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Using of Business Areas for GAAP Financial Statement

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Dear Experts,

 

Please send your expert views for the below scenario.

 

Current Status

SAP ECC 6.0, Classical Ledger Used

No Plans to Move to New GL

Company say (1000)HQ in US

Company Code say(1100) in India generates financials statements in SAP as per US GAAP.

India GAAP financials are prepared outside SAP.

Business Area is not at all used either by HQ or India

 

Requirement;

  • USGAAP and INDIA GAAP financial statements need to be generated in SAP

        Note: Already Special Purpose Ledger & Account solution are ruled out due to various reasons

  • All the IGAAP Entries would be doc type SA, Posting Key 40 Debit Exp/Asset and Posting Key 50 Credit Accruals etc
  • We dont expect any other type of IGAAP entries.

 

Approach.

  • Can we use Business Area say (IGAP)to capture IGAAP Postings in 1100 Company Code?

          Note: Business Area is not at all used in SAP either by HQ or India

 

Procedure

  • Create a Business Area say IGAP
  • Post IGAAP entries in 1100 Company Code with Bus Area say (IGAP)
  • Generate US GAAP Financials in 1100 Company code without Business Area
  • Generate IGAAP Financials in 1100 Company Code with a combination of Blank and IGAP Bus Area

 

Ex: In F.01 ( Standard Finanacial statement report)

     a) Execute US GAAP Fin statement as below

         In F.01 , in the Business Area field under maintain selections " give Business Area not equal to Blank"

         Execute the report - US GAAP Financial statement is generated

 

     b) Execute IndiaGAAP Fin statement as below

         In F.01 , in the Business Area field under maintain selections " give Business Area not equal to Blank and give business Area IGAP"

         Execute the report - India GAAP Financial statement is generated.

 

Please let us know what would be the implications and your expert views.

Like Consolidation, Financial Reporting etc


Your comments are highly appreciated and would be rewarded too.

 

Regards,

SB


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