Reconciliations (SAP Library - Business Consolidation (SEM-BCS))

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 beneficial 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 financial 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 field must always be filled – 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 defined the customizing settings for reconciliations and interunit eliminations – that is, you:

defined custom 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

Features

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 fly". (Here the system cannot split any elimination differences.)

The system does not post entries. You can use the reconciliation results to examine the differences.

If you find differences which you want to clean up prior to running the actual elimination in the central consolidation system, you can:

correct the reported financial data (with posting level 01) – when dealing with erroneous postings – or
post adjustment entries (with posting level 10)

Activities

You run the reconciliation tasks in the consolidation monitor.

You analyze the elimination differences and consult the consolidation units concerned, if required.

You correct the reported financial data, or you post adjustment entries – as required.