Accounts under LegalApp vs Finance Application

[Former Member]

Hi guys

I am new to SAP BPC and it might be redundant to ask the difference between Legal App and Finance application.

Please verify the following. According to my understanding, the finance application gives you the ability to do currency translations and intercompany eliminations if you are a single entity and have no subsidiaries.

The Legal application gives you the ability to have complex consolidation rules (with ownership and subsidiaries) along with built-in business rules for currency translation and inter company elimination.

If these definitions are right. how should the accounts be strucutred. Should we use the same accounts for managment vs legal consolidation. Or do we have seperate accounts?

[Former Member · Accepted solution]

Yes. You would need these dimensions in legal consolidation. You need to have right set fo rpoerties on these dimensions to perform legal consolidation.

Ravi Thothadri

[Former Member]

Like I said earlier, legal consolidation has fixed set of rules to satisfy legal requirements.

Mgt consolidation has process and requirements that suit each company.

Ravi Thothadri

[Former Member]

Great answers guys! Now I know that I want to implement legal consolidation as the client is not interested in having management consolidation.

In that case, my next question would be -

Is the same setup (e.g. properties in the dimensions like account, entity, intercompany, currency etc.) required when you are using business rules vs. script logic for intercompany elimination and foreign currency translation?

[Former Member]

You can do any consolidation if you keep the right members in the Entity dimension. For example, for legal you must keep company codes as members in the entity dim and for management consolidation you keep say, profit center in the entity. Processes are same depends how to define management consolidaton.

Ravi Thothadri

[Former Member]

What would you say?

A typical big company operating in various countries and having subsidiaries will have to do management and legal consolidation both right?

A management consolidation will include currency translations and eliminations while legal consolidation will include both of these plus consolidation like minority interest, equity etc.

Please comment.

[Former Member]

Not necessary that every company will perform the Management Consol also. Its purely based on your client requirement. Also, currency translation and IU elim will be present for legal consol also.