Dealing with multiple fiscal year variants in Controlling

[Former Member]

My current client, a US based company, is setting a new (production) plant in Russia.

Current SAP template is using new G/L and my client wishes to use 2 ledgers:

1) Leading ledger, US GAAP, assigned fiscal year variant running as from April in a 4-4-5 week period definition

2) a non-leading ledger, Russian Accounting Standard, assigned fiscal year is running as from January to December.

The assigned controlling area is having a similar fiscal year variant as that of the leading ledger.

My client has two windows for reporting;

1) For US GAAP at the end of the fiscal month

2) For RAS at the end of the calendar month

Currently we perform CO functions (like WIP calculation, variance) calculation at the end of the fiscal month end and comply to US GAAP reporting requirements using parallel valuations (seperate ledgers or parallel accounts).

Our main challenge is that f.e. we cannot calculate WIP at the end of the calendar month end  and report it as such in our financial statement version based on our non-leading ledger.

I can't believe we are the first large size company which is experiencing this kind of problem and looking forward receiving your feedback to have overcome this challenge.

[Former Member · Accepted solution]

i've started to read documentation, but as a general note the following is mentioned:

• Parallel cost of goods manufactured does not support different fiscal year variants for the parallel ledgers.

As it seems this does not resolve my challenge.

Your contribution is appreciated though!

[ajaycwa1981 · Accepted solution]

Ahhhhhhhh!! Thats Bad!!

Then I think your consulting skills to convince your client would be of utmost use to you at this moment

Ajay M

[ajaycwa1981]

Hi Roel

This is designed in this way..

Controlling Module is integrated with Leading Ledger and follows the reporting period of LL only. All your closing steps will have to be as per Fiscal Month and NL will only receive the postings and report it in a different reporting period

If your requirement is to do Closing and Planning as per Local Reporting Period, then you would need a New Controlling Area for the Russian Company Code. With one controlling area, you will have to fall in line with the US Reporting Time Frame

Ajay M

[Former Member]

Hi Ajay,

i need to close/plan as per both closing periods (US GAAP as well as RAS).

Working with an alternative controlling area with local reporting period would create similar issue but than for US GAAP reporting.

I believe only solution is to do manual calculations at calendar month end and post WIP results / Variance calculations directly to NL ledger.

[ajaycwa1981]

Exactly.

CO is integrated with LL only, as I said. So, you can report taking either of them as the basis

If you are fine with Manual postings, you can use that option

Ajay M

[ajaycwa1981]

One more point..

If you have Material Ledger and Parallel COGM function from EhP5 active, you can perform CO Closing steps based on both ledgers

Ajay M

[Former Member]

• Parallel cost of goods manufactured does not support different fiscal year variants for the parallel ledgers.

This i read in the documentation of the COGM business function.