Organisation Hireachy

[Former Member]

Hi,

In the Company which iam implementing has got 3 different legal entities under it.

For each of the Legal Entites we have got 2-3 plants functioning under it.

I have planned to make the plants as the Profit Centres and Legal Entites as Company Codes.

But the Company needs a consolidation of all the 3 company codes it is only for MIS Reporting and it is not a legal consolidation.

Options Thought:-

1, Create Common Chart of Accounts for all the Company Codes and execute the Financial Statements by specifiying the chart of Accounts in F.01 to have an Consolidated of all the Companys. I cannot use Group Chart of Accounts as it is not a Legal Consolidation.

2. Create Segment treating it as an Group and assign all the Profit Centres under different Comapny Codes and extract Segment (Group) Wise Finacial Reports through F.01.

Kindly let me the Pros & Corns involved if I use 2nd Option as we have got Cross Comapny Code Transactions also involved as per my understanding Segment is a Client Level Hireachy and may not cause any hindrance while entering cross company code transactions.

Reason for Opting 2nd option is we have got other company codes which will be implemented in near future and even though those Comapnys use a different Chart of Accounts other than what iam using in the current phase I can still have an Consolidated Financial Statements through Segment Reporting and i can also use Segment wise Payables/Receivables Reports effectively.

As Iam using Profit Centre Accounting i cn have plant wise P&L and B/S through document splitting in 6.0 and company code wise statements are also possible.

In our business process there is no other way in which i can use Segment apart from using it as a Group.

Assumptions:- Same Controlling Area will be used for all the Comapny Codes for the present and future company codes.

Kindly let me know if iam going in the right direction any suggestions on this would be really helpful in finalising my Arc Structure.

Regards

Sunil

[Former Member]

Hi, Let me try. 1) Yes your first option will work and you will consolidated financial statement but without legal consolidation. 2) There is no need for segment reporting. Altogether Segment reporting involves Business or Geographical dimensions. You can have consolidated report by creating report thorugh report painter, by having PC Group for each Company code at each column and have a total column summing up all columns. And it shall give perfect consolidation since New Gl functionality shall be used through ECC 6.0. Trust this helps much! Cheers!

[Former Member]

Hi Ashok,

Thanks a lot for your inputs.

Regards

Sunil

[Former Member]

Hi Sunil, You are welcome. Let me know what more inputs you require to close the thread as answered. I would like to offer 100% inputs. Please at the same time, do not forget to encourage us to offer our support spontaneously! Cheers!

[Former Member]

Hi Ashok,

Sorry Earlier i forgot to close the post

I was in a dilema how do i approach which you have cleared.

Thank you once again

Regards

Sunil

[Former Member]

I don't get it... if its purely for MIS purposes, and you are already assigning a Co Area to the company codes, is there a need to do anything further...

Or I read your post wrong...

Cheers.

[Former Member]

Hi Ram,

Even though iam using the same controlling area for all the companys i may not be able to extract finacial statements at a Group Level.

MIS Reports here state that the Company should be able to extract information whenever needed as how the business is running at a Group Level in short Group wise Balance Sheet & P&L are required but this is not for legal compliance but it is only for internal purpose.

I hope it is clear.

Regards

Sunil

[Former Member]

Hi,

Any inputs on the said issue

Regards

Sunil