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Branch with Income Statement & Balance Sheet

Former Member
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As Business Areas are gradually going away, so they should not be an option to be created as a branch of a legal entity. How else can a foreign branch of a legal entity (company code) be setup in ECC 5.0, and that branch should be able to produce balance sheet and income statement for statutory reporting. Please give your thoughts.

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Answers (3)

Answers (3)

Former Member
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Sean,

As someone else advised, you can use profit centers and segments to fulfill your requirement. In the PC master, you can enter a segment. Several profit centers can "report" to one segment. I didn't get if you have doc. split on. With it, you can ensure balance sheet items are split according to a certain base such as allocation to cost centers during say vendor invoice entry. What this does is that the debt is split among the various PC's that contributed to to it and thta are attached to the cost centers entered in the line items.

Other that F.01, you have other reports in the GL>Information System section such as S_PL0_86000028 - Financial Statement: Actual/Actual Comparison and S_E38_98000089 - Profit Center Group: Plan/Plan/Actual that allow you to generate financial statements based on profit centers and segments.

I hope this is useful.

nishan_dev
Active Contributor
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Thank Pitar, I completely missed the segment part. and you nailed it. Segment will do the work.

Best,

Former Member
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Thank you all for the information. However, Pitar we do not have document spilt on. So in that scenario, how would posting to BS account work. Can we assign a profit center to the BS account in this case? Please advise.

Former Member
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Yes you can using t/code FAGL3KEH (new G/L) or 3KEH (classic). You can also set a dummy PC in your PC hierarchy to capture what falls off. Unfortunately with document splitting off, the BS side of say a vendor invoice posting to trade receivables in the GL does not adopt the profit center of the expense being posted.

Former Member
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If the BS is not being captured, what is the best way to get the BS report of a branch that is a profit center?

nishan_dev
Active Contributor
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GR55, calling the report by segment basis, but make sure your PC are plugged in the segment, and transaction happening after the changes, and prior changes no report will bring up the transaction.

Marssel700
Active Contributor
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Look my reply in your same discussion

Setting up branch of a Company code

Former Member
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I understand that we can use profit center and segment to draw financial statement in F.01 but we can only see income statement. How do get balance sheet with the profit center as a branch, as we cannot post to profit center with a balance sheet account? We are on ECC 5.0 and document splitting is on actvated and we don't want to do it as we will be upgrading to ECC 6.0 in few months. Please advise.

Marssel700
Active Contributor
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Sean,

in this case you will post BS Acc for Profit Center. You must define rules for profit center automatic entering and so on.

In other hand you can define branches at company code level. In this case you have a bigger maintainance in customizing.

regards

Former Member
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Marssel,

But isn't posting BS account for profit center not correct practice. Only p&L acct can post to CO objects.

Can you specify how can branch be defined at company code level? Thanks in advance.

nishan_dev
Active Contributor
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Company code is legal entity, and profit center will accommodate your branch requirement.

You can create Financial statement version based on Profit center at GR55, and Marssel approach is the right way to use instead of business area, as business area is very old and it getting obsolete.

Best Luck

Nishan Dev

Marssel700
Active Contributor
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No, Nishan. Like described below is possible assign profit center to BS by default assignment. You can enter the profit center in F.01 instead Business Area. Without question this is the best practice.

regards

nishan_dev
Active Contributor
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Yes  Marssel, I agree, sorry I was heading to wrong route....

Thanks,

Nishan Dev

Former Member
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Hi

Create profit center instead of business area. You can prepare financial statements for profit centers.

Srinivas.A