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Process documentation Reconciliation of CO to FI by Fund and Functional Area Locate the document in its SAP Library structure

Purpose

You can update financials for internal Controlling (CO) and Project System (PS) postings that cross certain organizational objects. For more information on the configuration and use of FI / CO reconciliation ledger, see the Controlling documentation.

You can activate the FI/CO reconciliation ledger in CO, which then summarizes cross-organizational cost and revenue movements and updates financials. You can now reflect cost and revenue movements across the following fields for external financial and accounting purposes:

Postings are also summarized for recording of partner company codes, business areas, and funds.

Process Flow

After you activate the fund accounting features and configure the FI / CO reconciliation ledger as described in the Controlling documentation, you are able to process FI / CO reconciliation using the fund and functional area. You process the FI / CO reconciliation in the same manner as described in the Controlling documentation; however, the results will be different.

Funds and functional areas were not previously recorded in the CO tables. Funds were not recorded at all during FI/CO reconciliation and functional areas were only recorded through derivation from the CO master data at the time the FI/CO reconciliation posting was generated.

If you are using fund accounting, funds and functional areas are recorded directly in the CO tables. CO/PS postings made between funds and/or functional areas are considered by the FI/CO reconciliation ledger and posted to FI.

Detailed Example

You make the following internal CO allocation:

Cost Center 1000:

($10,000) Business Area X Fund A Functional area 1

Cost Center 2000 (20%):

$ 2,000 Business Area X Fund C Functional area 3

Cost Center 3000 (80%):

$ 8,000 Business Area Y Fund A Functional area 1

 

When the FI/CO reconciliation ledger is run, the following GL postings are made to transfer expense and the related internal cash (or post " due to " or " due from " entries):

Cash Clearing (or Due to/Due from) GL Account:

$10,000DR Business Area X Fund A Functional area 1

$ 2,000CR Business Area X Fund C Functional area 3

$ 8,000CR Business Area Y Fund A Functional area 1

Expense GL Account(s):

$10,000CR Business Area X Fund A Functional area 1

$ 2,000DR Business Area X Fund C Functional area 3

$ 8,000DR Business Area Y Fund A Functional area 1

 

 

 

 

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