Hierarchy
EA-FIN (Software Component) EA-FIN⤷
FI (Application Component) Financial Accounting⤷
FERC (Package) IS-U/FERC: Regulatory Reporting
Basic Data
| Data Element | FE_ADJ_FLOW |
| Short Description | Flag: Adjust interclearing group flows? |
Data Type
| Category of Dictionary Type | D | Domain |
| Type of Object Referenced | No Information | |
| Domain / Name of Reference Type | XFELD | |
| Data Type | CHAR | Character String |
| Length | 1 | |
| Decimal Places | 0 | |
| Output Length | 1 | |
| Value Table |
Further Characteristics
| Search Help: Name | ||
| Search Help: Parameters | ||
| Parameter ID | ||
| Default Component name | ||
| Change document | ||
| No Input History | ||
| Basic direction is set to LTR | ||
| No BIDI Filtering |
Field Label
| Length | Field Label | |
| Short | 0 | |
| Medium | 0 | |
| Long | 40 | Adjust interclearing group flows |
| Heading | 55 | Adjust percentages for interclearing group flows |
Documentation
Definition
When calculating clearing cost element percentages for multiple clearing groups in the flow of cost analysis, it is necessary to take into account allocations between the different clearing groups. There are two ways of calculating these percentages:
- Treat flows as miscellaneous (Flag not checked)
Assign all flows between clearing groups to the default clearing cost element of the clearing object sending or receiving the flow.
- Adjust flows based on sender (Flag checked)
Adjust flows between clearing groups based on the initial percentages of the sending clearing group. The initial percentages are based on the amounts in primary cost elements for each clearing group, not taking interclearing flows in to account. These percentages are applied to amounts flowing from the sender clearing group to other clearing groups.
Example
For example, prior to the adjustment of the percentages based on interclearing flows, clearing groups IT and BLDG have the following initial percentages:
Clearing group IT
Cost element Amount Initial percentage
IT Labor 750 75%
IT Other 250 25%
BLDG Services 500 [from clearing group BLDG]
IT Services 200- [to clearing group BLDG]
Clearing Group BLDG
Cost element Amount Initial percentage
BLDG Labor 500 50%
BLDG Other 500 50%
BLDG Services 500- [to clearing group IT]
IT Services 200 [from clearing group IT]
The flows between clearing groups are then adjusted, based on these initial percentages, as follows:
Treat flows as misc. | Adjust flows based on sender
Clearing group IT
COElement Amount | COElement Amount Init.%
IT Labor 750 | IT Labor 750 75%
IT Other 250 | IT Other 250 25%
BLDG Services | BLDG Services
IT Other 500 | BLDG Labor 250
| BLDG Other 250
IT Services | IT Services
IT Other 200- | IT Labor 150-
| IT Other 50-
Clearing Group BLDG
COElement Amount | COElement Amount Init.%
BLDG Labor 500 | BLDG Labor 500 50%
BLDG Other 500 | BLDG Other 500 50%
BLDG Services | BLDG Services
BLDG Other 500- | BLDG Labor 250-
| BLDG Other 250-
IT Services | IT Services
BLDG Other 200 | IT Labor 150
| IT Other 50
These adjustments are summarized, resulting in the following adjusted clearing cost element percentages:
Treat flows as miscellaneous | Adjust flows based on sender
Clearing group IT
COElement Amount Adj.% | COElement Amount Adj.%
IT Labor 750 57.7% | IT Labor 600 46.2%
IT Other 550 42.3% | IT Other 200 15.4%
| BLDG Labor 250 19.2%
| BLDG Other 250 19.2%
Clearing group BLDG
COElement Amount Adj.% | COElement Amount Adj.%
BLDG Labor 500 71.4% | BLDG Labor 250 35.7%
BLDG Other 200 28.6% | BLDG Other 250 35.7%
| IT Labor 150 21.4%
| IT Other 50 7.1%
Dependencies
The adjusted flows methodology will change the way intercompany clearing is treated, when the flag Treat all clearing costs in non-regulatory companies as miscellaneous costs is turned on.
- If interclearing flows are treated as miscellaneous, then flows between a non-regulatory company's clearing group and a regulatory company's clearing group will be assigned to the miscellaneous clearing cost element for the clearing group being analyzed.
- If intercompany flows are adjusted with the percentages of the sending clearing group, the regulatory clearing group will have its percentages adjusted for flows to and from the non-regulatory clearing group, but flows from the non-regulatory clearing group will only have the miscellaneous clearing cost element of the non-regulatory clearing group. The non-regulatory clearing group percentages will still be 100% miscellaneous. This allows for a non-regulatory clearing cost element to be identified in the regulatory clearing group, even if it is just "miscellaneous". The following example will illustrate the differences:
Example
Clearing Group NONR (in non-regulatory company code, with non-regulatory clearing treated as miscellaneous)
Cost element Amount Initial percentage
NONR Misc. 1000 100% [this includes Labor and Other, but both costs are treated as miscellaneous]
BLDG Services 500 [from clearing group BLDG]
NONR Services 200- [to clearing group BLDG]
Clearing Group BLDG
Cost element Amount Initial percentage
BLDG Labor 500 50%
BLDG Other 500 50%
BLDG Services 500- [to clearing group NONR]
NONR Services 200 [from clearing group NONR]
The flows between clearing groups are then adjusted, based on these initial percentages, as follows:
Treat flows as misc. | Adjust flows based on sender
Clearing group NONR
COElement Amount | COElement Amount Init.%
NONR Misc. 1000 | NONR Misc. 1000 100%
BLDG Services | BLDG Services
NONR Misc. 500 | NONR Misc. 500
NONR Services | NONR Services
NONR Misc. 200- | NONR Misc. 200-
Clearing Group BLDG
COElement Amount | COElement Amount Init.%
BLDG Labor 500 | BLDG Labor 500 50%
BLDG Other 500 | BLDG Other 500 50%
BLDG Services | BLDG Services
BLDG Other 500- | BLDG Labor 250-
| BLDG Other 250-
NONR Services | NONR Services
BLDG Other 200 | NONR Misc. 200
These adjustments are summarized, resulting in the following adjusted clearing cost element percentages:
Treat flows as misc. | Adjust flows based on sender
Clearing group NONR
COElement Amount Adj.% | COElement Amount Adj.%
NONR Misc. 1300 100% | NONR Misc. 1300 100%
Clearing group BLDG
COElement Amount Adj.% | COElement Amount Adj.%
BLDG Labor 500 71.4% | BLDG Labor 250 35.7%
BLDG Other 200 28.6% | BLDG Other 250 35.7%
| NONR Misc. 200 28.6%
Recommendation
Generally, the adjusted flow option will give you a more accurate analysis of cost element percentages in clearing groups, than simply treating interclearing flows as adjustments to the miscellaneous clearing category of each clearing group. It does not give the kind of accuracy that would be possible if flows between clearing groups were fully traced. However, if the flows between clearing groups are not too great a proportion of the clearing groups' primary costs, perhaps averaging no more than 25% of the clearing primary costs, the accuracy level approaches that of tracing the flows between clearing groups.
Further notes
Other advantages of the adjusted flow option are:
- It is less likely to get a large negative percentage in the miscellaneous category of the clearing group, due to costs flowing to other clearing groups.
- It is possible to add an extra layer of clearing groups for cost centers wh
History
| Last changed by/on | SAP | 20030704 |
| SAP Release Created in |
