Overcoming the Top 7

Intercompany Accounting
Challenges in SAP ERP Financials

David Cohen
EY

Produced by Wellesley Information Services,

LLC, publisher of SAPinsider. 2015 Wellesley
Information Services. All rights reserved.
In This Session

Discuss common issues in Intercompany (IC) processes

Review common design solutions for seven main processes
Examine project challenges for implementing IC processes
Consider how existing and future HANA functionality can improve
efficiency of IC processes
Explore Leading Practices in the areas of systems, master data,
processes, and people related to IC

1
What Well Cover

Intercompany Processes and SAP ERP

How Can HANA Improve IC Processes?
Challenges for Implementation
Leading Practices Systems, Master Data, Processes, and People
Wrap-up

2
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

3
 Common Intercompany Issues
Long close cycle times and difficult reconciliation of IC processes
Highly manual and spreadsheet-based process
Manual No ability to adjust obsolescence, revaluation, PPV, or consumption
Processes variances for IC profit
Poor data quality and inconsistencies
Low accuracy of product costing

Top-side, high-level entries

Poor Visibility No ability to isolate Foreign Exchange (FX) impact on IC profit reserve
Limited ability to analyze gross profit on a consolidated cost basis

Intercompany profit reserve based on estimates and averages

Lost goods, goods stuck in transit, COGS without revenue, revenue without
Lack of COGS, etc.
Control Lack of established policies and procedures driving IC activities
Not leveraging common processes across multiple countries into one Shared
Service Center

Lack of adherence to a process resulted in unexpected IC write-offs and tedious

manual processing
4
Why Is Intercompany a Challenge in SAP?

Strictly from an SAP functional perspective:

Many IC processes are not represented by specific SAP
functionality
Sometimes there is no out-of-the-box standard solution

There might be multiple possible designs and solutions for a

specific IC process
IC processes are very dependent on company and the industry

Processes in this presentation are depicted as generic

suggestions and not as specific unique solutions with all
steps
GAPs will vary depending on company, industry, processes,
and systems architecture

5
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

6
Design Principles

Adopt Stock Transfer Orders

Establish Transfer Price agreements harmonized with SAP ERP
design
Use EDI to automate booking of payable upon creation of
receivable no manual intervention after Goods Receipt
Handle Invoice Receipt automatically without manual intervention
(reduces time required for month-end closing)

Special care needed for:

Country Taxes (might require implementation of User Exit)
Additional Lines (freight, customs, etc.)

7
Process Flow (Main Activities)

8
Key Enablers: Stock Transfer Order and
Goods-in-Transit Functionality
Stock Transfer Orders (STO) are used to move materials between
companies integrating both processes
Both companies need to implement Materials Management and
Purchasing (MM) and Sales and Distribution (SD)
Process is initiated by company that needs to receive the material
It is necessary to pay attention to fulfilling country statutory
requirements usually revenue recognition, transfer price, and
settlement of receivables/payables must be performed as if the
companies were independent
The additional usage of Goods-in-Transit improves the financial
controls of inventory ownership

9
 Key Enabler: Goods-in-Transit Functionality

SAP ERP 6.0 with EHP5 supports full automation of intercompany

accounting, including accruals for stock in transit
Seller location Buyer location
On-hand In-transit In-transit On-hand
1. Ship goods 2. Create proof of delivery
Seller ships goods and retains
Transfer to Issue paired with Goods receipt ownership while in transit. Buyer
in-transit (681) receipt (685) (101) confirms receipt, which
automatically books goods issue
and receipt to on-hand.
1. Ship goods 2. Create proof of delivery 3. Receive goods
Seller retains ownership for part of
Transfer to Issue paired with Logical receipt Goods receipt transit time. POD at title transit
in-transit (681) receipt (685) (107) (109) point moves inventory to in-transit
to buyer. Final receipt moves
inventory to on-hand at buyer.
1. Ship goods 2. Receive goods
Intercompany sale recognized
immediately at time of goods
Transfer to Goods receipt Goods receipt
issue. Buyer holds inventory in-
in-transit (683) (107) (109)
transit until physical receipt, which
moves inventory to on-hand.

Inventory location by status, ownership, and movement

Intercompany invoicing is automatically triggered
User task performed in SAP
when title transfers between companies
Title transfer point that triggers billing

10
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

11
Design Principles

Use Intercompany Charge of Services process to create and

charge a variety of expenses between Company Codes
Accumulate charges either by direct posting or with periodic
assessment into Work Breakdown Structures (WBS)
Calculate and post invoices (AP/AR) at month end or ad hoc
Use EDI and IDoc integration to automatically create the Accounts
Payable invoice, booking it at the same time as A/R
Consider each type of process carefully. As this is not a standard
process in SAP, there are several alternatives on how to trigger
the process or how to deal with specific charges (IT fees, HR ex-
pat charges, training, etc.)

12
Process Flow

13
Design Principles

Consider the creation by the Buyer of a blanket PO authorizing the

charges while seller creates a Sales Order for automatic billing
The reference PO is used to post charges to the receiver cost
object
Other types of POs can be considered depending on specific
business process
Based on the WBS charges, the sales price is calculated and the
following documents are created: Billing, Accounts Receivable
Invoice, and Accounts Payable Invoice

Charges are collected on a WBS by direct posting or

by allocation of expenses from Cost Centers or other
objects
14
Design Principles (cont.)

Trigger Billing and Invoicing periodically and automatically. It is

possible to add an ad hoc billing event as well.
Activate Extended Withholding Tax (WHT) functionality for all
countries you will need it
Resolve issues with billing through Dispute Management do not
hold back month-end closing

SAP GAPs:
Full Processing of WHT in receiver side
Posting Payable Invoice to the correct cost object

15
Key Enabler: Resource-Related Billing

RRB allows for the summarization of data based on Project, Sales

Order, Service Order, and other cost objects in order to calculate
COGS and Revenue (Sales Price)
RRB is powerful, but requires standardization and rationalization
of different business processes and scenarios
There are several standard possibilities for billing: Cost-Based
Billing, Quantity-Based Billing, Fixed Price, Surcharges, and any
combination of these. They are used when simple Milestone or
Periodic Billing are not enough.
RRB has extensive possibilities for configuration with the
possibility of custom logic by using User Exits

16
 Example: Usage of WBS and RRB

WBS 123
Country A
Service Charges
Charges
Labor $2,000 Transferred to WBS 123 WBS 123
Fringe $1,000 Labor $500
Other Costs $3,000 Fringe $100 Labor $500
Other Costs $300 Fringe $100
Other Costs $300

IT Cost Center Allocated from IT

IT Charges $1,000 Billed $1,900
Labor $2,000
SAP $5,000
Allocated to WBS 123 Month-End
Support $8,000
IT Charges $1,000
COS $1,900

A/R $2,000* Revenue $2,000

*Difference between COS and A/R is due to markup and surcharges

17
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

18
Design Principles

Leverage the key design principles from IC Sales of Products and

IC Service Charges processes
Use a zero-dollar value PO (STO) to request rental equipment or
an asset
Match Asset or Equipment to a Non-Valuated Material through
Serial Number
Enhance SAP solution through user exits to handle all scenarios
of Withholding Tax and other Fees

Most prevailing technology nowadays:

Excel spreadsheets!

19
Process Flow

20
Key Enablers
Link Assets, Equipment, and Non-Valuated Material by serial
number
MM/SD are the drivers for shipping the asset and creating the
documentation
For some scenarios, Cost Centers can be used as an indirect
assignment of the location (country) of the equipment in order to
derive invoice and tax charges (e.g., IT charges to different
countries)
It will probably be necessary to develop custom reports to manage
end of lease and other management information
Potential GAP for different country taxes
Use combination of Vendor, Country, and other Sales Orders/
Billing characteristics to derive correct tax calculation
There is a need to keep synchronization between AM and MM
modules for quantity (i.e., asset disposal)
21
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

22
Leading Practices

Use automatic Intercompany Reconciliation Process (ICR)

Periodically process (during the month) the reconciliation of IC
payable and receivable no need to wait for month-end closing
Implement Dispute Management process for issues about price,
quantity, or quality
Reconcile the documents and afterwards deal with the dispute
Subsequent debit and credit memos derived from the dispute
resolution will also be reconciled
Dispute does not interrupt month-end closing

The automatic creation of payable (in buyers GL) upon the

creation of the receivable (in sellers GL) should reduce the
number of discrepancies to a minimum
23
Process Flow

24
Option 1: SAP ICR (Intercompany Reconciliation)
Tool
Solution collects data from Accounts Receivable and Payable
invoice level detail and enables matching analysis during the
month. It can accommodate non-SAP data.
There is an opportunity to correct before month-end close,
reducing differences at month-end. Nevertheless, it is a batch
process.
There is a process for automatic and manual matching with
standard or customized rules for reconciliation and matching
ICR is an analysis tool. It does not correct the problem at the
source, but can initiate a dispute.

ICR works better in an SSC environment (centralized processing)

25
 Option 1: SAP ICR (Intercompany Reconciliation)
Tool (cont.)

Company Unassigned Partner Unassigned

Documents Documents

Navigation Tree with

Differences to Reconcile
by Company and Partner Matched Documents

26
Option 1: SAP ICR (Intercompany Reconciliation)
Tool (cont.)

Communication (Email)

Workflow (Custom)

Dispute Case

27
Option 2: SAP BusinessObjects IC Reconciliation
Tool
How does it compare to SAP ERP ICR?

Easier to include mixed ERP data

Good integration with Consolidation (BPC)
Good functionality for mixed currencies
Works well in decentralized environment
It can force agreement by generating adjustment posting
More complicated integration to Dispute Management

28
Option 2: SAP BusinessObjects IC Reconciliation
Tool (cont.)
The total of the invoices
The declaring companys invoices are compared to the is equal to the balance in
the child account
partners. The invoices are matched automatically:
The total of the
Have the same transaction reference invoices differs from
Uploaded data
Contain the same transaction amount the balance in the child
account

Matching takes place

based on Invoice
reference created by
ERP System
Amount not
matched

Unmatched invoices
(in Blue hyperlink)

Matched invoices
(in Black font)

29
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

30
In-House Cash Concepts
Simulate an internal bank and use it to fulfill financial services to
group companies
It can provide services such as: Provision of FX, Interest Rate
Calculation, Liquidity Management, Intercompany Liability, Funding
Management, Centralized Management of Payables and Receivables

Two scenarios for Payables and Receivables

External Incoming and Outgoing Payment via In-House Cash (IHC)
All Incoming and Outgoing Payment with external entities is
processed through the In-House Cash Center of the parent
company
Internal Payments
The In-House Cash Center is used to manage all payments
between company units and thus keeps cash resources within
the group and optimizes how they are applied
31
Example: Vendor Payment Process Flow

32
In-House Cash

Principles:
IHC is set up at the group headquarters

IHC is a virtual bank where subsidiaries have current accounts

Technically, it is a separate engine that is the reason for the

complex ALE/IDoc configuration and the multiple steps in
processing
Accounts can be maintained in any currency

The handling of intercompany payments is fully automated

within IHC. On the due settlement date, the IHC accounts and
the general ledgers of the paying and recipient intercompany
counterparties are updated automatically with the relevant
postings.

33
In-House Cash: How Does It Help?

Benefits:
Centralized payment and receivable transactions on a regional
or global level
Reduced cost and number of payment transactions, bank
account numbers, and bank fees
Surplus cash can be used for financing purposes; cash
resources are kept within the group
Better control of financial interest of subsidiaries

Processes internal payment transactions on a cost-effective

basis
Reduction of the number of external banks and associated
interfaces
34
Additional Points

Critical configuration: ALE and IDocs. Functionality makes

extensive usage of IDocs. Users might have to be trained in
troubleshooting them.
Accounts Payable has two steps (instead of one)
SAP ERP functionality works well, but additional custom
management reports and interfaces might be required

Plan enough time to test with banks

IHC cannot be implemented for certain countries (e.g., China)
Difficult to have 100% adherence to IHC (country
regulations, external systems, etc.)

35
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

36
Accounting 101: Intercompany Profit Elimination

What is Intercompany Profit Elimination?

Intercompany Sales has a Inventory must be adjusted (by

profit of $200.00
Overall inventory is overstated
by $200.00
eliminating IC Profit) and taxes
deferred (30% of ICP, as an
example)
37
Accounting 101: Intercompany Profit Elimination
(cont.)
It looks simple until you add:
Balances from previous years

Price Purchase Variances (PPV)

Exchange Rate Differences

Currency Adjustment Translation (CAT)

Production Variances

Price Adjustments and Rebilling

Legal, Group, and Functional Currency

Billing Currency

Daily and Monthly Exchange Rates

Complex Production and Supply Chains (such as tolling)

38
Leading Practices

Keep in mind that there are two processes that must be

addressed:
Determination of Actual Costing across Company Codes

Determination of Company Uplift (or Delta Profit, ICP)

Use the latest SAP functionality in this area:

Parallel Valuation in Material Ledger (Legal and Group/
Management) with single and multi-settlement
Implementation of STOs for intercompany sales

Actual Company Uplift (EHP 5 business function

LOG_MM_SIT)

Companies must be in the same Controlling Area

39
Option 1: Intercompany Profit as a Cost Component

Inventory value is tracked in legal valuation and group valuation

in Material Ledger
Company Uplift is a cost component of Group Costing

IC Inventory Profit is reported,

revaluating inventory and goods
movement based on Management
View:
Inventory at hand
Good Issue (for relieve of IC
Profit)
Returns
Scrap
And so on

40
Option 2: STO Updating ICP

Invoice $1,100 Invoice $1,300

IC profit is recorded in Legal Valuation

Group Valuation excludes IC profit
Actual costing is calculated based on Legal Valuation
After period end, price differences and variances from sending
plant are transferred to the receiving plant in multi-level
settlement in group valuation
41
Option 2: STO Updating ICP (cont.)

Uplift included in Legal Valuation plus Actual Costing in Group

Valuation
Delta Profit is updated based on STO information
Condition type PR00 legal valuation with profit markup

Condition type KW00 (group valuation) value of the material in

the sending plant to be used as the invoice value on the
receiving side in group valuation
Updates Delta Profit with:

Purchase Price Value Senders COGS (KW00)

Can use BAdI for changes in how values are calculated and
updated

42
Changes in Development

SAP and a partner client are developing and implementing a

solution that enhances Delta Profit calculation
Delta Profit is calculated based on

Transfer price COGS selling Plant

Variances in multi-level settlement are forwarded to receiving

plants and update Delta Profit
External Sales or transfer of goods decrease Delta Profit in the
material/plant

More Information on upcoming SAP developments

Attend SAP Financials 2015 presentation:
Sanjeev Walia, EY, Key Design Considerations for Legal and
Group Valuation in SAPs Material Ledger
43
Intercompany Processes

Intercompany Product Sales

Intercompany Charge of Services
Intercompany Lease of Assets
Intercompany AP/AR Reconciliation
Intercompany Treasury (In-House Cash)
Intercompany Profit Elimination
Intercompany Month-End Closing

44
Leading Practices

Implement one of the two SAP options for managing month-end

closing
SAP Closing Cockpit standard SAP tool to monitor and
control the entire period-end closing cycle
SAP Financial Closing Add-On

More Information on SAP Financial Closing Add-On

Attend SAP Financials 2015 presentation:
Genco Odevci, EY, I Implemented SAP Financial Closing
Cockpit in SAP ERP 6.0: Now What?

45
Key Enabler: SAP Closing Cockpit

SAP Closing Cockpit works through the definition of templates

and tasks lists executed during period end
The key design elements are:
Defining organizational hierarchy for closing

Defining period close template

Assigning tasks to template

Defining task dependencies

Creating and releasing a task list ongoing each period

46
Key Enabler: SAP Closing Cockpit (cont.)

It provides a structured list of financial activities that

occur periodically
The single-screen layout presents a period-close-centric view
The purpose is to replace spreadsheet-based close checklists.
Embedded task dependencies can help prevent timing issues.
Once a task is being worked on, its status will be visible to all
Support documentation or a note can be attached to tasks
Auditors accept completed task list printout as proof of close
completion
SAP transactions or custom T-Codes can be directly called from
the Closing Cockpit. Task execution captured with a time
snapshot.
Source: Genco Odevci Expert Techniques for Making the Most of the SAP Financial Closing
Cockpit (SAP Financials 2014). 47
Additional Option: Usage of SAP Financial
Closing Add-On
It requires a separate license agreement
It connects to multiple SAP ERP systems for remote runs
It offers automated closing tasks, even in remote system. All task
types (transactions, programs, jobs, workflow, CPS [Central
Process Scheduling by Redwood] tasks) are available for the local
and remote systems.
It has reusable task groups
Tasks can automatically start when predecessors are done (e.g.,
run transaction in test mode; if successful, run in production
mode; if errors, send mail using workflow)
It offers collaboration, notifications, and workflows
It offers better real-time insight into the closing status
48
What Well Cover

Intercompany Processes and SAP ERP

How Can HANA Improve IC Processes?
Challenges for Implementation
Leading Practices Systems, Master Data, Processes, and People
Wrap-up

49
How Can HANA Improve IC Processes?

ICR (Intercompany Reconciliation)

ICR works directly on the open items in AP/AR (central ERP
instance)
Always ready to reconcile no batch loading or matching
New Management Dashboard
Material Ledger
Side-car solution implemented in several clients
Accelerated Closing Runs:
Material Selection
Single and Multi-Level Settlement
Post-Closing

In-memory computing increases speed of tasks due to almost

instantaneous fetching of data from the virtual hard-disk
50
 SAP Simple Finance (Optimized Financial Data
Architecture)
ERP Financials Reports

Physical Data
Data
Reports Warehouse Data Redundancy (Totals
Legal/External Management tables, Data Warehouse)
Accounting (FI) Accounting (CO) High Reconciliation effort
Totals tables Totals tables Low Flexibility
Higher Data Volume
Legal/External Management Profitability Analysis Market Segment Performance issues
Accounting (FI) Accounting (CO) (COPA) Data
Documents Documents Documents

Simple Finance on HANA Reports

Virtual HANA views

No Data Redundancy
Easy Reconciliation
High Flexibility
Legal/External Management
Accounting (FI) Accounting (CO) Less Data Volume
Totals tables Totals tables High Performance
One-stop shop for all
Profitability Analysis Market Segment operational financial
One Unified Legal/External Management reporting
Accounting Accounting (FI) Accounting (CO) (COPA) Data
Document Documents Documents Documents Drilldown to atomic detail

51
Central Journal

Central Journal is an adoption scenario that enables implementing Simple Finance with
minimum disruption to existing systems
It provides real-time replication of financial information from diverse instances that are
harmonized into a Central Journal
Can provide consolidated financial and management reporting, central process execution and
transaction, planning, consolidation, and reporting based on the same (single source of truth)
data set

Consolidation Reporting
Finance data is copied from source systems
onto a Central Journal instance. Source
systems can remain in place and continue
with local transaction processing.
Real-time harmonized global financial
Central Journal
information on a HANA platform with atomic SAP Instance with
detail, allowing flexible reporting using robust Simple Finance
reporting tools
Single Uniform Global Data Model for external
(FI), internal (CO), and Profitability/Market
SAP ERP SAP ERP SAP R3 Non-
Segment (COPA) accounting 6.0 6.0 4.6 SAP
No reconciliation across instances
52
What Well Cover

Intercompany Processes and SAP ERP

How Can HANA Improve IC Processes?
Challenges for Implementation
Leading Practices Systems, Master Data, Processes, and People
Wrap-up

53
Project Perspective

IC processes are frequently an afterthought

Seen as only an integration issue instead of a process
Integration: Communication or connection between modules
(e.g., account determination for material movements)
Process: Series of connected steps accomplishing a goal (e.g.,
P2P, O2C, R2R)
IC processes frequently break during integration tests or after
go-live
Create a specific project work stream to deal with
IC processes
In a phased rollout, think about interim stage
Give the team the right resources (business and
functional) 54
Interim Stage Challenges
Projects frequently think in terms of to-be processes of final design
This works fine with big-bang style implementations, but most Global
implementations are phased by business and/or geography
The Key Decision is whether or not to integrate the IC processes in
the interim stage
Unless the company works with two or more disconnected systems
in terms of IC processes, there is a need to link all systems from day
one
The design for the interim stage can absorb significant resources
from the project team (up to 30% to 40% of work)
To-be might need to be adjusted to work together with the interim
design (need for compromise)

The Key Decision is whether or not to integrate the

IC processes in the interim stage
55
Interim Stage Challenges: Integrating All Companies

In a phased rollout, a design decision to integrate companies that

have not migrated to the new environment into the IC processes
has advantages and disadvantages

Advantages Disadvantages

Immediate benefit to IC processes by Complexity of implementation

implementing leading practices
Better management reports
Faster closing
Alleviates issues with
communications
Easier transition in future rollouts
Early work on master data
harmonization
Consumption of project resources
Potential issues with differences in
business processes (e.g., transfer
prices, material valuation)
Need to compromise a few to-be
design decisions

56
Interim Stage: STO Integration

Integration can be done through a custom development

(Intercompany Data Transfer)
Need to customize IC Data Transfer for each IC process

57
What Well Cover

Intercompany Processes and SAP ERP

How Can HANA Improve IC Processes?
Challenges for Implementation
Leading Practices Systems, Master Data, Processes, and People
Wrap-up

58
 Leading Practices
Systems
Single instance with consistent global template
Leverage dual posting (Seller AR and Buyer AP)
Use the matching and reconciliation functionality for AR/AP and GR/IR
Use ERP (SAP In-House Cash) netting functionality
SAP ERP 6.0 since Enhancement Pack 5 provides Goods in Transit visibility
Use workflow and IDocs where possible
Single point consolidation (avoid sub-consolidation) and leverage a tool (HFM, BPC, etc.)

Master Data Management and Governance

Establish a governance policy to manage strategic changes to master data
Establish master data policies and procedures for change management
Ensure that all projects that impact systems include master data team participation
Assign full responsibility of master data to individuals for maintenance

59
Leading Practices (cont.)
Processes
Establish materiality thresholds for posting of IC transactions
Establish a detailed monthly calendar for IC tasks
Establish a Dispute Resolution Policy with a Committee that arbitrates disputes
Establish upfront approvals
Consider tax needs (provisioning, transfer pricing) when establishing timing of billing
(monthly, quarterly, annual) for corporate pass-downs
Establish policy on currency for transactions between entities with different currencies
for reconciliation and settlement
Document and communicate IC policies and procedures

People
Centralize IC accounting (where possible), but maintain a single point of contact for IC
transaction inquiries for each company
Document and train for specific roles and responsibilities, including handoffs
Train and provide job aids/contact information for all personnel involved in IC
transactions
Document review/approval/escalation points for IC transactions
60
What Well Cover

Intercompany Processes and SAP ERP

How Can HANA Improve IC Processes?
Challenges for Implementation
Leading Practices Systems, Master Data, Processes, and People
Wrap-up

61
Where to Find More Information

SAP Financials 2015 presentations

Sanjeev Walia, Key Design Considerations for Legal and
Group Valuation in SAPs Material Ledger (Las Vegas, 2015).
Genco Odevci, I Implemented SAP Financial Closing Cockpit
in SAP ERP 6.0: Now What? (Las Vegas, 2015).
Prem Ramlal, Manage Cash Flows and Reduce Bank Costs with
an Integrated Treasury System (SAP Financials 2014, Orlando).
Financials Expert (http://sapexperts.wispubs.com/Financials)
Janet Salmon, Calculate Actual Costs Across Multiple
Company Codes Using a New Business Function in SAP
Enhancement Package 5 for SAP ERP 6.0 (Financials Expert,
December 2010).

62
7 Key Points to Take Home

Consider IC processes as a project work stream

Automate transactions and postings across company codes
Use a formal process of Dispute Resolution to avoid interruptions
in the IC processes
Standardize IC processes and manage the necessary change to
accomplish them
Review policies to support the implementation of leading
practices
Do not forget about the interim stage with a phased rollout
Be bold You will live with the system for the next 15 years!

63
Your Turn!

How to contact me:

David Cohen
David.Cohen@ey.com

Please remember to complete your session evaluation

64
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