Parallel Accounting in Controlling

Use

In Controlling (CO), you normally store the valuation approach of the general ledger or an alternative cost-accounting valuation approach. Displaying multiple valuation approaches according to various accounting principles is a classic requirement of Controlling. However, as values can flow from Controlling to Financial Accounting, you can also carry out valuations according to various accounting principles in Controlling.

Features

You have the following options for depicting parallel accounting in Controlling:

Depiction Using Additional Accounts

If you depict parallel accounting using additional accounts, you need to decide which accounting principle is relevant for Controlling. You will need to create cost elementsand revenue elementsfor the relevant accounting principle.

Note Note

Transferring values from parallel accounting principles into parallel accounts in Controlling can result in a considerable additional expense particularly for CO internal allocations.

The actual price calculation is not possible where postings are made to parallel accounts.

End of the note.

Depiction Using Reconcilliation Ledger

Allocations within Controlling frequently lead to shifts between business areas and functional areas. Information about these shifts flows via the reconciliation ledgerinto Financial Accounting where it is tracked. This information is required in Financial Accounting for segment reporting or to reflect cost of sales accounting. You can transfer the clearing entries to an additional ledger besides the general ledger.

Results Analysis

Different accounting principles have different requirements with regard to how costs, revenues and provisions are dealt with and reported (for example, percentage of completion versus completed contract method ). To support you in this, the results analysisprovides flexible valuation methods. These methods are reflected in parallel in different results analysis versions.

You must define at least one results analysis version for each accounting principle. You can assign one accounting principle to each results analysis version. You can post the results of the results analysis version to additional accounts or an additional ledger.

If you want to post the outcome of the results analysis version to a parallel ledger, you need to have assigned the addition ledger to the accounting principle of this results analysis version. See Setting Up Depiction Using an Additional Ledger .