AC665 Integration

AC665 IntegrationAC665 R/3 System Release 46C 04/26/2001 0 AC665 Integration.............................................................................................................................................................1 Copyright.......................................................................................................................................................................2 Enterprise Controlling................................................................................................................................................4 Course Prerequisites...................................................................................................................................................5 Target group...............................................................................................................................................................6 Course Goal...............................................................................................................................................................7 Course Objectives......................................................................................................................................................8 Course Content...........................................................................................................................................................9 Main Business Scenario...........................................................................................................................................10 Course Overview Diagram......................................................................................................................................11 Group Control: Procedures and Infrastructure...............................................................................................................1 Group Control: Procedures and Infrastructure Unit Objectives................................................................................2 Course Overview Diagram........................................................................................................................................3 Group Control: Procedures and Infrastructure Business Scenario............................................................................4 Managing a Global Enterprise...................................................................................................................................5 Strategy: Decentralizing Responsibility....................................................................................................................6 Consolidation: Requirements.....................................................................................................................................7 Enterprise Controlling................................................................................................................................................8 Strategic Enterprise Management..............................................................................................................................9 SAP Consolidation - Future Development..............................................................................................................10 EC-CS: Functions....................................................................................................................................................11 Model Group: IDES.................................................................................................................................................12 Strategic Business Unit ...........................................................................................................................................13 Enterprise Structure and Consolidation Type..........................................................................................................14 Profit Center Consolidation.....................................................................................................................................15 Data Stream..............................................................................................................................................................16 Performance Key Figures in the Model Group........................................................................................................17 Group Control: Procedures and Infrastructure Unit Summary................................................................................18 Exercise Data...........................................................................................................................................................19 Group Control-Solutions..........................................................................................................................................28 Integrated Data Transfer: FI...........................................................................................................................................1 Integrated Data Transfer: FI Unit Objectives............................................................................................................2 Course Overview Diagram........................................................................................................................................3 Integrated Data Transfer: FI Business Scenario.......................................................................................................4 Integration of Master Data.........................................................................................................................................5 EC-CS: Data Structures.............................................................................................................................................6 Organizational Structures...........................................................................................................................................7 Consolidation Dimension and Hierarchies................................................................................................................8 Business Area Consolidation.....................................................................................................................................9 Versions...................................................................................................................................................................10 Ledger and Currency................................................................................................................................................11 Consolidation Chart of Accounts.............................................................................................................................12 Chart and Breakdown Category...............................................................................................................................13 Subitems...................................................................................................................................................................14 Global Session Parameters.......................................................................................................................................15 Financial Accounting...............................................................................................................................................16 Preparation in FI......................................................................................................................................................17 IMG Settings: Different Systems.............................................................................................................................18 FI: Organizational Elements....................................................................................................................................19 Assignment: Company Code - Company................................................................................................................20 Additional Account Assignment: Business Area.....................................................................................................21 Assignments: Asset Master Record.........................................................................................................................22 Trading Partner Information: FI...............................................................................................................................23 Preparation in FI: Document Type..........................................................................................................................24 Company Code Assignment: Business Area...........................................................................................................25 Consolidation Business Area...................................................................................................................................26 Preparation for Business Area Consolidation..........................................................................................................27 Business Area Adjustment.......................................................................................................................................28 Transaction Types....................................................................................................................................................29 Preparation in FI: Functional Areas.........................................................................................................................30 Preparations: Controlling.........................................................................................................................................31 Preparations: Materials Management......................................................................................................................32 Preparations: Sales...................................................................................................................................................33 Integrated Data Transfer: FI Unit Summary...........................................................................................................34 Integrated Data Transfer-Exercises..........................................................................................................................35 Integrated Data Transfer-Solutions..........................................................................................................................42 Data Transfer Methods: FI Data....................................................................................................................................1 Data Transfer Methods: FI Data Unit Objectives......................................................................................................2 Course Overview Diagram........................................................................................................................................3 Data Transfer Methods: FI Data Business Scenario..................................................................................................4 Consolidation With Different Releases.....................................................................................................................5 Data Transfer Methods..............................................................................................................................................6 Prepare Data Transfer................................................................................................................................................7 Sender System: Data Transfer Method......................................................................................................................8 Realtime Update.........................................................................................................................................................9 Rollups.....................................................................................................................................................................10 Transferring Values from Transaction G/L Accounts.............................................................................................11 Creating a Group Chart of Accounts/Items.............................................................................................................12 FI Accounts / Secondary Cost Elements..................................................................................................................13 Periodic Extract........................................................................................................................................................14 Transaction Accounts - Periodic Extract.................................................................................................................15 Data Transfer Methods Periodic Extract..................................................................................................................16 Assigning Consolidation Types to Dimensions.......................................................................................................17 Converting Organizational Units.............................................................................................................................18 Organizational Units: Rules for ID Combination....................................................................................................19 Maintaining Hierarchies...........................................................................................................................................20 Realtime Updates: Defining Document Types........................................................................................................21 Defining Data Streams.............................................................................................................................................22 Data Transfer Methods: FI Data Unit Summary......................................................................................................23 Data Transfer methods-Exercises............................................................................................................................24 Data Transfer methods-Solutions............................................................................................................................33 Consolidation Activities and Reporting.........................................................................................................................1 Consolidation Activities and Reporting: Unit Objectives.........................................................................................2 Course Overview Diagram........................................................................................................................................3 Consolidation Activities and Reporting: Business Scenario.....................................................................................4 Preparing Consolidation Activities and Reporting....................................................................................................5 Carrying Forward Balances.......................................................................................................................................6 Methods of Transferring Data to EC-CS...................................................................................................................7 EC-CS: Entering Additional Financial Data..............................................................................................................8 Determining Contra Items..........................................................................................................................................9 Calculating Retained Earnings: Selected Items.......................................................................................................10 Validation.................................................................................................................................................................11 Currency Translation...............................................................................................................................................12 Data Monitor............................................................................................................................................................13 Consolidation Monitor.............................................................................................................................................14 Interunit Elimination................................................................................................................................................15 Document Matching.................................................................................................................................................16 Information System..................................................................................................................................................17 Consolidation Activities and Reporting: Unit Summary.........................................................................................18 Exercises..................................................................................................................................................................19 Solutions..................................................................................................................................................................21 Integrated Data Transfer: EC-PCA................................................................................................................................1 Integrated Data Transfer: EC-PCA Unit Objectives..................................................................................................2 Course Overview Diagram........................................................................................................................................3 Integrated Data Transfer: EC-PCA Business Scenario..............................................................................................4 Data Stream................................................................................................................................................................5 Profit Center Hierarchy..............................................................................................................................................6 Global Settings: Profit Center....................................................................................................................................7 Profit Center: Master Record.....................................................................................................................................8 Profit Center Assignment...........................................................................................................................................9 Profit Center Origin: Asset Master Record..............................................................................................................10 CO and FI Reconciliation........................................................................................................................................11 Preparation for Profit Center Consolidation............................................................................................................12 Global Session Parameters.......................................................................................................................................13 Profit Center Consolidation: Hierarchy...................................................................................................................14 Partner Relationships: EC-PCA...............................................................................................................................15 Logistics: Partner Profit Center...............................................................................................................................16 LO Partner Assignment: One-Client System...........................................................................................................17 Balance Sheet Profit Centers...................................................................................................................................18 Profit Center: Additional Balance Sheet Accounts..................................................................................................19 EC-PCA Preparing Data: Unit Summary................................................................................................................20 Integrated Data Transfer: EC-PCA Exercises..........................................................................................................21 Integrated Data Transfer-Solutions..........................................................................................................................23 Data Transfer Methods: EC-PCA..................................................................................................................................1 Data Transfer Methods: EC-PCAUnit Objectives.....................................................................................................2 Course Overview Diagram........................................................................................................................................3 Data Transfer Methods: EC-PCABusiness Scenario.................................................................................................4 Assigning Consolidation Types to Dimensions.........................................................................................................5 Converting Organizational Units...............................................................................................................................6 Organizational Units: Rules for ID Combination......................................................................................................7 Transferring/Editing Hierarchies...............................................................................................................................8 EC-PCA: Transferring FS Items / Data.....................................................................................................................9 Transfer Data: Defining Data Streams.....................................................................................................................10 Standard Rollup.......................................................................................................................................................11 Rollup Header..........................................................................................................................................................12 Rollup Header: Reset Set.........................................................................................................................................13 Rollup Header: Defining The Rollup Set.................................................................................................................14 Rollup Sequence......................................................................................................................................................15 Standard Exits..........................................................................................................................................................16 Field Transfer and Standard Exits............................................................................................................................17 Rollup in Different Systems.....................................................................................................................................18 Data Transfer Methods: EC-PCAUnit Summary....................................................................................................19 Exercises..................................................................................................................................................................20 Data Transfer methods-Solutions............................................................................................................................25 Key Figures....................................................................................................................................................................1 Key Figures: Topic Objectives..................................................................................................................................2 Course Overview Diagram........................................................................................................................................3 Key Figures: Business Scenario.................................................................................................................................4 EC-CS Reporting.......................................................................................................................................................5 Reporting....................................................................................................................................................................6 Technique for Cash Flow Reports.............................................................................................................................7 Performance Key Figures in the Model Group..........................................................................................................8 Performance Key Figures I........................................................................................................................................9 Performance Key Figures II.....................................................................................................................................10 Key Figures in the Consolidated Chart of Accounts...............................................................................................11 Reconciliation of FI and PCA Results in EC-CS.....................................................................................................12 Key Figure ROA - Report in EC-CS.......................................................................................................................13 Performance Key Figures: Trends...........................................................................................................................14 EVA®: Influencing Factors.....................................................................................................................................15 Task Distribution: Controlling / Group Accounting................................................................................................16 EVA® with SAP EC-EIS and inSight.....................................................................................................................17 EVA®: Weighted Average Cost of Capital.............................................................................................................18 Key Figures: Unit Summary....................................................................................................................................19 Key figures-Exercises..............................................................................................................................................20 Key Figures-Solutions.............................................................................................................................................21 Appendix........................................................................................................................................................................1 Example: LO Integration with FI and EC-PCA.........................................................................................................2 Example: LO Integration with FI and EC-PCA.........................................................................................................3 Purchase Order...........................................................................................................................................................4 Delivery and Picking..................................................................................................................................................5 Goods Issue................................................................................................................................................................6 Goods Receipt............................................................................................................................................................7 Invoicing....................................................................................................................................................................8 Incoming Invoice.......................................................................................................................................................9 -................................................................................................................................................................................10 0 © SAP AG 1999 AC665 Integration © SAP AG AC665 AC665 EC-CS Integration EC-CS Integration Þ R/3 Þ Release 4.6B Þ December 1999 Þ Material number 5003 5819 0.2 © SAP AG 1999 Copyright 2001 SAP AG. All rights reserved. Neither this training manual nor any part thereof may be copied or reproduced in any form or by any means, or translated into another language, without the prior consent of SAP AG. The information contained in this document is subject to change and supplement without prior notice. All rights reserved. Copyright Þ Trademarks: Þ Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Þ Microsoft®, WINDOWS®, NT®, EXCEL®, Word® and SQL Server® are registered trademarks of Microsoft Corporation. Þ IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation. Þ ORACLE® is a registered trademark of ORACLE Corporation, California, USA. Þ INFORMIX®-OnLine for SAP and Informix® Dynamic ServerTM are registered trademarks of Informix Software Incorporated. 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Þ Design: SAP Communications Media 0.3 © SAP AG 1999 Enterprise Controlling Cost Management and Controlling AC040 5 days Financial Accounting and Reporting AC010 5 days Profit Center Accounting AC610 2 days EC-CS: Consolidation functions AC660 5 days Financial Closing AC205 2 days E C - E I S: Executive Information System E C - B P: Business Planning E C - P C A: Profit Center Accounting Level 3 Special Purpose Ledger AC220 5 days E C - C S: Consolidation Executive Information System (EIS) 3 - Business Planning AC625 4.6b 1 day Executive Information System (EIS) 1 - Reporting AC615 4.6b 2 days Level 2 Executive Information System (EIS) 2 - Setting up the system AC620 4.6b 2 days EC-CS: Integration AC665 3 days A Controlling A Enterprise Controlling B Financial Accounting C Capital Consolidation C C C B B B B B 0.4 © SAP AG 1999 ¤ Required Þ Knowledge of business processes Þ Basic knowledge of accounting: individual financial statements and consolidation ¤ Recommended Þ SAP20 - Overview of SAP R/3 Þ AC010 - Overview of External Accounting Þ AC660 - Consolidation Functions Course Prerequisites 0.5 © SAP AG 1999 ¤ Participants: Þ Project managers, project teams Þ Consultants ¤ Duration: 3 days Target group Remarks Þ This course material is not intended for self teaching programs. The course is only complete in conjuction with the instructor's explanations. This is why there is sufficient space for your notes. 0.6 © SAP AG 1999 ¤ Configure and prepare the R/3 component for consolidation ¤ Understand SAP terminology ¤ Understand how integration between EC-CS and EC-PCA / FI works ¤ Understand financial key figures that can be calculated using consolidated data At the conclusion of this course, you will be able to: Course Goal 0.7 © SAP AG 1999 ¤ Configure the sender and receiver systems ¤ Create EC-CS master data using the link to FI charts of accounts/EC-PCA profit center hierarchies ¤ Use the integrated environment to transfer values for individual financial statements from the transaction systems ¤ Work through consolidation steps resulting from the data integration ¤ Reconcile FI data with PCA data in the EC-CS component At the conclusion of this course, you will be able to Course Objectives 0.8 © SAP AG 1999 Unit 5 Integrated Data Transfer: EC-PCA Unit 6 Data Transfer Methods: EC-PCA Unit 7 Key Figures Unit 1 Group Control: Procedures and Infrastructure Unit 2 Integrated Data Transfer: FI Unit 3 Data Transfer Methods: FI Data Unit 4 Consolidation Activities and Reporting Preface Exercises Solutions Appendix Course Content 0.9 © SAP AG 1999 ¤You are a consultant for the consolidation department of your enterprise. ¤As a member of the project team, your task is to configure the system for consolidation so that the various options for transferring data from FI or EC- PCA can be utilized optimally. ¤Next, you test the integrated environment, and show the project team various techniques for transferring data. ¤You will then test the consolidation of the data, and use the high level of data integration to calculate key figures from the consolidated data. Main Business Scenario 0.10 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting PCA Data CO Controlling FI-GL General Ledger Course Overview Diagram 1 © SAP AG 1999 ¤ Requirements for Consolidation Systems ¤ The IDES Model Group Group Control: Procedures and Infrastructure Contents (C) SAP AG AC665 1 1.2 © SAP AG 1999 At the conclusion of this unit, you will be able to: ¤Describe reasons for consolidation within a corporate group ¤Name various consolidation types ¤Name the various organizational structures of the EC-CS components ¤Choose the consolidation dimension using the session parameters Group Control: Procedures and Infrastructure Unit Objectives (C) SAP AG AC665 2 1.3 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting PCA Data CO Controlling FI-GL General Ledger Course Overview Diagram (C) SAP AG AC665 3 1.4 © SAP AG 1999 ¤Your task is to hierarchically organize a complex company structure for the group dimension, and to prepare the data from individual subsidiaries for consolidated financial statements. ¤Before transferring the data from the sender systems, you want an overview of the functionality offered by the EC-CS component. ¤You will then determine the various consolidation types for which you require the data from the sender systems. Group Control: Procedures and Infrastructure Business Scenario (C) SAP AG AC665 4 1.5 © SAP AG 1999 Enterprise Management ? AR USA MEX D F E J How can we manage the activities of our enterprise in various countries and markets, operate locally, and promote the global strategy of the group? Managing a Global Enterprise Þ Complex group structures have to be managed effectively. At the same time, increasing globalization requires decentralized group management for independent organizational units. Business units that are close to the market have to be managed decentrally in order to leverage their full market potential. (C) SAP AG AC665 5 1.6 © SAP AG 1999 AR USA MEX D F E J Enterprise Management Strategic Business Unit Targets Reports America Europe/Africa Asia B C A Strategy: Decentralizing Responsibility Þ Global process optimization allows synergies (know-how, core competencies) to be detected more quickly and used more efficiently in the group. New business concepts can be transferred from one unit to another. Þ Enterprise goals are increasingly being set "from the outside" - by shareholders, for example. Enterprise management now has the task of implementing these goals internally. Þ The corporate group head office calculates key figures and defines goals for the strategic business entities. Here, non-monetary success factors also have an influence: the group has the relevant information earlier, and no longer has to wait until effects are seen in P&L. Þ Formerly, external and internal accounting were usually separate (for example, due to different valuation methods). Nowadays, the goal is to unite external and internal accounting, since the requirements for legal consolidation also comprise a certain amount of information relevant to cost accounting. The enterprise is controlled according to internal enterprise structures that can be very detailed. This means that extremely flexible structures are necessary. The company is no longer the basis of consolidation in all areas. (C) SAP AG AC665 6 1.7 © SAP AG 1999 ¤ External Group Reporting / Consolidation Þ Reporting procedure in accordance with international reporting regulations: US GAAP, IAS... ¤ Internal Group Reporting / Consolidation Þ Management consolidation: business areas, profit centers Þ Various data categories, including actual data, budget, forecast ¤ Enterprise Key Figures Þ Calculation at various hierarchy levels Consolidation: Requirements Þ Automatic creation of consolidated financial statements Þ Flexible definition of consolidation methods Þ In legal consolidation, the consolidation units are the legally independent companies. They report their individual financial statements to the group, which are used to compute the consolidated financial statement. Þ In management consolidation, the consolidation areas can be profit centers or business areas. Þ In the R/3 System, integrated data can be transferred directly from the transaction systems to consolidation. You can work with planned and budget values, or carry out simulations. Þ The standard system includes all international consolidation methods that are commonly used. (C) SAP AG AC665 7 1.8 © SAP AG 1999 Management Cockpit Executive Board Financial Executives Enterprise Controlling EC-BP Online Info Managers EC-EIS EC-CS EC-PCA Markets Non- SAP Non- SAP Transaction Applications Enterprise Controlling Þ EC-EIS is the information system for senior management. Data from the various partial information systems inside and outside of the enterprise (accounting, human resources, controlling, and enterprise controlling) is grouped together to form a uniform dimension. Since this data is very heterogeneously structured, the data basis can be divided up into data areas that are self-contained from a business point of view. Þ EC-BP: Actual/planned data, as well as investment requirements can be transferred from the transaction applications in the group, making it easier to determine planning data for the transaction units. Þ EC-CS comprises general consolidation functions for external reporting, but also for the internal reporting structure in accordance with the internal management structure. Migration tools for migrating from FI-LC to EC-CS are available since March 2000. EC-CS consolidates 'financial data' from external and internal accounting. What is more, EC-EIS imports the critical control values for enterprise controlling from the logistics and human resource applications. General key figure reports in EC-EIS are complemented by EC-CS data in a highly aggregated form. The transferred EC-CS data are presented in EC-EIS in joint reports. Þ EC-PCA provides information on profitability and capital tie-up in units that are responsible for earnings (profit centers). (C) SAP AG AC665 8 1.9 © SAP AG 1999 Corporate Performance Monitor (CPM) Business Planning & Simulation (BPS) Business Information Collection (BIC) Stakeholder Relationship Management (SRM) SAP SEM SAP SEM BW Business Consoli- dation (BCS) ¤ BPS: Links strategic planning and business planning ¤ CPM: Balanced scorecards, management cockpit and key figure systems help an enterprise to fulfil its strategic goals ¤ SRM: Integrates the communication with the stakeholders ¤ SEM-BCS: Automates the consolidation process ¤ BIC: Supports the automatic acquisition of external and internal business information Strategic Enterprise Management Þ Success is measured by the speed with which a business strategy can be realized. To optimize enterprise controlling SAP has developed the New Dimensions component Strategic Enterprise Management (SEM). Þ One of the main advantages of SAP SEM is the support it offers to strategic management processes by linking strategic and operational actions. Þ Internal control of an enterprise can be carried out using value-oriented management principles. (C) SAP AG AC665 9 1.10 © SAP AG 1999 SAP Consolidation Engine EC-CS Consolidation SEM-BCS Business Consolidation Value Based Management Functions R/3 OLTP Structures fixed partially flexible BW OLAP Structures SAP Consolidation - Future Development Þ SAP SEM is an analytical application and is based on complex OLAP and Data Warehouse technology (OLAP: Online Analytical Processing). Þ The SAP consolidation engines used by both EC-CS and SEM-BCS contains all the consolidation functions. The consolidated data can be made available in the OLTP system (R/3 EC-CS) or in BW (SEM-BCS). Alternatively, reported data can in future be consolidated and analyzed in BW. Þ In R/3 the EC-CS structures, both fixed and flexible (user definable), continue to be available and applicable in OLTP systems. OLTP (Online Transactional Processing): The data is stored in tables and is, to a certain extent, user definable. Þ The Business Information Warehouse (BW) contains the business data, among other things the consolidated data. The data is contained in a multidimensional data cube (OLAP structure). (C) SAP AG AC665 10 1.11 © SAP AG 1999 EC-CS: Functions Currency Translation Versions Simulation Restatement Master Data Validation Profit and loss Statement 1 2 3 C A Sales B 50 Interactive Excel Manual Posting Drilldown Reports Monitor OK ERR Data Collection • FI Interface • CO Interface • PC Data Transfer • Flex. File Upload Report Writer Report Painter Þ Interunit Elimination Þ Profit Elim. in Inventory Þ Consolidation of Investments Þ Reclassification Automatic Consolidation MS Access Þ Applications of EC-CS : · Company consolidation · Management consolidation Þ Characteristics: · Flexible hierarchies of consolidation units · SAP integration for companies, business areas, profit centers · Tools for online and offline data entry · Flexible interfaces for subsidiaries with systems made by other manufacturers · Powerful reporting functionality, drilldown to transaction SAP components · International rules for reporting (US-GAAP, IAS) · Versions for data categories, simulation, planning (C) SAP AG AC665 11 1.12 © SAP AG 1999 SBU 6000 Pharma DIV 62 Diabetical Subsidiary C20000 IDES New York Parent Company C10000 IDES Palo Alto Insulin Products for Distribution Medical Substances & Packaging Material Medical Substances & Packaging Material SBU 6000 Pharma DIV 61 Analgesics DIV 62 Diabetical Subsidiary C30000 IDES Chicago SBU 8000 Services DIV 81 Pharma Market Research SBU 4000 Chemicals DIV 43 Medical Substances DIV 41 Packaging Material SBU 9900 Corporate and Others SBU 9900 Corporate and Others SBU 9900 Corporate and Others Model Group: IDES SBU: Strategic Business Unit DIV: Division Þ The IDES model group is based in the USA. It comprises three enterprises: · The corporate head office, IDES Palo Alto (company code C100, company C10000, business area Pharma) produces pharmaceuticals (analgesics and anti-diabetic agents) and delivers the anti- diabetic agents to IDES New York for sale and distribution. · IDES Chicago (company code C300, company C30000) operates in the business areas Chemicals and Services. The company supplies IDES Palo Alto and IDES New York with raw materials and packaging material from the business area Chemicals. IDES Chicago carries out market research in the business area Services, the results of which are sold to external companies and IDES Palo Alto. · IDES New York (company code C200, company C20000, business area Pharma) sells and distributes the products manufactured by both companies. (C) SAP AG AC665 12 1.13 © SAP AG 1999 Product Line MONO Þ AS Asparax Þ PCM Paracetamol Analgesics Division Analgesics Division Product Line COMBO Þ Codeine Codeine & PCM Þ Azur Codeine & AS Product Line Human based Insulin Þ Insulin Þ H-Insulin Diabetical Division Diabetical Division Product Line Animal based Insulin Þ B-Insulin Strategic Business Unit "Pharma" Þ The IDES model group has divided its enterprises into the segments Pharma /Chemicals, Services, and Corporate and Others. Þ The strategic business unit Pharma consists of two divisions: · Painkillers, with the product lines Mono (products AS and PCM) Combo (compound preparations) · Diabetical products, with the product lines Human based insulin Animal based Insulin Þ The strategic business unit Pharma is represented by business area 6000, and by a node in the profit center hierarchy. This enables you, on the one hand, to create external reports according to international rules for reporting, and on the other to compare values from internal and external dimensions with one another. Þ Since these business units supply each other, partner relationships have to be assigned to the transaction applications so that internal business volume, as well as payables and receivables can be eliminated at the group level. (C) SAP AG AC665 13 1.14 © SAP AG 1999 Palo Alto Chicago New York Palo Alto / Pharma Chicago / Chemicals Chicago / Services New York / Pharma Consolidation Group Consolidation Unit Hierarchy 1: Companies Palo Alto / Pharma Pharma Chemicals Services Corporate Other New York / Pharma Consolidation Group Consolidation Unit Hierarchy 2: Business areas ... ... H2 H2 H1 Dimension: Business area Consolidation Enterprise Structure and Consolidation Type Þ The internal structure of the enterprise is reflected in the organizational elements of external accounting (for a segment report procedure according to international rules). Þ In EC-CS, three consolidation types are provided for use in integration with SAP transaction applications: · Company consolidation · Business area consolidation · Profit center consolidation These consolidation types are displayed in dimensions. Dimensions allow various views of the consolidation data. These can be stored and managed separately for each dimension. Þ A dimension can contain several hierarchies according to various statutory or internal requirements. For example, for a business area consolidation dimension: · Reflect the business areas with reference to the legal companies · Breakdown of the group according to group areas. Þ The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. Þ The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting. Þ The consolidation units and groups are assigned hierarchically to a top consolidation group. A dimension comprises at least one hierarchy structure. (C) SAP AG AC665 14 1.15 © SAP AG 1999 Consolidated data Consolidated data SEG A SEG A Pharma Pharma & Chemicals & Chemicals SBU SBU Chemicals Chemicals DIV DIV Medical Substances Medical Substances Acetyl Paracetamol H-Insulin SEG B SEG B Services Services SEG C SEG C Corporate and Others Corporate and Others SBU SBU Pharma Pharma DIV DIV Analgesics Analgesics DIV DIV Diabetical Products Diabetical Products Mono Mono Combo Combo AS PCM H H- -Insulin Insulin A A- -Insulin Insulin Insulin H-Insulin Strategic Business Unit Division Product Line Product EC-CS Consolidation Unit Palo Alto Insulin New York Insulin Profit Center Consolidation Þ If you use consolidation with integration to general ledger or profit center accounting, you generate the consolidation units and groups from the organizational units of the respective operating applications. Þ The consolidation groups are defined by the profit centers and hierarchy nodes, the consolidation unit is built by the profit center and the company. (C) SAP AG AC665 15 1.16 © SAP AG 1999 CO CO- -PA PA HR HR Cost Center Order Project P&L Accounts and CO Object Bal. Sheet Acct SD SD MM MM BP Business Planning EIS Executive Information System EC-CS Consolidation Dimension FI Data Consolidation Unit = Company / Business Area PCA Data CU = Company / Profit Center EC-PCA Profit Center Accounting Profit Center, Company Code CO Controlling FI-GL General Ledger ¤Assets ¤Receivables ¤Payables ¤Assets ¤Receivables ¤Payables ¤WIP ¤Inventory ¤Other. ¤WIP ¤Inventory ¤Other. Data Stream Þ EC-CS consolidates on the basis of the organizational units company, business area, and profit center and is optimally integrated with these systems. Þ If the transaction applications and the Consolidation system are all in the same client of the same system, data can be transferred to the Consolidation system online (in realtime). Þ Additionally, data can be transferred by periodic extract or rollup from non-SAP systems. (C) SAP AG AC665 16 1.17 © SAP AG 1999 Consolidated data Consolidated data Enterprise Strategic Business Unit Division Product Line Product CF Total Cash Flow ROCE Return on Capital Employed EBITDA Earnings before Interest ... and others: Sales, Profit ROA Return on Operating Asset EBITDA Earnings before Interest ... CF Transaction Cash Flow and others: Sales, OPEX Performance Key Figures in the Model Group Chemicals ... Pharma Combo Diabetical Analgesics Mono AS PCM Þ For internal group reporting consolidation can be executed on different levels of the company. Þ You can calculate key figures on different internal levels. They are used for internal/external evaluation of companies and for managing the company. Þ For example, on product line level, you can define a profit center as an independent area of responsibility and analyze its profitability by key figures. Key figures can be used both as targets and as incentives. Þ Consolidated data are particularly suitable for performance figures because of its aggregated data. (C) SAP AG AC665 17 1.18 © SAP AG 1999 You are now able to: ¤List the reasons for using consolidation in your corporate group ¤List the different types of consolidation ¤List and distinguish between the organizational structures of the EC-CS component ¤Use the sessions parameters to select the consolidation dimension Group Control: Procedures and Infrastructure Unit Summary (C) SAP AG AC665 18 1.19Exercise Data Data in Training System ## = your course group number Data in IDES System Organizational Elements Company Name C10000 IDES Palo Alto C20000 IDES New York C30000 IDES Chicago Company code Name C100 IDES Palo Alto C200 IDES New York C300 IDES Chicago Business area Name 4000 Chemicals 6000 Pharma 8000 Services 9900 Corporate/Other Functional areas 0100 Production 0110 Direct costs 0120 Overhead costs, production 0130 Credit, production 0300 Sales 0400 Administration 0500 Research & development 0980 Accrued costs (not in income statement) Controlling area C001 - for all course groups C001 - EC North America Chart of Accounts CAUS CAUS (C) SAP AG AC665 19 Group chart of accounts CONS CONS (C) SAP AG AC665 20 Account assignment elements G/L account Name Example: 1440## 40 + your group no. 14 ¬ 144054 This example applies to all G/L accounts. Receivables, affiliated companies 1440## Gr. ## 144000 Receivables, affiliated companies Business area adjustment account 1449## Receivables, affiliated companies Business area adjustment account 144098 Payables, affiliated companies 1640## Gr. ## 164000 Payables, affiliated companies Business area adjustment account 1649## Payables, affiliated companies Business area adjustment account 164098 Net sales, affiliated companies 8020## Gr. ## 802000 Consumption of raw materials 4000## Gr. ## 400000 Primary Cost Element Example: 4000## 40 + your group no. 14 ¬ 400054 This example applies to all primary cost elements. Consumption of raw materials 4000## Gr. ## 400000 Net sales, domestic 8020## Gr. ## 802000 Group chart of accounts CONS CONS EC-CS Cons. chart of accounts Name 01 US, ARE Balance Sheet, COGS 01 US, ARE Balance Sheet, COGS (C) SAP AG AC665 21 Group account Group chart of accounts is identical to item in consolidation chart 01 Example: 1301## 40 + your group no. 14 ¬ 130154 This example applies to all group charts/items in consolidation chart of accounts 01. Group account Name Receivables affiliated companies 1301## Receivables affiliated companies 130100 Receivables, affiliated companies Business area adjustment account 1301## Receivables, affiliated companies Business area adjustment account 130100 Payables, affiliated companies 2101## Payables, affiliated companies 210100 Payables, affiliated companies Business area adjustment account 2101## Payables, affiliated companies Business area adjustment account 210100 Net sales, affiliated companies 3012## Net sales, affiliated companies 301200 Consumption of raw materials 3101## Consumption of raw materials 310100 Standard Hierarchy CUSA Standard hierarchy of controlling area C001 for all course groups CUSA Standard hierarchy of controlling area C001 (C) SAP AG AC665 22 Cost center Name C100C6111M Manufacturing Product Acetyl C100C6112M Manufacturing Product Paracetamol C100C6111A Administration Product AS C100C6112A Administration Product PCM C300C4311M Manufacturing Product Acetyl C300C4312M Manufacturing Product Paracetamol C300C4311A Administration Product Acetyl C300C4312A Administration Product Paracetamol Profit Center Standard Hierarchy C-Top-1 North America C-Top-1 North America Profit Center Name C-BA-6-BS B/S Business Unit PHARMA C6111 AS C6112 PCM C-BA-4-BS B/S Business Unit CHEMIE C4311 Acetyl C4312 Paracetamol C9902 Administration (C) SAP AG AC665 23 Dimension Name A2 through T2 Business area consolidation Gr## Example: A2: Gr01 B2: Gr02 J2: Gr10 02 Business area consolidation A3 through T3 Profit center consolidation Gr## 03 Profit center consolidation (C) SAP AG AC665 24 Worksheet for exercise data: Group_____ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (C) SAP AG AC665 25 Konzernsteuerung: Verfahren und Infrastruktur Exercises Unit: Group Control: Procedures and Infrastructure Topic: Positioning At the conclusion of these exercises, you will be able to: Þ Name the strategic business units in the IDES model group Þ Describe the organizational units of consolidation Your enterprise comprises internal and external organizational structures. You should adapt these structures adequately to match SAP organizational units. 1-1 Name the strategic business units of the IDES model group. ______________________________________________________________ ______________________________________________________________ 1-2 Complete the sentences: 1-2.1 A dimension defines a particular ______________________ of group reporting - for example, company consolidation, business area consolidation, or profit center consolidation. 1-2.2 The business object ___________________ is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. 1-2.3 The business object consolidation group is an arbitrary grouping of several ________________________ for the purpose of consolidation and reporting. (C) SAP AG AC665 26 1-2.4 The consolidation units for the profit center consolidation area generated from _________________________ and _______________________. 1-2.5 Which additional consolidation groups are generated in profit center consolidation that are not generated in business area consolidation? (C) SAP AG AC665 27 1.20 Group Control-Solutions Unit: Group Control: Procedures and Infrastructure Topic: Positioning 1-1 Name the strategic business units of the IDES model group. Chemicals, Pharma, Services, Corporate and Others 1-2 Complete the sentences: 1-2.1 A dimension defines a specific characteristic of group reporting - for example, company consolidation, business area consolidation, or profit center consolidation. 1-2.2 The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. 1-2.3 The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting. 1-2.4 The consolidation units for the profit center consolidation area generated from profit centers and companies. 1-2.5 Which additional consolidation groups are generated in profit center consolidation as opposed to business area consolidation? Consolidation groups that correspond to the profit center hierarchy are generated. (C) SAP AG AC665 28 2 © SAP AG 1999 ¤ EC-CS: Data Structures ¤ FI: Terms and Assignments Contents Integrated Data Transfer: FI (C) SAP AG AC665 1 2.2 © SAP AG 1999 At the conclusion of this unit, you will be able to: ¤Describe EC-CS master data and its function ¤Name the enterprise structures in the transaction system, and link these to the consolidation structures ¤Name various data transfer methods and their functions ¤Prepare data transfers for legal or management consolidation. Integrated Data Transfer: FI Unit Objectives (C) SAP AG AC665 2 2.3 © SAP AG 1999 BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting CO Controlling FI-GL General Ledger EC-CS Consolidation Dimension FI Data PCA Data Course Overview Diagram (C) SAP AG AC665 3 2.4 © SAP AG 1999 ¤ The company puts you in charge of preparing external and internal consolidation types. ¤ Before you can transfer data from the sender system to the Consolidation system, you will have to analyze the various integration options, and acquire an overview of the various upstream components. ¤ Next, in the sender system, you will prepare the structures for transferring the data to the Consolidation system. When you do this, the enterprise structure of the upstream components will be linked with those of the Consolidation system, and the consolidation units and groups will be generated in the Consolidation system. ¤ You then decide how you will supply the consolidation types with values from the sender systems, and choose the appropriate data transfer method. Integrated Data Transfer: FI Business Scenario (C) SAP AG AC665 4 2.5 © SAP AG 1999 ¤Sender System Þ Companies Þ Business Areas Þ Profit Center Þ Accounts Þ Secondary Cost Elements Þ Add. Account Assignments (Region, Functional Area, Cost Center...) ¤Consolidation System Þ Dimension Þ Version Þ Ledger Þ Organizational Units: - Consolidation Units - Consolidation Groups - Consolidation Hierarchy Þ Consolidation Chart of Accounts, Financial Statement Items Þ Subitems FI FI EC- CS EC- CS Integration of Master Data Þ Consolidation is centered on grouping together data from individual elements of an organization to form a unified whole. The aim of consolidation is to show only the external relationships, and to eliminate internal connections and processes. Þ Against this background, two types of master data are of primary importance: · The organizational units themselves, together with their structure, and · The financial statement items, whose structure determines the content of the data. Þ The financial statement item is the basis of entries, postings, and reporting within consolidation. Its use is not merely confined to variables from financial statements, income statements, or appropriation of retained earnings that are relevant to financial accounting. Statistical information and key figures can also be managed using financial statement items. In the Consolidation system, their properties attributes are determined on the basis of the FS item type, where-applied indicator, FS item category, debit/credit sign, and breakdown category. Þ Subitem: A subitem is an optional additional account assignment. For example, financial statement items for fixed assets may have to be additionally assigned with transaction types so that all changes in the financial statement items are shown from the opening to the closing balance. (C) SAP AG AC665 5 2.6 © SAP AG 1999 EC-CS: Data Structures (C) SAP AG AC665 6 2.7 © SAP AG 1999 Palo Alto New York Palo Alto / Pharma Chicago / Chemicals Chicago / Services New York / Pharma ... ... ... Consolidation Group Chicago Consolidation Unit Legal Business Unit: Company Legal Business Unit: Legal Business Unit: Company Company Organizational Structures Group Dimension: Group Dimension: Hierarchy of Companies and Business Areas Hierarchy of Companies and Business Areas Strategic Business Unit: Business Area Þ The company forms the basis for generating consolidation units. Þ The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. Þ The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting. Þ The relationships between the business areas and the companies are represented in a hierarchy. (C) SAP AG AC665 7 2.8 © SAP AG 1999 Palo Alto Chicago New York Palo Alto / Pharma Chicago / Chemicals Chicago / Services New York / Pharma CU CG Companies Palo Alto / Pharma Pharma Chemicals Services Corporate/Other New York / Pharma CU CG Business Areas ... ... H2 H1 H1 Hierarchy Dimension: Business Area Consolidation Consolidation Dimension and Hierarchies Þ CU: Consolidation Unit CG: Consolidation Group Þ A dimension defines a specific characteristic of group reporting - for example, company consolidation, business area consolidation, or profit center consolidation. Þ Organizational units and control data are defined according to the dimension. Consolidation charts of accounts and consolidation versions are defined for all dimensions. In reports, the data for various dimensions can be evaluated together. Þ The consolidation units and groups are assigned hierarchically to a top consolidation group. A dimension comprises at least one hierarchy structure. Þ A dimension can contain several hierarchies according to various statutory or internal requirements. For example, for a "business area consolidation" dimension: · Reflect the business areas with reference to the legal companies · Break down the group according to group areas. (C) SAP AG AC665 8 2.9 © SAP AG 1999 Palo Alto / Pharma New York / Pharma Consolidation Unit Consolidation Unit Automatic Assignment of Business Areas Group H2 H2 Pharma Chemicals Corporate/ Other Business Area Consolidation Company XY / Corporate / Other Bank Equity Taxes Services Chicago / Services Transferred Assets Receivables Payables Balances P&L Þ All essential balance sheet items (such as transferred assets, receivables, payables, or stock on hand, as well as all the financial statement items in an income statement) can be assigned directly to the business area. The balance sheet items bank, equity, and taxes, on the other hand, cannot be assigned, or can only be indirectly assigned manually. Þ The business transactions are transferred online or periodically to the consolidation units. The consolidation unit is derived on the basis of the combination of the legal entity company and the business area, or the consolidation business area. Þ For the purposes of consolidation, particular business areas can be grouped together into consolidation business areas. (C) SAP AG AC665 9 2.10 © SAP AG 1999 Versions ¤ Receivables / Payables (Foreign Currency Valuation) ¤ Tangible Fixed Assets (Depreciations) ¤ Material Stocks ¤ Open Orders (Long-Term Production) IAS Version Local Adj. EU Elim. Group Local Adj. US-GAAP Elim. Group B o o k d e p re c ia tio n B o o k d e p re c ia tio n C o n s o lid a te d d a ta C o n s o lid a te d d a ta E U E U T ra d e L a w T ra d e L a w G ro u p G ro u p U S U S - -G A A P G A A P T ra d e L a w T ra d e L a w (lo c al) (lo c a l) T a x L a w T a x L a w (lo c al) (lo ca l) US-GAAP Version EC- CS EC EC- - CS CS FI- AP FI FI- - AP AP FI- AR FI FI- - AR AR FI- AA FI FI- - AA AA MM MM MM PS PS PS CO CO CO ECMCT ECMCT ECMCT Totals Database Þ Inventory valuations can differ depending on whether they are carried out from the point of view of local trade law, tax law, or the group. The valuation results from individual valuations of subsidiary ledgers are posted in summarized form to separate accounts in Financial Accounting. The various balance sheets and profit and loss statements are generated in individual financial statements by means of different assignments to the accounts in the financial statement structures. This enables you to maintain consolidated financial statements in parallel according to various statutory accounting requirements. Þ In consolidation, the versions serve to maintain separate datasets in the consolidation database so that alternative consolidations can be managed. This means that various data categories (such as actual, plan, and budget data) can be maintained and consolidated. Þ You can also carry out simulations, for example on the basis of different exchange rates or changes in the group structure. Þ A consolidation version is composed of special versions. These are methods and tasks that cover the various areas of consolidation. This enables you to define various consolidation versions that differ only in one or a few areas, but otherwise refer to the same special version (that is, data is not redundant). (C) SAP AG AC665 10 2.11 © SAP AG 1999 ECMCT Totals Database Ledger US Cons. Unit FS item TC ... Val. in LC Value in GC: USD Quantities Ledger US Ledger EU Ledger EU Cons. Unit FS item TC ... Val. in LC Value in GC: EURO Quantities $ Ledger and Currency Þ The ledger is an area of the ECMCT totals table. It contains specifications for the data records that you work with during a terminal session. Þ The data in the ECMCT totals table can be maintained in three currencies: · Transaction currency · Currency of the consolidation unit · Ledger currency The ledger currency specifies the currency of the consolidation group. Þ SAP delivers the standard ledger "1C" for consolidation. This ledger is not for use in a live customer system. Please create a new ledger (using ledger "1C" as a copy template). Þ If you consolidate consolidation groups in different currencies, you also need additional ledgers, since each ledger is always maintained in one currency. If, for example, you want to consolidate one consolidation group in USD and another consolidation group in EURO, you require a ledger with the ledger currency USD, and another ledger with the ledger currency EURO. (C) SAP AG AC665 11 2.12 © SAP AG 1999 Consolidation Chart of Accounts Dimension Company Consolidation Dimension Profit Center Consolidation Dimension Business Area Consolidation Cons chart German GAAP, appr. in income statement Cons chart German GAAP, appr. in balance sheet Chart: US GAAP Cons chart... G/L Account Secondary Cost Elements Transaction Chart of Accounts FI FI CO CO External Charts of Accounts EC EC- -CS CS Þ Consolidation is equipped with its own consolidation chart of accounts, which is not linked to the charts of accounts in FI. The consolidation items usually correspond to the group accounts, the financial statement items of a financial statement version, or to the transaction accounts (if these are unique). The consolidation chart of accounts can be generated from these structures automatically. Þ The consolidation chart of accounts is a systematically structured directory of FS items that belong together. The grouping is based on external and/or internal requirements. For example, you can define one consolidation chart of accounts to accommodate the requirements of the particular legal reporting rules, and one to meet internal requirements. Þ Within a consolidation dimension, you can use several consolidation charts of accounts to generate consolidated financial statements in parallel. Þ Financial statement items are of central importance in data transfer, posting, and reporting. Þ The system reads the breakdown category from the master data of the financial statement item, and determines the breakdown according to additional account assignments. If an item is broken down by subitems, the system determines the sender field of the transaction data structures on the basis of the subitem category. It then copies the value of the sender field to the subitem. Þ If an item is broken down by partner, the system converts the code of the partner assignment in the transaction data to the partner unit. (C) SAP AG AC665 12 2.13 © SAP AG 1999 01 01 Consolidation Chart of Accounts Value Item Totals Item Totals Item ... Subitem Partner Currency Year of Acquisition Specification Cons C/A 01 FS Item FS Item Type Debit/Credit Sign Contra Item Where-Applied Indicator FS Item Category Consolidation Item Appropriation Item + 1 A Assets Breakdown Category 1000 ... Texts Chart and Breakdown Category Þ The financial statement item is the basis of account assignment in the Consolidation system. It identifies a value or quantity specification according to cause, and can be differentiated by further additional account assignments. Þ You can save short, medium, and long descriptive texts for each financial statement item. Þ The FS item type gives a concrete specification of the attributes of a financial statement item with respect to entries, updates, and processing in evaluations. The following financial statement items types are available: value items, totals items, and text items. Þ Where-applied indicator: The where-applied indicator is used to specify whether the financial statement item should belong to assets, liabilities and owner's equity, income statements, or statistical items. Þ The FS item category can be freely defined by the user, for example to mark financial statement items as key figure items. Þ The additional account assignments to be managed for each financial statement item are specified via the breakdown category. · A fixed allocation of additional account assignments may be required (for example, the specification of the partner unit in receivable and payables items that is required to carry out an elimination of IU payables and receivables). · In the above example, the breakdown category '1000' for asset transactions defines a transaction type as a necessary subassignment. (C) SAP AG AC665 13 2.14 © SAP AG 1999 EC EC- -PCA PCA Subitems Accounting document FI EC EC- -CS CS FS item Subitem category Subitem Fixed asset Transaction type Divestiture The use of subitems depends on the FS item. Net Sales Country Germany Expense Functional area Sales FS Item G/L account Subitem Business area FI-GL account Cost center Transaction type Functional area Customer's country Subitem Category Consolidated sales revenue by customer regions (market) Consolidated income statement by cost of sales accounting Þ Subitems enable you to break down FS item values further. It may, for example, be necessary to additionally assign financial statement items in transferred assets with different transaction types so that all changes to the items are shown from the opening to the closing balance. Þ The subitems are grouped into subitem categories, in order to distinguish the transaction types in transferred assets from those in equity, for example. Only one subitem category can be assigned to a particular financial statement item in EC-CS. In an integrated SAP environment, you can define a sender field (transaction type, for example, or customer country) for each subitem category. Þ The Consolidation system has 6 flexible account assignments that can be supplied from the Accounting system: transaction type, functional area, business area, country of customer, cost center, and G/L account. Default subitems are provided for each of the subitem categories in the consolidation charts of accounts supplied with the system. With the help of custom characteristics, you can define your own additional subitem categories and subitems. Þ In an integrated SAP environment, you can define a sender field (transaction type, for example, or customer country) for each subitem category. If the data is imported to EC-CS from FI or EC-PCA, the original account assignments are converted to subitems of the same name. In the transaction applications, specify that the appropriate fields are ready for input. (C) SAP AG AC665 14 2.15 © SAP AG 1999 ConsGroups FS Items Data Monitor ConsMonitor Infosystem Parameters Global Parameters Dimension 01 Legal Version 100 Actual data Year YYYY Period MMM Cons C/A 01 US Chart Ledger US USD Parameters EC- CS EC- CS Global Session Parameters Þ The global parameters are used to save important EC-CS settings that typically remain constant during a system session. The settings to be saved are specified by the user. These settings can be changed at any time, and remain available after you log off and log on again. Þ At startup, the information from the global parameters is either proposed as a default by functions, and sometimes cannot be changed on the screen in question. In presentations of consolidation results, as well as in Customizing, the global parameters are displayed in a status line at the top of the particular screen. Þ In Customizing, a colored note indicates which parameter currently affects maintenance. Thus, maintaining financial statement items, for example, depends on the consolidation chart of accounts, but does not depend on the current version. (C) SAP AG AC665 15 2.16 © SAP AG 1999 ¤ Data Structures ¤ Assignments Financial Accounting (C) SAP AG AC665 16 2.17 © SAP AG 1999 Preparation in FI Organizational units Accounts FI Doc. Rules for ID combination (per consolidation type) Definition of active data streams: Dimension /Cons C/A / Version Master data consolidation units Custom characteristics Assignment of charts of accounts to cons C/A Master data subitem category Assignment of accounts - FS items EC-CS: Data TTy Country Region ... Customizing Dimension Consolidation unit Version Cons chart/accts Ledger FS item Subassignment Definition of global organizational units Fiscal year/ Period Company code Business area ... Realtime update for consolidation types • Company • Business area Posting date Add. acct assignments Þ The data source for EC-CS is the FI general ledger, and the company code is the organizational unit. The FI company code must be assigned to a chart of accounts and a company. In EC-CS, the consolidation units are generated from the business units (companies and/or business areas). Þ In accounting transactions between business units in the enterprise, the relevant trading partner unit must be stored in the document. This is necessary for the subsequent interunit elimination. Þ To transfer the data from the transaction sender system to the receiver system, you will make assignments tailored to the receiver system. These can be assignments that are equally binding for all consolidation types, such as the assignment of a company code to a company. Þ If desired, business area balance sheets can be activated for each company code in FI. You can subdivide a company code into business areas to generate internal individual financial statements using freely selected areas of responsibility within a company. Þ In business area consolidation, a consolidation business area must be assigned from the receiver system. Þ If desired, you can create functional areas in FI so that the income statement can be grouped according to the requirements of cost of sales accounting. (C) SAP AG AC665 17 2.18 © SAP AG 1999 EC EC- -CS CS • Companies • Consolidation Business Area • Group Chart of Accounts • Consolidation Transaction Type Transaction system Consolidation System Preparing Consolidation Preparation • Assign integrated cons types to the dimensions Create or import global master data Define combinations of company codes/business areas Enter chart of accounts Prepare account assignments: • Consolidation transaction type • Consolidation business area • Trading partner company Assign operational accounts Transfer combinations of company codes/business areas IMG Settings: Different Systems Þ If the consolidation and the transaction applications are in different systems or clients, the group structure must be known in the operational applications, so that the transaction data can be transferred to the consolidation system EC-CS. Þ In the operational applications, the system reads the valid combinations of company codes, fiscal year variants and business areas and passes these on to consolidation, by download. Consequently in consolidation, the consolidation units and groups are automatically generated for the business area consolidation. Þ The same applies for the structure of organizational units for profit center consolidation. (C) SAP AG AC665 18 2.19 © SAP AG 1999 Company C10000 Company C10000 C20000 C20000 C30000 C30000 - - - - - - Company Code C100 Company Code C100 Company Code C100 C200 C200 C200 C300 C300 C300 Client ... ... ... Business Area 9900 8000 6000 4000 X X X X X X X FI: Organizational Elements Þ The client is the highest logical level in the SAP system hierarchy. This is also the name of the corresponding logical system in which you work. The settings that you make at this level are available to all company codes. Þ The company is the smallest organizational unit for which individual financial statements have to be created according to the trade regulations in question. A company can comprise one or more company codes. Þ Each company code represents a unit that manages its financial statements independently. This is the level at which the legally required financial statements are created. Þ The business area is an organizational unit of external accounting that corresponds to a limited business segment or area of responsibility in the enterprise to which changes in value entered in financial accounting can be assigned. Þ Business areas primarily serve enterprise-external segment reporting, which extends beyond company codes to the significant business segments of the enterprise (product lines, for example). A segment is any business segment in the enterprise that can be isolated. Þ The above example uses the following organizational units: Companies: Business Areas: C10000: IDES Palo Alto 4000: Chemicals C20000: IDES New York 6000: Pharma C30000: IDES Chicago 8000: Services 9900: Corporate and Others (C) SAP AG AC665 19 2.20 © SAP AG 1999 Assignment: Company Code - Company Non- SAP Non Non- - SAP SAP Company Code ... Chart of Accounts ... Company Code C100 Company Code C200 Chart of Accounts CAUS FI FI . . . EC- CS EC EC- - CS CS Systems Client 001 Company C10000 Company Company C10000 C10000 Company C20000 Company Company C20000 C20000 Company ... Company Company ... ... Company ... Company Company ... ... Þ Companies are the global organizational structures in FI. You can portray one or more of the client's company codes, as well as internal trading partners whose transaction financial accounting is carried out in other systems (SAP system or non-SAP systems). Þ For the purpose of integrated data transfer, you have to assign the company codes of the transaction system to the companies of the group. Þ The data to be consolidated can either be stored in the transaction system or distributed over various systems. It makes no difference if the systems involved are SAP R/3 Systems or non-SAP systems. The intercompany trading partners on other SAP systems as well as those on non-SAP systems must be represented by companies in FI. Þ In EC-CS, consolidation units are generated automatically from these FI companies. Þ This means that data from company codes to which a company has been assigned can be transferred to the appropriate integrated consolidation unit. Þ In a similar way, integration techniques can be used to copy data from other SAP Systems to consolidation units. Otherwise, data entry is carried out using entry forms, flexible upload, or MS Access. (C) SAP AG AC665 20 2.21 © SAP AG 1999 Additional Account Assignment: Business Area Business Area FI FI- -AA AA Fixed Assets Fixed Assets SD SD Sales and Delivery Sales and Delivery MM MM Materials Materials PS PS Projects Projects Project Valuation Area Plant Material Division Asset Sales Organization Distribution Channel CO CO - - Controlling Controlling Investment Measure Cost center Order Þ In many areas of the SAP System, master data is assigned to business areas. In most cases, this allows you to derive the business areas and the trading partner business areas automatically. Þ In most business transactions, the business area is derived when the data is posted. If the additional account assignment is not unique, however, the business area is adjusted at the end of the period. Þ Partner-specific information from the combination of company/business area forms the basis for integrated business area consolidation. Þ The posting lines of the accounting business transactions are provided with a trading partner business area assignment, enabling revenue and expense elimination to be carried out in the Consolidation system. In the MM component, the relationships between purchase and sales orders are also tracked. (C) SAP AG AC665 21 2.22 © SAP AG 1999 Assignments: Asset Master Record Cost Center C100C4311M • Company Code C100 • Business Area 4000 • Profit Center C4311 Cost Cost Center Center C100C4311M C100C4311M • • Company Company Code Code C100 C100 • • Business Area Business Area 4000 4000 • • Profit Center Profit Center C4311 C4311 Order ########## • Company Code C100 • Business Area • Profit Center C4311 Order Order ########## ########## • • Company Company Code Code C100 C100 • • Business Area Business Area • • Profit Center Profit Center C4311 C4311 CO 4000 4000 Cost Cost Center Center Order Order C100C4311M C100C4311M Book depreciation . . . Costing Costing Asset 1 Business Area 4000 Time-dependent Data Time Time- -dependent Data dependent Data Depreciation Areas Depreciation Areas Depreciation Areas FI FI- -AA AA Þ Example of how the business area is derived: If business area balance sheets are activated in FI, the business area field in the master records for fixed assets automatically becomes a required entry field, regardless of the update control setting of the screen layout control for the asset class. The costs of procurement, goods manufactured, and the depreciation are posted to the business area. Þ For cost accounting purposes, an asset can be assigned either to a cost center or to an order. Both CO objects are assigned to a company code, a business area, and a profit center when business area balance sheets or profit center accounting are activated. Þ When procurement and manufacturing costs are posted to the fixed asset, the business area and the profit center are then derived from the cost center or the order. The periodic depreciations are also posted to the business area or the profit center. (C) SAP AG AC665 22 2.23 © SAP AG 1999 Trading Partner Information: FI ¤G/L account for interunit business transactions ¤Trading Partner in Master Record ¤ Customer ¤ Vendor ¤ G/L account ¬ Additional Account Assignment: Trading Partner in Document ¤Business Area - Partner Business Area   Þ Identifying the group-internal posting procedures between affiliated enterprises is an important way of preparing data in individual financial statements. SAP stores the "Sender-Receiver" relationship at the document level in Financial Accounting. The balances are handled in consolidation with the additional account assignment trading partner. Þ The relevant trading partner number is stored in the customer/vendor master record. To allow entries in the "Trading partner" field, this field has to be set to "Optional entry" in the appropriate account group of the master data ("General data, control" field status group). When postings are made to this account, the company number is copied to the line item, and can be used in consolidation for elimination of IU payables and receivables, as well as in revenue and expense elimination. Þ The trading partner can also be stored in the G/L account. During posting, it is then copied to the line item, enabling the elimination functions to be carried out in consolidation. Þ Alternatively, the trading partner can also be set manually in the document. Þ For business area consolidation, you also need a reference in FI to the trading partner business area with which you have a business relationship. The business area is usually derived from the MM/SD transactions. To allow the trading partner business areas to be entered for G/L account postings, as well as for transactions in FI-AP/-AR, the "Trading partner business area" field in the field status group of the FI reconciliation account must be set to optional entry. (C) SAP AG AC665 23 2.24 © SAP AG 1999 Preparation in FI: Document Type Document Type: Controls posting to line item ¤ 1 Customer / 1 Vendor ¤ Trading partner company can be assigned ¤ Not intercompany  Þ The trading partner in each document must be uniform so that the partner assignment can be duplicated in the document when company internal transactions are posted. All the customers in a business transaction must, therefore, come from one company so that the sales revenue line is assigned a uniform trading partner. Consequently, you have to set the document type parameters to prevent intercompany postings. Þ However, there are also business transactions in which it is desirable to assign more than one trading partner in postings. In this case, the trading partner for the document is no longer uniform, and the trading partner is, therefore, not duplicated to the offsetting entries. This particularly applies to postings that are not sales relevant, such as postings of automatic payments. Postings to cash accounts are generally not relevant to consolidation, and thus do not require a partner assignment. For these business transactions, you can set the document type to permit intercompany postings. Þ "Enter trading partner" indicator : For G/L account postings (without direct reference to item account), document types that permit manual assignment to the trading partner may be required. Company internal transfer postings in P&L are an example of this type of posting. (C) SAP AG AC665 24 2.25 © SAP AG 1999 Company Code Assignment: Business Area Company Code Business Default Area IDES Palo Alto Pharma XY Corporate ...... IDES New York Pharma Corporate IDES Chicago Chemicals Services Corporate Business Area Pharma IDES Palo Alto Consolidation Unit: XY/Palo Alto FI FI EC EC- -CS CS Consolidation Business Area Global Local Organizational Units: Company Palo Alto Þ While, in FI, the business areas are valid for all the company codes, during preparation for consolidation they are assigned to specific company codes. Þ In realtime updates, the data stream for business area consolidation uses the document line item to determine the consolidation unit. Specify the combinations of company codes and business areas that can occur in postings in the transaction system. The system uses these to derive the combination of companies and consolidation groups. Þ You can define an account assignment default for business area consolidation. If business area consolidation is not included in the document, the system accesses a default that you have defined. However, you can only store one default per company code. Þ Alternative: You can check the assignment of business areas to company codes when the FI posting is made. You specify this in the data transfer settings for business area consolidation. (C) SAP AG AC665 25 2.26 © SAP AG 1999 Consolidation Business Area Company Company 100000/ 100000/ Company Company Code 1000 Code 1000 Sender System XXX: contains local and global characteristics ... Group Consolidation Business Area AB Receiver System YYY: contains global characteristics Consolidation Type: Business Area Consolidation Business Area BBBB Business Area AAAA FI FI EC EC- -CS CS Non- SAP Non Non- - SAP SAP Þ The consolidation business areas are business areas that are used centrally in the group. These global characteristics are defined by the parent company. Þ All systems that provide reports assign their local business area to the consolidation business areas. You must assign the business areas of the transaction system to the group's consolidation business areas. The assignment can be 1:1 or n:1. Þ The consolidation units are formed using the combination of companies and consolidation business areas, which are the basis for business area consolidation. (C) SAP AG AC665 26 2.27 © SAP AG 1999 Preparation for Business Area Consolidation Activate business area balance sheets Maintain field status groups for G/L accounts G/L Account: Balance sheet for business area clearing Assign accounts for adjustments Maintain document type for business area adjustment     Execute balance sheet adjustments Reconcile balances > Reconcile affiliates (see Execute Consolidation of Investments) Important for subsequent assignments of business area and partner business area using the balance sheet adjustment program   Þ Check that the business area balance sheets are activated in the global definition of the company code. Þ Depending on the objective of business area consolidation, when the business transactions are entered, it may be desirable to request that the assignments for the business area and the trading partner areas be as complete as possible. Þ For the G/L accounts, specify whether the business areas should be entered as optional or required entries. In manual consolidation of business areas or partner business areas, you make this setting using the field status group in the G/L account. If no assignment is made for accounts for which you have set an optional entry, the transaction is assigned to business area "Space". On the closing key date, the business areas have to be broken down manually. Þ At period end with the reconciliation of affiliated companies, check whether the payables/receivables are assigned to the corresponding partners. Þ Breakdowns or adjustments according to business area sre carried out. If business area consolidation is also activated, distribution is carried out according to the partner business area. For the document that is to be posted, you have to store the corresponding accounts and a document type in FI. (C) SAP AG AC665 27 2.28 © SAP AG 1999 Business Area Adjustment FI: Incoming Invoice Account Business Area Partner BArea Debit Credit Vendor 1000 Expense 1 0001 0003 400 Expense 2 0002 0003 600 Business Area Adjustment Clear. Acct. BArea Partner BArea Debit Credit Adjustment 400 0001 0003 400 600 0002 0003 600 BArea: Business Area Þ If, when posting to an expense account, you also assign a cost center to an account (and this cost center is assigned to a business area), then the business area is also assigned automatically. Þ If the business area in the revenue/expense line is uniform, it is automatically copied to the receivables/payables line. In our example, one document contains several expense accounts that were posted in various business areas. The breakdown of the business areas is, therefore, not uniform. Consequently, the business areas are not copied to the automatically generated line items (payables, receivables, tax). This assignment is made when the financial statement is adjusted and posted to special adjustment accounts. Þ In an FI document, an open item cannot have a partner business area. When there are transactions between affiliated enterprises, the business area is set during adjustment. Þ During adjustment a new document is generated with a partner business area in the receivables/payables line. A business area clearing account is used for this purpose. Þ The partner business area normally has to be set manually for realtime updates in FI. (C) SAP AG AC665 28 2.29 © SAP AG 1999 Transaction Types Retire ment . . Acquisit ion . . . Transfer . . . End of Year Start of Year Asset History Sheet Transaction Type # # # ¤Assign transaction types FI-AA: EC-CS ¤Transaction types = required input ¤Account validation: transaction Type   EC EC- -CS CS FI FI- -AA AA Þ In EC-CS, transaction types show the changes made to financial statement items. In FI/FI-AA, the transaction type classifies the business transaction (acquisition, retirement, transfer to equity account/transferred assets, for example). Transaction types are the basis for assigning a business transaction to a column of the equity/assets list. Þ The consolidation transaction types provided in the standard SAP system are already assigned to the asset transaction types in a way that allows a group asset history sheet to be generated. If you have defined your own asset transaction types/consolidation transaction types, or changed those provided in the system, assign the transaction types to the corresponding consolidation transaction types, or correct the assignments accordingly. Þ The consolidation transaction type can be defined as a required entry field via the field status group of the G/L account. Þ You can define validations that can be used to ensure that only transaction types belonging to a special group can be assigned to particular accounts. To do this, you define corresponding validation rules at the document line item level. (C) SAP AG AC665 29 2.30 © SAP AG 1999 Preparation in FI: Functional Areas Invoice Cost Center 1 (Cost Center Category 'A') Substitution Rule IF Cost Center Category 'A' THEN Functional Area 400 FI Posting Document Functional Area 400 Administration P&L using cost of sales accounting FI FI EC EC- -CS CS Þ The functional area is required to generate a profit and loss statement in Financial Accounting using the cost of sales accounting procedure. The company expenses that cannot be directly allocated to sales are distributed to functional areas. In cost of sales accounting, the functional groups administration, sales, marketing, production, or research and development are used to show what has caused costs to be incurred in the enterprise, thus reflecting the economic purpose of the expenses. Substitution is used to copy the functional area to the documents of financial and cost accounting. Þ If necessary, a change of functional area in the form of debit and credit can be taken into consideration in allocations of overhead costs. In P&L, the functional area that is displayed is the one following CO allocation, and not that of the original account allocation. The reconciliation ledger contains the information required to make postings to the relevant accounts in Financial Accounting. Þ Substitution rule: In the SAP standard system, the following trigger points are defined for the FI component: 0005 (cost of sales accounting). If a particular cost center type is posted to a cost center in FI, an additional account assignment is generated to the appropriate functional area. (C) SAP AG AC665 30 2.31 © SAP AG 1999 Preparations: Controlling Transfer costs!!! Cost Center 10 (Company Code C100) Cost Center 20 (Company Code C200) CO CO Specify account determination for reconciliation postings Maintain document type Preparation: Reconciliation Ledger  Þ For FI reconciliation postings in CO allocations between company codes / business areas, clearing accounts are defined and assigned to the business transactions (transfer postings, allocations, assessments, and so on) or to object classes. Þ The clearing accounts have either already been assigned in CO Customizing, or they will have to be assigned now. Þ You can create a separate document type for posting from the reconciliation ledger. (C) SAP AG AC665 31 2.32 © SAP AG 1999 Preparations: Materials Management Identify companies in the same client Assign division/valuation area to business area Maintain field selection group for division Specify FI account for price differences Maintain CO account assignment for price differences      Þ Select the companies that are maintained in the same client of your system, and which use the MM (Materials Master) and SD (Sales and Distribution) modules. The "Read Purchase Orders/Sales Orders" indicator is used to determine the partner business area and partner profit center in Logistics applications. The partner business area and partner profit center are derived from the purchase order or the sales order. Þ When business area consolidation is used, the combinations of division and valuation area are assigned to a business area. The assigned business area is copied to this division in all material stock postings. Þ To ensure that the assignment to a business area is carried out for all items, products, and services, the "division" field should be set as a required entry when the material masters are maintained. In the SAP standard system, the default setting for the "division" field in the field selection group is 090. However, a number of other fields are assigned to this group. To ensure that the required entry does not apply to all the fields in the group, it is useful to define a separate field selection group for the division field. Þ Goods movements can result in price differences. In FI, specify the FI accounts which should be posted in the event of price differences. These can be created as a cost element or defined as not relevant to CO. If price differences are defined as a cost element, then you should assign a CO account assignment object for this business area to each price difference account of this business area. (C) SAP AG AC665 32 2.33 © SAP AG 1999 Preparations: Sales Identify companies in the same client Assign rules to each sales area Assign business area to each plant and division Assign business area to each sales area     Þ Select the companies that are maintained in the same client of your system, and which use the MM (Materials Master) and SD (Sales and Distribution) modules. The "Read Purchase Orders/Sales Orders" indicator is used to determine the partner business area and partner profit center in Logistics applications. The partner business area and partner profit center are derived from the purchase order or the sales order. Þ For business area assignment, you have to specify for each sales area the rules that the R/3 System should use to find a business area. Otherwise, account assignment for each business area cannot be carried out. Þ In the standard system there are two default rules for automatically assigning business areas in revenue account determination: · Business area assignment per plant and division · Business area assignment per sales area · For each sales area, specify the respective rule for business area determination. (C) SAP AG AC665 33 2.34 © SAP AG 1999 Integrated Data Transfer: FI Unit Summary You are now able to: ¤Describe EC-CS master data and its function ¤Name the enterprise structures in the transaction system, and link these to the consolidation structures ¤Name various data transfer methods and their functions ¤Prepare data transfers for legal or management consolidation. (C) SAP AG AC665 34 2.35 Integrated Data Transfer-Exercises Unit: Integrated Data Transfer: FI Topic: EC-CS: Data Structures At the conclusion of these exercises, you will be able to: Þ Create consolidation dimensions Þ Copy consolidation charts of accounts Þ Define session parameters In the following exercise, you will prepare data in FI for transfer to Consolidation. 1-1 Check your course group's organizational units in the operational applications FI and EC- PCA. º Company º Company code º Business area º Functional area º Controlling area º Profit Center You will find your course group's organizational units in the Exercise Data page. 1-2 Use the Copy dimensions function to create a dimension for business area consolidation. Call your dimension #2 (where # corresponds to the letter of your course group). Use the instructor's dimension Z2 as a copy template. Please copy only consolidation functions, methods, and measures. (C) SAP AG AC665 35 The system requests you to create a "to dimension". Confirm this request. 1-3 Use the Copy dimensions function to create a dimension for profit center consolidation. Call your dimension A3 (the letters A to T correspond to the number of your course group). Use the instructor's dimension Z3 as a copy template. Please copy only consolidation functions, methods, and measures. The system requests you to create a "to dimension". Confirm this request. 1-4 Specify your group-specific session parameters for business area consolidation. Dimension: A2 (or J2 for course group 10, T2 for course group 20) Version: 100 Fiscal year: current year Period 012 Cons. chart of accounts 01 Ledger: US 1-5 Create the new item 3012## Sales Revenue from Affiliates. • Copy from item 301200 to item 3012##. • As the item number, enter 3012## (where ## = 40 + your group number). • Description: Sales Revenue from Affiliates • Choose the function Breakdown category. • Here you can change the Specification of the Subitem and activate the Specification Partner. 1-6 You should now know where the functional areas are defined. Check if the subitem category Functional Areas as been defined in EC-CS with the respective subitems. 1-7 Additional Exercise Theoretical Question: Imagine that European countries have united to form a new country called “EU”. Which areas of consolidation might be affected from the new entry in the global table of countries? _____________________________________________________________ (C) SAP AG AC665 36 1-8 Additional Exercise Create a subitem category called “Customer Country Gr. ##”. Use the subitem category A to T according to your group. Example: Group 01 creates category ‘A’, group 02 creates ‘B’, and so forth. Field length: 02 Sender field for subitem: 04 (country of customer) Choose Copy subitems. Save the subitem category . Leave Test Run selected and look at the generated list. (C) SAP AG AC665 37 Unit: Integrated Data Transfer: FI Topic: Financial Accounting At the conclusion of these exercises, you will be able to: Þ Describe the settings and assignments that have to be made in the transaction sender systems Þ Post and analyze FI documents with additional account assignments that are relevant to consolidation 2-1 Which transaction chart of accounts is assigned to the company codes C100, C200, and C300? Check whether the business area financial statements (balance sheets) are activated in the company codes. 2-1.1 Check whether the transaction chart of accounts for the company codes is assigned to the group chart of accounts CONS. 2-1.2 Check the consolidation business areas and the combination business area - consolidation business area. 2-2 In the consolidation system, how can you ensure that only the transaction business areas are posted in a given company code? 2-3 For your postings later on, create a group account called “Net sales, affiliated companies”. You enter: Account no.: 3012## (## = your course group number + 40) Chart of accounts: CONS Text: NS affiliated Gr## P&L account type: X Account group: profit & loss accounts Select P & L account. Save your data. (C) SAP AG AC665 38 2-4 For your postings later on, create the G/L account "Net sales, affiliated companies" in company code C300, and assign the G/L account to the group account. (## = your course group number + 40) Input data on tab Type/Description: Account no.: 8020## Company code: C300 Text: NS affiliated Gr## Account group: profit & loss accounts Select P & L account. Group account: 3012## (## = your course group number + 40) Input data on tab Control Data: Account currency: USD Tax category: + (only output tax) After you choose Enter, the following fields can be entered: Line item display: - Sort key: 001 (Posting data) Input data on tab Entry/Bank/Interest: Field status group: G029 (Sales revenue accounts). Save your entries. 2-5 For your postings later on, create a primary cost element called “Net sales - affiliated companies”. To do this, run the FI transaction Create/change G/L accounts and select Edit Cost Element. Input data: Controlling Area C001 Number: 8020## Valid from: 01/01 of the current year Cost element category: 11 (Revenues) Save your data. 2-6 Check the consolidation transaction type that the FI-AA transaction type 100 ("Addition") is assigned to. Where do you find the consolidation transaction type in the task level menu? (C) SAP AG AC665 39 2-7 Additional Exercise: Create an asset master record in company code C100. Class 11000 Description Bottling plant Business area 6000 Cost center: C100C6111M Manufact. AS (Palo Alto) Depreciation key: LINR Useful life: 10 years Save your data. Please enter the number of the asset master record in the "Exercise Data" worksheet. 2-8 IDES Chicago has started supply relationships with IDES Palo Alto. In IDES Chicago, create a customer master record for the customer IDES Palo Alto. Which trading partner do you have to store in the customer master record? What you enter: Account group: Customers (external number assignment) Customer: PA## Company code: C300 Name: Palo Alto Group ## Search term: Palo Alto ## Postal code: 12345 City: Palo Alto Country: US Language: EN Reconciliation account: 1440## Receivables - affiliated companies Gr. ## Terms of payment: 0001 (C) SAP AG AC665 40 2.9 IDES Palo Alto orders goods from IDES Chicago. In IDES Palo Alto, create a vendor master record for the vendor IDES Chicago. Which trading partner do you have to store in the vendor master record? What you enter: Vendor: CH## Company code: C100 Account group: LIEF Name: Ch## Postal code: 45600 City: Chicago Country: US Language: EN Reconciliation account: 1640## Payables - affiliated companies Gr. ## Terms of payment: 0001 2-10 Check the status of the "Trading partner business area" field in the company code segment of the following reconciliation accounts: º 1440## "Receivables from affiliated companies Gr. ##", and º 1640## "Payables - affiliated companies Gr. ##" (## = your group number + 40) 2-11 See if the cost of sales method is activated for company code C100. 2-11.1 Examine the substitution rule that is needed in the FI document for the assignment of functional areas. 2-11.2 Additional Exercise: What does the cost center category 'M' stand for? 2-12 Additional Exercise: When you store FI document type, what restrictions are required to ensure that the account assignment of the trading partner can be stored uniquely in the posting document? (C) SAP AG AC665 41 2.36 Integrated Data Transfer-Solutions Unit: Integrated Data Transfer: FI Topic: EC-CS: Data Structures 1-1 Check your course group's organizational units in the operational applications FI and EC- PCA. • Company • Company code • Business area • Functional area • Controlling area • Profit Center You will find your course group's organizational units in the Exercise Data page. SAP Menu ¬ Tools ¬ Accelerated SAP ¬ SAP Reference IMG ¬ Edit Project ¬ SAP Reference IMG ¬ Enterprise Structure ¬ Definition ¬ Financial Accounting ¬ Maintain Company SAP Menu ¬ Tools ¬ Accelerated SAP ¬ SAP Reference IMG ¬ Edit Project ¬ SAP Reference IMG ¬ Enterprise Structure ¬ Definition ¬ Financial Accounting ¬ Define, copy, delete, check company code SAP Menu ¬ Tools ¬ Accelerated SAP ¬ SAP Reference IMG ¬ Edit Project ¬ SAP Reference IMG ¬ Enterprise Structure ¬ Definition ¬ Financial Accounting ¬ Define Business Area SAP Reference IMG ¬ Enterprise Structure ¬ Structure Maintenance ¬ Definition ¬ Financial Accounting ¬ Define Functional Area SAP Reference IMG ¬ Enterprise Structure ¬ Definition ¬ Controlling ¬ Maintain Controlling Area (C) SAP AG AC665 42 SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Profit Center Accounting ¬ Master Data ¬ Profit Center ¬ Maintain Profit Center (C) SAP AG AC665 43 1-2 Use the Copy Dimensions function to create a dimension for business area consolidation. Call your dimension A2 (the letters A to T correspond to the number of your course group). Use the instructor's dimension Z2 as a copy template. Please copy only consolidation functions, methods, and measures. The system requests you to create a "to dimension". Confirm this request. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Preparing for Production ¬ Copy dimensions 1-3 Use the Copy dimensions function to create a dimension for profit center consolidation. Call your dimension A3 (the letters A to T correspond to the number of your course group). Use the instructor's dimension Z3 as a copy template. Please copy only consolidation functions, methods, and measures. The system requests you to create a "to dimension". Confirm this request. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Preparing for Production ¬ Copy dimensions 1-4 Specify your group-specific session parameters for business area consolidation. Dimension: A2 (or J2 for course group 10, T2 for course group 20) Version: 100 Fiscal year: current year period: current period Cons chart of accounts: 01 Ledger: US SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Specify Global Parameters (C) SAP AG AC665 44 1-5 Create the new item Sales Revenue from Affiliates. • Copy from item 301200 to item 3012##. • As the item number, enter 3012## (where ## = 40 + your group number). • Description: Sales Revenue from Affiliates • Choose the function Breakdown category. • Here you can change the Specification of the Subitem and activate the Specification Partner. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ FS Items ¬ User-defined chart of accounts ¬ Edit single items ¬ Change item Enter item 301200 and choose FS items ¬ copy. Copy this item to the item for your group. 1-6 You should now know where the functional areas are defined. Check if the subitem category Functional Areas as been defined in EC-CS with the respective subitems. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ FS Items ¬ Subassignments ¬ Define subitems ¬ Display subitems 1-7 Additional Exercise Theoretical Question: Imagine that European countries have united to form a new country called “EU”. Which areas of consolidation might be affected from the new entry in the global table of countries? The table of countries must contain an entry for “EU”: SAP Reference IMG ¬ Global Settings ¬ Set up Countries ¬ Define Countries The subitem category “Regions” must contain a new subitem for “EU”: SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ Item Assignment Information ¬ Define Subitems ¬ Create Subitem Subitem category ‘Region’: 04 (C) SAP AG AC665 45 1-8 Additional Exercise Create a subitem category called “Customer Country Gr. ##”. Use the subitem category A to T according to your group. Example: Group 01 creates category ‘A’, group 02 creates ‘B’, and so forth. Field length: 02 Sender field for subitem: 04 (country of customer) Choose Copy subitems. Save the subitem category . Deactivate Test Run selected and look at the generated list. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ FS Items ¬ Assignment Information ¬ Define Subitem Categories (C) SAP AG AC665 46 Unit: Integrated Data Transfer: FI Topic: Financial Accounting 2-1 Which transaction chart of accounts is assigned to the company codes C100, C200, and C300? Check whether the business area financial statements (balance sheets) are activated in the company codes. SAP Reference IMG ¬ Financial Accounting ¬ Financial Accounting Global Settings ¬ Company Code ¬ Check and Extend Global Parameters 2-1.1 Check whether the transaction chart of accounts for the company codes is assigned to the group chart of accounts CONS. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the sender system ¬ Preparations Related to all Consolidation Types ¬ Transaction Accounts: Assignment of Group Accounts ¬ Assign group chart of accts to (transaction) accts 2-1.2 Check the consolidation business areas and the combination business area - consolidation business area. SAP Reference IMG ¬ Enterprise Structure ¬ Definition ¬ Financial Accounting ¬ Maintain Consolidation Business Area SAP Reference IMG ¬ Enterprise Structure ¬ Allocation ¬ Financial Accounting ¬ Allocate Business Area – Consolidation Business Area (C) SAP AG AC665 47 2-2 In the consolidation system, how can you ensure that only the transaction business areas are posted in a given company code? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Enterprise Structure ¬ Checking the Structure for Business Area Consolidation ¬ Combination of company codes/business areas 2-3 For your postings later on, create a group account called “Net sales, affiliated companies”. You enter: Account no.: 3012## (## = your course group number + 40) Chart of accounts: CONS Text: NS affiliated Gr## P&L account type: X Account group: profit & loss accounts Select P & L account. Save your data. SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Master records ¬ Single editing ¬ Chart of accounts (C) SAP AG AC665 48 2-4 For your postings later on, create the G/L account "Net sales, affiliated companies" in company code C300, and assign the G/L account to the group account. (## = your course group number + 40) SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Master records ¬ Single editing ¬ Central Input data on tab Type/Description: Account no.: 8020## Company code: C300 Text: NS affiliated Gr## Account group: profit & loss accounts Select P & L account. Group account: 3012## (## = your course group number + 40) Input data on tab Control Data: Account currency: USD Tax category: + (only output tax) After you choose Enter, the following fields can be entered: Line item display: - Sort key: 001 (Posting data) Input data on tab Entry/Bank/Interest: Field status group: G029 (Sales revenue accounts). Save your entries. (C) SAP AG AC665 49 2-5 For your postings later on, create a primary cost element called “Net sales - affiliated companies”. Input data: Controlling Area C001 Number: 8020## Valid from: 01/01 of the current year Cost element category: 11 (Revenues) Save your data. Accounting ¬ Controlling ¬ Cost elements ¬ Master data ¬ Cost element ¬ Individual processing ¬ Create primary 2-6 Check the consolidation transaction type that the FI-AA transaction type 100 ("Addition") is assigned to. Where do you find the consolidation transaction type in the task level menu? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Preparations Related to All Consolidation Types ¬ Assignment of Transaction Types ¬ Assign asset transaction types / Maintain transaction types for Consolidation 2-7 Additional Exercise: Create an asset master record in company code C100. Class: 11000 SAP Menu ¬ Accounting ¬ Financial Accounting ¬ Fixed Assets ¬ Asset ¬ Create ¬ Asset Input Data: Tab General: Description: Bottling plant Tab Time-dependent: Business area: 6000 Cost center: C1006111M Manufact. Product Acetyl Tab Valuation: Depreciation key: LINR Useful life: 10 years Save your data. Please enter the number of the asset master record in the "Exercise Data" worksheet. (C) SAP AG AC665 50 2-8 IDES Chicago has started supply relationships with IDES Palo Alto. In IDES Chicago, create a customer master record for the customer IDES Palo Alto. Which trading partner do you have to store in the customer master record? SAP Menu ¬ Accounting ¬ Financial Accounting ¬ Accounts receivable ¬ Master records ¬ Create What you enter: Account group: Customers (external number assignment) Customer: PA## (## = your group number + 40) Company code: C300 Tab Address: Name: Palo Alto Group ## Search term: Palo Alto ## Postal code: 12345 City: Palo Alto Country: US Language: EN Tab Control Data: Reconciliation account: 1440## Receivables - affiliated companies Gr. ## Tab Terms of Payment: Terms of payment: 0001 Store trading partner C10000 in tab Control Data. (C) SAP AG AC665 51 2-9 IDES Palo Alto orders goods from IDES Chicago. In IDES Palo Alto, create a vendor master record for the vendor IDES Chicago. Which trading partner do you have to store in the vendor master record? SAP Menu ¬ Accounting ¬ Financial Accounting ¬ Accounts payable ¬ Master records ¬ Display What you enter: Vendor: CH## (## = your group number + 40) Company code: C100 Account group: LIEF Name: Chicago group ## Search term: Ch## Postal code: 45600 City: Chicago Country: US Language: EN Reconciliation account: 1640## Payables - affiliated companies Gr. ## Terms of payment: 0001 Store trading partner C30000. 2-10 Check the status of the "Trading partner business area" field in the company code segment of the following reconciliation accounts: º 1440## "Receivables from affiliated companies Gr. ##", and º 1640## "Payables - affiliated companies Gr. ##" (## = your group number + 40) SAP Menu ¬ Accounting ¬ Financial Accounting ¬ General ledger ¬ Single Editing ¬ Central Choose Display. Choose the tab Entry/Bank/Interest. Doubleclick the Field Status Group. Select the Additional account assignments group. (C) SAP AG AC665 52 2-11 See if the cost of sales method is activated for company code C100. Activating the cost of sales method: SAP Reference IMG ¬ Financial Accounting ¬ Financial Accounting Global Settings ¬ Company Code ¬ Cost of sales method ¬ Activate cost of sales method 2-11.1 Examine the substitution rule that is needed in the FI document for the assignment of functional areas. SAP Reference IMG ¬ Financial Accounting ¬ Financial Accounting Global Settings ¬ Company Code ¬ Cost of Sales Method ¬ Set up Substitution for Cost of sales Method ¬ Define Substitution Select the substitution FA-EC "Functional area derived from cost center category". Choose Production Costs. 2-11.2 Additional Exercise: What does the cost center category 'M' stand for? SAP Reference IMG ¬ Controlling ¬ Cost Center Accounting ¬ Master Data ¬ Cost Centers ¬ Maintain Cost Center Categories The cost center category stands for Material. 2-12 Additional Exercise: When you store FI document type, what restrictions are required to ensure that the account assignment of the trading partner can be stored uniquely in the posting document? SAP Reference IMG ¬ Financial Accounting ¬ Financial Accounting Global Settings ¬ Document ¬ Document Header ¬ Overview (Document Types) Select the document type DR and choose Details: In the "Control data" box, the Customer/vendor check option must be flagged. The "Intercompany postings" option must be deselected. (C) SAP AG AC665 53 3 © SAP AG 1999 ¤ Data Transfer Methods ¤ Assignments in EC-CS Data Transfer Methods: FI Data Contents (C) SAP AG AC665 1 3.2 © SAP AG 1999 At the conclusion of this unit, you will be able to: ¤Describe the various data transfer methods and how to use them ¤Make preparations in the sender and receiver systems for transferring data for the purposes of legal and management consolidation Data Transfer Methods: FI Data Unit Objectives (C) SAP AG AC665 2 3.3 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting PCA Data CO Controlling FI-GL General Ledger Course Overview Diagram (C) SAP AG AC665 3 3.4 © SAP AG 1999 ¤Your company has assigned you the task of making preparations for legal and management consolidations. ¤You specify which data the sender systems supply to which consolidation types. ¤You also specify which data transfer method you are going to use. Data Transfer Methods: FI Data Business Scenario (C) SAP AG AC665 4 3.5 © SAP AG 1999 4.X EC-CS Non-SAP system 3.X R/3 System FI, CO, PCA 4.X R/3 System FI, CO, PCA, EC-CS Transfer using: ALE, Rollup, Extract, Flexible Upload, MS Access Consolidation With Different Releases Þ The EC-CS component provides powerful functionality in both homogenous and heterogeneous system environments. The component copes easily with non-standardized key systems (organizational units, charts of accounts, products, and so on), financial applications, and hardware environments. The group companies who do not use SAP Consolidation for financial accounting are mapped as companies in FI. This also applies to companies that run their transaction bookkeeping on a non-SAP system. In EC-CS, consolidation units are generated automatically from these FI companies. This means that data from company codes to which a company has been assigned can be transferred to the appropriate integrated consolidation unit. Þ If the transaction applications and the Consolidation system are all in the same client of the same system, data can be transferred to the Consolidation system online (in realtime). Þ It is also possible to transfer data from SAP systems by means of periodic extracts and rollups. Þ Data from non-SAP systems can be imported using special data entry forms, flexible uploads, and Microsoft Access. (C) SAP AG AC665 5 3.6 © SAP AG 1999 Realtime Update Periodic Extract Rollup Realtime Update Periodic Extract Rollup Company Consolidation Business Area Consolidation Profit Center Consolidation Central Scenario Decentralized Scenario Data Transfer Methods (C) SAP AG AC665 6 3.7 © SAP AG 1999 EC EC- -CS CS Transaction System Consolidation System Preparing Consolidation Create or import global master data Define combinations of company codes/business areas Transfer combinations of company codes/ business areas Enter charts of accounts Set up cons unit/group Prepare transfer of data: - Assign C/A to cons charts of accts - Define data streams - etc. For Rollup: Transfer settings to the sender system For Rollup: Transfer settings from consolidation system Activate data transfers Prepare Data Transfer Þ For the purposes of transferring transaction data to the EC-CS consolidation system, certain Customizing settings for consolidation have to be known in the transaction applications in order to convert the data to the required account assignment. Þ If the consolidation and the transaction applications are in different systems or clients, it is necessary to transfer the Customizing settings from the consolidation system to the transaction system by means of download and upload. Þ This applies to Customizing settings regarding - consolidation charts of accounts - financial statement items - breakdown categories - subitem categories - subitems - assignment of dimensions/integrated consolidation types - rules for ID combination - global settings (for example, Alpha conversion) Þ When a rollup of the transaction data is generated in the transaction system, the system uses the Customizing settings to convert the data. The file generated by the rollup can then be checked and written to the consolidation system. (C) SAP AG AC665 7 3.8 © SAP AG 1999 Group: Fiscal Year Variant: Active Consolidation Types Active Consolidation Types E Company E Business Area E Profit Center ¤EC-CS C FI-LC C RF-KONS ¤Realtime update C Rollup C Periodic Extract Consolidation System Consolidation System Company code - Business area Check FI FI FI EC- CS EC EC- - CS CS ¤Realtime update C Rollup C Periodic Extract Sender System: Data Transfer Method Þ Specify the group to which the companies of this SAP System report. Then define the fiscal year variant used in Consolidation. Also specify the Consolidation system, the consolidation types that are active for integration, and the data transfer methods to be used for each of these consolidation types. You will need to make these settings in every client of every system. Þ The system reads the consolidation chart of accounts and the corresponding transaction charts of accounts for every data stream. On the basis of this information, it determines the appropriate item in the consolidation chart of accounts for each transaction account. Þ The system checks the following before the settings can be saved: · Whether active data streams exist (at least one data stream must be defined and flagged as active for each data transfer method) · The assignment of group accounts to G/L accounts (does not apply to periodic extract method) · Whether a default subitem and sender field have been defined in the master record of the subitem categories used. Þ Business area consolidation: If some company codes post to different business areas, you can specify here that a check should be run in the Accounting system to see if a business area defined in the document is valid for the company code in question. When the system runs this check, it uses the permissible combinations of company code and business area that you defined in Customizing. (C) SAP AG AC665 8 3.9 © SAP AG 1999 SD FI FI FI MM FI Document Realtime EC- CS EC EC- - CS CS FI Transaction Figures FI Documents optional Realtime Update Ledger US Ledger US Ledger US Totals Records Journal Entries ECMCT Þ The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts. Þ If you use the realtime update method, every accounting transaction that affects the general ledger is updated at the same time in FI and in the totals records of the consolidation ledger. Þ When data is transferred, the system determines how each data record should be updated in the Consolidation system. It does this by looking at the definition and configuration of the data streams. Þ A document is only written to a ledger if the ledger is assigned to all the consolidation units involved and all have the same fiscal year variant. Þ When defining the ledger you can specify whether you want to keep journal entry records in the journal entry table in addition to totals records. (C) SAP AG AC665 9 3.10 © SAP AG 1999 Characteristics Key Fig. CU Item ... GC #### xyz abc Ledger US EC- CS EC EC- - CS CS FI FI FI CU: Consolidation Unit GC: Value in Group Currency Transfer on the basis of rules Sender Table Example: Summary table with functional area Receiver Table EC-CS Totals Records Rollups Þ In the standard SAP System, a rollup is a tool for transferring data records from a sender table to a receiver table. Þ Generally speaking, the sender and receiver tables are structured differently. This means that rules specifying how the individual fields are to be transferred have to be defined. Þ The standard system already contains rules for transferring data to EC-CS. This means that a rollup is a user-friendly option for transferring data, particularly from Profit Center Accounting. (C) SAP AG AC665 10 3.11 © SAP AG 1999 "Country- Specific" Chart of Accounts (Statutory) "Group" Chart of Accounts "Transaction" Chart of Accounts Financial Statement 1 : 1 N : 1 Transaction Sender Systems CO CO Cost Elements 1:1 FI FI Realtime Update Rollup Post Consolidated Statements Cons Chart Balance Sheets Income Stmt Cash Flow Stmt Statistical Factors Key Figures EC EC- -CS CS Transferring Values from Transaction G/L Accounts Þ The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts. Þ To generate the group chart of accounts manually, you enter the group chart of accounts in the chart of accounts list in the receiver system and asssign the account groups to the group chart of accounts. In FI, you define the chart of accounts segment for the G/L accounts in the group chart of accounts. Þ The consolidation chart of accounts provides a common structure to unify the potentially diverse charts of accounts of the internal trading partners. Therefore, the accounts in the group chart of accounts must be identical to the financial statement items in the consolidation chart of accounts. To transfer the data, you assign the group chart of accounts to the consolidation chart of accounts in the receiver system. Þ Preparations in the sender system include assigning the group chart of accounts to a transaction chart of accounts. You enter the group account number in the chart of accounts segment defined for the transaction G/L account. The G/L accounts can be grouped together using the group account number defined in the G/L account. Þ You cannot assign a group account to a secondary cost element because it is not an FI account. If the transaction chart of accounts contains secondary cost elements, you can assign groups of cost elements to individual line items. (C) SAP AG AC665 11 3.12 © SAP AG 1999 Cons Chart of Accts Balance Sheet Income Statement Cash Flow Statement Statistical Factors Key Figures EC EC- -CS CS Create group chart of accounts manually Generate items from chart of accounts  either either or or Generate from consolidation chart of accounts Creating a Group Chart of Accounts/Items Þ You can use programs to generate consolidation charts of accounts from the charts of accounts. You can also transfer (1:1) secondary cost elements as financial statement items. Þ If you wish to bundle cost elements, assign the cost element range to the financial statement items in the consolidated chart of accounts. Þ You can check the assignment of accounts and financial statement figures by using reports for analysis and reconciliation. Þ You can generate the group chart of accounts from a consolidation chart of accounts. It is not necessary to create either the chart of accounts or the account group in advance. The system creates these automatically. Þ To transfer the data, assign the group chart of accounts in the sender system to the consolidation chart of accounts in the EC-CS receiver system. When doing this, you can determine whether you wish to assign ranges of the secondary cost elements to financial statement items. (C) SAP AG AC665 12 3.13 © SAP AG 1999 Primary Cost Elements Assessment Secondary Cost Elements Activity Allocation Order Settlement FI CO Cons Chart of Accts Balance Sheet Income Statement Cash Flow Statement Statistical Factors Key Figures EC-CS Group together: Material cost element Order settlement Internal activity allocation FI Accounts / Secondary Cost Elements Þ You can generate items in the consolidation chart of accounts automatically for secondary cost elements. In this case, you must specify the controlling area and date to which the secondary cost elements apply. Þ Generally speaking, you will not want to generate a separate item in the consolidation chart of accounts for each individual secondary cost element. Instead, you will group together secondary cost elements, and assign this group of elements to a consolidation item. You can group the cost elements together by cost element category, and assign each grouping to an item in the consolidation chart of accounts. The items in the consolidation chart of accounts must be defined first, though. If a consolidation chart of accounts has already been defined, you can decide whether you merely want to add new items, or whether you want to overwrite existing items. Þ When you assign secondary cost element groupings to items in the consolidation chart of accounts, you specify that cost element groupings should be taken into account when data is transferred. Þ You cannot assign a group account to a secondary cost element because it is not an FI account. (C) SAP AG AC665 13 3.14 © SAP AG 1999 GLT3 Transaction System Consolidation system FI Doc. GLT0 GLT3 Cons Staging Ledger 09 General Ledger Transaction Figures ECMCT Cons Proc. Ledger Extract: RFBILA00 + Transfer of the File Update in EC-CS Cons Staging Ledger 09 Ledger Currency Data Parallel Posting Periodic Extract Þ The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts. Þ The accounting transactions that affect the general ledger are updated in the transaction figures table and in the totals records of the consolidation staging ledger (09) at the same time in the sender system. Þ Data is selected from the consolidation staging ladger at regular intervals. Data is forwarded using a file. The EC-CS component contains a program for uploading, converting and updating the extract. Þ Ideally, the ledger currency of ledger 09 should be the same in the sender and receiver systems. The sender system only sends consolidation values to the receiver system, not ledger currency details. For different currencies you have to carry out the currency translation task in the data monitor. (C) SAP AG AC665 14 3.15 © SAP AG 1999 "Transaction" Chart of Accounts 1 : 1 Transaction Sender Systems CO Cost Elements 1:1 N:1 Group Financial Stateme nt Version FI Financial Statement Financial Statement Data Extract Consolidated Financial Statements Cons Chart of Accts Balance Sheet Income Statement Cash Flow Statement Statistical Factors Key Figures EC EC- -CS CS Post Transaction Accounts - Periodic Extract Þ If you use the periodic extract method for transferring data, there must be a financial statement version in the sender system, and the items in this version must correspond to the items in the consolidation chart of accounts. Þ You can create the item hierarchies of a consolidation chart of accounts from an existing financial statement version. In this case, you must first define the consolidation chart of accounts for which you want to generate the item hierarchies. Þ The transaction chart of accounts can contain secondary cost elements in addition to the FI accounts it normally contains. If you do not want to have a separate item for each secondary cost element, you can define items for a specific range of cost elements. Þ You use the "Financial Statement Version" program to generate the extract in the sender system. You can then import this extract into the receiver system. Data is selected via the financial statement version, balance type "1" (balance carried forward up to and including the "To" period). The data extract is updated automatically in the "To" period defined for the extract. Þ For business area consolidation purposes, the original business area is replaced by the consolidation business area in the data extract. Þ You cannot use the periodic extract option for transferring 'planned data' since the "Financial Statement Version" program selects only actual data. (C) SAP AG AC665 15 3.16 © SAP AG 1999 Integrated Integrated Consolidation Types Consolidation Types E Company E Business Area E Profit Center C Realtime update C Rollup C Periodic Extract Company ###### Company ###### Company Code #### Company Code #### Consolidation Staging Ledger 09 FI FI Data Transfer Methods Data Transfer Methods Group: Fiscal Year Variant: EC- CS EC EC- - CS CS Parameters: Dimension: Business Area Consolidation ... Ledger: US Master Data Consolidation Units Data Transfer Methods Periodic Extract Þ The system assigns the consolidation ledger defined in the global parameters to the integrated consolidation units. Þ If the Consolidation system uses a different fiscal year variant than the units to be consolidated, the periods are converted when the financial data is transferred. Þ If you use the periodic extract method, the system assigns the consolidation staging ledger (which has the fiscal year variant of the Consolidation system) to all company codes to which a company has been assigned. (C) SAP AG AC665 16 3.17 © SAP AG 1999 Integrated Integrated Consolidation Types Consolidation Types E Company E Business Area E Profit Center EC- CS EC- CS Parameters: Dimension: Business Area Consolidation ... Top Node Dimension Business Area Consolidation H1 H1 Chemicals/Palo Alto Chemicals/New York Hierarchy: Business Areas Top Node Chicago/Chemicals Chicago/Services Hierarchy: Companies Chemicals Pharmaceuticals Chicago Palo Alto + Transfer organizational units Convert into consolidation units Assigning Consolidation Types to Dimensions Þ If you use the realtime update, periodic extract, or rollup method, the consolidation units and consolidation groups must be generated automatically. Þ The data transfer method you choose will determine which organizational elements are proposed. If you wish, you can limit the selection of organizational elements. Þ You can define a data transfer method for every dimension. Þ You can define several hierarchies with various structures for each dimension. In the example above, you can see that two hierarchies have been defined for one dimension. In each hierarchy, you map a top node and the consolidation group of the parent company. Next, you decide how the consolidation groups are to be broken down - by business area, for example, or by company. (C) SAP AG AC665 17 3.18 © SAP AG 1999 FI FI EC- CS EC- CS Consolidation Unit Company/Business Area Company C10000 Company C10000 Company Code C100 Company Code Company Code C100 C100 Sender Receiver Data Transfer Method: Realtime Update ¤ Business Area Consolidation ¤ Consolidation Chart of Accounts## ¤ Version ### ID combination !!! C10000-6000 Business Area 6000 Converting Organizational Units Þ The transaction systems do not recognize the organizational units of EC-CS. This means that the transaction organizational units have to be converted to the consolidation units and groups of EC-CS. Þ In the example above, the data from the transaction organizational unit "Business Area 6000" is converted into the corresponding consolidation unit when the data is transferred. You have to define ID combination rules for every consolidation type and dimension in every data stream. These rules can then be used to generate the consolidation hierarchy automatically. Þ You define ID combination rules for each consolidation type. These rules are used to convert the transaction organizational units to the consolidation unit. Þ You define the rules that you want the system to use to derive the IDs and names of the consolidation units and groups from the IDs of the organizational units in G/L accounting and profit center accounting. (C) SAP AG AC665 18 3.19 © SAP AG 1999  C10000-6000 Palo Alto/Pharmaceuticals C20000-6000 New York/Pharmaceuticals 4000 6000 Chemicals Pharma Consolidation Units Consolidation Groups Business Area CS Org. Unit Grouping Category FS item Org. Unit Prefix Length 1 2 0 1 1 - 6 Company 1 1 6 2 2 4 4 2 2 1 1 Rules for ID Combination    C10000 C20000 C30000 IDES Palo Alto IDES New York IDES Chicago     4000 6000 8000 9900 Chemicals Pharma Services Corporate/Other 1 2 Organizational Units: Rules for ID Combination Þ Example: Business area consolidation Þ CS organizational unit 1 Consolidation unit, 2 Consolidation group Þ Grouping category 0 No grouping 1 Group by company 2 Group by business area Þ Position 1 Name comes first 2 Name comes second Þ Organizational unit 1 Company 2 Business area Þ The prefix '-' separates the "name" from the organizational unit. Þ The length of the ID for the consolidation unit / of the consolidation group is, for example, 10 characters (+ prefix) (C) SAP AG AC665 19 3.20 © SAP AG 1999 Dimension 02 Cons C/A 01 Version 100 Period MMM/YYYY ... Group by Segments Group acc. to Companies Business Areas Business Area ‘___‘ Chemicals Palo Alto New York Chicago ... H1 H1 Data Collection Data Collection ¤Same R/3 System O Upload Hierarchy Structure Hierarchy Structure ¤Business Areas ¤Companies Copy Business Areas Copy Business Areas Chicago/ ‘___‘ Chicago/Chemicals ... Chemicals/Palo Alto Chemicals/New York Maintaining Hierarchies Þ You can define several hierarchies with various structures for each dimension. The data transfer method you choose will determine which organizational elements are proposed. If you wish, you can limit the selection of organizational elements. Þ If a posting does not have a valid business area, a consolidation group Business Area ”__” is generated with the appropriate consolidation units. Þ The generated hierarchies can be postprocessed. You can also make mass changes if you wish. Þ You can generate lists to analyze the organizational units from different perspectives: · Transferred consolidation units · Master data of the consolidation units that play an important role in integration · Transaction system and client that the unit was transferred from This function allows you to check, for example, whether the data transfer method was maintained for all the consolidation units. Þ In a future release, it will be possible to integrate consolidation units that were originally created manually. This will enable you to adapt the hierarchy of EC-CS organizational units to take into account any changes that were made in the sender system. (C) SAP AG AC665 20 3.21 © SAP AG 1999 Doc. type 01 Realtime update Version 100 Version 200 Number range 01 Number range 02 Postings in Transaction currency  Local currency  Group currency 100- 100 TC 100- 100 LC 100- 100 GC 200- 200- FI FI Dimension 02 Cons C/A 01 Version 100 Period MMM/YYYY Document no.: ### ### ##1 EC- CS EC- CS Realtime Updates: Defining Document Types Þ If you use the realtime update method, the system generates documents. That is why you must define a document type for each dimension. Þ By defining document types, you enable the system to pass on special information to the consolidation postings: information relating to the database update, how to handle deferred taxes, and what currencies to use. Þ You can use customer-specific documents types for consolidation. These document types are then taken into account by reports and validations. Þ The standard SAP System comes with one standard document type. If you need to define more document types, proceed as follows: · Define the characteristics of the document type and the currencies to be posted (realtime update posting level). The posting of deferred taxes does not affect the realtime update method. · Maintain version-based characteristics: Define a number range for your document numbers. The automatic reversal/cancellation function in the subsequent period is of no relevance to the realtime update method. (C) SAP AG AC665 21 3.22 © SAP AG 1999 Consolidation Type ¤ Company consolidation ¤ Business area consolidation ¤ Profit center consolidation Dimension Data Streams Cons chart of accounts Version Active 01 US Appr. In B/S,COGS Actual Business areas Defining Data Streams Þ When data is transferred, the system determines how each data record should be updated in the Consolidation system. It does this by looking at the definition and configuration of the data streams. Þ For each combination of consolidation type and dimension, you define the consolidation chart of accounts and version to which you want the data to be transferred. Þ More than one data stream can be flagged as active if you use the realtime update method. Þ For each relevant data stream and dimension, the system determines the consolidation type, and uses this to define the rules for ID combination. Þ Before you carry out this step, you have to make the other settings in the section "Integration: Preparation for Consolidation." After you have saved them, the settings for data transfer are active, and from this point the data can be transferred to consolidation. (C) SAP AG AC665 22 3.23 © SAP AG 1999 You are now able to: ¤Describe the various data transfer methods and how to use them ¤Make preparations in the sender and receiver systems for transferring data for the purposes of legal and management consolidation Data Transfer Methods: FI Data Unit Summary (C) SAP AG AC665 23 3.24 Data Transfer methods-Exercises Unit: Data Transfer Methods: FI Data Topic: Data Transfer Methods At the conclusion of these exercises, you will be able to: • Name and assign the various consolidation types and possible methods of data transfer available In the sender system, you have already made the settings and assignments required for transferring data to the Consolidation system. You now make the necessary preparations in the consolidation system. 1-1 For which consolidation types has the realtime update option been defined? _______________________________________________________________ 1-2 Additional Exercise: Which method of data transfer can you use for business area consolidation in distributed systems? _______________________________________________________________ 1-3 Additional Exercise: Explain the difference between a realtime update and a periodic extract to the person sitting beside you. _______________________________________________________________ (C) SAP AG AC665 24 Unit: Data Transfer Methods: FI Data Topic: Assignments in EC-CS At the conclusion of these exercises, you will be able to: Þ Interpret the ID combination rules used to form consolidation groups and units Þ Create a hierarchy of your own 2-1 Check to make sure that the correct consolidation types have been assigned to your course group’s dimensions. 2-2 Check over the ID combination rules defined for business area consolidation. 2-2.1 What are the naming conventions for consolidation units and groups (give examples)? _____________________________________________________________ _____________________________________________________________ (C) SAP AG AC665 25 2-3 Copy the hierarchy for dimension #2, and display it. • Create hierarchies H1 and H2 (group by business area and company), and create a top consolidation group for each hierarchy. • Place your cursor on the top node of hierarchy H1, and choose Business areas. • Select the Same R/3 System and Hierarchy of business areas options. • Confirm your data by pressing ENTER, and generate the consolidation areas and units without restricting them to specific companies/consolidation business areas. • Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. • Save your entries. • Enter the fiscal year variant K4 for the integrated consolidation units. • You are prompted whether to generate sets, which can be used later for your reporting. Please select the answer NO because of technical reasons. 2-3.1 Evaluate the master data, and check over the assignment of consolidation units to ledger and fiscal year variant. Define the data transfer method using the mass change function: R = Realtime update from FI. _____________________________________________________________ 2-4 Additional Exercise: Realtime update: Check the assignment of the accounts in operational chart of accounts CAUS to the items in consolidation chart of accounts 01. 2-5 Data streams: Check to see if the data stream for your dimension #2 has been activated. Explain to the person sitting next to you why it is possible to define more than one data stream for each dimension. Why is it possible to activate more than one data stream per dimension? (C) SAP AG AC665 26 2-6 Check to see which document type has been created for the realtime update method for dimension #2 “Business area consolidation gr. ##”. If necessary, enter a description. Create the following number range interval: Number range: 01 To fiscal year: current fiscal year Group-specific range: Example: Gr01: 0000001000 – 0000001999 Gr02: 0000002000 – 0000002999 Gr##: 00000##000 – 00000##999 2-7 What setting in EC-CS causes the system already during postings in accounting to check if the business area assigned in a document is valid for the respective company code? _____________________________________________________________ 2-8 Vendor IDES Chicago (company code C300) has delivered 1,000 USD worth of acetyl to IDES Palo Alto. Post an outgoing invoice for company code C300 against affiliated vendor PA##. The sales revenue is posted to account 8020## “Net sales - affiliated companies” (## = your course group number). Your instructor will tell you which tax rate to use for the posting. What you enter: Company code: C300 Document date/posting date: today’s date Check the company code by choosing Switch leading company code. Additional account assignment details: º Profit CenterC4311 (Acetyl), º Partner Profit Center C6111 (AS), º Business Area 4000 (Chemicals), º Partner business area 6000 (Pharma) Save your entries and make a note of the document number: ________________. 2-8.1 Display the accounting document. Choose More data so that you can see the trading partner company you posted to. (C) SAP AG AC665 27 2-8.2 Now display the other accounting documents. _________________________________________________________ 2-8.3 Where do the additional account assignments come from? 2-9 IDES Palo Alto (company code C100) has received an invoice for 800 USD from vendor CH## for the AS goods delivered. The delivery was posted directly to the production expense account 4000## (## = your course group number). Post the incoming invoice in IDES Palo Alto. Your instructor will tell you which tax rate to use for the posting. What you enter: Company code: C100 Document date/posting date: today’s date Check the company code by choosing Switch leading company code. Additional account assignment details: º Cost center C100C6111M (Manufacturing Product Acetyl) º Profit CenterC6111 (AS), º Partner Profit Center C4311 (Acetyl) º Business Area 6000 (Pharma) º Partner business area 4000 (Chemicals) Save your entries and make a note of the document number: ________________. ______________________________________________________________ (C) SAP AG AC665 28 2-10 Additional Exercise: IDES Chicago has sold the raw material AS and certain services to IDES Palo Alto. Post the outgoing invoice to your customer account. What you enter: Company code: C300 Document date/posting date: current posting date Check the company code by choosing Switch leading company code. The sales revenue is posted to account 8020## “Net sales - affiliated companies”, along with an additional account assignment to the appropriate profit center and trading partner profit center. The sales revenue is divided among the business areas as follows: º 40 % to business area 9900 Administration, Additional account assignments: Profit Center C9902 (Admin.) Partner business area 6000 (Pharmaceuticals), Partner profit center C6111 (AS) º 60% to business area 4000 (Chemicals), Additional account assignments: Profit Center C4311 (Acetyl) Partner business area 6000 (Pharmaceuticals), Partner profit center C6111 (AS). Your instructor will tell you which tax rate to use for the posting. Save your entries and make a note of the document number: ________________. ______________________________________________________________ 2-10.1 Display the accounting document, and check the business area account assignment for the line items “Receivables” and “Tax”. (C) SAP AG AC665 29 2-11 You now have to prepare the closing operation Balance Sheet Readjustment. In order to post the balance sheet readjustment, you go to the IMG and define the reconciliation accounts 1449## (Receivables from Affiliates) and 1649## (Payables to Affiliates) along with the respective adjustment accounts. (##= your group number + 40) Entry 1: Reconciliation account 1440## Receivables from Affiliates (## = your group number + 40) Adjustment account 1449## Receivables from Affiliates, Adjustments (## = your group number + 40) Entry 2: Reconciliation account 1640## Payables to Affiliates (## = your group number + 40) Adjustment account 1649## Payables to Affiliates, Adjustments (## = your group number + 40) 2-12 Your instructor will start the “Readjust Balance Sheet” report for the entire course group. 2-12.1 Calculating the balance sheet readjustment: Your instructor will select the company codes. 2-12.2 Posting the balance sheet readjustment: Your instructor will delimit data as follows: Company codes: C100 and C300 Key date: last day of the month, current year Create entries - Document Type: SU Posting date: last day of the month, current year Posting period: current period Post to profit center: no Audit trail with line items - by documents - 2-12.3 Display the adjustment documents, and check the adjustment postings. (C) SAP AG AC665 30 2-13 Additional Exercise Theoretical Task: Which basic setting is required if you want to use the periodic extract method of data transfer for business area consolidation? _____________________________________________________________ _____________________________________________________________ 2-14 Additional Exercise: Periodic Extract: Check whether a financial statement version has been defined in the system, and copy it to “GR##”. 2-15 Additional Exercise: Create a consolidation chart of accounts from your financial statement version. (C) SAP AG AC665 31 2-16 Additional Exercise Run the report for the balance sheet/P+L statement. Make the following settings on the selection screen: º All selections º Company codes/business areas of your course group º Extract for business area consolidation º financial statement version (your instructor will name it) º Reporting year: current year º Extract to consolidation: at business area level Since you have not posted any data to the consolidation staging ledger yet, do not execute the report! 2-17 Additional exercise: Theoretical question: In which EC-CS menu will you find the report for importing the extract to Consolidation? (C) SAP AG AC665 32 3.25 Data Transfer methods-Solutions Unit: Data Transfer Methods: FI Data Topic: Data Transfer Methods 1-1 For which consolidation types has the realtime update option been defined? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Activate data transfer The realtime update option has only been defined for the consolidation type “Business area consolidation.” Reason: Company consolidation has not been activated. The values for profit center consolidation are passed on to the Consolidation system by means of rollups. 1-2 Additional Exercise: Which method of data transfer can you use for business area consolidation in distributed systems? You can transfer data using the periodic extract method or the rollup method. (C) SAP AG AC665 33 1-3 Additional Exercise: Explain the difference between a realtime update and a periodic extract to the person sitting beside you. If you use the realtime update, data is updated immediately (realtime) in the Consolidation system. In this case, the group account number must be stored in the operational G/L accounts. This is identical to the items in the EC-CS chart of accounts used. If you use the periodic extract method, data is updated at the same time (realtime) in the consolidation staging ledger, extracted for the financial statement version by the FI report, and imported by an EC-CS report. In this case, a consolidation financial statement version must be defined in FI, and this FS version must be identical to the consolidation chart of accounts used in EC-CS. The following prerequisites must be met for both transfer methods: To ensure that the values can be transferred to consolidation units, the consolidation units must be formed on the basis of the operational organizational units. Furthermore, information on the partners involved must be available in the line items of the operational systems. (C) SAP AG AC665 34 Unit: Data Transfer Methods: FI Data Topic: Assignments in EC-CS 2-1 Check to make sure that the correct consolidation types have been assigned to your course group’s dimensions. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Assign integrated consolidation types to the dimensions 2-2 Check over the ID combination rules defined for business area consolidation. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Converting Organizational Units ¬ Define ID combination rules (C) SAP AG AC665 35 2-2.1 What are the naming conventions for consolidation units and groups (give examples)? Example of consolidation group: Hierarchy 01 (business areas): # Not assigned 4000 Chemicals 6000 Pharmaceuticals 8000 External Services 9900 Corporate and Others Hierarchy 02 (companies): C10000 IDES Palo Alto C20000 IDES New York C30000 IDES Chicago Example of consolidation unit: C20000-# IDES Company New York C20000-6000 IDES New York Pharma C20000-9900 IDES New York Corporate and Other (C) SAP AG AC665 36 2-3 Copy the hierarchy for dimension #2, and display it. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Transfer Organizational Units ¬ Edit Hierarchies • Create hierarchies H1 and H2 (group by business area and company), and create a top consolidation group for each hierarchy. • Place your cursor on the top node of hierarchy H1, and choose Business areas. • Select the Same R/3 System and Hierarchy of business areas options. • Confirm your data by pressing ENTER, and generate the consolidation areas and units without restricting them to specific companies/consolidation business areas. • Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. • Save your entries. • Enter the fiscal year variant K4 for the integrated consolidation units. • You are prompted whether to generate sets, which can be used later for your reporting. Please select the answer NO because of technical reasons. 2-3.1 Evaluate the master data, and check over the assignment of consolidation units to ledger and fiscal year variant. Define the data transfer method using the mass change function: R = Realtime update from FI. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Copy Organizational Units ¬ Evaluate the Master Data of the Organizational Units Mass change: SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ Organizational Units ¬ Consolidation Units ¬ Make mass changes To change/display a consolidation unit, choose the menu option Consolidation units ¬ Change. The fields are located in the Goto menu: º Use the Assignment menu option to go to the fiscal year variant º Use the Integration menu option to go to the data transfer method. (C) SAP AG AC665 37 2-4 Additional Exercise: Realtime update: Check the assignment of the accounts in operational chart of accounts CAUS to the items in consolidation chart of accounts 01. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Tools: Cons Chart of Accounts, Group Chart of Accounts, Financial Statement Version ¬ Copying FS Items ¬ Copying FS Items from an FI Chart of Accounts ¬ Compare FS items with accounts/cost elements 2-5 Data streams: Check to see if the data stream for your dimension #2 has been activated. Explain to the person sitting next to you why it is possible to define more than one data stream for each dimension. Why is it possible to activate more than one data stream per dimension? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Copy Data ¬ Define Data Streams Select the desired consolidation type and choose “Data Streams”. When the data is updated, or a rollup is generated, the system determines how each data record is updated in the Consolidation system on the basis of the data stream definition and other Customizing settings. With realtime updates, multiple data streams can be active, whereas with rollups, you can specify the appropriate active data stream in the rollup definition. (C) SAP AG AC665 38 2-6 Check to see which document type has been created for the realtime update method for dimension #2 “Business area consolidation gr. ##”. If necessary, enter a description. Create the following number range interval: Number range: 01 To fiscal year: current fiscal year Group-specific range: Example: Gr01: 0000001000 – 0000001999 Gr02: 0000002000 – 0000002999 Gr##: 00000##000 – 00000##999 SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Collection of Data ¬ Realtime Update: Define Document Type Document type ZW is created. It was copied along with the dimension. You still have to define the number range. Choose : º Number ranges/Automatic reversal º Version 100, number range 01 º Define number range º Insert interval Confirm any messages that appear by pressing ENTER. Then save your entries. 2-7 What setting in EC-CS causes the system already during postings in accounting to check if the business area assigned in a document is valid for the respective company code? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Preparation and Activation of Data Transfer ¬ Activate Data Transfer The data transfer method “Business area consolidation” allows you to run an additional check on the company code/business area combination in the document. If you flag this option, a check in the Accounting system when postings are made in order to see if a business area defined in the document is compatible with the company code in question. In order to do this, the system reads the company code/business area assignments that you defined in the Preparation for Consolidation section of the IMG. (C) SAP AG AC665 39 2-8 Vendor IDES Chicago (company code C300) has delivered 1,000 USD worth of acetyl to IDES Palo Alto. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts receivable ¬ Document entry ¬ Invoice Post an outgoing invoice for company code C300 against affiliated vendor PA##. The sales revenue is posted to account 8020## “Net sales - affiliated companies” (## = your course group number). Your instructor will tell you which tax rate to use for the posting. What you enter: Company code: C300 Document date/posting date: today’s date Check the company code by choosing Switch leading company code. Enter the additional account assignments and scroll to the right: º Profit Center C4311 (Acetyl), º Partner Profit Center C6111 (AS), º Business Area 4000 (Chemicals), º Partner business area 6000 (Pharma) Save your entries and make a note of the document number: ________________. 2-8.1 Display the accounting document. Choose More data so that you can see the trading partner company you posted to. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts receivable ¬ Document ¬ Display 2.8.2 Now display the other accounting documents. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts receivable ¬ Document ¬ Display ¬ Environment ¬ Accounting documents 2-8.3 Where do the additional account assignments come from? Trading partner company: master record Profit center: Posting document (C) SAP AG AC665 40 2-9 IDES Palo Alto (company code C100) has received an invoice for 800 USD from vendor CH## for the AS goods delivered. The delivery was posted directly to the production expense account 4000## (## = your course group number). Post the incoming invoice in IDES Palo Alto. Your instructor will tell you which tax rate to use for the posting. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts payable ¬ Document ¬ Display ¬ Environment ¬ Accounting documents What you enter: Company code: C100 Document date/posting date: today’s date Check the company code by choosing Switch leading company code. Enter the additional account assignments and scroll to the right: º Cost center C100C6111M (Manufacturing Product Acetyl) º Profit Center C6111 (AS), º Partner Profit Center C4311 (Acetyl) º Business Area 6000 (Pharma) º Partner business area 4000 (Chemicals) Save your entries and make a note of the document number: ________________. (C) SAP AG AC665 41 2-10 Additional Exercise: IDES Chicago has sold the raw material AS and certain services to IDES Palo Alto. Post the outgoing invoice to your customer account. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts receivable ¬ Document entry ¬ Invoice What you enter: Company code: C300 Document date/posting date: today’s date Check the company code by choosing Switch leading company code. The sales revenue is posted to account 8020## “Net sales - affiliated companies”, along with an additional account assignment to the appropriate profit center and trading partner profit center. The sales revenue is divided among the business areas as follows: º 40 % to business area 9900 Administration, Additional account assignments: Profit Center C9902 (Admin.) Partner business area 6000 (Pharmaceuticals), Partner profit center C6111 (AS) º 60% to business area 4000 (Chemicals), Additional account assignments: Profit Center C4311 (Acetyl) Partner business area 6000 (Pharmaceuticals), Partner profit center C6111 (AS). Your instructor will tell you which tax rate to use for the posting. Confirm the warnings issued by the system by pressing ENTER and post the invoice to your customer account. Please make a note of the document number: ____________ 2-10.1 Display the accounting document, and check the business area account assignment for the line items “Receivables” and “Tax”. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts receivables ¬ Document ¬ Display (C) SAP AG AC665 42 2-11 You now have to prepare the closing operation Balance Sheet Readjustment. In order to post the balance sheet readjustment, you go to the IMG and define the reconciliation accounts 1449## (Receivables from Affiliates) and 1649## (Payables to Affiliates) along with the respective adjustment accounts. (##= your group number + 40) SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration ¬ Preparation in the Sender System ¬ Further Settings for Business Area Consolidation ¬ Financial Accounting ¬ Store Accounts for Readjustments Select adjustment accounts for reconciliation accounts. Enter chart of accounts CAUS. Entry 1: Reconciliation account 1440## Receivables from Affiliates (## = your group number + 40) Adjustment account 1449## Receivables from Affiliates, Adjustments (## = your group number + 40) Entry 2: Reconciliation account 1640## Payables to Affiliates (## = your group number + 40) Adjustment account 1649## Payables to Affiliates, Adjustments (## = your group number + 40) (C) SAP AG AC665 43 2-12 Your instructor will start the “Readjust Balance Sheet” report for the entire course group. SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Periodic processing ¬ Closing ¬ Regroup ¬ Balance sheet readjustment 2-12.1 Calculating the balance sheet readjustment: Your instructor will select the company codes. SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Periodic processing ¬ Closing ¬ Regroup ¬ B/S readjustment ¬ Calculate 2-12.2 Posting the balance sheet readjustment: Your instructor will delimit data as follows: Company codes: C100 and C300 Key date: last day of the month, current year Create entries - Document Type: SU Posting date: last day of the month, current year Posting period: current period Post to profit center: no Audit trail with line items - by documents - SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Periodic processing ¬ Closing ¬ Regroup ¬ B/S readjustment ¬ Post 2-12.3 Display the adjustment documents, and check the adjustment postings. SAP Menu ¬ Accounting ¬ Financial accounting ¬ Accounts payable ¬ Document ¬ Display ¬ Environment ¬ Balance sheet readjustment (C) SAP AG AC665 44 2-13 Additional Exercise Theoretical Task: Which basic setting is required if you want to use the periodic extract method of data transfer for business area consolidation? A financial statement version must be defined in the sender system, and the items in this FS version must be the same as the items in the consolidation chart of accounts in the Consolidation system. You might have to define the currency of the consolidation staging ledger. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Preparation and Activation of Data Transfer ¬ Periodic Extract from the Consolidation Staging Ledger ¬ Maintain the currency of the consolidation staging ledger In the IMG, you define the data transfer method Periodic extract, and assign it to consolidation units. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Preparation and Activation of Data Transfer ¬ Activate Data Transfer 2-14 Additional Exercise: Periodic Extract: Check whether a financial statement version has been defined in the system, and copy it to “GR##”. SAP Reference IMG ¬ Financial Accounting ¬ General Ledger Accounting ¬ Accounting Transactions ¬ Closing ¬ Documenting ¬ Define Financial Statement Versions 2-15 Additional Exercise: Create a consolidation chart of accounts from your financial statement version. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Tools: Cons Chart of Accounts, Group Chart of Accounts, Financial Statement Version¬ Copying FS Items ¬ Copy item hierarchies from financial statement version (C) SAP AG AC665 45 2-16 Additional Exercise Run the report for the balance sheet/P+L statement. Make the following settings on the selection screen: º All selections º Company codes/business areas of your course group º Extract for business area consolidation º Financial statement version KONS º Reporting year: current year º Extract to consolidation: at business area level Since you have not posted any data to the consolidation staging ledger yet, do not execute the report! SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Periodic processing ¬ Closing ¬ Report ¬ General Ledger Reports ¬ Balance sheet/P&L/Cash flow ¬ General ¬ Actual/Actual Comparisons ¬ Balance sheet/P&L Choose Execute 2-17 Additional Exercise Theoretical Question: In which EC-CS menu will you find the report for importing the extract to Consolidation? SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation ¬ Data Collection ¬ Reported financial data ¬ Periodic Extract Choose “Integrated Consolidation Type: Business Area Consolidation”. (C) SAP AG AC665 46 4 © SAP AG 1999 q Working Through Consolidation Activities q Reporting Consolidation Activities and Reporting Contents (C) SAP AG AC665 1 4.2 © SAP AG 1999 At the conclusion of this unit, you will be able to: ¤Give reasons for having consolidation within an enterprise ¤Name the various steps involved in consolidation Consolidation Activities and Reporting: Unit Objectives (C) SAP AG AC665 2 4.3 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting PCA Data CO Controlling FI-GL General Ledger Course Overview Diagram (C) SAP AG AC665 3 4.4 © SAP AG 1999 Consolidation Activities and Reporting: Business Scenario ¤You attend a presentation where you learn about the various steps involved in consolidation, and you test some of the Consolidation functions yourself ¤You have also been asked to find out if there are any useful key figure reports that can be used to analyze consolidated business area data (C) SAP AG AC665 4 4.5 © SAP AG 1999 Preparing Consolidation Activities and Reporting ¤FI Þ Document reconciliation Þ Adjustment ¤EC-CS Þ Data monitor: Balance carried forward Enter additional financial data Þ Consolidation monitor: Consolidation activities and reporting   Þ FI: You carry out the document matching with partner company codes and the adjustment of the business areas within the periodic closing operations. Þ EC-CS: You execute the consolidation with the help of configured tasks. (C) SAP AG AC665 5 4.6 © SAP AG 1999 Carrying Forward Balances Balance Sheet Assets 10,000 ... Liabilities 10,000 Income Statement Net inc. 1,000 Balance Sheet Assets 10,000 ... Liabilities 10,000 Income Statement Balance carried forward 1,000 n+1 Closing Balance Old Year Opening Balance New Year Carry Forward Þ The closing financial statement of a year must be the same as the opening financial statement of the following year. Consequently, the first task (of the data monitor) in a given year is to carry forward the balances from the previous year to the current year. Þ The way in which a balance is carried forward will depend on the item category in question. In the standard system, you proceed as follows: All financial statement items are carried forward to themselves. In the standard system, income statement items are not carried forward. However, if an appropriation of retained earnings is required after the income statement has been drawn up, the previous year's annual net income must be carried forward to the balance carried forward of the current fiscal year. You can specify whether statistical items should be carried forward to themselves. You do this in the master record of the item in question. Þ If items are to be carried forward, but not to themselves (this is the case with the appropriation of retained earnings in the balance sheet), you will have to make other Customizing settings. Þ The balance is carried forward on the basis of the dimension (per consolidation group or for individual units), the version and the consolidation chart of accounts. (C) SAP AG AC665 6 4.7 ©SAP AG 1999 Methods of Transferring Data to EC-CS Flexible Flexible Upload Upload Single Document R/2 Local Local Ledger Ledger DB MS Access MS Access Manual o n l i n e Non- SAP Non- SAP EC EC- -CS CS Rollup Profit and Loss 1 2 3 C A Sales B 50 MS Excel MS Excel Periodic Periodic Extract Extract Periodic offline Data Entry Layout Þ Data transfer from SAP Systems · Realtime update from other SAP components within the same SAP System · Rollup from an FI-SL ledger · Periodic extract from FI-GL · Periodic extract from an FI-LC system · Rollup from another EC-CS system · Periodic extract from R/2 (planned) Þ Data transfer from non-SAP systems · Flexible upload of data extracts from non-SAP systems · MS Access offline data entry with an additional MS Excel interface (C) SAP AG AC665 7 4.8 © SAP AG 1999 EC-CS: Entering Additional Financial Data ¤ Consolidation of Investments: - Changes in investee equity - Changes in investments ¤ Elimination of Interunit Profit and Loss in Transferred Inventory: - Inventory data - Supplier data Þ Consolidation of Investments: The task called "Data Collection" involves entering additional financial data for first consolidation and subsequent consolidation. Changes in investee equity and investments are entered in additional financial data for both the parent unit, and the investee unit. Þ Elimination of Interunit Profit and Loss in Transferred Inventory: You eliminate interunit profits and losses resulting from the transfer of inventory items. The elimination data is based on the data of the inventory-managing and supplier unit. The IU profit or loss is the difference between the book value on the individual financial statement and the production cost. A positive difference represents interunit profit, which is eliminated by making an adjustment down to the lower level, in accordance with the group's point of view. (C) SAP AG AC665 8 4.9 © SAP AG 1999 Determining Contra Items Consolidation task Define contra item/retained earnings Edit item: Assign contra item  OLD NEW 1201 Receivables -1000 0 2011 Payables 0 -1000 Consolidation Items Item Contra item 1201 Receivables 2011 2011 Payables 1201 Consolidation Monitor Execute consolidation task: Item substitution and calculation of retained earnings Þ When postings are made to bank accounts, the overall balance can be switched to the credit side in FI. This means that the account balance cannot be represented under current assets. In the financial statement version, the contra item is used to assign the overall account balance automatically to the liabilities side of the item "Short-term payables". Þ In EC-CS, if the contra item is entered in the FS item table, this means that it is possible to automatically transfer the balance of the corresponding item when the debit/credit sign changes. Þ The transfers are stored in the totals database (at posting level '_' (space). (C) SAP AG AC665 9 4.10 © SAP AG 1999 Calculating Retained Earnings: Selected Items Assets Liabilities Expense Revenue IDES Chicago, Chem. Assets Liabilities Expense Revenue IDES Chicago, Services Retained earnings Annual net income 100 100- Business Area Clearing (2): Balancing Adjustment Item: Dr: Business Area Clearing (Chemicals) Cr: Business Area Clearing (Services) Business Area Clearing (2): Balancing Adjustment Item: Dr: Business Area Clearing (Chemicals) Cr: Business Area Clearing (Services) 50 50- (3) (3) (2) 50- (2) 50 Dr: Annual Net Income 100 Cr: Retained Earnings 100- (3) 30 Transaction (1): Dr: Expense (Services) Cr: Payables (Chemicals) (1) (1) Þ If you use the realtime update method, the consolidation items are updated every time a posting is made. Þ Retained earnings are not posted in FI. Instead, they are calculated as the balance of all expenses and revenues. Þ You start this task after end-of-month closing, when all the postings in a period are closed, and post the retained earnings in the Consolidation system. If you use the periodic extract method for all consolidation units, you do not need to execute this task. Þ In EC-CS, you post this difference to selected items in the financial statements and income statement. This will then mean that the total of all balance sheet items and income statement items will be zero, respectively. You manage the values for annual net income and retained earnings for the same item in the consolidation chart of accounts. Þ If you start this task in an integrated dimension for consolidation type 2 (business area consolidation) or 3 (profit center consolidation), the financial data posted is reconciled at the company code/business area or company code/profit center level. (C) SAP AG AC665 10 4.11 © SAP AG 1999 Validation Current yr. Companies Warning Profit Centers - - - - - - - - - - - - Assets Liabilities Error Posting Fin. Statement 1 Cons. Unit Across Consolidation Units Across Dimensions Trading partner GS3 not allowed Book value Sum of income statement detailed values Previous yr. Þ The concept of user-defined validation is employed in many SAP applications. Þ Validations are available in addition to the standard checks in the EC-CS posting transaction. You can run validation when processing the following: · Document header · Individual document line · Complete document Þ Validation for a consolidation unit typically takes place after data collection (in local currency) and currency translation (into group currency). Þ Validation across consolidation units or dimensions is essential for ensuring reconciled data in legal and management consolidation. (C) SAP AG AC665 11 4.12 © SAP AG 1999 Currency Translation Local Reference Group Diff. Fixed assets S = 2.0 H = 3.0 1.0 Buildings 500 1000 1500 500 Machinery 500 1000 1500 500 Inventory S = 2.0 S = 2.0 Raw mat. 500 1000 1000 0 Translation Sets Translation Sets Inventory Assets Exchange Rates Exchange Rates Current rate Historical 2001 Treatment of Currency translation difference Þ The currency translation task enables you to translate financial data reported by consolidation units in their local currency into the currency of the consolidation group. Þ Currency translation is based on translation methods. You can define several methods for translating data reported by your consolidation units. However, for each unit you specify a single translation method. Þ The type of currency translation you use depends on the relationships between your corporate group and its individual consolidation units, and also on the economic situation in the countries where these units are based. You can define any of the commonly-used translation methods for your chart of accounts (temporal method, current-rate method, and so on). (C) SAP AG AC665 12 4.13 © SAP AG 1999 Data Monitor - - Europe USA APA Segments + + Chemicals - - Pharmaceuticals - - - - - - + + Services + + Corporate Other ¤User-defined tasks ¤Traffic light for "overall" status ¤Perform tasks in test mode/update mode ¤Audit information ¤Filter options BCF Collect. Calc RE Val.FDSE Trans Val.SFD Tasks Hierarchy of Groups/Units Overall status ... ... ... ... Þ The data monitor and the consolidation monitor control the status of the consolidation process, and tasks can be started directly from within the monitor. Each monitor can cover an unlimited number of tasks. Þ Tasks are user-defined. They are grouped together into task groups that contain information on the sequence of the tasks. Task groups are assigned to dimensions. Þ In our example, the following tasks have been defined: Carry forward balance (BCF), Collect data (Collect.), Calculate retained earnings (Calc.RE), Validate financial data (Val. FD), Standardizing entries (SE), Translate currency (Trans), Validate standardized financial data (Val. SFD). . . Þ Overall status of consolidation units and consolidation groups · Initial stage, open, errors, OK Þ Detailed status per task · Initial stage, open, errors, OK, blocked, unblocked, irrelevant · Last changed by/on (date), number of errors/warnings Þ Actions that are possible: · Open/close period. · Execute tasks in test/update mode. · Block/unblock tasks. · Execute all tasks up to next milestone. (C) SAP AG AC665 13 4.14 © SAP AG 1999 Consolidation Monitor - - Hierarchy 1 + + CG Chemicals - - CG Pharma. + + CG Services + + CG Corporate/ Other Milestone El. Pay/Rec. El. Inv.income Invest. Validation GC Tasks Hierarchy of groups Overall status CG: Consolidation Group (C) SAP AG AC665 14 4.15 © SAP AG 1999 Interunit Elimination IDES Group .... Pharmaceuticals Chemicals ... Item Amount Partner Receiv. 20 Pharma/ Palo Alto . . . Receiv. 50 ... Item Amount Partner Pay. - 20 Chemicals/ Chicago Item Amount Partner . . . . . . Pay. -60 Chemicals/ Chicago Chicago Palo Alto New York Chicago Þ Interunit elimination is based on information on the partner consolidation unit. (C) SAP AG AC665 15 4.16 © SAP AG 1999 Document Matching Mail Assignment (Ref. no.) Notes Elimination Entry Elimination method Accounting Document Open Item Master Record Customer/ vendor Document Matching CCd 1 /CCd 2, Ref.no. 4711 Document date: 3/22/96 EC-CS Consolidation Item details Bal. 2 Bal. 1 Diff. CU A / B CU A / C CU B / C Elim. of IU Pay./Receiv. Drill- down Still to be assigned: CCd 1 CCd 2 Prep. of Indiv. Financial Statements - 1000 1200 200 700 - 600 100 - 350 400 50 Cons Unit Master Record Þ The reconciliation of group-internal payables and receivables is often a time-consuming task. SAP's Financial Accounting application enables efficient document matching to be run during the fiscal year, thereby reducing the time required for the elimination. Þ The consolidation user responsible for a particular company code specifies one or more "partner" company codes with which reconciliation is to be run. The assignments of customers and vendors to companies are used to select and display all open items. Þ Document matching is a process comprising several steps: · Documents with the same reference number are identified as matches. · The system then sorts into groups those documents posted with the same document date, whose values differ below a tolerance defined by the user. · The remaining documents are displayed in two windows and processed manually by the user (by means of mails to other users, notes, subsequent maintenance of reference number). Þ You can also access the document matching program from the transaction for reconciling balances when you eliminate IU payables and receivables. This enables users to perform drilldown reporting right down to the FI document level. (C) SAP AG AC665 16 4.17 © SAP AG 1999 Information System Consolidation Consolidation Drilldown Reports Journal Entry Reports Reports ¤ Master data ¤ Control data ¤ Financial data Inter- active Excel 1 2 3 C A Revenues B 50 Transfer to EC-EIS Report Writer Report Painter Þ The Report Writer and Report Painter: · Powerful, user-friendly, standard SAP tools for creating reports · Special handling of version and time dependencies for consolidation groups Þ Interactive drilldown reports: · Interactive navigation in the data cube of Consolidation · Exception reporting, ABC analyses, comments, e-mail, integration with MS Office Þ Journal entry reports: · Flexible selection and hierarchical display of all consolidation documents Þ Interactive Excel: · Logons to R/3 from within MS Excel, interactive connection (ensures current data) with R/3 (C) SAP AG AC665 17 4.18 © SAP AG 1999 You are now able to: ¤Give reasons for having consolidation within an enterprise ¤Name the various steps involved in consolidation Consolidation Activities and Reporting: Unit Summary (C) SAP AG AC665 18 4.19Exercises Unit: Consolidation Activities and Reporting Topic: Consolidation Activities At the conclusion of these exercises, you will be able to: Þ Name and work through some consolidation activities Now that you have made preparations for transferring data to the Consolidation system, you can test working through a few consolidation activities. You also test data transfer by using key figure reports. 1-1 Check in the Implementation Guide to see if a task: entitled Contra item/Retained earnings item has been defined. What is the purpose of this task? 1-2 Selected items for consolidated statements are defined in the consolidation chart of accounts. The values of these selected items are not transferred directly from the transaction data in the individual financial statements to the Consolidation system. For example, the annual net income is calculated in the financial statement first, and then transferred to the corresponding consolidation item. Which selected items have been defined for your dimension? 1-3 Start the data monitor from the EC-CS application menu. Execute the task Retained Earnings/Contra Item for your dimension #2 (business area consolidation). Choose Show tasks. Close all tasks in the data monitor except for the Retained Earnings/Contra Item task. Place your cursor on a consolidation group below the Retained Earnings/Contra Item task, and choose Update run. Look at the log, then close the task. (C) SAP AG AC665 19 1.4 When you copied the dimension, you did not copy the organizational units as well. For this reason, you now need to go into EC-CS Customizing, and define validation rule CS10000 for the master data. This rule affects the validation of reported and standardized financial data. What is the quickest way of changing this data en masse? You change the consolidation units and save the results. Then you execute the task Validate Standardized Financial Data in the data monitor. Look at the log, then close the task. 1-5 You have copied document types and number ranges in your dimension so that you can execute the tasks “Elimination of IU payables and receivables” and “Elimination of IU revenue and expense.” You still require a number range before you can run an update run for the tasks. Define the number range interval for number range 03 for document type 21 (elimination of IU payables and receivables) and for document type 22 (elimination of IU revenue and expense). 1-6 In the Consolidation Monitor, execute the task “Elimination of IU payables and receivables” (I2100) for your dimension #2. Choose • Show tasks • Hide texts Place your cursor on a consolidation group below the task “Elimination of IU payables and receivables”, and choose Update run. Execute task I2100 (elimination of IU payables and receivables). Look at the log, then close the task. (C) SAP AG AC665 20 4.20Solutions Unit: Consolidation Activities and Reporting Topic: Consolidation Activities 1-1 Check in the Implementation Guide to see if a task: entitled Contra item/Retained earnings item has been defined. What is the purpose of this task? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Collection of Data ¬ Contra item/Determination of retained earnings: Define task Task 1110 transfers the contra items and retained earnings determined by the FI balance sheet report to the corresponding items in the EC-CS consolidation chart of accounts. 1-2 Selected items for consolidated statements are defined in the consolidation chart of accounts. The values of these selected items are not transferred directly from the transaction data in the individual financial statements to the Consolidation system. For example, the annual net income is calculated in the financial statement first, and then transferred to the corresponding consolidation item. Which selected items have been defined for your dimension? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ Financial Statement Items ¬ Define Selected Items for Posting Selected items: Annual net income Retained earnings - current year: 251200, subitem 120 Annual net income: 390000 Deferred income taxes, Deferred income taxes (debit): 150100 (deferred tax assets) Deferred income taxes (credit): 225200 (deferred taxes payable - state) Deferred income taxes (income statement): 350100 (Income tax provision - deferred) Remaining items Balance sheet business area clearing: 239999 Retained earnings, prior year (Dr, Cr): 251100, subitem 120 (C) SAP AG AC665 21 1-3 Start the data monitor from the EC-CS application menu. Execute the task Retained Earnings/Contra Item for your dimension #2 (business area consolidation). Choose Show tasks. Close all tasks in the data monitor except for the Retained Earnings/Contra Item task. Place your cursor on a consolidation group below the Retained Earnings/Contra Item task, and choose Update run. Look at the log, and then close the task. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation ¬ Data ¬ Monitor 1-4 When you copied the dimension, you did not copy the organizational units as well. For this reason, you now need to go into EC-CS Customizing, and define validation rule CS10000 for the master data. This rule affects the validation of reported and standardized financial data. What is the quickest way of changing this data en masse? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Master Data ¬ Organizational Units ¬ Consolidation Units ¬ Make Mass Change After you assign the validation rule to the consolidation units, run the task Validate Standardized Financial Data. Look at the log and then close the task. 1-5 You have copied document types and number ranges in your dimension so that you can execute the tasks “Elimination of IU payables and receivables” and “Elimination of IU revenue and expense.” You still require a number range before you can run an update run for the tasks. Define the number range interval for number range 03 for document type 21 (elimination of IU payables and receivables) and for document type 22 (elimination of IU revenue and expense). Data: Version: 100 Number range: 03 Year: Current year From number: 3000000000 To number: 0399999999 SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Consolidation Functions ¬ Automatic Posting ¬ Interunit Elimination ¬ Define Document Types (C) SAP AG AC665 22 Select document type 21 or 22. Choose º Number ranges/Automatic reversal º Version 100, number range 03 º Define number range º Insert interval Confirm any messages that appear by pressing ENTER. Then save your entries. 1-6 In the Consolidation Monitor, execute the task “Elimination of IU payables and receivables” (I2100) for your dimension #2. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation ¬ Consolidation Tasks ¬ Monitor Choose º Show tasks º Hide texts Place your cursor on a consolidation group below the task “Elimination of IU payables and receivables”, and choose Update run. Execute task I2100 (elimination of IU payables and receivables). Look at the log, then close the task. 1-7 In the Consolidation Monitor, execute the task “Elimination of IU revenue and expense” (I2200) for your dimension #2. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation ¬ Consolidation Tasks ¬ Monitor Choose º Show tasks º Hide texts Place your cursor on a consolidation group below the task “Elimination of IU revenue and expense”, and choose Update run. (C) SAP AG AC665 23 Execute task I2200 (elimination of IU revenue and expense). Look at the log, then close the task. (C) SAP AG AC665 24 5 © SAP AG 1999 ¤ Profit Centers and Profit Center Hierarchy ¤ Origin of Profit Center Values ¤ Integration of EC-PCA and FI ¤ Preparation for Profit Center Consolidation ¤ Partner Relationships Contents Integrated Data Transfer: EC-PCA (C) SAP AG AC665 1 5.2 © SAP AG 1999 Integrated Data Transfer: EC-PCA Unit Objectives At the conclusion of this unit, you will be able to: ¤Prepare the data transfer for management consolidation. (C) SAP AG AC665 2 5.3 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting PCA Data CO Controlling FI-GL General Ledger Course Overview Diagram (C) SAP AG AC665 3 5.4 © SAP AG 1999 ¤The company puts you in charge of preparing profit center consolidation. Integrated Data Transfer: EC-PCA Business Scenario (C) SAP AG AC665 4 5.5 © SAP AG 1999 CO CO- -PA PA HR HR BP Business Planning EIS Executive Information System EC-CS Consolidation PCA Data Consolidation Unit Profit Center/Company EC-PCA Profit Center Accounting Profit Center, Company Code Cost Center Order Project P&L Account Acc. Assign. to CO object Bal. Sheet Account SD SD MM MM CO Controlling FI-GL General Ledger ¤Assets ¤Receivables ¤Payables ¤Assets ¤Receivables ¤Payables ¤WIP ¤Inventory ¤Other ¤WIP ¤Inventory ¤Other Data Stream Þ Example: Company sells a product to an affiliated company. (The presentation of this processes is in the appendix.) Þ If the receivable is paid, receivables and tax in FI are reclassified to the profit centers at the period end by means of the "Balance sheet adjustment" program. In EC-PCA, the balance sheet items "Receivables/payables" are then periodically transferred for each company code. Other FS items can be transferred either periodically or online, as required: for example assets, material stocks, work in process, receivables and payables. This enables you to analyze financial key figures (profit-sales ratio, return on investment) for each profit center. Þ For the purposes of profit center consolidation, data can be transferred by rollup. In this case, consolidation groups are formed for the profit centers to be consolidated. The consolidation units are generated together with the companies. The aim of this process is to create financial statements for profit centers in which the internal relationships between the consolidation units of these profit centers are eliminated. (C) SAP AG AC665 5 5.6 © SAP AG 1999 Group Group SEG A SEG A Pharma & Chemicals Pharma & Chemicals SBU SBU Chemicals Chemicals DIV DIV Medical Substances Medical Substances Acetyl Acetyl Paracetamol Paracetamol H H- -Insulin Insulin SEG B SEG B Services Services SEG C SEG C Corporate and Others Corporate and Others SBU SBU Pharmaceuticals Pharmaceuticals DIV DIV Analgesics Analgesics DIV DIV Diabetical Products Diabetical Products Mono Mono Combo Combo AS AS PCM PCM H H- -Insulin Insulin A A- -Insulin Insulin Insulin Insulin H H- -Insulin Insulin Strategic Business Unit Division Product Line Product Profit Center Hierarchy Þ The profit center is an area of responsibility within the enterprise for which an internal computation of income can be carried out. You can group your enterprise according to the following criteria: - geographical (locations, plant), - functional (production, sales and distribution), - product related (material groups, divisions) - according to matrix type (product/region) Þ In Profit Center Accounting, you can use a complete standard hierarchy, subhierarchy, or individual profit centers as selection criteria in the information system. You can use accounts (cost/revenue elements, P&L accounts, and balance sheet items) as evaluation factors. Þ When you maintain the settings for cost accounting, you create the top node or group of the standard hierarchy. If your cost center structure is similar to your profit center structure, you can create your profit center standard hierarchy by copying the the cost center standard hierarchy. Þ You can also create and evaluate alternative hierarchies. (C) SAP AG AC665 6 5.7 © SAP AG 1999 Settings PrCtr 1 PrCtr 1 PrCtr 1 PrCtr 3 PrCtr 3 PrCtr 3 PrCtr 2 PrCtr 4 PrCtr 4 PrCtr 4 PrCtr 5 PrCtr 5 PrCtr 5 Controlling Area Settings Master Data: Profit Center / Dummy Profit Center Assignment of Account Assignment Objects Maintaining the Control Parameters for Actual Postings and Planned Values Settings Global Settings: Profit Center Þ You store the most important control parameters and assignments in the settings for the controlling area. Þ When you maintain the master data, you can create the standard hierarchy, profit centers, as well as profit center groups. Þ Dummy Profit Center: This is used in all postings to objects that are not assigned to a particular profit center. Postings to the dummy profit center also enable you to detect missing assignments. The data in the dummy profit center can be forwarded to the actual profit center by means of assessment or distribution. Þ You can assign account assignment objects from Logistics and Financial Accounting to the profit center, and check the assignments. Þ Control parameters for actual postings: Activating profit center consolidation in EC-CS enables you to determine (in EC-PCA) for a client's affiliated companies which partner profit centers have to be reread from the purchase order/sales order. (C) SAP AG AC665 7 5.8 © SAP AG 1999 Profit Center C6111 Profit Profit Center Center C6111 C6111 Controlling Area Fixed Assignment Profit Center - Company Code EC- CS EC EC- - CS CS FI FI FI Limited Number of Consolidation Units Company Code ¤Palo Alto CChicago CNew York Profit Center: Master Record Þ When you create a profit center, you can choose the company code(s) in which the profit center should be booked. Þ The consequence of this for postings in FI is that only permitted profit centers can be posted. Þ In EC-CS, only the consolidation units of the profit centers and companies that transact in the company code(s) are generated. (C) SAP AG AC665 8 5.9 © SAP AG 1999 Cost Center Cost Element Internal Order, Project, Network Maintenance Order Production Order Production Order Profitability Segment Material Material Asset Asset Sales Order Sales Order Profit Center Profit Profit Center Center Profit Center Assignment Þ The master data of each object to which costs or revenues are assigned contains an assignment to a profit center. Deliveries and services between profit centers are also handled. Þ When an assignment to an account is carried out, the data is automatically updated statistically to the assigned profit centers, and structured according to cost and revenue elements. Þ With the help of the assignment monitor for the selected assignment objects, incorrect assignments can be detected and corrected. Þ In the case of internal goods movements, the profit center is determined by means of the combination plant/material. This supports a product oriented or regional profit center structure. The same rules are applied in the case of sales orders. If the structure of EC-PCA is sales oriented, however, you can also use substitution rules to determine the profit center from the fields in the sales order header, or from the sales order item. This supports a profit center structure that deviates from the product related dimension. Þ The balances in the individual balance sheet items (for example, assets, material stocks, work in process, receivables and payables) can likewise be posted to the assigned profit centers. This enables you to analyze financial key figures (profit-sales ratio, return on investment) for each profit center. (C) SAP AG AC665 9 5.10 © SAP AG 1999 Cost center Order C100C4311M C100C4311M Trade Law . . . Costing Asset 1 Business Area 4000 Time-dependent Data Depreciation Areas Cost Center C100C4311M • Company Code C100 • Business Area 4000 • Profit Center C4311 Cost Center Cost Center C100C4311M C100C4311M • • Company Code C100 Company Code C100 • • Business Area Business Area 4000 4000 • • Profit Center Profit Center C4311 C4311 Order ########## • Company Code C100 • Business Area 4000 • Profit Center C4311 Order Order ########## ########## • • Company Code C100 Company Code C100 • • Business Area Business Area 4000 4000 • • Profit Center Profit Center C4311 C4311 FI-AA C4311 C4311 Post Depreciation Acquisition and Production costs Transfer data online/ periodically EC- PCA Profit Center Origin: Asset Master Record Þ Example of how a profit center is derived: For cost accounting purposes, an asset can be assigned either to a cost center or to an order. Both CO objects are assigned to a company code, a profit center, and a business area when profit center accounting or business area balance sheets is activated. Þ When acquisition and production costs are posted to the asset, the profit center and the business area are derived on the basis of the cost center or the order. The profit center receives the asset balance sheet value of the acquisition and production costs when the balance sheet items are transferred. Þ In this case, you can choose either periodic or online updating of the balance sheet accounts in EC-PCA. However, the opening balance always has to be transferred for the first time with a transaction. Þ Periodic depreciation is posted to cost center or internal order, and the profit center is derived on the basis of this and assigned values. (C) SAP AG AC665 10 5.11 © SAP AG 1999 Reconciliation Ledger Company Code / Business Area / Functional Area Expense and Revenue Accounts / Cost and Revenue Elements Cost Center 1 Functional Area 1 Profit Center 1 Cost Center 4 Functional Area 4 Profit Center 4 Assessment CO and FI Reconciliation Þ Value flows in Controlling and their effects on a group's balance sheet/profit and loss accounts must be transferred to FI. To meet these demands, CO data is summarized and analyzed in the reconciliation ledger. Þ If allocations were carried out across functional area, these transactions can be entered automatically in CO, and posted to FI. You require this information if you want to calculate profit and loss using cost of sales accounting. Þ The reconciliation ledger performs the following tasks: · It summarizes reconciliation of the CO accounts with FI · It forms the basis for creating allocation postings in the general ledger when there are value flows between two functional areas. (C) SAP AG AC665 11 5.12 © SAP AG 1999 Preparation for Profit Center Consolidation (C) SAP AG AC665 12 5.13 © SAP AG 1999 Global Parameters Dimension 03 Profit Center Version 100 Actual Data Year YYYY Period 012 Cons C/A 01 US Chart Ledger US USD EC- CS EC- CS ConsGroups FS Items Data Monitor ConsMonitor Infosystem Parameters Global Session Parameters Þ If you wish to prepare profit center consolidation, you first have to create the appropriate dimension. Þ When you have done this, you can go on to specify the global session parameters. (C) SAP AG AC665 13 5.14 © SAP AG 1999 H1 ... ... SBU SBU Pharmaceuticals Pharmaceuticals DIV DIV Insulin Insulin H H- -Insulin Insulin ... ... Insulin Insulin H H- -Insulin Insulin Insulin- Palo Alto Insulin- New York DIV DIV Painkillers Painkillers SEG A SEG A Pharma & Chemicals Pharma & Chemicals ... ... Mono Mono Combo Combo AS AS PCM PCM AS- Palo Alto Consolidation Groups Consolidation Units ... Profit Center Consolidation: Hierarchy Þ In our example, the dark-shaded business units correspond to nodes in the profit center hierarchy. In consolidation, these are used to generate the consolidation groups. In consolidation, the profit centers are likewise represented as consolidation groups. Þ The consolidation units are generated on the basis of the combination of companies and profit centers. Þ In profit center consolidation, you have a number of options for generating hierarchies: · You can generate one or more consolidation group hierarchies, which show the standard hierarchy or alternative hierarchies from EC-PCA, · You can generate consolidation groups that show the companies, and are used for the reconciliation with the units of company consolidation. Þ When you create the profit center, you can specify the company codes in which the profit center is used, and this allows you to focus on the relevant units and groups. In the above example, the Palo Alto company uses the profit center 'AS'. This allows you to prevent all the profit centers from being combined with all the companies when the hierarchy is automatically created. Þ Finally, you should check over the combination of company codes and profit centers. (C) SAP AG AC665 14 5.15 © SAP AG 1999 GE 6000 Pharma DIV 62 Insulin Subsidiary C200 New York Consolidation Parent C100 Palo Alto Insulin Products for Distribution Medical Substances & Packaging Material Medical Substances & Packaging Material BU 6000 Pharma DIV 61 Painkillers DIV 62 Insulin Subsidiary C300 Chicago BU 8000 Services DIV 81 Pharma Market Research BU 4000 Chemicals DIV 43 Medical Substances DIV 41 Packaging Material Partner Relationships: EC-PCA Þ To enable consolidated results to be identified on any node in the profit center hierarchy, interunit sales (in other words, the sales between profit centers of the same consolidation group) have to be eliminated. These eliminations require partner information on the profit center/company level. Þ The partner profit center and trading partner are determined on the basis of the customer or vendor master record, and updated to profit center accounting. For this purpose, the companies have to be stored in a central SAP System, and the SD or MM modules have to be used. Otherwise, you can determine the partner profit centers by means of substitution rules or via user exit. Þ When the sales order for the purchase order is created, the SAP purchase order number in the order header is entered as partner information. The relevant purchase order item is specified in the order items, thus creating a link between the sales order and the purchase order on which it is based. This data is checked in the sales order if the customer is a trading partner whose partner information is to be determined. Þ When the customer invoice is transferred to Financial Accounting the source purchase order is also accessed. If the purchase order items are assigned to several profit centers, the sales revenue line is split according to partner profit centers, and posted to profit center accounting in differentiated form. (C) SAP AG AC665 15 5.16 © SAP AG 1999 Distributed Systems: Preparation for Consolidation in EC-PCA : ¤ Specify default partner profit center in purchasing and sales Actual Postings Settings Logistics: Partner Profit Center Þ If the partners are in different clients or systems, you can maintain derivation rules that can be used to determine the partner profit center in purchasing or in sales. The partner profit center is derived from the following source fields or a combination of these fields: Purchasing: vendor number, material number, trading partner, sender profit center. Sales: vendor number, material number, trading partner, sender profit center. Þ For each derivation step, you can maintain several derivation rules, which the system runs sequentially. If a default value is found for the target field, this is transferred, and the other derivation rules are not run. Þ You can also use the derivation rules to determine the partner profit center in a client. (C) SAP AG AC665 16 5.17 © SAP AG 1999 Purchase Order (1) SD-Worklist Customer Supplier Delivery (2) Picking (3) Goods Issue (4) Customer Invoice (6) Goods Receipt (5) Incoming Invoice (7) Company Code C100 PrCtr C6111 Company Code C300 PrCtr C4311 Company C10000 Profit Center C6111 Company C30000 Profit Center C4311 LO Partner Assignment: One-Client System Þ If companies are in the same client of your system, and if you use the SAP MM or SD components, then you store the affiliated companies in EC-PCA, and specify the companies for whom the partner profit center is to be determined by reading the source purchase order or the sales order. Þ The reading function is activated for each trading partner in EC-PCA Customizing. Þ If the relevant enterprise then occurs as a partner, the key figure "Purchase order/Sales order" can be used to decide whether partner business area and partner profit center can be derived on the basis of the purchase order or the sales order. Þ In business area consolidation, the corresponding trading partner area is also determined according using this procedure. Þ An example of reading the partner profit center is given in the appendix (stock transport order). (C) SAP AG AC665 17 5.18 © SAP AG 1999 Consolidated Group Consolidated Group SEG Pharma & Chemicals SEG Pharma & Chemicals SGE Pharma SGE Pharma SGE Chemicals SGE Chemicals DIV Diabetic DIV Diabetic Product Line Mono Product Line Mono SEG Services SEG Services DIV Analgesics DIV Analgesics BIL BU Pharma BIL BU Pharma Balance Sheet Profit Center Pharma Profit Center Profit Center AS AS BIL DIV Analgesics BIL DIV Analgesics Balance Sheet Profit Center Analgetics Profit Center Profit Center PCM PCM Balance Sheet Profit Centers Þ The balances in individual balance sheet items (for example, fixed assets, material stocks, work in process, receivables and payables) can also be assigned to profit centers. This enables you to analyze financial key figures (profit-sales ratio, return on investment) for each profit center. Þ Example of use of an additional balance sheet profit center: Two profit centers are located in one building. The costs for the building and its maintenance cannot be allocated directly to the transaction profit center, since it carries product related values. Þ Instead, on the division level, you can create a balance sheet node and a balance sheet profit center belonging to it, and can then post the rent to it, for example. If one of the two profit centers were to leave the building, the increase in costs would not fall to the remaining profit center or the product level. Þ On the division level, you can use the balance sheet profit center to evaluate key figures, such as RONA (Return on Net Assets). Þ The balance sheet profit center is booked manually. This allows you to decide whether the acquired shares of a subsidiary should be assigned completely to a division, or to the enterprise as a whole via the profit center "Corporate and Others" Þ To check the correct assignment of profit centers, you will carry out the following activities at the end of the period: check that no dummy profit centers have been posted and that the profit center "Corporate and Others" contains only postings that cannot be allocated directly. (C) SAP AG AC665 18 5.19 © SAP AG 1999 Balance Sheet Acc. Transaction Profit Center Additional Balance sheet PC Bank/Cash on hand Receivables Inventory No X X No X X Investments Fixed assets No X X X X No No No Payables Long-termpayables Tax Equity X X No X Profit Center: Additional Balance Sheet Accounts Þ For the purpose of comparing financial statement values with profit center values, or for subsequent performance key figure reports, you can carry balance sheet values in particular transaction profit centers. Þ When you do this, you decide which accounts should be carried for which evaluations in a profit center. For example, it is not appropriate to carry investment values on this level, since decisions concerning an investment are not made on the level of a transaction profit center. Þ Depending on a subsequent evaluation using key figure reports, you can decide which financial statement values you want to carry on the balance sheet profit center. This profit center includes values that do not influence the transaction result of the profit center, but which should allow an overview of the area. Þ In EC-PCA, you can define which accounts or account ranges should be transferred on the basis of transactions. If no profit center is set in a posting, the default profit center of the account range is assigned. Þ If you find that the determination of a profit center is not differentiated enough, you can also maintain derivation rules that can be used to determine the default profit center. (C) SAP AG AC665 19 5.20 © SAP AG 1999 This unit has introduced you to the following topics: ¤Important characteristics of EC-PCA ¤Data stream in Profit Center Accounting ¤The role of the partner profit center EC-PCA Preparing Data: Unit Summary (C) SAP AG AC665 20 5.21Integrated Data Transfer: EC-PCA Exercises Unit: Integrated Data Transfer: EC-PCA Topic: Profit Center Accounting At the conclusion of these exercises, you will be able to: Þ Describe the tasks in Profit Center Accounting Þ Describe the interrelationships between Profit Center Accounting, Financial Accounting, and Consolidation In the following exercise, you will prepare data in EC-PCA for transfer to Consolidation. 1-1 Display a profit center in controlling area 'C001'. Use the list of possible entries (F4) and select a profit center with F2. 1-1.1 Which standard hierarchy do the profit centers belong to? 1-1.2 What is the function of the dummy profit center C-Dummy in controlling area 'C001'? 1-1.3 Which cost centers are assigned to the profit center? 1-1.4 Why does consolidation require that a profit center be assigned to the company codes in which it was posted in the transaction system? _____________________________________________________________ (C) SAP AG AC665 21 1-2 Which profit center did you post when you posted incoming/outgoing invoices? To display the FI documents as a list, choose: Fiscal year and Own documents 1-3 Which documents were updated to Profit Center Accounting? 1-4 Theoretical Question: Which step is required to transfer receivables and payables to Profit Center Accounting? _____________________________________________________________ Your instructor will transfer the balance sheet items to Profit Center Accounting. (C) SAP AG AC665 22 5.22 Integrated Data Transfer-Solutions Unit: Integrated Data Transfer: EC-PCA Topic: Profit Center Accounting 1-1 Display a profit center in controlling area 'C001'. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Profit Center Accounting ¬ Master Data ¬ Single Editing ¬ Profit Center ¬ Display Use the list of possible entries (F4) to display a list of profit centers. Sselect a profit center with F2. 1-1.1 Which standard hierarchy do the profit centers belong to? SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Profit Center Accounting ¬ Master Data ¬ Display Standard Hierarchy The profit centers belong to hierarchy 'C-Top-1'. 1-1.2 What is the function of the dummy profit center C-Dummy in controlling area 'C001'? The dummy profit center 'C-Dummy' is used in any data transfer in which the object (for example, cost center, order...) originally assigned to an account has not been assigned to a profit center. This ensures that the data in Profit Center Accounting is complete. The data in the dummy profit center can be forwarded to the actual profit center by means of assessment or distribution. Forwarding must be carried out before consolidation. 1-1.3 Which cost centers are assigned to the profit center? SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Profit Center Accounting ¬ Master Data ¬ Assignment Monitor ¬ Cost centers ¬ Cost centers to profit centers (C) SAP AG AC665 23 1-1.4 Why does consolidation require that a profit center be assigned to the company codes in which it was posted in the transaction system? This assignment enables you to control which consolidation units are calculated on the basis of the combination profit center/company code. (This prevents all profit centers from being multiplied by all the companies while generating the consolidation units.) 1-2 Which profit center did you post when you posted incoming/outgoing invoices? To display the FI documents as a list, choose: Fiscal year and Own documents SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Document ¬ Display Choose the "List" button. 1-3 Which documents were updated to Profit Center Accounting? SAP Menu ¬ Accounting ¬ Enterprise controlling ¬ Profit center accounting ¬ Information system ¬ Reports for Profit Center Accounting ¬ Line Item Reports ¬ Profit Center: Actual Line Items (C) SAP AG AC665 24 1-4 Theoretical Question: Which step is required to transfer receivables and payables to Profit Center Accounting? 1. Readjust Profit Center: This step is only necessary if you have built up a separate ledger for profit center data. If you use the SAP standard ledger "8A", this step is not required. SAP Menu ¬ Accounting ¬ Financial accounting ¬ General ledger ¬ Periodic processing ¬ Closing ¬ Regroup ¬ Balance sheet readjustment 2.Transfer Balance Sheet Item Values to Profit Center: SAP Menu ¬ Accounting ¬ Enterprise controlling ¬ Profit center accounting ¬ Actual postings ¬ Period closing ¬ Payables/receivables Selection parameters: º All company codes º Line items º Degree of detail in log Your instructor will transfer the balance sheet items to Profit Center Accounting. (C) SAP AG AC665 25 6 © SAP AG 1999 ¤ EC-CS Data ¤ Data Transfer ¤ Rollup Contents Data Transfer Methods: EC-PCA (C) SAP AG AC665 1 6.2 © SAP AG 1999 At the conclusion of this unit, you will be able to: ¤Prepare data transfer for management consolidation ¤Check the transferred data in the receiver system Data Transfer Methods: EC-PCA Unit Objectives (C) SAP AG AC665 2 6.3 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting PCA Data CO Controlling FI-GL General Ledger Course Overview Diagram (C) SAP AG AC665 3 6.4 © SAP AG 1999 ¤The company puts you in charge of preparing profit center consolidation. ¤After you have made the necessary assignments in the sender systems, you check the settings in the receiver system. ¤You decide which consolidation units you are going to generate. ¤You have to set up and carry out the data transfer using the rollup method. ¤You can now check the data that is transferred. Data Transfer Methods: EC-PCA Business Scenario (C) SAP AG AC665 4 6.5 © SAP AG 1999 EC- CS EC- CS Parameters: Dimension: Profit Center Consolidation ... Top Node Dimension: Profit Center Consolidation H1 H1 Chemicals Pharma Hierarchy: Profit Center Pharma & Chemicals + Transfer Organizational Units Conversion to Consolidation Units Active Consolidation Types Active Consolidation Types E Company Cons E Business Area Cons E Profit Center Cons Analgesics Div. Mono AS PCM PCM- Palo Alto 03 Assigning Consolidation Types to Dimensions Þ The data for profit center consolidation is received via the rollup data transfer method. To use this method, you have to define the consolidation units and areas automatically. Þ The chosen consolidation type determines which organizational elements are proposed. If you wish, you can limit the selection of organizational elements. Þ You can define a data transfer method for every dimension. Þ You can define several hierarchies with various structures for each dimension. In the above example, one hierarchy is displayed in a dimension. To do this, you create a top node and the consolidation groups of the internal trading company. When you have done this, you decide whether you wish to generate the consolidation groups according to profit centers or companies, for example. Þ The profit centers themselves are also consolidation groups. The consolidation units are formed on the basis of the combination of profit center and company. (C) SAP AG AC665 5 6.6 © SAP AG 1999 FI FI EC- CS EC- CS Consolidation Unit Profit Center/Company Company Code Company Code C100 C100 Profit Center C6112 Transaction System Receiver System Specify Data Transfer Method: Rollup ¤ Profit Center Consolidation ¤ Consolidation Chart of Accounts## ¤ Version ### ID combination !!! ¬Company C10000 C6112-C10000 Converting Organizational Units Þ The transaction systems do not recognize the organizational units of EC-CS. This means that the transaction organizational units have to be converted to the consolidation units and groups of EC-CS. Þ In the example, you want to transfer the data from the transaction organizational unit Profit Center C6112 to the appropriate consolidation unit during the data transfer. To do this, you store rules for ID combination for the consolidation type "Profit center consolidation". These rules are used to convert the transaction organizational units to the consolidation units. Þ You define the rules that you want the system to use to derive the IDs and names of the consolidation units and groups from the IDs of the organizational units in G/L accounting and profit center accounting. Þ If necessary, you can include the controlling area in the rules for ID combination if there are several controlling areas, and identical profit centers. (C) SAP AG AC665 6 6.7 © SAP AG 1999  C6112-C10000 PCM C6111 C6112 AS PCM Consolidation Unit Consolidation Group Profit Center CS Org. Unit Grouping Category FS item Org. Unit Prefix Length 1 2 0 1 1 - 10 Company 1 6 5 3 18 2 1 1 Rules for ID Combination    C10000 C20000 C30000 IDES Palo Alto IDES New York IDES Chicago   C6111 C6112 AS PCM 1 4 4 1 6 Organizational Units: Rules for ID Combination Þ For each relevant data stream, the system determines the rules for ID combination to combine the consolidation type and dimension, and converts the organizational units to consolidation units/groups. Þ CS organizational unit 1 Consolidation unit, 2 Consolidation group Þ Grouping category 0 No grouping 1 Grouping according to company 3 Grouping according to profit center Þ FS item The "ID" of the consolidation unit (here, the profit center) is in the first or second place. Þ Organizational unit 1 Company 3 Controlling area 4 Profit center 5 Profit center/Profit center group The prefix '-' connects the "ID" with the organizational unit. Þ The length of the ID for the consolidation unit / of the consolidation group is, for example, 10 characters (+ prefix) (C) SAP AG AC665 7 6.8 © SAP AG 1999 Dimension 03 Cons C/A 01 Version 100 Period MMM/YYYY 03 Data Collection Data Collection ¤Same SAP System O Upload Hierarchy Structure Hierarchy Structure Profit Center Companies Transfer Transfer Profit Center Profit Center Hierarchy Hierarchy C6111-C10000 Group acc. to Companies Palo Alto ... C-TOP-1 PCA Integration C-BA-4000 C-BA-6000 ... C-DIV-61 C6111 C6111- C10000 Group acc. to Profit Center Hierarchy Dummy C-SEG-A Transferring/Editing Hierarchies Þ In the case of the consolidation type "Profit center consolidation", the system generates the consolidation units by combining profit centers and companies according to the rules for ID combination. Þ The system also supports two ways of generating hierarchies: · Consolidation hierarchy according to the profit center hierarchy · Consolidation hierarchy according to companies Þ The hierarchy according to companies enables you to compare the consolidation results on the basis of the data from external and internal accounting. Þ You first have to manually create each hierarchy node, as well as the overall consolidation group. Þ The generated hierarchies can be postprocessed. Þ You can then generate lists to analyze the organizational units from different perspectives: · Transferred consolidation units · Master data of the consolidation units that play an important role in integration · Transaction system and client that the unit was transferred from (C) SAP AG AC665 8 6.9 © SAP AG 1999     Transferring FS Items: Assign charts of accounts to the consolidation charts of accounts Transfer FS items from cost elements Assign cost element ranges to the FS items Match FS items with cost elements Analyze cost elements according to cost element category Transferring Data: Contra item/Retained earnings: Define task  EC-PCA: Transferring FS Items / Data Þ You can use programs to generate consolidation charts of accounts from the charts of accounts. You can also transfer (1:1) secondary cost elements as financial statement items. Þ If you wish to bundle cost elements, assign the cost element range to the financial statement items in the consolidated chart of accounts. Þ You can check the assignment of accounts and financial statement figures by using reports for analysis and reconciliation. Þ You can generate the group chart of accounts from a consolidation chart of accounts. It is not necessary to create either the chart of accounts or the account group in advance. The system creates these automatically. Þ To transfer the data, assign the group chart of accounts in the sender system to the consolidation chart of accounts in the EC-CS receiver system. When doing this, you can determine whether you wish to assign ranges of the secondary cost elements to financial statement items. Þ If you have not already done so, you have to define a task for calculating the contra item and the retained earnings during the data transfer. (C) SAP AG AC665 9 6.10 © SAP AG 1999 Group: Fiscal Year Variant: EC- CS EC- CS Active Consolidation Types Active Consolidation Types ¤EC-CS C FI-LC C RF-KONS Consolidation System Consolidation System E Company Cons E Business Area Cons E Profit Center Cons Transfer Data: Defining Data Streams Þ For each combination of consolidation type and dimension, you define the consolidation chart of accounts and version to which you want the data to be transferred. Þ For each relevant data stream and dimension, the system determines the consolidation type, and uses this to define the rules for ID combination. (C) SAP AG AC665 10 6.11 © SAP AG 1999 ECMCT R O L L R O L L U P U P EC- CS EC- CS CU: Consolidation Unit (Profit Center / Company) GC: Value in Group Currency Ledger 8A Ledger 8A Ledger 8A GLFUNCT GLFUNCT GLFUNCT FI FI FI GLPCT EC- PCA EC EC- - PCA PCA Standard Rollup LEDGER US Characteristics Key Fig. CU FS Item GC ... #### ## #### ## Þ You can use rollups to display the information contained in one or more source ledger(s) in a summarized form. Þ The rollup contains a definition which is used to specify how the data is totaled in a target ledger. Þ At present, the rollup is the only way of transferring data for profit center consolidation. SAP supplies the following standard rollups for this purpose: Þ Rollup 0C_PC2CS (sender table GLPCT - receiver table ECMCT) Þ Rollup 0C_CS2CS (sender and receiver table ECMCT) This rollup is only required for data transfer between different R/3 Systems. Þ To transfer data to consolidation, call up the standard rollup from the data monitor screen. (C) SAP AG AC665 11 6.12 © SAP AG 1999 ECMCT Ledger 8A EC- PCA EC- PCA EC- CS EC- CS Specify Sender Table and Receiver Table! CU FS Item GC xxxxx xxxx 1000 xxxxx xxxx 4500 ... ... Ledger US CU: Consolidation Unit (Profit Center Company) GC: Value in Group Currency GLPCT Rollup Header Þ The rollup consists of a rollup header and one or more rollup sequence(s). Þ The header level contains the following information: · The totals tables from (sender table) and to (receiver table) which the data records are to be rolled up. Here, the standard rollup for PCA data transfer contains the totals table of profit center accounting (GLPCT) as the sender table, and the totals table of consolidation (ECMCT) as the receiver table. · Specify the reset set. The reset set has to be adjusted in line with the Customizing settings. · Rollup set: the user must adjust this in line with the Customizing settings. · User exit: the standard rollup contains the standard exit "SC1", which does not have to be edited by the user. (C) SAP AG AC665 12 6.13 © SAP AG 1999 Ledger US PrCtr Co. FS Item GC xxxxx xxxx 1000 xxxxx xxxx 4500 ... ... Identify valid data stream for rollup R e s e t V a l u e s t o 0 R e s e t V a l u e s t o 0 R e s e t V a l u e s t o 0 Reset Set Ledger RLDNR Version RVERS Dimension RDIMEN Cons Chart RITCLG Consolidation Unit RBUNIT Receiver Table ECMCT ... Posting Level II RPLEVL Rollup Header: Reset Set O P T . R E Q . Þ At the start of the rollup, the value fields in the receiver table that are to be filled by the rollup are set to zero by the reset set. This resetting of the data in the receiver table is carried out before the actual rollup. This means that the rollup can be repeated as often as you want. Þ In data transfer from EC-PCA to EC-CS, the reset set also serves to identify the data stream to which the data records are to be posted. Þ Consequently, the reset set has to specify a unique combination of the key characteristics version (field RVERS), dimension (RDIMEN) and consolidated chart of accounts (RITCLG). It is also necessary to specify the key characteristics ledger (RLDNR) and posting level (field RPLEVL). Þ A rollup allows you to write exactly one data stream. If several data streams are to be written by means of rollup, (for example, transfer of actual data in Version 100 and of planning data in Version 200), then a corresponding number of rollups has to be defined. (C) SAP AG AC665 13 6.14 © SAP AG 1999 Rollup Set Ledger RLDNR Record Type RRCTY Version RVERS Comp. Code RBUKRS Profit Center RPRCTR ... Exit SC1 SC1 Information: Data Streams, Rules for ID Combination FS Items ... Defines maximum volume of data to be selected Defines maximum Defines maximum volume of data to be volume of data to be selected selected R O L L R O L L U P U P + Sender Table GLPCT Ledger Rec. Type Version CCd ... 8A . ... .... . ... .... . ... .... . O P T . R E Q . Rollup Header: Defining The Rollup Set Þ Rollup sets are used to determine the maximum data set to be selected for rollup that is valid for all rollup sequences. This data set can subsequently be restricted at the sequence level. Þ For performance reasons, you also have to specify at least the characteristics ledger, record type, version, and company code. Þ The standard rollup also contains an "SC1" exit. In preparations for rollup, this reads the necessary internal EC-CS Customizing tables with regard to the data streams, rules for ID combination, financial statement items, and so on. (C) SAP AG AC665 14 6.15 © SAP AG 1999 ECMCT GLPCT Ledger US Sender Field Cost Element Receiver Receiver Fields Fields: : Cons Unit Cons Unit Partner Partner Unit Unit Dimension Dimension Cons Cons Chart Chart of Accts of Accts FS FS Item Item "Convert!!!" Sequence1 Rollup Sequence XXX Sender: GLPCT Receiver: ECMCT Sequence Set: 1 Field movement CS01 Ledger: US Rollup Sequence R O L L U P R O L L U P Ledger Rec. Type Version CCd ... 8A . ... .... . ... .... . ... .... . Þ When the values in the receiver table are at zero, and the scope of selection for data is specified in the rollup set, the data to be selected is read into a rollup sequence one record at a time. Þ If you wish to transfer the data to exactly one consolidation ledger, you also have to define only one rollup sequence. Þ When defining the rollup sequence, specify the field movement and the receiver ledger. Þ The field movement specifies how each receiver field is filled. (C) SAP AG AC665 15 6.16 © SAP AG 1999 ECMCT ECMCT ECMCT GLPCT GLPCT GLPCT IF "Account/Cost element" field, THEN execute EXIT SC7(*) (*) Standard Exit SC7: IF "Account/Cost element" field filled, THEN convert to "FS item". Transfer Field Transfer Field Read Data Read Data EC- CS EC- CS Standard Exit SC7 SC7 Standard Exits Þ There is no corresponding field in the sender table for the consolidation-specific fields in the receiver table ECMCT. This means that they cannot be filled by means of direct transfer of field contents from the sender table. The standard rollup already contains standard exits for these fields, which obtain the required field contents from the appropriate consolidation tables. As a rule, these exits are sufficient for data transfer from EC-PCA to EC-CS. Þ Each selected data record goes through these conversions for the rollup. Þ If further requirements should arise, customer-specific user exits can be defined and assigned. You will find detailed instructions relating to this point in SAP note 111140. (C) SAP AG AC665 16 6.17 © SAP AG 1999 Receiver Field Sender Field Standard Exit Standard Exit Standard Exit RBUNIT RBUPTR RDIMEN RITCLG RITEM ROBUKRS RRCTY RVERS SITYP SUBIT Consolidation unit Partner unit Dimension Cons chart of accts FS item Original company code Record type Version Subitem category Subitem RBUKRS Company code SC6 SC8 SC3 SC4 SC7 SC2 SC5 SC8 SC8 SC1 SC6 SC6 SC8 SC8 SC3 SC3 SC4 SC4 SC7 SC7 SC2 SC2 SC5 SC5 SC8 SC8 SC8 SC8 SC1 SC1 Example: Field Movement User exit before writing Field Transfer and Standard Exits Þ Field movement is carried out using client-independent standard exits: Þ The exits are processed in alphabetical order. Þ If there is an error in the data record before posting, this is marked as consolidation unit 9999* (the length of the consolidation unit corresponds to the length specified in the rules for ID combination). The values of this record are set at zero. In the rollup header (processing options), you can decide whether you want to write this record. (C) SAP AG AC665 17 6.18 © SAP AG 1999 AC Docs ECMCT EC-CS Ledger GLPCT Profit Center Ledger a) Central scenario + c) decentr. scenario with ALE ECMCT EC-CS Ledger Standard Rollup GLPCT ECMCT b) decentr. Scenario w/o ALE Export Rollup ECMCT ECMCT Standard Rollup ECMCT ECMCT c) decentr. Scenario with ALE Rollup in Different Systems Þ For the purposes of transferring transaction data to the EC-CS consolidation system, certain Customizing settings for consolidation have to be known in the transaction applications in order to convert the data to the required account assignment. Þ It is about Customizing settings concerning · Consolidation chart of accounts, · FS items, · Breakdown categories, · Subitem categories, · Subitems, · Assigning dimensions/ integrated consolidation types, · Rules for ID combination · global specifications (for example Alpha conversion) Þ When a rollup of the transaction data is generated in the transaction system, the system uses the Customizing settings to convert the data. The file generated by the rollup can then be checked and written to the consolidation system. (C) SAP AG AC665 18 6.19 © SAP AG 1999 You are now able to: ¤Prepare data transfer for management consolidation ¤Check the transferred data in the receiver system Data Transfer Methods: EC-PCA Unit Summary (C) SAP AG AC665 19 6.20 Exercises Unit: Data Transfer Methods:EC-PCA Topic: Preparing EC-CS Data At the conclusion of these exercises, you will be able to: Þ Maintain the master data of a profit center in relation to the preparations you made for consolidation Þ Analyze the profit center assignments of FI documents Þ Make preparations in the EC-CS consolidation system for a profit center consolidation scenario 1-1 In the global session parameters, set your dimension #3 Profit Center Consolidation. 1-2 Check over the ID combination rules. What must your consolidation units be called? _____________________________________________________________ 1-3 Copy the hierarchy for dimension #3, and display it. To do this, create hierarchies H1 and H2 (to group according to profit centers or companies), and create a top consolidation group for each hierarchy. Place your cursor on the top node of hierarchy H1, and choose Profit Centers. Select the Same R/3 System and Hierarchy of profit centers options. Confirm the entries with 'Enter' and generate the consolidation groups and units without restricting these to particular companies/profit centers. Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. Define fiscal year variant K4 in your consolidation units. Save your entries. You can not generate sets due to technical reasons. _____________________________________________________________ (C) SAP AG AC665 20 1-4 Evaluate the master data, and check over the assignment of consolidation units to ledger and fiscal year variant and data transfer method (0 = rollup). Ask the person sitting next to you why the rollup data transfer method could be copied together with the Profit Center Consolidation dimension. _____________________________________________________________ _____________________________________________________________ 1-5 Check the definition of the data streams. (C) SAP AG AC665 21 Unit: Data Transfer Methods: EC-PCA Topic: Rollup At the conclusion of these exercises, you will be able to: Þ Describe the functions of a rollup 2-1 Look at the definition of rollup PCA_CS_2 (instructor). Check the rollup header, the reset set, the rollup sequence, and the field transfer set. _____________________________________________________________ _____________________________________________________________ (C) SAP AG AC665 22 2-2 Additional Exercise: Define your own rollup PC_CS_## for your course group (## = course group number + 40). Use the instructor's rollup as a copy template: PCA_CS_2. • As the template, enter your group’s rollup and the instructor’s rollup. • Choose the rollup header. You can use  to display and change reset set ECMCT_2. - Overwrite multi-set ECMCT_2 with ECMCT_# (where # is the letter of your dimension). • Choose Create Set and enter a description for the set. • Enter the following basic sets: - RLDNR_ECMCT_2 - RDIMEN_ECMCT_# (where # is the letter of your dimension) This set contains the dimension of your group. - RVERS_ECMCT_2 - RITCLG_ECMCT_2 - RPLEVL_ECMCT_2 • Save your entries, go back one level, and save rollup PC_CS_##. Please do not make any changes in the rollup sequence! _____________________________________________________________ (C) SAP AG AC665 23 2-3 Additional Exercise: Executing the task Data Entry In the data monitor (EC-CS application menu), execute the rollup PC_CS_## for period 012 and the current year. _____________________________________________________________ 2-4 Additional Exercise Carry out the remaining tasks in the data monitor as well as the consolidation tasks in the consolidation monitor. _____________________________________________________________ (C) SAP AG AC665 24 6.21 Data Transfer methods-Solutions Unit: Data Transfer Methods:EC-PCA Topic: Preparing EC-CS Data 1-1 In the global session parameters, set your dimension #3 Profit Center Consolidation. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Specify Global Parameters 1-2 Check over the ID combination rules. What must your consolidation units be called? SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration: Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Copy Organizational Units ¬ Define ID Combination Rules 1-3 Copy the hierarchy for dimension #3, and display it. To do this, create hierarchies H1 and H2 (to group according to profit centers or companies), and create a top consolidation group for each hierarchy. Place your cursor on the top node of hierarchy H1, and choose Profit Centers. Select the Same R/3 System and Hierarchy of profit centers options. Confirm the entries with 'Enter' and generate the consolidation groups and units without restricting these to particular companies/profit centers. Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. Define fiscal year variant K4 in your consolidation units. Save your entries. You can not generate sets due to technical reasons. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Converting Organizational Units ¬ Edit hierarchies (C) SAP AG AC665 25 1-4 Evaluate the master data, and check over the assignment of consolidation units to ledger and fiscal year variant and data transfer method (0 = rollup). Ask the person sitting next to you why the rollup data transfer method could be copied together with the Profit Center Consolidation dimension. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Converting Organizational Units ¬ Evaluate the Master Data of the Organizational Units 1-5 Check the definition of the data streams. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the EC-CS Consolidation System ¬ Collection of Data ¬ Define Data Streams (C) SAP AG AC665 26 Unit: Data Transfer Methods: EC-PCA Topic: Rollup 2-1 Look at the definition of rollup PCA_CS_2 (instructor). Check over the rollup header, the reset set, the rollup sequence, and the field transfer set. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Preparation and Activation of Data Transfer ¬ Rollups ¬ Define Rollup for Data Export ¬ Display Rollup Choose Rollup Header. By choosing , you can also display the reset set ECMCT_2. Choose Rollup Sequence. By choosing , you can also display the field transfer set. By choosing , you can also display the field transfer rule CS01. 2-2 Additional Exercise: Define your own rollup PC_CS_## for your course group (## = course group number + 40). Use the instructor's rollup as a copy template: PCA_CS_2. SAP Reference IMG ¬ Enterprise Controlling ¬ Consolidation ¬ Integration. Preparation for Consolidation ¬ Preparation in the Sender System ¬ Preparation and Activation of Data Transfer ¬ Rollups ¬ Define Rollup for Data Export ¬ Create rollup Choose Rollup Sequence. Do NOT make any changes! By choosing , you can display the field transfer set. By choosing , you can display the field transfer rule CS01. (C) SAP AG AC665 27 2-3 Additional Exercise: Executing the task Data Entry In the data monitor (EC-CS application menu), execute the rollup PC_CS_## for period 012 and the current year. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation Choose Data Monitor. Expand the top consolidation group, and place your cursor on Data Entry. Choose Update Run and Reported Data Consolidation Units. Execute the rollup PC_CS_##. Confirm the messages with Enter. What you enter: Period: 012 Year: the current year Choose Detail List. Start the rollup. 2-4 Additional Exercise: Carry out the consolidation steps in the Data monitor and in the Consolidation monitor. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation Choose Data Monitor. Block the task Standardizing Entries for the top consolidation group. Open the hierarchy. Start the task Retained Earnings/Contra Item for the top consolidation group (in update mode) and block the task. You use the same procedure for the task Validate Standardized Data. Choose the Consolidation monitor. Open the hierarchy. Place your cursor on the top consolidation group. Start the task Elimination of IU Payables/Receivables for the top consolidation group (in update mode) and block the task. You use the same procedure for the task Elimination of IU Revenue/Expense. (C) SAP AG AC665 28 (C) SAP AG AC665 29 7 © SAP AG 1999 Contents ¤ Key Figure Reporting: EC-CS ¤ Financial/Management Accounting:Reconciliation ¤ Key Figures in EC-EIS Key Figures (C) SAP AG AC665 1 7.2 © SAP AG 1999 At the conclusion of this unit, you will be able to: ¤Name various key figure reports for consolidated profit center data ¤Reconcile FI data with profit center data ¤Assess the predictive values of different reports for various levels of the enterprise Key Figures: Topic Objectives (C) SAP AG AC665 2 7.3 © SAP AG 1999 EC-CS Consolidation Dimension FI Data BP Business Planning EIS Executive Information System EC-PCA Profit Center Accounting CO Controlling FI-GL General Ledger Course Overview Diagram (C) SAP AG AC665 3 7.4 © SAP AG 1999 ¤You are to carry out consolidation at the profit center data level. ¤Then you want to use key figures to evaluate the data in profit center consolidation. Key Figures: Business Scenario (C) SAP AG AC665 4 7.5 © SAP AG 1999 FI & CO FI & CO FI & CO Balance Sheets Balance Sheets Income Statement Income Statement Total Cash Flow Total Cash Flow ROCE Return on Capital Employed ROCE Return on Capital Employed ROA Return on Operating Assets ROA Return on Operating Assets Reconciliation FI: Reconciliation FI: PCA PCA Organizational Units: Consolidation Group, Company, Strategic Business Unit, Division, Profit Center, Consolidation Unit Company/Profit Center EC-PCA EC EC- -PCA PCA EC-CS EC- EIS BP EC EC- - EIS EIS BP BP EC-CS Reporting Þ Performance key figures are used by management to specify enterprise goals, such as raising the return on investment of the operational assets by 10% while simultaneously lowering operational expenses by 5%. In order to optimally plan resources for the individual areas, the responsible managers specify these goals in terms of sub-goals. Achieving these specifications is often also decisive in determining the salary of the area manager. The performance key figures are also used to carry out comparisons within the industry, or to evaluate the marketability of an enterprise. Þ Examples of performance key figures: ROCE (Return On Capital Employed): Return on assets ROCE = NOPAT / Capital employed: Return on capital employed = annual net income before interest on borrowings, after tax / total equity Þ ROA = NOPAT / Operating Assets: Annual net income before interest on borrowings, after tax / operational transferred and current assets, and payables (C) SAP AG AC665 5 7.6 © SAP AG 1999 ¤ Balance Sheets ¤ Income Statement ¤ Cash Flow ¤ Key Figures for Return on Investment and Liquidity ¤ Economic Profit / EVA ® ¤ Discounted Cash Flow ¤ CFROI Cash Flow Return on Investment Reporting Þ In addition to the standard FI reports, you can create further reports in the R/3 System, and insert them into the report tree. Þ Cash flow: This key figure uses the cash inflow from sales to calculate the internal financing resources of an enterprise. In simplified form, an enterprise's profitability/ability to pay is calculated on the basis of the following values: annual net income + depreciation + increase in the long-term provisions Þ Cash flow does not provide a clear conclusion on the profitability of the enterprise. Consequently, other key figures for return on investment (ROI, ROCE) and liquidity (working capital, liquidity 1st/2nd/3rd degree) are generated along with the cash flow key figure. Þ In addition to the profit-based key figures, cash flow-based key figures are now being increasingly used. For example: · Discounted Cash Flow is a planning tool, that calculates the discounted cash flow for a specific planning period. This plan figure determines the current potential of the enterprise. · CFROI: The CF Return on Investment key figure permits comparisons between the return on investment in the various business areas of an enterprise. · EVA (Economic Value Added): This key figure determines the value achieved after all capital investments have been deducted. (C) SAP AG AC665 6 7.7 © SAP AG 1999 Cash Flow Report Strategic Business Unit PHARMA Fiscal Year 1999 The cell calculation is based on rows, columns, cells and +/- signs. GE 6000 1998 1999 Delta Hidden Columns Change in Net Liquidity 130546 Annual Net Income 588915 588915 Depreciation 456750 456750 Appropriations to Provisions 517435 2709110- 2191675- 517435- Delta Long-Term Payables 275050 450000 725050 275050- Delta Raw Material 30100 164635 194735 30100- Delta WIP 231637- 1544250 1312613 231637-Delta Finished Products 1092657- 1284927 192270 1092657- Acquisitions Investments 535800- 3572000 3036200 535800- Acquisitions Assets 903700- 9105726 8202026 903700- Delta Long-Term Payables 1013000 4062350- 3049350- 1013000- CF from Financing Activity 1013000 CF from Business Transactions 557046 CF from Investing Activities 152250 436665 456750 1439500- Technique for Cash Flow Reports Þ This report shows a possible display format for the total cash flow. You can create a cash flow report at the business area level if you ensure that the relevant data is handled at the business area level. Þ In the hidden columns, the drilldown report determines the totals per year, calculates the deviations, and puts them into the visible Cash Flow column for the business unit PHARMA. (C) SAP AG AC665 7 7.8 © SAP AG 1999 Group Chemicals ... Group Strategic Business Unit Division Product Line Product CF Total Cash Flow ROCE Return on Capital Employed EBITDA Earnings before Interest ... and others: Sales, Profit ROA Return on Operating Assets EBITDA Earnings before Interest CF Transaction Cash Flow and others: Sales, OPEX (Operating Expense) Diabetic Analgesic Mono Combo AS PCM Pharma Performance Key Figures in the Model Group Þ Examples of key figures: · ROCE (Return on Capital Employed) · EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) = Sales - COGS - operating costs (excl. Depreciation / Amortization) · ROA: operating profit /operating assets Þ In the IDES model enterprise, the performance of operational profit centers should be calculated using only key figures with influencing factors that can be completely controlled by the person responsible for the profit center. Þ Example: A profit center manager is not responsible for the investments carried out on the strategic business unit level. It is, therefore, expedient to calculate a key figure for return on capital employed on the strategic business unit or group level. (C) SAP AG AC665 8 7.9 © SAP AG 1999 Performance Key Figures at the Levels Consolidated Group, Segment, Strategic Business Unit: NOPAT Total Equity ROCE = NOPAT = Net Operating Profit After Tax Total Equity = Stockholders' Equity + Outside Capital ¤Total Cash Flow ¤Return On Capital Employed ¤EBITDA Earnings Before Interest,Tax, Depreciation and Amortization Performance Key Figures I Þ ROCE (Return on Capital Employed) = annual net income before interest on borrowings, after tax / total equity You can use this key figure to carry out comparisons in the industry. Þ NOPAT = annual net income before interest on borrowings, after tax Þ EBITDA = sales less COGS less operating costs (excluding depreciation / amortization) Þ COGS = costs of goods sold (C) SAP AG AC665 9 7.10 © SAP AG 1999 Performance Key Figures at the Levels Division to Profit Center Ordinary Operating Profit Operational Fixed/Current Assets ROA = ¤ Operational Expenses ¤ Ordinary Operating Profit ¤ Cash Flow from Business Transactions (Excluding Investing/ Financing Activities) ¤ Return on Operating Assets Performance Key Figures II Þ Operational Fixed/Current Assets consist of: fixed assets + inventories + receivables. Þ The payables are included so that the inventory changes at the division/profit center level are not given undue weight. (C) SAP AG AC665 10 7.11 © SAP AG 1999 Cons Chart of Accounts Cons Chart of Accounts Cons Chart of Accounts Balance Sheets Balance Sheets Balance Sheets Income Statement Income Statement Income Statement Statistical Values Statistical Values Statistical Values Key Figures EBITDA ¤ Hints on Key Figures: Þ Rule: unique hierarchy with totals items Þ Use of further FS item hierarchies for alternative totalings Þ Example: Totals item EBITDA Sales Revenue Costs of Goods Sold Operational Costs Excluding Depreciation Key Figures in the Consolidated Chart of Accounts Þ EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) = Sales less COGS less operating costs (excl. Depreciation / Amortization) Þ The items of the consolidation chart of accounts require unique hierarchies for the totals items. The key figure EBITDA uses the same value items as in the income statement hierarchy, but with different totals items. Þ This means that it is possible to create a parallel hierarchy node in addition to the normal totals items. The EBITDA totals node comprises the calculation of the following values: · Sales, · Cost of goods sold, and · Operational expenses do not include depreciation/amortization of tangible fixed assets and financial assets. Þ Advantage: You can use this key figure in all drilldown reports. If the calculation of the key figure changes, you change it in the consolidation chart of accounts (the data is not redundant). (C) SAP AG AC665 11 7.12 © SAP AG 1999 Execute Compare FI & PCA Dimension data (B/S): Execute Compare FI & PCA Dimension data (B/S): Detail List Detail List Compare FI & PCA Dimension data (B/S) Current data 7/19/1998 18:42 Reconciliation of Dimension 02 “FI Integration” with 03 “PCA Integration” Business Unit 6000 PHARMA FI Dim B/S PrCtr Current Assets Non-Cash Fixed Assets Short-term Liab. Non-Tax Long-Term Liab. Equity EQ w/o Net Income Net Income CY PCA Dim Op. PrCtr 5.272.257 5.272.257 9.632.726 6.782.470- 6.376.470- 4.062.350- 4.416.917- 569.850- 0 5.272.258 5.272.258 9.632.726 6.376.470- 6.376.470- 4.062.350- 4.416.917- 569.850- 0 4.816.313 4.816.313 2.576.283 2.177.650- 2.177.650- 0 1.764.849- 0 0 455.945 455.945 7.056.443 4.198.820- 4.198.820- 4.062.350- 2.652.068- 569.850- 0 Cash 0 0 0 0 Tax 406.000- 0 0 0 B/S BA clearing 356.754 49.247- 3.450.097- 3.400.850 Total Assets 14.904.983 14.904.984 7.392.596 7.512.388 Liability & Equity 14.904.983- 14.904.984- 7.392.596- 7.512.388- L & E w/o Tax & Clear 14.855.737- 14.855.737- 3.942.499- 10.913.238- Tot. Assets w/o Cash 14.904.983 14.904.984 7.392.596 7.512.388 Reconciliation of FI and PCA Results in EC-CS Þ In this prepared balance sheet, you can compare the results of the profit center with those of external accounting. In order to do this, you must have transferred the necessary balance sheet items to the profit centers. Þ In EC-CS, you can handle the consolidated values of the business area in various dimensions. On this level, the following reports are possible: · Balance sheets · Cash flow report · Return on capital employed You can create the following reports for the profit center consolidation dimension : · Asset portfolio · Income statement by divisions · Return on Operating Assets · Cash flow from operating activities Þ You can use drilldown reports to compare the values from both dimensions. If the business units are to be reconcilable, the balance sheet values that were handled at the profit centers are essential, and account assignment objects must be assigned completely to profit centers. (C) SAP AG AC665 12 7.13 © SAP AG 1999 Execute Execute DIM 03 DIM 03 Return on operating Assets Return on operating Assets ROA: Detail ROA: Detail Divisions and Product lines in Business Unit PHARMA DIM 03 Return on operating Assets ROA Current data 19.07.1998 18:42 Fiscal Year 1999 Analgetics Mono Combo Diabetics Sales - Net Selling & Admin Exp. Research & Develop. Cost of Goods Sold 4.629.736 ROA % 4.000 561.464 4.800 5.200.000 5.496.865 303.150 27.265 6.781.600 1.068.401 2.000 1.200.000 1.000 3.561.335 2.000 4.000.000 3.000 Operating Profit Fixed assets A/R A/P Inventory 1.311.814 585.000 2.094.163 986.300 1.183.650 1.838.594 833.851 4.961.911 1.050.610 3.340.077 296.314 135.000 273.151 228.000 1.013.000 450.000 910.499 755.000 Return on Operating Assets 954.320 128.599 433.665 Operating Assets 476.464 1.618.499 27 19 27 27 Key Figure ROA - Report in EC-CS Þ ROA = NOPAT / Operating Assets: Net operating profit after tax / operating fixed and current assets and payables (C) SAP AG AC665 13 7.14 © SAP AG 1999 Economic Value Added EVA ® Cash Flow Return On Investment CFROI Discounted Cash Flow DCF Profit-Based Key Figures versus Cash Flow-Based Key Figures Performance Key Figures: Trends Þ EVA (Economic Value Added): This key figure determines the value achieved after all capital investments have been deducted. It permits good prognoses for the future, since the influencing factors are profit-based and not cash flow- based (in other words, oriented to the sales of of the particular business unit). Þ The cash flow-based key figures provide a more realistic representation of profits and provide a reliable criterion for evaluating managers' remuneration packages. · "Discounted Cash Flow" calculates the discounted cash flow for a specific planning period and determines the current potential of the enterprise. · CFROI: The CF Return on Investment key figure permits comparisons between the return on investment in the various business areas of an enterprise. (C) SAP AG AC665 14 7.15 © SAP AG 1999 EVA ® NOPAT - (WACC x Capital) NOPAT Capital WACC Weighted Average Cost of Capital Cost of Equity II Cost of Debt II Cost of Equity I Equity / Capital Ratio Company Risk Premium Interest rate risk free investment Market Risk Premium Beta factor Cost of Debt I Debt / Capital Ratio Interest rate 1 - Tax rate x + x + x x Average Market Return – EVA®: Influencing Factors Þ The calculation of EVA is made up of several components: NOPAT (Net Operating Profit After Tax), a profit-based key figure CAPITAL: total assets - current assets WACC (Weighted Average Cost of Capital), the average costs of all long-term funds. (The costs of stockholders' equity are the opportunity costs for the investors, since they have not invested their equity in another enterprise with a similar risk.) Þ WACC is the key figure that is calculated from the enterprise figures enterprise-wide, and can be freely combined with the influencing factors of other segments. This means that you can work with the EVA key figure even at the lowest level of the enterprise structure, which allows you to maintain optimum warehouse stock, for example. Þ Data from banks, financial institutions, or industry-related data influence the costs of stockholders' equity, and thus permit an objective assessment of the enterprise. (C) SAP AG AC665 15 7.16 © SAP AG 1999 EC-PCA Calculation of Profits for the "Enterprises in the Enterprise" P C - C o n t r o l l i n g FI CO Non-SAP T r a n s a c t i o n A p p l i c a t i o n s Transaction Systems EC-EIS Management Reporting (Key Performance Indicators Monetary and Non-Monetary) Financial Consolidation Internal and External (Balance Sheets) internal external I B a n d G r o u p C o n t r o l l i n g G r o u p A c c o u n t i n g Internal Non-Monetary Performance Indicators External Performance Indicators (for example, Market Shares, Customer Satisfaction, and so on) EC-CS Validation Task Distribution: Controlling / Group Accounting Þ The results are determined automatically in the operational units. Þ In EC-CS, internal transactions are eliminated, which allows the values for the individual business units to be displayed in a consistent form. The various report categories permit you to reconcile the values between business areas and profit centers. Þ In EC-EIS, the results are presented to the management and analyzed. Real-time information with a very high level of detail flows into this component from every company area. By selecting, assigning, and summarizing the data from the operational area, you can create a key figure system tailored to your specific enterprise. Þ The integration of the transaction levels with the management information level provides consistent bases for decision making. Each responsible person optimizes his or her enterprise area in accordance with the strategy of the group as a whole. (C) SAP AG AC665 16 7.17 © SAP AG 1999 Economic Profit using Capital Charge Formular Economic Profit using Capital Charge Formular Economic Economic Profit Profit 854.585 US$ Economic Economic Profit Profit 854.585 US$ Economic Economic Profit Profit 854.585 US$ Economic Economic Profit Profit 854.585 US$ NOPAT - WACC * Capital Navigation Navigation Year Year Consolidation Group Consolidation Group Consolidation Level Consolidation Level Fiscal Year Fiscal Year ´99 ´99 Pharma Pharma Level Level 2 2 Pharma Pharma (Auto) (Auto) Start Start Exit Exit System System EVA® with SAP EC-EIS and inSight Þ Data collection reports can be used to transfer data from EC-CS and EC-PCA to the EIS database. Þ Advantages of reporting with EC-EIS: · The EIS database is not account oriented. · EIS has transactions for calculating key figures that are independent of reports in the system. Þ The inSight GUI manufactured by the Arcplan company enables you to portray the key figures from the EIS database graphically. (C) SAP AG AC665 17 7.18 © SAP AG 1999 Economic Economic Profit Profit using Capital using Capital Charge Formular Charge Formular Navigation Navigation Year Year Consolidation Group Consolidation Group Consolidation Level Consolidation Level Fiscal Year Fiscal Year ´99 ´99 Pharma Pharma Level Level 2 2 Pharma Pharma (Auto) (Auto) Tree Tree_1_A _1_A Back Back WAC WAC 9,1 % WACC Dept + WACC Equity WACC WACC Debt Debt 854.585 US$ WAC WAC Equity Equity 8,6 % Gearing Gearing 15,0 % Tax Tax rate rate 50,0 % Share price Share price 85 US$ Av Av. . Market return Market return 10,6 % Cost of Debt Cost of Debt 3,3 % Mark. Mark. capitalisation capitalisation 8.500.000 US$ Debt Debt 219.351 US$ Number of shares Number of shares 100.000 Interest Interest rate rate loans loans 6,6 % Company Risk Company Risk Premium Premium 4,0 % Risk free Risk free Investment Investment 6,1 % Beta factor Beta factor 0,89 Cost of Equity Cost of Equity 10,0 % Market Risk Market Risk Premium Premium 4,5 % EVA®: Weighted Average Cost of Capital (C) SAP AG AC665 18 7.19 © SAP AG 1999 You are now able to: ¤Name various key figure reports for consolidated profit center data ¤Reconcile FI data with profit center data ¤Assess the predictive values of different reports for various levels of the enterprise Key Figures: Unit Summary (C) SAP AG AC665 19 7.20Key figures-Exercises Unit: Key Figures At the conclusion of these exercises, you will be able to: Þ Describe the various reporting levels available for individual key figure reports Þ Name the reports for reconciling data in FI and EC-PCA You are to evaluate consolidated data at various levels as a sound basis for decision-making. You have to ensure that the consolidated data from FI and EC-PCA is consistent. 1-1 Additional Exercise: Execute some key figure reports. Your instructor will tell you the reports that you have to call up. (C) SAP AG AC665 20 7.21Key Figures-Solutions Unit: Key Figures 1-1 Additional Exercise: Execute some key figure reports. Your instructor will tell you the reports that you have to call up. SAP Menu ¬ Accounting ¬ Enterprise Controlling ¬ Consolidation ¬ Information System ¬ Tools ¬ Drilldown Reporting Use F4 to display the list of possible entries, and choose a report. (C) SAP AG AC665 21 8 © SAP AG 1999 ¤ Logistics integration between EC-CS and EC-PCA ¤ Consolidation chart of accounts Contents Appendix (C) SAP AG AC665 1 8.2 © SAP AG 1999 Example: LO Integration with FI and EC-PCA (C) SAP AG AC665 2 8.3 © SAP AG 1999 Purchase Order Customer Supplier Delivery Picking Goods Issue Customer Invoice Goods Receipt Incoming Invoice Company Code C100 PrCtr C6111 Company Code C300 PrCtr C4311 Example: LO Integration with FI and EC-PCA Þ The customer creates the purchase order with company code C100 and profit center C6111. Þ The posting year is 1999. Þ The supplier creates the delivery with company code C300 and profit center C4311. Þ Goods issue is carried out after picking. When goods issue and invoicing is carried out, the system uses the purchase order to determine the trading partner and the partner profit center. Þ When the incoming invoice and goods receipt are created, the system uses the delivery to determine the partner relationship. This means that the document contains the sales item with the customer code C100, profit center C6111, and the information on the partner units: Company C30000/ Profit Center C4311. (C) SAP AG AC665 3 8.4 © SAP AG 1999 Purchase Order Scenario Company code C100 Palo Alto makes a purchase order for the mater ial C-SA1 Acetyl Substance (material master MM03) for the production of ASPARAX. The supplier is C100VEND3; the supplying plant is C300 Chicago. Sender Partner Unit BUKRS C100 Palo Alto GSBER 6000 Pharma PRCTR C6111 ASPARAX Production Sender Sender Partner Unit Partner Unit BUKRS BUKRS C100 Palo Alto C100 Palo Alto GSBER GSBER 6000 Pharma 6000 Pharma PRCTR PRCTR C6111 ASPARAX Production C6111 ASPARAX Production No FI document is generated! ME23 Doc 4.500.000.002 The production order directly generates an SD worklist - no sales order is required. Purchase Order (C) SAP AG AC665 4 8.5 © SAP AG 1999 Delivery & Picking Scenario Company code C300 Chicago has received the purchase order for the material C-SA1 Acetyl Substance from the trading partner customer C300CUST2 (company code C100 Palo Alto). Documents for delivery and picking are generated on the basis ofthe SD worklist (generated by the purchase order). Sender Partner Unit BUKRS C300 Chicago GSBER 4000 Chemicals PRCTR C4311 Acetyl Substance Sender Sender Partner Unit Partner Unit BUKRS BUKRS C300 Chicago C300 Chicago GSBER GSBER 4000 Chemicals 4000 Chemicals PRCTR PRCTR C4311 Acetyl Substance C4311 Acetyl Substance No FI document is generated! VL03 Doc 80.000.000 Delivery and Picking (C) SAP AG AC665 5 8.6 © SAP AG 1999 Goods Issue Scenario: Plant C300 Chicago delivers to the customer of the trading partner. Material: C-SA1 FI Posting: Debit Cost of Goods Manufactured for Sales Credit Raw Materials The partner PrCtr is derived from the purchase order (in non-distributed scenarios). Sender Partner Unit BUKRS C300 Chicago C10000 Company Palo Alto GSBER 4000 Chemicals 6000 Pharma PRCTR C4311 Acetyl Substance C6111 ASPARAX Sender Sender Partner Unit Partner Unit BUKRS BUKRS C300 Chicago C300 Chicago C10000 C10000 Company Palo Alto Company Palo Alto GSBER GSBER 4000 Chemicals 4000 Chemicals 6000 6000 Pharma Pharma PRCTR PRCTR C4311 Acetyl Substance C4311 Acetyl Substance C6111 C6111 ASPARAX ASPARAX MB51 Doc 49.002.289 Goods Issue (C) SAP AG AC665 6 8.7 © SAP AG 1999 Goods Receipt Scenario: Company code C100 Palo Alto receives the ordered goods from the trading partner's suppliers. FI Document Debit Raw Materials Credit Goods Receipt/Invoice Receipt Clearing Account The partner profit center is derived from the delivery. Sender Partner Unit BUKRS C100 Palo Alto C30000 Chicago GSBER 4000 Chemicals 6000 Pharma PRCTR C4311 Acetyl Substance C6111 ASPARAX Sender Sender Partner Unit Partner Unit BUKRS BUKRS C100 Palo Alto C100 Palo Alto C30000 C30000 Chicago Chicago GSBER GSBER 4000 Chemicals 4000 Chemicals 6000 6000 Pharma Pharma PRCTR PRCTR C4311 Acetyl Substance C4311 Acetyl Substance C6111 C6111 ASPARAX ASPARAX MB03 Doc 50.002.940 Goods Receipt (C) SAP AG AC665 7 8.8 © SAP AG 1999 Invoicing Scenario: Company code C300 Chicago sends the invoice to the customer. FI Document: Debit Customer C300CUST2 (A/R) Credit Sales Revenue and Tax The partner profit center is derived from the purchase order (innon-distributed scenarios). Sender Partner Unit BUKRS C300 Chicago C10000 Palo Alto GSBER 4000 Chemicals 6000 Pharma PRCTR C4311 Acetyl Substance C6111 ASPARAX Sender Sender Partner Unit Partner Unit BUKRS BUKRS C300 Chicago C300 Chicago C10000 C10000 Palo Alto Palo Alto GSBER GSBER 4000 Chemicals 4000 Chemicals 6000 6000 Pharma Pharma PRCTR PRCTR C4311 Acetyl Substance C4311 Acetyl Substance C6111 C6111 ASPARAX ASPARAX VF03 Doc 90.000.000 Invoicing (C) SAP AG AC665 8 8.9 © SAP AG 1999 Incoming Invoice Scenario: Company code C100 Palo Alto receives the invoice from the afflil iated company's supplier (posting year 1999). FI Document Debit GR/IR clearing account and account for price differences Credit Supplier C100VEND3 (A/P) The partner profit center is derived from the delivery. Sender Trading Partner BUKRS C100 Palo Alto C30000 Chicago GSBER 4000 Chemicals 6000 Pharma PRCTR C4311 Acetyl Substance C6111 ASPARAX Sender Sender Trading Partner Trading Partner BUKRS BUKRS C100 Palo Alto C100 Palo Alto C30000 C30000 Chicago Chicago GSBER GSBER 4000 Chemicals 4000 Chemicals 6000 6000 Pharma Pharma PRCTR PRCTR C4311 Acetyl Substance C4311 Acetyl Substance C6111 C6111 ASPARAX ASPARAX MR03 Doc 5.100.000.000 Incoming Invoice (C) SAP AG AC665 9 8.10 Cons Chart Dimension Cons Chart 1 US, ARE Balance Sheet, COGS Version Period Item Medium Text for FS items IT S WA 100000 ASSETS 2 + A 100100 Total Current Assets 2 + A 110000 Cash and Cash Equivalents 2 + A 110100 Cash 1 + A 110200 Marketable Securities 1 + A 119000 Net Receivables 2 + A 120000 Accounts Receivable - Net 2 + A 120100 Trade Receivables 1 + A 120200 Allowance for Doubtful Accounts 1 - A 125000 Other Receivables 2 + A 125100 Notes Receivable 1 + A 125200 Interest Receivable 1 + A 125300 Miscellaneous Receivables 1 + A 130000 Intercompany Receivables 2 + A 130100 IC Trade Receivables 1 + A 130200 IC Notes Receivable 1 + A 130300 IC Interest Receivable 1 + A 130500 IC Due to/from 1 + A 131000 IC Elimination of Payables and Receivables 1 + A 135000 Inventories 2 + A 135100 Raw Materials 1 + A 135200 Work in Process 1 + A 135300 Finished Goods Inventory - Purchased 1 + A 135400 Finished Goods Inventory - Production 1 + A 140000 Other Current Assets 2 + A 140100 Prepaid Insurance 1 + A (C) SAP AG AC665 10 140200 Other Current Assets 1 + A 150000 Deferred Tax Assets 2 + A 150100 Deferred Tax Assets 1 + A 150200 Deferred Tax Assets - Valuation Allowance 1 + A 160000 Total Fixed Assets 2 + A 170000 Investments 2 + A 170100 Investments in Subsidiaries - Purchase 1 + A 170200 Investments in Subsidiaries - Proportional 1 + A 170300 Investments in Subsidiaries - Equity 1 + A 170400 Investments in Parent Company's Common Stock 1 + A 180000 Goodwill - Net 2 + A 181000 Goodwill 2 + A 181100 Goodwill - Purchase 1 + A 181200 Goodwill - Proportional 1 + A 181300 Goodwill - Equity 1 + A 181400 Goodwill - Push Down Method 1 + A 185000 Accum. Goodwill Amortization 2 - A 185100 Accum. Goodwill Amortization - Purchase 1 - A 185200 Accum. Goodwill Amortization - Proportional 1 - A 185300 Accum. Goodwill Amortization - Equity 1 - A 185400 Accum. Goodwill Amortization - Push Down Method 1 - A 190000 Property, Plant and Equipment, net 2 + A 191000 Property, Plant and Equipment 2 + A 191100 Land and Real Estate 1 + A 191200 Buildings 1 + A 191300 Furniture and Fixtures 1 + A 191400 Transportation Equipment 1 + A 191500 Machinery and Equipment 1 + A 195000 Accumulated Depreciation 2 - A 195200 Accumulated Depreciation - Buildings 1 - A 195300 Accumulated Depreciation - Furniture and Fixtures 1 - A 195400 Accumulated Depreciation - Transportation Equip. 1 - A 195500 Accumulated Depreciation - Mach. & Equipment 1 - A (C) SAP AG AC665 11 200000 Total Liabilities and Stockholders Equity 2 - B 200100 Total Liabilities 2 - B 200200 Total Current Liabilities 2 - B 201000 Trade Payables 2 - B 201100 Trade Payables 1 - B 201200 Miscellaneous Trade Payables 1 - B 205000 Other Payables 2 - B 205100 Notes Payable - Current Portion 1 - B 205200 Bonds Payable - Current Portion 1 - B 205300 Accrued Interest Payable 1 - B 205400 Accrued Wages Payable 1 - B 205500 Accrued Payroll Taxes Payable 1 - B 205600 Dividends Payable 1 - B 205700 Miscellaneous Payables 1 - B 210000 Payables to Affiliated Companies 2 - B 210100 IC Trade Payables 1 - B 210200 IC Notes Payable 1 - B 210300 IC Interest Payable 1 - B 210400 IC Dividends Payable 1 - B 215000 Income Taxes Payable 2 - B 215100 Income Taxes Payable - Federal 1 - B 215200 Income Taxes Payable - State 1 - B 215300 Income Taxes Payable - Foreign 1 - B 220000 Other Taxes Payable 2 - B 220100 Sales and Use Tax Payable 1 - B 220200 Foreign Withholding Taxes Payable 1 - B 220300 Property Taxes Payable 1 - B 225000 Deferred Taxes Payable 2 - B 225100 Deferred Taxes Payable - Federal 1 - B 225200 Deferred Taxes Payable - State 1 - B 225300 Deferred Taxes Payable - Foreign 1 - B 225400 Deferred Tax Payables -Value adjustment 1 + B 230000 Total Long Term Liabilities 2 - B 235000 Long Term Debt 2 - B 235100 Notes Payable - Long Term Portion 1 - B (C) SAP AG AC665 12 235200 Bonds Payable - Long Term Portion 1 - B 239999 B/S Business Area - Clearing Account 1 - B 240000 Minority Interest 2 - B 240100 Minority Interest - Common Stock 1 - B 240200 Minority Interest - Common Stock - ESOP Shares 1 - B 240300 Minority Interest - Subscribed Capital Stock 1 - B 240400 Minority Interest - Preferred Stock 1 - B 240500 Minority Interest - Additional Paid in Capital 1 - B 240600 Minority Interest - Treasury Stock 1 - B 240700 Min. Int. - Treasury Stock, Reciprocal Holdings Inv. 1 - B 240800 Minority Interest - Dividends Payable 1 - B 240900 Minority Int. - Currency Translation Differences 2 - B 240910 Min. Int. - Cur.Transl.Diffs - Prop, Plant & Equip 1 - B 240920 Min. Int. - Cur.Transl.Diffs - Investments 1 - B 240930 Min. Int. - Cur.Transl.Diffs - Stockholders´ Equity 1 - B 240940 Min. Int. - Cur.Transl.Diffs - Other 1 - B 240950 Min. Int. - Cur.Transl.Diffs - Rounding 1 - B 241000 Minority Interest in retained earnings 2 - B 241100 Minority Interest - Ret. Earnings - Prior Years 1 - B 241200 Minority Interest - Ret. Earnings - Current Year 1 - B 241300 Min. Int. - Ret. Earn. - CY prior to First Cons 1 - B 241350 Min. Int. - Ret. Earn. - ANI Prior to Prop. Change 1 - B 241400 Min. Int. - Ret. Earn. - Appropriation Transfers 1 - B 241500 Min. Int. - Ret. Earn. - Appropriation Deductions 1 - B 241600 Min. Int. - Ret. Earn. - Dividends Paid 1 - B 241620 Min. Int. - Ret. Earn. - Dividends Paid Clearing 1 - B 241630 Min. Int. - Ret. Earn. - Bonus Management 1 - B 241800 Min. Int. - Ret. Earn. - Appropriations 1 - B 247000 Minority Interest - Investments in Subsidiaries 2 - B 247010 Min. Int. – Investments in Subsid. - Purchase 1 - B 247020 Min. Int. – Investments in Subsid. - Proportional 1 - B 247030 Min. Int. - Investments in Subsid. - Equity 1 - B 247040 Min. Int. – Investments in Common Stock of Parent 1 - B 250000 STOCKHOLDERS' EQUITY 2 - B 250050 Total Subscribed Common Stock 2 - B 250100 Common Stock 1 - B (C) SAP AG AC665 13 250200 Common Stock - ESOP Shares 1 - B 250300 Subscription Receivables 1 - B 250400 Preferred Stock 1 - B 250500 Additional Paid-in Capital 1 - B 250600 Treasury Stock 1 + B 250700 Treasury Stock - Reciprocal Holdings 1 + B 250800 Stock Dividends to be Distributed 1 - B 250900 Translation differences 2 - B 250910 Currency Translation Adjustments - Prop., Plant & E 1 - B 250920 Currency Translation Adjustments - Investments 1 - B 250930 Currency Translation Adjustments - Stockh. Equity 1 - B 250940 Currency Translation Adjustments - Other 1 - B 250950 Currency Translation Adjustments - Rounding 1 - B 251000 Retained earnings 2 - B 251100 RE Prior Years 1 - B 251200 RE Current year 1 - B 251300 Retained Earnings- CY prior to First Cons 1 - B 251350 Retained earnings - ANI prior to Proportion Change 1 - B 251400 Retained earnings - Appropriation Transfers 1 - B 251500 Retained earnings - Appropriation Deductions 1 + B 251600 Ret. Earnings - Dividends Paid 1 - B 251620 Retained earnings - Clearing of Dividends Paid 1 - B 251630 Ret. Earnings - Bonus Management 1 - B 251700 Retained earnings - Clearing of Cons of Investment 1 - B 251800 Ret. Earnings - Appropriations 1 - B 300000 Sales revenue 2 - C 301000 Sales revenue 2 - C 301100 Sales (Third Parties) 1 - C 301200 Intercompany Sales 1 - C 302000 Sales Discounts and Returns 2 - C 302100 Sales Discounts and Returns (Third Parties) 1 - C 302200 IC Sales Discounts and Returns 1 - C 303000 Cost Of Goods Sold 2 - C 303100 Cost Of Goods Sold 1 - C 303200 IC Cost Of Goods Sold 1 - C 304000 Sales Discounts and Returns - Foreign 2 - C 305000 Total Expenses 2 + C (C) SAP AG AC665 14 306000 Operating Income 2 - C 310000 Operating Expenses 2 + C 310100 Raw Materials Consumed 1 + C 310200 Inventory Valuation 1 + C 310300 Packaging Materials Expense 1 + C 310400 Distribution Expenses 1 + C 310500 Heating and Electricity Expense 1 + C 310600 Subcontractor Services 1 + C 310700 Wages and Salaries 1 + C 310800 Pension and Employee Benefits Expense 1 + C 310900 Payroll and Withholding Expense 1 + C 311000 Medical Expense 1 + C 311100 Building and Equipment Maintenance Expense 1 + C 311200 Insurance Expense 1 + C 311300 Auto Expense 1 + C 311800 Goodwill Amortization Expense 2 + C 311810 Goodwill Amortization -Purchase 1 + C 311820 Goodwill Amortization -Proportional 1 + C 311830 Goodwill Amortization -Equity 1 + C 311840 Goodwill Amortization -Push-down 1 + C 311900 Depreciation Expense 2 + C 311920 Depreciation Expense - Buildings 1 + C 311930 Depreciation Expense - Furniture and Fixtures 1 + C 311940 Depreciation Expense - Transportation Equipment 1 + C 311950 Depreciation Expense - Machinery and Equipment 1 + C 312400 Rent expense 1 + C 312500 Postage and Shipping Costs 1 + C 312600 Telephone Expense 1 + C 312700 Travel Expenses 1 + C 312800 Supplies Expense 1 + C 312900 Other General Expense 1 + C 313000 Other Administrative Expense 1 + C 313100 Professional Fees 1 + C 319999 OPEX w/o Depreciation &Amortization 2 + C (C) SAP AG AC665 15 320000 Other Income and Expense 2 + C 320100 Interest Income 1 + C 320200 IC Interest Income 1 + C 320300 Dividend Income 1 + C 320400 IC Dividend Income 1 + C 320500 Other Income 1 + C 320600 IC Other Income 1 + C 320650 Revenue from Divestitures 1 + C 320700 Interest Expense 1 + C 320800 IC Interest Expense 1 + C 320900 Other Expense 1 + C 321000 Loss from Write-down Investments 1 + C 321100 IC Other Expense 1 + C 321150 Expense from Divestitures 1 + C 321200 Equity in Net Income of20 - 50% Subsidiaries 1 - C 321300 Exchange Rate Gains (Losses) 1 - C 330000 Income before Taxes 2 - C 335000 Income Tax Provision 2 + C 340000 Income Tax Provision - Current 2 + C 340100 Income Tax Provision - Current Federal 1 + C 340200 Income Tax Provision - Current State 1 + C 340300 Income Tax Provision - Current Foreign 1 + C 350000 Income Tax Provision - Deferred 2 + C 350100 Income Tax Provision - Deferred Federal 1 + C 350200 Income Tax Provision - Deferred State 1 + C 350300 Income Tax Provision - Deferred Foreign 1 + C 360000 Income from Continuing Operations 2 - C 360050 Non-continuing Operations 2 + C 360100 Gain (Loss) - Discontinued Operations-Net of Tax 1 - C 360200 Gain (Loss) - Extraordinary Items-Net of Tax 1 - C 360300 Gain (Loss) - Change in Accounting Principle-Net.. 1 - C 370000 Net Income Before Minority Interest 2 - C 370100 Minority Interest 1 - C 380000 Net Income 2 - C 390000 Annual net income 1 + C (C) SAP AG AC665 16 910000 Selected Item for Cur. Translation Affect. Earnings 1 + D 930000 Stat: Other Items 2 - D 931000 Stat: Annual net income 2 - D 931100 Total annual net income 1 - D 931200 Total Annual Net Income- Offset 1 + D 931300 Minority interest in annual net income 1 - D 931400 Minority Interest in Annual Net Income - Offset 1 + D 931500 Adjusted annual net income 1 - D 931600 Adjusted Annual Net Income - Minority Interest 1 - D 932000 Stat: Stockholder Equity for Equity Method 2 - D 932100 Stat: Annual Net Income - Equity Method 1 - D 932200 Stat: Dividends for Equity Method 1 - D 932300 Stat: Bonus Management 1 - D 932400 Stat: Translation differences 1 - D 932500 Stat: GW Clearing within Cons Group 1 - D 932600 Stat: Adjustment of Prior Period Earnings 1 - D 933000 Stat: Goodwill 2 - D 933100 Stat: Positive Goodwill 1 - D 933200 Stat: Negative Goodwill 1 + D 939000 Stat: Overall Offsetting Item 1 - D 950000 Stat: Stockholders’ Equity 2 - D 950100 Stat: Common Stock 1 - D 950200 Stat: Common Stock - ESOP Shares 1 - D 950300 Stat: Subscription Receivables 1 - D 950400 Stat: Preferred Stock 1 - D 950500 Stat: Additional Paid-in Capital 1 - D 950600 Stat: Treasury Stock 1 - D 950700 Stat: Treasury Stock Reciprocal Holdings 1 - D 950800 Stat: Stock Dividends to be Distributed 1 - D 950900 Stat: Translation differences 2 - D 950910 Stat: Cur.Transl.Diff. - Property, Plant and Equipment 1 - D 950920 Stat: Cur.Transl.Diff. - Investments 1 - D 950930 Stat: Cur.Transl.Diff. - Equity 1 - D 950940 Stat: Cur.Transl.Diff. - Other 1 - D 950950 Stat: Cur.Transl.Diff. - Rounding 1 - D 951000 Stat: Retained earnings 2 - D (C) SAP AG AC665 17 951100 Stat: RE Prior Years 1 - D 951200 Stat: RE Current year 1 - D 951300 Stat: Retained Earnings- CY prior to First Cons 1 - D 951350 Stat: Retained Earnings- ANI prior Proportion Change 1 - D 951400 Stat: Ret. Earnings - Appropriation Transfer 1 - D 951500 Stat: Ret. Earnings - Appropriation Deductions 1 - D 951600 Stat: Ret. Earnings - Dividends Paid 1 - D 951620 Stat: Ret. Earnings - Clearing Distribution of Dividends 1 - D 951630 Stat: Ret. Earnings - Bonus Management 1 - D 951700 Stat: Ret. Earnings - Clearing Cons of Investments 1 - D 951800 Stat: Ret. Earnings - Appropriations 1 - D 962000 Stat: Neg. Stockholders' Equity for Equity Method 2 - D 962100 Stat: Neg. SH Equity - Annual Net Income f. Equity 1 - D 962200 Stat: Neg. SH Equity - Dividends f. Equity 1 - D 962300 Stat: Neg. SH Equity - Bonus Management 1 - D 962400 Stat: Neg. SH Equity - Currency Translation Diffs 1 - D 962500 Stat: Neg. SH Equity - GW Amort. in Cons Group 1 - D 962600 Stat: Neg. SH Equity - Adjusted Pr. Period Earnings 1 - D C-1000 Group Share 1 + D C-2000 Group Share with Voting Rights 1 + D C-3000 Group Share Without Voting Rights 1 + D C-4000 Group Share in Annual Net Income 1 + D C-5000 Group Share, Direct 1 + D EBITDA 2 + C (C) SAP AG AC665 18 AC665 Integration.............................................................................................................................................................1 Copyright.......................................................................................................................................................................2 Enterprise Controlling................................................................................................................................................4 Course Prerequisites...................................................................................................................................................5 Target group...............................................................................................................................................................6 Course Goal...............................................................................................................................................................7 Course Objectives......................................................................................................................................................8 Course Content...........................................................................................................................................................9 Main Business Scenario...........................................................................................................................................10 Course Overview Diagram......................................................................................................................................11 Group Control: Procedures and Infrastructure...............................................................................................................1 Group Control: Procedures and Infrastructure Unit Objectives................................................................................2 Course Overview Diagram........................................................................................................................................3 Group Control: Procedures and Infrastructure Business Scenario............................................................................4 Managing a Global Enterprise...................................................................................................................................5 Strategy: Decentralizing Responsibility....................................................................................................................6 Consolidation: Requirements.....................................................................................................................................7 Enterprise Controlling................................................................................................................................................8 Strategic Enterprise Management..............................................................................................................................9 SAP Consolidation - Future Development..............................................................................................................10 EC-CS: Functions....................................................................................................................................................11 Model Group: IDES.................................................................................................................................................12 Strategic Business Unit ...........................................................................................................................................13 Enterprise Structure and Consolidation Type..........................................................................................................14 Profit Center Consolidation.....................................................................................................................................15 Data Stream..............................................................................................................................................................16 Performance Key Figures in the Model Group........................................................................................................17 Group Control: Procedures and Infrastructure Unit Summary................................................................................18 Exercise Data...........................................................................................................................................................19 Group Control-Solutions..........................................................................................................................................28 Integrated Data Transfer: FI...........................................................................................................................................1 Integrated Data Transfer: FI Unit Objectives............................................................................................................2 Course Overview Diagram........................................................................................................................................3 Integrated Data Transfer: FI Business Scenario.......................................................................................................4 Integration of Master Data.........................................................................................................................................5 EC-CS: Data Structures.............................................................................................................................................6 Organizational Structures...........................................................................................................................................7 Consolidation Dimension and Hierarchies................................................................................................................8 Business Area Consolidation.....................................................................................................................................9 Versions...................................................................................................................................................................10 Ledger and Currency................................................................................................................................................11 Consolidation Chart of Accounts.............................................................................................................................12 Chart and Breakdown Category...............................................................................................................................13 Subitems...................................................................................................................................................................14 Global Session Parameters.......................................................................................................................................15 Financial Accounting...............................................................................................................................................16 Preparation in FI......................................................................................................................................................17 IMG Settings: Different Systems.............................................................................................................................18 FI: Organizational Elements....................................................................................................................................19 Assignment: Company Code - Company................................................................................................................20 Additional Account Assignment: Business Area.....................................................................................................21 Assignments: Asset Master Record.........................................................................................................................22 Trading Partner Information: FI...............................................................................................................................23 Preparation in FI: Document Type..........................................................................................................................24 Company Code Assignment: Business Area...........................................................................................................25 Consolidation Business Area...................................................................................................................................26 Preparation for Business Area Consolidation..........................................................................................................27 Business Area Adjustment.......................................................................................................................................28 Transaction Types....................................................................................................................................................29 Preparation in FI: Functional Areas.........................................................................................................................30 Preparations: Controlling.........................................................................................................................................31 Preparations: Materials Management......................................................................................................................32 Preparations: Sales...................................................................................................................................................33 Integrated Data Transfer: FI Unit Summary...........................................................................................................34 Integrated Data Transfer-Exercises..........................................................................................................................35 Integrated Data Transfer-Solutions..........................................................................................................................42 Data Transfer Methods: FI Data....................................................................................................................................1 Data Transfer Methods: FI Data Unit Objectives......................................................................................................2 Course Overview Diagram........................................................................................................................................3 Data Transfer Methods: FI Data Business Scenario..................................................................................................4 Consolidation With Different Releases.....................................................................................................................5 Data Transfer Methods..............................................................................................................................................6 Prepare Data Transfer................................................................................................................................................7 Sender System: Data Transfer Method......................................................................................................................8 Realtime Update.........................................................................................................................................................9 Rollups.....................................................................................................................................................................10 Transferring Values from Transaction G/L Accounts.............................................................................................11 Creating a Group Chart of Accounts/Items.............................................................................................................12 FI Accounts / Secondary Cost Elements..................................................................................................................13 Periodic Extract........................................................................................................................................................14 Transaction Accounts - Periodic Extract.................................................................................................................15 Data Transfer Methods Periodic Extract..................................................................................................................16 Assigning Consolidation Types to Dimensions.......................................................................................................17 Converting Organizational Units.............................................................................................................................18 Organizational Units: Rules for ID Combination....................................................................................................19 Maintaining Hierarchies...........................................................................................................................................20 Realtime Updates: Defining Document Types........................................................................................................21 Defining Data Streams.............................................................................................................................................22 Data Transfer Methods: FI Data Unit Summary......................................................................................................23 Data Transfer methods-Exercises............................................................................................................................24 Data Transfer methods-Solutions............................................................................................................................33 Consolidation Activities and Reporting.........................................................................................................................1 Consolidation Activities and Reporting: Unit Objectives.........................................................................................2 Course Overview Diagram........................................................................................................................................3 Consolidation Activities and Reporting: Business Scenario.....................................................................................4 Preparing Consolidation Activities and Reporting....................................................................................................5 Carrying Forward Balances.......................................................................................................................................6 Methods of Transferring Data to EC-CS...................................................................................................................7 EC-CS: Entering Additional Financial Data..............................................................................................................8 Determining Contra Items..........................................................................................................................................9 Calculating Retained Earnings: Selected Items.......................................................................................................10 Validation.................................................................................................................................................................11 Currency Translation...............................................................................................................................................12 Data Monitor............................................................................................................................................................13 Consolidation Monitor.............................................................................................................................................14 Interunit Elimination................................................................................................................................................15 Document Matching.................................................................................................................................................16 Information System..................................................................................................................................................17 Consolidation Activities and Reporting: Unit Summary.........................................................................................18 Exercises..................................................................................................................................................................19 Solutions..................................................................................................................................................................21 Integrated Data Transfer: EC-PCA................................................................................................................................1 Integrated Data Transfer: EC-PCA Unit Objectives..................................................................................................2 Course Overview Diagram........................................................................................................................................3 Integrated Data Transfer: EC-PCA Business Scenario..............................................................................................4 Data Stream................................................................................................................................................................5 Profit Center Hierarchy..............................................................................................................................................6 Global Settings: Profit Center....................................................................................................................................7 Profit Center: Master Record.....................................................................................................................................8 Profit Center Assignment...........................................................................................................................................9 Profit Center Origin: Asset Master Record..............................................................................................................10 CO and FI Reconciliation........................................................................................................................................11 Preparation for Profit Center Consolidation............................................................................................................12 Global Session Parameters.......................................................................................................................................13 Profit Center Consolidation: Hierarchy...................................................................................................................14 Partner Relationships: EC-PCA...............................................................................................................................15 Logistics: Partner Profit Center...............................................................................................................................16 LO Partner Assignment: One-Client System...........................................................................................................17 Balance Sheet Profit Centers...................................................................................................................................18 Profit Center: Additional Balance Sheet Accounts..................................................................................................19 EC-PCA Preparing Data: Unit Summary................................................................................................................20 Integrated Data Transfer: EC-PCA Exercises..........................................................................................................21 Integrated Data Transfer-Solutions..........................................................................................................................23 Data Transfer Methods: EC-PCA..................................................................................................................................1 Data Transfer Methods: EC-PCAUnit Objectives.....................................................................................................2 Course Overview Diagram........................................................................................................................................3 Data Transfer Methods: EC-PCABusiness Scenario.................................................................................................4 Assigning Consolidation Types to Dimensions.........................................................................................................5 Converting Organizational Units...............................................................................................................................6 Organizational Units: Rules for ID Combination......................................................................................................7 Transferring/Editing Hierarchies...............................................................................................................................8 EC-PCA: Transferring FS Items / Data.....................................................................................................................9 Transfer Data: Defining Data Streams.....................................................................................................................10 Standard Rollup.......................................................................................................................................................11 Rollup Header..........................................................................................................................................................12 Rollup Header: Reset Set.........................................................................................................................................13 Rollup Header: Defining The Rollup Set.................................................................................................................14 Rollup Sequence......................................................................................................................................................15 Standard Exits..........................................................................................................................................................16 Field Transfer and Standard Exits............................................................................................................................17 Rollup in Different Systems.....................................................................................................................................18 Data Transfer Methods: EC-PCAUnit Summary....................................................................................................19 Exercises..................................................................................................................................................................20 Data Transfer methods-Solutions............................................................................................................................25 Key Figures....................................................................................................................................................................1 Key Figures: Topic Objectives..................................................................................................................................2 .......................Course Overview Diagram.....8 Incoming Invoice......3 Purchase Order........4 EC-CS Reporting...........................10 ..................................................................................................................................6 Technique for Cash Flow Reports...................................................................................................................8 Performance Key Figures I......................................................................................................................9 Performance Key Figures II..............................................................................21 Appendix.......................................................6 Goods Receipt............................Report in EC-CS.......................................................................................3 Key Figures: Business Scenario...........................................14 EVA®: Influencing Factors.....................................................................................................................................................................................................................................................................................................................................................................................................................................4 Delivery and Picking...............................................................19 Key figures-Exercises......................................................................................................................................................................................................................................................................................................................................................................7 Invoicing.......15 Task Distribution: Controlling / Group Accounting................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 Example: LO Integration with FI and EC-PCA........................................................................................................................................................12 Key Figure ROA ................................................................................................................................................................................................................................................................5 Goods Issue.....................................20 Key Figures-Solutions.....17 EVA®: Weighted Average Cost of Capital..............................................................................13 Performance Key Figures: Trends....................................9 -.......10 Key Figures in the Consolidated Chart of Accounts..........................................................................................................................................................................................................11 Reconciliation of FI and PCA Results in EC-CS........................2 Example: LO Integration with FI and EC-PCA.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................7 Performance Key Figures in the Model Group........................................................................................................................................................................16 EVA® with SAP EC-EIS and inSight........................................................................................................................................................18 Key Figures: Unit Summary.................................................5 Reporting............. 0 AC665 Integration AC665 EC-CS Integration © SAP AG 1999 © SAP AG     R/3 Release 4.6B December 1999 Material number 5003 5819 . 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All other products mentioned are trademarks or registered trademarks of their respective companies.over the world.  Design: SAP Communications Media . 6b B 2 days Executive Information System (EIS) 2 Setting up the system AC625 4.B P: Business Planning AC615 4.6b B 2 days Executive Information System (EIS) 1 Reporting AC620 4.E I S: Executive Information System Level 3 E C .3 Enterprise Controlling Level 2 E C .6b B 1 day Executive Information System (EIS) 3 Business Planning E C .P C A: Profit Center Accounting AC040 A 5 days Cost Management and Controlling AC610 B 2 days Profit Center Accounting E C .0.C S: Consolidation Capital Consolidation AC660 B 5 days EC-CS: Consolidation functions AC205 C 2 days Financial Closing C 5 days AC220 Special Purpose Ledger A Controlling B Enterprise Controlling C Financial Accounting AC010 C 5 days AC665 3 days EC-CS: Integration Financial Accounting and Reporting © SAP AG 1999 . 4 Course Prerequisites  Required  Knowledge of business processes  Basic knowledge of accounting: individual financial statements and consolidation  Recommended  SAP20 .Overview of External Accounting  AC660 .Consolidation Functions © SAP AG 1999 .0.Overview of SAP R/3  AC010 . 0. . project teams Consultants  Duration: 3 days © SAP AG 1999  Remarks This course material is not intended for self teaching programs.5 Target group  Participants:   Project managers. The course is only complete in conjuction with the instructor's explanations. This is why there is sufficient space for your notes. 0. you will be able to:  Configure and prepare the R/3 component for consolidation  Understand SAP terminology  Understand how integration between EC-CS and EC-PCA / FI works  Understand financial key figures that can be calculated using consolidated data © SAP AG 1999 .6 Course Goal At the conclusion of this course. you will be able to  Configure the sender and receiver systems  Create EC-CS master data using the link to FI charts of accounts/EC-PCA profit center hierarchies  Use the integrated environment to transfer values for individual financial statements from the transaction systems  Work through consolidation steps resulting from the data integration  Reconcile FI data with PCA data in the EC -CS component © SAP AG 1999 .0.7 Course Objectives At the conclusion of this course. 8 Course Content Preface Unit 1 Group Control: Procedures and Infrastructure Integrated Data Transfer: FI Data Transfer Methods: FI Data Consolidation Activities and Reporting Unit 5 Integrated Data Transfer: EC-PCA Data Transfer Methods: EC-PCA Key Figures Unit 2 Unit 3 Unit 4 Unit 6 Unit 7 Exercises Solutions Appendix © SAP AG 1999 .0. 0. your task is to configure the system for consolidation so that the various options for transferring data from FI or EC PCA can be utilized optimally.  As a member of the project team.9 Main Business Scenario  You are a consultant for the consolidation department of your enterprise.  Next. and use the high level of data integration to calculate key figures from the consolidated data. you test the integrated environment.  You will then test the consolidation of the data. and show the project team various techniques for transferring data. © SAP AG 1999 . 0.10 Course Overview Diagram EIS Executive Information System BP Business Planning EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling . 1 Group Control: Procedures and Infrastructure Contents  Requirements for Consolidation Systems  The IDES Model Group © SAP AG 1999 (C) SAP AG AC665 1 . 2 Group Control: Procedures and Infrastructure Unit Objectives At the conclusion of this unit.1. you will be able to:  Describe reasons for consolidation within a corporate group  Name various consolidation types  Name the various organizational structures of the EC-CS components  Choose the consolidation dimension using the session parameters © SAP AG 1999 (C) SAP AG AC665 2 . 3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 .1. 4 Group Control: Procedures and Infrastructure Business Scenario  Your task is to hierarchically organize a complex company structure for the group dimension.  You will then determine the various consolidation types for which you require the data from the sender systems. you want an overview of the functionality offered by the EC-CS component.1. and to prepare the data from individual subsidiaries for consolidated financial statements. © SAP AG 1999 (C) SAP AG AC665 4 .  Before transferring the data from the sender systems. and promote the global strategy of the group? © SAP AG 1999  Complex group structures have to be managed effectively. Business units that are close to the market have to be managed decentrally in order to leverage their full market potential. (C) SAP AG AC665 5 . increasing globalization requires decentralized group management for independent organizational units. At the same time.1. operate locally.5 Managing a Global Enterprise E F ? Enterprise Management USA D J MEX AR How can we manage the activities of our enterprise in various countries and markets.  The corporate group head office calculates key figures and defines goals for the strategic business entities. The company is no longer the basis of consolidation in all areas. external and internal accounting were usually separate (for example. This means that extremely flexible structures are necessary. Here. Nowadays. due to different valuation methods). non-monetary success factors also have an influence: the group has the relevant information earlier. New business concepts can be transferred from one unit to another.  Enterprise goals are increasingly being set "from the outside" . The enterprise is controlled according to internal enterprise structures that can be very detailed.by shareholders.6 Strategy: Decentralizing Responsibility America Europe/Africa Asia E Strategic Business Unit A USA J F D Targets Reports B MEX Enterprise Management AR C © SAP AG 1999 Global process optimization allows synergies (know-how. and no longer has to wait until effects are seen in P&L.1. core competencies) to be detected more quickly and used more efficiently in the group.  (C) SAP AG AC665 6 .  Formerly. since the requirements for legal consolidation also comprise a certain amount of information relevant to cost accounting. the goal is to unite external and internal accounting. for example. Enterprise management now has the task of implementing these goals internally. They report their individual financial statements to the group. which are used to compute the consolidated financial statement. profit centers Various data categories. IAS.1. integrated data can be transferred directly from the transaction systems to consolidation.  The standard system includes all international consolidation methods that are commonly used. budget. the consolidation areas can be profit centers or business areas.  In the R/3 System.. the consolidation units are the legally independent companies.7 Consolidation: Requirements  External Group Reporting / Consolidation  Reporting procedure in accordance with international reporting regulations: US GAAP. You can work with planned and budget values.  In management consolidation.. or carry out simulations. including actual data. forecast  Enterprise Key Figures  Calculation at various hierarchy levels © SAP AG 1999 Automatic creation of consolidated financial statements Flexible definition of consolidation methods In legal consolidation.    (C) SAP AG AC665 7 .  Internal Group Reporting / Consolidation   Management consolidation: business areas. human resources.  EC-CS comprises general consolidation functions for external reporting. the data basis can be divided up into data areas that are self-contained from a business point of view. Migration tools for migrating from FI-LC to EC-CS are available since March 2000. What is more. making it easier to determine planning data for the transaction units. Since this data is very heterogeneously structured. EC-CS consolidates 'financial data' from external and internal accounting. Data from the various partial information systems inside and outside of the enterprise (accounting.8 Enterprise Controlling Executive Board Management Cockpit Online Info Managers EC-EIS EC-CS EC-PCA EC-BP Financial Executives Enterprise Controlling Markets Transaction Applications © SAP AG 1999 NonSAP EC-EIS is the information system for senior management.  (C) SAP AG AC665 8 .1.  EC-BP: Actual/planned data. The transferred EC-CS data are presented in EC-EIS in joint reports. but also for the internal reporting structure in accordance with the internal management structure. and enterprise controlling) is grouped together to form a uniform dimension. General key figure reports in EC-EIS are complemented by EC-CS data in a highly aggregated form. as well as investment requirements can be transferred from the transaction applications in the group.  EC-PCA provides information on profitability and capital tie-up in units that are responsible for earnings (profit centers). EC-EIS imports the critical control values for enterprise controlling from the logistics and human resource applications. controlling.   (C) SAP AG AC665 9 . management cockpit and key figure systems help an enterprise to fulfil its strategic goals SAP SEM Stakeholder Relationship Corporate Management (SRM) Performance Monitor (CPM)   SRM: Integrates the communication with the stakeholders SEM-BCS: Automates the consolidation process BIC: Supports the automatic acquisition of external and internal business information Business Consolidation (BCS) Business Information Collection (BIC)   Business Planning & Simulation (BPS) BW © SAP AG 1999  Success is measured by the speed with which a business strategy can be realized. To optimize enterprise controlling SAP has developed the New Dimensions component Strategic Enterprise Management (SEM). Internal control of an enterprise can be carried out using value-oriented management principles.1. One of the main advantages of SAP SEM is the support it offers to strategic management processes by linking strategic and operational actions.9 Strategic Enterprise Management  BPS: Links strategic planning and business planning CPM: Balanced scorecards. Future Development SAP Consolidation Engine Value Based Management Functions R/3 OLTP Structures fixed partially flexible BW OLAP Structures EC-CS Consolidation © SAP AG 1999 SEM-BCS Business Consolidation  SAP SEM is an analytical application and is based on complex OLAP and Data Warehouse technology (OLAP: Online Analytical Processing). OLTP (Online Transactional Processing): The data is stored in tables and is. The SAP consolidation engines used by both EC-CS and SEM-BCS contains all the consolidation functions.10 SAP Consolidation . In R/3 the EC-CS structures.1. user definable. Alternatively. both fixed and flexible (user definable). reported data can in future be consolidated and analyzed in BW. to a certain extent. The data is contained in a multidimensional data cube (OLAP structure). The consolidated data can be made available in the OLTP system (R/3 EC-CS) or in BW (SEM-BCS). The Business Information Warehouse (BW) contains the business data. among other things the consolidated data. continue to be available and applicable in OLTP systems.    (C) SAP AG AC665 10 . drilldown to transaction SAP components  International rules for reporting (US-GAAP. planning  (C) SAP AG AC665 11 . File Upload MS Access Manual Posting Currency Translation Versions Simulation Restatement Profit and loss Statement 1 2 3 A Sales B 50 C Automatic Consolidation     Interunit Elimination Profit Elim. business areas.11 EC-CS: Functions Master Data Data Collection • FI Interface • CO Interface Interactive Excel • PC Data Transfer • Flex.1. IAS)  Versions for data categories. simulation. in Inventory Consolidation of Investments Reclassification Report Writer Report Painter Drilldown Reports Validation Monitor OK ERR © SAP AG 1999 Applications of EC-CS :  Company consolidation  Management consolidation  Characteristics:  Flexible hierarchies of consolidation units  SAP integration for companies. profit centers  Tools for online and offline data entry  Flexible interfaces for subsidiaries with systems made by other manufacturers  Powerful reporting functionality. company C20000. IDES Palo Alto (company code C100. IDES New York (company code C200. business area Pharma) sells and distributes the products manufactured by both companies.1. It comprises three enterprises:  The corporate head office. the results of which are sold to external companies and IDES Palo Alto. IDES Chicago carries out market research in the business area Services.12 Model Group: IDES SBU 4000 Chemicals DIV 43 Medical Substances DIV 41 Packaging Material SBU 8000 Services DIV 81 Pharma Market Research SBU 9900 Corporate and Others Medical Substances & Packaging Material Parent Company C10000 IDES Palo Alto SBU 6000 Pharma DIV 61 Analgesics DIV 62 Diabetical SBU 9900 Corporate and Others © SAP AG 1999 Subsidiary C30000 IDES Chicago Insulin Products for Distribution Medical Substances & Packaging Material Subsidiary C20000 IDES New York SBU 6000 Pharma DIV 62 Diabetical SBU 9900 Corporate and Others SBU: DIV:  Strategic Business Unit Division The IDES model group is based in the USA. company C10000. company C30000) operates in the business areas Chemicals and Services. The company supplies IDES Palo Alto and IDES New York with raw materials and packaging material from the business area Chemicals. business area Pharma) produces pharmaceuticals (analgesics and anti-diabetic agents) and delivers the antidiabetic agents to IDES New York for sale and distribution.   (C) SAP AG AC665 12 . IDES Chicago (company code C300. as well as payables and receivables can be eliminated at the group level. and by a node in the profit center hierarchy. on the one hand.1.  The strategic business unit Pharma consists of two divisions:  Painkillers.  (C) SAP AG AC665 13 . and Corporate and Others. Services. to create external reports according to international rules for reporting.  Since these business units supply each other. with the product lines Mono (products AS and PCM) Combo (compound preparations)  Diabetical products. partner relationships have to be assigned to the transaction applications so that internal business volume. with the product lines Human based insulin Animal based Insulin  The strategic business unit Pharma is represented by business area 6000. and on the other to compare values from internal and external dimensions with one another.13 Strategic Business Unit "Pharma" Analgesics Division Product Line MONO AS Asparax  PCM Paracetamol  Diabetical Division Product Line Human based Insulin Insulin  H-Insulin  Product Line COMBO Codeine Codeine & PCM  Azur Codeine & AS  Product Line Animal based Insulin  B-Insulin © SAP AG 1999 The IDES model group has divided its enterprises into the segments Pharma /Chemicals. This enables you. .1.. The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting. These can be stored and managed separately for each dimension. A dimension comprises at least one hierarchy structure. The consolidation units and groups are assigned hierarchically to a top consolidation group. three consolidation types are provided for use in integration with SAP transaction applications:  Company consolidation  Business area consolidation  Profit center consolidation These consolidation types are displayed in dimensions. (C) SAP AG AC665 14 . In EC-CS. The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. Chicago / Chemicals Chicago / Services .. A dimension can contain several hierarchies according to various statutory or internal requirements. For example.14 Enterprise Structure and Consolidation Type Consolidation Unit Palo Alto / Pharma . Dimensions allow various views of the consolidation data. Chicago New York / Pharma Consolidation Group New York Palo Alto H1 H2 Hierarchy 1: Companies Hierarchy 2: Business areas Dimension: Business area Consolidation Consolidation Group Pharma Chemicals Services Corporate Other Consolidation Unit © SAP AG 1999 Palo Alto / Pharma New York / Pharma       The internal structure of the enterprise is reflected in the organizational elements of external accounting (for a segment report procedure according to international rules). for a business area consolidation dimension:  Reflect the business areas with reference to the legal companies  Breakdown of the group according to group areas.. 1.15 Profit Center Consolidation Consolidated data SEG A Pharma & Chemicals SBU Chemicals DIV Medical Substances Acetyl H-Insulin DIV Analgesics SBU Pharma SEG B Services SEG C Corporate and Others Strategic Business Unit DIV Diabetical Products Division Mono Combo H-Insulin A-Insulin Product Line Paracetamol AS PCM Insulin Palo Alto Insulin H-Insulin Product EC-CS Consolidation Unit New York Insulin © SAP AG 1999 If you use consolidation with integration to general ledger or profit center accounting, you generate the consolidation units and groups from the organizational units of the respective operating applications.  The consolidation groups are defined by the profit centers and hierarchy nodes, the consolidation unit is built by the profit center and the company.  (C) SAP AG AC665 15 1.16 Data Stream CO-PA COHR EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data Consolidation Unit = Company / Business Area PCA Data CU = Company / Profit Center EC-PCA Profit Center Accounting Profit Center, Company Code FI-GL General Ledger SD MM Bal. Sheet Acct P&L Accounts and CO Object  Assets  Receivables  Payables  WIP  Inventory  Other. CO Controlling Cost Center Order Project © SAP AG 1999 EC-CS consolidates on the basis of the organizational units company, business area, and profit center and is optimally integrated with these systems.  If the transaction applications and the Consolidation system are all in the same client of the same system, data can be transferred to the Consolidation system online (in realtime).  Additionally, data can be transferred by periodic extract or rollup from non-SAP systems.  (C) SAP AG AC665 16 1.17 Performance Key Figures in the Model Group Enterprise Strategic Business Unit Consolidated data CF Total Cash Flow ROCE Return on Capital Employed EBITDA Earnings before Interest ... and others: Sales, Profit Chemicals Pharma ... Division Product Line Product Diabetical Mono AS Analgesics Combo ROA Return on Operating Asset EBITDA Earnings before Interest ... CF Transaction Cash Flow and others: Sales, OPEX PCM © SAP AG 1999 For internal group reporting consolidation can be executed on different levels of the company. You can calculate key figures on different internal levels. They are used for internal/external evaluation of companies and for managing the company.  For example, on product line level, you can define a profit center as an independent area of responsibility and analyze its profitability by key figures. Key figures can be used both as targets and as incentives.  Consolidated data are particularly suitable for performance figures because of its aggregated data.   (C) SAP AG AC665 17 1.18 Group Control: Procedures and Infrastructure Unit Summary You are now able to:  List the reasons for using consolidation in your corporate group  List the different types of consolidation  List and distinguish between the organizational structures of the EC-CS component  Use the sessions parameters to select the consolidation dimension © SAP AG 1999 (C) SAP AG AC665 18 1.19Exercise Data Data in Training System ## = your course group number Organizational Elements Company Name C10000 IDES Palo Alto C20000 IDES New York C30000 IDES Chicago Company code Name C100 IDES Palo Alto C200 IDES New York C300 IDES Chicago Business area Name 4000 Chemicals 6000 Pharma 8000 Services 9900 Corporate/Other Functional areas 0100 0110 0120 0130 0300 0400 0500 0980 Controlling area Chart of Accounts (C) SAP AG Data in IDES System Production Direct costs Overhead costs, production Credit, production Sales Administration Research & development Accrued costs (not in income statement) C001 - for all course groups CAUS C001 - EC North America CAUS AC665 19 Group chart of accounts CONS CONS (C) SAP AG AC665 20 . 14  144054 This example applies to all G/L accounts. Receivables. affiliated companies Business area adjustment account 144098 164000 Payables. chart of accounts Name (C) SAP AG 4000## Gr. Consumption of raw materials Net sales. 14  144000 Receivables. domestic Group chart of accounts EC-CS Cons. ARE Balance Sheet. affiliated companies Business area adjustment account 164098 802000 400000 400054 This example applies to all primary cost elements. ## Example: 4000## 40 + your group no. affiliated companies Business area adjustment account 1449## Payables. COGS 400000 802000 CONS 01 US. ARE Balance Sheet. ## CONS 01 US. affiliated companies Business area adjustment account 1649## Net sales. COGS AC665 21 . affiliated companies 1440## Gr. ## 4000## Gr.Account assignment elements G/L account Name Example: 1440## 40 + your group no. ## Receivables. affiliated companies Consumption of raw materials Primary Cost Element 8020## Gr. affiliated companies 1640## Gr. ## Payables. ## 8020## Gr. affiliated companies Business area adjustment account 210100 Net sales. affiliated companies 3012## Consumption of raw materials 3101## Standard Hierarchy CUSA Standard hierarchy of controlling area C001 for all course groups Receivables affiliated companies 130100 Receivables. affiliated companies Business area adjustment account 130100 Payables. 14  130154 This example applies to all group charts/items in consolidation chart of accounts 01. affiliated companies 2101## Payables. affiliated companies 301200 Consumption of raw materials 310100 CUSA Standard hierarchy of controlling area C001 (C) SAP AG AC665 22 . affiliated companies Business area adjustment account 2101## Net sales. Group account Name Receivables affiliated companies 1301## Receivables. affiliated companies Business area adjustment account 1301## Payables. affiliated companies 210100 Payables.Group account Group chart of accounts is identical to item in consolidation chart 01 Example: 1301## 40 + your group no. Cost center Name C100C6111M Manufacturing Product Acetyl C100C6112M Manufacturing Product Paracetamol C100C6111A Administration Product AS C100C6112A Administration Product PCM C300C4311M Manufacturing Product Acetyl C300C4312M Manufacturing Product Paracetamol C300C4311A Administration Product Acetyl C300C4312A Administration Product Paracetamol Profit Center Standard Hierarchy Profit Center Name C-Top-1 North America C-Top-1 North America C-BA-6-BS B/S Business Unit PHARMA C6111 AS C6112 PCM C-BA-4-BS B/S Business Unit CHEMIE C4311 Acetyl C4312 Paracetamol C9902 Administration (C) SAP AG AC665 23 . Dimension Name A2 through T2 Business area consolidation Gr## Example: A2: Gr01 B2: Gr02 J2: Gr10 A3 through T3 Profit center consolidation Gr## 02 Business area consolidation 03 Profit center consolidation (C) SAP AG AC665 24 Worksheet for exercise data: Group_____ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (C) SAP AG AC665 25 Konzernsteuerung: Verfahren und Infrastruktur Exercises Unit: Group Control: Procedures and Infrastructure Topic: Positioning At the conclusion of these exercises, you will be able to:   Name the strategic business units in the IDES model group Describe the organizational units of consolidation Your enterprise comprises internal and external organizational structures. You should adapt these structures adequately to match SAP organizational units. 1-1 Name the strategic business units of the IDES model group. ______________________________________________________________ ______________________________________________________________ 1-2 Complete the sentences: 1-2.1 A dimension defines a particular ______________________ of group reporting for example, company consolidation, business area consolidation, or profit center consolidation. 1-2.2 The business object ___________________ is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. 1-2.3 The business object consolidation group is an arbitrary grouping of several ________________________ for the purpose of consolidation and reporting. (C) SAP AG AC665 26 1-2.4 The consolidation units for the profit center consolidation area generated from _________________________ and _______________________. 1-2.5 Which additional consolidation groups are generated in profit center consolidation that are not generated in business area consolidation? (C) SAP AG AC665 27 1.20 Group Control-Solutions Unit: Group Control: Procedures and Infrastructure Topic: Positioning 1-1 Name the strategic business units of the IDES model group. Chemicals, Pharma, Services, Corporate and Others 1-2 Complete the sentences: 1-2.1 A dimension defines a specific characteristic of group reporting - for example, company consolidation, business area consolidation, or profit center consolidation. 1-2.2 The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out. 1-2.3 The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting. 1-2.4 The consolidation units for the profit center consolidation area generated from profit centers and companies. 1-2.5 Which additional consolidation groups are generated in profit center consolidation as opposed to business area consolidation? Consolidation groups that correspond to the profit center hierarchy are generated. (C) SAP AG AC665 28 2 Integrated Data Transfer: FI Contents  EC-CS: Data Structures  FI: Terms and Assignments © SAP AG 1999 (C) SAP AG AC665 1 . and link these to the consolidation structures  Name various data transfer methods and their functions  Prepare data transfers for legal or management consolidation. © SAP AG 1999 (C) SAP AG AC665 2 .2 Integrated Data Transfer: FI Unit Objectives At the conclusion of this unit. you will be able to:  Describe EC-CS master data and its function  Name the enterprise structures in the transaction system.2. 3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 .2. and the consolidation units and groups will be generated in the Consolidation system. in the sender system. you will prepare the structures for transferring the data to the Consolidation system. © SAP AG 1999 (C) SAP AG AC665 4 .4 Integrated Data Transfer: FI Business Scenario  The company puts you in charge of preparing external and internal consolidation types. you will have to analyze the various integration options.  Next. and acquire an overview of the various upstream components.  Before you can transfer data from the sender system to the Consolidation system. the enterprise structure of the upstream components will be linked with those of the Consolidation system.2.  You then decide how you will supply the consolidation types with values from the sender systems. When you do this. and choose the appropriate data transfer method. two types of master data are of primary importance:  The organizational units themselves. The aim of consolidation is to show only the external relationships.  (C) SAP AG AC665 5 .. Statistical information and key figures can also be managed using financial statement items. income statements. Its use is not merely confined to variables from financial statements.2. FS item category. Cost Center. postings. and to eliminate internal connections and processes.  Against this background. In the Consolidation system.5 Integration of Master Data  Sender System FI  Companies  Business Areas  Profit Center  Consolidation System  Dimension  Version  Ledger ECCS  Organizational Units: .) © SAP AG 1999 Consolidation is centered on grouping together data from individual elements of an organization to form a unified whole. or appropriation of retained earnings that are relevant to financial accounting. and breakdown category.  Subitem: A subitem is an optional additional account assignment. together with their structure.Consolidation Hierarchy  Consolidation Chart of Accounts. financial statement items for fixed assets may have to be additionally assigned with transaction types so that all changes in the financial statement items are shown from the opening to the closing balance. Account Assignments  Subitems (Region. Financial Statement Items  Accounts  Secondary Cost Elements  Add. where-applied indicator. and reporting within consolidation. For example.  The financial statement item is the basis of entries. whose structure determines the content of the data. Functional Area. debit/credit sign.Consolidation Groups .Consolidation Units .. their properties attributes are determined on the basis of the FS item type. and  The financial statement items. 6 EC-CS: Data Structures © SAP AG 1999 (C) SAP AG AC665 6 .2. ... Palo Alto Chicago New York Group Dimension: Hierarchy of Companies and Business Areas © SAP AG 1999 The company forms the basis for generating consolidation units..7 Organizational Structures Strategic Business Unit: Business Area Consolidation Unit Consolidation Group Legal Business Unit: Company Palo Alto / Pharma .2. New York / Pharma . Chicago / Chemicals Chicago / Services .   (C) SAP AG AC665 7 .  The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting. The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out.  The relationships between the business areas and the companies are represented in a hierarchy... or profit center consolidation. business area consolidation. The consolidation units and groups are assigned hierarchically to a top consolidation group. Chicago New York / Pharma CU Palo Alto New York Dimension: Business Area Consolidation CU Pharma H1 Hierarchy H2 Companies Business Areas Corporate/Other Chemicals Services CG Palo Alto / Pharma © SAP AG 1999 New York / Pharma      CU: Consolidation Unit CG: Consolidation Group A dimension defines a specific characteristic of group reporting .8 Consolidation Dimension and Hierarchies CG Palo Alto / Pharma . For example.for example. for a "business area consolidation" dimension:  Reflect the business areas with reference to the legal companies  Break down the group according to group areas. company consolidation.. Chicago / Chemicals Chicago / Services . the data for various dimensions can be evaluated together.2. In reports... (C) SAP AG AC665 8 .. A dimension can contain several hierarchies according to various statutory or internal requirements. Consolidation charts of accounts and consolidation versions are defined for all dimensions. Organizational units and control data are defined according to the dimension. A dimension comprises at least one hierarchy structure. or stock on hand. receivables.  (C) SAP AG AC665 9 . or can only be indirectly assigned manually. as well as all the financial statement items in an income statement) can be assigned directly to the business area.2. cannot be assigned. or the consolidation business area.  For the purposes of consolidation. equity. on the other hand. The consolidation unit is derived on the basis of the combination of the legal entity company and the business area. payables.  The business transactions are transferred online or periodically to the consolidation units. The balance sheet items bank. particular business areas can be grouped together into consolidation business areas. and taxes.9 Business Area Consolidation Automatic Assignment of Business Areas Group H2 Consolidation Unit Pharma Chemicals Services Corporate/ Other Consolidation Unit Palo Alto / Pharma New York / Pharma Chicago / Services Transferred Assets Receivables Payables Balances P&L Company XY / Corporate / Other Bank Equity Taxes © SAP AG 1999 All essential balance sheet items (such as transferred assets. plan. data is not redundant). and budget data) can be maintained and consolidated. tax law. The various balance sheets and profit and loss statements are generated in individual financial statements by means of different assignments to the accounts in the financial statement structures. US-GAAP Elim. This enables you to define various consolidation versions that differ only in one or a few areas. EU Elim. or the group.  (C) SAP AG AC665 10 .  In consolidation. for example on the basis of different exchange rates or changes in the group structure. This means that various data categories (such as actual. The valuation results from individual valuations of subsidiary ledgers are posted in summarized form to separate accounts in Financial Accounting.  You can also carry out simulations.  A consolidation version is composed of special versions. Group Totals Database ECMCT © SAP AG 1999 Inventory valuations can differ depending on whether they are carried out from the point of view of local trade law. This enables you to maintain consolidated financial statements in parallel according to various statutory accounting requirements.2. Group US-GAAP Version Local Adj. the versions serve to maintain separate datasets in the consolidation database so that alternative consolidations can be managed.10 Versions FIFIFIAP AP FIFIFIAA AA FIFIFIAR AR  Receivables / Payables (Foreign Currency Valuation)  Tangible Fixed Assets (Depreciations)  Material  Open (Long-Term Production) Stocks Orders PS PS MM MM CO CO Tr a d (l oc e L aw al ) Ta x L (l oc aw al ) Boo k Co depr ns ec EU ol ida i ati on t ed dat a Tr a de Gr o L aw u US p -GA AP ECECECCS CS IAS Version Local Adj. These are methods and tasks that cover the various areas of consolidation. but otherwise refer to the same special version (that is. This ledger is not for use in a live customer system. you also need additional ledgers.  SAP delivers the standard ledger "1C" for consolidation. in LC Value Quantities in GC: USD Ledger EU Ledger EU Cons. in LC Value Quantities in GC: EURO © SAP AG 1999 The ledger is an area of the ECMCT totals table.  The data in the ECMCT totals table can be maintained in three currencies:  Transaction currency  Currency of the consolidation unit  Ledger currency The ledger currency specifies the currency of the consolidation group. for example. since each ledger is always maintained in one currency. you require a ledger with the ledger currency USD. If. you want to consolidate one consolidation group in USD and another consolidation group in EURO. and another ledger with the ledger currency EURO.. Unit FS item TC .2.. Please create a new ledger (using ledger "1C" as a copy template). It contains specifications for the data records that you work with during a terminal session. Val. Unit FS item TC . Val.11 Ledger and Currency ECMCT Totals Database $ Ledger US Ledger US Cons..  (C) SAP AG AC665 11 .  If you consolidate consolidation groups in different currencies.. It then copies the value of the sender field to the subitem. and determines the breakdown according to additional account assignments. appr. posting. The system reads the breakdown category from the master data of the financial statement item. CO External Charts of Accounts © SAP AG 1999 EC-CS EC-       Consolidation is equipped with its own consolidation chart of accounts. appr. Financial statement items are of central importance in data transfer.12 Consolidation Chart of Accounts FI Dimension Company Consolidation Dimension Business Area Consolidation Dimension Profit Center Consolidation G/L Account Cons chart German GAAP. the system converts the code of the partner assignment in the transaction data to the partner unit. you can define one consolidation chart of accounts to accommodate the requirements of the particular legal reporting rules. If an item is broken down by partner.. and reporting. For example. and one to meet internal requirements. (C) SAP AG AC665 12 .2.. The consolidation chart of accounts is a systematically structured directory of FS items that belong together. The consolidation chart of accounts can be generated from these structures automatically. the financial statement items of a financial statement version. The grouping is based on external and/or internal requirements. the system determines the sender field of the transaction data structures on the basis of the subitem category. in income statement Cons chart German GAAP. which is not linked to the charts of accounts in FI. Within a consolidation dimension. If an item is broken down by subitems. or to the transaction accounts (if these are unique). in balance sheet Chart: US GAAP Transaction Chart of Accounts Secondary Cost Elements Cons chart. you can use several consolidation charts of accounts to generate consolidated financial statements in parallel. The consolidation items usually correspond to the group accounts. The additional account assignments to be managed for each financial statement item are specified via the breakdown category. and long descriptive texts for each financial statement item..2. The following financial statement items types are available: value items.13 Chart and Breakdown Category 01 Consolidation Chart of Accounts Value Item Totals Item Totals Item Texts Cons C/A FS Item FS Item Type Debit/Credit Sign Where-Applied Indicator 01 Assets 1 + A . It identifies a value or quantity specification according to cause. and processing in evaluations.. Specification Breakdown Category 1000 Subitem © SAP AG 1999 Partner Currency Year of Acquisition       The financial statement item is the basis of account assignment in the Consolidation system.  A fixed allocation of additional account assignments may be required (for example. and text items. the breakdown category '1000' for asset transactions defines a transaction type as a necessary subassignment. for example to mark financial statement items as key figure items. FS Item Category Contra Item Consolidation Item Appropriation Item . You can save short. the specification of the partner unit in receivable and payables items that is required to carry out an elimination of IU payables and receivables)... medium. liabilities and owner's equity. totals items. Where-applied indicator: The where-applied indicator is used to specify whether the financial statement item should belong to assets. The FS item category can be freely defined by the user. and can be differentiated by further additional account assignments. income statements. The FS item type gives a concrete specification of the attributes of a financial statement item with respect to entries. updates. (C) SAP AG AC665 13 . or statistical items.  In the above example. or customer country) for each subitem category. functional area. It may. be necessary to additionally assign financial statement items in transferred assets with different transaction types so that all changes to the items are shown from the opening to the closing balance. Only one subitem category can be assigned to a particular financial statement item in EC-CS. for example. you can define a sender field (transaction type. If the data is imported to EC-CS from FI or EC-PCA. With the help of custom characteristics.  The Consolidation system has 6 flexible account assignments that can be supplied from the Accounting system: transaction type. in order to distinguish the transaction types in transferred assets from those in equity. specify that the appropriate fields are ready for input.2. In the transaction applications. business area. you can define your own additional subitem categories and subitems. and G/L account. EC-CS EC- Fixed asset Net Sales Transaction type Country Divestiture Germany Consolidated sales revenue by customer regions (market) Expense Functional area Sales Consolidated income statement by cost of sales accounting © SAP AG 1999 Subitems enable you to break down FS item values further.14 Subitems Business area FI-GL account Cost center Transaction type Functional area Customer's country FI Accounting document FS Item Subitem Category Subitem EC-PCA EC- G/L account The use of subitems depends on the FS item Subitem category Subitem FS item.  (C) SAP AG AC665 14 . for example. In an integrated SAP environment. you can define a sender field (transaction type. cost center.  In an integrated SAP environment. or customer country) for each subitem category. Default subitems are provided for each of the subitem categories in the consolidation charts of accounts supplied with the system. for example. country of customer. the original account assignments are converted to subitems of the same name. for example.  The subitems are grouped into subitem categories. the global parameters are displayed in a status line at the top of the particular screen. Thus. depends on the consolidation chart of accounts. and sometimes cannot be changed on the screen in question. the information from the global parameters is either proposed as a default by functions.  In Customizing. In presentations of consolidation results.15 Global Session Parameters ConsGroups FS Items ECCS Data Monitor ConsMonitor Infosystem Parameters Parameters Global Parameters Dimension Version Year Period Cons C/A Ledger 01 100 YYYY MMM 01 US Legal Actual data US Chart USD © SAP AG 1999 The global parameters are used to save important EC-CS settings that typically remain constant during a system session. maintaining financial statement items. and remain available after you log off and log on again. These settings can be changed at any time.  (C) SAP AG AC665 15 . The settings to be saved are specified by the user.2. as well as in Customizing.  At startup. for example. a colored note indicates which parameter currently affects maintenance. but does not depend on the current version. 16 Financial Accounting  Data Structures  Assignments © SAP AG 1999 (C) SAP AG AC665 16 .2. business area balance sheets can be activated for each company code in FI. © SAP AG 1999       The data source for EC-CS is the FI general ledger. the relevant trading partner unit must be stored in the document.. To transfer the data from the transaction sender system to the receiver system. Posting date Organizational units Company code Business area . You can subdivide a company code into business areas to generate internal individual financial statements using freely selected areas of responsibility within a company. a consolidation business area must be assigned from the receiver system.17 Preparation in FI EC-CS: Data Realtime update for consolidation types • Company • Business area Customizing Definition of active data streams: Dimension /Cons C/A / Version Master data consolidation units Definition of global organizational units Rules for ID combination (per consolidation type) Assignment of charts of accounts to cons C/A Assignment of accounts FS items Master data subitem category Custom characteristics Dimension Version Cons chart/accts Ledger Fiscal year/ Period Consolidation unit FS item FI Doc. If desired. you can create functional areas in FI so that the income statement can be grouped according to the requirements of cost of sales accounting. such as the assignment of a company code to a company. you will make assignments tailored to the receiver system. and the company code is the organizational unit. This is necessary for the subsequent interunit elimination. In business area consolidation..2. In accounting transactions between business units in the enterprise. These can be assignments that are equally binding for all consolidation types. The FI company code must be assigned to a chart of accounts and a company. (C) SAP AG AC665 17 . In EC-CS. If desired. Accounts Add. acct assignments TTy Country Region Subassignment . the consolidation units are generated from the business units (companies and/or business areas)... 18 IMG Settings: Different Systems Preparation EC-CS Consolidation EC- System Preparing Consolidation • Assign integrated cons types to the dimensions • Companies • Consolidation Business Area Transaction system Create or import global master data Define combinations of company codes/business areas Transfer combinations of company codes/business areas Enter chart of accounts Assign operational accounts Prepare account assignments: • Consolidation transaction type • Consolidation business area • Trading partner company • Group Chart of Accounts • Consolidation Transaction Type © SAP AG 1999 If the consolidation and the transaction applications are in different systems or clients.  The same applies for the structure of organizational units for profit center consolidation. by download.  (C) SAP AG AC665 18 . fiscal year variants and business areas and passes these on to consolidation. the system reads the valid combinations of company codes. so that the transaction data can be transferred to the consolidation system EC-CS. Consequently in consolidation. the consolidation units and groups are automatically generated for the business area consolidation.  In the operational applications.2. the group structure must be known in the operational applications. A segment is any business segment in the enterprise that can be isolated. A company can comprise one or more company codes. The settings that you make at this level are available to all company codes. The business area is an organizational unit of external accounting that corresponds to a limited business segment or area of responsibility in the enterprise to which changes in value entered in financial accounting can be assigned. Business Area 4000 6000 8000 9900 X X X X X X X © SAP AG 1999       The client is the highest logical level in the SAP system hierarchy.2.. Each company code represents a unit that manages its financial statements independently.. The above example uses the following organizational units: Companies: Business Areas: C10000: IDES Palo Alto 4000: Chemicals C20000: IDES New York 6000: Pharma C30000: IDES Chicago 8000: Services 9900: Corporate and Others (C) SAP AG AC665 19 . for example). Business areas primarily serve enterprise-external segment reporting. The company is the smallest organizational unit for which individual financial statements have to be created according to the trade regulations in question. This is also the name of the corresponding logical system in which you work.19 FI: Organizational Elements Client Company C10000 Company Code C100 C20000 C200 C30000 C300 --. which extends beyond company codes to the significant business segments of the enterprise (product lines. This is the level at which the legally required financial statements are created. ... Company . This means that data from company codes to which a company has been assigned can be transferred to the appropriate integrated consolidation unit. consolidation units are generated automatically from these FI companies. as well as internal trading partners whose transaction financial accounting is carried out in other systems (SAP system or non-SAP systems).2... Company Code C100 Company Code C200 Company Code . The data to be consolidated can either be stored in the transaction system or distributed over various systems. data entry is carried out using entry forms.. You can portray one or more of the client's company codes. you have to assign the company codes of the transaction system to the companies of the group..Company Client 001 . The intercompany trading partners on other SAP systems as well as those on non-SAP systems must be represented by companies in FI.. integration techniques can be used to copy data from other SAP Systems to consolidation units.20 Assignment: Company Code . For the purpose of integrated data transfer. It makes no difference if the systems involved are SAP R/3 Systems or non-SAP systems. or MS Access. In EC-CS. Otherwise. flexible upload.. (C) SAP AG AC665 20 . Company C10000 Company C20000 Company . NonNonSAP Systems FI Chart of Accounts CAUS Chart of Accounts . ECECCS © SAP AG 1999       Companies are the global organizational structures in FI. In a similar way.. 21 Additional Account Assignment: Business Area MM Materials Plant Valuation Area Material Division SD Sales and Delivery Sales Organization Distribution Channel PS Projects Project Business Area FI-AA Fixed Assets FIAsset Cost center Order Investment Measure CO .  Partner-specific information from the combination of company/business area forms the basis for integrated business area consolidation. If the additional account assignment is not unique. however. enabling revenue and expense elimination to be carried out in the Consolidation system.  The posting lines of the accounting business transactions are provided with a trading partner business area assignment. this allows you to derive the business areas and the trading partner business areas automatically. master data is assigned to business areas. the business area is derived when the data is posted. the business area is adjusted at the end of the period. the relationships between purchase and sales orders are also tracked.2.Controlling © SAP AG 1999 In many areas of the SAP System. In most cases.  In most business transactions.  (C) SAP AG AC665 21 . In the MM component. 2. The costs of procurement. Both CO objects are assigned to a company code.  When procurement and manufacturing costs are posted to the fixed asset. and the depreciation are posted to the business area. the business area and the profit center are then derived from the cost center or the order. goods manufactured. and a profit center when business area balance sheets or profit center accounting are activated. a business area. The periodic depreciations are also posted to the business area or the profit center.. the business area field in the master records for fixed assets automatically becomes a required entry field..22 Assignments: Asset Master Record FI-AA FIAsset 1 CO Time-dependent Data TimeTime-dependent Business Area Cost Center Order 4000 C100C4311M Cost Center • • • Company Code Business Area 4000 Profit Center C100C4311M C100 4000 C4311 ########## C100 4000 C4311 Order • • • Company Code Business Area Profit Center Depreciation Areas Book depreciation . an asset can be assigned either to a cost center or to an order. regardless of the update control setting of the screen layout control for the asset class.  (C) SAP AG AC665 22 . Costing © SAP AG 1999 Example of how the business area is derived: If business area balance sheets are activated in FI.  For cost accounting purposes. and can be used in consolidation for elimination of IU payables and receivables. The relevant trading partner number is stored in the customer/vendor master record. The business area is usually derived from the MM/SD transactions.23 Trading Partner Information: FI     G/L account for interunit business transactions  Trading Partner in Master Record  Customer  Vendor  G/L account  Additional Account Assignment: Trading Partner in Document  Business Area . To allow the trading partner business areas to be entered for G/L account postings. the company number is copied to the line item. During posting. For business area consolidation. When postings are made to this account. you also need a reference in FI to the trading partner business area with which you have a business relationship. as well as in revenue and expense elimination. as well as for transactions in FI-AP/-AR.Partner Business Area © SAP AG 1999      Identifying the group-internal posting procedures between affiliated enterprises is an important way of preparing data in individual financial statements. the "Trading partner business area" field in the field status group of the FI reconciliation account must be set to optional entry. this field has to be set to "Optional entry" in the appropriate account group of the master data ("General data. To allow entries in the "Trading partner" field.2. the trading partner can also be set manually in the document. (C) SAP AG AC665 23 . SAP stores the "Sender-Receiver" relationship at the document level in Financial Accounting. control" field status group). The trading partner can also be stored in the G/L account. enabling the elimination functions to be carried out in consolidation. it is then copied to the line item. Alternatively. The balances are handled in consolidation with the additional account assignment trading partner. 2.24 Preparation in FI: Document Type  Document Type: Controls posting to line item  1 Customer / 1 Vendor  Trading partner company can be assigned  Not intercompany © SAP AG 1999 The trading partner in each document must be uniform so that the partner assignment can be duplicated in the document when company internal transactions are posted. All the customers in a business transaction must, therefore, come from one company so that the sales revenue line is assigned a uniform trading partner. Consequently, you have to set the document type parameters to prevent intercompany postings.  However, there are also business transactions in which it is desirable to assign more than one trading partner in postings. In this case, the trading partner for the document is no longer uniform, and the trading partner is, therefore, not duplicated to the offsetting entries. This particularly applies to postings that are not sales relevant, such as postings of automatic payments. Postings to cash accounts are generally not relevant to consolidation, and thus do not require a partner assignment. For these business transactions, you can set the document type to permit intercompany postings.  "Enter trading partner" indicator : For G/L account postings (without direct reference to item account), document types that permit manual assignment to the trading partner may be required. Company internal transfer postings in P&L are an example of this type of posting.  (C) SAP AG AC665 24 2.25 Company Code Assignment: Business Area Organizational Units: Local Global Company Code IDES Palo Alto IDES New York IDES Chicago Business Area Pharma Corporate Pharma Corporate Chemicals Services Corporate Default Consolidation Business Area FI IDES Palo Alto Business Area Pharma  XY ...... Company Palo Alto EC-CS EC- Consolidation Unit: XY/Palo Alto © SAP AG 1999 While, in FI, the business areas are valid for all the company codes, during preparation for consolidation they are assigned to specific company codes.  In realtime updates, the data stream for business area consolidation uses the document line item to determine the consolidation unit. Specify the combinations of company codes and business areas that can occur in postings in the transaction system. The system uses these to derive the combination of companies and consolidation groups.  You can define an account assignment default for business area consolidation. If business area consolidation is not included in the document, the system accesses a default that you have defined. However, you can only store one default per company code.  Alternative: You can check the assignment of business areas to company codes when the FI posting is made. You specify this in the data transfer settings for business area consolidation.  (C) SAP AG AC665 25 2.26 Consolidation Business Area NonNonSAP EC-CS EC- Consolidation Type: Business Area Consolidation Company 100000/ Company Code 1000 FI Group Consolidation Business Area AB Business Area AAAA Business Area BBBB ... Receiver System YYY: contains global characteristics © SAP AG 1999 Sender System XXX: contains local and global characteristics The consolidation business areas are business areas that are used centrally in the group. These global characteristics are defined by the parent company.  All systems that provide reports assign their local business area to the consolidation business areas. You must assign the business areas of the transaction system to the group's consolidation business areas. The assignment can be 1:1 or n:1.  The consolidation units are formed using the combination of companies and consolidation business areas, which are the basis for business area consolidation.  (C) SAP AG AC665 26 2.27 Preparation for Business Area Consolidation        © SAP AG 1999 Activate business area balance sheets Maintain field status groups for G/L accounts G/L Account: Balance sheet for business area clearing Assign accounts for adjustments Maintain document type for business area adjustment Important for subsequent assignments of business area and partner business area using the balance sheet adjustment program Reconcile balances > Reconcile affiliates (see Execute Consolidation of Investments) Execute balance sheet adjustments Check that the business area balance sheets are activated in the global definition of the company code. Depending on the objective of business area consolidation, when the business transactions are entered, it may be desirable to request that the assignments for the business area and the trading partner areas be as complete as possible.  For the G/L accounts, specify whether the business areas should be entered as optional or required entries. In manual consolidation of business areas or partner business areas, you make this setting using the field status group in the G/L account. If no assignment is made for accounts for which you have set an optional entry, the transaction is assigned to business area "Space". On the closing key date, the business areas have to be broken down manually.  At period end with the reconciliation of affiliated companies, check whether the payables/receivables are assigned to the corresponding partners.  Breakdowns or adjustments according to business area sre carried out. If business area consolidation is also activated, distribution is carried out according to the partner business area. For the document that is to be posted, you have to store the corresponding accounts and a document type in FI.   (C) SAP AG AC665 27 2.28 Business Area Adjustment FI: Incoming Invoice Account Vendor Expense 1 Expense 2 Business Area 0001 0002 Partner BArea 0003 0003 Debit 400 600 Credit 1000 Business Area Adjustment Clear. Acct. BArea Adjustment 0001 0002 BArea: Business Area © SAP AG 1999 Partner BArea 0003 Debit 400 Credit 400 600 0003 600      If, when posting to an expense account, you also assign a cost center to an account (and this cost center is assigned to a business area), then the business area is also assigned automatically. If the business area in the revenue/expense line is uniform, it is automatically copied to the receivables/payables line. In our example, one document contains several expense accounts that were posted in various business areas. The breakdown of the business areas is, therefore, not uniform. Consequently, the business areas are not copied to the automatically generated line items (payables, receivables, tax). This assignment is made when the financial statement is adjusted and posted to special adjustment accounts. In an FI document, an open item cannot have a partner business area. When there are transactions between affiliated enterprises, the business area is set during adjustment. During adjustment a new document is generated with a partner business area in the receivables/payables line. A business area clearing account is used for this purpose. The partner business area normally has to be set manually for realtime updates in FI. (C) SAP AG AC665 28  (C) SAP AG AC665 29 . Transfer . To do this..  The consolidation transaction type can be defined as a required entry field via the field status group of the G/L account.  You can define validations that can be used to ensure that only transaction types belonging to a special group can be assigned to particular accounts.  The consolidation transaction types provided in the standard SAP system are already assigned to the asset transaction types in a way that allows a group asset history sheet to be generated...29 Transaction Types FI-AA FI- Asset History Sheet Start of Acquisit Retire Year ion ment . for example). you define corresponding validation rules at the document line item level. Transaction types are the basis for assigning a business transaction to a column of the equity/assets list. the transaction type classifies the business transaction (acquisition. In FI/FI-AA. If you have defined your own asset transaction types/consolidation transaction types.2. retirement. . or correct the assignments accordingly. or changed those provided in the system. . transaction types show the changes made to financial statement items. End of Year Transaction Type ### EC-CS EC-   Assign transaction types FI-AA: EC-CS  Transaction types = required input  Account validation: transaction Type © SAP AG 1999 In EC-CS. transfer to equity account/transferred assets.. assign the transaction types to the corresponding consolidation transaction types.  (C) SAP AG AC665 30 . The company expenses that cannot be directly allocated to sales are distributed to functional areas. and not that of the original account allocation. In cost of sales accounting. marketing. In P&L. thus reflecting the economic purpose of the expenses.2. the functional area that is displayed is the one following CO allocation. If a particular cost center type is posted to a cost center in FI.  If necessary.  Substitution rule: In the SAP standard system. the following trigger points are defined for the FI component: 0005 (cost of sales accounting). production. a change of functional area in the form of debit and credit can be taken into consideration in allocations of overhead costs.30 Preparation in FI: Functional Areas FI Invoice Substitution Rule IF Cost Center Category 'A' THEN Functional Area 400 FI Posting Document Functional Area 400 Administration P&L Cost Center 1 (Cost Center Category 'A') EC-CS EC- using cost of sales accounting © SAP AG 1999 The functional area is required to generate a profit and loss statement in Financial Accounting using the cost of sales accounting procedure. an additional account assignment is generated to the appropriate functional area. Substitution is used to copy the functional area to the documents of financial and cost accounting. or research and development are used to show what has caused costs to be incurred in the enterprise. the functional groups administration. The reconciliation ledger contains the information required to make postings to the relevant accounts in Financial Accounting. sales. clearing accounts are defined and assigned to the business transactions (transfer postings.2. assessments. or they will have to be assigned now.  The clearing accounts have either already been assigned in CO Customizing.  You can create a separate document type for posting from the reconciliation ledger. and so on) or to object classes.31 Preparations: Controlling Transfer costs!!! CO Cost Center 10 (Company Code C100) Cost Center 20 (Company Code C200) Preparation: Reconciliation Ledger  Specify account determination for reconciliation postings  Maintain document type © SAP AG 1999 For FI reconciliation postings in CO allocations between company codes / business areas. allocations.  (C) SAP AG AC665 31 . products.32 Preparations: Materials Management      Identify companies in the same client Assign division/valuation area to business area Maintain field selection group for division Specify FI account for price differences Maintain CO account assignment for price differences © SAP AG 1999 Select the companies that are maintained in the same client of your system. The assigned business area is copied to this division in all material stock postings. the combinations of division and valuation area are assigned to a business area. The "Read Purchase Orders/Sales Orders" indicator is used to determine the partner business area and partner profit center in Logistics applications. the "division" field should be set as a required entry when the material masters are maintained. and services. the default setting for the "division" field in the field selection group is 090. To ensure that the required entry does not apply to all the fields in the group. a number of other fields are assigned to this group. In the SAP standard system.  If price differences are defined as a cost element. specify the FI accounts which should be posted in the event of price differences. (C) SAP AG AC665 32 . then you should assign a CO account assignment object for this business area to each price difference account of this business area. The partner business area and partner profit center are derived from the purchase order or the sales order.2.  To ensure that the assignment to a business area is carried out for all items. and which use the MM (Materials Master) and SD (Sales and Distribution) modules. In FI.  Goods movements can result in price differences. These can be created as a cost element or defined as not relevant to CO. However. it is useful to define a separate field selection group for the division field.  When business area consolidation is used. The "Read Purchase Orders/Sales Orders" indicator is used to determine the partner business area and partner profit center in Logistics applications. Otherwise.2. The partner business area and partner profit center are derived from the purchase order or the sales order.33 Preparations: Sales     Identify companies in the same client Assign rules to each sales area Assign business area to each plant and division Assign business area to each sales area © SAP AG 1999 Select the companies that are maintained in the same client of your system. and which use the MM (Materials Master) and SD (Sales and Distribution) modules.  In the standard system there are two default rules for automatically assigning business areas in revenue account determination:  Business area assignment per plant and division  Business area assignment per sales area  For each sales area. account assignment for each business area cannot be carried out. you have to specify for each sales area the rules that the R/3 System should use to find a business area.  (C) SAP AG AC665 33 .  For business area assignment. specify the respective rule for business area determination. 34 Integrated Data Transfer: FI Unit Summary You are now able to:  Describe EC-CS master data and its function  Name the enterprise structures in the transaction system. © SAP AG 1999 (C) SAP AG AC665 34 . and link these to the consolidation structures  Name various data transfer methods and their functions  Prepare data transfers for legal or management consolidation.2. Please copy only consolidation functions. Use the instructor's dimension Z2 as a copy template. and measures. 1-2 Use the Copy dimensions function to create a dimension for business area consolidation. AC665 35 (C) SAP AG . Call your dimension #2 (where # corresponds to the letter of your course group).       Company Company code Business area Functional area Controlling area Profit Center You will find your course group's organizational units in the Exercise Data page.35 Integrated Data Transfer-Exercises Unit: Integrated Data Transfer: FI Topic: EC-CS: Data Structures At the conclusion of these exercises.2. methods. you will be able to:    Create consolidation dimensions Copy consolidation charts of accounts Define session parameters In the following exercise. 1-1 Check your course group's organizational units in the operational applications FI and ECPCA. you will prepare data in FI for transfer to Consolidation. • Here you can change the Specification of the Subitem and activate the Specification Partner. Use the instructor's dimension Z3 as a copy template. methods. Additional Exercise Theoretical Question: Imagine that European countries have united to form a new country called “EU”. Confirm this request. Dimension: A2 (or J2 for course group 10. chart of accounts 01 Ledger: US 1-5 Create the new item 3012## Sales Revenue from Affiliates. and measures. Check if the subitem category Functional Areas as been defined in EC-CS with the respective subitems. 1-4 Specify your group-specific session parameters for business area consolidation. Call your dimension A3 (the letters A to T correspond to the number of your course group).The system requests you to create a "to dimension". T2 for course group 20) Version: 100 Fiscal year: current year Period 012 Cons. 1-6 You should now know where the functional areas are defined. enter 3012## (where ## = 40 + your group number). The system requests you to create a "to dimension". 1-3 Use the Copy dimensions function to create a dimension for profit center consolidation. • • • • Copy from item 301200 to item 3012##. Description: Sales Revenue from Affiliates Choose the function Breakdown category. As the item number. Which areas of consolidation might be affected from the new entry in the global table of countries? _____________________________________________________________ 1-7 (C) SAP AG AC665 36 . Please copy only consolidation functions. Confirm this request. Save the subitem category . (C) SAP AG AC665 37 . Field length: 02 Sender field for subitem: 04 (country of customer) Choose Copy subitems. Use the subitem category A to T according to your group. Example: Group 01 creates category ‘A’. ##”. group 02 creates ‘B’. and so forth.1-8 Additional Exercise Create a subitem category called “Customer Country Gr. Leave Test Run selected and look at the generated list. and C300? Check whether the business area financial statements (balance sheets) are activated in the company codes. C200. you will be able to:  Describe the settings and assignments that have to be made in the transaction sender systems Post and analyze FI documents with additional account assignments that are relevant to consolidation  2-1 Which transaction chart of accounts is assigned to the company codes C100. 2-1. how can you ensure that only the transaction business areas are posted in a given company code? For your postings later on. affiliated companies”. Save your data. create a group account called “Net sales. 2-1.2 Check the consolidation business areas and the combination business area consolidation business area. 2-3 3012## (## = your course group number + 40) CONS NS affiliated Gr## X profit & loss accounts (C) SAP AG AC665 38 .1 Check whether the transaction chart of accounts for the company codes is assigned to the group chart of accounts CONS.Unit: Integrated Data Transfer: FI Topic: Financial Accounting At the conclusion of these exercises. 2-2 In the consolidation system. You enter: Account no.: Chart of accounts: Text: P&L account type: Account group: Select P & L account. affiliated companies" in company code C300. and assign the G/L account to the group account.affiliated companies”. Input data: Controlling Area C001 Number: 8020## Valid from: 01/01 of the current year Cost element category: 11 (Revenues) Save your data. the following fields can be entered: Line item display:  Sort key: 001 (Posting data) Input data on tab Entry/Bank/Interest: Field status group: Save your entries. Group account: 3012## (## = your course group number + 40) Input data on tab Control Data: Account currency: USD Tax category: + (only output tax) After you choose Enter. Where do you find the consolidation transaction type in the task level menu? (C) SAP AG AC665 39 . run the FI transaction Create/change G/L accounts and select Edit Cost Element. create the G/L account "Net sales. create a primary cost element called “Net sales . G029 (Sales revenue accounts).: 8020## Company code: C300 Text: NS affiliated Gr## Account group: profit & loss accounts Select P & L account. (## = your course group number + 40) Input data on tab Type/Description: Account no. 2-6 Check the consolidation transaction type that the FI-AA transaction type 100 ("Addition") is assigned to. To do this. 2-5 For your postings later on.2-4 For your postings later on. ## 0001 (C) SAP AG AC665 40 . In IDES Chicago. 2-8 IDES Chicago has started supply relationships with IDES Palo Alto.2-7 Additional Exercise: Create an asset master record in company code C100. Class 11000 Description Bottling plant Business area 6000 Cost center: C100C6111M Manufact. AS (Palo Alto) Depreciation key: LINR Useful life: 10 years Save your data. Which trading partner do you have to store in the customer master record? What you enter: Account group: Customer: Company code: Name: Search term: Postal code: City: Country: Language: Reconciliation account: Terms of payment: Customers (external number assignment) PA## C300 Palo Alto Group ## Palo Alto ## 12345 Palo Alto US EN 1440## Receivables . create a customer master record for the customer IDES Palo Alto. Please enter the number of the asset master record in the "Exercise Data" worksheet.affiliated companies Gr. affiliated companies Gr. and 1640## "Payables .2 Additional Exercise: What does the cost center category 'M' stand for? 2-12 Additional Exercise: When you store FI document type.1 Examine the substitution rule that is needed in the FI document for the assignment of functional areas.9 IDES Palo Alto orders goods from IDES Chicago. create a vendor master record for the vendor IDES Chicago. Which trading partner do you have to store in the vendor master record? What you enter: Vendor: Company code: Account group: Name: Postal code: City: Country: Language: Reconciliation account: Terms of payment: CH## C100 LIEF Ch## 45600 Chicago US EN 1640## Payables . In IDES Palo Alto. ##" (## = your group number + 40) 2-11 See if the cost of sales method is activated for company code C100. ## 0001 2-10   Check the status of the "Trading partner business area" field in the company code segment of the following reconciliation accounts: 1440## "Receivables from affiliated companies Gr. 2-11.affiliated companies Gr. ##". what restrictions are required to ensure that the account assignment of the trading partner can be stored uniquely in the posting document? (C) SAP AG AC665 41 .2. 2-11. check company code SAP Menu  Tools  Accelerated SAP  SAP Reference IMG  Edit Project  SAP Reference IMG  Enterprise Structure  Definition  Financial Accounting  Define Business Area SAP Reference IMG  Enterprise Structure  Structure Maintenance  Definition  Financial Accounting  Define Functional Area SAP Reference IMG  Enterprise Structure  Definition  Controlling  Maintain Controlling Area (C) SAP AG AC665 42 . SAP Menu  Tools  Accelerated SAP  SAP Reference IMG  Edit Project  SAP Reference IMG  Enterprise Structure  Definition  Financial Accounting  Maintain Company SAP Menu  Tools  Accelerated SAP  SAP Reference IMG  Edit Project  SAP Reference IMG  Enterprise Structure  Definition  Financial Accounting  Define.36 Integrated Data Transfer-Solutions Unit: Integrated Data Transfer: FI Topic: EC-CS: Data Structures 1-1 • • • • • • Check your course group's organizational units in the operational applications FI and ECPCA. Company Company code Business area Functional area Controlling area Profit Center You will find your course group's organizational units in the Exercise Data page. delete.2. copy. SAP Menu  Accounting  Enterprise Controlling  Profit Center Accounting  Master Data  Profit Center  Maintain Profit Center (C) SAP AG AC665 43 . T2 for course group 20) Version: 100 Fiscal year: current year period: current period Cons chart of accounts: 01 Ledger: US SAP Reference IMG  Enterprise Controlling  Consolidation  Specify Global Parameters (C) SAP AG AC665 44 . SAP Reference IMG  Enterprise Controlling  Consolidation  Preparing for Production  Copy dimensions 1-3 Use the Copy dimensions function to create a dimension for profit center consolidation. Call your dimension A3 (the letters A to T correspond to the number of your course group). and measures. methods. Call your dimension A2 (the letters A to T correspond to the number of your course group). SAP Reference IMG  Enterprise Controlling  Consolidation  Preparing for Production  Copy dimensions 1-4 Specify your group-specific session parameters for business area consolidation. The system requests you to create a "to dimension". Use the instructor's dimension Z3 as a copy template. and measures. Please copy only consolidation functions. Use the instructor's dimension Z2 as a copy template. Confirm this request. Dimension: A2 (or J2 for course group 10. methods. Please copy only consolidation functions. The system requests you to create a "to dimension". Confirm this request.1-2 Use the Copy Dimensions function to create a dimension for business area consolidation. 1-5 Create the new item Sales Revenue from Affiliates. SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  FS Items  User-defined chart of accounts  Edit single items  Change item Enter item 301200 and choose FS items  copy. SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  FS Items  Subassignments  Define subitems  Display subitems 1-7 Additional Exercise Theoretical Question: Imagine that European countries have united to form a new country called “EU”. 1-6 You should now know where the functional areas are defined. Which areas of consolidation might be affected from the new entry in the global table of countries? The table of countries must contain an entry for “EU”: SAP Reference IMG  Global Settings  Set up Countries  Define Countries The subitem category “Regions” must contain a new subitem for “EU”: SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  Item Assignment Information  Define Subitems  Create Subitem Subitem category ‘Region’: 04 (C) SAP AG AC665 45 . As the item number. Check if the subitem category Functional Areas as been defined in EC-CS with the respective subitems. • Here you can change the Specification of the Subitem and activate the Specification Partner. Copy this item to the item for your group. enter 3012## (where ## = 40 + your group number). • • • • Copy from item 301200 to item 3012##. Description: Sales Revenue from Affiliates Choose the function Breakdown category. Field length: 02 Sender field for subitem: 04 (country of customer) Choose Copy subitems.1-8 Additional Exercise Create a subitem category called “Customer Country Gr. Save the subitem category . group 02 creates ‘B’. and so forth. SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  FS Items  Assignment Information  Define Subitem Categories (C) SAP AG AC665 46 . Example: Group 01 creates category ‘A’. ##”. Deactivate Test Run selected and look at the generated list. Use the subitem category A to T according to your group. C200.Unit: Integrated Data Transfer: FI Topic: Financial Accounting 2-1 Which transaction chart of accounts is assigned to the company codes C100.2 Check the consolidation business areas and the combination business area consolidation business area. SAP Reference IMG  Financial Accounting  Financial Accounting Global Settings  Company Code  Check and Extend Global Parameters 2-1.1 Check whether the transaction chart of accounts for the company codes is assigned to the group chart of accounts CONS. and C300? Check whether the business area financial statements (balance sheets) are activated in the company codes. SAP Reference IMG  Enterprise Structure  Definition  Financial Accounting  Maintain Consolidation Business Area SAP Reference IMG  Enterprise Structure  Allocation  Financial Accounting  Allocate Business Area – Consolidation Business Area (C) SAP AG AC665 47 . Preparation for Consolidation  Preparation in the sender system  Preparations Related to all Consolidation Types  Transaction Accounts: Assignment of Group Accounts  Assign group chart of accts to (transaction) accts 2-1. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. You enter: Account no. create a group account called “Net sales.: Chart of accounts: Text: P&L account type: Account group: Select P & L account. SAP Menu  Accounting  Financial accounting  General ledger  Master records  Single editing  Chart of accounts 3012## (## = your course group number + 40) CONS NS affiliated Gr## X profit & loss accounts (C) SAP AG AC665 48 . Save your data.2-2 In the consolidation system. how can you ensure that only the transaction business areas are posted in a given company code? SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. affiliated companies”. Preparation for Consolidation  Preparation in the Sender System  Enterprise Structure  Checking the Structure for Business Area Consolidation  Combination of company codes/business areas 2-3 For your postings later on. (## = your course group number + 40) SAP Menu  Accounting  Financial accounting  General ledger  Master records  Single editing  Central Input data on tab Type/Description: Account no. and assign the G/L account to the group account. create the G/L account "Net sales.: 8020## Company code: C300 Text: NS affiliated Gr## Account group: profit & loss accounts Select P & L account. (C) SAP AG AC665 49 . affiliated companies" in company code C300. G029 (Sales revenue accounts). Group account: 3012## (## = your course group number + 40) Input data on tab Control Data: Account currency: USD Tax category: + (only output tax) After you choose Enter. the following fields can be entered: Line item display:  Sort key: 001 (Posting data) Input data on tab Entry/Bank/Interest: Field status group: Save your entries.2-4 For your postings later on. Preparation for Consolidation  Preparation in the Sender System  Preparations Related to All Consolidation Types  Assignment of Transaction Types  Assign asset transaction types / Maintain transaction types for Consolidation 2-7 Additional Exercise: Create an asset master record in company code C100. Input data: Controlling Area C001 Number: 8020## Valid from: 01/01 of the current year Cost element category: 11 (Revenues) Save your data.affiliated companies”. Where do you find the consolidation transaction type in the task level menu? SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. Class: 11000 SAP Menu  Accounting  Financial Accounting  Fixed Assets  Asset  Create  Asset Input Data: Tab General: Description: Bottling plant Tab Time-dependent: Business area: 6000 Cost center: C1006111M Manufact. (C) SAP AG AC665 50 .2-5 For your postings later on. Please enter the number of the asset master record in the "Exercise Data" worksheet. Product Acetyl Tab Valuation: Depreciation key: Useful life: LINR 10 years Save your data. Accounting  Controlling  Cost elements  Master data  Cost element  Individual processing  Create primary 2-6 Check the consolidation transaction type that the FI-AA transaction type 100 ("Addition") is assigned to. create a primary cost element called “Net sales . In IDES Chicago.affiliated companies Gr. create a customer master record for the customer IDES Palo Alto. (C) SAP AG AC665 51 . Which trading partner do you have to store in the customer master record? SAP Menu  Accounting  Financial Accounting  Accounts receivable  Master records  Create What you enter: Account group: Customer: Company code: Customers (external number assignment) PA## (## = your group number + 40) C300 Tab Address: Name: Palo Alto Group ## Search term: Palo Alto ## Postal code: 12345 City: Palo Alto Country: US Language: EN Tab Control Data: Reconciliation account: 1440## Receivables .2-8 IDES Chicago has started supply relationships with IDES Palo Alto. ## Tab Terms of Payment: Terms of payment: 0001 Store trading partner C10000 in tab Control Data. Doubleclick the Field Status Group. ##" (## = your group number + 40) SAP Menu  Accounting  Financial Accounting  General ledger  Single Editing  Central Choose Display. 2-10 Check the status of the "Trading partner business area" field in the company code segment of the following reconciliation accounts:   1440## "Receivables from affiliated companies Gr. Which trading partner do you have to store in the vendor master record? SAP Menu  Accounting  Financial Accounting  Accounts payable  Master records  Display What you enter: Vendor: CH## (## = your group number + 40) Company code: C100 Account group: LIEF Name: Chicago group ## Search term: Ch## Postal code: 45600 City: Chicago Country: US Language: EN Reconciliation account: 1640## Payables .affiliated companies Gr.affiliated companies Gr. ## Terms of payment: 0001 Store trading partner C30000.2-9 IDES Palo Alto orders goods from IDES Chicago. create a vendor master record for the vendor IDES Chicago. In IDES Palo Alto. (C) SAP AG AC665 52 . Choose the tab Entry/Bank/Interest. Select the Additional account assignments group. and 1640## "Payables . ##". Activating the cost of sales method: SAP Reference IMG  Financial Accounting  Financial Accounting Global Settings  Company Code  Cost of sales method  Activate cost of sales method 2-11. what restrictions are required to ensure that the account assignment of the trading partner can be stored uniquely in the posting document? SAP Reference IMG  Financial Accounting  Financial Accounting Global Settings  Document  Document Header  Overview (Document Types) Select the document type DR and choose Details: In the "Control data" box.1 Examine the substitution rule that is needed in the FI document for the assignment of functional areas. 2-11.2-11 See if the cost of sales method is activated for company code C100.2 Additional Exercise: What does the cost center category 'M' stand for? SAP Reference IMG  Controlling  Cost Center Accounting  Master Data  Cost Centers  Maintain Cost Center Categories The cost center category stands for Material. SAP Reference IMG  Financial Accounting  Financial Accounting Global Settings  Company Code  Cost of Sales Method  Set up Substitution for Cost of sales Method  Define Substitution Select the substitution FA-EC "Functional area derived from cost center category". 2-12 Additional Exercise: When you store FI document type. Choose Production Costs. the Customer/vendor check option must be flagged. (C) SAP AG AC665 53 . The "Intercompany postings" option must be deselected. 3 Data Transfer Methods: FI Data Contents  Data Transfer Methods  Assignments in EC-CS © SAP AG 1999 (C) SAP AG AC665 1 . you will be able to:  Describe the various data transfer methods and how to use them  Make preparations in the sender and receiver systems for transferring data for the purposes of legal and management consolidation © SAP AG 1999 (C) SAP AG AC665 2 .2 Data Transfer Methods: FI Data Unit Objectives At the conclusion of this unit.3. 3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 .3.  You also specify which data transfer method you are going to use.3. © SAP AG 1999 (C) SAP AG AC665 4 .  You specify which data the sender systems supply to which consolidation types.4 Data Transfer Methods: FI Data Business Scenario  Your company has assigned you the task of making preparations for legal and management consolidations. 5 Consolidation With Different Releases EC-CS 4.  It is also possible to transfer data from SAP systems by means of periodic extracts and rollups. This also applies to companies that run their transaction bookkeeping on a non-SAP system. products.  If the transaction applications and the Consolidation system are all in the same client of the same system.X R/3 System 3.3. In EC-CS. and Microsoft Access. CO.  Data from non-SAP systems can be imported using special data entry forms. financial applications. and hardware environments. EC-CS Non-SAP system Transfer using: ALE.X FI. The component copes easily with non-standardized key systems (organizational units. Extract. flexible uploads. and so on). charts of accounts. Rollup.X FI. This means that data from company codes to which a company has been assigned can be transferred to the appropriate integrated consolidation unit. Flexible Upload. MS Access © SAP AG 1999 The EC-CS component provides powerful functionality in both homogenous and heterogeneous system environments. data can be transferred to the Consolidation system online (in realtime). consolidation units are generated automatically from these FI companies. CO. The group companies who do not use SAP Consolidation for financial accounting are mapped as companies in FI. PCA R/3 System 4. PCA.  (C) SAP AG AC665 5 . 3.6 Data Transfer Methods Central Scenario Realtime Update Periodic Extract Rollup Decentralized Scenario Realtime Update Periodic Extract Rollup Company Consolidation Business Area Consolidation Profit Center Consolidation © SAP AG 1999 (C) SAP AG AC665 6 . the system uses the Customizing settings to convert the data. For Rollup: Transfer settings to the sender system © SAP AG 1999 For the purposes of transferring transaction data to the EC-CS consolidation system.rules for ID combination . Alpha conversion)  When a rollup of the transaction data is generated in the transaction system.etc.  This applies to Customizing settings regarding .breakdown categories .consolidation charts of accounts .Assign C/A to cons charts of accts . it is necessary to transfer the Customizing settings from the consolidation system to the transaction system by means of download and upload.Define data streams .subitem categories .3.  (C) SAP AG AC665 7 .  If the consolidation and the transaction applications are in different systems or clients.financial statement items .assignment of dimensions/integrated consolidation types . The file generated by the rollup can then be checked and written to the consolidation system.subitems .7 Prepare Data Transfer EC-CS Consolidation EC- Transaction System Create or import global master data Define combinations of company codes/business areas Transfer combinations of company codes/ business areas Enter charts of accounts For Rollup: Transfer settings from consolidation system Activate data transfers System Preparing Consolidation Set up cons unit/group Prepare transfer of data: . certain Customizing settings for consolidation have to be known in the transaction applications in order to convert the data to the required account assignment.global settings (for example. On the basis of this information. it determines the appropriate item in the consolidation chart of accounts for each transaction account.8 Sender System: Data Transfer Method ECECCS Group: Fiscal Year Variant: Active Consolidation Types Consolidation System FI  Company  Realtime update  Rollup  Periodic Extract  Business Area Check Realtime update  Rollup  Periodic Extract  Profit Center EC-CS  FI-LC  RF-KONS Company code Business area © SAP AG 1999 Specify the group to which the companies of this SAP System report. When the system runs this check.  The system reads the consolidation chart of accounts and the corresponding transaction charts of accounts for every data stream.  (C) SAP AG AC665 8 .3. and the data transfer methods to be used for each of these consolidation types. Then define the fiscal year variant used in Consolidation. you can specify here that a check should be run in the Accounting system to see if a business area defined in the document is valid for the company code in question. it uses the permissible combinations of company code and business area that you defined in Customizing.  The system checks the following before the settings can be saved:  Whether active data streams exist (at least one data stream must be defined and flagged as active for each data transfer method)  The assignment of group accounts to G/L accounts (does not apply to periodic extract method)  Whether a default subitem and sender field have been defined in the master record of the subitem categories used. Also specify the Consolidation system. the consolidation types that are active for integration.  Business area consolidation: If some company codes post to different business areas. You will need to make these settings in every client of every system. When data is transferred. (C) SAP AG AC665 9 . the system determines how each data record should be updated in the Consolidation system. It does this by looking at the definition and configuration of the data streams. A document is only written to a ledger if the ledger is assigned to all the consolidation units involved and all have the same fiscal year variant.9 Realtime Update SD FI Document FI Realtime MM FI Transaction Figures FI Documents optional Totals Records Journal Entries ECECCS ECMCT Ledger US © SAP AG 1999      The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts. When defining the ledger you can specify whether you want to keep journal entry records in the journal entry table in addition to totals records. every accounting transaction that affects the general ledger is updated at the same time in FI and in the totals records of the consolidation ledger.3. If you use the realtime update method.  Generally speaking. This means that a rollup is a user-friendly option for transferring data. a rollup is a tool for transferring data records from a sender table to a receiver table.  The standard system already contains rules for transferring data to EC-CS. GC #### Sender Table Example: Summary table with functional area Receiver Table EC-CS Totals Records CU: GC: Consolidation Unit Value in Group Currency © SAP AG 1999 In the standard SAP System. This means that rules specifying how the individual fields are to be transferred have to be defined. the sender and receiver tables are structured differently.10 Rollups ECECCS FI Transfer on the basis of rules Ledger US Characteristics CU Item . abc xyz Key Fig. particularly from Profit Center Accounting.  (C) SAP AG AC665 10 ...3. To generate the group chart of accounts manually.3. you enter the group chart of accounts in the chart of accounts list in the receiver system and asssign the account groups to the group chart of accounts. you assign the group chart of accounts to the consolidation chart of accounts in the receiver system. You cannot assign a group account to a secondary cost element because it is not an FI account. The G/L accounts can be grouped together using the group account number defined in the G/L account.11 Transferring Values from Transaction G/L Accounts Cons Chart Balance Sheets "Group" CO Cost Elements EC-CS EC- FI "CountrySpecific" Chart of Accounts (Statutory) "Transaction" Chart of Accounts Chart of Accounts 1:1 Realtime Update Rollup Income Stmt 1 N: Cash Flow Stmt 1 1: Statistical Factors Key Figures Post Financial Statement Transaction Sender Systems © SAP AG 1999 Consolidated Statements      The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts. The consolidation chart of accounts provides a common structure to unify the potentially diverse charts of accounts of the internal trading partners. the accounts in the group chart of accounts must be identical to the financial statement items in the consolidation chart of accounts. you can assign groups of cost elements to individual line items. In FI. Therefore. Preparations in the sender system include assigning the group chart of accounts to a transaction chart of accounts. You enter the group account number in the chart of accounts segment defined for the transaction G/L account. (C) SAP AG AC665 11 . If the transaction chart of accounts contains secondary cost elements. you define the chart of accounts segment for the G/L accounts in the group chart of accounts. To transfer the data. (C) SAP AG AC665 12 . you can determine whether you wish to assign ranges of the secondary cost elements to financial statement items.3. To transfer the data. The system creates these automatically. When doing this.12 Creating a Group Chart of Accounts/Items either Cons Chart of Accts or Generate from consolidation chart of accounts   Create group chart of accounts manually Generate items from chart of accounts Balance Sheet EC-CS ECIncome Statement Cash Flow Statement Statistical Factors Key Figures © SAP AG 1999      You can use programs to generate consolidation charts of accounts from the charts of accounts. It is not necessary to create either the chart of accounts or the account group in advance. If you wish to bundle cost elements. You can generate the group chart of accounts from a consolidation chart of accounts. You can check the assignment of accounts and financial statement figures by using reports for analysis and reconciliation. assign the group chart of accounts in the sender system to the consolidation chart of accounts in the EC-CS receiver system. assign the cost element range to the financial statement items in the consolidated chart of accounts. You can also transfer (1:1) secondary cost elements as financial statement items. you will not want to generate a separate item in the consolidation chart of accounts for each individual secondary cost element. you can decide whether you merely want to add new items. you specify that cost element groupings should be taken into account when data is transferred. or whether you want to overwrite existing items.  You cannot assign a group account to a secondary cost element because it is not an FI account.  Generally speaking.13 FI Accounts / Secondary Cost Elements FI CO Primary Cost Elements Secondary Cost Elements EC-CS Cons Chart of Accts Balance Sheet Group together: Income Statement Assessment Activity Allocation Order Settlement Material cost element Order settlement Internal activity allocation Cash Flow Statement Statistical Factors Key Figures © SAP AG 1999 You can generate items in the consolidation chart of accounts automatically for secondary cost elements. and assign this group of elements to a consolidation item. If a consolidation chart of accounts has already been defined. In this case. you will group together secondary cost elements. and assign each grouping to an item in the consolidation chart of accounts.  When you assign secondary cost element groupings to items in the consolidation chart of accounts. you must specify the controlling area and date to which the secondary cost elements apply. You can group the cost elements together by cost element category.3. Instead. though.  (C) SAP AG AC665 13 . The items in the consolidation chart of accounts must be defined first. Parallel Posting General Ledger GLT0 Transaction Figures Cons Staging GLT3 Ledger 09 Consolidation system Update in EC-CS Extract: RFBILA00 + Transfer of the File ECMCT Cons Proc.  The accounting transactions that affect the general ledger are updated in the transaction figures table and in the totals records of the consolidation staging ledger (09) at the same time in the sender system. Ideally. The sender system only sends consolidation values to the receiver system. (C) SAP AG AC665 14 . the ledger currency of ledger 09 should be the same in the sender and receiver systems.  Data is selected from the consolidation staging ladger at regular intervals. For different currencies you have to carry out the currency translation task in the data monitor.   The EC-CS component contains a program for uploading.14 Periodic Extract Transaction System FI Doc. converting and updating the extract.3. not ledger currency details. Ledger Cons Staging Ledger 09 GLT3 Ledger Currency Data © SAP AG 1999 The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts. Data is forwarded using a file. If you do not want to have a separate item for each secondary cost element.3. The transaction chart of accounts can contain secondary cost elements in addition to the FI accounts it normally contains. Data is selected via the financial statement version. You use the "Financial Statement Version" program to generate the extract in the sender system. The data extract is updated automatically in the "To" period defined for the extract. there must be a financial statement version in the sender system. balance type "1" (balance carried forward up to and including the "To" period). You can then import this extract into the receiver system. You cannot use the periodic extract option for transferring 'planned data' since the "Financial Statement Version" program selects only actual data. For business area consolidation purposes. you can define items for a specific range of cost elements. You can create the item hierarchies of a consolidation chart of accounts from an existing financial statement version.Periodic Extract CO Cost Elements Cons Chart of Accts Balance Sheet EC-CS ECIncome Statement FI "Transaction" Chart of Accounts 1 1: N:1 Group Financial Stateme nt Version Cash Flow Statement 1:1 Statistical Factors Data Extract Post Financial Statement Financial Statement Key Figures Consolidated Financial Statements Transaction Sender Systems © SAP AG 1999       If you use the periodic extract method for transferring data. the original business area is replaced by the consolidation business area in the data extract. (C) SAP AG AC665 15 . you must first define the consolidation chart of accounts for which you want to generate the item hierarchies. and the items in this version must correspond to the items in the consolidation chart of accounts.15 Transaction Accounts . In this case.  (C) SAP AG AC665 16 .  If the Consolidation system uses a different fiscal year variant than the units to be consolidated.  If you use the periodic extract method. the system assigns the consolidation staging ledger (which has the fiscal year variant of the Consolidation system) to all company codes to which a company has been assigned...16 Data Transfer Methods Periodic Extract Parameters: Dimension: Business Area Consolidation . Group: Integrated Consolidation Types  Company  Business Area  Profit Center Data Transfer Methods  Realtime update  Rollup  Periodic Extract Consolidation Staging Ledger 09 ECECCS Ledger: US Fiscal Year Variant: Master Data Consolidation Units Company ###### Company Code #### FI © SAP AG 1999 The system assigns the consolidation ledger defined in the global parameters to the integrated consolidation units.3. the periods are converted when the financial data is transferred. you map a top node and the consolidation group of the parent company. you can see that two hierarchies have been defined for one dimension.. for example.. you can limit the selection of organizational elements.by business area.  (C) SAP AG AC665 17 . periodic extract.17 Assigning Consolidation Types to Dimensions Parameters: Dimension: Business Area Consolidation .3. Next.  The data transfer method you choose will determine which organizational elements are proposed. ECCS Integrated Consolidation Types  Company  Business Area  Profit Center + Dimension H1 Business Area Consolidation Hierarchy: Business Areas Top Node Pharmaceuticals Chemicals Chemicals/Palo Alto Chemicals/New York Hierarchy: Companies Top Node Transfer organizational units Convert into consolidation units Palo Alto Chicago Chicago/Chemicals Chicago/Services © SAP AG 1999 If you use the realtime update. In the example above. In each hierarchy.  You can define a data transfer method for every dimension. the consolidation units and consolidation groups must be generated automatically. or by company. or rollup method. If you wish.  You can define several hierarchies with various structures for each dimension. you decide how the consolidation groups are to be broken down .  You define ID combination rules for each consolidation type.  (C) SAP AG AC665 18 .  You define the rules that you want the system to use to derive the IDs and names of the consolidation units and groups from the IDs of the organizational units in G/L accounting and profit center accounting.3. the data from the transaction organizational unit "Business Area 6000" is converted into the corresponding consolidation unit when the data is transferred.18 Converting Organizational Units Data Transfer Method: Realtime Update FI Sender  Business Area Consolidation  Consolidation Chart of Accounts##  Version ### Receiver ECCS Consolidation Unit Company/Business Area Company C10000 Company Code C100 Business Area 6000 ID combination !!! C10000-6000 © SAP AG 1999 The transaction systems do not recognize the organizational units of EC-CS. These rules can then be used to generate the consolidation hierarchy automatically. These rules are used to convert the transaction organizational units to the consolidation unit. You have to define ID combination rules for every consolidation type and dimension in every data stream.  In the example above. This means that the transaction organizational units have to be converted to the consolidation units and groups of EC-CS. 19 Organizational Units: Rules for ID Combination Consolidation Units   4000 6000 Chemicals Pharma C10000-6000 Palo Alto/Pharmaceuticals C20000-6000 New York/Pharmaceuticals Rules for ID Combination CS Org. 2 Consolidation group Grouping category 0 No grouping 1 Group by company 2 Group by business area Position 1 Name comes first 2 Name comes second Organizational unit 1 Company 2 Business area The prefix '-' separates the "name" from the organizational unit. The length of the ID for the consolidation unit / of the consolidation group is. Unit Grouping Category FS item Org. for example.3. Unit Prefix Length 1 2 0 1 2 1 2 1 1 1 2 1 2 - 6 4 6 4 1 Company    C10000 C20000 C30000 IDES Palo Alto IDES New York IDES Chicago 2 Business Area     Consolidation Groups 4000 6000 8000 9900 Chemicals Pharma Services Corporate/Other © SAP AG 1999        Example: Business area consolidation CS organizational unit 1 Consolidation unit. 10 characters (+ prefix) (C) SAP AG AC665 19 . The data transfer method you choose will determine which organizational elements are proposed...3. This will enable you to adapt the hierarchy of EC-CS organizational units to take into account any changes that were made in the sender system. Palo Alto New York Chicago Chicago/ ‘___‘ Chicago/Chemicals . The generated hierarchies can be postprocessed.. a consolidation group Business Area ”__” is generated with the appropriate consolidation units. You can also make mass changes if you wish. © SAP AG 1999      You can define several hierarchies with various structures for each dimension. Business Area ‘___‘ Chemicals Chemicals/Palo Alto Chemicals/New York Copy Business Areas Data Collection  Same R/3 System  Upload Hierarchy Structure  Business Areas  Companies Group acc. whether the data transfer method was maintained for all the consolidation units..20 Maintaining Hierarchies Dimension 02 Cons C/A 01 Version 100 Period MMM/YYYY H1 Business Areas Group by Segments .. it will be possible to integrate consolidation units that were originally created manually. In a future release.. If a posting does not have a valid business area. If you wish. for example. to Companies . you can limit the selection of organizational elements. You can generate lists to analyze the organizational units from different perspectives:  Transferred consolidation units  Master data of the consolidation units that play an important role in integration  Transaction system and client that the unit was transferred from This function allows you to check. (C) SAP AG AC665 20 . These document types are then taken into account by reports and validations. how to handle deferred taxes.3. proceed as follows:  Define the characteristics of the document type and the currencies to be posted (realtime update posting level). If you need to define more document types. That is why you must define a document type for each dimension. The automatic reversal/cancellation function in the subsequent period is of no relevance to the realtime update method.21 Realtime Updates: Defining Document Types FI 100100 Dimension 02 Doc.  (C) SAP AG AC665 21 .  Maintain version-based characteristics: Define a number range for your document numbers. the system generates documents.: ### ### ##1 If you use the realtime update method.  The standard SAP System comes with one standard document type. type Postings in  Transaction currency  Local currency  Group currency Cons C/A 01 Version 100 Version 100 Version 200 Period MMM/YYY Y Number range Number range 01 02 ECCS 01 Realtime update TC 100100 © SAP AG 1999 LC 100100 GC 200200- Document no.  By defining document types. and what currencies to use. The posting of deferred taxes does not affect the realtime update method.  You can use customer-specific documents types for consolidation. you enable the system to pass on special information to the consolidation postings: information relating to the database update. COGS Version Actual Active  © SAP AG 1999      When data is transferred." After you have saved them. the settings for data transfer are active. For each relevant data stream and dimension. the system determines the consolidation type. the system determines how each data record should be updated in the Consolidation system. you have to make the other settings in the section "Integration: Preparation for Consolidation. Before you carry out this step. and from this point the data can be transferred to consolidation.22 Defining Data Streams Consolidation Type  Company consolidation Dimension  Business area consolidation Business areas  Profit center consolidation Data Streams Cons chart of accounts 01 US Appr. and uses this to define the rules for ID combination. More than one data stream can be flagged as active if you use the realtime update method. For each combination of consolidation type and dimension. It does this by looking at the definition and configuration of the data streams. you define the consolidation chart of accounts and version to which you want the data to be transferred.3. (C) SAP AG AC665 22 . In B/S. 23 Data Transfer Methods: FI Data Unit Summary You are now able to:  Describe the various data transfer methods and how to use them  Make preparations in the sender and receiver systems for transferring data for the purposes of legal and management consolidation © SAP AG 1999 (C) SAP AG AC665 23 .3. You now make the necessary preparations in the consolidation system.24 Data Transfer methods-Exercises Unit: Data Transfer Methods: FI Data Topic: Data Transfer Methods At the conclusion of these exercises. _______________________________________________________________ (C) SAP AG AC665 24 . you will be able to: • Name and assign the various consolidation types and possible methods of data transfer available In the sender system.3. 1-1 For which consolidation types has the realtime update option been defined? _______________________________________________________________ 1-2 Additional Exercise: Which method of data transfer can you use for business area consolidation in distributed systems? _______________________________________________________________ 1-3 Additional Exercise: Explain the difference between a realtime update and a periodic extract to the person sitting beside you. you have already made the settings and assignments required for transferring data to the Consolidation system. you will be able to:  Interpret the ID combination rules used to form consolidation groups and units Create a hierarchy of your own  2-1 2-2 Check to make sure that the correct consolidation types have been assigned to your course group’s dimensions.Unit: Data Transfer Methods: FI Data Topic: Assignments in EC-CS At the conclusion of these exercises. 2-2.1 What are the naming conventions for consolidation units and groups (give examples)? _____________________________________________________________ _____________________________________________________________ (C) SAP AG AC665 25 . Check over the ID combination rules defined for business area consolidation. 2-3. Create hierarchies H1 and H2 (group by business area and company). and display it. Explain to the person sitting next to you why it is possible to define more than one data stream for each dimension. You are prompted whether to generate sets.1 Evaluate the master data. and create a top consolidation group for each hierarchy. Define the data transfer method using the mass change function: R = Realtime update from FI. and generate the consolidation areas and units without restricting them to specific companies/consolidation business areas. Confirm your data by pressing ENTER. Select the Same R/3 System and Hierarchy of business areas options. Enter the fiscal year variant K4 for the integrated consolidation units. Place your cursor on the top node of hierarchy H1. Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. Data streams: Check to see if the data stream for your dimension #2 has been activated.2-3 • • • • • Copy the hierarchy for dimension #2. • • _____________________________________________________________ 2-4 Additional Exercise: Realtime update: Check the assignment of the accounts in operational chart of accounts CAUS to the items in consolidation chart of accounts 01. which can be used later for your reporting. and choose Business areas. Please select the answer NO because of technical reasons. Why is it possible to activate more than one data stream per dimension? 2-5 (C) SAP AG AC665 26 . and check over the assignment of consolidation units to ledger and fiscal year variant. • Save your entries. (C) SAP AG AC665 27 . If necessary. Save your entries and make a note of the document number: ________________. Post an outgoing invoice for company code C300 against affiliated vendor PA##. Create the following number range interval: Number range: 01 To fiscal year: current fiscal year Group-specific range: Example: Gr01: 0000001000 – 0000001999 Gr02: 0000002000 – 0000002999 Gr##: 00000##000 – 00000##999 2-7 What setting in EC-CS causes the system already during postings in accounting to check if the business area assigned in a document is valid for the respective company code? _____________________________________________________________ 2-8 Vendor IDES Chicago (company code C300) has delivered 1.1 Display the accounting document. Choose More data so that you can see the trading partner company you posted to. ##”. Partner Profit Center Business Area Partner business area C6111 (AS).000 USD worth of acetyl to IDES Palo Alto. 2-8. Additional account assignment details:     Profit CenterC4311 (Acetyl). enter a description.affiliated companies” (## = your course group number). The sales revenue is posted to account 8020## “Net sales . What you enter: Company code: Document date/posting date: C300 today’s date Check the company code by choosing Switch leading company code.2-6 Check to see which document type has been created for the realtime update method for dimension #2 “Business area consolidation gr. 6000 (Pharma) 4000 (Chemicals). Your instructor will tell you which tax rate to use for the posting. 2 Now display the other accounting documents.3 Where do the additional account assignments come from? 2-9 IDES Palo Alto (company code C100) has received an invoice for 800 USD from vendor CH## for the AS goods delivered. Post the incoming invoice in IDES Palo Alto.2-8. Your instructor will tell you which tax rate to use for the posting. What you enter: Company code: Document date/posting date: C100 today’s date Check the company code by choosing Switch leading company code. Partner Profit Center Business Area Partner business area C4311 (Acetyl) 4000 (Chemicals) 6000 (Pharma) Save your entries and make a note of the document number: ________________. The delivery was posted directly to the production expense account 4000## (## = your course group number). _________________________________________________________ 2-8. Additional account assignment details:  Acetyl)     Cost center C100C6111M (Manufacturing Product Profit CenterC6111 (AS). ______________________________________________________________ (C) SAP AG AC665 28 . C9902 (Admin. and check the business area account assignment for the line items “Receivables” and “Tax”. along with an additional account assignment to the appropriate profit center and trading partner profit center. ______________________________________________________________ 2-10. (C) SAP AG AC665 29 .1 Display the accounting document. Save your entries and make a note of the document number: ________________. C6111 (AS) 4000 (Chemicals). What you enter: Company code: Document date/posting date: C300 current posting date Check the company code by choosing Switch leading company code. The sales revenue is divided among the business areas as follows:  40 % to business area Additional account assignments: Profit Center Partner business area Partner profit center  60% to business area Additional account assignments: Profit Center Partner business area Partner profit center 9900 Administration. C6111 (AS).) 6000 (Pharmaceuticals). The sales revenue is posted to account 8020## “Net sales . C4311 (Acetyl) 6000 (Pharmaceuticals). Post the outgoing invoice to your customer account. Your instructor will tell you which tax rate to use for the posting.affiliated companies”.2-10 Additional Exercise: IDES Chicago has sold the raw material AS and certain services to IDES Palo Alto. In order to post the balance sheet readjustment.1 Calculating the balance sheet readjustment: Your instructor will select the company codes. and check the adjustment postings.3 Display the adjustment documents.2-11 You now have to prepare the closing operation Balance Sheet Readjustment. current year Create entries  Document Type: SU Posting date: last day of the month. you go to the IMG and define the reconciliation accounts 1449## (Receivables from Affiliates) and 1649## (Payables to Affiliates) along with the respective adjustment accounts. current year Posting period: current period Post to profit center: no Audit trail with line items  by documents  2-12. 2-12. (C) SAP AG AC665 30 . Adjustments (## = your group number + 40) Entry 2: Reconciliation account 1640## Payables to Affiliates (## = your group number + 40) Adjustment account 1649## Payables to Affiliates.2 Posting the balance sheet readjustment: Your instructor will delimit data as follows: Company codes: C100 and C300 Key date: last day of the month. Adjustments (## = your group number + 40) 2-12 Your instructor will start the “Readjust Balance Sheet” report for the entire course group. 2-12. (##= your group number + 40) Entry 1: Reconciliation account 1440## Receivables from Affiliates (## = your group number + 40) Adjustment account 1449## Receivables from Affiliates. Additional Exercise: Create a consolidation chart of accounts from your financial statement version. and copy it to “GR##”.2-13 Additional Exercise Theoretical Task: Which basic setting is required if you want to use the periodic extract method of data transfer for business area consolidation? _____________________________________________________________ _____________________________________________________________ 2-14 Additional Exercise: Periodic Extract: Check whether a financial statement version has been defined in the system. 2-15 (C) SAP AG AC665 31 . do not execute the report! 2-17 Additional exercise: Theoretical question: In which EC-CS menu will you find the report for importing the extract to Consolidation? (C) SAP AG AC665 32 .2-16 Additional Exercise Run the report for the balance sheet/P+L statement. Make the following settings on the selection screen:       All selections Company codes/business areas of your course group Extract for business area consolidation financial statement version (your instructor will name it) Reporting year: current year Extract to consolidation: at business area level Since you have not posted any data to the consolidation staging ledger yet. ” Reason: Company consolidation has not been activated.3. The values for profit center consolidation are passed on to the Consolidation system by means of rollups. (C) SAP AG AC665 33 . Preparation for Consolidation  Preparation in the Sender System  Activate data transfer The realtime update option has only been defined for the consolidation type “Business area consolidation. 1-2 Additional Exercise: Which method of data transfer can you use for business area consolidation in distributed systems? You can transfer data using the periodic extract method or the rollup method.25 Data Transfer methods-Solutions Unit: Data Transfer Methods: FI Data Topic: Data Transfer Methods 1-1 For which consolidation types has the realtime update option been defined? SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. If you use the realtime update. Furthermore. This is identical to the items in the EC-CS chart of accounts used. a consolidation financial statement version must be defined in FI. (C) SAP AG AC665 34 . the consolidation units must be formed on the basis of the operational organizational units. information on the partners involved must be available in the line items of the operational systems.1-3 Additional Exercise: Explain the difference between a realtime update and a periodic extract to the person sitting beside you. and imported by an EC-CS report. If you use the periodic extract method. The following prerequisites must be met for both transfer methods: To ensure that the values can be transferred to consolidation units. data is updated at the same time (realtime) in the consolidation staging ledger. extracted for the financial statement version by the FI report. In this case. the group account number must be stored in the operational G/L accounts. data is updated immediately (realtime) in the Consolidation system. In this case. and this FS version must be identical to the consolidation chart of accounts used in EC-CS. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Converting Organizational Units  Define ID combination rules (C) SAP AG AC665 35 . Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Assign integrated consolidation types to the dimensions 2-2 Check over the ID combination rules defined for business area consolidation. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration.Unit: Data Transfer Methods: FI Data Topic: Assignments in EC-CS 2-1 Check to make sure that the correct consolidation types have been assigned to your course group’s dimensions. 2-2.1 What are the naming conventions for consolidation units and groups (give examples)? Example of consolidation group: Hierarchy 01 (business areas): # Not assigned 4000 Chemicals 6000 Pharmaceuticals 8000 External Services 9900 Corporate and Others Hierarchy 02 (companies): C10000 IDES Palo Alto C20000 IDES New York C30000 IDES Chicago Example of consolidation unit: C20000-# C20000-6000 C20000-9900 IDES Company New York IDES New York Pharma IDES New York Corporate and Other (C) SAP AG AC665 36 . SAP Reference IMG  Enterprise Controlling  Consolidation  Preparation in the EC-CS Consolidation System  Copy Organizational Units  Evaluate the Master Data of the Organizational Units Mass change: SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  Organizational Units  Consolidation Units  Make mass changes To change/display a consolidation unit. which can be used later for your reporting. choose the menu option Consolidation units  Change. (C) SAP AG AC665 37 . and check over the assignment of consolidation units to ledger and fiscal year variant. and create a top consolidation group for each hierarchy. Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Transfer Organizational Units  Edit Hierarchies • • • • • • Create hierarchies H1 and H2 (group by business area and company). Define the data transfer method using the mass change function: R = Realtime update from FI. • You are prompted whether to generate sets. and display it. Save your entries. Confirm your data by pressing ENTER. 2-3. and generate the consolidation areas and units without restricting them to specific companies/consolidation business areas. and choose Business areas. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. • Enter the fiscal year variant K4 for the integrated consolidation units. The fields are located in the Goto menu:   Use the Assignment menu option to go to the fiscal year variant Use the Integration menu option to go to the data transfer method.1 Evaluate the master data. Place your cursor on the top node of hierarchy H1.2-3 Copy the hierarchy for dimension #2. Select the Same R/3 System and Hierarchy of business areas options. Please select the answer NO because of technical reasons. multiple data streams can be active. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. you can specify the appropriate active data stream in the rollup definition. Financial Statement Version  Copying FS Items  Copying FS Items from an FI Chart of Accounts  Compare FS items with accounts/cost elements 2-5 Data streams: Check to see if the data stream for your dimension #2 has been activated. whereas with rollups.2-4 Additional Exercise: Realtime update: Check the assignment of the accounts in operational chart of accounts CAUS to the items in consolidation chart of accounts 01. or a rollup is generated. When the data is updated. (C) SAP AG AC665 38 . With realtime updates. Group Chart of Accounts. Why is it possible to activate more than one data stream per dimension? SAP Reference IMG  Enterprise Controlling  Consolidation  Preparation in the EC-CS Consolidation System  Copy Data  Define Data Streams Select the desired consolidation type and choose “Data Streams”. Explain to the person sitting next to you why it is possible to define more than one data stream for each dimension. the system determines how each data record is updated in the Consolidation system on the basis of the data stream definition and other Customizing settings. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Tools: Cons Chart of Accounts. the system reads the company code/business area assignments that you defined in the Preparation for Consolidation section of the IMG. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Collection of Data  Realtime Update: Define Document Type Document type ZW is created. ##”. You still have to define the number range. number range 01 Define number range Insert interval Confirm any messages that appear by pressing ENTER. 2-7 What setting in EC-CS causes the system already during postings in accounting to check if the business area assigned in a document is valid for the respective company code? SAP Reference IMG  Enterprise Controlling  Consolidation  Integration.2-6 Check to see which document type has been created for the realtime update method for dimension #2 “Business area consolidation gr. Preparation for Consolidation  Preparation in the Sender System  Preparation and Activation of Data Transfer  Activate Data Transfer The data transfer method “Business area consolidation” allows you to run an additional check on the company code/business area combination in the document. Then save your entries. In order to do this. If you flag this option. a check in the Accounting system when postings are made in order to see if a business area defined in the document is compatible with the company code in question. (C) SAP AG AC665 39 . Choose :     Number ranges/Automatic reversal Version 100. Create the following number range interval: Number range: 01 To fiscal year: current fiscal year Group-specific range: Example: Gr01: 0000001000 – 0000001999 Gr02: 0000002000 – 0000002999 Gr##: 00000##000 – 00000##999 SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. If necessary. It was copied along with the dimension. enter a description. 2 Now display the other accounting documents. 2-8.000 USD worth of acetyl to IDES Palo Alto. 4000 (Chemicals). Choose More data so that you can see the trading partner company you posted to.3 Where do the additional account assignments come from? Trading partner company: master record Profit center: Posting document (C) SAP AG AC665 40 . C6111 (AS). The sales revenue is posted to account 8020## “Net sales .1 Display the accounting document. Enter the additional account assignments and scroll to the right:  Profit Center  Partner Profit Center  Business Area  Partner business area C4311 (Acetyl). SAP Menu  Accounting  Financial accounting  Accounts receivable  Document  Display  Environment  Accounting documents 2-8.2-8 Vendor IDES Chicago (company code C300) has delivered 1. 6000 (Pharma) Save your entries and make a note of the document number: ________________. What you enter: Company code: Document date/posting date: C300 today’s date Check the company code by choosing Switch leading company code.affiliated companies” (## = your course group number).8. Your instructor will tell you which tax rate to use for the posting. SAP Menu  Accounting  Financial accounting  Accounts receivable  Document entry  Invoice Post an outgoing invoice for company code C300 against affiliated vendor PA##. SAP Menu  Accounting  Financial accounting  Accounts receivable  Document  Display 2. The delivery was posted directly to the production expense account 4000## (## = your course group number). SAP Menu  Accounting  Financial accounting  Accounts payable  Document  Display  Environment  Accounting documents What you enter: Company code: Document date/posting date: C100 today’s date Check the company code by choosing Switch leading company code.2-9 IDES Palo Alto (company code C100) has received an invoice for 800 USD from vendor CH## for the AS goods delivered. C4311 (Acetyl) 6000 (Pharma) 4000 (Chemicals) Save your entries and make a note of the document number: ________________. Enter the additional account assignments and scroll to the right:  Cost center  Profit Center  Partner Profit Center  Business Area  Partner business area C100C6111M (Manufacturing Product Acetyl) C6111 (AS). (C) SAP AG AC665 41 . Post the incoming invoice in IDES Palo Alto. Your instructor will tell you which tax rate to use for the posting. C9902 (Admin. C6111 (AS). along with an additional account assignment to the appropriate profit center and trading partner profit center.2-10 Additional Exercise: IDES Chicago has sold the raw material AS and certain services to IDES Palo Alto. and check the business area account assignment for the line items “Receivables” and “Tax”. The sales revenue is posted to account 8020## “Net sales . C4311 (Acetyl) 6000 (Pharmaceuticals). Confirm the warnings issued by the system by pressing ENTER and post the invoice to your customer account. SAP Menu  Accounting  Financial accounting  Accounts receivable  Document entry  Invoice What you enter: Company code: C300 Document date/posting date: today’s date Check the company code by choosing Switch leading company code. The sales revenue is divided among the business areas as follows:  40 % to business area Additional account assignments: Profit Center Partner business area Partner profit center 9900 Administration.  60% to business area Additional account assignments: Profit Center Partner business area Partner profit center Your instructor will tell you which tax rate to use for the posting. SAP Menu  Accounting  Financial accounting  Accounts receivables  Document  Display (C) SAP AG AC665 42 .affiliated companies”. C6111 (AS) 4000 (Chemicals).1 Display the accounting document. Please make a note of the document number: ____________ 2-10. Post the outgoing invoice to your customer account.) 6000 (Pharmaceuticals). 2-11 You now have to prepare the closing operation Balance Sheet Readjustment. you go to the IMG and define the reconciliation accounts 1449## (Receivables from Affiliates) and 1649## (Payables to Affiliates) along with the respective adjustment accounts. In order to post the balance sheet readjustment. Adjustments (## = your group number + 40) (C) SAP AG AC665 43 . Enter chart of accounts CAUS. Adjustments (## = your group number + 40) Entry 2: Reconciliation account 1640## Payables to Affiliates (## = your group number + 40) Adjustment account 1649## Payables to Affiliates. Entry 1: Reconciliation account 1440## Receivables from Affiliates (## = your group number + 40) Adjustment account 1449## Receivables from Affiliates. (##= your group number + 40) SAP Reference IMG  Enterprise Controlling  Consolidation  Integration  Preparation in the Sender System  Further Settings for Business Area Consolidation  Financial Accounting  Store Accounts for Readjustments Select adjustment accounts for reconciliation accounts. current year Create entries  Document Type: SU Posting date: last day of the month.2-12 Your instructor will start the “Readjust Balance Sheet” report for the entire course group.1 Calculating the balance sheet readjustment: Your instructor will select the company codes. SAP Menu  Accounting  Financial accounting  Accounts payable  Document  Display  Environment  Balance sheet readjustment (C) SAP AG AC665 44 .2 Posting the balance sheet readjustment: Your instructor will delimit data as follows: Company codes: C100 and C300 Key date: last day of the month. SAP Menu  Accounting  Financial accounting  General ledger  Periodic processing  Closing  Regroup  Balance sheet readjustment 2-12. current year Posting period: current period Post to profit center: no Audit trail with line items  by documents  SAP Menu  Accounting  Financial accounting  General ledger  Periodic processing  Closing  Regroup  B/S readjustment  Post 2-12. and check the adjustment postings.3 Display the adjustment documents. SAP Menu  Accounting  Financial accounting  General ledger  Periodic processing  Closing  Regroup  B/S readjustment  Calculate 2-12. SAP Reference IMG  Financial Accounting  General Ledger Accounting  Accounting Transactions  Closing  Documenting  Define Financial Statement Versions 2-15 Additional Exercise: Create a consolidation chart of accounts from your financial statement version. and copy it to “GR##”. Financial Statement Version Copying FS Items  Copy item hierarchies from financial statement version (C) SAP AG AC665 45 .2-13 Additional Exercise Theoretical Task: Which basic setting is required if you want to use the periodic extract method of data transfer for business area consolidation? A financial statement version must be defined in the sender system. You might have to define the currency of the consolidation staging ledger. Preparation for Consolidation  Preparation in the Sender System  Preparation and Activation of Data Transfer  Activate Data Transfer 2-14 Additional Exercise: Periodic Extract: Check whether a financial statement version has been defined in the system. Group Chart of Accounts. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. and assign it to consolidation units. you define the data transfer method Periodic extract. and the items in this FS version must be the same as the items in the consolidation chart of accounts in the Consolidation system. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Tools: Cons Chart of Accounts. Preparation for Consolidation  Preparation in the Sender System  Preparation and Activation of Data Transfer  Periodic Extract from the Consolidation Staging Ledger  Maintain the currency of the consolidation staging ledger In the IMG. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. (C) SAP AG AC665 46 .2-16 Additional Exercise Run the report for the balance sheet/P+L statement. Make the following settings on the selection screen: All selections Company codes/business areas of your course group Extract for business area consolidation Financial statement version KONS Reporting year: current year Extract to consolidation: at business area level Since you have not posted any data to the consolidation staging ledger yet. do not execute the report! SAP Menu  Accounting  Financial accounting  General ledger  Periodic processing  Closing  Report  General Ledger Reports  Balance sheet/P&L/Cash flow  General  Actual/Actual Comparisons  Balance sheet/P&L Choose Execute       2-17 Additional Exercise Theoretical Question: In which EC-CS menu will you find the report for importing the extract to Consolidation? SAP Menu  Accounting  Enterprise Controlling  Consolidation  Data Collection  Reported financial data  Periodic Extract Choose “Integrated Consolidation Type: Business Area Consolidation”. 4 Consolidation Activities and Reporting Contents q Working Through Consolidation Activities q Reporting © SAP AG 1999 (C) SAP AG AC665 1 . 4. you will be able to:  Give reasons for having consolidation within an enterprise  Name the various steps involved in consolidation © SAP AG 1999 (C) SAP AG AC665 2 .2 Consolidation Activities and Reporting: Unit Objectives At the conclusion of this unit. 3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 .4. 4.4 Consolidation Activities and Reporting: Business Scenario  You attend a presentation where you learn about the various steps involved in consolidation. and you test some of the Consolidation functions yourself  You have also been asked to find out if there are any useful key figure reports that can be used to analyze consolidated business area data © SAP AG 1999 (C) SAP AG AC665 4 . 5 Preparing Consolidation Activities and Reporting  FI      Document reconciliation Adjustment  EC-CS  Data monitor: Balance carried forward Enter additional financial data Consolidation monitor: Consolidation activities and reporting  © SAP AG 1999 FI: You carry out the document matching with partner company codes and the adjustment of the business areas within the periodic closing operations.  EC-CS: You execute the consolidation with the help of configured tasks.  (C) SAP AG AC665 5 .4. 000 . Liabilities 10. Consequently. the version and the consolidation chart of accounts. the first task (of the data monitor) in a given year is to carry forward the balances from the previous year to the current year. but not to themselves (this is the case with the appropriation of retained earnings in the balance sheet).  The way in which a balance is carried forward will depend on the item category in question. income statement items are not carried forward.  If items are to be carried forward. 1....  The balance is carried forward on the basis of the dimension (per consolidation group or for individual units).000 n+1 © SAP AG 1999 The closing financial statement of a year must be the same as the opening financial statement of the following year. In the standard system.6 Carrying Forward Balances Carry Forward Closing Balance Old Year Opening Balance New Year Balance Sheet Assets 10. In the standard system.  (C) SAP AG AC665 6 . Liabilities 10.000 Income Statement Balance carried forward 1. you proceed as follows: All financial statement items are carried forward to themselves. the previous year's annual net income must be carried forward to the balance carried forward of the current fiscal year. You can specify whether statistical items should be carried forward to themselves.000 Income Statement Net inc. You do this in the master record of the item in question. if an appropriation of retained earnings is required after the income statement has been drawn up.4..000 Balance Sheet Assets 10. However. you will have to make other Customizing settings.000 . 4.7 Methods of Transferring Data to EC-CS Single Document on l in e Local Ledger Rollup R/2 Periodic Extract NonSAP Periodic EC-CS EC- Manual Data Entry Layout offline Flexible Upload 1 2 3 MS Access MS Excel Profit and Loss A Sales B 50 C DB © SAP AG 1999 Data transfer from SAP Systems  Realtime update from other SAP components within the same SAP System  Rollup from an FI-SL ledger  Periodic extract from FI-GL  Periodic extract from an FI-LC system  Rollup from another EC-CS system  Periodic extract from R/2 (planned)  Data transfer from non-SAP systems  Flexible upload of data extracts from non-SAP systems  MS Access offline data entry with an additional MS Excel interface  (C) SAP AG AC665 7 . and the investee unit.8 EC-CS: Entering Additional Financial Data  Consolidation of Investments: .4.  (C) SAP AG AC665 8 . in accordance with the group's point of view.  Elimination of Interunit Profit and Loss in Transferred Inventory: You eliminate interunit profits and losses resulting from the transfer of inventory items.Changes in investments  Elimination of Interunit Profit and Loss in Transferred Inventory: .Supplier data © SAP AG 1999 Consolidation of Investments: The task called "Data Collection" involves entering additional financial data for first consolidation and subsequent consolidation. A positive difference represents interunit profit. The IU profit or loss is the difference between the book value on the individual financial statement and the production cost.Changes in investee equity . which is eliminated by making an adjustment down to the lower level.Inventory data . The elimination data is based on the data of the inventory-managing and supplier unit. Changes in investee equity and investments are entered in additional financial data for both the parent unit.  In EC-CS.9 Determining Contra Items   Consolidation task Define contra item/retained earnings Edit item: Assign contra item Consolidation Items Item 1201 2011 Contra item Receivables Payables 2011 1201 Consolidation Monitor Execute consolidation task: Item substitution and calculation of retained earnings 1201 Receivables 2011 Payables © SAP AG 1999 OLD -1000 0 NEW 0 -1000 When postings are made to bank accounts.  The transfers are stored in the totals database (at posting level '_' (space).4. In the financial statement version. if the contra item is entered in the FS item table.  (C) SAP AG AC665 9 . This means that the account balance cannot be represented under current assets. the overall balance can be switched to the credit side in FI. the contra item is used to assign the overall account balance automatically to the liabilities side of the item "Short-term payables". this means that it is possible to automatically transfer the balance of the corresponding item when the debit/credit sign changes. the financial data posted is reconciled at the company code/business area or company code/profit center level.  In EC-CS. Assets Liabilities 5050 (1) (2) Retained 100. the consolidation items are updated every time a posting is made.  If you start this task in an integrated dimension for consolidation type 2 (business area consolidation) or 3 (profit center consolidation).   (C) SAP AG AC665 10 .  You start this task after end-of-month closing. You manage the values for annual net income and retained earnings for the same item in the consolidation chart of accounts. you post this difference to selected items in the financial statements and income statement. when all the postings in a period are closed.4. This will then mean that the total of all balance sheet items and income statement items will be zero. Instead. you do not need to execute this task. they are calculated as the balance of all expenses and revenues. respectively. If you use the periodic extract method for all consolidation units. Services Assets Liabilities 30 Transaction (1): Dr: Expense (Services) Cr: Payables (Chemicals) IDES Chicago.10 Calculating Retained Earnings: Selected Items IDES Chicago.(3) If you use the realtime update method. Chem. and post the retained earnings in the Consolidation system.earnings (3) Expense Revenue Expense 50 Revenue (1) (2) 100 (3) Annual net income 50- Business Area Clearing (2): Business Area Clearing (2): Balancing Adjustment Item: Balancing Adjustment Item: Dr: Business Area Clearing (Chemicals) Dr: Business Area Clearing (Chemicals) Cr: Business Area Clearing (Services) Cr: Business Area Clearing (Services) © SAP AG 1999 Dr: Annual Net Income 100 Cr: Retained Earnings 100. Retained earnings are not posted in FI. Error Across Consolidation Units Book value Sum of income statement detailed values Companies © SAP AG 1999 Warning Across Dimensions --- --- Profit Centers The concept of user-defined validation is employed in many SAP applications.   (C) SAP AG AC665 11 . Validations are available in addition to the standard checks in the EC-CS posting transaction. Statement 1 Cons. Current yr.4.11 Validation Posting Fin. Unit Trading partner GS3 not allowed Assets Liabilities Previous yr.  Validation across consolidation units or dimensions is essential for ensuring reconciled data in legal and management consolidation. You can run validation when processing the following:  Document header  Individual document line  Complete document  Validation for a consolidation unit typically takes place after data collection (in local currency) and currency translation (into group currency). You can define any of the commonly-used translation methods for your chart of accounts (temporal method.0 1000 1000 1000 H = 3.12 Currency Translation Translation Sets Assets Inventory Exchange Rates 2001 Historical Current rate Local Fixed assets Buildings Machinery Inventory Raw mat. You can define several methods for translating data reported by your consolidation units.0 1500 1500 S = 2. 500 500 500 Reference Group S = 2.0 1000 Diff. for each unit you specify a single translation method. The type of currency translation you use depends on the relationships between your corporate group and its individual consolidation units. and so on). and also on the economic situation in the countries where these units are based. 1. current-rate method.0 500 500 S = 2. However. Currency translation is based on translation methods.  (C) SAP AG AC665 12 .0 0 Treatment of Currency translation difference © SAP AG 1999   The currency translation task enables you to translate financial data reported by consolidation units in their local currency into the currency of the consolidation group.4. . Collect data (Collect. .4. and tasks can be started directly from within the monitor. SFD). FD). irrelevant  Last changed by/on (date).. They are grouped together into task groups that contain information on the sequence of the tasks. Translate currency (Trans).. Overall status of consolidation units and consolidation groups  Initial stage. Services Corporate Other  User-defined tasks  Traffic light for "overall" status  Perform tasks in test mode/update mode  Audit information  Filter options © SAP AG 1999       The data monitor and the consolidation monitor control the status of the consolidation process. .  Block/unblock tasks..13 Data Monitor Tasks Hierarchy of Groups/Units Overall status BCF Collect.). . OK.  Execute tasks in test/update mode. . Validate financial data (Val. In our example. the following tasks have been defined: Carry forward balance (BCF). Calculate retained earnings (Calc. Validate standardized financial data (Val. errors. unblocked. errors. Task groups are assigned to dimensions.FD SE Trans Val. number of errors/warnings Actions that are possible:  Open/close period. Standardizing entries (SE). blocked..SFD - Segments + Chemicals Pharmaceuticals + + Europe USA APA . open. open. Tasks are user-defined. Each monitor can cover an unlimited number of tasks.  Execute all tasks up to next milestone.RE).. OK Detailed status per task  Initial stage. Calc RE Val. . (C) SAP AG AC665 13 ... CG Services CG Corporate/ Other Milestone CG: Consolidation Group © SAP AG 1999 (C) SAP AG AC665 14 . El. Validation GC - Hierarchy 1 + + + CG Chemicals CG Pharma. Pay/Rec.4.14 Consolidation Monitor Tasks Hierarchy of groups Overall status El.income Invest. Inv. (C) SAP AG AC665 15 . 20 50 Pharma/ Palo Alto .....20 Chemicals/ Chicago Item Amount Partner . .15 Interunit Elimination IDES Group Chemicals Pharmaceuticals .. Item Amount Partner Pay....4.. Chicago Palo Alto Chicago New York .. Item Amount Partner Receiv. .. Pay. Receiv.. -60 Chemicals/ Chicago © SAP AG 1999  Interunit elimination is based on information on the partner consolidation unit.. . 1 CU A / B CU A / C CU B / C . 4711 Document date: 3/22/96 Elim. Financial Statements Document Matching CCd 1 /CCd 2. of IU Pay. subsequent maintenance of reference number).  (C) SAP AG AC665 16 ./Receiv.350 Diff. SAP's Financial Accounting application enables efficient document matching to be run during the fiscal year.  Document matching is a process comprising several steps:  Documents with the same reference number are identified as matches.  The remaining documents are displayed in two windows and processed manually by the user (by means of mails to other users.  You can also access the document matching program from the transaction for reconciling balances when you eliminate IU payables and receivables. Ref. 100 50 Drilldown Accounting Document 1200 .4.) © SAP AG 1999 The reconciliation of group-internal payables and receivables is often a time-consuming task. The assignments of customers and vendors to companies are used to select and display all open items. This enables users to perform drilldown reporting right down to the FI document level.16 Document Matching EC-CS Consolidation Cons Unit Master Record Elimination method Prep. Bal.no. thereby reducing the time required for the elimination. no. whose values differ below a tolerance defined by the user. 2 700 .600 400 Bal.1000 200 Open Item Master Record Still to be assigned: CCd 1 CCd 2 Customer/ vendor Item details Elimination Entry Mail Notes Assignment (Ref. notes. of Indiv.  The system then sorts into groups those documents posted with the same document date.  The consolidation user responsible for a particular company code specifies one or more "partner" company codes with which reconciliation is to be run. ABC analyses. user-friendly. interactive connection (ensures current data) with R/3  (C) SAP AG AC665 17 . comments. e-mail.4. integration with MS Office  Journal entry reports:  Flexible selection and hierarchical display of all consolidation documents  Interactive Excel:  Logons to R/3 from within MS Excel. standard SAP tools for creating reports  Special handling of version and time dependencies for consolidation groups  Interactive drilldown reports:  Interactive navigation in the data cube of Consolidation  Exception reporting.17 Information System Report Writer Report Painter Drilldown Reports Journal Entry Reports Reports  Master data  Control data  Financial data Interactive Excel 1 2 3 A Revenues B 50 C Consolidation © SAP AG 1999 Transfer to EC-EIS The Report Writer and Report Painter:  Powerful. 18 Consolidation Activities and Reporting: Unit Summary You are now able to:  Give reasons for having consolidation within an enterprise  Name the various steps involved in consolidation © SAP AG 1999 (C) SAP AG AC665 18 .4. Which selected items have been defined for your dimension? Start the data monitor from the EC-CS application menu. and then transferred to the corresponding consolidation item. You also test data transfer by using key figure reports. then close the task. Look at the log. Choose Show tasks. you can test working through a few consolidation activities. the annual net income is calculated in the financial statement first. Close all tasks in the data monitor except for the Retained Earnings/Contra Item task. Place your cursor on a consolidation group below the Retained Earnings/Contra Item task. What is the purpose of this task? Selected items for consolidated statements are defined in the consolidation chart of accounts. and choose Update run. 1-2 1-3 (C) SAP AG AC665 19 . you will be able to:  Name and work through some consolidation activities Now that you have made preparations for transferring data to the Consolidation system.19Exercises Unit: Consolidation Activities and Reporting Topic: Consolidation Activities At the conclusion of these exercises. The values of these selected items are not transferred directly from the transaction data in the individual financial statements to the Consolidation system. Execute the task Retained Earnings/Contra Item for your dimension #2 (business area consolidation). For example.4. 1-1 Check in the Implementation Guide to see if a task: entitled Contra item/Retained earnings item has been defined. Choose • • Show tasks Hide texts 1-6 Place your cursor on a consolidation group below the task “Elimination of IU payables and receivables”.” You still require a number range before you can run an update run for the tasks. Look at the log. Define the number range interval for number range 03 for document type 21 (elimination of IU payables and receivables) and for document type 22 (elimination of IU revenue and expense). Look at the log.4 When you copied the dimension.1. 1-5 You have copied document types and number ranges in your dimension so that you can execute the tasks “Elimination of IU payables and receivables” and “Elimination of IU revenue and expense. This rule affects the validation of reported and standardized financial data. Execute task I2100 (elimination of IU payables and receivables). you did not copy the organizational units as well. and choose Update run. and define validation rule CS10000 for the master data. What is the quickest way of changing this data en masse? You change the consolidation units and save the results. In the Consolidation Monitor. then close the task. execute the task “Elimination of IU payables and receivables” (I2100) for your dimension #2. you now need to go into EC-CS Customizing. Then you execute the task Validate Standardized Financial Data in the data monitor. For this reason. (C) SAP AG AC665 20 . then close the task. and then transferred to the corresponding consolidation item. Which selected items have been defined for your dimension? SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  Financial Statement Items  Define Selected Items for Posting Selected items: Annual net income Retained earnings . Deferred income taxes (debit): 150100 (deferred tax assets) Deferred income taxes (credit): 225200 (deferred taxes payable . The values of these selected items are not transferred directly from the transaction data in the individual financial statements to the Consolidation system. Cr): 251100.state) Deferred income taxes (income statement): 350100 (Income tax provision . Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Collection of Data  Contra item/Determination of retained earnings: Define task Task 1110 transfers the contra items and retained earnings determined by the FI balance sheet report to the corresponding items in the EC-CS consolidation chart of accounts. prior year (Dr.deferred) Remaining items Balance sheet business area clearing: 239999 Retained earnings.4.20Solutions Unit: Consolidation Activities and Reporting Topic: Consolidation Activities 1-1 Check in the Implementation Guide to see if a task: entitled Contra item/Retained earnings item has been defined. subitem 120 (C) SAP AG AC665 21 . What is the purpose of this task? SAP Reference IMG  Enterprise Controlling  Consolidation  Integration.current year: 251200. 1-2 Selected items for consolidated statements are defined in the consolidation chart of accounts. subitem 120 Annual net income: 390000 Deferred income taxes. the annual net income is calculated in the financial statement first. For example. Choose Show tasks. What is the quickest way of changing this data en masse? SAP Reference IMG  Enterprise Controlling  Consolidation  Master Data  Organizational Units  Consolidation Units  Make Mass Change After you assign the validation rule to the consolidation units. and then close the task. run the task Validate Standardized Financial Data. Define the number range interval for number range 03 for document type 21 (elimination of IU payables and receivables) and for document type 22 (elimination of IU revenue and expense). SAP Menu  Accounting  Enterprise Controlling  Consolidation  Data  Monitor 1-4 When you copied the dimension. For this reason.” You still require a number range before you can run an update run for the tasks. This rule affects the validation of reported and standardized financial data. Data: Version: Number range: Year: From number: To number: 100 03 Current year 3000000000 0399999999 SAP Reference IMG  Enterprise Controlling  Consolidation  Consolidation Functions  Automatic Posting  Interunit Elimination  Define Document Types (C) SAP AG AC665 22 . 1-5 You have copied document types and number ranges in your dimension so that you can execute the tasks “Elimination of IU payables and receivables” and “Elimination of IU revenue and expense.1-3 Start the data monitor from the EC-CS application menu. Close all tasks in the data monitor except for the Retained Earnings/Contra Item task. Look at the log and then close the task. Look at the log. and choose Update run. you now need to go into EC-CS Customizing. Execute the task Retained Earnings/Contra Item for your dimension #2 (business area consolidation). you did not copy the organizational units as well. and define validation rule CS10000 for the master data. Place your cursor on a consolidation group below the Retained Earnings/Contra Item task. execute the task “Elimination of IU payables and receivables” (I2100) for your dimension #2. Choose  Number ranges/Automatic reversal  Version 100. then close the task. Execute task I2100 (elimination of IU payables and receivables). 1-7 In the Consolidation Monitor. and choose Update run. Then save your entries. and choose Update run. execute the task “Elimination of IU revenue and expense” (I2200) for your dimension #2. SAP Menu  Accounting  Enterprise Controlling  Consolidation  Consolidation Tasks  Monitor Choose   Show tasks Hide texts Place your cursor on a consolidation group below the task “Elimination of IU payables and receivables”. Look at the log.Select document type 21 or 22. 1-6 In the Consolidation Monitor. (C) SAP AG AC665 23 . number range 03  Define number range  Insert interval Confirm any messages that appear by pressing ENTER. SAP Menu  Accounting  Enterprise Controlling  Consolidation  Consolidation Tasks  Monitor Choose   Show tasks Hide texts Place your cursor on a consolidation group below the task “Elimination of IU revenue and expense”. Execute task I2200 (elimination of IU revenue and expense). Look at the log. (C) SAP AG AC665 24 . then close the task. 5 Integrated Data Transfer: EC-PCA Contents  Profit Centers and Profit Center Hierarchy  Origin of Profit Center Values  Integration of EC-PCA and FI  Preparation for Profit Center Consolidation  Partner Relationships © SAP AG 1999 (C) SAP AG AC665 1 . © SAP AG 1999 (C) SAP AG AC665 2 .5. you will be able to:  Prepare the data transfer for management consolidation.2 Integrated Data Transfer: EC-PCA Unit Objectives At the conclusion of this unit. 3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 .5. 5. © SAP AG 1999 (C) SAP AG AC665 4 .4 Integrated Data Transfer: EC-PCA Business Scenario  The company puts you in charge of preparing profit center consolidation. Assign. work in process. Sheet Account P&L Account Acc. return on investment) for each profit center. In EC-PCA.  For the purposes of profit center consolidation.  (C) SAP AG AC665 5 . Company Code FI-GL General Ledger SD MM Bal. (The presentation of this processes is in the appendix.)  If the receivable is paid. In this case. This enables you to analyze financial key figures (profit-sales ratio. as required: for example assets. The aim of this process is to create financial statements for profit centers in which the internal relationships between the consolidation units of these profit centers are eliminated. consolidation groups are formed for the profit centers to be consolidated. material stocks. Other FS items can be transferred either periodically or online. receivables and tax in FI are reclassified to the profit centers at the period end by means of the "Balance sheet adjustment" program.5. The consolidation units are generated together with the companies. to CO object  Assets  Receivables  Payables  WIP  Inventory  Other CO Controlling Cost Center Order Project © SAP AG 1999 Example: Company sells a product to an affiliated company. receivables and payables. data can be transferred by rollup.5 Data Stream CO-PA COHR EIS BP Executive Business Information Planning System EC-CS Consolidation PCA Data Consolidation Unit Profit Center/Company EC-PCA Profit Center Accounting Profit Center. the balance sheet items "Receivables/payables" are then periodically transferred for each company code. functional (production.  You can also create and evaluate alternative hierarchies.6 Profit Center Hierarchy Group SEG A Pharma & Chemicals SBU Chemicals DIV Medical Substances Acetyl H-Insulin SBU Pharmaceuticals DIV Analgesics SEG B Services SEG C Corporate and Others Strategic Business Unit Division DIV Diabetical Products Mono Combo H-Insulin A-Insulin Product Line Paracetamol AS PCM Insulin H-Insulin Product © SAP AG 1999 The profit center is an area of responsibility within the enterprise for which an internal computation of income can be carried out.geographical (locations. subhierarchy. If your cost center structure is similar to your profit center structure. you can create your profit center standard hierarchy by copying the the cost center standard hierarchy. or individual profit centers as selection criteria in the information system. . divisions) .according to matrix type (product/region)  In Profit Center Accounting. P&L accounts.product related (material groups.  (C) SAP AG AC665 6 . sales and distribution). and balance sheet items) as evaluation factors. plant). . You can use accounts (cost/revenue elements. You can group your enterprise according to the following criteria: .5. you create the top node or group of the standard hierarchy. you can use a complete standard hierarchy.  When you maintain the settings for cost accounting.  You can assign account assignment objects from Logistics and Financial Accounting to the profit center. The data in the dummy profit center can be forwarded to the actual profit center by means of assessment or distribution.  Control parameters for actual postings: Activating profit center consolidation in EC-CS enables you to determine (in EC-PCA) for a client's affiliated companies which partner profit centers have to be reread from the purchase order/sales order.  Dummy Profit Center: This is used in all postings to objects that are not assigned to a particular profit center. When you maintain the master data. profit centers. Postings to the dummy profit center also enable you to detect missing assignments.7 Global Settings: Profit Center Settings Controlling Area Settings PrCtr 1 Master Data: Profit Center / Dummy Profit Center PrCtr 4 PrCtr 2 PrCtr 3 Assignment of Account Assignment Objects PrCtr 5 Settings Maintaining the Control Parameters for Actual Postings and Planned Values © SAP AG 1999 You store the most important control parameters and assignments in the settings for the controlling area. and check the assignments. you can create the standard hierarchy.5. as well as profit center groups.   (C) SAP AG AC665 7 . Company Code Controlling Area Company Code FI Palo Alto  Chicago Profit Center C6111  New York ECECCS Limited Number of Consolidation Units © SAP AG 1999 When you create a profit center.  The consequence of this for postings in FI is that only permitted profit centers can be posted.8 Profit Center: Master Record Fixed Assignment Profit Center .  In EC-CS.  (C) SAP AG AC665 8 . only the consolidation units of the profit centers and companies that transact in the company code(s) are generated.5. you can choose the company code(s) in which the profit center should be booked. return on investment) for each profit center. and structured according to cost and revenue elements. (C) SAP AG AC665 9 . The balances in the individual balance sheet items (for example. work in process. receivables and payables) can likewise be posted to the assigned profit centers. When an assignment to an account is carried out. If the structure of EC-PCA is sales oriented. This enables you to analyze financial key figures (profit-sales ratio. the profit center is determined by means of the combination plant/material. This supports a profit center structure that deviates from the product related dimension.9 Profit Center Assignment Profitability Segment Cost Center Sales Order Cost Element Profit Center Asset Internal Order. the data is automatically updated statistically to the assigned profit centers. The same rules are applied in the case of sales orders. In the case of internal goods movements.5. This supports a product oriented or regional profit center structure. assets. however. With the help of the assignment monitor for the selected assignment objects. Network Maintenance Order Production Order Material © SAP AG 1999      The master data of each object to which costs or revenues are assigned contains an assignment to a profit center. material stocks. incorrect assignments can be detected and corrected. Deliveries and services between profit centers are also handled. you can also use substitution rules to determine the profit center from the fields in the sales order header. or from the sales order item. Project. Costing © SAP AG 1999 • Company Code C100 • Business Area 4000 • Profit Center C4311 C4311 Example of how a profit center is derived: For cost accounting purposes.  In this case. the opening balance always has to be transferred for the first time with a transaction.. Both CO objects are assigned to a company code.10 Profit Center Origin: Asset Master Record Asset 1 Acquisition and Production costs Transfer data online/ periodically ECPCA Time-dependent Data Business Area Cost center Order 4000 C100C4311M FI-AA Cost Center C100C4311M Post Depreciation • Company Code C100 • Business Area 4000 • Profit Center Order C4311 C4311 ########## Depreciation Areas Trade Law . and a business area when profit center accounting or business area balance sheets is activated. The profit center receives the asset balance sheet value of the acquisition and production costs when the balance sheet items are transferred. you can choose either periodic or online updating of the balance sheet accounts in EC-PCA. and the profit center is derived on the basis of this and assigned values.  (C) SAP AG AC665 10 ..  When acquisition and production costs are posted to the asset. an asset can be assigned either to a cost center or to an order. However.5.  Periodic depreciation is posted to cost center or internal order. the profit center and the business area are derived on the basis of the cost center or the order. a profit center. To meet these demands.11 CO and FI Reconciliation Profit Center 1 Cost Center 1 Functional Area 1 Assessment Profit Center 4 Cost Center 4 Functional Area 4 Company Code / Business Area / Functional Area Expense and Revenue Accounts / Cost and Revenue Elements Reconciliation Ledger © SAP AG 1999 Value flows in Controlling and their effects on a group's balance sheet/profit and loss accounts must be transferred to FI. CO data is summarized and analyzed in the reconciliation ledger. and posted to FI. these transactions can be entered automatically in CO.  The reconciliation ledger performs the following tasks:  It summarizes reconciliation of the CO accounts with FI  It forms the basis for creating allocation postings in the general ledger when there are value flows between two functional areas.  If allocations were carried out across functional area.  (C) SAP AG AC665 11 . You require this information if you want to calculate profit and loss using cost of sales accounting.5. 5.12 Preparation for Profit Center Consolidation © SAP AG 1999 (C) SAP AG AC665 12 . When you have done this.13 Global Session Parameters ConsGroups FS Items Data Monitor ConsMonitor Infosyst m Parameters e ECCS Global Parameters Dimension Version Year Period Cons C/A Ledger 03 Profit Center 100 Actual Data YYYY 012 01 US US Chart USD © SAP AG 1999   If you wish to prepare profit center consolidation. (C) SAP AG AC665 13 . you first have to create the appropriate dimension.5. you can go on to specify the global session parameters. . the profit centers are likewise represented as consolidation groups. In consolidation. and are used for the reconciliation with the units of company consolidation.. When you create the profit center. (C) SAP AG AC665 14 . This allows you to prevent all the profit centers from being combined with all the companies when the hierarchy is automatically created. which show the standard hierarchy or alternative hierarchies from EC-PCA. .5.. the dark-shaded business units correspond to nodes in the profit center hierarchy. AS ASPalo Alto PCM .14 Profit Center Consolidation: Hierarchy H1 SEG A Pharma & Chemicals SBU Pharmaceuticals DIV Painkillers DIV Insulin Consolidation Groups . In consolidation. In profit center consolidation. these are used to generate the consolidation groups. you can specify the company codes in which the profit center is used. you should check over the combination of company codes and profit centers..  You can generate consolidation groups that show the companies. Mono Combo H-Insulin .. and this allows you to focus on the relevant units and groups. the Palo Alto company uses the profit center 'AS'.... The consolidation units are generated on the basis of the combination of companies and profit centers. Finally. In the above example. Insulin InsulinPalo Alto H-Insulin Consolidation Units InsulinNew York © SAP AG 1999      In our example. you have a number of options for generating hierarchies:  You can generate one or more consolidation group hierarchies. the SAP purchase order number in the order header is entered as partner information. If the purchase order items are assigned to several profit centers.  The partner profit center and trading partner are determined on the basis of the customer or vendor master record.  When the customer invoice is transferred to Financial Accounting the source purchase order is also accessed.5. This data is checked in the sales order if the customer is a trading partner whose partner information is to be determined.  (C) SAP AG AC665 15 . For this purpose. and posted to profit center accounting in differentiated form. These eliminations require partner information on the profit center/company level. you can determine the partner profit centers by means of substitution rules or via user exit. the sales revenue line is split according to partner profit centers. and the SD or MM modules have to be used. thus creating a link between the sales order and the purchase order on which it is based.15 Partner Relationships: EC-PCA BU 4000 Chemicals DIV 43 Medical Substances DIV 41 Packaging Material BU 8000 Services DIV 81 Pharma Market Research Medical Substances & Packaging Material Consolidation Parent C100 Palo Alto Medical Substances & Packaging Material Subsidiary C300 Chicago Subsidiary C200 New York Insulin Products for Distribution BU 6000 Pharma DIV 61 Painkillers DIV 62 Insulin GE 6000 Pharma DIV 62 Insulin © SAP AG 1999 To enable consolidated results to be identified on any node in the profit center hierarchy. Otherwise. the companies have to be stored in a central SAP System. the sales between profit centers of the same consolidation group) have to be eliminated. and updated to profit center accounting.  When the sales order for the purchase order is created. The relevant purchase order item is specified in the order items. interunit sales (in other words. If a default value is found for the target field.  For each derivation step. you can maintain derivation rules that can be used to determine the partner profit center in purchasing or in sales. material number. and the other derivation rules are not run. The partner profit center is derived from the following source fields or a combination of these fields: Purchasing: vendor number. trading partner. Sales: vendor number.  You can also use the derivation rules to determine the partner profit center in a client.16 Logistics: Partner Profit Center Distributed Systems: Preparation for Consolidation in EC-PCA :  Specify default partner profit center in purchasing and sales Settings Actual Postings © SAP AG 1999 If the partners are in different clients or systems.5.  (C) SAP AG AC665 16 . this is transferred. material number. trading partner. sender profit center. which the system runs sequentially. you can maintain several derivation rules. sender profit center. and specify the companies for whom the partner profit center is to be determined by reading the source purchase order or the sales order. If the relevant enterprise then occurs as a partner.5. then you store the affiliated companies in EC-PCA. In business area consolidation. the corresponding trading partner area is also determined according using this procedure. (C) SAP AG AC665 17 . An example of reading the partner profit center is given in the appendix (stock transport order). the key figure "Purchase order/Sales order" can be used to decide whether partner business area and partner profit center can be derived on the basis of the purchase order or the sales order. The reading function is activated for each trading partner in EC-PCA Customizing.17 LO Partner Assignment: One-Client System Customer Company Code C100 PrCtr C6111 Purchase Order (1) SD-Worklist Supplier Company Code C300 PrCtr C4311 Delivery (2) Company C30000 Profit Center C4311 Company C10000 Profit Center C6111 Picking (3) Goods Receipt (5) Incoming Invoice (7) Goods Issue (4) Customer Invoice (6) © SAP AG 1999      If companies are in the same client of your system. and if you use the SAP MM or SD components. for example.5. receivables and payables) can also be assigned to profit centers. The balance sheet profit center is booked manually. work in process. material stocks. Example of use of an additional balance sheet profit center: Two profit centers are located in one building. or to the enterprise as a whole via the profit center "Corporate and Others" To check the correct assignment of profit centers. since it carries product related values. the increase in costs would not fall to the remaining profit center or the product level. you can use the balance sheet profit center to evaluate key figures. (C) SAP AG AC665 18 . return on investment) for each profit center. and can then post the rent to it. on the division level. On the division level. you will carry out the following activities at the end of the period: check that no dummy profit centers have been posted and that the profit center "Corporate and Others" contains only postings that cannot be allocated directly. This enables you to analyze financial key figures (profit-sales ratio. If one of the two profit centers were to leave the building.18 Balance Sheet Profit Centers Consolidated Group SEG Pharma & Chemicals SEG Services SGE Pharma DIV Diabetic DIV Analgesics SGE Chemicals BIL BU Pharma Balance Sheet Profit Center Pharma Balance Sheet Profit Center Analgetics Product Line Mono BIL DIV Analgesics Profit Center AS Profit Center PCM © SAP AG 1999       The balances in individual balance sheet items (for example. you can create a balance sheet node and a balance sheet profit center belonging to it. Instead. The costs for the building and its maintenance cannot be allocated directly to the transaction profit center. such as RONA (Return on Net Assets). This allows you to decide whether the acquired shares of a subsidiary should be assigned completely to a division. fixed assets. you can define which accounts or account ranges should be transferred on the basis of transactions. For example. If you find that the determination of a profit center is not differentiated enough. you can also maintain derivation rules that can be used to determine the default profit center. If no profit center is set in a posting. Depending on a subsequent evaluation using key figure reports. This profit center includes values that do not influence the transaction result of the profit center. it is not appropriate to carry investment values on this level. Bank/Cash on hand Receivables Inventory Investments Fixed assets Payables Long-term payables Tax Equity Transaction Additional Profit Center Balance sheet PC No X X No X X No No No No X X X X X X No X © SAP AG 1999      For the purpose of comparing financial statement values with profit center values.5. you can carry balance sheet values in particular transaction profit centers. you decide which accounts should be carried for which evaluations in a profit center. you can decide which financial statement values you want to carry on the balance sheet profit center. but which should allow an overview of the area.19 Profit Center: Additional Balance Sheet Accounts Balance Sheet Acc. When you do this. since decisions concerning an investment are not made on the level of a transaction profit center. the default profit center of the account range is assigned. In EC-PCA. (C) SAP AG AC665 19 . or for subsequent performance key figure reports. 5.20 EC-PCA Preparing Data: Unit Summary This unit has introduced you to the following topics:  Important characteristics of EC-PCA  Data stream in Profit Center Accounting  The role of the partner profit center © SAP AG 1999 (C) SAP AG AC665 20 . you will prepare data in EC-PCA for transfer to Consolidation.5. 1-1 Display a profit center in controlling area 'C001'. you will be able to:   Describe the tasks in Profit Center Accounting Describe the interrelationships between Profit Center Accounting. and Consolidation In the following exercise. Use the list of possible entries (F4) and select a profit center with F2.21Integrated Data Transfer: EC-PCA Exercises Unit: Integrated Data Transfer: EC-PCA Topic: Profit Center Accounting At the conclusion of these exercises.3 Which cost centers are assigned to the profit center? 1-1.1 Which standard hierarchy do the profit centers belong to? 1-1.4 Why does consolidation require that a profit center be assigned to the company codes in which it was posted in the transaction system? _____________________________________________________________ (C) SAP AG AC665 21 . 1-1.2 What is the function of the dummy profit center C-Dummy in controlling area 'C001'? 1-1. Financial Accounting. (C) SAP AG AC665 22 .1-2 Which profit center did you post when you posted incoming/outgoing invoices? To display the FI documents as a list. choose: Fiscal year and Own documents 1-3 Which documents were updated to Profit Center Accounting? 1-4 Theoretical Question: Which step is required to transfer receivables and payables to Profit Center Accounting? _____________________________________________________________ Your instructor will transfer the balance sheet items to Profit Center Accounting. .5.1 Which standard hierarchy do the profit centers belong to? SAP Menu  Accounting  Enterprise Controlling  Profit Center Accounting  Master Data  Display Standard Hierarchy The profit centers belong to hierarchy 'C-Top-1'. SAP Menu  Accounting  Enterprise Controlling  Profit Center Accounting  Master Data  Single Editing  Profit Center  Display Use the list of possible entries (F4) to display a list of profit centers.. Sselect a profit center with F2. 1-1. 1-1. order. Forwarding must be carried out before consolidation. cost center.) originally assigned to an account has not been assigned to a profit center. The data in the dummy profit center can be forwarded to the actual profit center by means of assessment or distribution. 1-1.2 What is the function of the dummy profit center C-Dummy in controlling area 'C001'? The dummy profit center 'C-Dummy' is used in any data transfer in which the object (for example.3 Which cost centers are assigned to the profit center? SAP Menu  Accounting  Enterprise Controlling  Profit Center Accounting  Master Data  Assignment Monitor  Cost centers  Cost centers to profit centers (C) SAP AG AC665 23 . This ensures that the data in Profit Center Accounting is complete.22 Integrated Data Transfer-Solutions Unit: Integrated Data Transfer: EC-PCA Topic: Profit Center Accounting 1-1 Display a profit center in controlling area 'C001'. (This prevents all profit centers from being multiplied by all the companies while generating the consolidation units.) 1-2 Which profit center did you post when you posted incoming/outgoing invoices? To display the FI documents as a list. choose: Fiscal year and Own documents SAP Menu  Accounting  Financial accounting  General ledger  Document  Display Choose the "List" button.4 Why does consolidation require that a profit center be assigned to the company codes in which it was posted in the transaction system? This assignment enables you to control which consolidation units are calculated on the basis of the combination profit center/company code. 1-3 Which documents were updated to Profit Center Accounting? SAP Menu  Accounting  Enterprise controlling  Profit center accounting  Information system  Reports for Profit Center Accounting  Line Item Reports  Profit Center: Actual Line Items (C) SAP AG AC665 24 .1-1. SAP Menu  Accounting  Financial accounting  General ledger  Periodic processing  Closing  Regroup  Balance sheet readjustment 2.1-4 Theoretical Question: Which step is required to transfer receivables and payables to Profit Center Accounting? 1.Transfer Balance Sheet Item Values to Profit Center: SAP Menu  Accounting  Enterprise controlling  Profit center accounting  Actual postings  Period closing  Payables/receivables Selection parameters:    All company codes Line items Degree of detail in log Your instructor will transfer the balance sheet items to Profit Center Accounting. (C) SAP AG AC665 25 . Readjust Profit Center: This step is only necessary if you have built up a separate ledger for profit center data. this step is not required. If you use the SAP standard ledger "8A". 6 Data Transfer Methods: EC-PCA Contents  EC-CS Data  Data Transfer  Rollup © SAP AG 1999 (C) SAP AG AC665 1 . 2 Data Transfer Methods: EC-PCA Unit Objectives At the conclusion of this unit. you will be able to:  Prepare data transfer for management consolidation  Check the transferred data in the receiver system © SAP AG 1999 (C) SAP AG AC665 2 .6. 6.3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data PCA Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 . you check the settings in the receiver system.  You can now check the data that is transferred.  You have to set up and carry out the data transfer using the rollup method. © SAP AG 1999 (C) SAP AG AC665 4 .4 Data Transfer Methods: EC-PCA Business Scenario  The company puts you in charge of preparing profit center consolidation.  You decide which consolidation units you are going to generate.  After you have made the necessary assignments in the sender systems.6. ECCS Active Consolidation Types  Company Cons  Business Area Cons  Profit Center Cons + 03 Profit Center Consolidation H1 Hierarchy: Profit Center Top Node Pharma & Chemicals Chemicals Pharma Analgesics Div. In the above example. you can limit the selection of organizational elements. for example. The profit centers themselves are also consolidation groups. Mono Dimension: Transfer Organizational Units Conversion to Consolidation Units © SAP AG 1999 AS PCM PCMPalo Alto      The data for profit center consolidation is received via the rollup data transfer method. You can define several hierarchies with various structures for each dimension.5 Assigning Consolidation Types to Dimensions Parameters: Dimension: Profit Center Consolidation .. one hierarchy is displayed in a dimension. The consolidation units are formed on the basis of the combination of profit center and company. When you have done this. (C) SAP AG AC665 5 .. you have to define the consolidation units and areas automatically. You can define a data transfer method for every dimension. To use this method. you create a top node and the consolidation groups of the internal trading company. The chosen consolidation type determines which organizational elements are proposed.6. you decide whether you wish to generate the consolidation groups according to profit centers or companies. To do this. If you wish. To do this. and identical profit centers.  In the example. you store rules for ID combination for the consolidation type "Profit center consolidation". you want to transfer the data from the transaction organizational unit Profit Center C6112 to the appropriate consolidation unit during the data transfer.6. This means that the transaction organizational units have to be converted to the consolidation units and groups of EC-CS.  You define the rules that you want the system to use to derive the IDs and names of the consolidation units and groups from the IDs of the organizational units in G/L accounting and profit center accounting. you can include the controlling area in the rules for ID combination if there are several controlling areas.  (C) SAP AG AC665 6 . These rules are used to convert the transaction organizational units to the consolidation units.6 Converting Organizational Units ECCS Specify Data Transfer Method: Rollup FI Transaction System Receiver System Consolidation Unit Profit Center C6112 Company Code C100  Company C10000  Profit Center Consolidation Consolidation Chart of Accounts## Version ### Profit Center/Company  C6112-C10000  ID combination !!! © SAP AG 1999 The transaction systems do not recognize the organizational units of EC-CS.  If necessary. 7 Organizational Units: Rules for ID Combination Consolidation Unit   C6111 C6112 AS PCM C6112-C10000 PCM Rules for ID Combination CS Org. 2 Consolidation group Grouping category 0 No grouping 1 Grouping according to company 3 Grouping according to profit center FS item The "ID" of the consolidation unit (here. Unit Prefix Length 1 2 0 1 3 1 2 1 1 4 1 1 5 - 10 6 6 18 1 Company    C10000 C20000 C30000 IDES Palo Alto IDES New York IDES Chicago 4   Profit Center C6111 C6112 AS PCM Consolidation Group © SAP AG 1999       For each relevant data stream. The length of the ID for the consolidation unit / of the consolidation group is. 10 characters (+ prefix) (C) SAP AG AC665 7 . and converts the organizational units to consolidation units/groups.6. Unit Grouping Category FS item Org. Organizational unit 1 Company 3 Controlling area 4 Profit center 5 Profit center/Profit center group The prefix '-' connects the "ID" with the organizational unit. CS organizational unit 1 Consolidation unit. the profit center) is in the first or second place. for example. the system determines the rules for ID combination to combine the consolidation type and dimension. . The generated hierarchies can be postprocessed... You can then generate lists to analyze the organizational units from different perspectives:  Transferred consolidation units  Master data of the consolidation units that play an important role in integration  Transaction system and client that the unit was transferred from (C) SAP AG AC665 8 . as well as the overall consolidation group. The system also supports two ways of generating hierarchies:  Consolidation hierarchy according to the profit center hierarchy  Consolidation hierarchy according to companies The hierarchy according to companies enables you to compare the consolidation results on the basis of the data from external and internal accounting. Palo Alto C6111 Hierarchy Structure Profit Center Companies C6111-C10000 © SAP AG 1999       In the case of the consolidation type "Profit center consolidation". the system generates the consolidation units by combining profit centers and companies according to the rules for ID combination. to Companies .6. to Profit Center Hierarchy C-TOP-1 Dummy C-SEG-A C-BA-4000 C-BA-6000 . C-DIV-61 Transfer Profit Center Hierarchy Data Collection  Same SAP System  Upload C6111C10000 Group acc..8 Transferring/Editing Hierarchies Dimension 03 Cons C/A 01 Version 100 Period MMM/YYYY 03 PCA Integration Group acc. You first have to manually create each hierarchy node. The system creates these automatically. you can determine whether you wish to assign ranges of the secondary cost elements to financial statement items. To transfer the data. assign the group chart of accounts in the sender system to the consolidation chart of accounts in the EC-CS receiver system. When doing this. assign the cost element range to the financial statement items in the consolidated chart of accounts. You can check the assignment of accounts and financial statement figures by using reports for analysis and reconciliation. You can generate the group chart of accounts from a consolidation chart of accounts.6. (C) SAP AG AC665 9 .9 EC-PCA: Transferring FS Items / Data       Transferring FS Items: Assign charts of accounts to the consolidation charts of accounts Transfer FS items from cost elements Assign cost element ranges to the FS items Match FS items with cost elements Analyze cost elements according to cost element category Transferring Data: Contra item/Retained earnings: Define task © SAP AG 1999       You can use programs to generate consolidation charts of accounts from the charts of accounts. You can also transfer (1:1) secondary cost elements as financial statement items. you have to define a task for calculating the contra item and the retained earnings during the data transfer. If you have not already done so. If you wish to bundle cost elements. It is not necessary to create either the chart of accounts or the account group in advance.  (C) SAP AG AC665 10 . the system determines the consolidation type.6.10 Transfer Data: Defining Data Streams ECCS Group: Fiscal Year Variant: Consolidation System Active Consolidation Types  Company Cons  Business Area Cons  Profit Center Cons EC-CS  FI-LC  RF-KONS © SAP AG 1999 For each combination of consolidation type and dimension. and uses this to define the rules for ID combination.  For each relevant data stream and dimension. you define the consolidation chart of accounts and version to which you want the data to be transferred. receiver table ECMCT) Rollup 0C_CS2CS (sender and receiver table ECMCT) This rollup is only required for data transfer between different R/3 Systems. At present. The rollup contains a definition which is used to specify how the data is totaled in a target ledger. the rollup is the only way of transferring data for profit center consolidation. SAP supplies the following standard rollups for this purpose: Rollup 0C_PC2CS (sender table GLPCT .. (C) SAP AG AC665 11 . #### ## #### ## CU: Consolidation Unit (Profit Center / Company) GC: Value in Group Currency © SAP AG 1999       You can use rollups to display the information contained in one or more source ledger(s) in a summarized form.6. call up the standard rollup from the data monitor screen. To transfer data to consolidation.. CU FS Item GC .11 Standard Rollup ECCS FI GLFUNCT ECECPCA ECMCT LEDGER US GLPCT Ledger 8A RO UP LL Characteristics Key Fig. ..  User exit: the standard rollup contains the standard exit "SC1". (C) SAP AG AC665 12 . The reset set has to be adjusted in line with the Customizing settings. Here.6.. FS Item xxxx xxxx GC 1000 4500 Specify Sender Table and Receiver Table! CU: Consolidation Unit (Profit Center Company) GC: Value in Group Currency © SAP AG 1999   The rollup consists of a rollup header and one or more rollup sequence(s)..12 Rollup Header ECPCA ECCS ECMCT GLPCT Ledger 8A Ledger US CU xxxxx xxxxx .  Specify the reset set. The header level contains the following information:  The totals tables from (sender table) and to (receiver table) which the data records are to be rolled up.  Rollup set: the user must adjust this in line with the Customizing settings. which does not have to be edited by the user. the standard rollup for PCA data transfer contains the totals table of profit center accounting (GLPCT) as the sender table. . and the totals table of consolidation (ECMCT) as the receiver table. ..  A rollup allows you to write exactly one data stream. GC 1000 4500 o0 st lue Va et es R © SAP AG 1999 AC665 13 .  (C) SAP AG REQ.. the reset set also serves to identify the data stream to which the data records are to be posted. If several data streams are to be written by means of rollup. Receiver Table ECMCT Ledger US PrCtr Co.. FS Item xxxxx xxxxx .6. xxxx xxxx . the reset set has to specify a unique combination of the key characteristics version (field RVERS). (for example.. OPT. the value fields in the receiver table that are to be filled by the rollup are set to zero by the reset set. transfer of actual data in Version 100 and of planning data in Version 200). It is also necessary to specify the key characteristics ledger (RLDNR) and posting level (field RPLEVL). dimension (RDIMEN) and consolidated chart of accounts (RITCLG).  In data transfer from EC-PCA to EC-CS. then a corresponding number of rollups has to be defined. This resetting of the data in the receiver table is carried out before the actual rollup.  Consequently.13 Rollup Header: Reset Set Reset Set Ledger Version Dimension Cons Chart RLDNR RVERS RDIMEN RITCLG At the start of the rollup.. This means that the rollup can be repeated as often as you want. Posting Level IIRPLEVL Identify valid data stream for rollup Consolidation Unit RBUNIT . version. In preparations for rollup. This data set can subsequently be restricted at the sequence level.. . .. rules for ID combination.6. OPT.14 Rollup Header: Defining The Rollup Set Rollup Set Ledger RLDNR RRCTY RVERS RBUKRS RPRCTR + Exit SC1 Information: Data Streams.. Record Type Version Comp.. Defines maximum volume of data to be selected © SAP AG 1999 Rollup sets are used to determine the maximum data set to be selected for rollup that is valid for all rollup sequences. record type..... .. ... RO UP LL Sender Table GLPCT Ledger Rec. and company code. . you also have to specify at least the characteristics ledger... Code Profit Center .  (C) SAP AG REQ... this reads the necessary internal EC-CS Customizing tables with regard to the data streams. 8A AC665 14 .  The standard rollup also contains an "SC1" exit..  For performance reasons.. and so on. . . . Rules for ID Combination FS Items .. . Type Version CCd ... . financial statement items.. ..  The field movement specifies how each receiver field is filled... . .15 Rollup Sequence Rollup Sequence XXX Sender: Receiver: GLPCT ECMCT Sequence1 Sequence Set: Field movement Ledger: 1 CS01 US ECMCT Receiver Fields: Fields: Ledger US Sender Field Cost Element Cons Unit Partner Unit Dimension Cons Chart of Accts FS Item When the values in the receiver table are at zero..  If you wish to transfer the data to exactly one consolidation ledger. ... Type Version CCd . .. and the scope of selection for data is specified in the rollup set.6...... 8A . you also have to define only one rollup sequence.. . the data to be selected is read into a rollup sequence one record at a time. .. specify the field movement and the receiver ledger. ..  When defining the rollup sequence. . . .  (C) SAP AG R R © SAP AG 1999 O O L GLPCT L U U AC665 15 "Convert!!!" P Ledger Rec.. THEN execute EXIT SC7(*) (*) Standard Exit SC7: IF "Account/Cost element" field filled.  (C) SAP AG AC665 16 . THEN convert to "FS item". This means that they cannot be filled by means of direct transfer of field contents from the sender table. You will find detailed instructions relating to this point in SAP note 111140.16 Standard Exits GLPCT Read Data IF "Account/Cost element" field. The standard rollup already contains standard exits for these fields.  Each selected data record goes through these conversions for the rollup. ECCS SC7 Standard Exit Transfer Field ECMCT © SAP AG 1999 There is no corresponding field in the sender table for the consolidation-specific fields in the receiver table ECMCT. which obtain the required field contents from the appropriate consolidation tables.6. customer-specific user exits can be defined and assigned.  If further requirements should arise. these exits are sufficient for data transfer from EC-PCA to EC-CS. As a rule. this is marked as consolidation unit 9999* (the length of the consolidation unit corresponds to the length specified in the rules for ID combination).6. (C) SAP AG AC665 17 . If there is an error in the data record before posting.17 Field Transfer and Standard Exits Example: Field Movement Receiver Field Sender Field Standard Exit SC6 SC8 SC3 SC4 SC7 SC2 SC5 SC8 SC8 SC1 Consolidation unit RBUNIT RBUPTR Partner unit RDIMEN Dimension Cons chart of accts RITCLG FS item RITEM ROBUKRS Original company code RBUKRS Company code Record type RRCTY Version RVERS Subitem category SITYP Subitem SUBIT User exit before writing © SAP AG 1999    Field movement is carried out using client-independent standard exits: The exits are processed in alphabetical order. The values of this record are set at zero. In the rollup header (processing options). you can decide whether you want to write this record.  It is about Customizing settings concerning  Consolidation chart of accounts.   Breakdown categories.  Assigning dimensions/ integrated consolidation types. The file generated by the rollup can then be checked and written to the consolidation system. (C) SAP AG AC665 18 . certain Customizing settings for consolidation have to be known in the transaction applications in order to convert the data to the required account assignment.  Subitems. the system uses the Customizing settings to convert the data. Scenario w/o ALE Standard Rollup ECMCT ECMCT EC-CS Ledger c) decentr.  FS items.6. Scenario with ALE ECMCT © SAP AG 1999 For the purposes of transferring transaction data to the EC-CS consolidation system.  Rules for ID combination  global specifications (for example Alpha conversion)  When a rollup of the transaction data is generated in the transaction system.  Subitem categories.18 Rollup in Different Systems a) Central scenario + c) decentr. scenario with ALE Standard Rollup GLPCT ECMCT EC-CS Ledger AC Docs GLPCT Profit Center Ledger ECMCT Export Rollup ECMCT ECMCT b) decentr. 19 Data Transfer Methods: EC-PCA Unit Summary You are now able to:  Prepare data transfer for management consolidation  Check the transferred data in the receiver system © SAP AG 1999 (C) SAP AG AC665 19 .6. Check over the ID combination rules. set your dimension #3 Profit Center Consolidation. Save your entries. Define fiscal year variant K4 in your consolidation units. What must your consolidation units be called? _____________________________________________________________ 1-3 Copy the hierarchy for dimension #3. and choose Profit Centers.20 Exercises Unit: Data Transfer Methods:EC-PCA Topic: Preparing EC-CS Data At the conclusion of these exercises. Confirm the entries with 'Enter' and generate the consolidation groups and units without restricting these to particular companies/profit centers.6. To do this. create hierarchies H1 and H2 (to group according to profit centers or companies). You can not generate sets due to technical reasons. _____________________________________________________________ (C) SAP AG AC665 20 . and create a top consolidation group for each hierarchy. you will be able to:  Maintain the master data of a profit center in relation to the preparations you made for consolidation Analyze the profit center assignments of FI documents Make preparations in the EC-CS consolidation system for a profit center consolidation scenario   1-1 1-2 In the global session parameters. Place your cursor on the top node of hierarchy H1. Select the Same R/3 System and Hierarchy of profit centers options. and display it. Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2. Ask the person sitting next to you why the rollup data transfer method could be copied together with the Profit Center Consolidation dimension.1-4 Evaluate the master data. (C) SAP AG AC665 21 . and check over the assignment of consolidation units to ledger and fiscal year variant and data transfer method (0 = rollup). _____________________________________________________________ _____________________________________________________________ 1-5 Check the definition of the data streams. you will be able to:  Describe the functions of a rollup 2-1 Look at the definition of rollup PCA_CS_2 (instructor). the reset set.Unit: Data Transfer Methods: EC-PCA Topic: Rollup At the conclusion of these exercises. _____________________________________________________________ _____________________________________________________________ (C) SAP AG AC665 22 . the rollup sequence. Check the rollup header. and the field transfer set. Enter the following basic sets: RLDNR_ECMCT_2 RDIMEN_ECMCT_# (where # is the letter of your dimension) This set contains the dimension of your group. • • - • • - - Please do not make any changes in the rollup sequence! _____________________________________________________________ (C) SAP AG AC665 23 . and save rollup PC_CS_##. go back one level. As the template. enter your group’s rollup and the instructor’s rollup. Overwrite multi-set ECMCT_2 with ECMCT_# (where # is the letter of your dimension). Use the instructor's rollup as a copy template: PCA_CS_2. You can use  to display and change reset set ECMCT_2.2-2 Additional Exercise: Define your own rollup PC_CS_## for your course group (## = course group number + 40). Choose the rollup header. RVERS_ECMCT_2 RITCLG_ECMCT_2 RPLEVL_ECMCT_2 • Save your entries. Choose Create Set and enter a description for the set. execute the rollup PC_CS_## for period 012 and the current year. _____________________________________________________________ 2-4 Additional Exercise Carry out the remaining tasks in the data monitor as well as the consolidation tasks in the consolidation monitor.2-3 Additional Exercise: Executing the task Data Entry In the data monitor (EC-CS application menu). _____________________________________________________________ (C) SAP AG AC665 24 . and display it. To do this. Place your cursor on the top node of hierarchy H1. create hierarchies H1 and H2 (to group according to profit centers or companies). set your dimension #3 Profit Center Consolidation. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. and choose Profit Centers. SAP Reference IMG  Enterprise Controlling  Consolidation  Specify Global Parameters 1-2 Check over the ID combination rules. Confirm the entries with 'Enter' and generate the consolidation groups and units without restricting these to particular companies/profit centers. You can not generate sets due to technical reasons. and create a top consolidation group for each hierarchy.6. Repeat this procedure in order to generate the consolidation groups and units of your company hierarchy H2.21 Data Transfer methods-Solutions Unit: Data Transfer Methods:EC-PCA Topic: Preparing EC-CS Data 1-1 In the global session parameters. Save your entries. What must your consolidation units be called? SAP Reference IMG  Enterprise Controlling  Consolidation  Integration: Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Copy Organizational Units  Define ID Combination Rules 1-3 Copy the hierarchy for dimension #3. Define fiscal year variant K4 in your consolidation units. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Converting Organizational Units  Edit hierarchies (C) SAP AG AC665 25 . Select the Same R/3 System and Hierarchy of profit centers options. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Converting Organizational Units  Evaluate the Master Data of the Organizational Units 1-5 Check the definition of the data streams. Preparation for Consolidation  Preparation in the EC-CS Consolidation System  Collection of Data  Define Data Streams (C) SAP AG AC665 26 . SAP Reference IMG  Enterprise Controlling  Consolidation  Integration.1-4 Evaluate the master data. Ask the person sitting next to you why the rollup data transfer method could be copied together with the Profit Center Consolidation dimension. and check over the assignment of consolidation units to ledger and fiscal year variant and data transfer method (0 = rollup). SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. and the field transfer set.Unit: Data Transfer Methods: EC-PCA Topic: Rollup 2-1 Look at the definition of rollup PCA_CS_2 (instructor). By choosing . (C) SAP AG AC665 27 . Choose Rollup Sequence. By choosing . you can display the field transfer set. Use the instructor's rollup as a copy template: PCA_CS_2. Preparation for Consolidation  Preparation in the Sender System  Preparation and Activation of Data Transfer  Rollups  Define Rollup for Data Export  Display Rollup Choose Rollup Header. you can display the field transfer rule CS01. you can also display the field transfer set. the rollup sequence. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. Preparation for Consolidation  Preparation in the Sender System  Preparation and Activation of Data Transfer  Rollups  Define Rollup for Data Export  Create rollup Choose Rollup Sequence. Do NOT make any changes! By choosing . By choosing . you can also display the field transfer rule CS01. SAP Reference IMG  Enterprise Controlling  Consolidation  Integration. you can also display the reset set ECMCT_2. Check over the rollup header. By choosing . 2-2 Additional Exercise: Define your own rollup PC_CS_## for your course group (## = course group number + 40). the reset set. Start the task Elimination of IU Payables/Receivables for the top consolidation group (in update mode) and block the task.2-3 Additional Exercise: Executing the task Data Entry In the data monitor (EC-CS application menu). 2-4 Additional Exercise: Carry out the consolidation steps in the Data monitor and in the Consolidation monitor. Start the rollup. Choose the Consolidation monitor. SAP Menu  Accounting  Enterprise Controlling  Consolidation Choose Data Monitor. What you enter: Period: 012 Year: the current year Choose Detail List. Expand the top consolidation group. Execute the rollup PC_CS_##. Open the hierarchy. You use the same procedure for the task Elimination of IU Revenue/Expense. Place your cursor on the top consolidation group. You use the same procedure for the task Validate Standardized Data. Block the task Standardizing Entries for the top consolidation group. SAP Menu  Accounting  Enterprise Controlling  Consolidation Choose Data Monitor. Start the task Retained Earnings/Contra Item for the top consolidation group (in update mode) and block the task. (C) SAP AG AC665 28 . Choose Update Run and Reported Data Consolidation Units. and place your cursor on Data Entry. Open the hierarchy. Confirm the messages with Enter. execute the rollup PC_CS_## for period 012 and the current year. (C) SAP AG AC665 29 . 7 Key Figures Contents  Key Figure Reporting: EC-CS  Financial/Management Accounting:Reconciliation  Key Figures in EC-EIS © SAP AG 1999 (C) SAP AG AC665 1 . 2 Key Figures: Topic Objectives At the conclusion of this unit. you will be able to:  Name various key figure reports for consolidated profit center data  Reconcile FI data with profit center data  Assess the predictive values of different reports for various levels of the enterprise © SAP AG 1999 (C) SAP AG AC665 2 .7. 3 Course Overview Diagram EIS BP Executive Business Information Planning System EC-CS Consolidation Dimension FI Data EC-PCA Profit Center Accounting FI-GL General Ledger © SAP AG 1999 CO Controlling (C) SAP AG AC665 3 .7.  Then you want to use key figures to evaluate the data in profit center consolidation. © SAP AG 1999 (C) SAP AG AC665 4 .4 Key Figures: Business Scenario  You are to carry out consolidation at the profit center data level.7. 5 EC-CS Reporting ECECEIS BP EC-CS Balance Sheets Income Statement Total Cash Flow ROCE Return on Capital Employed ROA Return on Operating Assets Reconciliation FI: PCA Organizational Units: Consolidation Group. In order to optimally plan resources for the individual areas. the responsible managers specify these goals in terms of sub-goals. The performance key figures are also used to carry out comparisons within the industry. Strategic Business Unit. such as raising the return on investment of the operational assets by 10% while simultaneously lowering operational expenses by 5%. Achieving these specifications is often also decisive in determining the salary of the area manager. Division. or to evaluate the marketability of an enterprise. Consolidation Unit Company/Profit Center EC-PCA ECEC-PCA FI & CO © SAP AG 1999 Performance key figures are used by management to specify enterprise goals. and payables  (C) SAP AG AC665 5 . after tax / operational transferred and current assets. Company. after tax / total equity  ROA = NOPAT / Operating Assets: Annual net income before interest on borrowings.7.  Examples of performance key figures: ROCE (Return On Capital Employed): Return on assets ROCE = NOPAT / Capital employed: Return on capital employed = annual net income before interest on borrowings. Profit Center.  EVA (Economic Value Added): This key figure determines the value achieved after all capital investments have been deducted.6 Reporting  Balance Sheets  Income Statement  Cash Flow  Key Figures for Return on Investment and Liquidity  Economic Profit / EVA®  Discounted Cash Flow  CFROI Cash Flow Return on Investment © SAP AG 1999 In addition to the standard FI reports. and insert them into the report tree.  (C) SAP AG AC665 6 . liquidity 1st/2nd/3rd degree) are generated along with the cash flow key figure.  CFROI: The CF Return on Investment key figure permits comparisons between the return on investment in the various business areas of an enterprise. cash flow-based key figures are now being increasingly used.  In addition to the profit-based key figures. For example:  Discounted Cash Flow is a planning tool. This plan figure determines the current potential of the enterprise. In simplified form. you can create further reports in the R/3 System. other key figures for return on investment (ROI. that calculates the discounted cash flow for a specific planning period. ROCE) and liquidity (working capital. Consequently.7.  Cash flow: This key figure uses the cash inflow from sales to calculate the internal financing resources of an enterprise. an enterprise's profitability/ability to pay is calculated on the basis of the following values: annual net income + depreciation + increase in the long-term provisions  Cash flow does not provide a clear conclusion on the profitability of the enterprise. 7. and puts them into the visible Cash Flow column for the business unit PHARMA. You can create a cash flow report at the business area level if you ensure that the relevant data is handled at the business area level. © SAP AG 1999 This report shows a possible display format for the total cash flow.  In the hidden columns. the drilldown report determines the totals per year. calculates the deviations. columns.  (C) SAP AG AC665 7 .7 Technique for Cash Flow Reports Cash Flow Report Strategic Business Unit PHARMA Fiscal Year 1999 GE 6000 Annual Net Income 588915 Depreciation 456750 Appropriations to Provisions 517435 Delta Long-Term Payables 275050 Delta Raw Material 301001312613 1092657CF from Business Transactions 557046 Acquisitions Investments Acquisitions Assets CF from Investing Activities Delta Long-Term Payables CF from Financing Activity Change in Net Liquidity 53580090370014395001013000 1013000 130546 Hidden Columns 1999 1998 Delta 152250 436665 588915 456750 456750 27091102191675517435450000 725050 27505030100 164635 194735 Delta WIP 2316371544250 231637-Delta Finished Products 1284927 192270 10926573572000 9105726 40623503036200 8202026 30493505358009037001013000- The cell calculation is based on rows. cells and +/ signs. 7.8 Performance Key Figures in the Model Group Group Strategic Business Unit Chemicals Group CF Total Cash Flow ROCE Return on Capital Employed EBITDA Earnings before Interest ... ... and others: Sales, Profit Pharma Division Product Line Product Diabetic Mono AS Analgesic Combo ROA Return on Operating Assets EBITDA Earnings before Interest CF Transaction Cash Flow PCM and others: Sales, OPEX (Operating Expense) © SAP AG 1999 Examples of key figures:  ROCE (Return on Capital Employed)  EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) = Sales - COGS - operating costs (excl. Depreciation / Amortization)  ROA: operating profit /operating assets  In the IDES model enterprise, the performance of operational profit centers should be calculated using only key figures with influencing factors that can be completely controlled by the person responsible for the profit center.  Example: A profit center manager is not responsible for the investments carried out on the strategic business unit level. It is, therefore, expedient to calculate a key figure for return on capital employed on the strategic business unit or group level.  (C) SAP AG AC665 8 7.9 Performance Key Figures I Performance Key Figures at the Levels Consolidated Group, Segment, Strategic Business Unit:  Total Cash Flow  Return On Capital Employed ROCE = NOPAT Total Equity  EBITDA Earnings Before Interest,Tax, Depreciation and Amortization © SAP AG 1999 NOPAT Total Equity = Net Operating Profit After Tax = Stockholders' Equity + Outside Capital ROCE (Return on Capital Employed) = annual net income before interest on borrowings, after tax / total equity You can use this key figure to carry out comparisons in the industry.  NOPAT = annual net income before interest on borrowings, after tax  EBITDA = sales less COGS less operating costs (excluding depreciation / amortization)  COGS = costs of goods sold  (C) SAP AG AC665 9 7.10 Performance Key Figures II Performance Key Figures at the Levels Division to Profit Center  Operational Expenses  Ordinary Operating Profit  Cash Flow from Business Transactions (Excluding Investing/ Financing Activities)  Return on Operating Assets ROA = Ordinary Operating Profit Operational Fixed/Current Assets © SAP AG 1999   Operational Fixed/Current Assets consist of: fixed assets + inventories + receivables. The payables are included so that the inventory changes at the division/profit center level are not given undue weight. (C) SAP AG AC665 10 7.11 Key Figures in the Consolidated Chart of Accounts Cons Chart of Accounts Balance Sheets  Hints on Key Figures:  Rule: unique hierarchy with totals items Use of further FS item hierarchies for alternative totalings Example: Totals item EBITDA Income Statement  Statistical Values  Key Figures EBITDA Sales Revenue Costs of Goods Sold Operational Costs Excluding Depreciation © SAP AG 1999 EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) = Sales less COGS less operating costs (excl. Depreciation / Amortization)  The items of the consolidation chart of accounts require unique hierarchies for the totals items. The key figure EBITDA uses the same value items as in the income statement hierarchy, but with different totals items.  This means that it is possible to create a parallel hierarchy node in addition to the normal totals items. The EBITDA totals node comprises the calculation of the following values:  Sales,  Cost of goods sold, and  Operational expenses do not include depreciation/amortization of tangible fixed assets and financial assets.  Advantage: You can use this key figure in all drilldown reports. If the calculation of the key figure changes, you change it in the consolidation chart of accounts (the data is not redundant).  (C) SAP AG AC665 11 7.12 Reconciliation of FI and PCA Results in EC-CS Execute Compare FI & PCA Dimension data (B/S): Detail List Compare FI & PCA Dimension data (B/S) Business Unit 6000 PHARMA FI Dim Current Assets Cash Non-Cash Fixed Assets Total Assets Tot. Assets w/o Cash Short-term Liab. Tax Non-Tax Long-Term Liab. B/S BA clearing Equity EQ w/o Net Income Net Income CY Liability & Equity L & E w/o Tax & Clear © SAP AG 1999 Current data 7/19/1998 18:42 Reconciliation of Dimension 02 “FI Integration” with 03 “PCA Integration” PCA Dim 5.272.258 0 5.272.258 9.632.726 14.904.984 14.904.984 6.376.4700 6.376.4704.062.35049.2474.416.917569.8500 14.904.98414.855.737- Op. PrCtr 4.816.313 0 4.816.313 2.576.283 7.392.596 7.392.596 2.177.6500 2.177.6500 3.450.0971.764.8490 0 7.392.5963.942.499- B/S PrCtr 455.945 0 455.945 7.056.443 7.512.388 7.512.388 4.198.8200 4.198.8204.062.3503.400.850 2.652.068569.8500 7.512.38810.913.238- 5.272.257 0 5.272.257 9.632.726 14.904.983 14.904.983 6.782.470406.0006.376.4704.062.350356.754 4.416.917569.8500 14.904.98314.855.737- In this prepared balance sheet, you can compare the results of the profit center with those of external accounting. In order to do this, you must have transferred the necessary balance sheet items to the profit centers.  In EC-CS, you can handle the consolidated values of the business area in various dimensions. On this level, the following reports are possible:  Balance sheets  Cash flow report  Return on capital employed You can create the following reports for the profit center consolidation dimension :  Asset portfolio  Income statement by divisions  Return on Operating Assets  Cash flow from operating activities  You can use drilldown reports to compare the values from both dimensions. If the business units are to be reconcilable, the balance sheet values that were handled at the profit centers are essential, and account assignment objects must be assigned completely to profit centers.  (C) SAP AG AC665 12 335 2.200.265 954.401 2.1998 18:42 Combo 1.183.838.000 4.068.150 27.000 3.163 Mono 4.314 135.000 986. Operating Profit Fixed assets Inventory A/R A/P Operating Assets Analgetics 5.151 296.000 4.499 Current data 19.000 1.464 Diabetics 6.594 833.000 228.561.600 5.781.814 585.000 755.050.000 450.000 476.013.077 1.000 128.000 433.650 1.311.000 1.800 561.911 Return on Operating Assets ROA % 27 27 27 19 © SAP AG 1999  ROA = NOPAT / Operating Assets: Net operating profit after tax / operating fixed and current assets and payables (C) SAP AG AC665 13 .618.7.496.Net Cost of Goods Sold Selling & Admin Exp.865 303.629.300 2.464 1.851 1.610 4.13 Key Figure ROA .736 4.340.094.961.200.000 3.599 273.000.000 1.Report in EC-CS Divisions and Product lines in Business Unit PHARMA Execute DIM 03 Return on operating Assets ROA: Detail DIM 03 Return on operating Assets ROA Fiscal Year 1999 Sales .665 910.499 1.320 3.07. Research & Develop. oriented to the sales of of the particular business unit).  CFROI: The CF Return on Investment key figure permits comparisons between the return on investment in the various business areas of an enterprise.  (C) SAP AG AC665 14 .  "Discounted Cash Flow" calculates the discounted cash flow for a specific planning period and determines the current potential of the enterprise.  The cash flow-based key figures provide a more realistic representation of profits and provide a reliable criterion for evaluating managers' remuneration packages.7.14 Performance Key Figures: Trends Profit-Based Key Figures versus Cash Flow-Based Key Figures EVA® Economic Value Added DCF Discounted Cash Flow CFROI Cash Flow Return On Investment © SAP AG 1999 EVA (Economic Value Added): This key figure determines the value achieved after all capital investments have been deducted. It permits good prognoses for the future. since the influencing factors are profit-based and not cash flowbased (in other words. the average costs of all long-term funds.Tax rate – Interest rate risk free investment © SAP AG 1999 Average Market Return The calculation of EVA is made up of several components: NOPAT (Net Operating Profit After Tax).current assets WACC (Weighted Average Cost of Capital). since they have not invested their equity in another enterprise with a similar risk.  (C) SAP AG AC665 15 . financial institutions. and thus permit an objective assessment of the enterprise. This means that you can work with the EVA key figure even at the lowest level of the enterprise structure. and can be freely combined with the influencing factors of other segments.)  WACC is the key figure that is calculated from the enterprise figures enterprise-wide. a profit-based key figure CAPITAL: total assets .15 EVA®: Influencing Factors EVA® NOPAT .  Data from banks. or industry-related data influence the costs of stockholders' equity.7. (The costs of stockholders' equity are the opportunity costs for the investors. for example.(WACC x Capital) NOPAT WACC Weighted Average Cost of Capital Capital + Cost of Equity II Cost of Debt II x Cost of Equity I Equity / Capital Ratio Company Risk Premium Cost of Debt I x Debt / Capital Ratio + x Market Risk Premium Beta factor x Interest rate 1 . which allows you to maintain optimum warehouse stock. which allows the values for the individual business units to be displayed in a consistent form.16 Task Distribution: Controlling / Group Accounting Internal Non-Monetary Performance Indicators PC -Co ntro llin gG rou pA cco unt ing I Ba n Con dGro trol up ling External Performance Indicators (for example. the results are presented to the management and analyzed.   (C) SAP AG AC665 16 . Real-time information with a very high level of detail flows into this component from every company area. By selecting. Market Shares. In EC-CS. Customer Satisfaction.  In EC-EIS. and so on) EC-EIS Management Reporting (Key Performance Indicators Monetary and Non-Monetary) Financial Consolidation Internal and External (Balance Sheets) Calculation of Profits for the "Enterprises in the Enterprise" Transaction Systems EC-CS internal external Validation EC-PCA Tra App nsacti lica on tion s FI CO Non-SAP © SAP AG 1999 The results are determined automatically in the operational units. you can create a key figure system tailored to your specific enterprise. internal transactions are eliminated. The various report categories permit you to reconcile the values between business areas and profit centers. assigning. and summarizing the data from the operational area.7. Each responsible person optimizes his or her enterprise area in accordance with the strategy of the group as a whole.  The integration of the transaction levels with the management information level provides consistent bases for decision making. Advantages of reporting with EC-EIS:  The EIS database is not account oriented.7.585 US$ NOPAT .  The inSight GUI manufactured by the Arcplan company enables you to portray the key figures from the EIS database graphically.   (C) SAP AG AC665 17 .WACC * Capital Start Economic Profit 854.17 EVA® with SAP EC-EIS and inSight Economic Profit using Capital Charge Formular Navigation Year Fiscal Year ´99 Economic Profit 854.  EIS has transactions for calculating key figures that are independent of reports in the system.585 US$ Economic Profit 854.585 US$ Exit System © SAP AG 1999 Data collection reports can be used to transfer data from EC-CS and EC-PCA to the EIS database.585 US$ Consolidation Group Pharma Consolidation Level Level 2 Pharma (Auto) Economic Profit 854. 0 % Level 2 Pharma (Auto) Beta factor 0.6 % Tax rate 50.18 EVA®: Weighted Average Cost of Capital Economic Profit using Capital Charge Formular Navigation Year Fiscal Year ´99 Consolidation Group Risk free Investment 6.6 % Pharma Consolidation Level WAC Equity 8.7.3 % Interest rate loans 6.500. 10.585 US$ Cost of Debt 3.6 % WAC 9.351 US$ Tree_1_A Tree_1_A Gearing 15. capitalisation 8.1 % WACC Dept + WACC Equity Company Risk Premium 4.0 % Market Risk Premium 4.000 US$ Number of shares 100.1 % Cost of Equity 10.5 % Av.89 Debt 219.0 % Mark.0 % Back © SAP AG 1999 (C) SAP AG AC665 18 .000 Share price 85 US$ WACC Debt 854. Market return Av. 19 Key Figures: Unit Summary You are now able to:  Name various key figure reports for consolidated profit center data  Reconcile FI data with profit center data  Assess the predictive values of different reports for various levels of the enterprise © SAP AG 1999 (C) SAP AG AC665 19 .7. 20Key figures-Exercises Unit: Key Figures At the conclusion of these exercises. (C) SAP AG AC665 20 . 1-1 Additional Exercise: Execute some key figure reports. Your instructor will tell you the reports that you have to call up. you will be able to:  Describe the various reporting levels available for individual key figure reports Name the reports for reconciling data in FI and EC-PCA  You are to evaluate consolidated data at various levels as a sound basis for decision-making.7. You have to ensure that the consolidated data from FI and EC-PCA is consistent. (C) SAP AG AC665 21 . and choose a report. SAP Menu  Accounting  Enterprise Controlling  Consolidation  Information System  Tools  Drilldown Reporting Use F4 to display the list of possible entries.21Key Figures-Solutions Unit: Key Figures 1-1 Additional Exercise: Execute some key figure reports.7. Your instructor will tell you the reports that you have to call up. 8 Appendix Contents  Logistics integration between EC-CS and EC-PCA  Consolidation chart of accounts © SAP AG 1999 (C) SAP AG AC665 1 . 2 Example: LO Integration with FI and EC-PCA © SAP AG 1999 (C) SAP AG AC665 2 .8. the system uses the delivery to determine the partner relationship.3 Example: LO Integration with FI and EC-PCA Customer Company Code C100 PrCtr C6111 Purchase Order Supplier Company Code C300 PrCtr C4311 Delivery Picking Goods Receipt Incoming Invoice Goods Issue Customer Invoice © SAP AG 1999 The customer creates the purchase order with company code C100 and profit center C6111.     (C) SAP AG AC665 3 . This means that the document contains the sales item with the customer code C100. The supplier creates the delivery with company code C300 and profit center C4311. When goods issue and invoicing is carried out. The posting year is 1999.  When the incoming invoice and goods receipt are created. Goods issue is carried out after picking. the system uses the purchase order to determine the trading partner and the partner profit center.8. and the information on the partner units: Company C30000/ Profit Center C4311. profit center C6111. 4 Purchase Order Purchase Order ME23 Doc 4.002 Scenario No FI document is generated! Company code C100 Palo Alto makes a purchase order for the materal C-SA1 i Acetyl Substance (material master MM03) for the production of AS PARAX. The production order directly generates an SD worklist.no sales order is required.8. the supplying plant is C300 Chicago. Sender BUKRS C100 Palo Alto GSBER 6000 Pharma PRCTR C6111 ASPARAX Production © SAP AG 1999 Partner Unit (C) SAP AG AC665 4 . The supplier is C100VEND3.500.000. 5 Delivery and Picking Delivery & Picking No FI document is generated! Scenario Company code C300 Chicago has received the purchase order for th material e C-SA1 Acetyl Substance from the trading partner customer C300CUST2 (company code C100 Palo Alto). Sender BUKRS C300 Chicago GSBER 4000 Chemicals PRCTR C4311 Acetyl Substance © SAP AG 1999 VL03 Doc 80.000.000 Partner Unit (C) SAP AG AC665 5 . Documents for delivery and picking are generated on the basis ofthe SD worklist (generated by the purchase order).8. Sender BUKRS C300 Chicago GSBER 4000 Chemicals PRCTR C4311 Acetyl Substance © SAP AG 1999 Partner Unit C10000 Company Palo Alto 6000 Pharma C6111 ASPARAX (C) SAP AG AC665 6 .8.002.289 Scenario: Plant C300 Chicago delivers to the customer of the trading partn er.6 Goods Issue Goods Issue MB51 Doc 49. Material: C-SA1 FI Posting: Debit Cost of Goods Manufactured for Sales Credit Raw Materials The partner PrCtr is derived from the purchase order (in non -distributed scenarios). Sender BUKRS C100 Palo Alto GSBER 4000 Chemicals PRCTR C4311 Acetyl Substance © SAP AG 1999 Partner Unit C30000 Chicago 6000 Pharma C6111 ASPARAX (C) SAP AG AC665 7 .7 Goods Receipt Goods Receipt MB03 Doc 50.002.8.940 Scenario: Company code C100 Palo Alto receives the ordered goods from thetrading partner's suppliers. FI Document Debit Raw Materials Credit Goods Receipt/Invoice Receipt Clearing Account The partner profit center is derived from the delivery. FI Document: Debit Customer C300CUST2 (A/R) Credit Sales Revenue and Tax The partner profit center is derived from the purchase order (innon-distributed scenarios).8.8 Invoicing Invoicing VF03 Doc 90.000.000 Scenario: Company code C300 Chicago sends the invoice to the customer. Sender BUKRS C300 Chicago GSBER 4000 Chemicals PRCTR C4311 Acetyl Substance © SAP AG 1999 Partner Unit C10000 Palo Alto 6000 Pharma C6111 ASPARAX (C) SAP AG AC665 8 . 000 Scenario: Company code C100 Palo Alto receives the invoice from the afflilated company's i supplier (posting year 1999).000.8. Sender BUKRS C100 Palo Alto GSBER 4000 Chemicals PRCTR C4311 Acetyl Substance © SAP AG 1999 Trading Partner C30000 Chicago 6000 Pharma C6111 ASPARAX (C) SAP AG AC665 9 .9 Incoming Invoice Incoming Invoice MR03 Doc 5.100. FI Document Debit GR/IR clearing account and account for price differences Credit Supplier C100VEND3 (A/P) The partner profit center is derived from the delivery. COGS Period Item Medium Text for FS items IT S WA 100000 ASSETS 100100 Total Current Assets 110000 Cash and Cash Equivalents 110100 Cash 110200 Marketable Securities 119000 Net Receivables 120000 Accounts Receivable .Net 120100 Trade Receivables 120200 Allowance for Doubtful Accounts 125000 Other Receivables 125100 Notes Receivable 125200 Interest Receivable 125300 Miscellaneous Receivables 130000 Intercompany Receivables 130100 IC Trade Receivables 130200 IC Notes Receivable 130300 IC Interest Receivable 130500 IC Due to/from 131000 IC Elimination of Payables and Receivables 135000 Inventories 135100 Raw Materials 135200 Work in Process 135300 Finished Goods Inventory .10 Cons Chart Dimension Cons Chart 1 US.Production 140000 Other Current Assets 140100 Prepaid Insurance (C) SAP AG AC665 10 2+ 2+ 2+ 1+ 1+ 2+ 2+ 1+ 12+ 1+ 1+ 1+ 2+ 1+ 1+ 1+ 1+ 1+ 2+ 1+ 1+ 1+ 1+ 2+ 1+ A A A A A A A A A A A A A A A A A A A A A A A A A A .8. ARE Version Balance Sheet.Purchased 135400 Finished Goods Inventory . Purchase 181200 Goodwill . net 191000 Property. Goodwill Amortization .Net 181000 Goodwill 181100 Goodwill . Plant and Equipment 191100 Land and Real Estate 191200 Buildings 191300 Furniture and Fixtures 191400 Transportation Equipment 191500 Machinery and Equipment 195000 Accumulated Depreciation 195200 Accumulated Depreciation Buildings 195300 Accumulated Depreciation . Goodwill Amortization .Furniture and Fixtures 195400 Accumulated Depreciation Transportation Equip.Push Down Method 190000 Property.Equity 181400 Goodwill .Purchase 170200 Investments in Subsidiaries .Equity 170400 Investments in Parent Company's Common Stock 180000 Goodwill .Proportional 185300 Accum. Plant and Equipment.140200 Other Current Assets 150000 Deferred Tax Assets 150100 Deferred Tax Assets 150200 Deferred Tax Assets .Purchase 185200 Accum.Proportional 170300 Investments in Subsidiaries . Goodwill Amortization .Mach. Goodwill Amortization .Valuation Allowance 160000 Total Fixed Assets 170000 Investments 170100 Investments in Subsidiaries .Push Down Method 185000 Accum. 195500 Accumulated Depreciation .Proportional 181300 Goodwill .Equity 185400 Accum. & Equipment (C) SAP AG AC665 11 1+ 2+ 1+ 1+ 2+ 2+ 1+ 1+ 1+ 1+ 2+ 2+ 1+ 1+ 1+ 1+ 211112+ 2+ A A A A A A A A A A A A A A A A A A A A A A A 1+ 1+ 1+ 1+ 1+ 21111- A A A A A A A A A A . Goodwill Amortization 185100 Accum. Long Term Portion (C) SAP AG AC665 12 22221121111111211112111211121111+ 221- B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B .Federal 215200 Income Taxes Payable .State 215300 Income Taxes Payable .Current Portion 205200 Bonds Payable .200000 Total Liabilities and Stockholders Equity 200100 Total Liabilities 200200 Total Current Liabilities 201000 Trade Payables 201100 Trade Payables 201200 Miscellaneous Trade Payables 205000 Other Payables 205100 Notes Payable .Foreign 220000 Other Taxes Payable 220100 Sales and Use Tax Payable 220200 Foreign Withholding Taxes Payable 220300 Property Taxes Payable 225000 Deferred Taxes Payable 225100 Deferred Taxes Payable Federal 225200 Deferred Taxes Payable State 225300 Deferred Taxes Payable Foreign 225400 Deferred Tax Payables -Value adjustment 230000 Total Long Term Liabilities 235000 Long Term Debt 235100 Notes Payable .Current Portion 205300 Accrued Interest Payable 205400 Accrued Wages Payable 205500 Accrued Payroll Taxes Payable 205600 Dividends Payable 205700 Miscellaneous Payables 210000 Payables to Affiliated Companies 210100 IC Trade Payables 210200 IC Notes Payable 210300 IC Interest Payable 210400 IC Dividends Payable 215000 Income Taxes Payable 215100 Income Taxes Payable . Purchase 247020 Min. . Int. . – Investments in Common Stock of Parent 250000 STOCKHOLDERS' EQUITY 250050 Total Subscribed Common Stock 250100 Common Stock (C) SAP AG AC665 13 112111111112111112111111111121111221- B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B .Ret. . – Investments in Subsid.Long Term Portion 239999 B/S Business Area .Prop.Rounding 241000 Minority Interest in retained earnings 241100 Minority Interest .Ret. Int.Proportional 247030 Min.Ret.Diffs . Earn. . Change 241400 Min. .Transl. Int. Earn.CY prior to First Cons 241350 Min. Earn.Diffs . Earn. . Earn. Int. .Transl.235200 Bonds Payable .Preferred Stock 240500 Minority Interest . Reciprocal Holdings Inv.Ret.Dividends Paid Clearing 241630 Min.ESOP Shares 240300 Minority Interest .Additional Paid in Capital 240600 Minority Interest . Int. Earnings .Common Stock . . . Int. 240800 Minority Interest . .Investments in Subsidiaries 247010 Min. .Diffs . . Int.Common Stock 240200 Minority Interest . Int.Cur.Equity 247040 Min.Subscribed Capital Stock 240400 Minority Interest . .Bonus Management 241800 Min.Ret.Dividends Payable 240900 Minority Int. Plant & Equip 240920 Min.Cur.Ret. Int. – Investments in Subsid. Earnings . .Clearing Account 240000 Minority Interest 240100 Minority Interest .Prior Years 241200 Minority Interest . . .Ret. Int. Int. .Treasury Stock 240700 Min.Transl.Transl. Int. Int. . .Stockholders´ Equity 240940 Min.Appropriation Transfers 241500 Min. .Dividends Paid 241620 Min.Cur.Diffs .Treasury Stock.Current Year 241300 Min. .Other 240950 Min. Int.ANI Prior to Prop.Cur.Diffs . . Int. Earn. Int.Ret.Cur.Investments 240930 Min.Ret.Investments in Subsid.Transl. Int. .Currency Translation Differences 240910 Min.Appropriations 247000 Minority Interest .Appropriation Deductions 241600 Min. Earn. . Int. . Earn.Ret. . . Rounding 251000 Retained earnings 251100 RE Prior Years 251200 RE Current year 251300 Retained Earnings.Reciprocal Holdings 250800 Stock Dividends to be Distributed 250900 Translation differences 250910 Currency Translation Adjustments .250200 Common Stock .Prop.Clearing of Dividends Paid 251630 Ret..Dividends Paid 251620 Retained earnings .Appropriation Deductions 251600 Ret.Appropriations 300000 Sales revenue 301000 Sales revenue 301100 Sales (Third Parties) 301200 Intercompany Sales 302000 Sales Discounts and Returns 302100 Sales Discounts and Returns (Third Parties) 302200 IC Sales Discounts and Returns 303000 Cost Of Goods Sold 303100 Cost Of Goods Sold 303200 IC Cost Of Goods Sold 304000 Sales Discounts and Returns . Earnings .Investments 250930 Currency Translation Adjustments .CY prior to First Cons 251350 Retained earnings .ESOP Shares 250300 Subscription Receivables 250400 Preferred Stock 250500 Additional Paid-in Capital 250600 Treasury Stock 250700 Treasury Stock .Foreign 305000 Total Expenses (C) SAP AG AC665 14 11111+ 1+ 12111112111111+ 11111221121121122+ B B B B B B B B B B B B B B B B B B B B B B B B B C C C C C C C C C C C C .Stockh.Clearing of Cons of Investment 251800 Ret. Equity 250940 Currency Translation Adjustments . Earnings .Other 250950 Currency Translation Adjustments . Plant & E 250920 Currency Translation Adjustments .ANI prior to Proportion Change 251400 Retained earnings .Bonus Management 251700 Retained earnings .Appropriation Transfers 251500 Retained earnings . Earnings . 306000 Operating Income 310000 Operating Expenses 310100 Raw Materials Consumed 310200 Inventory Valuation 310300 Packaging Materials Expense 310400 Distribution Expenses 310500 Heating and Electricity Expense 310600 Subcontractor Services 310700 Wages and Salaries 310800 Pension and Employee Benefits Expense 310900 Payroll and Withholding Expense 311000 Medical Expense 311100 Building and Equipment Maintenance Expense 311200 Insurance Expense 311300 Auto Expense 311800 Goodwill Amortization Expense 311810 Goodwill Amortization -Purchase 311820 Goodwill Amortization -Proportional 311830 Goodwill Amortization -Equity 311840 Goodwill Amortization -Push-down 311900 Depreciation Expense 311920 Depreciation Expense .Transportation Equipment 311950 Depreciation Expense .Machinery and Equipment 312400 Rent expense 312500 Postage and Shipping Costs 312600 Telephone Expense 312700 Travel Expenses 312800 Supplies Expense 312900 Other General Expense 313000 Other Administrative Expense 313100 Professional Fees 319999 OPEX w/o Depreciation &Amortization 22+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 2+ 1+ 1+ 1+ 1+ 2+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 2+ C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C (C) SAP AG AC665 15 .Furniture and Fixtures 311940 Depreciation Expense .Buildings 311930 Depreciation Expense . Current Federal 340200 Income Tax Provision . 370000 Net Income Before Minority Interest 370100 Minority Interest 380000 Net Income 390000 Annual net income (C) SAP AG AC665 16 2+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1+ 1122+ 2+ 1+ 1+ 1+ 2+ 1+ 1+ 1+ 22+ 1112121+ C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C .Current 340100 Income Tax Provision .Current Foreign 350000 Income Tax Provision .Extraordinary Items-Net of Tax 360300 Gain (Loss) .Deferred Foreign 360000 Income from Continuing Operations 360050 Non-continuing Operations 360100 Gain (Loss) .Deferred State 350300 Income Tax Provision .50% Subsidiaries 321300 Exchange Rate Gains (Losses) 330000 Income before Taxes 335000 Income Tax Provision 340000 Income Tax Provision .Current State 340300 Income Tax Provision .320000 Other Income and Expense 320100 Interest Income 320200 IC Interest Income 320300 Dividend Income 320400 IC Dividend Income 320500 Other Income 320600 IC Other Income 320650 Revenue from Divestitures 320700 Interest Expense 320800 IC Interest Expense 320900 Other Expense 321000 Loss from Write-down Investments 321100 IC Other Expense 321150 Expense from Divestitures 321200 Equity in Net Income of20 .Change in Accounting Principle-Net.Deferred Federal 350200 Income Tax Provision ..Discontinued Operations-Net of Tax 360200 Gain (Loss) .Deferred 350100 Income Tax Provision . Property. Translation Affect.Transl. Plant and Equipment 950920 Stat: Cur.Diff.Diff.Equity Method 932200 Stat: Dividends for Equity Method 932300 Stat: Bonus Management 932400 Stat: Translation differences 932500 Stat: GW Clearing within Cons Group 932600 Stat: Adjustment of Prior Period Earnings 933000 Stat: Goodwill 933100 Stat: Positive Goodwill 933200 Stat: Negative Goodwill 939000 Stat: Overall Offsetting Item 950000 Stat: Stockholders’ Equity 950100 Stat: Common Stock 950200 Stat: Common Stock .Equity 950940 Stat: Cur. . .Offset 931500 Adjusted annual net income 931600 Adjusted Annual Net Income . .Transl.Transl. . Earnings 930000 Stat: Other Items 931000 Stat: Annual net income 931100 Total annual net income 931200 Total Annual Net Income.Transl.Diff.Rounding 951000 Stat: Retained earnings (C) SAP AG AC665 17 1+ 2211+ 11+ 112111111211+ 12111111112111112- D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D .ESOP Shares 950300 Stat: Subscription Receivables 950400 Stat: Preferred Stock 950500 Stat: Additional Paid-in Capital 950600 Stat: Treasury Stock 950700 Stat: Treasury Stock Reciprocal Holdings 950800 Stat: Stock Dividends to be Distributed 950900 Stat: Translation differences 950910 Stat: Cur. .910000 Selected Item for Cur.Diff.Investments 950930 Stat: Cur.Other 950950 Stat: Cur.Offset 931300 Minority interest in annual net income 931400 Minority Interest in Annual Net Income .Diff.Minority Interest 932000 Stat: Stockholder Equity for Equity Method 932100 Stat: Annual Net Income .Transl. Equity 962300 Stat: Neg.Appropriation Transfer 951500 Stat: Ret.Appropriations 962000 Stat: Neg.Bonus Management 951700 Stat: Ret.GW Amort.Dividends f. Earnings . Period Earnings C-1000 C-2000 C-3000 C-4000 C-5000 EBITDA Group Share Group Share with Voting Rights Group Share Without Voting Rights Group Share in Annual Net Income Group Share. SH Equity .ANI prior Proportion Change 951400 Stat: Ret. Earnings .Appropriation Deductions 951600 Stat: Ret. SH Equity .951100 Stat: RE Prior Years 951200 Stat: RE Current year 951300 Stat: Retained Earnings. Earnings . SH Equity .Adjusted Pr.Clearing Cons of Investments 951800 Stat: Ret.Clearing Distribution of Dividends 951630 Stat: Ret. in Cons Group 962600 Stat: Neg. Earnings . Direct 1111111111121111111+ 1+ 1+ 1+ 1+ 2+ D D D D D D D D D D D D D D D D D D D D D D D C (C) SAP AG AC665 18 .Dividends Paid 951620 Stat: Ret.Currency Translation Diffs 962500 Stat: Neg. SH Equity .CY prior to First Cons 951350 Stat: Retained Earnings.Bonus Management 962400 Stat: Neg. Stockholders' Equity for Equity Method 962100 Stat: Neg. Earnings . Earnings . Earnings . SH Equity . Equity 962200 Stat: Neg. SH Equity .Annual Net Income f.