Configuring the document type

[former_member200190]

Dear All,

When configuring the document type

1) In what cases do we need to have the

Inversion u2013 0 / 1 / 2 selected.

Pls give a scenario for each inversion option,

for ex., scenario for - No Automatic Inversion etc..

2) Pls give a scenario for the usage of Clearing Cons unit. Do we need to define a seperate item for this

or can we give the Clearing B/S item for this as well?

Many Thanks

Regards,

Kumar

[dan_sullivan · Accepted solution]

1. Inversion is for documents where they are to be reversed in the subsequent period. In the cases where P&L accounts are used it may be necessary for these to not be inverted in the first period of the a new fiscal year.

Manual or automatic entries of an accrual nature are typical for automatic inversion.

2. where profit centers or business areas are assigned the role cons unit, it may be that these are not in balance or need not be balanced for reporting. However BCS requires cons units to be in balance and therefore provides the option to "force" these to balance using a certain account assigned here or in the selected items (or both). As this is optional it may be the BS clearing or it may remain blank, or any other account.

[former_member200190 · Accepted solution]

Thanks Dan.

In the case of Question 1.

What drives inversion - Is it because consolidation functions take exisiting cumulative data that exists in the system into consideration or some other reason which i m missing?

Accrual entry in consolidation - one example pls.

In the case of Question 2.

I need not use this if i'm doing a legal consolidation only. Pls confirm

Regards,

Kumar

[dan_sullivan · Accepted solution]

1. Inversion is driven by enterprise requirements and is not necessary in many cases. In fact, I prefer to not use any inversion documents which allows the exclusion of the period initialization task completely. If occasional accruals are made, they may be simply made in the source ledger and reversed in the subsequent period, or if made in BCS, they may be manually reversed or inverted in the subsequent period.

An example of accrual is when consulting was used during a given period bu the expense is not realized because not invoice has been received for this. Propoer accounting requires this to be recognized in the period for which the consulting was provided, and therefore a temporary entry is made to expense and offest to liability until the invoice is receive at which time the accrual entry is reversed.

2. Whether or not a cons unit balancing item is included in the document type depends on the requirements of the enterprise. For legal consolidations it is typically not required, as the source ledger trial balance should be balanced when loaded and validation may be incorporated to ensure this is the case.

[Former Member · Accepted solution]

Dan, cannot provide all the details, but I respectfully disagree with you in reg. Q 2.

If profit center or a business area is assigned the ConsUnit role, they shouldn't be unbalanced. In case of currency transalation they simply will not survive it. Moreover, the features of new GL allow to get it balanced.

When one uses I/C eliminations in the B/S, the balance is broken. And if it is not desirable, one may configure the system with the automatic return to balancing by using this configuration step..

So, didn't use this functionality yet, but, IMHO, it's what is standing behind the scene.

[former_member200190 · Accepted solution]

Ok, so no harm in creating my doc types with the option - No doc inversion.

If at all i need to invert the documents - i can create a period initialization task for it.

Pls confirm.

Regards,

Kumar

[dan_sullivan · Accepted solution]

Period initialization will do nothing unless there are documents types configured for automatic inversion.

So, if none of these document types are created, there is not need to include this task in the task hierarchy.

Re: Eugene's remarks, I intended to state that these may not be balanced in the source ledger. Thanks for pointing this out Eugene.

[Former Member · Accepted solution]

Oops, Kumar, I didn't really get it.

If you assign the DocType without inversion, you'll not be able to inverse it at your wish. Even with the Init period run. So, please clarify your question.

[Former Member · Accepted solution]

Dan, thanks for answering. It's a very interesting point. I used to work in a project with a matrix consolidation and not balanced B/S regarding the 2nd dimension (profit center).

And yes, there are two opportunities. Either you try to balance it in the source system, by using a new GL or somehow. OR. Transform the unbalanced ECC data in BW before it comes to BCS.

But, in BCS, before the C/T the data must be balanced. Eliminations in the B/S might break the balance of the unit.

So, clearing ConsUnit is just for returning the balance, AFAIK.

[dan_sullivan · Accepted solution]

Yes, Eugene, using the cons unit balancing item in selected items and or document type allows BCS to balance the units automatically and avoids the need to balance in BW or source ledger. However it is a bit risky where legal entity is concerned as these should be in balance from source ledger and or line entries without the need for this.

[Former Member · Accepted solution]

Sorry Dan, probably I misunderstood you.

Consider the data flow:

source ledger (ECC / R/3) -> BW -> BCS.

Do you mean that in case of a matrix, and unbalanced data for the 2nd dimension in ECC, and also in BW, this ConsUnit clearing item will balance the 2nd balance in BCS automatically?

Sorry, if I misunderstood you.

[dan_sullivan · Accepted solution]

Yes, that is what I am stating.

[Former Member · Accepted solution]

I'm afraid that I disagree with you.

IMHO, clearing items (regardless in B/S, P&L or ConsUnit) just automatically return balance to the B/S / P&L data after some entries. But, the prerequesite for it is a balance of incoming data. That means that data from BW to BCS must be balanced already.

[dan_sullivan · Accepted solution]

Eugene, I am afraid I must respectfully disagree with you.

I can only suggest you test this for yourself, as I have expereinced this and thus cannot accept your argument.

[Former Member · Accepted solution]

Ok, Dan, I didn't test it yet. For myself I treat it as an open question.

Hopefully, I'll have time to check it out.

[former_member200190 · Accepted solution]

In your earlier response - what did you mean by -

In fact, I prefer to not use any inversion documents which allows the exclusion of the period initialization task completely.

Regards,

Kumar

P.S. Got confused & the link

[http://help.sap.com/saphelp_sem60ep1/helpdata/en/dc/71d2feac4c864b98db4ee2786faebc/content.htm]

clarified my doubts about period initialization.

[dan_sullivan · Accepted solution]

I prefer not to have any automatic inversion document types at all.

When there are no automatic inversion document types, there is no need for the period initialization task.