GR-1010 SAP Group Reporting - Two Parent Structures - a brief

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Example : Two parents are there for a Consolidation Unit X and  A - one owns 60 and B other owns  40 percent - how to set up these in SAP Group Reporting if X, A and B are all part one organization

This is a classic consolidation scenario in SAP Group Reporting. Here's how you'd typically set it up, along with some important considerations:

1. Define Consolidation Units

• X: This is your base consolidation unit.
• A: A parent unit owning 60% of X.
• B: Another parent unit owning 40% of X.

2. Assign Consolidation Units to a Consolidation Group

• Create a consolidation group (e.g., "MAIN").
• Assign all three units (X, A, and B) to this group.

3. Maintain Ownership

• In unit A: Maintain an investment in X with 60% ownership.
• In unit B: Maintain an investment in X with 40% ownership.

4. Consolidation Method

• You'll most likely use the purchase method for consolidating X into both A and B. This method fully eliminates the investment and recognizes the non-controlling interest (NCI).

5. Run Consolidation

• Execute the consolidation process for your "MAIN" consolidation group. SAP Group Reporting will:
  • Consolidate 100% of X's financial data.
  • Calculate the NCI attributable to B when consolidating into A (40% of X).
  • Calculate the NCI attributable to A when consolidating into B (60% of X).

Important Considerations:

• Group Shares: While not strictly required in this simple structure, understanding "group shares" becomes crucial in more complex hierarchies. Group shares represent indirect ownership. For example, if A also owned part of B, you'd need group shares to reflect A's total indirect ownership in X.
• Consolidation of Investments (C/I): Ensure that the C/I postings are correctly handled to eliminate the investment accounts and recognize the NCI.
• Reporting: Carefully consider how you want to present the consolidated results. You might need separate reports showing the consolidation from A's perspective and B's perspective.
• Intercompany Eliminations: If there are intercompany transactions between A, B, and X, make sure you have the necessary rules set up for elimination to avoid double-counting.

Key SAP Group Reporting Transactions:

• Maintain Consolidation Units: GRCUP
• Maintain Consolidation Groups: GRCGP
• Maintain Investments: GRINV
• Execute Consolidation: GRCON

By following these steps, you can accurately reflect the ownership structure and consolidate the financial results of X into both parent companies A and B within your SAP Group Reporting environment.