.
Inserting the Copy Task into the Task Hierarchy or Task Sequence
Add the copy task to the target hierarchy for the target version.
Task Sequence
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In the target version, the copy task is the rst relevant task that follows the balance carryforward and period initialization. The
tasks for higher posting levels are after the copy task.
Arrange the target tasks in the target version in the following order:
1. Balance carryforward
2. Period initialization
3. Data collection task (if not all consolidation units are copied)
4. Copy task
5. Standardizing entries (if applicable)
6. Tasks for higher posting levels
Executing the Copy Task
You run the copy task in the Consolidation Monitor in the target version using the target group currency.
Example
See the following section: Example: Consolidation in Two Group Currencies .
Example: Consolidation in Two Group

Currencies
The group CG1 has the following structure in the consolidation system:
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The group hierarchy
Consolidation group CG3 has the group currency Swedish kronor (SEK). However, the consolidation group also needs to report
its nancial data in euros (EUR) to the corporate group.
In the copy task, you select Dependent on Consolidation Unit to determine that only the data of consolidation units CU3, CU4,
and CU5 is to be copied.
The source version (version 100 in SEK) only contains CG3; whereas, the target version (version 200 in EUR) contains the entire
consolidation group CG1, which includes CG3.
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The hierarchies in the source and target versions
You de ne the copy method as follows:
Source version: 100; target version: 200
Source group currency: SEK; target group currency: EUR
The task hierarchy in the target version is arranged as follows:
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The task hierarchy in the target version
Once all tasks have been successfully executed in the target version, the Consolidation Monitor shows the following:
OrgUnit Bal.Carryfwd Per.Initial. Copy Data Entry
CG1
CG2
CU1
CU2
CG3
CU3
CU4
CU5
Status explanations:
The copy task is relevant for CG3 and its consolidation units, and was executed without errors or warnings.
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The copy task is not relevant for CG2.
In contrast, the data entry task is not relevant for CG3.
The data entry task is relevant for CG2 and was executed without errors or warnings.
The tasks for higher posting levels are run after the data collection tasks. These were executed at the consolidation group level.
Rounding
Purpose
You can use this function as follows:
You can check if the data adheres to the customer-de ned rounding rules.
If and when the system discovers rounding differences, you can have the system either display error messages or post
adjustment entries to clear the rounding differences.
These differences are usually very small, because they are purely the result of the inaccuracies involved in rounding.
Here are a few examples of rules you can use to check and round your data:
Balance sheet total = 0 (checks if the assets are equal to liabilities and equity)
Total revenue + expense = annual net income
Amortization entries in the balance sheet + amortization entries in the income statement = 0
You typically use the rounding function as part of currency translation because rounding errors are systemically incurred during
the translation of currencies. In conjunction with currency translation, you:
make sure that the rounding rules are observed (in the source currency), and you
let the system clear the rounding differences in the target currency.
You also have the option of using the rounding function in areas other than currency translation.
The rounding function requires an accounting data model (that is, a chart of accounts).
Integration
You can implement this function as part of the components SEM-BCS as well as SEM-BPS.
If you use currency translation , you should use the rounding function as an extension of currency translation.
Features
Selections and key gures
You use selections and key gures to see if the rounding rules are being adhered to.
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You need selections, for example to build the total of all assets and the total of all liabilities and equity in order to check
the rule "Balance Sheet Total = 0".
There are two types of key gures:
Key gures to be checked: The system checks the rounding rules for these key gures.
Key gures to be rounded: For these key gures the system clears the differences using adjusting entries.
The key gures to be checked and those to be rounded must be different because a key gure cannot be checked and rounded
at the same time. For example, you can select the local currency as the key gure to be checked, and the group currency as the
key gure to be rounded.
Rounding types
You use rounding types when formulating the rounding rules.
Rounding Types
De nition
A means of formulating checking rules in the rounding function.
Use
Three rounding types are available for formulating checking rules. You can select a rounding type that is suitable to the checking
rule you want to use.
Structure
1. Rounding type: Selection 1 = 0
This rounding type builds the total for the data records found (according to the selection) and posts the total to the differential
accounting object you specify.
For example, you can check that the total assets equals the total liabilities and equity – that is, whether the total of all balance
sheet items equals zero.
To do this, you de ne as selection 1 all balance sheet items, and you determine a differential accounting object that lies within
the selection. (For more information about de ning a selection, see Single Selection .)
The system builds the total and posts a result – if unequal to zero – to the differential accounting object.
Item Transaction Type (TType) Value
Land 100 (opening balance) 15
Buildings 100 (opening balance) 15
Equity 100 (opening balance) 31-
Land 120 (additions) 2-
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Equity 120 (additions) 3
Now you can decide whether to record a rounding difference per transaction type.
Option A: Perform rounding for all transaction types and record the difference at a different transaction type.
Selection 1
Item = all balance sheet items (incl. the item for the
rounding difference)
Differential Accounting object

Item = the rounding difference
TType = 150
In this case, the rounding rule has been ful lled. Hence, the system does not post anything to the differential accounting object.
Option B: Perform rounding per transaction type
Selection 1
Item = all balance sheet items (incl. the item for the
rounding difference)
Differential Accounting object

Item = the rounding difference
(TType is not applicable)
In this case no transaction type is speci ed. For selection 1 this results in the following totals, depending on the transaction type:
Selection Transaction Type (TType) Total for Selection
Selection 1 100 1-
Selection 1 120 1
In this case, the rounding rule is not ful lled and the system posts the differences with reversed signs to the differential
accounting object:
Item Transaction Type (TType) Value
Rounding Difference 100 1
Rounding Difference 120 1-
2. Rounding type: Selection 1 + Selection 2 = 0
This rounding type adds the values for the two selections and checks if the total is equal to zero.
Example 1:
This rounding type can also be used to check whether the total assets equals the total liabilities and equity.
The initial data is the same as in the previous example. You choose the selections as follows:
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Selection 1 Item = all assets
Selection 2 Item = all liabilities and equity
Example 2:
After currency translation, you want to check if the amortization in the balance sheet matches the amortization expense in the
income statement.
Initial data:
Item TType Value in Local Currency (LC) Value in Group Currency (GC)
Value GC = .5 * Value LC
Buildings 220 5- 3-
Machinery & Equipment 220 3- 2-
Amortization Expense -- 8 4
As selection 1 you choose the asset items, as selection 2 you choose the amortization expense items of the income statement.
You select an expense item as the differential accounting object. This item must be outside of the selection.
The selections and the corresponding totals are illustrated here:
Selection Items Total for Selection (GC)
Selection 1 Item = asset items 5-
Selection 2 Item = amortization items in the income 4

statement
The system posts the expense of +1 to the differential accounting object.
3. Rounding type: Selection 1 = Selection 2
This rounding type checks if the two selections are equal.
You want to check if two items with different breakdowns have the same value after performing currency translation.
Initial data:
Item Partner Value in Local Currency (LC) Value in Group Currency (GC)
Receivables from Affiliates A 1 1
" B 1 1
" C 10 5
Item Transaction Currency (TC) Value in LC Value in GC
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Statistical Item for Receivables Currency 1 8 4

from Trading Partners
" Currency 2 4 2
The selections and the corresponding totals are illustrated here:
Selection Items Total for Selection (GC)
Selection 1 Item = Receivables from Trading Partners 7
Selection 2 Item = Statistical Item for Receivables from 6

Trading Partners
For the differential accounting object you select the statistical item for accounts receivable from trading partners and, for
example, transaction currency “Currency 1”. This differential accounting object must be within the selection.
The system posts the difference of 1 to the differential accounting object.
Execution of a Rounding
Purpose
You use this process to check whether a set of data adheres to the rounding rules you de ned and to clear the rounding
differences using adjustment entries.
Process Flow
A Rounding process may consist of multiple steps, each of which can contain its own substeps; meaning that the steps can be
de ned as a hierarchy.
In order to execute a rounding, you de ne its preliminary structure in the method layout; that is, you de ne the following:
Number of levels of the step hierarchy of this method layout
Characteristics that are to be available in fast entry when a method is de ned (fast entry is discussed later on)
Level as of which you see the rounding type, selection 1, selection 2, and the rounding difference (when de ning a
method)
The level of the method layout at which you must specify which characteristics (when de ning a method)
When de ning the method, you de ne the rule(s) the system uses for checking and rounding. Fast entry features an overview of
the rounding steps. Fast entry enables you to create steps and to navigate among these steps. You de ne the key gures
globally for the entire method, but you de ne the details for rounding for each step on the Rounding detail screen. The system
executes the steps in the desired sequence. Meaning: The adjustment entries of a step are considered in the subsequent step
(meaning that each step considers the results of the previous step).
The process ow in detail:
A. Customizing
De ne Method Layout
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Create a new method layout for rounding or use an existing one.
Do the following when creating a new method layout:
1. On the screen for de ning the rounding, de ne the number of levels the step hierarchy contains.
In order to de ne a method later on, also specify the following:
Characteristics that are to be available in fast entry when de ning a method
Level as of which you are able to see selections 1 and 2 as well as the rounding difference. You change the visibility
by dragging the arrows over to the desired row (using drag and drop).
At which level of the method layout Rounding, which characteristics must be speci ed. In order to use a
characteristic, you assign it by selecting the target column and dragging the characteristic from the list of
characteristics onto a cell of the table (via drag and drop).
Note
If you only want a single step for rounding, there is no need to designate characteristics for fast entry.
You can remove characteristics from the table by dragging them to the trash folder (using drag and drop).
You can delete a step by dragging it to the trash folder (using drag and drop).
2. Save the method layout de nition.
De ne Method
2. On the Key Figures detail screen, select globally (for the entire method) the key gure to be checked and the key gure
to be rounded.
3. De ne the checking and rounding rules at the top level of the rounding function.
Rounding: This is where you de ne the checking and rounding rule:
You select the rounding type.
You de ne the selection(s) by entering the characteristic values (for example, the items and transaction
types). You can use single selection as an aid.
You de ne the differential accounting object to which the system is to post the difference, which is determined by
the checking rule.
For an item, you can specify one or more subassignments; for each subassignment, you can select the Default
indicator and/or specify a characteristic value for the subassignment.
Note
On the Rounding tab page, you can add further characteristics that you did not designate in the method
layout.
Fast Entry: If you designated characteristics in the method layout for fast entry, the system automatically creates
the rst step for the method. You can then create additional steps in fast entry. You use the arrow symbol to
navigate among these steps. The detail screens of the steps show the respective data of all higher levels. (This
data cannot be modi ed.)
4. You proceed at step level or sub-step level as you do at the top level (see the previous item).
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Sequence and Selection of Steps Within a Method
When a rounding method is executed, the system works through each of the steps contained in the method. Once every step is
completed, the differential entries generated in the previous step ow into the data set used as the calculation base for the
next step. When you have multiple steps in succession, the sequence of the steps and the scope of the selection assigned each
of those steps is crucial, for example, to prevent a validation rule later on from destroying the results of a previous check. For
example, a real-world approach might look like this:
 Example
The system should perform local rounding checks rst, for example, to establish whether balance sheet depreciation on
assets is equal to their counterparts in the income statement. Only afterwards should the system perform global types of
checks, for example, to establish whether the sum of all balance sheet items is zero.
Assign Method
Assign the rounding method to a task (for example, a task for currency translation).
B. Starting Rounding
Execute the rounding function by running the corresponding task (for example, the task for currency translation) in the
consolidation monitor.
Result
After a rounding function completes successfully, the system displays a con rmation message and – if applicable – one or more
error messages if you selected a key gure to be rounded. The rounded data is then available in the InfoCube for transaction
data.
Example: Execution of a Rounding

Purpose
Say, you want to check the following rules in the sequence listed for individual nancial statement data that is translated from
local currency to group currency.
1. Additions to amortization in the balance sheet + amortization expense in the income statement = 0
2. Total income statement = 0
3. Retained earnings on balance sheet = annual net income on income statement
4. Total balance sheet = 0
Prerequisites
The consolidation area contains:
the characteristics with the roles nancial statement item and transaction type
the key gures local currency and group currency
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Process Flow
To check the rules, you rst create a method layout with steps. You then create a method that uses one step per rule.
A. Customizing
De ne method layout
1. Create a method layout with the type rounding .
2. De ne the method layout with steps.
De nition of the method layout
De ne in ... Selection 1 Selection 2 Rounding Difference
... the method
Visibility ¯
Detail Screen
Fast Entry Item
... all steps
Visibility ¯ ¯
Detail Screen Item Item
Fast Entry
Later, when de ning the method in fast entry, this method layout de nition requires that you specify the differential item for all
steps, and the items for selections 1 and 2 (if applicable) in each single step.
De ne method
2. In the detail screen Key Figures , select the local currency as the key gure to be checked and the group currency as the
key gure to be rounded .
3. Continue the de nition of the method as follows:
Fast Entry:
Create a step for each checking rule. For each of the two steps specify the differential accounting object to which the rounding
difference is to be posted.
Step Differential Accounting object
an expense item,e.g. 311900 Amortization Expense

1. Additions to amortization in the balance sheet +
amortization expense in the income statement = 0
an income statement item,e.g. 321300 Gain/Loss from Currency

1. Total income statement = 0
Translation
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1. Retained earnings on balance sheet = annual net income on a balance sheet item,e.g. 251200 Retained Earnings, Current Year
income statement
a balance sheet item,e.g. 250950 Currency Translation Differences,

1. Total balance sheet = 0
Rounding
Step 1 (additions to amortization in the balance sheet + amortization expense in the income statement = 0):
Rounding:
To check this rule, select rounding type 2 (selection 1 + selection 2 = 0).
For this step, select the transaction type as the additional characteristic.
Selection 1 represents the additions to amortization in the balance sheet. Choose the option Range and enter the range of
balance sheet items 191100 to 191500 with transaction type 220.
Selection 2 represents the amortization expense item in the income statement. For characteristic FS item specify the range
311900 to 311950.
For the rounding difference, select the transaction type as the additional characteristic, but do not enter a value for the
transaction type.
Step 2 (total income statement = 0):
Rounding:
For this rule you select rounding type 1 (selection 1 = 0).
As selection 1 you de ne a range over all income statement items – 300000 to 399999.
Step 3 (retained earnings on balance sheet = annual net income on income statement):
Rounding:
For this rule you select rounding type 3 (selection 1 = selection 2).
For selection 1 you de ne 251000 – Retained Earnings without selecting a transaction type.
For selection 2 you de ne 390000 – Annual Net Income.
For the rounding difference, you select the transaction type as the additional characteristic, and you enter the value 120.
Step 4 (total balance sheet = 0):
Rounding:
For this rule you select rounding type 1 (selection 1 = 0).
For selection 1, you choose the option Range for characteristic FS Item and insert all balance sheet items into the range –
100000 to 299999.
For the rounding difference, you select the transaction type as the additional characteristic, and you enter the value 120.
Note
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To check if the total balance sheet equals zero, you also could have chosen rounding type 2 (selection 1 + selection 2 = 0). In
that case, as selection 1 you would have had to de ne the total assets, and as selection 2 the total liabilities and equity.
Assign method
Assign the rounding method to a task for currency translation.
C. Starting Rounding
Execute the rounding function by running the currency translation task in the consolidation monitor.
Result
The system executes the steps in the desired sequence. Once the rounding steps are carried out, the balance sheet and income
statement are balanced again.
If you used key gures to be checked and errors occurred (that is, the rounding in the key gure was not ful lled), the system
displays the corresponding error messages.
Preparation for Consolidation Group Change

Use
If, during a scal year, a consolidation unit is acquired by a consolidation group (acquisition), divested from a consolidation group
(divestiture), or changes its accounting technique (method change), the following data must be adjusted:
Standardized nancial data
Consolidated data with posting level 20
Consolidated data with posting level 30
These adjustments are necessary to ensure that reporting for the consolidation group in which the above changes took place
provides accurate gures. The same applies to reporting for higher-level consolidation groups.
Features
Overview of Adjustment Entries
An acquisition to a consolidation group can result in a rst consolidation, a divestiture in a total divestiture.
Preparatory entries for a consolidation group change ensure that a rst consolidation or a total divestiture accurately portrays
reported nancial data, standardized nancial data, and two-sided eliminations.
The system makes the following adjustment entries in preparation for an acquisition, divestiture, or change of accounting
technique:
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Balance Sheet Items w/o Balance Sheet Items with For the following items:
Breakdown by Transaction Breakdown by Transaction
Income statement
Type Type
items
Items with item type

Statistical: Flow
Acquisition Correct book value of balance Correct book value of balance No adjustments are necessary.
sheet items are added to sheet items are added to
consolidated nancial consolidated nancial Consolidated nancial
statements statements; use of speci c statements do not show the
transaction types for values of items in the periods in
acquisitions to consolidation which there was no
group consolidation unit ownership.
Divestiture Book values of balance sheet Book values of balance sheet

items are cleared from items are cleared from
consolidated nancial consolidated nancial
statements statements; use of speci c
transaction types for
divestitures from consolidation
group
Change of Accounting
Technique Change from equity method to purchase method: the same as acquisition
Change from purchase method to equity method: the same as divestiture
The system uses special logic for the treatment of retained earnings since it treats balance sheet items differently than items
with item types Income Statement and Statistical: Flow.
The consolidation of investments postings enhance the preparation postings for consolidation group changes to ensure that
reporting shows accurate gures.
Posting Levels
There are special posting levels for the adjustment entries.
The following table shows the posting levels in which entries were originally made, and the posting levels for the associated
adjustment entries:
Original Posting Level Posting Level for Adjustment Entries for Consolidation Group
Changes
00 Reported nancial data 02 Reported nancial data:

Consolidation group changes
01 Adjustments to reported
nancial data
10 Standardizing entries 12 Standardizing entries:

20 Two-sided elimination entries 22 Two-sided elimination entries:

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Original Posting Level Posting Level for Adjustment Entries for Consolidation Group
Changes
30 Consolidation group-dependent 32 Consolidation-group-dependent

entries entries: Consolidation-group-
dependent changes (with the
exception of consolidation of
investments)
The data records that are posted with the posting levels 02, 12, 22, and 32 are dependent on the consolidation group. They are
valid in the consolidation group for which they were posted and for all consolidation groups that contain this consolidation
group. (This is the same logic that is used for postings with posting level 30; that is, the system posts delta documents for
consolidation groups at higher hierarchy levels.)
For posting level 22, both the consolidation unit and the partner unit must belong to the consolidation group.
Period Selection
Reporting only selects data for the periods ranging from rst consolidation to divestiture accounting ( nal divestiture). The
selection observes the indicators First Consolidation at End of Period and Divestiture Accounting at Beginning of Period. Data is
selected only for the periods in which the reporting is started.
Document Types
For posting levels 02, 12, and 22, you can select preparation for acquisition, preparation for divestiture, as well as preparation
for a gain or loss of control all in the same document type or in different document types. For posting level 32, you can select
preparation for acquisition and preparation for divestiture as well as preparation for loss of control in the same document type
or in different document types. There is therefore a maximum of 15 document types.
The document types can post in the following currencies:
Document types for posting levels 02 and 12 post in local currency, transaction currency, and group currency.
The document type for posting level 22 posts in transaction currency and group currency.
The document type for posting level 32 posts in transaction currency and group currency.
The document types for the preparation for consolidation group changes do not support posting of deferred taxes or automatic
document inversion.
The document types for posting levels 02, 12, and 22 do not support clearing items. In document types for posting level 32, you
have to specify a clearing item for offsetting entries. The system posts these offsetting entries to the consolidation unit that
you specify in the Assigned End Node eld in the Customizing settings for the consolidation group.
Tasks
By assigning one or more document types to tasks, you can de ne tasks that process only acquisitions, only divestitures, only
gain of control or loss of control, or all of these at once.
A task can post simultaneously to posting levels 02 and 12 or it can post only to posting level 22 or only to posting level 32.
However, it is not possible to combine these groups of posting levels (that is, you cannot post to 02/12 and also to 22 or 32).
This means that you must de ne at least three tasks:
Task 1: With document types for posting levels 02 and 12
Task 2: With document type for posting level 22
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Task 3: With document type for posting level 32
You can create a maximum of 15 tasks one task for each document type.
Task Sequence and Dependency on Other Tasks
Currency translation must be performed before a preparation for a consolidation group change.
Data records for preparatory postings for consolidation group changes are neither translated nor carried forward (exception:
data records created with posting level 32 are always carried forward).
Postings for consolidation of investments ( rst consolidation and total divestiture) and preparatory postings for consolidation
group changes supplement each other.
Preparation for Acquisition

Use
When a consolidation group acquires a consolidation unit at any time during the year, you can use this function to adjust the
reported nancial data, the standardized nancial data, and the consolidated nancial data. After this data is adjusted, the
nancial statements contain only the data that relates to the time in which the consolidation group had ownership in the
consolidation unit.
Features
Preparation for acquisition treats nancial statement items as follows:
Balance sheet items are valued with the cumulative values that were recorded prior to the rst consolidation.
Income statement items are handled only for posting level 32 (see Consolidation Group Changes for Group-Dependent
Entries).
Statistical items are ignored.
Value Selection and Posting Period
The cumulative values prior to rst consolidation need to be determined. Assuming that the rst consolidation is posted in
period n, the preparation for acquisition selects the values as follows:
First Consolidation At... Preparation for Acquisition Selects…
End of period n Data of periods 0 through n
Beginning of period n Data of periods 0 through (n-1)
 Example
If a consolidation unit is acquired by a consolidation group on May 31, the system selects the values of periods 0 to 5.
First Consolidation Period and Posting Period
Preparatory entries are always posted in the last period of the consolidation interval (as with all other tasks). Preparation for
acquisition postings are triggered when the rst consolidation period occurs in the consolidation interval.
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Posting Logic
The period total of the selection is posted by replacing the balance sheet item and the transaction type (the latter is replaced
only if the balance sheet item is broken down by transaction types and the transaction type for acquisitions for the
consolidation group is not initialized).
The only balance sheet item that is replaced is the item Retained Earnings – Current Year; this item is replaced by the
item Retained Earnings – Current Year Prior to First Consolidation.
In contrast, all transaction types are replaced by the transaction type Acquisitions by Consolidation Group.
Accounting Technique and Posting Level
Posting Levels 02 and 12
Preparation for acquisition only considers consolidation units that are consolidated with accounting technique Purchase
Method.
The relevant rst consolidation period is that of the consolidation unit.
Posting Level 22
Preparation for acquisition only considers data records in which the consolidation group consolidates both the acquired
consolidation unit and the partner unit with accounting technique Purchase Method.
The period of rst consolidation is either that of the acquired consolidation unit or that of the partner unit.
When rst consolidation of the acquired consolidation unit takes place, then the period of rst consolidation of the acquired
consolidation unit must lie between the partner unit's period of rst consolidation and partner unit's period of nal divestiture.
The converse also applies.
Posting Level 32
For more information about posting level 32, see Consolidation Group Changes for Group-Dependent Entries.
Relationship Between Preparation for Acquisition and Reporting
When reporting selects data with posting levels 00, 01, and 10, it considers only the timeframe in which the consolidation group
had ownership in the consolidation unit. (The dates of rst consolidation and divestiture accounting are used for this.) When
reporting selects data with posting level 20, it considers only the timeframe in which the consolidation group had ownership in
both the consolidation unit and the partner unit.
If the consolidation unit is acquired at the end of a period, reporting does not select the acquisition period –however,
preparation for acquisition does.
In contrast, when selecting data with posting levels 02, 12, and 22, reporting disregards the dates of rst consolidation and
divestiture accounting.
By doing so, both reporting and preparation for divestiture compute accurate values because all posting levels are totaled.
Example
First consolidation at beginning of period 002, posting level 00
Database Reporting
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PL Database
00 02 Reporting
00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance PL
Trans.Type 00 02 00 02 00+02
Sheet Item
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Cash -- 10 10 10 20 -- -- 10 20 30
Property, Opening 100 --

Plant & balance
Equipment
Acq. 10 10 -- 10 10
Acq. CG 110 110 110
Retained Opening -110 --

Earnings, balance
Prior Years
Acq. CG -110 -110 -110
Retained Acq. -20 -20 -- -20 -20

Earnings,
Current Year
Retained Acq. CG -20 -20 -20

Earnings,
Current Year
Prior to First
Consolidation
Income -- -20 -20 -- -20 -20

Statement
Transfer of -- 20 20 -- 20 20
Retained
Earnings,
Current Year
First consolidation at end of period 002, posting level 00
Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Cash -- 10 10 10 30 -- -- -- 30 30
Property, Opening 100 --

Plant & balance
Equipment
Acq. 10 10 -- --
Acq. CG 120 120 120
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Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Retained Opening -110 --

Earnings, balance
Prior Years
Acq. CG -110 -110 -110
Retained Acq. -20 -20 -- --

Earnings,
Current Year
Retained Acq. CG -40 -40 -40

Earnings,
Current Year
Prior to First
Consolidation
Income -- -20 -20 -- --

Statement
Transfer of -- 20 20 -- -- --
Retained
Earnings,
Current Year
First consolidation, posting level 20, “Cash” item only
Database Reporting
Per. 000 001 002 003 000 001 002 003
Case FC (CU) FC (PU) DA (PU) PL
1 002/BOP 002/BOP ≥ 20 10 10 10 10 -- -- 10 10
004/BOP
22 20 20
2 002/EOP 002/BOP > 20 10 10 10 10 -- -- -- 10

004/BOP
22 30 30
3 003/BOP 002/BOP ≥ 20 10 10 10 10 -- -- -- 10
004/BOP
22 30 30
4 003/EOP 002/BOP ≥ 20 10 10 10 10 -- -- -- --
004/BOP
22 40 40
5 ≥ ≤ 002/EOP 20 10 10 10 10 -- -- -- --
003/BOP 002/EOP
22
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Abbreviations:
Retained Earnings, Current Year = Retained earnings from current scal year
FC = rst consolidation
DA = divestiture accounting
BOP = beginning of period
EOP = end of period
CU = consolidation unit
PU = partner unit
Per. = period
PL = posting level
Explanations:
In cases 1 through 4, the dates of rst consolidation and divestiture accounting for the consolidation unit and partner
unit have overlapping time intervals. This makes it necessary to post preparation for acquisition entries.
In case 5, the dates of rst consolidation and divestiture accounting for the consolidation unit and partner unit do not
have overlapping time intervals. Thus, no posting of preparation for acquisition entries takes place.
As a rule, consolidation units and partner units share the same logic. You could switch the two units and still have the
same results in postings and reporting.
Preparation for Divestiture

Use
When a consolidation group divests a consolidation unit at any time during the year, you can use this function to adjust the
reported nancial data, the standardized nancial data, and the consolidated nancial data. After this data is adjusted, the
nancial statements contain only the data that relates to the time in which the consolidation group had ownership in the
consolidation unit.
Features
Preparation for divestiture treats nancial statement items as follows:
Balance sheet items are cleared taking into consideration the cumulative values that were recorded prior to the nal
divestiture.
Income statement items are handled only for posting level 32 (see Consolidation Group Changes for Group-Dependent
Entries).
Statistical items are ignored.
Value Selection and Posting Period
The cumulative values prior to divestiture need to be determined. Assuming that the divestiture is booked in period n, the
following selection is made:
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Divestiture At… Preparation for Divestiture Selects…
Beginning of period n Data of periods 0 through (n-1)
If a consolidation unit is divested from a consolidation group on June 30, the system selects the values for periods 0 through 6
for the adjustment entries.
Divestiture Accounting Period and Posting Period
Preparatory entries are always posted in the last period of the consolidation interval (as with all other tasks). Preparation for
divestiture postings are triggered when the divestiture period occurs in the consolidation interval.
Posting Logic
The system clears the period total of the selected values (by posting the period total with a reversed debit/credit sign). This
replaces the balance sheet items and transaction types. The transaction types are replaced if the balance sheet item is broken
down by transaction types and the transaction type for divestitures for the consolidation group is not initialized.
Only the following balance sheet items are replaced:
Retained Earnings - Current Year
Retained Earnings - Prior Years
Retained Earnings - Current Year Prior to First Consolidation
Retained Earnings - Distribution of Dividends
Retained Earnings - Clearing Item for Distribution of Dividends
Retained Earnings - Bonus Management
Retained Earnings - Transfers to Appropriated Retained Earnings and similar items if appropriation of retained
earnings is (a) activated in Customizing for consolidation of investments and (b) selected for the balance sheet
All of these balance sheet items are replaced by Retained Earnings - Clearing Item for Consolidation of
Investments.
All transaction types are replaced with the transaction type Divestiture from Consolidation Group (if they exist and are
not initialized).
The following exception exists for appropriation of retained earnings: Preparation for divestiture not only resets Appropriated
Retained Earnings, but also posts to (a) the Clearing Item for Consolidation of Investments and (b) Transfers to Appropriated
Retained Earnings with a reversed debit/credit sign.
Accounting Technique and Posting Level
Posting Levels 02 and 12
Preparation for divestiture only considers consolidation units that are consolidated with accounting technique Purchase
Method. The relevant divestiture period is the divestiture period of the consolidation unit.
Posting Level 22
Preparation for divestiture only considers data records in which the consolidation group consolidates both the acquired
consolidation unit and the partner unit with accounting technique Purchase Method.
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The divestiture period is either the divestiture period of the acquired consolidation unit or the divestiture period of the partner
unit.
When divestiture accounting of the divested consolidation unit takes place, then the divestiture period of the divested
consolidation unit must lie between the partner unit's period of rst consolidation and the partner unit's period of nal
divestiture. The converse also applies.
Posting Level 32
For more information about posting level 32, see Consolidation Group Changes for Group-Dependent Entries.
Relationship Between Preparation for Divestiture and Reporting
When reporting selects data with posting levels 00, 01, and 10, it considers only the timeframe in which the consolidation group
had ownership in the consolidation unit. (The dates of rst consolidation and divestiture accounting are used for this.) When
reporting selects data with posting level 20, it considers only the timeframe in which the consolidation group had ownership in
both the consolidation unit and the partner unit.
If the consolidation unit is divested at the beginning of the period, reporting does not select the divestiture period – neither
does preparation for divestiture.
In contrast, when selecting data with posting levels 02, 12, and 22, reporting disregards the dates of rst consolidation and
divestiture accounting.
By doing so, both reporting and preparation for divestiture compute accurate values because all posting levels are totaled.
Example
Final divestiture at beginning of period 002, posting level 00
Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Cash -- 10 10 10 -20 10 10 -- -20 0
Property, Opening 100 100 100

Plant & balance
Equipment
Acq. 10 10 10 -- 10
Div. CG -110 -110 -110
Retained Opening -60 -60 -110

Earnings, balance
Prior Year
Retained Acq. -20 -20 -20 -- -20

Earnings,
Current Year
Clearing C/I Div. CG *30 90 90
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Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Appropriated 50 10 10 -60 50 10 -60 60

Retained
Earnings
Retained -10 -10 60 -10 -60 60

Earnings –
Transfers to
Appropriated
Retained
Earnings.
Income -- -20 -20 -20 -- -20

Statement
Transfers to -- 20 20 20 -- 20
Retained
Earnings,
Current Year
*) The following items (in periods 000 and 001) are posted with a reversed debit/credit sign to Retained Earnings - Clearing
Item for Consolidation of Investments (Clearing C/I):
Retained Earnings, Prior Year (OB); Retained Earnings, Current Year (Acq.); Appropriated Retained Earnings; Retained Earnings
- Transfers to Appropriated Retained Earnings
Amounts calculated are: 60 + 20 - 50 - 10 + 10 = 30
Final divestiture at end of period 002, posting level 00
Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Cash -- 10 10 10 -30 10 10 10 -30 0
Property, OB 100 100 100

Plant &
Equipment
Acq. 10 10 10 10 20
Div. CG -120 -120 -120
Retained OB -60 -60 -60

Earnings,
Prior Year
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Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 Total
Balance Trans.Type
Sheet Item
Retained Acq. -20 -20 -20 -20 -40

Earnings,
Current Year
Clearing Div. CG *50 120 120

Cons. of
Invest.
Appropriated 50 10 10 -70 50 10 10 -70 -70

Retained
Earnings
Retained -10 -10 70 -10 10 70 70

Earnings –
Transfers to
Appropriated
Retained
Earnings.
Income -- -20 -20 -20 -20 -40

Statement
Transfers to -- 20 20 20 20 40
Retained
Earnings,
Current Year
*) The corresponding items (in periods 000 through 002) are posted with a reversed debit/credit sign to the Clearing C/I item.
60 + 20 + 20 - 50 - 10 - 10 + 10 + 10 = 50
Final divestiture, posting level 20, “Cash” item only
Database Reporting
Per. 000 001 002 003 000 001 002 003
Case FC (CU) FC (PU) DA (PU) PL
1 002/BOP Prior year 003/EOP 20 10 10 10 10 10 10 -- --
22 -20 -20
2 002/EOP Prior year 003/EOP 20 10 10 10 10 10 10 10 --
22 -30 -30
3 003/BOP Prior year 003/EOP 20 10 10 10 10 10 10 10
22 -30 -30
4 003/EOP Prior year 003/EOP 20 10 10 10 10 10 10 10 10
22 -40 -40
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Database Reporting
Per. 000 001 002 003 000 001 002 003
5 ≤ 003/BOP ≥ 20 10 10 10 10 -- -- -- --
002/EOP 003/BOP
22
Abbreviations:
Retained Earnings, Current Year = Retained earnings from current scal year
FC = rst consolidation
DA = divestiture accounting
BOP = beginning of period
EOP = end of period
CU = consolidation unit
PU = partner unit
Per. = period
PL = posting level
Explanations:
In cases 1 through 4, the dates of rst consolidation and divestiture accounting for the consolidation unit and partner
unit have overlapping time intervals. This makes it necessary to post preparation for divestiture entries.
In case 5, the dates of rst consolidation and divestiture accounting for the consolidation unit and partner unit do not
have overlapping time intervals. Thus, no entries are posted – neither in reporting nor in preparation for divestiture.
As a rule, consolidation units and partner units share the same logic. You could switch the two units and still have the
same results in postings and reporting.
Change of Accounting Technique (Method

Change)
Use
When a consolidation unit changes its accounting technique at any time (for example, at midyear), you can use this function to
adjust the related reported nancial data, standardized nancial data, and consolidated data. This data is adjusted so that only
those nancial results go into reporting, that was recorded for the time period in which the consolidation unit was fully
consolidated.
Features
Selection
The cumulative values prior to the change of accounting technique need to be determined. If the change takes place in period n ,
the function makes the following selection:
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Method Change Selection
Beginning of period n Data of periods 0 through ( n – 1)
Change of Accounting Technique and Posting Period
Preparatory entries are always posted in the last period of the consolidation interval (as in all other tasks). When the
accounting technique changes, postings for a consolidation group change are triggered at the point the period of the change
occurs in the consolidation interval and it belongs to the consolidation group.
Posting Level
For preparatory entries with posting level 02 or 12, the postings are triggered at the consolidation unit when the accounting
technique changes.
For preparatory entries with posting level 12, the postings are triggered at the consolidation unit when the accounting
technique changes if the partner is fully consolidated at the time of the change. Similarly, the postings are also triggered if the
partner changes its accounting technique and the consolidation unit is fully consolidated at the time of the change.
Posting Logic
The system triggers postings for the preparation for acquisition or divestiture with dependent on the accounting technique:
Old Accounting Technique New Accounting Technique Posting Logic
Purchase method (full consolidation) Equity method Divestiture
Equity method Purchase method Acquisition
Here, the acquisition and divestiture logic is slightly modi ed: Instead of posting to the items Net Income Prior to First
Consolidation and Clearing – Consolidation of Investments , the system posts to the item Net Income – Method Change .
Con ict Between Acquisition/Divestiture and the Change of Accounting Technique
Acquisition or divestiture posting is triggered when a consolidation unit is to be acquired or divested and the accounting
technique is to be changed, and this occurs at the same date (at the beginning of period or the end of period). But the change of
accounting technique itself is not taken into consideration – that is, the consolidation group change either already uses the new
accounting technique or still uses the old accounting technique.
Two dates are considered the same only if they match with regards to the year, period, and the beginning of period/end of
period option.
Example
Change from equity method to purchase method at beginning of period 002, posting level 00
Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 å
Item Trans.
Type
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Cash -- 10 10 10 20 -- -- 10 20 30
Property, Open.bal. 100 --

Plant &
Equipment
Acq. 10 10 -- 10 10
Acq. CG 110 110 110
Retained Open.bal. -110 --

Earnings,
Prior Years
Acq. CG -110 -110 -110
Retained Acq. -20 -20 -- -20 -20

Earnings,
Current
Year
Net Acq. CG -20 -20 -20

Income,
Method
Change
Pro t/Loss -- -20 -20 -- -20 -20
Transfer of -- 20 20 -- 20 20
Retained
Earnings,
Current
Year
Change from purchase method to equity method at end of period 002, posting level 00
Database Reporting
PL 00 02 00 02 00+02
Period 000 001 002 002 000 001 002 002 å
Item Trans.
Type
Cash -- 10 10 10 -30 10 10 10 -30 0
Property, Plant & Open.bal. 100 100 100

Equipment
Acq. 10 10 10 10 20
Div. CG -120 -120 -120
Retained Open.bal. -60 -60 -60

Earnings, Prior
Year
Retained Acq. -20 -20 -20 -20 -40

Earnings, Current
Year
Net Income, Div. CG * 50 120 120

Method Change
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Appropriated 50 10 10 -70 50 10 10 -70 -70
Retained Earnings
Retained Earnings -10 -10 70 -10 10 70 70

– Transfers
toAppropr.
Retained Earnings
Pro t/Loss -- -20 -20 -20 -20 -40
Transfers to -- 20 20 20 20 40
RetainedEarnings,
Current Year
*) The corresponding items (in periods 000 through 002) are posted with a reversed debit/credit sign to the Clearing C/I item
(see also: Preparation for Divestiture ).
60 + 20 + 20 – 50 – 10 – 10 + 10 + 10 = 50
Consolidation Group Changes for Group-

Dependent Entries
Use
To ensure that group ownership of consolidation units is taken into account when consolidation group-dependent entries are
recorded, you can post preparatory entries to posting level 32.
Unlike with lower posting levels, with posting level 30, reporting displays all data regardless of the dates for rst consolidation
and divestiture accounting. If you want these dates to be taken into account in reporting, you can use a task with the category
consolidation group change to post entries to posting level 32. In this type of task, the system makes further postings in
addition to preparation postings for acquisition or divestiture. It uses these additional postings to reverse the totals records on
posting level 30 (with the exception of consolidation of investments) for speci c periods. This period-speci c reversal applies
not only to the balance sheet, but also to the income statement. You can activate the period-speci c reversal in the
Customizing settings for the task for consolidation group changes with posting level 32.
Features
Reporting handles consolidation group-dependent entries on posting level 30 as follows:
Any consolidation group-dependent entries posted by you or the system at a point in time when the consolidation group
did not belong to the group (before rst consolidation or after divestiture accounting) are still visible in reporting.
When there is a loss of control or total divestiture is performed for the consolidation unit, the system does not undo the
consolidation group-dependent entries (with the exception of entries with the business application Consolidation of
Investments). This means that the values in balance sheet accounts are not equal to zero after a loss of control or after
total divestiture takes place for the consolidation unit.
To take the dates of rst consolidation and divestiture accounting or loss of control into account in reporting, you can use task
category Consolidation Group Change to post entries to posting level 32. This task is intended for all postings on posting level
30 that were made with a business application other than Consolidation of Investments.
Revocation of Group-Dependent Entries by Period
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When you activate period-based revocation of group-dependent entries in the Customizing settings for a task for consolidation
group changes with posting level 32, the entries posted by the system differ to those posted to lower posting levels as follows:
Adjustment entries are not only posted in rst consolidation and nal divestiture, but also in each period as required
Entries are posted to the income statement
Note
Proportional consolidation is not supported on posting level 32.
Activities
Customizing for Consolidation Groups
To enable the system to post clearing entries for group-dependent entries, you have to assign one consolidation unit to each
consolidation group. You assign these in Customizing for consolidation groups by entering the relevant value in the Assigned
End Node eld. You must assign a consolidation unit that is not yet used in the consolidation unit hierarchy to each of the
consolidation groups.
Customizing for Document Types
You create document types for consolidation group changes with the following properties:
The document types must post to posting level 32 (Consolidation Group-Dependent Entry: Consolid. Group Change).
The document types may not post in local currency, may not post with deferred taxes, and may not post with automatic
inversion.
On the Clearing Items tab page, you have to specify a balance sheet item to which the system is to post to ensure that
documents within a consolidation group are balanced. We recommend that you use an item without a breakdown.
Customizing for Consolidation Group Change Tasks
In Customizing for consolidation group change tasks, a eld is available for preparation for acquisition, preparation for
divestiture, and preparation for loss of control. In this eld, you enter a document type for group-dependent entries.
Example
Acquisition
Database (Period Values) Reporting (Cumulative Values)
Period 000 001 002 003 004 000 001 002 003 004
Case Period of Post.Level

Acquisition
1 003/Beginning Balance 30 100 50 20 20 20 100 150 170 190 210

sheet
32 -150 -20 170 0 -150 -170 0 0
Rep. Total 0 0 190 210
IS 30 -50 -20 -20 -20 -50 -70 -90 -110
32 50 20 0 0 50 70 70 70
Rep. Total 0 0 -20 -40
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Period 000 001 002 003 004 000 001 002 003 004

Acquisition
2 003/End Balance 30 100 50 20 20 20 100 150 170 190 210

sheet
32 -150 -20 170 0 -150 -170 0 0
Rep. Total 0 0 190 210
IS 30 -50 -20 -20 -20 -50 -70 -90 -110
32 50 20 20 0 50 70 90 90
Rep. Total 0 0 0 -20
Divestiture
Period 000 001 002 003 000 001 002 003

Divestiture
3 002/Beginning Balance 30 100 50 20 20 100 150 170 190

sheet
32 0 -170 -20 0 -170 –190
Rep. Total 150 0 0
IS 30 -50 -20 -20 -50 -70 -90
32 0 20 20 0 20 40
Rep. Total -50 -50 -50
4 002/End Balance 30 100 50 20 20 100 150 170 190

sheet
32 0 -170 -20 0 -170 -190
Rep. Total 150 0 0
IS 30 -50 -20 -20 -50 -70 -90
32 0 0 20 0 0 20
Rep. Total -50 -70 -70
Legend:
Beginning = Acquisition or divestiture at the beginning of the period
End = Acquisition or divestiture at the end of the period
Balance sheet = Item in the balance sheet
IS = Item in the income statement
Rep. Total = Total of all values for posting levels 30 and 32 that reporting displays
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Execution of Preparation for Consolidation

Group Changes
Use
You use this process to post automatic preparatory entries for consolidation group changes.
Process
A. Customizing
Creating Items
In the process view of the workbench at Consolidation Functions Consolidation of Investments Settings Appropriation of
Retained Earnings , on the Net Income tab page, you create the following items:
Items in group box Annual Net Income: Appropriation of Retained Earnings (prior to executing the activities in
consolidation of investments)
Clearing: Consolidation of Investments
Creating Transaction Types
To create transaction types for acquisitions and divestitures, proceed as follows:
1. In the process view of the workbench, choose Master Data Subassignments <for example, Transaction Types or
Movement Types>.
2. Go to the Transaction Type tab page, locate group box Balance Carryforward, Change of Consolidation Group and enter
the transaction types for acquisitions and divestitures (for example, 120 for acquisitions, 150 for divestitures).
Assigning End Nodes to Consolidation Groups
To assign the consolidation groups end nodes on which the system posts offsetting entries to posting level 32, proceed as
follows:
1. In the process view of the consolidation workbench, choose Master Data Consolidation Units Consolidation Groups .
2. Select a consolidation group and on the Hierarchy tab page, enter a consolidation unit in the Assigned End Node eld.
If you enter a value that does not exist, the system asks you whether you want to create a new consolidation unit with
this name.
Recommendation
We recommend that the name you use for the assigned end node be the same or similar to the name used for the
consolidation group.
The consolidation unit is added automatically to the consolidation unit hierarchy. Assigned end nodes are assigned a
special icon ( ) in the consolidation unit hierarchy.
Creating Document Types
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To create the document types for acquisitions and divestitures for the consolidation group or for the method change, you
proceed as follows:
1. In the process view of the workbench, choose Consolidation Functions Change to Consolidation Group Document Type .
2. Choose a posting level to be used for consolidation group changes (02, 12, 22, or 32).
3. Con gure all other settings for the document type:
Application Other
No deferred taxes
No automatic document inversion
Note
In the document type for posting level 32, on the Clearing Items tab page, you have to enter an item in the Clearing -
Consolid. Entries for Consolidation Group Change eld (clearing item for consolidation entries for consolidation group
change).
4. Save your settings.
For more information, see Preparation for Consolidation Group Change, section Document Types.
Creating Tasks
To create tasks, proceed as follows:
1. In the process view of the workbench, choose Consolidation Functions Change to Consolidation Group Task .
2. Assign the document types for acquisitions, divestitures, gain of control, and loss of control.
3. Make all other settings for the task.
4. Save your settings.
For more information, see Preparation for Consolidation Group Change, section Tasks.
B. Execution of Preparation for Consolidation Group Changes
You execute the task(s) for consolidation group changes in the consolidation monitor for the acquired or divested consolidation
units for the corresponding consolidation group.
Result
The system posts the preparatory entries for consolidation group changes.
Afterwards, you execute the remaining tasks including the consolidation of investments tasks. The consolidation of investments
postings enhance the preparation postings for consolidation group changes, ensuring that reporting shows accurate gures.
Document Type Assignment for

Consolidation Group Change
Use
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You can use this function to specify that the system is to post the documents for a consolidation group change with different
document types depending on the document type of the input data (posting level 01, 10, 20, or 30) for the consolidation group
change. This makes postings for consolidation group changes more transparent in reporting.
Prerequisites
You have activated the Financials, Group Close, Restatement Monitor business function.
The consolidation group change at posting level 32 for input data at posting level 30 is only available once you have activated
the business function Financials, Group Close, Business Combinations.
Features
You can specify the individual document types for posting levels 01, 10, 20, or 30 as the source document types. You can assign
these source document types the target document types for posting levels 02, 12, 22, or 32 with which the system is to post the
consolidation group change.
When you assign a target document type to a source document type, the system always uses the assigned target document
type for this source document type in all consolidation group change tasks that post to the same posting level and for the same
activity (acquisition, divestiture, gain of control, or loss of control) as the target document type. The setting that you con gure
in the document type assignment overrides the Customizing setting for the task in this case.
Note
When you con gure a document type assignment for a consolidation group change, each task continues to process only
those consolidation units and activities for which document types are speci ed in Customizing for the task.
If you do not con gure a document type assignment for a document type of the input data, the system automatically uses the
document type that you speci ed in Customizing for the task.
In the case of input data at posting level zero (where the source document type is initial), the system always uses the document
types for posting level 02 that are speci ed in Customizing for the task.
Upon saving, the system checks whether the posting levels for the source and target document types are consistent.
Activities
To con gure the document type assignment, open the consolidation workbench and choose Consolidation
Functions Consolidation Group Change Document Type Assignment .
Interunit Eliminations and Reconciliations

Purpose
Interunit elimination
Interunit (IU) elimination enables you to eliminate business relationships, based on the trade of goods and services, between
the consolidation units within a consolidation group. The business relationships to be eliminated exist between a pair of
consolidation units, such as:
Incurred from the business relationship: To be used for the interunit elimination:
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Incurred from the business relationship: To be used for the interunit elimination:
Payables & Receivables Elimination of IU payables and receivables
Revenue & Expense Elimination of IU revenue and expense
Revenue & Expense from Investment Holdings Elimination of investment income
From the group’s perspective, these business relationships must be eliminated. For, when viewing the corporate group as a
single entity, the group cannot have, for example, receivables and payables from and to itself.
You can use monetary values or quantities as the basis for eliminating business relationships.
Reconciliations
Prior to running interunit eliminations, you can use reconciliations to determine any elimination differences without having the
system post elimination entries. By doing this, you can correct posting errors in the reported nancial data, or manually post
standardizing entries.
Interunit elimination is one of the major tasks within the overall consolidation process.
This component must be chosen if you want to perform IU eliminations using automatic posting functions. If you do not choose
this component and still want to perform IU eliminations, you can use manual posting.
Integration
Before executing the tasks for interunit elimination, you need to have collected the reported nancial data, posted the
standardizing entries, and performed currency translation.
You can execute the reconciliation tasks immediately after you have collected the reported nancial data or after you have
posted the standardizing entries.
 Example
In the consolidation monitor, the sequence of the tasks might look like this:
Consolidation Monitor, Tasks:
Entry of reported nancial data
Validation of reported nancial data
Reconciliation for interunit payables/receivables
Reconciliation for interunit revenue and expense
Reconciliation for investment income
Standardizing entries
Elimination of interunit payables and receivables
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Elimination of interunit revenue and expense
Elimination of investment income
Reclassi cation
Validation of consolidated data
A task for interunit elimination (for example, elimination of interunit payables/receivables) and its corresponding reconciliation
task are both based on the same method .
Features
To enable the system to eliminate group-internal business relationships, you need to de ne the relevant nancial statement
items along with the partner assignments. The system uses these partner assignments to recognize the business relationships
between consolidation units.
You de ne tasks and methods for IU eliminations in Customizing.
Tasks represent accounting activities, such as the elimination of IU payables and receivables or revenue and expense.
You can de ne as many tasks as required to match your speci c accounting procedures.
Methods determine which nancial statement items are cleared and how the system posts any elimination differences
that may arise.
Reconciliation: Recognition of Elimination Differences in Advance
You can identify any existing differences prior to posting elimination entries by running a reconciliation task in the consolidation
monitor. The system shows you the differences, but does not post any entries.
Elimination entries: Calculation and Posting of Differences
The posting of elimination entries is also run as a task in the consolidation monitor. Using the method assigned to the task, the
system determines the values to be eliminated for each pair of consolidation units, and automatically posts the entries.
The system posts any differences to the differential accounting objects, which you de ne in Customizing.
You can:
Post two-sided eliminations (standard procedure) or one-sided eliminations (simpli ed procedure)
Determine at which consolidation unit the elimination difference is posted – this is referred to as the strategy for
posting differences
Split the elimination differences, according to their origin, between currency-related differences and other differences –
this is referred to as splitting of differences
De ne limits for elimination differences
Constraints
If you use period accounting (as opposed to cost of sales accounting), you also need to perform group transfers (from
Sales Revenue to Changes to Inventory, or to Other Capitalized Goods on Own Account), in addition to the eliminations.
Such transfers are not a part of interunit elimination. Instead, you can use the reclassi cation activity (see the example
for this ).
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The elimination of corporate tax credits is not a part of the elimination of investment income. Instead, you can use the
reclassi cation activity (see the example for this ).
Selections for Interunit Eliminations and

Reconciliations
De nition
A pair of characteristic groups (each with nancial statement items, and – if applicable – consolidation unit, partner unit,
subassignments and other characteristics), which are used to determine the elimination difference.
Use
In interunit eliminations and reconciliations, you use the selections to re ect the business relationships (receivables/payables
and revenue/expense) between the consolidation units within a consolidation group.
You can create multiple pairs of selections for each elimination method. The rst selection contains the accounting objects; the
second selection contains the offsetting accounting objects for the eliminations.
Structure
The system differentiates elimination entries in terms of business relationships, as follows:
The system processes a given pair of consolidation units (for example, consolidation units A and B).
Within a pair of consolidation units, the system processes one pair of selections at a time (selection 1 and selection 2).
The values of consolidation unit A in selection 1 (with consolidation unit B as the partner assignment) and the values of
consolidation unit B in selection 2 (with consolidation unit A as the partner assignment) indicate a business relationship.
The system eliminates these values and determines any existing differences.
The reverse correlation – that is, the values of consolidation unit B from selection 1 and the values of consolidation unit A
from selection 2 – is also regarded as a business relationship.
If you want to restrict the values to be eliminated, you must or can select the following characteristics for each selection:
Characteristic Required / Optional Purpose
Item Required Determines the item or the offsetting item
Consolidation unit(e.g. company; or the Optional Restricts the selection of

combination of company and pro t center) consolidation/partner units to these units
when you later specify the consolidation
group in an IU elimination run. If no
consolidation/partner units are speci ed
Partner unit(e.g. company; or the Optional
here, the system scans the business
combination of company and pro t center)
relationships for all unit pairs in the
consolidation group.
Subassignment Optional Restricts the values in the selection to

those values that were posted with exactly
this subassignment.
Doc. Type Optional Further restricts the selection
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Characteristic Required / Optional Purpose
Other characteristics (if desired) optional
Note
You determine the consolidation group to be used in the interunit elimination or reconciliation when the corresponding task
is started in the consolidation monitor: There you place the cursor on the junction between the consolidation group and the
task, then you execute the task.
To de ne a selection, you use Single Selection .
Example
Say, you create the following pair of selections for a method:
Selection 1: Receivables
Selection 2: Payables
Differential Accounting Objects for Interunit

Elimination
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De nition
Accounting objects ( nancial statement item and subassignment if applicable) to which elimination differences are posted.
Structure
In Customizing of interunit elimination, you can specify differential accounting objects per method step and pair of selections.
You also de ne the strategy for posting differences which determines to which consolidation unit the elimination difference is
posted.
If you split the differences you can specify different accounting objects for currency-related differences and other differences.
Caution
The differential accounting objects must be outside of the ranges you de ned for the selections.
Differential item with breakdown by subassignments
If the differential item is broken down by subassignments, the system needs to know which value is to be posted per
subassignment. You can specify one value per each subassignment in method customizing. You can also select the Default
indicator . The system uses the posting logic described in detail in the section Default Value .
Two-Sided Elimination
Use
Two-sided interunit elimination uses a pair of elimination entries.
Posting level 20 is reserved for this task.
Prerequisites
The automatic elimination entries are based on the selections that are de ned in Customizing. (Selections are made for
partner unit, accounting objects, subassignments, and so on.)
Features
The system generates an elimination entry if:
The data of a consolidation unit shows a value on an accounting object requiring elimination (sometimes delimited to
subassignments)
for this value another consolidation unit is assigned as the partner unit
the selection shows that the consolidation unit and the partner unit are to be included in IU elimination
The system posts the elimination values with a reversed debit/credit sign. The system assigns the consolidation unit as well as
the partner unit in each line item of the elimination entry.
One-Sided Elimination
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Use
Two-sided interunit elimination is based on two selections . This is typically used for eliminations of group-internal business
relationships through trade and services.
By contrast, one-sided interunit elimination is a simpli ed form of elimination. Here, the elimination entries are based on the
values listed in only one selection. You can use this simpli ed form of elimination for the consolidation of IU revenue and
expense, in particular.
Prerequisites
In Customizing of interunit elimination, you selected one-sided interunit elimination in method de nition.
You de ned only one selection of nancial statement items to be eliminated. In this selection, you list the accounting objects
that are material for the elimination. For example, you may want the revenue items to be material.
As the differential item, you specify the offsetting item, for example, an expense item.
Features
When you run IU elimination, the system calculates a difference equal to the sum of the values in the selection, and posts this
value to the differential accounting object.
Constraints
When IU elimination is based on the values of only one selection, the system does not calculate and post "real" elimination
differences. Instead, it is assumed that the values of the selection for the elimination entries are material, and that
corresponding offsetting values (of equal value) exist.
If the values of items in the selection differ from the corresponding offsetting values, the system eliminates inaccurate values
during a one-sided elimination.
 Example
Say, within your corporate group the revenue of 1000 USD is offset by the expenses of 900 USD. You want to perform one-
sided elimination based on revenue values. You de ne an expense item as the differential item.
Using reversed debit/credit signs, the system posts 1000 USD to revenue and a difference of 1000 USD to the expense
item. This process therefore eliminates an undesired excess of 100 USD from expenses.
Strategy for Posting Differences

Use
The system calculates and posts elimination differences for each business relationship between two consolidation units (that is,
a consolidation unit and a partner unit). The system posts the elimination difference to one of the two consolidation units
concerned.
You can de ne the strategy the system uses to determine which consolidation unit the elimination difference is posted to.
Prerequisites
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In Customizing of interunit elimination, you de ned the strategy for posting differences – per method or per method step.
You can select one of the following strategies for posting differences:
Consolidation unit from selection 1 or 2
In Customizing you choose whether the system posts the elimination difference to the consolidation unit:
from selection 1 or
from selection 2
Consolidation unit with lower or higher value
In this strategy the amount of the value of the accounting objects being eliminated determines how the elimination differences
are posted. In Customizing you choose whether the system posts the elimination difference to the consolidation unit that has:
the lower value or
the higher value
Splitting of Differences
Use
You can use splitting of differences to analyze the reason for the elimination differences.
The system distinguishes between currency-related elimination differences and other elimination differences:
Currency-related differences are incurred if a consolidation unit and its partner unit have the same transaction currency
values in a business transaction, but report different group currency values because they use different local currencies
and/or exchange rates.
Other differences are incurred if a consolidation unit and its partner unit use different ways of reporting business
relationships in their nancial data.
Possible reasons for the different ways of reporting nancial data:
The units post their data on different dates
The units use different accounting and valuation methods
One unit makes an error in posting
By splitting differences you can post currency-related and other differences to different accounting objects.
Prerequisites
When de ning the method for interunit eliminations:
You select the indicator Per Transaction Currency
You select an exchange rate indicator
Furthermore, the following conditions must be ful lled:
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The document type that is assigned must post in the transaction currency and the group currency.
The accounting objects being eliminated and the differential accounting objects must have a breakdown by transaction
currency.
Features
In order to categorize differences, the system reads the FS item values for elimination in both group currency and transaction
currency. If elimination differences exist in transaction currency, the system translates these into group currency. The exchange
rate indicator you specify in Customizing of the method determines the exchange rate.
The resulting translated value represents the other differences (in group currency). The remaining amount of the entire
elimination difference in group currency represents the currency-related differences.
The system posts these differences to the differential accounting objects designated for currency-related differences and for
other differences.
Example
You want to eliminate receivables and payables and split elimination differences. The exchange rate for translating the
differences from transaction currency (FJD) into the group currency (USD) is 0.4.
Initial data
Item Posting Level Transaction Currency Local Currency Group Currency
(FJD) (USD)
Receivables 00 1000 FJD 300 USD 300 USD
Payables 00 1200- FJD 1200- FJD 480- USD
Difference 00 200- FJD 180- USD
Analysis of elimination differences
Total difference = 180- USD
Other difference = 200– FJD * .4 = 80- USD
Currency-related difference = 180- USD - (80- USD) = 100- USD
See also: Example: Elimination of IU Payables/Receivables with Splitting of Differences
Limits for Elimination Differences

Use
When you perform interunit (IU) eliminations, you may want to prevent the system from posting the elimination entry if the
elimination differences are too high.
For this purpose, you can specify limits for elimination differences in Customizing. You can de ne limits:
per currency key and/or
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per unit of measure
Prerequisites
You have de ned a limit for interunit eliminations in Customizing of interunit eliminations.
You have also de ned how the limits are to be checked:
per business relationship (that is, per method step) or
per difference line
(See the example later on.)
Features
If an elimination difference exceeds the limit, the system merely generates a message and suggests a journal entry – the
document is not posted.
You can then examine the elimination differences that exceed the limit and post any necessary adjustments. If you regard the
elimination difference as being valid and you want to post the difference, rst you must deactivate the indicator for using limits
in Customizing.
Note
If you have a consolidation group hierarchy and you execute the task in the consolidation monitor for interunit elimination for
the top consolidation group, the system checks the lower-level consolidation groups one step at a time. If a lower-level
consolidation group does not exceed a limit, it receives the status no errors, no warnings .
Example
Say, the following reported nancial data is being processed: Receivables and payables along with the differential items have a
breakdown by the subassignment due date .
The elimination uses the default for the due date.
The limit is 380 monetary units.
Cons Unit Item Partner Unit Due Date Posting Level Monetary Amount
A Receivables B 1 00 100
A Receivables B 2 00 50-
B Payables A 1 00 500-
Line item Cons Unit Item Partner Unit Due Date Posting Level Monetary
Amount
1 A Receivables B 1 20 100-
2 B Payables A 1 20 500
3 A Differential item B 1 20 400-
4 A Receivables B 2 20 50-
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Line item Cons Unit Item Partner Unit Due Date Posting Level Monetary
Amount
5 A Differential item B 2 20 50
Line item Case 1: Case 2:
Limit is checked per differential line item Limit is checked per method step
1 Difference = 400 -; Difference = 400 -
2 i.e., limit amount exceeded
4 Difference = 50 ; Difference = 50
5 i.e., limit amount not exceeded
Total difference 350-
Result
Limit exceeded Limit not exceeded
No posting Posting (in case of a task for IU

elimination)
Reconciliations
Use
You use a reconciliation if you want to reconcile and then eliminate the group-internal business relationships between
consolidation units in a consolidation group.
Before you post the actual elimination entries for interunit elimination, it is bene cial to reconcile the balances of the group-
internal business relationships. You can analyze the elimination differences in advance. If any differences are unexpected or
unacceptable (for example, due to an erroneous posting), you can consult the consolidation units concerned and make any
necessary corrections.
Integration
You perform the reconciliations after the reported nancial data has been collected or after standardizing entries have been
posted, but prior to currency translation and the actual interunit eliminations.
Prerequisites
During data collection the transaction currency eld must always be lled – either with the value in transaction currency or –
alternatively – with the value in the currency in which the reported data was entered (this is typically the local currency;
otherwise it’s the group currency; this is determined at the consolidation unit).
You have de ned the customizing settings for the reconciliations and interunit eliminations – that is, you:
De ned your own tasks for the reconciliations (one task for reconciling interunit payables/receivables, one task for
reconciling investment income, and so forth)
Used the same method layout, method, and document type used in the associated IU elimination tasks
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Features
Reconciliations process data with posting levels that are less than 20 (which means, posting levels 00, 01, and 10).
The system does not post entries. You can use the reconciliation results to examine the differences.
If you nd differences which you want to clean up prior to running the actual elimination in the central consolidation system, you
can:
Correct the reported nancial data (with posting level 01) – when dealing with erroneous postings – or
Post adjustment entries (with posting level 10)
The system reconciles period values if you have selected automatic inversion of prior periods in the document type. The system
reconciles cumulative values if you have not selected automatic inversion of prior periods in the document type.
Reconciliations are performed:
On the basis of the values in transaction currency (These are equivalent to the values in the data entry currency if there
is no breakdown by transaction currency.) and/or
On the basis of quantities
The system translates the transaction currency into the group currency “on the y”. (Here the system cannot split any
elimination differences.)
Activities
1. You run the reconciliation tasks in the consolidation monitor.
2. You analyze the elimination differences and consult the consolidation units concerned, if required.
3. You correct the reported nancial data, or you post adjustment entries – as required.
Execution of Reconciliations and IU

Eliminations
Purpose
You perform this process if you want to carry out reconciliations or interunit eliminations for:
Elimination of IU payables and receivables
Elimination of IU Revenue and Expense
Elimination of investment income
Process Flow
A. Customizing of Interunit Elimination
De ne tasks and document types
De ne the tasks you need:
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for the reconciliations and
for interunit elimination
For each IU elimination task, de ne a document type with the following properties:
Posting level 20 (two-sided elimination entry)
Automatic posting
Posting in group currency and – if needed – in transaction currency;notposting in local currency
For a reconciliation task, use the same document type that is used for the associated IU elimination task.
De ne method layout and method
An IU elimination task and its associated reconciliation task use the same method layout and the same method. De ne a
method layout and a method for each pair of tasks (for example, the elimination of interunit payables/receivables and the
reconciliation for that elimination), or use an existing method layout and an existing method.
Do the following if you create a new method layout:
1. Select the characteristics you need for the elimination and/or reconciliation (see also Selections for IU Eliminations ).
2. If needed, create steps in the method layout.
For example, you need steps if you want to eliminate different receivables and payables items with each other (for example,
step 1 for current receivables and current payables, and step 2 for long-term receivables and long-term payables).
Do the following if you create a new method:
For the entire method:
In general settings, determine:
whether a one-sided or two-sided elimination is performed
whether splitting differences is performed
whether limits for elimination differences are used
De ne the details for the limits.
For the entire method or for each method step, determine:
the accounting objects for the selections
the differential accounting objects
the strategy for posting differences
the level to be used for checking limits
Assign method and document type
Assign the document type and the method to the task for interunit elimination.
Assign the method to the reconciliation task.
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B. Execution of the Interunit Elimination
Execute the reconciliation and IU elimination tasks in the consolidation monitor.
Note
You determine the consolidation group to be used in the interunit elimination or reconciliation by placing the cursor on the
intersection joining the consolidation group and the task.
Result
The system clears the selections with each other and, if elimination differences are incurred and do not exceed the limit, the
system posts the differences to the differential accounting objects.
Example: Elim. of IU Pay./Rec. with Splitting

of Differences
Initial Situation
You want to perform for consolidation group CG1 an elimination of interunit payables/receivables with the splitting of
differences.
You have collected the following reported nancial data, which has breakdowns by transaction currency:
Reported Data
Cons Unit Item Partner Unit Posting Level Value in TC Value in GC
A Receivables B 00 100 ARP 120 USD
B Payables A 00 80- ARP 100- USD
A Receivables B 00 100 JOD 200 USD
B Payables A 00 80- JOD 150- USD
The exchange rates for translating transaction currency to group currency are as follows:
1.3 for translating ARP into USD
2.5 for translating JOD into USD
A. Customizing of Interunit Elimination
De ne tasks and document type
1. De ne a task for the elimination of interunit payables/receivables.
2. De ne a document type for the elimination of interunit payables/receivables, or use an existing one with the following
properties:
Posting level 20 (two-sided elimination entry)
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Automatic posting
Posting in group currency and transaction currency
De ne method layout
Create a new method layout or use an existing one, which can look like this:
De ne in ... Strategy for Selection 1 Selection 2 Other Diffs Crcy-related Diffs

Differences
... the method
Visibility X ¯ ¯ ¯ ¯
Detail Screen Item Item Item Item
Fast Entry
You do not need steps (hence no entry for fast entry), nor do you need substeps.
De ne method
Create a new method, or use an existing one. Do the following if you create a new method:
1. De ne the following in the general settings :
Two-Sided Elimination
Differences are determined per transaction currency
Exchange rate indicator (for example, current exchange rate)
No limits
1. In the selections determine the FS items to be eliminated:
2. Selection 1
Characteristic Selection 1
Item = Receivables
Selection 2
Characteristic Selection 1
Item = Payables
3. For the elimination differences de ne the following:
Differences are posted to the Unit from selection 1
Key gure: total in group currency
Items for other differences
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Characteristic Debit Credit Default
Item Other Operating Expenses Other Operating Revenue
Items for currency-related differences
Characteristic Debit Credit Default
Item Loss from Currency Translation Gain from Currency Translation
Assign method and document type
Assign the document type and the method to the task for eliminating interunit payables/receivables.
B. Execution of the Interunit Elimination
Execute the task in the consolidation monitor.
1. Place the cursor at the intersection between interunit payables/receivables and consolidation group CG1 .
2. Choose Update Run .
Result
The system clears the selections with each other and posts the elimination difference to the differential accounting objects.
Note
The system does not post the last line item (which is written in italics). It is only shown here for informational purposes.
Cons Unit Item Partner Unit Posting Level Value in TC Translation TC Value in GC
to GC
A Receivables B 20 100- ARP (130-) 120- USD
B Payables A 20 80 ARP (104 ) 100 USD
A Other Oper. B 20 20 ARP (26 ) 26 USD

Expenses
A Gain from C/T B 20 0 ARP (0 ) 6- USD
A Receivables B 20 100- JOD (250-) 200- USD
B Payables A 20 80 JOD (200 ) 150 USD
A Other Oper. B 20 20 JOD (50 ) 50 USD

Expenses
A Loss from C/T B 20 0 JOD (0 ) 0 USD

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SAP ERP | 6.16.13

For more information, please visit the SAP Help Portal.

Reported nancial data

Standardized nancial data

Additional nancial data

You also can use this component to validate documents.

You can validate the documents during posting.

Perform more checks

Issue a message which was de ned by the customer

Validation of Additional Financial Data

Characteristics used as execution parametersfor the validation method

Characteristics used in the selection conditions of the validation method

Grouping characteristics in the validation rules of the method

Total assets = total liabilities (see also the detailed example )

Net pro t = appropriation of retained earnings

Retained earnings on balance sheet = net income on income statement

Customizing Interface for Validation

Check Hierarchy (1)

Elements of a check hierarchy

Further validation rules, or

You can de ne validation rules within a validation method.

You can set up (reusable) validation rules in diﬀerent places:

Selection Conditions (2)

Use of message variables (Commentbutton)

Message output might look like this:

"Assets (&1) not equal to Liabilities (&2);difference: &3."

For more information, see Use of Message Variables .

For more information, see Validation with Grouping Characteristic .

This area contains more functions you can choose.

Several functions are discussed here.

The function uses the following syntax: CONDITION( selection condition ).

For more information, see Validation with Condition Check .

There are also consolidation-speci c functions, including the following:

VAL_YTD to select cumulative values

VAL_YTD to select periodic values

Formula Editor (6)

The section Execution of Validations explains how to customize a validation rule.

4. Create a method and give it a technical name and description.

Further rules, or...

You can set up (reusable) validation rules in diﬀerent places:

To create a validation rule:

1. Select the validation type and the data stream type.

To replace a validation rule, overwrite the name with an existing name.

1. Create a selection condition as follows:

b. Assign a name to the selection condition in the lower screen area.

c. To select characteristics for the selection, choose Insert Characteristic .

Repeat the same procedure for further selections.

2. Save your changes.

The system shows a hierarchy with method settings.

2. Expand the node Checks .

To assemble a formula for the validation rule, proceed as follows:

1. Place the cursor in the formula editor.

4. Save your changes.

One message for a positive result

One message for a negative result

Then return to the workbench and proceed as follows:

The system creates a node for the message.

3. Save the message.

5. Choose which data is to be validated (reported, standardized, or consolidated nancial data).

6. Determine whether you are validating values in local or group currency.

7. Select the period category .