Example 3: Reclassification of Sales Revenue 

Purpose

From the corporate group point of view, sales revenue gained from partner units must be reclassified as Other Capitalized Goods on Own Account (when using the period accounting method).

This process does not eliminate interunit profit and loss. In a sense, this type of reclassification represents a simplified form of elimination of interunit profit and loss in transferred assets.

The reclassification entry uses posting level 20.

Example data

Cons unit

FS item

Subitem

Partner unit

Value

A

10320200
Plant and Equipment

125 (Acquisitions)

B

100

B

30100100 Sales Revenue

-

A

100-

Prerequisites

After the data is translated and standardized, you run the reclassification in the consolidation monitor.

Process Flow

  1. You customize the reclassifications by defining the following reclassification rule:
  2. Reclassification rule 1

    FS item/Subitem/Partner unit

    Entered value

    Triggering item

    10320200 Plant and Equipment

    Triggering subitem

    125 (Acquisitions)

    Triggering partner unit

    A partner set including partner unit B

    Source item

    30300000 Other Capitalized Goods on Own Account

    Destination item

    30100100 Sales Revenue

    In the rule you also specify that entries are to be posted at the partner unit.

    In this reclassification, the order of the source item and destination item is reversed in regards to normal accounting logic. This is necessary because the debit/credit signs of the triggering item and the source item differ.

     

  3. You run the reclassification in the consolidation monitor.

The system posts as follows:

Cons unit

FS item

Subitem

Partner unit

Value

B

30300000

-

A

100-

B

30100100

-

A

100

Result

After the reclassification, Sales Revenue is reclassified as Other Capitalized Goods on Own Account.