Intercompany

Reconciliation
With SAP ERP
 Closing Process Without Intercompany Reconciliation

Company 1300 Company 2300

Company
Local Closing1200
Process Local Company 2200
Closing Process
Company 1100
Local Closing Process Local Company 2100
Closing Process
Company
Local 1000
Closing Process Company 2000
Local Closing Process
Local Closing Process Local Closing Process
Receivables 2000: EUR 5.000 Receivables 1000: USD 3.500
Payables 2000: USD 3.000 Payables 1000: EUR 3.000
USD 2.000

• Analysis of differences Corporate Group

difficult Group Closing Process
• No communication support Elimination of AP/AR
between local and group
accountants Receivables 1000 Payables 2000
• Posting Period closed EUR 5.000 EUR 3.000
already USD 2.000
Payables 1000 Receivables 1000
• … USD 3.000 USD 3.500

 SAP AG 2005, Intercompany Reconciliation, 2

 Closing Process With Intercompany Reconciliation

Company 1300 Company 2300

Company
Local Closing 1200 Local Company
Process Reconciliation 2200
Closing Process
Company
Local Intercompany
Closing 1100
Process Local Company 2100
Closing Process
Company Intercompany
1000
• Find Reconciliation
differences as part Company
of local 2000
Local Closing Process Local Closing Process
Local Closing•ProcessCommunicate
Enable
closing with
analysis
process responsible
early inLocal
the Closing Process
accountants
closing
• Communicateprocess
with responsible
Receivables 2000: • EUR
Post corrections
5.000 Receivables 1000: USD 3.500
Avoid differences altogether
accountants
Payables 2000: USD 3.000
3.500 Payables 1000: EUR 5.000
3.000
USD 2.000

Corporate Group
Group Closing Process
Elimination of AP/AR

Receivables Payables
EUR 5.000 EUR 5.000
Payables Receivables
USD 3.500 USD 3.500

 SAP AG 2005, Intercompany Reconciliation, 3

 Intercompany Reconciliation Process

Data Selection Data Storage

Data Presentation
Post Corrections *
& Analysis

Communication

* Available through programming interface (BAdI)

 SAP AG 2005, Intercompany Reconciliation, 4
 New Reconciliation Functionality in mySAP ERP

Agenda
 Single Steps of Intercompany Reconciliation
 Supported Business Processes
 Data model
 Data selection and storage
 Data presentation and reconciliation
 Communication support
 Availability
 Technical aspects

 SAP AG 2005, Intercompany Reconciliation, 5

 Single Steps of Intercompany Reconciliation

 Retrieve relevant data from various source systems

 Store relevant data in central system
 Assign documents automatically based on customizable
business rules (hard rules; e.g. same reference number)
 Access central system (local or group accountants)
 Find matching documents using customizable business rules
(soft rules; e.g. same document date, transaction currency,
and amount)
 Assign matching documents
 Communicate with other users
 Enhancement of functionality possible through BAdI (e.g.
posting of correction documents in operative and/or
reconciliation system)

 SAP AG 2005, Intercompany Reconciliation, 6

 Supported Business Processes

 Reconciliation of Open Items at key date

 GL accounts with open item management
 Customer/vendor accounts with open item management
 Reconciliation of documents according to posting date

 SAP AG 2005, Intercompany Reconciliation, 7

 Data Model

Mandatory characteristics
 Company
 Partner company
 Document Number
 Transaction currency
 Amount in transaction currency

Additional characteristics
 Any additional document characteristics
 Profit Center
 Partner Profit Center
 …
 Any customer definable characteristics

 SAP AG 2005, Intercompany Reconciliation, 8

 Data Selection with SAP-Integration

SAP Integration
 Data selection across SAP systems
 Access via RFC (Remote Function Call)
 Function modules for data selection are available for
 4.6C
 R/3 Enterprise
 SAP ERP
 Components for data selection
 FI – Documents
 FI – Open Items on GL accounts
 FI – Open Items from sub-ledgers
 Automatic derivation of
 Company from company code
 Group account from operative account

 SAP AG 2005, Intercompany Reconciliation, 9

 Data Selection from Non-SAP Systems

Non-SAP systems
 SAP provides a programming interface for the data selection of
documents and/or balances
 Pull principle
 Data selection program calls customer specific data selection logic (BAdI)
 Data selection program stores data in ICR database
 Example: Read from legacy system
 Push principle
 Non-SAP application calls SAP function module
 SAP function module stores data in ICR database
 Example: customer creates web transaction for supplying data

 SAP AG 2005, Intercompany Reconciliation, 10

 Data Selection & Storage: Open Items

BKPF BSEG SL Ledger in Table

Control tables Group FBICRC00x
• RFC destinations Open Items
• Last selection BAdI
• ...
BAdI

Data selection process

Reconciliation System

BAdI

BKPF BAdI BKPF BAdI

Documents
Open Items BSEG Open Items BSEG

SAP System A SAP System B Non-SAP System 1

 SAP AG 2005, Intercompany Reconciliation, 11

 Data Selection & Storage: GL Accounts

SL Ledger B in Table SL Ledger A in Table

Control tables Group FBICRC002 Group FBICRC002
• RFC destinations
• Last selection
• ... BAdI BAdI

FI Posting
Data selection process
Reconciliation System

BAdI

BAdI BAdI
SL Ledger in Table SL Ledger in Table Documents
Group FBICRC002 Group FBICRC002

SAP System A SAP System B Non-SAP System 1

 SAP AG 2005, Intercompany Reconciliation, 12

 Data Selection – Further Aspects

Pre-requisites
 Data delivery from the source systems contains global
characteristics

Standard validations
 Valid companies
 Valid group accounts

Customer specific validations

 SAP provides BAdI
 Examples for customer specific validations
 Valid combinations of company/profit center
 Valid characteristics for any sub-assignments
 ...

Monitoring
 Storing of logs for data selection per company
 Information: date, time, user, …

 SAP AG 2005, Intercompany Reconciliation, 13

 Data Storage

Technical aspects
Both totals and documents are stored in reconciliation system using
standard SL functionality

 Standard reporting tools for FI-SL are available for intercompany

reconciliation data:
 Report Writer / Report Painter
 Drill-down reporting
 Data export to SAP Business Information Warehouse

Functional aspects
Changes to documents will not be overwritten by new data selection
 Reconciliation of Open Items
 Data selection program determines whether document has been transferred
before – only new documents are added; cleared documents are deleted
 Reconciliation of documents
 Delta selection (only newly posted documents are transferred)

 SAP AG 2005, Intercompany Reconciliation, 14

 Data Selection, Storage, Presentation, Analysis

Summary
 Select data from operative systems (e.g. as scheduled
background job from SAP systems and flat file upload
for non SAP systems)
 Store data in central Reconciliation System (ERP2004)
 Assign documents automatically using customizable
rules (e.g. matching reference numbers)
 Present data to accountants responsible for reconciling
differences (local accountants or group accountants –
depending on organizational structures)

 SAP AG 2005, Intercompany Reconciliation, 15

 Data Presentation: User Interface Layout

Unassigned documents of Unassigned documents of

selected company; flexible selected partner; flexible layout
layout to show any information to show any information
contained in Reconciliation DB contained in Reconciliation DB

Differences to be
reconciled per
partner Assigned documents for selected business relationship

 SAP AG 2005, Intercompany Reconciliation, 19

 Data Presentation: User Interface Functions

Show/HideAssign
FindSet
matching
communication
Senddocument
template
Add anyand
customer
based
using mails
definable
using function
NavigationDocuments
Tree customizable
processing
information
business
(e.g.
status
frompost
rules
selected
correction
documents
document)
Display original FI document
in operative system

Delete assignments

Change layout: Display other fields, Create private and public notes;
change sort order, create subtotals, etc, create attachments; start workflow

 SAP AG 2005, Intercompany Reconciliation, 20

 Data Presentation and Reconciliation Functionality

Functionality
 Assign documents / delete assignments
 Set status (e.g. communication and processing status)
 Find matching documents using customizable rules
 Correct transaction currency and amount
 Correct amount, wrong transaction currency
…
 Communication support
 Template based mails
 Contact person database
 Customer specific functions through BAdI
 Standard functions can be deactivated

 SAP AG 2005, Intercompany Reconciliation, 21