Table of contents
1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Definitions
3 Headings submitted to reconciliation
4 Main Transactions Used
4.1. FBL5N (PF1: 2200000000 – WP1: 41150100/41100100)
4.2. FBL1N (PF1: 2300000000 – WP1: 40100100/40150100)
4.3.FBL3N (G/L Accounts)
4.4. GR55 – Z4F1 (Balance Sheet)
4.5. KE30 (Profit & Loss Statement Company Code Currency)
4.6. ZZF_BFC_LIST – Interface transaction for Intercompany
4.7. ZRATE – Used to convert one currency to another
5 Types of Intercompany Difference
6 How to Start the Analysis of an Interco Difference
7 Attachments
Objective and Scope
Objective of this Procedure
The purpose of this document is to show how to solve an intercompany difference.
It will explain which type of differences may appear from company relations in the group, give an example of an analysis to perform and identify and debrief the main transactions used in the reconciliation process.
Scope
This operating procedure (OP) applies to the companies that perform Intercompany Reconciliation, after upload in Tagetik.
Definitions
Tagetik | Intercompany reconciliation tool |
BFC | Business Financial Consolidation |
G/L | General Ledger |
3. Headings submitted to reconciliation
4. Main Transactions Used
- FBL5N
- FBL1N
- FBL3N
- GR55 – Z4F1 (Balance Sheet) - PF2
- KE30 (Profit & Loss Statement Company Code Currency) – WP2
- ZZF_BFC_LIST – Interface transaction for Intercompany
- ZRATE – Used to convert one currency to another
4.1. FBL5N (PF2: 2200000000 – WP2: 41150100/41100100)
Transaction FBL5N is used to display the customer line items from SAP module AR (Accounts Receivable – G/L Account 2200000000)
How to retrieve a sold at Month End:
Seller Company 02002 / Buyer Company 05835.
Set has default layout /INTERCO R2R For FBL5N the buyer company should always be inserted on the field trading partner on customer master
Select the Last day of the month
In the end of the line item display, we will find the total amount retrieved for the customer, shown in the Local Currency and in the Document Currency.
Currency which the transaction is yield Local Currency is the currency which the company reports
Note: When the following message appears:
To display the archived items, go to transaction /n/pbs/fbl5n
4.2. FBL1N (PF2: 2300000000 – WP2: 40150100/40100100)
Transaction FBL1N is used to display the vendor line items from SAP module AP (Accounts Payable – G/L Account 2300000000)
How to retrieve a sold at Month End:
Seller Company 02002 / Buyer Company 05835.
Set has default layout /INTERCO R2R
Select the Last day of the month
For FBL1N the Seller company should always be inserted on the field trading partner on vendor master
In the end of the line item display we will find the total amount retrieved for the customer, shown in the Local Currency and in the Document Currency .
Currency which the transaction is yield Local Currency is the currency which the company reports
Note: When the following message appears:
To display the archived items, go to transaction /n/pbs/fbl1n
4.3.FBL3N (G/L Accounts)
Transaction FBL3N is used to display all the lines items of the accounts of the general ledger accounting.
Set has default layout /INTERCO R2R
Select the Last day of the month
Select the G/L Account which you want to display
For FBL3N the trading partner information should always be inserted on the field trading partner on document level
In the end of the line item display we will find the total amount retrieved for the company, shown in the Local Currency and in the Document Currency.
Currency which the transaction is yield Local Currency is the currency which the company reports
Note: When the following message appears:
To display the archived items, go to transaction /n/pbs/fbl3n
4.4. GR55 – Z4F1 (Balance Sheet)
In order to retrieve the balance sheet accounts of a company we should enter in transaction GR55 run report Z4F1.
Enter the company code
Choose the closing month
Filter by the heading you're analyzing
You'll get the accounts reported under the heading A41100
The balance sheet of the company is generated in the company code currency. Column Cumul will display the cumulative amount until the period select.
In the balance sheet for the purpose of intercompany we need only to focus on the headings submitted to reconciliation. Refer to "Headings submitted to reconciliation" dashboard.
4.5. KE30 (Profit & Loss Statement Company Code Currency)
In order to retrieve the P&L of a company we should go to transaction KE30
- for PF2: Operating Concern = FO01
- for WP2: Operating Concern = controlling area of the respective company (Z006/Z013/Z025/Z026/Z028)
Choose the report - ZZZ-SOLVFC
Currency type is 10 and select the company code and period
Filter by the heading you're analyzing and press F9 - you'll get all the documents impacting that heading
The P&L of the company is generated in the company code currency.
For P&L it's the same as for balance sheet we need only to focus on the headings submitted to reconciliation. Refer to "Headings submitted to reconciliation" dashboard.
To be displayed via FBL3N
To be displayed via KE5Z
Very important: in order to display the line items the P&L account in FBL3N we switch from open items to all items from the beginning of the year until last day of the closing month. This will allow us to retrieve the items for the year.
The amounts reported in P&L is the total by year and not open items.
4.6. ZZF_BFC_LIST – Interface transaction for Intercompany
The transaction ZZF_BFC_LIST is the interface listing for Tagetik.
After executing the ZZF_BFC_COLLECTIVE and ZZF_BFC_CONVERSION we have available listing with the total amount by partner and account.
In order to retrieve the list per company we need to select the following data on transaction ZZF_BFC_LIST.
Example for company 2002:
For PF2/PI2 the consolidation perimeter is SYEP and for WP2 is SYEW.
Change the Reporting Period Reporting Company accordingly
When entering in ZZF_BFC_LIST perform a sub-total per heading, partner and account in order to retrieve the total amount reported per company and heading. 
Note: All the transaction used before the items that appear in the ZZF_BFC_LIST
4.7. ZRATE – Used to convert one currency to another
This transaction is often used to convert a certain currency to another. It is useful for analyzing exchange rate differences and to check revaluation.
Make sure to use Exchange Rate Type "M".
5. Types of Intercompany Difference
Exchange Rate – It's the rate that one currency will be exchanged for another. The exchange rate difference occurs when the buying company uses a different rate from the selling company.
Example: Company A and Company B have an Interco transaction that is carried out in USD. The reporting Currency of both companies is on Euro. If company A books the USD with the rate 0,75€ and company B perform the same posting with the rate of 0,80€., this will lead to an intercompany GAP due to exchange rates differences.
Wrong Account – This type of difference appears when the buying company reports the amount in a different counterpart heading of the selling company.
Example: In an Intercompany transaction, Company A reports on A41100 (Accounts Receivable) and Company B reports on L46900 (Other short term payables). The right counterpart heading is L40100 (Trade Payables). In this case we will have an intercompany difference.
Wrong Partner – This type of difference occurs when we have missing partner information or the incorrect partner is introduced in the posting.
Example: Company A and Company B have an Interco transaction. In the posting of company B we have no partner information. This will lead to an intercompany difference.
Cut-Off – This type of difference appears when the buying company accounts the intercompany transaction in a different period of the one used by the selling company.
Example: Company A books an intercompany transaction on July and company B takes this posting on August. This will lead to an Intercompany difference related to Cut-Off.
Interface – All differences related to Interfaces are related to transaction ZZF_BFC_COLLECTIVE. We have this kind of differences when BOIC SAP interface is not reading the information booked in the accounts.
Example: Company B have posting with company A that is not being picked by the interface. If all the information is fulfilled correctly in the posting the difference is due to the interface from BOIC.
Late posting – When a posting is performed in SAP after the company upload to BOIC. ZZF_BFC_COLLECTIVE and ZZF_BFC_CONVERSION should be run again, following this sequence, in order to have the ZZF_BFC_LIST up to date.
Example: The upload of company A into BOIC is performed at 12 pm, day one, and the local accountant performs a posting on day two. This will generate an intercompany difference.
Late Upload – When the upload in BOIC is performed after the scheduled deadline.
Example: The upload of company A into BOIC was performed after the deadline. Company B had already performed the upload, so this will generate an intercompany difference.
6. How to Start the Analysis of an Interco Difference
Hypothesis: There is a gap of 25.986€ between companies 05978 and 05876.
The first step to solve an intercompany gap is to check it in Tagetik.
Company 05978 reports 0 in A41100 and 5876 25986€ in L40100
To confirm this amounts we need to open SAP - ZZF_BFC_LIST
Since we already know that company 5978 reports 0, we don't need to open this company
Account 2320000000 and 2322919999 are reconciled (total is zero) so the problem is with account 2300000099 document 6511135978.
This document is related with revaluation
The revaluation is done for all open invoices in 5876 L40100 with 5978 - since 5978 is a CAMS company, all invoices were factored to 2232.
In SAP we have 5.054.998,37 USD = 36.272.228,86 CNY
In ZRATE 5.054.998,37 USD = 36.056.042,14 CNY
Reval document = -216.186,72 CNY
36.272.228,86 CNY - 216.186,72 CNY = 36.056.042,14 CNY
Since all the invoices are with BFC Partner 2232, the revaluation document should have partner 2232 instead of 5978.
To solve this in closure, an accrual with doc type SE should be posted to adjust the trading partner.
The posting scheme can be found in Journal entries cockpit and in Intercompany Reconciliation Process : Solving Intercompany Differences.
To solve this in origin, we need to check why the revelation is not running with the correct partner, we would need to contact DT team to confirm the revaluation settings and prevent this issue to happen in the future. Total Difference
The Amount in group currency (E
7. Attachments
Please refer to file
Authorizations & Roles
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Author(s)
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Verification
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Approval
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Catarina Tomé
Vanda Campos
Edmundo Fernandes
Transversal Interco Team
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29/05/2015
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08/06/2015
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11/09/2015
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Version | Date | Description |
01 | 29/05/2015 | New Document |
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Version
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Date
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Description
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SBS-FRM-DRTR-04-050
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29/05/2015
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This operating procedure (OP) applies to the companies that perform Intercompany Reconciliation, after upload in BOIC.
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BOIC | Business Objects Intercompany |
BFC | Business Financial Consolidation |
G/L | General Ledger |
PF1 | SAP Solvay legacy |
WP1 | SAP Rhodia legacy |
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This transaction is used to display secondary cost elements from the P&L in CO:
Example: account 98015SN001 from company 0001.
Period Selection for P&L should always be from the beginning of the year until the closing month D* F* E* are the first letters from the reporting profit centers of the P&L 
Fulfill the field trading partner in order to retrieve the information by partner.
In the case below the total amount of the account is reported with external.
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Exchange Rate – It's the rate that one currency will be exchanged for another. The exchange rate difference occurs when the buying company uses a different rate from the selling company.
Example: Company A and Company B have an Interco transaction that is carried out in USD. The reporting Currency of both companies is on Euro. If company A books the USD with the rate 0,75€ and company B perform the same posting with the rate of 0,80€., this will lead to an intercompany GAP due to exchange rates differences.
Wrong Account – This type of difference appears when the buying company reports the amount in a different counterpart heading of the selling company.
Example: In an Intercompany transaction, Company A reports on A41100 (Accounts Receivable) and Company B reports on L46900 (Other short term payables). The right counterpart heading is L40100 (Trade Payables). In this case we will have an intercompany difference.
Wrong Partner – This type of difference occurs when we have missing partner information or the incorrect partner is introduced in the posting.
Example: Company A and Company B have an Interco transaction. In the posting of company B we have no partner information. This will lead to an intercompany difference.
Cut-Off – This type of difference appears when the buying company accounts the intercompany transaction in a different period of the one used by the selling company.
Example: Company A books an intercompany transaction on July and company B takes this posting on August. This will lead to an Intercompany difference related to Cut-Off.
Interface – All differences related to Interfaces are related to transaction ZZF_BFC_COLLECTIVE. We have this kind of differences when BOIC SAP interface is not reading the information booked in the accounts.
Example: Company B have posting with company A that is not being picked by the interface. If all the information is fulfilled correctly in the posting the difference is due to the interface from BOIC.
Late posting – When a posting is performed in SAP after the company upload to BOIC. ZZF_BFC_COLLECTIVE and ZZF_BFC_CONVERSION should be run again, following this sequence, in order to have the ZZF_BFC_LIST up to date.
Example: The upload of company A into BOIC is performed at 12 pm, day one, and the local accountant performs a posting on day two. This will generate an intercompany difference.
Late Upload – When the upload in BOIC is performed after the scheduled deadline.
Example: The upload of company A into BOIC was performed after the deadline. Company B had already performed the upload, so this will generate an intercompany difference.
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For 5835:
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- For 5978:
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Please refer to template SBS-FRM-DRTR-04-050 Intercompany Reconciliation Process : Solving Intercompany Differences for more intercompany differences examples and Posting Schemes to use.
End of document