New GL : Company Code Validation vs Real Time COFI Integration- What is the relation ???

[sivaprasad_r]

Recently I came across an issue in New GL wherein I have to understand the relation between , Real time COFI integration and Company code validation. If you opt for Company code validation then only you can activate and assign Real time COFI integration, otherwise NO.

In this blog, I want to analyse the logic behind the relation and justify SAP's error message.

Before proceeding to the analysis,  take a look at the scenario and the error message.

1. Company code is “Productive”.


2. Company code validation is not checked in OKKP against controlling area ( Fig-1 )

Fig-1 : Activate / deactivation of Company code validation

 

3. You want to activate and assign the Real time integration variant to one of the

      company code under the controlling area.( Fig-2)

Fig 2 : Assignment of COFI realtime integration variant

 

  4. And the error message : ( Fig-3)

Fig-3 : Error message while assigning the Variant

 



Fig -4 :  Error message full text

Company code validation means, in the same document , all the objects must belong to the same company code. i.e in one document , you cannot input objects say cost centre belonging to 2 company codes.

WHY :

Business Process : Salary GL ( P& L account ) is originally charged to Cost center 0001 ( Company code-0001) , but it should be reposted to Cost center 0002 ( Company code 0002).

 

Scenario  1 :  Transfer postings ( repostings ) happens from FI route

There should be NO company code validation , because in the same document you want to  input 2 cost centers belonging to 2 different comp codes.

Posting in Company code 0001

Gl                                Cost centre     Amt

     Debit : Salary GL                      0002                200      ( belongs to Co code- 0002)

     Credit : Salary GL                    0001                200      ( belongs to Co code- 0001)

   With this FI posting, the 2 actual entries will be triggered as below (Through automatic inter company account determination settings) :

   Company code-0001

    Debit : Inter company GL                                 200

    Credit : Salary GL                    0001                 200

     ( Note that the CO posting will be posted now accordingly)

    Company code-0002

     Debit : Salary GL                                 0002                200

     Credit : Inter company GL                                           200

     (Note that the CO posting will be posted now accordingly)

 

Conclusion : The CO entries are already passed by system. SO there is no need for any CO FI integration, therefore, COFI integration variant is not allowed. If it is allowed, the system may trigger( amounts to duplication.. so wrong  ) the FI documents again from CO documents. 

 

Scenario  2 :  Transfer postings ( repostings ) happens from CO route

In this case, you activate the Company code validation, so FI route ( Scenario-1) cannot be followed . You use reposting functionality in CO wherein you transfer the amount from Cost center 0001 to 0002. But to give effect in FI,  Realtime COFI integration variant must be assigned to the Company code to keep the CO and FI books duly reconciled.

TO SUMMARISE,

1. If you follow FI route to transfer the postings across company codes ( for example) don’t activate company code validation and justifiably, system will not allow you to assign Real time COFI integration variant to the Company code.

2. If you follow CO route, activate the company code validation and system will allow you to assign the COFI integration variant to the company code.