FI Integration with Controlling

Can you explain how FI Integration takes place with Controlling

Create controlling area and assign it with your Company code. Assign control indicator for your controlling area for a fiscal year which allow you to post controlling document in respective of financial accounting document. Create cost centers, Profit center and cost element with same number as gl for keeping record for cost accounting. Assign cost center in expense items for keep track of total cost incurr at each cost center. Assign profit center with revenue items for figuring out the revenue occur at certain point.

i hope a bit it will help you to understand the integration of controlling with FI.

Re: FI Integration with Controlling

During allocations in Controlling, most of the postings created do not affect Financial Accounting. These postings do not update any G/L account transaction figures; they are postings within Controlling. If, however, an allocation in Controlling leads to a change in the functional area or any other characteristic (such as Profit Center or Segment) that is relevant for evaluations in Financial Accounting, a shift occurs between the affected items in the profit and loss statement. For this reason, this information has to be transferred to Financial Accounting. This reconciliation between Controlling and Financial Accounting takes place by means of real-time integration.

As a result of real-time integration, all Controlling documents that are relevant for General Ledger Accounting are transferred from Controlling to General Ledger Accounting in real time. This means that Financial Accounting is always reconciled with Controlling.

A document is created in Financial Accounting for each posting in Controlling. This means that the detailed information contained in the CO documents is always available in reports in New General Ledger Accounting. This information can be sorted by the following, for example:

Functional area

Cost center

Internal order

Integration

Real-time integration replaces the reconciliation postings from the reconciliation ledger. Consequently, you do not need a reconciliation ledger.

If, however, you do not set the Reconciliation Ledger Active indicator in Customizing for the controlling area, you cannot use the reports belonging to report groups 5A* (5AA15AW1). You set this indicator in Customizing for Controlling under General Controlling Organization Maintain Controlling Area. The reconciliation ledger serves as the data source for reports belonging to the report groups 5A*. You find these reports in the SAP Easy Access menu under Accounting Controlling Cost Element Accounting Information System Reports for Cost and Revenue Element Accounting.

Replacement reports are available as follows:

 You find the reports in the SAP Easy Access menu under Accounting Controlling Cost Element Accounting Information System Reports for Cost and Revenue Element Accounting (New).

If you use real-time integration in at least one company code, you need to have activated company code validation for the related controlling area. You do this in Customizing for Controlling under General Controlling Organization Maintain Controlling Area Activate Components/Control Indicators. Otherwise, the reconciliation between Financial Accounting and Controlling at company code level is not possible.

In Customizing for Financial Accounting (New), you have processed the IMG activities under Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting.

Activate real-time integration for all company codes between which you want to make CO-internal allocations.

In the IMG activity Define Variants for Real-Time Integration, do not select all CO line items for transfer. If the same line items are to be transferred as through the reconciliation posting from the reconciliation ledger, select the following line items:

Cross-Company Code

Cross-Business Area

Cross-Functional Area

Cross-Fund (if you use Public Sector Management)

Cross-Grant (if you use Public Sector Management)

You can create additional reports in report group 5A21. You can assign the report group to any drilldown report of New General Ledger Accounting using the report-report interface.

Features Value flows within Controlling that are relevant for General Ledger Accounting u2013 such as assessments, distributions, confirmations, and CO-internal settlements u2013 are transferred immediately. The FI documents are posted with the business transaction COFI. They contain the number of the CO document. This means that you can call up the CO document from the FI document, and vice versa.

Activities If a document could not be transferred because the posting period was blocked in Financial Accounting or no account was found, for example, the document is included in a postprocessing worklist. You need to check this worklist regularly and process any documents in it. From the SAP Easy Access menu, choose Accounting Financial Accounting General Ledger Corrections Post CO Documents to FI.

Example An internal order for business area 0001 is settled to a cost center of business area 0002. The document from this allocation is transferred in real time to Financial Accounting.

 From the report Financial Statements Actual/Actual Comparison, you can call up the report Cost Elements: Breakdown by Company Code. You find the report Financial Statement: Actual/Actual Comparison in the SAP Easy Access menu under Accounting Financial Accounting General Ledger Information System General Ledger Reports (New) Balance Sheet/Profit and Loss Statement/Cash Flow General Actual/Actual Comparisons.

You can define account determination for each controlling area. You do this in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration. In this way, you use the same account determination as for the reconciliation ledger (transaction OK17). You can then use the reconciliation ledger reports to compare FI balances with CO balances.

In 6.0 versions, integration between FI and CO can be conducted in real time. As a result of real-time integration, all Controlling documents that are relevant for General Ledger Accounting are transferred from Controlling to Financial Accounting in real time. This means that Financial Accounting is always reconciled with Controlling. From ECC 6.0 onwards, you need not activate reconciliation ledgers in controlling.

Through this single integration solution we can avoids any need for separate cost-center ledger, reconciliation-ledger and profit-center ledger. The result is high transparency of data at all times, eliminating data redundancy and faster period-ends closings.

These are the configuration steps for Real time integration of controlling and financial accounting. For details of each steps please read each of its IMG documentation/ performance assistants.

1. Define Variants for Real-Time Integration Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Define Variants for Real-Time Integration to Company Codes

2. Assign Variants for Real-Time Integration to Company Codes Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Assign Variants for Real-Time Integration to Company Codes

3. Define Account Determination for Real Time Integration CO Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration Define Intercompany Clearing Accounts

4. Define Account Determination for Real-Time Integration Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration Define Account Determination for Real-Time Integration

Re: FI Integration with Controlling

Before ECC6.0 Version, for FI Integration with Controlling we need to Activate the Reconciliation Ledger in T-Code: OKKP, While creating a Controlling Area. This is the previous integration for CO -> FI.

From ECC6.0 Version, We have got the below configuration settings...

Step - 1: Define Variants for Real-Time Integration

Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Define Variants for Real-Time Integration to Company Codes

Step - 2: Assign Variants for Real-Time Integration to Company Codes Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Assign Variants for Real-Time Integration to Company Codes

Step - 3: Define Account Determination for Real Time Integration CO Financial Accounting(New) Financial Accounting Basic Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration Define Account Determination for Real-Time Integration - Here we assign the GL Accounts to the Transaction for C O-> FI Postings..