Dear Experts,
Please go through the below scenario and share your valuable thoughts.
Scenario - Our client has recently opened a branch in India with a company code in India , and its on SAP ECC 6.0 ( Classic Ledger is implemented)
US Headquarters though on ECC 6.0, New GL is not in use.
Branch office in India has a seperate Company Code, with - AP, GL modules implemented and Controlling with CCA.
Controlling Area is assigned both to US Company code and India Company Code
Client is Head Quartered in US
The US Headquarters during its monthly consolidation, consolidates the India branch transactions and
prepares the US GAAP Financial Statements
However , valuation difference between US GAAP and India GAAP, are currently passed manually outside the SAP for India Branch Operations.
Financial Statements for India Branch operations are prepared outside SAP
Requirement
Now the client wants the India Branch to post the differential entries ( between US GAAP VS INDIA GAAP) within SAP.
However HQ don't want to create a seperate GL Account is created in India Branch, as it would create issues during consolidation.
Please note these differential entries are quite few - max some 20-30 entries per annum
Given the scenario and very small size of operations, do you suggest to implement Special Purpose Ledger for India Branch operations?
If yes , may I have positives / Negatives
If no, what would be the ideal way of solutioning this scenario.
Appreciate your valuable answers
Thanks
Sanjai