Dividends Elimination - Group Reporting - Public Cloud

[Otro]

Dear team,

I wanted to see if any of the experts could help me regarding the elimination of interim dividends from the current result that my client is asking me in group reporting.

First of all I wanted to tell you that I am working on a SAP Public Cloud system and we are using the Consolidation of Investments (Rule-Based).

In this case and to simplify I wanted to tell you the following:

Company B (subsidiary) distributes dividends to company A (parent company of the group).

These dividends are distributed on account of the current year (current year).

The issue is that I see that through the task 2031- Dividends Elimination the income received in the company A (parent company) (the one that receives the dividend) is eliminated but I do not see that this task eliminates the entry in the company B (subsidiary) and I would need your help on how I could do so that this elimination is also carried out in the subsidiary company (B).

I would be very grateful for your help

Regards

[TULLEYC]

Hi Otro, I think I may be facing the same issue. I do have a question where you precise that you are paying an interim dividend from the current year profits.. are you not paying the dividend out of retained earnings?

[MareikeBaudewig]

Hello, 
Our product expert offers the following answer: 

Our standard content eliminates dividends at owner company only (company that received the dividend) because in the standard case, the dividend is distributed on the result of the previous fiscal year.

The specific case of the distribution of dividends on the results of the current fiscal year is not fully managed, and you need to update the standard content or to post manual journal entries.

I hope this helps.

Kind regards,
Mareike

[HenrikeGrötecke]

Hello,

After consulting with experts, I can provide the following answer:

"For Purchase Method companies, dividends elimination is performed at PL20.

It is described in the SAP Help Portal documentation/section “Reclassification-Based Interunit Elimination”

Dividends elimination:

This task eliminates the dividends received from a consolidation unit belonging to the same consolidated group.

The default reclassification method for this task is S2030 (Dividends Elimination), which is configured with the document type 2H and posting level 20.

For Equity methods companies, data generated at PL20 is removed by PCC, so we need to perform elimination at PL30."

Kind regards,

Henrike

[HenrikeGrötecke]

Hello,

After consulting the experts, I'm able to offer the following answer:

For Purchase Method companies, dividends elimination is performed at PL20.

It is described in the SAP Help Portal documentation “Reclassification-Based Interunit Elimination”

For Equity methods companies, data generated at PL20 is removed by PCC, so we need to perform elimination at PL30.

Kind regards,

Henrike

[Otro]

Thank you very much for your response, Indeed that point I have taken into account and I have no problem with the elimination of the dividend in the company that has received it. My problem arises with the fact that this task only eliminates the dividend in the company that receives it but not in the company that distributes it. It must be taken into account that this dividend is being distributed on the results of the current fiscal year and therefore it has not ended. Regards

[HenrikeGrötecke]

Hello,

Thank you for your question.

Have you had a look at this SAP Help Portal documentation?

Consolidation of Investments (Rule-Based): https://help.sap.com/docs/SAP_S4HANA_CLOUD/90c07e91c7a64f328be3fd6b48955b13/5ce06895106a463ca073fdda...

Kind regards,

Henrike

[Otro]

Hello Thank you for your response. Yes, I have checked this point but if I am not mistaken in the case of the purchase method there is no step to remove it as I see it is empty. Regards