When allocations are made in Controlling, postings are usually generated that have no effect on financial accounting. These postings do not update any G/L account transaction figures, but are purely postings within Controlling. However, if an allocation in Controlling leads to a change in the functional area or another characteristic that is relevant for evaluations in financial accounting, there is a shift between the affected items in the income statement. This information must therefore be transferred to financial accounting. This reconciliation between Controlling and Financial Accounting takes place via real-time integration.

Real-time integration enables the immediate transfer of all controlling documents to financial accounting. This means that financial accounting is reconciled with controlling at all times.

A document is created in Financial Accounting for every posting in Controlling. As a result, all detailed information that is also contained in the CO documents is available at all times in the reports of the new general ledger, structured according to e.g:

• Functional area
• Cost center
• Internal order

Integration

The real-time integration we have implemented replaces the reconciliation postings listed above. Each cost element involved in a transfer posting that is relevant for the P&L is assigned a general ledger account. Each allocation in Controlling then leads to an assigned general ledger item via real-time integration.