Multiple company codes with multiple ledgers

[Former Member]

Dear All,

Please find below my situation:

GROUP ABC

Sr No Company Codes Country Currency Fiscal Year

1 A company code INDIA INR Apri-March

2 B company code INDIA INR Apri-March

3 C company code United Arab AED Jan-Dec

4 D company code USA UDS Jan-Dec

5 E company code INDIA INR Apri-March

6 F company code INDIA INR Apri-March

We are planning to have 1 contolling area which will have FY as April to March and Currency as INR

We are planning to have one Chart of Depreciation and under that different depreciation area like below

In Asset For company code A, B, E and F the chart of depreciation will have 01, 15 depreciation area

For company codes C and D , under same COD we are planning to have 25 and 26 depreciation area respectively for C and D

For dep area 01, 15 Fiscal year will be April to March and for Dep area 25 and 26 fiscal year will be Jan to Dec

For company codes A. B, E and F we will have one leading ledger and for Cpomapny code C and D we will have leading ledger (April to March) and one more non leading ledger (Jan to Dec) so that their reporting can be done in their respective countries also.

Leading ledger will have currency as INR

Please suggest if we are going in the right way also. Some one suggested to go for 2 controlling areas also but their will be issue in cross company cost allocations and consolidation

Client want to see books of Company code A, B, F and F in INR as well as in USD.

Client want to see books of Company code C and D in AED and USD respectively and as well as in USD for both. Mean they want to have one common currecny for all company codes i.e. USD but along with common currecy i.e USD they also want to have main currency for all company codes as their primary currecny.

Transactions in company code A,B,E and F will be carried out in INR and in company codes C AND D transaction will be in AED and USD respectively.

Please suggest us on the same.

Also GROUP company is not listed. It is called a group since all the compnay is of one owner. All the company in India and outside India have their own balance sheet and P&L

With Regards

Nivedita Tomar

[Former Member]

Hi

As per the above answer , i am agree with Fit 4 Nothing , but response number 4 you can go for the one Controlling area , the issue you may face in future i.e. controlling area currency should one either INR or USD or AED, you can get the reporting either in INR or the other currency which you choice for controlling area, else you can develope a Z report for Currecny Wise reporting, My advice to you should go ahead with the one controlling area.

One more thing activate the Group currecny , so that you can consolideate the report in one currency.

Thanks

Amit Kumar

[Former Member]

Dear Team,

I request you to please elaborate little more that you have written.

Regards

Nivedita

[Former Member]

1). You can have Leading and Non-Leading ledger concept without any issues

2). You can have same chart of depreciation for all company codes with out any issues

3). You can also have same chart of accounts or different chart of accounts for the above company codes based on your requirement.

4). But...you can not have same controlling area for the above company codes since you have different different fiscal year variants which are not even match with the ending and starting period.

So you need to think alternate solution for this controlling area concept and rest of the structure you given will work fine..

Thanks

Fit 4 Nothing