Adjustment Posting for Equity Holdings
Application component: Contract Accounts Receivable and Payable
App type: SAP GUI
Description:  Accounting principles in various countries require that receivables and payables from affiliated, participating, and external companies have to be displayed separately in the financial statements. Example The German Federal Financial Supervisory Authority (Bafin), for example, requires that revenues for bonuses, commissions, reserves (that is, payables where use is defined but not the amount and due date), and losses are to be displayed separately for affiliated and participating companies. If a company purchases shares in another company, the company whose shares are purchased becomes an affiliated or participating company. All open receivables and payables at the key date must be corrected in the correct receivables account and all revenue and expense postings in the given period must be determined. The relevant period is determined from the purchase or sales contracts and can, for example, start with the purchase date or the start of the current fiscal year. 
Key features:  The following cases can all occur if the value in the Company ID (VBUND) field changes in the contract account of the business partner: The Company ID field contains no value and is now filled (for example, with 000001), or the Company ID field was filled and is now empty.A company was purchased or sold. For the purchased company, in Customizing, under Enterprise Structure  Definition  Financial Accounting  Define Company, create a new entry (such as 000001) and define it in the contract account. If a company was sold, then you have to delete the entry here.Note If you use the component SAP FS-RI (industry component Insurance), you can enter or delete this entry directly in the business partner.The system then automatically makes the adjustment in the contract account. You have to make a new entry (such as 000001 or * in the Company ID field) in the account assignment, and enter the corresponding account. On the SAP Easy Access screen, under Master Data  Business Partners  Define Equity Holdings, make the appropriate entries. If there is no specification for the start of revenue consolidation there, the system sets the start to the general valid-from date. The value in the Company ID field changes (for example, from 000001 to 000002).The status of a company changes, for example, from participating to affiliated. In this case you have to create a new company and assign it in the contract account or business partner. If you assign it in the business partner, the system adjusts the Contract Account field automatically. In account determination, you create a new entry, and enter 000002 in the Company ID field and the corresponding account. On the SAP Easy Access screen under Master Data  Business Partners  Define Equity Holdings, enter the valid-from date for 000002 and the period for revenue consolidation.  For the selection of receivables and payables, you can use different reconciliation accounts for the affiliated companies, the non-affiliated companies, and the participating companies. The company ID (VBUND) is defined in the contract accounts of a business partner and is transferred to the documents during posting. The G/L accounts can be determined in a customer-specific account determination using the Company ID field. If you want to control the assignment using accounts, then also use the Company ID (VBUND) field to separate revenues between affiliated and participating companies in G/L account determination for revenue and expense accounts. You make the postings required due to the change of equity holdings as part of closing preparations. You use the programs for foreign currency valuation, reclassifications, evaluation of open items for a key date, and the new report Adjustment Postings for Equity Holdings (on the SAP Easy Access screen under Periodic Processing  Closing Preparation   Receivable/Revenue Adjustment (transaction FPVBUND). Note We recommend that you run the report for the adjustment of equity holdings before the foreign currency valuation and the reclassification. If an equity holding is changed retroactively, then it can be assumed that postings, which were made after the date the change takes effect, but before the change was entered in the system, are not posted with the correct company ID (VBUND). The Adjustment Postings for Equity Holdings report analyzes the postings of the affected business partners for this time period, and determines the amounts and the account assignments for the required adjustment postings. The report determines the adjustments needed after the change in the equity holding shares of the partner (for example, the status of a customer changes from external company to an affiliated company). These adjustments are determined separately for the following: Receivables and payables Expense and revenue Reserve postings  The report considers the reserves, receivables, and payables on a key date; revenues and expenses are considered for the period. The report can also post the adjustments needed; if necessary by business partner and/or company code. For test purposes, you can also select by segment and business area. For receivables and payables, the adjustment is made using separate adjustment accounts that the report determines for each reconciliation account using posting area 1350. (See Customizing for Contract Accounts Receivable and Payable, under Closing Operations  Reclassifications  Define Correction Accounts). The posting takes place for a key date. The inverse posting is for the key date plus 1. For revenues, expenses, and reserve postings, the adjustment is made, for the key date, to the general ledger accounts with no inverse posting. Note In the industry component Insurance, you can determine the accounts at event V040 if you use customer-specific account determination for the revenue accounts.For reserve postings you can use the Summarization of Reserve Postings (FPRES_CON) report to summarize the table of reserve postings (DFKKRES). Here, for example, you can also compare the amounts of the table with the original line items after a currency changeover. You cannot reverse adjustment documents for receivables and payables and reserve postings. However, you can run the key-date-related adjustments for different key dates. You cannot adjust revenues that have already been adjusted. To make an adjustment, you first have to reverse the adjustment documents of the revenues.