BCS - Total Divestiture

[Former Member]

Hi Experts,

If I have do a total divestiture for one consolidation unit in period 12, 2006, SHould I remove the consolidation unit in the hierarchy??

If i should remove the consolidation unit in the hierarchy, When the perfect time to remove it? is it after do the consolidation tasks for 2006 or before it??

thank you for your advise.

[dan_sullivan]

I suggest you DO NOT remove the unit from the hierarchy, but update the cons group to indicate the period and year of the divestiture.

Leaving the cons unit in the hierarchy allows for reports in standard mode to include the historical data for this cons unit in year-to-year comparison reports.

Removing the cons unit will cause any comparison reports for year-to-year to exclude the data for this unit, unless you explicitly choose the reporting made restatement and provide the reference period and year as 12/2006.

[Former Member]

in case , the total divestiture happen in beginning of the period 2007, do i have to upload the RFD for the "divest cons unit"?

thanks for replying.

[dan_sullivan]

When the divestiture occurs at the beginning of the period, this should be indicated on the cons group master data (check DABP - Divestiture at Beginning of Period). Bringing in the RFD should be okay, and is absolutely necessary when using periodic data collection. This ensures the divesting entries are included, which should make the balance sheet balances reduced to zero or insignificant values.

[Former Member]

Let say, RFD 2007 for cons unit A(which is be divested at beginning of period 2007) contain following :

Interest Income (trading partner : B) : -2000

RFD 2007 for cons unit B contain following:

Interest expense (trading partner : A) : 2000

If the RFD (Cons Unit A) is uploaded for 2007, then there will be an elimination for the interest income/expense (since Cons Unit A still exist in the hierarchy). Even if the master data has already be updated with the divestiture information, system still eliminate those transactions.This is not a correct elimination because Cons Unit A has already been divested. Don't you think so? or do i miss understanding about the process?

Thanks for replying.

[dan_sullivan]

The interest income is still valid for A and the expense is valid for B. As long as you also execute the Cons Group Changes for posting level 00, 10 and 20, which creates posting levels 02, 12 and 22 entries, you should still be okay.

My suggestion is to try this first is a test environment if possible to see the result.