Solution Introduction of SAP Intercompany Reconciliation

Intercompany Reconciliation

Overview Introduction

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At the end of this presentation, you will be able to:

<Obtain overview solution of intercompany reconciliation>

Objectives


Agenda

Overview

Business Context

Benefits

Fact sheets


Overview

Intercompany Reconciliation supports

Reconciliation of vendor/ customer open items

Reconciliation of G/L account open items

Reconciliation of G/L accounts(documents)

Intercompany Report of vendor/ customer open items

Homepage


Agenda

Overview

Business Context

Benefits

Fact sheets


Inefficient processes drive up costs, contribute to errors,

and increase time needed to close books

Local close

■ Real time synchronization of all

tasks

■ Cross-system scheduling

■ Automated and repeatable event

based processes

■ Monitoring and control

Group close

■ Automated eliminations,

consolidations, journal entries, and

audit trails

■ Coordinated worldwide closing

schedule

■ Complete visibility over processes

and owners

External reporting

■ Improved transparency

increases investor

confidence

■ Automated and documented

audit trails

Executive

financial review

■ Visual tools help

deliver key insights

and validate data,

calculations, and

divisional results

■ Full cycle

compliance

monitoring and

internal control

Intercompany

reconciliation

■ Automated

reconciliation

■ Standard COA eases

matching

■ Alerts identify

exceptions

■ Workflow based

remediation

Data submission for

group close

■ Unified “lead” ledger

and standardize chart

of accounts

■ Integrated systems,

automated mapping

from local to group

accounts

■ All units submit data to

same system in

common format

Controlling

Consolidations

Internal Audit


SAP solutions support an accelerated financial close

Streamlining reconciliations, monitoring and scheduling, and

regulatory submissions to make local and group closes faster,

more efficient, and less costly. CFO

Operations

(Sales, Production, Purchasing, HR)

Local Finance Organization

Corporate Finance (HQ) Consolidations Intercompany

Reconciliations XBRL Filing

Corporate

Reporting

& Analytics

Remediate Issues Compliance/Governance

IFRS and GAAP Standards

Revenue

Recognition

Local Close

Monitoring

and

Scheduling

Inventory and

WIP

Valuation

Record

Payroll &

Benefits

Costs

Intercompany

Reconciliatio

ns

Operational

Reporting /

Analytics

Audit

Close

Financial

Ledgers

Finance VP Controller

Group Close Local Close

Monitor Risks and Controls

Corporate

Closing Plan

& Monitoring


Closing Process Without Intercompany Reconciliation

Corporate Group Group Closing Process

Elimination of AP/AR

Receivables 1000 Payables 2000

EUR 5.000 EUR 3.000

USD 2.000

Receivables 1000 Payables 1000

USD 3.000 USD 3.500

Company 1300

本地关账流程 Company 1200


本地关账流程 Company 1000 Local closing process

Receivables 2000: EUR 5.000

Payables 2000: USD 3.000

Company 2300



本地关账流程 Company 2000 Local closing process

Receivables 1000: USD 3.500

Payables 1000: EUR 3.000

USD 2.000


Closing Process With Intercompany Reconciliation

Corporate Group

Group Closing Process

Elimination of AP/AR

Receivables Payables

EUR 5.000 EUR 5.000

Payables Receivables

USD 3.500 USD 3.500

Company 1300

Local Closing Process Company 1200



Local closing process



Company 2300







USD 2.000

Intercompany Reconciliation • Find differences as part of local

closing process

• Communicate with responsible

accountants

Company 1300







Company 2300







USD 2.000

Intercompany Reconciliation • Communicate with responsible

accountants

• Post corrections

Company 1300



Local Closing Process Company 1000 Local closing process



Company 2300








Enables analysis early in the

closing process

Avoids differences altogether


Agenda

Overview

Business Context

Benefits

Fact sheets


Faster peer-to-peer intercompany

reconciliation

Headquarters process monitoring

ICR eliminates the biggest bottleneck to your financial close

Streamlined consolidation

Eliminates bottlenecks for a

faster close

SAP Intercompany Reconciliation

Eliminates the biggest bottleneck to your financial close

Reconciliation Process

Automatic

assignment

Data

selection

Communication

Correction

Manual

Reconciliation

New User Experience Intercompany

Reconciliation supports

Reconciliation of vendor/

customer open items

Reconciliation of G/L account

open items

Reconciliation of G/L

accounts(documents)


Agenda

Overview

Business Context

Benefits

Fact sheets


Supported Business Processes

Business Processes Supported by Intercompany

Reconciliation

Reconciliation of inter-

company payables and

receivables

Companies within group

defined as customer/vendor

Customer and vendor master

data with trading partner

information

Reconciliation of vendor

/customer

open items

Reconciliation of open item

managed G/L accounts

Companies within group

defined as G/L accounts

Trading partner assigned to

G/L account master records

Reconciliation of

G/L account

open items

Reconciliation of G/L accounts

(e.g. IC Revenue/Expenses)

Trading partner information

from documents posted to

specific G/L accounts

Reconciliation of G/L

accounts

(documents)


Intercompany Reconciliation Process

Intercompany

Reconciliation

Data

Selection Data Storage

Data

Presentation

& Analysis

Communication

Post Corrections*


Steps in Intercompany Reconciliation

Intercompany

Reconciliation

Retrieve

relevant

data from

various

source systems

Access central

system

(local or group

accountant)

Store relevant

data in

central

system

Assign

documents

automatically

based

on custom.

rules

Assign

matching

documents Find matching

documents

using

customizable

rules

Communicate

with other

users

Posting of

correction

documents

via BAdI

possible


Data Model of Intercompany Reconciliation

Intercompany Reconciliation Data Model (Table Group FBICRC00*)

Company Partner Company Document No. Trans. Currency Amount

Profit Center Partner Profit Center Bus. Area Partner Bus. Area Doc. Type ...

Additional document characteristics

Mandatory characteristics

Any customer definable characteristics

Profit Center Group Region ....


Data Selection

Data selection across SAP systems

• Access via Remote Function Call (RFC)

• Function modules for data selection are available for multiple ERP

releases

• Automatic derivation of company and group account

Integration of Non-SAP systems

• SAP provides a programming interface for data selection of documents

and/or account balances Further Aspects

• Standard validations, e.g. companies, group accounts

• Customer specific validations

• Monitoring / Storing of logs for data selection per company


Architecture

SAP ERP

Other SAP ERP

IC Data &

Results

Intercompany

Reconciliation

Other SAP ERP

RFC RFC

NON-SAP

File Upload

Accounting

Documents

Company 3

Accounting

Documents

Company 2

Accounting

Documents

Company 1

RFC – Remote Function Call


Rules for Reconciliation

Custom defined rules for automatic reconciliation

and

Custom defined rules for reconciliation proposal

Rule Example:

Company = Partner Company

Reference identical

Value identical

Currency identical


New User Experience


Intercompany Reconciliation: Homepage

Alert：Shows the number of partners which

have intercompany reconciliation (IC)

differences according to different object

groups.

Navigates to manual reconciliation after

clicking the bar chart

Overview Chart：Supports three processes

Local view and group view

Navigates to manual reconciliation after clicking

the bar chart

Updates Overview chart after changing the

threshold in Customizing


Intercompany Reconciliation: Monitor

Difference to be

reconciled per partner

Unassigned documents of selected

company;

Flexible layout to show any information;

Contained in reconciliation DB.

Unassigned documents of selected

partner;

Flexible layout to show any information;

Contained in reconciliation DB.


Communication Support I

Mails： Displays latest email in homepage

Has predefined mail templates in multiple

languages

Updates status automatically in the line item

Automatically captures and attaches

reconciliation information

Includes contact person database

Integration with Share Service Creates service requests (AIC)

Automatically derives responsible

team/person

Automatically captures reconciliation

information


Communication Support II

Note/Status Features public and private note

Automatically updates reconciliation

status for line item

Send Reminder

Includes contact person data

Reminds responsible person


Intercompany Report

Overview page： Shows each total difference

between company and its

partner and their

reconciliation status by

table view and company

hierarchy view

Object group page： Shows reconciliation

amount and difference in

object group for company

and its partner, drills down

to line item details

Navigates to reconciliation

monitoring page for manual

reconciliation

Line item page： Displays detailed

information of document

Shows the reconciliation

processing status

Sends mail and reminder to

contact person


System Deployment


Intercompany Reconciliation: System deployment

SAP NetWeaver 2004 or Higher

SAP ECC Server

EA-APPL

SAP-APPL

ICR

SAP NetWeaver 731 or Higher

SAP ECC Server

EA-APPL

SAP-APPL

SAP Business Suite Foundation

EA-FI 200: ICR

EA-FI 200: Renewed ICR Traditional ICR


Delivery

Highlights for Add-on delivery

Flexible release date for delivery; not

restricted by the release date of

business date

Flexible and dedicated support

package can be installed alone

according to standard service

Installs on ERP6.6 (SP09) and above

releases and runs independently

Reducesd dependency on EA_APPL

(SAP_APPL)


System Requirements for Installation

SAP_BASIS 740 SP04

SAP_ABA 740 SP04

PI_BASIS 740 SP04

SAP_APPL 617 SP02

EA-APPL 617 SP02

SAP_BS_FND 747 SP02

SAP_BASIS 740 SP03

SAP_ABA 740 SP03

PI_BASIS 740 SP03

SAP_APPL 616 SP04

EA-APPL 616 SP04 SAP_BS_FND 746 SP04

SAP_BASIS 731 SP09

SAP_ABA 731 SP09

PI_BASIS 731 SP09

SAP_APPL 606 SP09

EA-APPL 606 SP09

SAP_BS_FND 731 SP09

Base on SAP ECC 6.0 EHP7

Base on SAP ECC 6.0 EHP6H

Base on SAP ECC 6.0 EHP6


You should now be able to

< Introduce overview solution of intercompany reconciliation >

<Know the business content and mainly function of intercompany

reconciliation>

Summary