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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)
4.2. FBL1N (PF1: 2300000000 – WP1: 40100100)
4.3.FBL3N (G/L Accounts)
4.4. KE5Z – Profit Center Line Items
4.5. GR55 – Z4F1 (Balance Sheet) – PF1
4.6. GR55 – Z4S1 (Profit & Loss Statement Company Code Currency) – PF1
4.7. F.01 (Balance Sheet) - WP1
4.8. KE30 (Profit & Loss Statement Company Code Currency) – WP1
4.9. ZZF_BFC_LIST – Interface transaction for Intercompany
4.10. 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 BOIC.

Definitions

Headings submitted to reconciliation

Main Transactions Used

1. FBL5N
2. FBL1N
3. FBL3N
4. KE5Z – Profit Center line items
5. GR55 – Z4F1 (Balance Sheet) - PF1
6. GR55 – Z4S1 (Profit & Loss Statement Company Code Currency) – PF1
7. F.01 (Balance Sheet) - WP1
8. KE30 (Profit & Loss Statement Company Code Currency) – WP1
9. ZZF_BFC_LIST – Interface transaction for Intercompany
10. ZRATE – Used to convert one currency to another

4.1. FBL5N (PF1: 2200000000 – WP1: 41150100)

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 00001 / Buyer Company 00005.
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 yieldLocal 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 (PF1: 2300000000 – WP1: 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 00001 / Buyer Company 00005.

Set has default layout /INTERCO R2R Select the Last day of the monthFor 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 yieldLocal 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.
How to retrieve a sold at Month End:
Seller Company 00292 / Buyer Company 05672.
Set has default layout /INTERCO R2R Select the Last day of the monthSelect the G/L Account which you want to displayFor 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 customer, shown in the Local Currency and in the Document Currency.
Currency which the transaction is yieldLocal 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. KE5Z – Profit Center Line Items

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.

4.5. GR55 – Z4F1 (Balance Sheet) – PF1

In order to retrieve the balance sheet of a company we should enter in transaction GR55 run report Z4F1.

Enter the company codeChoose the closing month
After performing the previous selection execute the report.


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.
Example:
Below we will find all the accounts in company 0001 for July 2014 that belong to Accounts Receivable.
Line items displayed via FBL3NLine items displayed via FBL5N

4.6. KE30 (Profit & Loss Statement Company Code Currency) – PF1

In order to retrieve the P&L of a company we should go to transaction KE30
 - for PF1: Operating Concern = Fo01

 - for WP1: Operating Concern = controlling area of the respective company (Z006/Z013/Z025/Z026/Z028)

You'll find several available reports, but you can choose this one - ZZZ-SOLV00-C

then fill the data as per image below (adapting the period and the company code),

After performing the previous selection execute the report. 



The P&L of the company is generated in the company code currency. First column contains the P&L headings and Value Fields, the second column the amount reported is from the selected period and the third one for the full year.
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 of 6* and 7* 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.
To be selected from first day of the year until last day of the closing month.

The total amount of 702* is equal to what was reported in the P&L. Then perform subtotal by partner to retrieve the total amount per company.

For account 98015SN001 enter in transaction KE5Z and perform the selection according to point 4 for KE5Z.

Global amount displayed should be equal to the one retrieved by the P&L.

4.7. F.01 (Balance Sheet) - WP1

In order to retrieve the balance sheet of a company we should enter transaction F.01 and choose the variant entering in the field "Created by" the user "PT63001747".

Change Company Code, Reporting year and periods and Comparison year and periods.



Execute the report.
Balance Sheet is reported in the company code currency.
In the balance sheet, for the purpose of intercompany, we need only to focus on the headings submitted to reconciliation, so we can do a find by Heading or Account to find it.

4.8. KE30 (Profit & Loss Statement Company Code Currency) – WP1

In order to retrieve the balance sheet of a company we should enter in transaction KE30.








Insert the operating concern and click enter.
Choose report ZZZ-SOLVFC- L2015 - Income Statement









And Execute.
The following screen will appear:
In currency type choose key 10 for company code currency or B0 for operating concern currency
Enter the fiscal year, period
and company code.

And Execute.













You'll retrieve:
In navigation, choose the field Trading Partner. Then, choose the one you're analyzing from the table
You can see F00 (balance at December 31st from the previous year) and F99 (balance that will be extracted to BOIC). Also, we can check the balances by Heading in this transaction.

4.9. ZZF_BFC_LIST – Interface transaction for Intercompany

The transaction ZZF_BFC_LIST is the interface listing for BOIC. 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 0001:
Reporting Period Reporting Company


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.

4.10. 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.

Date of Conversion

Transaction Currency
Amount to convertLocal Currency
Make sure to use Exchange Rate Type "M".

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.

How to Start the Analysis of an Interco Difference

Hypothesis: There is a gap of 1.557.842€ between companies 05835 and 05978.
The first step to solve an intercompany gap is to check it in BOIC.
Total Difference
The Amount in group currency (EUR)
The Amount in local currencyThe Amount in trransaction currency
Then, go to transaction ZZF_BFC_LIST to check the information that was uploaded from SAP to BOIC:
Since we are in PF1, the BFC Consolidation Perimeter is SOLP








And Execute.
The following screen should appear. In here, we have information of all companies that company 5835 has relations with and that was extracted to BOIC.
To get the information needed, make a filter by CoCode BFC and Heading.








Make a subtotal by G/L Account to see in which accounts does company 5835 report with 5978 and search for the reason of the gap.


In this case, the accounts to use are 2300000000 and 2320000000.
Before investigating further, check the side of the other company (5978), running ZZF_BFC_LIST in the same way.
We shall retrieve the following information:

The only account that reports in this heading, with this trading partner is the customer account (2200000000).
Between companies, we see that company 5835 reports 8.565.815,71€ and company 5978 reports 10.143.659,56 € - here is our 1.577.842 € gap.

Note: Some companies are not part of Backoffice scope so Backoffice are not able to consult them in SAP. To confirm this, there is a List of Companies available in the GAR team site or table ZZF_T001_MGT_V in SM30. Besides this information, we can, for example, also check if they are Rhodia Legacy or Solvay Legacy, company code in SAP and in BOIC and the contacts.

The next step is to check the accounts identified previously in the Interface:

• For 5835:

Since 2300000000 is the vendor account, we open transaction FBL1N:

In the vendor master, insert the corresponding Trading Partner




Open items at the last day of the reporting month


Then Execute. You'll retrieve the following information:


The other account present in the interface of 5835 is 2320000000. To see the line items of this account, use transaction FBL3N:

Insert the Account and the Company Code.




See the open items at the last day of the reporting month.

Then Execute.









Check if the sum of the total amount of both accounts is the same as given in ZZF_BFC_LIST.
1.052.273,72 + 7.513.541,99 = 8.565.815,71

• For 5978:

There is only one account reporting in this company side. That account is 2200000000, the customers account. To analyze it, open transaction FBL5N:


In the customer master, insert the corresponding Trading PartnerOpen items at the last day of the reporting month












Then Execute.



The total amount of this account corresponds to the total amount in ZZF_BFC_LIST.

Making the comparison between both companies
In order to identify the problem, we'll need to compare the values in the vendor/customer accounts of both companies. To make it easier, when you have several line items, you can extract it to excel .


Go to








There, checks if all documents in customer account (5978 side) correspond to the ones in vendor account (5835 side) by using reference field (usually is composed by the company code + the document number).









All the documents in vendor account are contained in the costumer account. But on the other side there are several unpaired documents.











Compare these values with the ones in account 2320000000.



In the assignment field, find the PO number. When opening the invoices image from the customer account documents, we can identify the PO number:


The first 10 digits correspond to the PO number, the remaining refer to the PO line. In this example, we find PO 45122808015, line 10.


Making a subtotal by PO number, we'll figure that the documents on FBL5N (5978 side) correspond to the ones in account 2320000000. However, the amount in 5835 side includes VAT, which doesn't happen in the documents reported in the customer account, has seen below.

5978 side 5835 side


If we check the total amount of this missing invoices, we'll see that on 5835 customer account we find 9.091.385,84 €. The total amount of account 2320000000 is -7.513.541,99 €. The difference between them is 1.577.843,85 €, which corresponds to the difference we have in BOIC. Therefore, the difference is due to VAT not reporting on 5978 side.
To solve this difference, we book the invoices on 5978 (for a permanent solution) or perform an accrual for the VAT amount and reverse it in the next month.

Attachments

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