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 Company 2100
Local Closing Process
Company
Local 1000
Closing Process Local Company 2000
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 Closing Intercompany
1100
Process Company 2100
Local Closing Process
Company Intercompany
1000
Find Reconciliation
differences as part of Company 2000
Local Closing Process Local Closing Process
Local ClosingProcessCommunicate
Enable
local closing with
analysis responsible
early
process inLocal
the Closing Process
accountants
closing
Communicate process
with responsible
Receivables 2000: EUR
Post5.000
corrections Receivables 1000: USD 3.500
Avoid differences altogether
accountants
Payables 2000: USD 3.500
3.000 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
Send
Add
document
template
any customer
and
based
using mails
definable
usingfunction (e.g.
NavigationDocuments
Tree customizable
processing
information
business
status
from
postrules
selected
correction
documents
document)
Display original FI document in
operative system

Delete assignments

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