SAP S/4 HANA Inter Company reconciliation (Process GL accounts -002)

This blog is intended for project members responsible for setting up the Intercompany Reconciliation functionality (GL Account Process 002). It explains the delivered standard customizing as well as the options available during configuration.

Summary

The purpose of ICR is to ensure that intercompany documents from accounting transactions within the corporate group correspond to one another. It contains tools which check that documents have been correctly assigned to a business transaction and which also enable you to find corresponding documents easily and to make additional assignments. ICR operates on the level of companies and partner companies (trading partners).

What you will learn from this Blog?

• Process Flow for ICR -002
• Configuration of ICR-002 Process
• Transaction Posting
• Relevant Notes

Supported Process in S4 Hana 

The following processes are supported by the delivered programs:

Process 001 (GL Open Items): This process is intended for reconciliation of open items. You should choose this process if most of your intercompany receivables and payables are posted to GL accounts.

Process 002 (GL Accounts Non-Open Item): This process is intended for reconciliation of documents which are posted to accounts which do not have open item management. This process is mostly used for reconciliation of profit and loss accounts.

Process 003 (Customer/Vendor Open Items): This process is intended for reconciliation of open items. You should choose this process if most of your intercompany receivables and payables are posted to customer and vendor accounts.

Pre-Requisites : 

For ICR-002 Special Purpose Ledger Configuration Is required .

ICR customizing Steps :

ICR Configuration Divided into 4 Parts .

• Basic Configuration
• Data Selection and Storage
• Data Assignment
• Data Reconciliation .

Basic Configuration

1. Activate Process for 002 :The ICR solution uses the FI-SL posting framework to store document and totals information. The tables were created as Special Ledger tables. In this step you have to P set the flag Inactive for the processes which you will not be using .
2. Activate Transaction Data tables : This step will add the additional fields you customized to the transaction data tables and display  structures and generate the FI-SL posting framework. If you created any additional fields they will not be visible in the field catalog until this step has been executed .

Data Selection and Storage

1. Define Reconciliation Process Detail Attributes :This step defines some of the details regarding data selection and storage for each of the reconciliation processes.

         SAP Customizing Implementation– Guide Financial Accounting —General Ledger Accounting Periodic Processing– Check/Count— Preparations in the Reconciliation System– Define Reconciliation Process Detail Attributes .

The Sender Ledger specifies which ledger data for process 002 is to be read from during data selection. If you set the flag Sender Ledger Is Default Only you can specify a different sender ledger per company.

        2. Define Special Purpose Ledger :In this step you can set up a Special Ledger. Please note that for the core functionality of ICR it is not necessary for you to set up a Special Ledger in the Reconciliation System. You only need to set up a ledger if you want to use general SL functionality (e.g. reporting).

If your reconciliation system is also used as a sender system (i.e. there is a productive company code running in the same client of the same system) you have to create the sender ledger

Trading Partner is Mandatory for ICR -002 Process for which you have to Maintain in the Ledger selection as per the SAP note -1976212 .

3.Companies to be Reconciled : This part of the customizing allows you to define the properties for all companies which are supposed to be included in reconciliation.

Data Assignment

1. Maintain Number Range for Group Reference Numbers:This step is to set up the number range intervals for the group reference numbers of the individual reconciliation processes. Please note that you have to maintain the number range interval 10 for each of the processes .
2. Define Rules for Document Assignments:In this part of the customizing you can set up rules which can be used to find matching documents. You can set them up to be used during Automatic Assignment or to be available during Manual Reconciliation .

Data Reconciliation

SAP Customizing Implementation Guide —Financial Accounting —General Ledger Accounting —Periodic Processing–Check/Count —Preparations in the Reconciliation System–Data Reconciliation- Set Up Reconciliation Display

1. Set Up Reconciliation Display :you can specify whether the navigation tree in the reconciliation display is supposed to be using the primary organizational units only or the secondary organizational units as well. The second option is only available if you added fields as secondary organizational units
2. Define Sets :you have to set up value sets which will be used in the next IMG step Set Up Display Categories and Subcategories. The sets simply contain the values which will be used to separate the individual types of accounts used in intercompany reconciliation. This is a rather technical part of the customizing for which you need to know some technical details about GL accounts .
3. Set Up Object Group and Sub-groups :step you set up what categories are supposed to be used for interactive reconciliation for each process. The display categories are the third level of the navigation hierarchy.
   
4. Define Possible Status for Documents :In this activity you can maintain the status texts and icons to be used during interactive reconciliation. Two status fields are defined as part of the standard delivery:
   1. Communication Status
   2. Processing Status

   

5. Define Enhancements :Below are  some Sap standard BAdi which can be used for enhancements .

Conclusion :

ICR 002 Process is very rare and Hardly implemented by the Customer because of big Challenge like Activation of Special Purpose Ledger which is a pre-perquisite .By Using this Blog consultants can implement the solutions very easily .