How are eliminations and voting structured in the SAC?

Group reconciliations and eliminations are necessary as part of the consolidated financial statements. Consolidation solutions such as Group Reporting and BCS are used for the actual posting and preparation of the legal consolidation and the financial statements.

The SAC offers the possibility to create interactive reports with which data from various sources can be displayed and analyzed in the form of tables, diagrams and other visual elements.

The benefits of the reports include real-time analyses, visualizations, integration of various data sources and integration with other SAP solutions. In addition, various scenarios can be displayed as planning scenarios. You can read more detailed information about SAC and its benefits here.

Scripts can be used to add functions to these reports. These can be used to carry out group reconciliations in the SAC and display them in reports, as described below.

Intercompany reconciliations (IC reconciliations)

In the IC reconciliation, the IC postings are compared in order to determine the differences, e.g. in expenses or income, and thus make it possible to correct them.

As part of the preparation, the data model and the reports are set up and the extension of the IC reconciliation is programmed.

Data on the following points is required for the calculation for the respective companies:

• The companies with the respective partners
• The items and amounts of own liabilities/expenses
• The items and amounts of own receivables/income
• The items and amounts of the partner company’s liabilities/expenses
• The items and amounts of the partner company’s receivables/income
• The items and amounts of the differences between the partner’s own liabilities/expenses and receivables/income
• The items and amounts of the differences between the partner’s own receivables/income and liabilities/expenses

In this example, all receivables, income, liabilities and expenses of Hamburg GmbH and Berlin GmbH are reconciled.

Hamburg GmbH holds receivables and income from Berlin GmbH in the amount of € 100.

The total and the resulting differences of the respective own receivables/income and liabilities/expenses are initially written in a separate column.

In the report, the script for the IC reconciliation is executed by clicking a button:

Report before the IC vote

Report after the IC vote

The respective differences are listed and totaled in the “IC reconciliation” column. The total can be used to see whether there are any differences.

In the IC reconciliations, the companies have a view of their respective company and partner company (single company view) on the basis of authorizations.

The reports can be customized according to requirements, e.g. structure according to the individual company view.

This report is structured according to the individual company view “Berlin GmbH”. The IC reconciliation procedure is similar to that described above, with the only difference being that the individual company Berlin GmbH was filtered.

Before the IC vote

After the IC vote

This report is structured according to the individual company view “Hamburg GmbH”. The IC reconciliation procedure is similar to that described above, with the only difference being that the individual company Hamburg GmbH was filtered.

Before the IC vote

After the IC vote

Conclusion:

The SAC not only offers powerful tools for creating interactive reports and real-time analyses, but also enables complex reconciliations to be carried out within the consolidated financial statements.

Thanks to the integration of various data sources and the ability to expand the reports with scripts, companies can quickly and easily carry out an IC reconciliation with actual and plan data as part of management consolidation.