AC665 Integration

AC665 IntegrationAC665

R/3 System Release 46C 04/26/2001

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AC665 Integration..........................................................................................................................................................0-1

Copyright....................................................................................................................................................................0-2

Enterprise Controlling............................................................................................................................................0-4

Course Prerequisites...............................................................................................................................................0-5

Target group...........................................................................................................................................................0-6

Course Goal............................................................................................................................................................0-7

Course Objectives...................................................................................................................................................0-8

Course Content.......................................................................................................................................................0-9

Main Business Scenario.......................................................................................................................................0-10

Course Overview Diagram...................................................................................................................................0-11

Group Control: Procedures and Infrastructure...........................................................................................................1-1

Group Control: Procedures and Infrastructure Unit Objectives.............................................................................1-2

Course Overview Diagram.....................................................................................................................................1-3

Group Control: Procedures and Infrastructure Business Scenario.........................................................................1-4

Managing a Global Enterprise................................................................................................................................1-5

Strategy: Decentralizing Responsibility.................................................................................................................1-6

Consolidation: Requirements.................................................................................................................................1-7

Enterprise Controlling............................................................................................................................................1-8

Strategic Enterprise Management...........................................................................................................................1-9

SAP Consolidation - Future Development...........................................................................................................1-10

EC-CS: Functions.................................................................................................................................................1-11

Model Group: IDES.............................................................................................................................................1-12

Strategic Business Unit........................................................................................................................................1-13

Enterprise Structure and Consolidation Type.......................................................................................................1-14

Profit Center Consolidation..................................................................................................................................1-15

Data Stream..........................................................................................................................................................1-16

Performance Key Figures in the Model Group....................................................................................................1-17

Group Control: Procedures and Infrastructure Unit Summary.............................................................................1-18

Exercise Data........................................................................................................................................................1-19

Group Control-Solutions......................................................................................................................................1-29

Integrated Data Transfer: FI.......................................................................................................................................2-1

Integrated Data Transfer: FI Unit Objectives.........................................................................................................2-2


Integrated Data Transfer: FI Business Scenario....................................................................................................2-4

Integration of Master Data......................................................................................................................................2-5

EC-CS: Data Structures..........................................................................................................................................2-6

Organizational Structures.......................................................................................................................................2-7

Consolidation Dimension and Hierarchies.............................................................................................................2-8

Business Area Consolidation..................................................................................................................................2-9

Versions................................................................................................................................................................2-10

Ledger and Currency............................................................................................................................................2-11

Consolidation Chart of Accounts.........................................................................................................................2-12

Chart and Breakdown Category...........................................................................................................................2-13

Subitems...............................................................................................................................................................2-14

Global Session Parameters...................................................................................................................................2-15

Financial Accounting............................................................................................................................................2-16

Preparation in FI...................................................................................................................................................2-17

IMG Settings: Different Systems.........................................................................................................................2-18

FI: Organizational Elements.................................................................................................................................2-19

Assignment: Company Code - Company.............................................................................................................2-20

Additional Account Assignment: Business Area.................................................................................................2-21

Assignments: Asset Master Record......................................................................................................................2-22

Trading Partner Information: FI...........................................................................................................................2-23

Preparation in FI: Document Type.......................................................................................................................2-24

Company Code Assignment: Business Area........................................................................................................2-25

Consolidation Business Area................................................................................................................................2-26

Preparation for Business Area Consolidation.......................................................................................................2-27

Business Area Adjustment...................................................................................................................................2-28

Transaction Types................................................................................................................................................2-29

Preparation in FI: Functional Areas.....................................................................................................................2-30

Preparations: Controlling......................................................................................................................................2-31

Preparations: Materials Management...................................................................................................................2-32

Preparations: Sales...............................................................................................................................................2-33

Integrated Data Transfer: FI Unit Summary.......................................................................................................2-34

Integrated Data Transfer-Exercises......................................................................................................................2-35

Integrated Data Transfer-Solutions......................................................................................................................2-42

Data Transfer Methods: FI Data.................................................................................................................................3-1

Data Transfer Methods: FI Data Unit Objectives...................................................................................................3-2


Data Transfer Methods: FI Data Business Scenario...............................................................................................3-4

Consolidation With Different Releases..................................................................................................................3-5

Data Transfer Methods...........................................................................................................................................3-6

Prepare Data Transfer.............................................................................................................................................3-7

Sender System: Data Transfer Method...................................................................................................................3-8

Realtime Update.....................................................................................................................................................3-9

Rollups..................................................................................................................................................................3-10

Transferring Values from Transaction G/L Accounts..........................................................................................3-11

Creating a Group Chart of Accounts/Items..........................................................................................................3-12

FI Accounts / Secondary Cost Elements..............................................................................................................3-13

Periodic Extract....................................................................................................................................................3-14

Transaction Accounts - Periodic Extract..............................................................................................................3-15

Data Transfer Methods Periodic Extract..............................................................................................................3-16

Assigning Consolidation Types to Dimensions...................................................................................................3-17

Converting Organizational Units..........................................................................................................................3-18

Organizational Units: Rules for ID Combination.................................................................................................3-19

Maintaining Hierarchies.......................................................................................................................................3-20

Realtime Updates: Defining Document Types.....................................................................................................3-21

Defining Data Streams.........................................................................................................................................3-22

Data Transfer Methods: FI Data Unit Summary..................................................................................................3-23

Data Transfer methods-Exercises.........................................................................................................................3-24

Data Transfer methods-Solutions.........................................................................................................................3-33

Consolidation Activities and Reporting.....................................................................................................................4-1

Consolidation Activities and Reporting: Unit Objectives......................................................................................4-2


Consolidation Activities and Reporting: Business Scenario..................................................................................4-4

Preparing Consolidation Activities and Reporting.................................................................................................4-5

Carrying Forward Balances....................................................................................................................................4-6

Methods of Transferring Data to EC-CS................................................................................................................4-7

EC-CS: Entering Additional Financial Data..........................................................................................................4-8

Determining Contra Items......................................................................................................................................4-9

Calculating Retained Earnings: Selected Items....................................................................................................4-10

Validation.............................................................................................................................................................4-11

Currency Translation............................................................................................................................................4-12

Data Monitor........................................................................................................................................................4-13

Consolidation Monitor.........................................................................................................................................4-14

Interunit Elimination............................................................................................................................................4-15

Document Matching.............................................................................................................................................4-16

Information System..............................................................................................................................................4-17

Consolidation Activities and Reporting: Unit Summary......................................................................................4-18

Exercises...............................................................................................................................................................4-19

Solutions...............................................................................................................................................................4-21

Integrated Data Transfer: EC-PCA............................................................................................................................5-1

Integrated Data Transfer: EC-PCA Unit Objectives..............................................................................................5-2


Integrated Data Transfer: EC-PCA Business Scenario..........................................................................................5-4

Data Stream............................................................................................................................................................5-5

Profit Center Hierarchy..........................................................................................................................................5-6

Global Settings: Profit Center................................................................................................................................5-7

Profit Center: Master Record..................................................................................................................................5-8

Profit Center Assignment.......................................................................................................................................5-9

Profit Center Origin: Asset Master Record..........................................................................................................5-10

CO and FI Reconciliation.....................................................................................................................................5-11

Preparation for Profit Center Consolidation.........................................................................................................5-12

Global Session Parameters...................................................................................................................................5-13

Profit Center Consolidation: Hierarchy................................................................................................................5-14

Partner Relationships: EC-PCA...........................................................................................................................5-15

Logistics: Partner Profit Center............................................................................................................................5-16

LO Partner Assignment: One-Client System.......................................................................................................5-17

Balance Sheet Profit Centers................................................................................................................................5-18

Profit Center: Additional Balance Sheet Accounts..............................................................................................5-19

EC-PCA Preparing Data: Unit Summary.............................................................................................................5-20

Integrated Data Transfer: EC-PCA Exercises. 5-21

Integrated Data Transfer-Solutions......................................................................................................................5-23

Data Transfer Methods: EC-PCA...............................................................................................................................6-1

Data Transfer Methods: EC-PCAUnit Objectives.................................................................................................6-2


Data Transfer Methods: EC-PCABusiness Scenario.............................................................................................6-4

Assigning Consolidation Types to Dimensions.....................................................................................................6-5

Converting Organizational Units............................................................................................................................6-6

Organizational Units: Rules for ID Combination...................................................................................................6-7

Transferring/Editing Hierarchies............................................................................................................................6-8

EC-PCA: Transferring FS Items / Data..................................................................................................................6-9

Transfer Data: Defining Data Streams.................................................................................................................6-10

Standard Rollup....................................................................................................................................................6-11

Rollup Header.......................................................................................................................................................6-12

Rollup Header: Reset Set......................................................................................................................................6-13

Rollup Header: Defining The Rollup Set.............................................................................................................6-14

Rollup Sequence...................................................................................................................................................6-15

Standard Exits.......................................................................................................................................................6-16

Field Transfer and Standard Exits........................................................................................................................6-17

Rollup in Different Systems.................................................................................................................................6-18

Data Transfer Methods: EC-PCAUnit Summary.................................................................................................6-19

Exercises.........................................................................................................................................6-20

Data Transfer methods-Solutions.........................................................................................................................6-25

Key Figures................................................................................................................................................................7-1

Key Figures: Topic Objectives...............................................................................................................................7-2


Key Figures: Business Scenario.............................................................................................................................7-4

EC-CS Reporting....................................................................................................................................................7-5

Reporting................................................................................................................................................................7-6

Technique for Cash Flow Reports..........................................................................................................................7-7

Performance Key Figures in the Model Group......................................................................................................7-8

Performance Key Figures I.....................................................................................................................................7-9

Performance Key Figures II.................................................................................................................................7-10

Key Figures in the Consolidated Chart of Accounts............................................................................................7-11

Reconciliation of FI and PCA Results in EC-CS.................................................................................................7-12

Key Figure ROA - Report in EC-CS....................................................................................................................7-13

Performance Key Figures: Trends........................................................................................................................7-14

EVA®: Influencing Factors.................................................................................................................................7-15

Task Distribution: Controlling / Group Accounting............................................................................................7-16

EVA® with SAP EC-EIS and inSight..................................................................................................................7-17

EVA®: Weighted Average Cost of Capital.........................................................................................................7-18

Key Figures: Unit Summary.................................................................................................................................7-19

Key figures-Exercises...........................................................................................................................................7-20

Key Figures-Solutions..........................................................................................................................................7-21

Appendix....................................................................................................................................................................8-1

Example: LO Integration with FI and EC-PCA.....................................................................................................8-2

Example: LO Integration with FI and EC-PCA.....................................................................................................8-3

Purchase Order.......................................................................................................................................................8-4

Delivery and Picking..............................................................................................................................................8-5

Goods Issue............................................................................................................................................................8-6

Goods Receipt........................................................................................................................................................8-7

Invoicing.................................................................................................................................................................8-8

Incoming Invoice....................................................................................................................................................8-9

-.............................................................................................................................................................................8-10

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SAP AG 1999

AC665 Integration

SAP AG

AC665AC665

EC-CSIntegrationEC-CSIntegration

R/3 Release 4.6B December 1999 Material number 5003 5819

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SAP AG 1999

Copyright 2001 SAP AG. All rights reserved.

Neither this training manual nor any part thereof maybe copied or reproduced in any form or by any means,or translated into another language, without the priorconsent of SAP AG. The information contained in thisdocument is subject to change and supplement without prior notice.

All rights reserved.

Copyright

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SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

Design: SAP Communications Media

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Enterprise Controlling

Cost Management and Controlling

AC040 5 days

Financial Accounting and Reporting

AC010 5 days

Profit CenterAccounting

AC610 2 days

EC-CS: Consolidationfunctions

AC660 5 days

Financial ClosingAC205 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 dayExecutive 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: IntegrationAC665 3 days

A

ControllingA Enterprise ControllingB Financial AccountingC

CapitalConsolidation

C

C

C

B

B

B B B

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Required

Knowledge of business processes

Basic knowledge of accounting:individual financial statements and consolidation

Recommended

SAP20 - Overview of SAP R/3

AC010 - Overview of External Accounting

AC660 - Consolidation Functions

Course Prerequisites

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Participants:

Project managers, project teams

Consultants

Duration: 3 days

Target group

Remarks 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.

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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

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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

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Unit 5 Integrated Data Transfer:EC-PCA

Unit 6 Data TransferMethods: EC-PCA

Unit 7 Key Figures

Unit 1 Group Control:Procedures and Infrastructure

Unit 2 Integrated Data Transfer: FI

Unit 3 Data TransferMethods: FI Data

Unit 4 Consolidation Activities and Reporting

Preface

Exercises

Solutions

Appendix

Course Content

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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

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EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System

EC-PCAProfit Center Accounting

PCA Data

CO ControllingFI-GL General Ledger

Course Overview Diagram

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SAP AG 1999

Requirements for Consolidation Systems

The IDES Model Group

Group Control: Procedures and Infrastructure

Contents

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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

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EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System


PCA Data



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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

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Enterprise Management

?

AR

USA

MEX

DF

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

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.

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AR

USA

MEX

DF

E

J

Enterprise Management

StrategicBusiness Unit

Targets

Reports

America Europe/Africa Asia

B

C

A

Strategy: Decentralizing Responsibility

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.

Enterprise goals are increasingly being set "from the outside" - by shareholders, for example. Enterprise management now has the task of implementing these goals internally.

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.

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.

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External Group Reporting / Consolidation

Reporting procedure in accordance with international reporting regulations:US GAAP, IAS...

Internal Group Reporting / Consolidation

Management consolidation: business areas, profit centers

Various data categories, including actual data, budget, forecast

Enterprise Key Figures

Calculation at various hierarchy levels

Consolidation: Requirements

Automatic creation of consolidated financial statements Flexible definition of consolidation methods 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.

In management consolidation, the consolidation areas can be profit centers or business areas. 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.

The standard system includes all international consolidation methods that are commonly used.

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Management Cockpit

Executive Board

FinancialExecutives


EC-BP

Online Info

Managers

EC-EIS

EC-CS

EC-PCA

Markets

Non-SAPNon-SAPTransaction Applications


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.

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.

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.

EC-PCA provides information on profitability and capital tie-up in units that are responsible for earnings (profit centers).

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CorporatePerformance

Monitor(CPM)

BusinessPlanning &Simulation

(BPS)

BusinessInformationCollection

(BIC)

StakeholderRelationshipManagement

(SRM)

SAP SEMSAP SEM

BW

BusinessConsoli-

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

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).

One of the main advantages of SAP SEM is the support it offers to strategic management processes by linking strategic and operational actions.

Internal control of an enterprise can be carried out using value-oriented management principles.

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SAP ConsolidationEngine

EC-CSConsolidation

SEM-BCSBusiness Consolidation

Value BasedManagement

Functions

R/3 OLTP Structures

fixed partiallyflexible

BWOLAP Structures

SAP Consolidation - Future Development

SAP SEM is an analytical application and is based on complex OLAP and Data Warehouse technology (OLAP: Online Analytical Processing).

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.

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.

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).

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EC-CS: Functions

CurrencyTranslationVersions

SimulationRestatement

Master Data

Validation

Profit and loss Statement

123

CASales

B50

Interactive Excel

Manual Posting

Drilldown Reports

Monitor

OK

ERR

Data Collection• FI Interface• CO Interface

• PC Data Transfer• Flex. File Upload

Report WriterReport Painter

Interunit Elimination Profit Elim. in Inventory Consolidation of Investments Reclassification

Automatic Consolidation

MS Access

Applications of EC-CS : Company consolidation Management consolidation

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

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SBU 6000 Pharma

DIV 62 Diabetical

SubsidiaryC20000 IDES New York

Parent Company C10000 IDES Palo Alto Insulin Products

for Distribution

Medical Substances & Packaging Material


SBU 6000 Pharma

DIV 61 Analgesics

DIV 62 Diabetical

SubsidiaryC30000 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 UnitDIV: Division

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.

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Product Line MONO

AS Asparax PCM Paracetamol

Analgesics Division

Analgesics Division

Product Line COMBO

Codeine Codeine & PCM Azur Codeine & AS

Product Line Human based Insulin

Insulin H-Insulin

DiabeticalDivision

DiabeticalDivision

Product Line Animal based Insulin

B-Insulin

Strategic Business Unit "Pharma"

The IDES model group has divided its enterprises into the segments Pharma /Chemicals, Services, and Corporate and Others.

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 linesHuman based insulinAnimal based Insulin

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.

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.

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Palo Alto

Chicago New York

Palo Alto / Pharma

Chicago /Chemicals

Chicago /Services

New York /Pharma

ConsolidationGroup

ConsolidationUnit

Hierarchy 1: Companies

Palo Alto / Pharma

Pharma Chemicals Services Corporate Other

New York /Pharma

ConsolidationGroup

ConsolidationUnit

Hierarchy 2: Business areas

... ...

H2H2

H1Dimension:Business area Consolidation

Enterprise Structure and Consolidation Type

The internal structure of the enterprise is reflected in the organizational elements of external accounting (for a segment report procedure according to international rules).

In EC-CS, three consolidation types are provided for use in integration with SAP transaction applications: Company consolidation Business area consolidation Profit center consolidationThese consolidation types are displayed in dimensions. Dimensions allow various views of the consolidation data. These can be stored and managed separately for each dimension.

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.

The business object consolidation unit is the smallest unit in group structuring on the basis of which complete consolidation can be carried out.

The business object consolidation group is an arbitrary grouping of several consolidation units for the purpose of consolidation and reporting.

The consolidation units and groups are assigned hierarchically to a top consolidation group. A dimension comprises at least one hierarchy structure.

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Consolidated dataConsolidated data

SEG ASEG APharma Pharma & Chemicals& Chemicals

SBUSBUChemicalsChemicals

DIVDIVMedical SubstancesMedical Substances

Acetyl

Paracetamol

H-Insulin

SEG BSEG BServicesServices

SEG CSEG CCorporate and OthersCorporate and Others

SBUSBUPharmaPharma

DIVDIVAnalgesicsAnalgesics

DIVDIVDiabetical ProductsDiabetical Products

MonoMono ComboCombo

AS PCM

HH--InsulinInsulin AA--InsulinInsulin

Insulin H-Insulin

Strategic Business Unit

Division

Product Line

Product

EC-CS ConsolidationUnit

Palo AltoInsulin

New YorkInsulin

Profit Center Consolidation

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.

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COCO--PAPA

HRHR

Cost CenterOrderProject

P&L Accountsand CO Object

Bal. Sheet AcctSDSD

MMMM

BPBusiness Planning

EISExecutive

Information System

EC-CS ConsolidationDimension

FI DataConsolidation Unit = Company /

Business Area

PCA DataCU = Company / Profit Center

EC-PCAProfit Center AccountingProfit Center, Company Code

CO ControllingFI-GL General Ledger AssetsReceivablesPayables

AssetsReceivablesPayables

WIP InventoryOther.

WIP InventoryOther.

Data Stream

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.

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1.17

SAP AG 1999

Consolidated dataConsolidated dataEnterprise


Division

Product Line

Product

CF Total Cash FlowROCE Return on Capital EmployedEBITDA 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

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.

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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

OrganizationalElements

CompanyName

C10000 IDES Palo Alto

C20000 IDES New York

C30000 IDES Chicago

Company codeName

C100 IDES Palo Alto

C200 IDES New York

C300 IDES Chicago

Business areaName

4000 Chemicals

6000 Pharma

8000Services

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 accountName

Example: 1440##40 + your group no. 14 144054This example applies to all G/L accounts.

Receivables, affiliated companies

1440##Gr. ##

144000

Receivables, affiliated companiesBusiness area adjustment account1449##

Receivables, affiliated companiesBusiness area adjustment account144098

Payables, affiliated companies

1640##Gr. ##

164000

Payables, affiliated companiesBusiness area adjustment account1649##

Payables, affiliated companiesBusiness area adjustment account164098

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-CSCons. chart of accounts

01 US, ARE Balance Sheet, COGS

01 US, ARE Balance Sheet, COGS

(C) SAP AG AC665 21

Name

(C) SAP AG AC665 22

Group account Group chart of accounts is identicalto item in consolidation chart 01

Example: 1301##40 + your group no. 14 130154This example applies to all group charts/items in consolidation chart of accounts 01.

Group accountName

Receivablesaffiliated companies 1301##

Receivablesaffiliated companies130100

Receivables, affiliated companiesBusiness area adjustment account1301##

Receivables, affiliated companiesBusiness area adjustment account130100

Payables, affiliated companies2101##

Payables, affiliated companies210100

Payables, affiliated companiesBusiness area adjustment account2101##

Payables, affiliated companiesBusiness area adjustment account210100

Net sales,affiliated companies3012##

Net sales,affiliated companies 301200

Consumption of raw materials 3101##

Consumption of raw materials310100

Standard Hierarchy CUSAStandard hierarchy of controlling area C001 for all course groups

CUSAStandard hierarchy of controlling area C001

(C) SAP AG AC665 23

Cost centerName

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 CenterStandardHierarchy

C-Top-1North America

C-Top-1North America

Profit CenterName

C-BA-6-BSB/S Business Unit PHARMA

C6111 AS

C6112 PCM

C-BA-4-BSB/S Business Unit CHEMIE

C4311Acetyl

C4312Paracetamol

C9902 Administration

(C) SAP AG AC665 24

Dimension Name

A2 through T2Business area consolidation Gr##Example:A2: Gr01B2: Gr02J2: Gr10

02Business area consolidation

A3 through T3Profit center consolidation Gr##

03Profit center consolidation

(C) SAP AG AC665 25

Worksheet for exercise data: Group_____ ________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

(C) SAP AG AC665 26

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 27

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 28

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 29

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


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

BPBusiness Planning

EISExecutive

Information System



EC-CS Consolidation

Dimension FI Data PCA Data


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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

Companies

Business Areas

Profit Center

Accounts

Secondary Cost Elements

Add. Account Assignments (Region, Functional Area, Cost Center...)

Consolidation System

Dimension Version Ledger

Organizational Units:- Consolidation Units- Consolidation Groups- Consolidation Hierarchy

Consolidation Chart of Accounts, Financial Statement Items

Subitems

FIFI EC-CSEC-CS

Integration of Master Data

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.

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.

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.

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

... ......

ConsolidationGroup

Chicago

ConsolidationUnit

Legal Business Unit:CompanyLegal Business Unit:Legal Business Unit:CompanyCompany

Organizational Structures

Group Dimension:Group Dimension:Hierarchy of Companies and Business AreasHierarchy of Companies and Business Areas

Strategic Business Unit:Business Area

The company forms the basis for generating consolidation units. The business object consolidation unit is the smallest unit in group structuring on the basis of which

complete consolidation can be carried out. The business object consolidation group is an arbitrary grouping of several consolidation units for the

purpose of consolidation and reporting. 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

H1H1Hierarchy

Dimension:Business Area Consolidation

Consolidation Dimension and Hierarchies

CU: Consolidation UnitCG: Consolidation Group

A dimension defines a specific characteristic of group reporting - for example, company consolidation, business area consolidation, or profit center consolidation.

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.

The consolidation units and groups are assigned hierarchically to a top consolidation group.A dimension comprises at least one hierarchy structure.

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

ConsolidationUnit

ConsolidationUnit

Automatic Assignment of Business Areas

Group

H2H2

Pharma Chemicals Corporate/Other

Business Area Consolidation

Company XY / Corporate /Other

BankEquityTaxes

Services

Chicago /Services

Transferred AssetsReceivablesPayablesBalancesP&L

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.

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.

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

Book depreciation

Book depreciation

Consolidated data

Consolidated data

EUEU

Trade Law

Trade LawGroupGroupUSUS--GAAP

GAAP

Trade Law

Trade Law(local)(local)

Tax LawTax Law(local)(local)

US-GAAP VersionEC-CSECEC--CSCS

FI-APFIFI--APAP

FI-ARFIFI--ARARFI-

AAFIFI--AAAA

MMMMMM

PSPSPS

COCOCO

ECMCTECMCTECMCT

Totals Database

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.

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.

You can also carry out simulations, for example on the basis of different exchange rates or changes in the group structure.

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

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.

The data in the ECMCT totals table can be maintained in three currencies: Transaction currency Currency of the consolidation unit Ledger currencyThe ledger currency specifies the currency of the consolidation group.

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).

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

DimensionCompany

Consolidation

DimensionProfit Center

Consolidation

DimensionBusiness 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

FIFI

COCO

External Charts of Accounts

ECEC--CSCS

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.

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.

Within a consolidation dimension, you can use several consolidation charts of accounts to generate consolidated financial statements in parallel.

Financial statement items are of central importance in data transfer, posting, and reporting. 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.

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

0101 Consolidation Chart of Accounts

Value Item

Totals Item

Totals Item

...

Subitem Partner CurrencyYear 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

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.

You can save short, medium, and long descriptive texts for each financial statement item. 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.

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.

The FS item category can be freely defined by the user, for example to mark financial statement items as key figure items.

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.

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2.14

SAP AG 1999

ECEC--PCAPCA

Subitems

Accounting documentFI

ECEC--CSCS

FS itemSubitem categorySubitem

Fixed assetTransaction typeDivestiture

The use of subitems depends on the FS item.

Net SalesCountryGermany

ExpenseFunctional areaSales

FS ItemG/L account Subitem

Business area FI-GL account Cost center

Transaction type Functional area Customer's country

SubitemCategory

Consolidatedsales revenueby customerregions (market)

Consolidatedincome statement by cost of salesaccounting

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.

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.

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.

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 LegalVersion 100 Actual dataYear YYYYPeriod MMM

Cons C/A 01 US ChartLedger US USD

Parameters

EC-CSEC-CS

Global Session Parameters

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.

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.

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 consolidationunits

Custom characteristics

Assignment of charts of accounts to cons C/A

Master data subitem category

Assignment of accounts -FS items

EC-CS: Data

TTyCountryRegion...

Customizing Dimension

Consolidationunit

Version

Cons chart/accts

Ledger

FS item

Subassignment

Definition of globalorganizational units

Fiscal year/ Period

Company codeBusiness area...

Realtime update forconsolidation types• Company• Business area

Posting date

Add. acct assignments

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).

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.

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.

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.

In business area consolidation, a consolidation business area must be assigned from the receiver system. 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.

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2.18

SAP AG 1999

ECEC--CSCS• Companies

• ConsolidationBusiness Area

• Group Chart of Accounts

• Consolidation Transaction Type

Transaction systemConsolidationSystem

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

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.

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.

The same applies for the structure of organizational units for profit center consolidation.

(C) SAP AG AC665 18

2.19

SAP AG 1999

Company C10000Company C10000 C20000C20000 C30000C30000 -- -- --

Company Code C100Company Code C100Company Code C100 C200C200C200 C300C300C300

Client

.........

Business Area

9900

8000

6000

4000

X

X

X

XX

XX

FI: Organizational Elements

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.

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.

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.

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 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.

The above example uses the following organizational units:Companies: Business Areas:C10000: IDES Palo Alto 4000: ChemicalsC20000: 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-SAPNonNon--SAPSAP

CompanyCode ...

Chart of Accounts ...

CompanyCode C100

CompanyCode C200

Chart of Accounts CAUS

FIFI

. . .

EC-CSECEC--CSCS

Systems

Client 001

CompanyC10000

CompanyCompanyC10000C10000

CompanyC20000

CompanyCompanyC20000C20000

Company...

CompanyCompany......

Company...

CompanyCompany......

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).

For the purpose of integrated data transfer, you have to assign the company codes of the transaction system to the companies of the group.

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.

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. 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

FIFI--AAAA Fixed AssetsFixed Assets

SDSD Sales and DeliverySales and DeliveryMM MM

MaterialsMaterials

PSPS ProjectsProjects

Project

ValuationArea

Plant Material

Division

Asset

SalesOrganization

DistributionChannel

CO CO -- ControllingControlling

InvestmentMeasure

Cost center Order

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.

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.

Partner-specific information from the combination of company/business area forms the basis for integrated business area consolidation.

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

CostCost CenterCenter C100C4311MC100C4311M

•• CompanyCompany CodeCode C100C100•• Business AreaBusiness Area 4000 4000 •• Profit CenterProfit Center C4311C4311

Order ##########

• Company Code C100• Business Area• Profit Center C4311

OrderOrder ####################

•• CompanyCompany CodeCode C100C100•• Business AreaBusiness Area•• Profit CenterProfit Center C4311C4311

CO

4000

4000

CostCost CenterCenter

OrderOrder

C100C4311MC100C4311M

Book depreciation

. . .

CostingCosting

Asset

1

Business Area 4000

Time-dependent DataTimeTime--dependent Datadependent Data

Depreciation AreasDepreciation AreasDepreciation Areas

FIFI--AAAA

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.

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.

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.

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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 inDocument

Business Area - Partner Business Area

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.

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.

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.

Alternatively, the trading partner can also be set manually in the document. 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.

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2.24

SAP AG 1999

Preparation in FI: Document Type

Document Type:

Controls postingto line item

1 Customer / 1 Vendor

Trading partner company can be assigned

Not intercompany

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.

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SAP AG 1999

Company Code Assignment: Business Area

Company Code Business DefaultArea

IDES Palo Alto Pharma XYCorporate ......

IDES New York PharmaCorporate

IDES Chicago ChemicalsServicesCorporate

Business Area Pharma

IDES Palo Alto

Consolidation Unit:XY/Palo Alto

FIFI

ECEC--CSCS

ConsolidationBusiness Area

GlobalLocal

Organizational Units:

Company

Palo Alto

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.

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SAP AG 1999

Consolidation Business Area

CompanyCompany 100000/100000/CompanyCompany Code 1000Code 1000

Sender System XXX:contains local and globalcharacteristics

...

Group

ConsolidationBusiness Area AB

Receiver System YYY:contains global characteristics

Consolidation Type:Business Area Consolidation

Business AreaBBBB

Business AreaAAAA

FIFIECEC--CSCS

Non-SAPNonNon--SAPSAP

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.

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SAP AG 1999

Preparation for Business Area Consolidation

Activate business area balance sheetsMaintain field status groups for G/L accounts

G/L Account: Balance sheet for business area clearingAssign accounts for adjustmentsMaintain document type for business area adjustment

Execute balance sheet adjustments

Reconcile balances > Reconcile affiliates (see Execute Consolidation of Investments)

Important for subsequent assignments ofbusiness area and partner business areausing the balance sheet adjustment program

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.

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SAP AG 1999

Business Area Adjustment

FI: Incoming Invoice

Account Business Area Partner BArea Debit Credit

Vendor 1000Expense 1 0001 0003 400Expense 2 0002 0003 600

Business Area Adjustment

Clear. Acct. BArea Partner BArea Debit Credit

Adjustment 4000001 0003 400

6000002 0003 600

BArea: Business Area

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.

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SAP AG 1999

Transaction Types

Retirement . .

Acquisition. . .

Transfer. . .

End ofYear

Start ofYear

Asset History Sheet

Transaction Type# # #

Assign transaction types FI-AA: EC-CS

Transaction types = required input

Account validation: transaction Type

ECEC--CSCS

FIFI--AAAA

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.

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.

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. To do this, you define corresponding validation rules at the document line item level.

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2.30

SAP AG 1999

Preparation in FI: Functional Areas

Invoice

Cost Center 1

(Cost CenterCategory 'A')

Substitution Rule

IF Cost Center Category 'A'

THENFunctional Area400

FI Posting Document

Functional Area 400

Administration

P&L

using cost of sales accounting

FIFI

ECEC--CSCS

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.

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.

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.

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SAP AG 1999

Preparations: Controlling

Transfer costs!!!

Cost Center 10 (Company Code C100)

Cost Center 20 (Company Code C200)

COCO

Specify account determination for reconciliation postings

Maintain document type

Preparation: Reconciliation Ledger

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.

The clearing accounts have either already been assigned in CO Customizing, or they will have to be assigned now.

You can create a separate document type for posting from the reconciliation ledger.

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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

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.

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.

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.

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.

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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

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.

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.

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.

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SAP AG 1999

Integrated Data Transfer: FI Unit Summary


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.

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2.35 Integrated Data Transfer-Exercises

Unit: Integrated Data Transfer: FI

Topic: EC-CS: Data Structures


Create consolidation dimensions

Copy consolidation charts of accounts

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.

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.

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.

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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: 100Fiscal year: current yearPeriod 012Cons. chart of accounts 01Ledger: 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 ExerciseTheoretical 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?

_____________________________________________________________

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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: 02Sender field for subitem: 04 (country of customer)Choose Copy subitems.Save the subitem category . Leave Test Run selected and look at the generated list.

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Topic: Financial Accounting


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, 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: CONSText: NS affiliated Gr##P&L account type: XAccount group: profit & loss accounts

Select P & L account.

Save your data.

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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: C300Text: NS affiliated Gr##Account group: profit & loss accounts


Group account: 3012## (## = your course group number + 40)

Input data on tab Control Data:Account currency: USDTax 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 C001Number: 8020##Valid from: 01/01 of the current yearCost 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?

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2-7 Additional Exercise:Create an asset master record in company code C100. Class 11000Description Bottling plantBusiness area 6000Cost center: C100C6111M Manufact. AS (Palo Alto)Depreciation key: LINRUseful life: 10 yearsSave 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: C300Name: Palo Alto Group ##Search term: Palo Alto ##Postal code: 12345City: Palo AltoCountry: USLanguage: ENReconciliation account: 1440## Receivables - affiliated companies Gr. ##Terms of payment: 0001

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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: C100Account group: LIEF Name: Ch##Postal code: 45600City: ChicagoCountry: USLanguage: ENReconciliation 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:

1440## "Receivables from affiliated companies Gr. ##", and

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?

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2.36 Integrated Data Transfer-Solutions


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

SAP Menu Accounting Enterprise Controlling Profit Center Accounting Master Data Profit Center Maintain Profit Center

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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: 100Fiscal year: current yearperiod: current periodCons chart of accounts: 01Ledger: US

SAP Reference IMG Enterprise Controlling Consolidation Specify Global Parameters

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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 ExerciseTheoretical 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

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1-8 Additional ExerciseCreate 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: 02Sender 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

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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

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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: CONSText: NS affiliated Gr##P&L account type: XAccount group: profit & loss accounts


Save your data.

SAP Menu Accounting Financial accounting General ledger Master records Single editing Chart of accounts

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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: C300Text: NS affiliated Gr##Account group: profit & loss accounts


Group account: 3012## (## = your course group number + 40)

Input data on tab Control Data:Account currency: USDTax 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.

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2-5 For your postings later on, create a primary cost element called “Net sales - affiliated companies”.

Input data:Controlling Area C001Number: 8020##Valid from: 01/01 of the current yearCost 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: 6000Cost center: C1006111M Manufact. Product Acetyl

Tab Valuation:Depreciation key: LINRUseful life: 10 years

Save your data.Please enter the number of the asset master record in the "Exercise Data" worksheet.

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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: 12345City: Palo AltoCountry: USLanguage: 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.

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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: C100Account group: LIEF Name: Chicago group ##Search term: Ch##Postal code: 45600City: ChicagoCountry: USLanguage: ENReconciliation 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:

1440## "Receivables from affiliated companies Gr. ##", and

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.

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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 52

3

SAP AG 1999

Data Transfer Methods

Assignments in EC-CS

Data Transfer Methods: FI Data

Contents

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3.2

SAP AG 1999


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

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3.3

SAP AG 1999

EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System


PCA Data



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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

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3.5

SAP AG 1999

4.XEC-CS

Non-SAP system3.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

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.

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).

It is also possible to transfer data from SAP systems by means of periodic extracts and rollups. Data from non-SAP systems can be imported using special data entry forms, flexible uploads, and

Microsoft Access.

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3.6

SAP AG 1999

RealtimeUpdate

Periodic Extract

RollupRealtimeUpdate

Periodic Extract

Rollup

Company Consolidation



Central Scenario Decentralized Scenario

Data Transfer Methods

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3.7

SAP AG 1999

ECEC--CSCS Transaction SystemConsolidationSystem

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 tothe sender system

For Rollup: Transfer settings from consolidation system

Activate data transfers

Prepare Data Transfer

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.

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.

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)

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.

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3.8

SAP AG 1999

Group: Fiscal Year Variant:

Active Consolidation TypesActive Consolidation Types

Company

Business Area

Profit Center

EC-CS

FI-LC

RF-KONS

Realtime update

Rollup

Periodic Extract

Consolidation SystemConsolidation System

Company code -Business area

Check

FIFIFI

EC-CSECEC--CSCS

Realtime update

Rollup

Periodic Extract

Sender System: Data Transfer Method

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.

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.

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. 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.

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3.9

SAP AG 1999

SDFIFIFI

MM

FI Document

Realtime

EC-CSECEC--CSCS

FITransaction Figures

FIDocuments

optional

Realtime Update

Ledger USLedger USLedger US

TotalsRecords

Journal Entries

ECMCT

The data transfer method controls how values from the transaction accounts are transferred to the items in the consolidation chart of accounts.

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.

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.

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.

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.

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3.10

SAP AG 1999

Characteristics Key Fig.CU Item ... GC

####xyzabc

Ledger US

EC-CSECEC--CSCS

FIFIFI

CU: Consolidation UnitGC: Value in Group Currency

Transfer on the basis of rules

Sender TableExample: Summary table

with functional areaReceiver Table

EC-CS Totals Records

Rollups

In the standard SAP System, a rollup is a tool for transferring data records from a sender table to a receiver table.

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.

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.

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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

COCO

Cost Elements

1:1FIFI

Realtime Update

Rollup

Post

Consolidated Statements

Cons Chart

Balance Sheets

Income Stmt

Cash Flow Stmt

Statistical Factors

Key Figures

ECEC--CSCS

Transferring Values from Transaction G/L Accounts


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.

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.

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.

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.

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3.12

SAP AG 1999

Cons Chart of Accts

Balance Sheet

Income Statement

Cash Flow Statement

Statistical Factors

Key Figures

ECEC--CSCS

Create group chart of accounts manually

Generate items from chart of accounts

eithereither oror

Generate from consolidation chart

of accounts

Creating a Group Chart of Accounts/Items

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.

If you wish to bundle cost elements, 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.It is not necessary to create either the chart of accounts or the account group in advance. The system creates these automatically.

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.

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3.13

SAP AG 1999

PrimaryCost Elements

Assessment

SecondaryCost Elements

ActivityAllocation

OrderSettlement

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

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.

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.

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.

You cannot assign a group account to a secondary cost element because it is not an FI account.

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3.14

SAP AG 1999

GLT3

Transaction System

Consolidationsystem

FI Doc.

GLT0 GLT3Cons Staging Ledger 09

General LedgerTransactionFigures

ECMCTCons Proc. Ledger

Extract: RFBILA00+

Transfer of the File

Update in EC-CS

Cons Staging Ledger 09

Ledger Currency Data

Parallel Posting

Periodic Extract


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.

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. 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.

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3.15

SAP AG 1999

"Transaction"

Chart of

Accounts

1:1

Transaction Sender Systems

CO

Cost Elements

1:1N:1

GroupFinancialStatement 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

ECEC--CSCS

Post

Transaction Accounts - Periodic Extract

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.

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.

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.

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.

For business area consolidation purposes, the original business area is replaced by the consolidation business area in the data extract.

You cannot use the periodic extract option for transferring 'planned data' since the "Financial Statement Version" program selects only actual data.

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3.16

SAP AG 1999

Integrated Integrated Consolidation TypesConsolidation Types

Company

Business Area

Profit Center

Realtime update

Rollup

Periodic ExtractCompany ######Company ######

Company Code ####Company Code ####

Consolidation Staging Ledger 09

FIFI

Data Transfer MethodsData Transfer Methods

Group: Fiscal Year Variant:

EC-CSECEC--CSCS

Parameters:

Dimension: Business Area Consolidation ... Ledger: US

Master Data Consolidation Units

Data Transfer Methods Periodic Extract

The system assigns the consolidation ledger defined in the global parameters to the integrated consolidation units.

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.

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.

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3.17

SAP AG 1999

Integrated Integrated Consolidation TypesConsolidation Types

Company

Business Area

Profit Center

EC-CSEC-CS

Parameters:

Dimension: Business Area Consolidation ...

Top Node

Dimension Business Area ConsolidationH1H1

Chemicals/Palo AltoChemicals/New York

Hierarchy: Business Areas

Top Node

Chicago/Chemicals Chicago/Services

Hierarchy: Companies

ChemicalsPharmaceuticals

ChicagoPalo Alto

+

Transfer organizational units

Convert into consolidation units

Assigning Consolidation Types to Dimensions

If you use the realtime update, periodic extract, or rollup method, the consolidation units and consolidation groups must be generated automatically.

The data transfer method you choose will determine which organizational elements are proposed.If you wish, you can limit the selection of organizational elements.

You can define a data transfer method for every dimension. 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.

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3.18

SAP AG 1999

FIFI EC-CSEC-CS

Consolidation UnitCompany/Business Area

Company C10000Company C10000

Company Code C100

Company Code Company Code C100C100

Sender Receiver

Data Transfer Method:

Realtime Update


Consolidation Chart of Accounts##

Version ###

ID combination !!!C10000-6000

Business Area6000

Converting Organizational Units

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.

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.

You define ID combination rules for each consolidation type. These rules are used to convert the transaction organizational units to the consolidation unit.

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.

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3.19

SAP AG 1999

C10000-6000 Palo Alto/PharmaceuticalsC20000-6000 New York/Pharmaceuticals

40006000

ChemicalsPharmaConsolidation Units

Consolidation Groups

Business Area

CSOrg. Unit

GroupingCategory

FS item Org.Unit

Prefix Length

1

2

0

1

1

-

6

Company

11

6

22 4

422

11

Rules for ID Combination

C10000C20000C30000

IDES Palo AltoIDES New YorkIDES Chicago

4000600080009900

ChemicalsPharmaServicesCorporate/Other

1

2

Organizational Units: Rules for ID Combination

Example: Business area consolidation CS organizational unit

1 Consolidation unit, 2 Consolidation group Grouping category

0 No grouping1 Group by company2 Group by business area

Position1 Name comes first2 Name comes second

Organizational unit1 Company2 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, for example, 10 characters

(+ prefix)

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3.20

SAP AG 1999

Dimension 02 Cons C/A 01 Version 100 Period MMM/YYYY

...

Group by Segments

Group acc. toCompanies

Business Areas

Business Area ‘___‘Chemicals

Palo AltoNew YorkChicago

...

H1H1

Data CollectionData Collection

Same R/3 System

Upload

Hierarchy StructureHierarchy Structure

Business Areas

Companies

Copy Business AreasCopy Business Areas

Chicago/ ‘___‘Chicago/Chemicals...

Chemicals/Palo AltoChemicals/New York

Maintaining Hierarchies

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.

If a posting does not have a valid business area, a consolidation group Business Area ”__” is generated with the appropriate consolidation units.

The generated hierarchies can be postprocessed. You can also make mass changes if you wish. 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 fromThis function allows you to check, for example, whether the data transfer method was maintained for all

the consolidation units. 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.

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3.21

SAP AG 1999

Doc. type 01 Realtime updateVersion 100

Version 200

Number range 01

Number range 02Postings in

Transaction currency

Local currency

Group currency

100-

100

TC

100-

100

LC

100-

100

GC

200-

200-

FIFI


Document no.:### ### ##1

EC-CSEC-CS

Realtime Updates: Defining Document Types

If you use the realtime update method, the system generates documents. That is why you must define a document type for each dimension.

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.

You can use customer-specific documents types for consolidation. These document types are then taken into account by reports and validations.

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.

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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

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.

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.

More than one data stream can be flagged as active if you use the realtime update method. For each relevant data stream and dimension, the system determines the consolidation type, and uses this

to define the rules for ID combination. 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


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


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


Topic: Assignments in EC-CS


Interpret the ID combination rules used to form consolidation groups and units

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 yearGroup-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: C300Document date/posting date: today’s date

Check the company code by choosing Switch leading company code.

Additional account assignment details:

Profit Center C4311 (Acetyl),

Partner Profit Center C6111 (AS),

Business Area 4000 (Chemicals),

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.



Additional account assignment details:

Cost center C100C6111M (Manufacturing Product Acetyl)

Profit Center C6111 (AS),

Partner Profit Center C4311 (Acetyl)

Business Area 6000 (Pharma)

Partner business area 4000 (Chemicals)


______________________________________________________________

(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: C300Document date/posting date: current posting date


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:

40 % to business area 9900 Administration,

Additional account assignments:Profit Center C9902 (Admin.)Partner business area 6000 (Pharmaceuticals),Partner profit center C6111 (AS)

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 yearCreate entries Document Type: SUPosting date: last day of the month, current yearPosting period: current period Post to profit center: noAudit 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 ExerciseTheoretical 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 ExerciseRun 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, 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


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.

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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

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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 Chemicals6000 Pharmaceuticals8000 External Services9900 Corporate and Others

Hierarchy 02 (companies):C10000 IDES Palo AltoC20000 IDES New YorkC30000 IDES Chicago

Example of consolidation unit:

C20000-# IDES Company New YorkC20000-6000 IDES New York PharmaC20000-9900 IDES New York Corporate and Other

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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:

Use the Assignment menu option to go to the fiscal year variant

Use the Integration menu option to go to the data transfer method.

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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.

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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 yearGroup-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 :

Number ranges/Automatic reversal

Version 100, number range 01

Define number range

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.

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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.



Enter the additional account assignments and scroll to the right:

Profit Center C4311 (Acetyl),

Partner Profit Center C6111 (AS),

Business Area 4000 (Chemicals),

Partner business area 6000 (Pharma)


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 recordProfit center: Posting document

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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



Enter the additional account assignments and scroll to the right:

Cost center C100C6111M (Manufacturing Product Acetyl)

Profit Center C6111 (AS),

Partner Profit Center C4311 (Acetyl)

Business Area 6000 (Pharma)

Partner business area 4000 (Chemicals)


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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



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:

40 % to business area 9900 Administration,

Additional account assignments:Profit Center C9902 (Admin.)Partner business area 6000 (Pharmaceuticals),Partner profit center C6111 (AS)

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

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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)

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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 yearCreate entries Document Type: SUPosting date: last day of the month, current yearPosting period: current period Post to profit center: noAudit 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

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2-13 Additional ExerciseTheoretical 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

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2-16 Additional ExerciseRun 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 ExerciseTheoretical 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”.

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4

SAP AG 1999

Working Through Consolidation Activities

Reporting

Consolidation Activities and Reporting

Contents

(C) SAP AG AC665 1

4.2

SAP AG 1999


Give reasons for having consolidation within an enterprise

Name the various steps involved in consolidation

Consolidation Activities and Reporting: Unit Objectives

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4.3

SAP AG 1999

EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System


PCA Data



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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

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4.5

SAP AG 1999

Preparing Consolidation Activities and Reporting

FI

Document reconciliation

Adjustment

EC-CS

Data monitor:Balance carried forwardEnter additional financial data

Consolidation monitor: Consolidation activities and reporting

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.

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4.6

SAP AG 1999

Carrying Forward Balances

Balance SheetAssets 10,000...Liabilities 10,000

Income StatementNet inc. 1,000

Balance SheetAssets 10,000...Liabilities 10,000

Income StatementBalance carriedforward 1,000

n+1

Closing BalanceOld Year

Opening BalanceNew Year

CarryForward

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.

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.

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.

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.

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4.7

SAP AG 1999

Methods of Transferring Data to EC-CS

FlexibleFlexibleUploadUpload

SingleDocument

R/2

DB

MS AccessMS Access

Manual

Non-SAPNon-SAP

ECEC--CSCS

Rollup

Profit and Loss

123

CASales

B50

MS ExcelMS Excel

PeriodicPeriodicExtractExtract Periodic

offline

Data EntryLayout

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

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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

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.

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.

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4.9

SAP AG 1999

Determining Contra Items

Consolidation task Define contra item/retained earnings

Edit item: Assign contra item

OLD NEW1201 Receivables -1000 0

2011 Payables 0 -1000

Consolidation Items

Item Contra item

1201 Receivables 20112011 Payables 1201

Consolidation Monitor

Execute consolidation task:Item substitution and calculation of retained earnings

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".

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.

The transfers are stored in the totals database (at posting level '_' (space).

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4.10

SAP AG 1999

Calculating Retained Earnings: Selected Items

Assets Liabilities

Expense Revenue

IDES Chicago, Chem.

Assets Liabilities

Expense Revenue

IDES Chicago, Services

Retainedearnings

Annual netincome

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)

30Transaction (1):

Dr: Expense (Services)Cr: Payables (Chemicals)

(1)

(1)

If you use the realtime update method, the consolidation items are updated every time a posting is made. Retained earnings are not posted in FI. Instead, they are calculated as the balance of all expenses and

revenues. 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.

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.

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.

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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 partnerGS3 not allowed

Book value

Sum of incomestatement detailed values

Previous yr.

The concept of user-defined validation is employed in many SAP applications. 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

Validation for a consolidation unit typically takes place after data collection (in local currency) and currency translation (into group currency).

Validation across consolidation units or dimensions is essential for ensuring reconciled data in legal and management consolidation.

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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 SetsTranslation Sets

InventoryAssets

Exchange RatesExchange Rates

Currentrate

Historical

2001

Treatment of Currency translation difference

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.

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.

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).

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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.FD SE Trans Val.SFD

TasksHierarchy of

Groups/Units

Overall

status

... ... ... ...

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.

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.

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). . .

Overall status of consolidation units and consolidation groups Initial stage, open, errors, OK

Detailed status per task Initial stage, open, errors, OK, blocked, unblocked, irrelevant Last changed by/on (date), number of errors/warnings

Actions that are possible: Open/close period. Execute tasks in test/update mode. Block/unblock tasks. Execute all tasks up to next milestone.

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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

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4.15

SAP AG 1999

Interunit Elimination

IDES Group

....PharmaceuticalsChemicals

...

Item Amount Partner

Receiv. 20 Pharma/Palo Alto

. . .Receiv. 50 ...

Item Amount Partner

Pay. - 20 Chemicals/Chicago

Item Amount Partner

. . .

. . .Pay. -60 Chemicals/

Chicago

ChicagoPalo Alto New YorkChicago

Interunit elimination is based on information on the partner consolidation unit.

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4.16

SAP AG 1999

Document Matching

Mail Assignment(Ref. no.)

NotesElimination Entry

Eliminationmethod

Accounting Document

Open ItemMaster Record

Customer/vendor

Document Matching

CCd 1 /CCd 2, Ref.no. 4711

Document date: 3/22/96

EC-CS Consolidation

Itemdetails

Bal. 2Bal. 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

- 10001200 200

700- 600 100

- 350400 50

Cons UnitMasterRecord

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.

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.

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). 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.

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4.17

SAP AG 1999

Information System

ConsolidationConsolidation

Drilldown Reports

Journal Entry Reports Reports

Master data Control data Financial data

Inter-activeExcel

123

CARevenues

B50

Transfer to EC-EIS

Report WriterReport Painter

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

Interactive drilldown reports: Interactive navigation in the data cube of Consolidation Exception reporting, ABC analyses, comments, e-mail, 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, interactive connection (ensures current data) with R/3

(C) SAP AG AC665 17

4.18

SAP AG 1999


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


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 incomeRetained earnings - current year: 251200, subitem 120Annual 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 itemsBalance sheet business area clearing: 239999Retained 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: 100Number range: 03Year: Current yearFrom number: 3000000000To 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

Number ranges/Automatic reversal

Version 100, number range 03

Define number range

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

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.

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

Show tasks

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


Prepare the data transfer for management consolidation.

(C) SAP AG AC665 2

5.3

SAP AG 1999

EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System


PCA Data



(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

COCO--PAPA

HRHR

BPBusiness Planning

EISExecutive

Information System

EC-CS Consolidation

PCA DataConsolidation UnitProfit Center/Company

EC-PCAProfit Center AccountingProfit Center, Company Code

Cost CenterOrderProject

P&L AccountAcc. Assign. to CO object

Bal. Sheet AccountSDSD

MMMM

CO ControllingFI-GL General Ledger AssetsReceivablesPayables

AssetsReceivablesPayables

WIP InventoryOther

WIP InventoryOther

Data Stream

Example: Company sells a product to an affiliated company.(The presentation of this processes is in the appendix.)

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.

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

GroupGroup

SEG ASEG APharma & ChemicalsPharma & Chemicals

SBUSBUChemicalsChemicals

DIVDIVMedical SubstancesMedical Substances

AcetylAcetyl

ParacetamolParacetamol

HH--InsulinInsulin

SEG BSEG BServicesServices

SEG CSEG CCorporate and OthersCorporate and Others

SBUSBUPharmaceuticalsPharmaceuticals

DIVDIVAnalgesicsAnalgesics

DIVDIVDiabetical ProductsDiabetical Products

MonoMono ComboCombo

ASAS PCMPCM

HH--InsulinInsulin AA--InsulinInsulin

InsulinInsulin HH--InsulinInsulin


Division

Product Line

Product

Profit Center Hierarchy

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)

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.

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.

You can also create and evaluate alternative hierarchies.

(C) SAP AG AC665 6

5.7

SAP AG 1999

Settings

PrCtr 1PrCtr 1PrCtr 1


PrCtr 2



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

You store the most important control parameters and assignments in the settings for the controlling area. When you maintain the master data, you can create the standard hierarchy, profit centers, as well as

profit center groups. 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.

You can assign account assignment objects from Logistics and Financial Accounting to the profit center, and check the assignments.

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.

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5.8

SAP AG 1999

ProfitCenterC6111

ProfitProfitCenterCenterC6111C6111

Controlling Area

Fixed AssignmentProfit Center - Company Code

EC-CSECEC--CSCS

FIFIFI

Limited Number of Consolidation Units

Company Code

Palo Alto

Chicago

New York

Profit Center: Master Record

When you create a profit center, you can choose the company code(s) in which the profit center should be booked.

The consequence of this for postings in FI is that only permitted profit centers can be posted. In EC-CS, only the consolidation units of the profit centers and companies that transact in the company

code(s) are generated.

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5.9

SAP AG 1999

Cost Center

Cost Element

Internal Order,Project, Network

Maintenance Order

Production OrderProduction Order

Profitability Segment

MaterialMaterial

AssetAsset

Sales OrderSales Order

ProfitCenterProfitProfitCenterCenter

Profit Center Assignment

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.

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.

With the help of the assignment monitor for the selected assignment objects, incorrect assignments can be detected and corrected.

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.

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.

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5.10

SAP AG 1999

Cost center

Order

C100C4311MC100C4311M

Trade Law

. . .

Costing

Asset

1

Business Area

4000

Time-dependent Data

Depreciation Areas

Cost Center C100C4311M


Cost CenterCost Center C100C4311MC100C4311M

•• Company Code C100Company Code C100•• Business AreaBusiness Area 4000 4000 •• Profit CenterProfit Center C4311C4311

Order ##########


OrderOrder ####################

•• Company Code C100Company Code C100•• Business AreaBusiness Area 4000 4000 •• Profit CenterProfit Center C4311C4311

FI-AA

C4311

C4311

PostDepreciation

Acquisition andProduction costs

Transfer data online/periodically

EC-PCA

Profit Center Origin: Asset Master Record

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.

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.

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.

Periodic depreciation is posted to cost center or internal order, and the profit center is derived on the basis of this and assigned values.

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5.11

SAP AG 1999

Reconciliation LedgerCompany 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

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.

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.

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 CenterVersion 100 Actual DataYear YYYYPeriod 012

Cons C/A 01 US ChartLedger US USD

EC-CSEC-CS

ConsGroups FS Items Data Monitor ConsMonitor Infosystem Parameters

Global Session Parameters

If you wish to prepare profit center consolidation, you first have to create the appropriate dimension. 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

......

SBUSBUPharmaceuticalsPharmaceuticals

DIVDIVInsulinInsulin

HH--InsulinInsulin ... ...

InsulinInsulin HH--InsulinInsulin

Insulin-Palo Alto

Insulin-New York

DIVDIVPainkillersPainkillers

SEG ASEG APharma & ChemicalsPharma & Chemicals

......

MonoMono ComboCombo

ASAS PCMPCM

AS-Palo Alto

ConsolidationGroups

ConsolidationUnits

...

Profit Center Consolidation: Hierarchy

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.

The consolidation units are generated on the basis of the combination of companies and profit centers. 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.

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.

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 PharmaDIV 62 Insulin

SubsidiaryC200 New York

Consolidation ParentC100 Palo Alto

Insulin Products for Distribution



BU 6000 PharmaDIV 61 Painkillers

DIV 62 Insulin

Subsidiary C300 Chicago

BU 8000 ServicesDIV 81 Pharma Market Research

BU 4000 ChemicalsDIV 43 Medical Substances

DIV 41 Packaging Material

Partner Relationships: EC-PCA

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.

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.

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.

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.

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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

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.

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.

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 C10000 Profit Center C6111Company C30000 Profit Center C4311

LO Partner Assignment: One-Client System

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.

The reading function is activated for each trading partner in EC-PCA Customizing. 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.

In business area consolidation, the corresponding trading partner area is also determined according using this procedure.

An example of reading the partner profit center is given in the appendix (stock transport order).

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5.18

SAP AG 1999

Consolidated GroupConsolidated Group

SEG Pharma & ChemicalsSEG Pharma & Chemicals

SGE PharmaSGE Pharma SGE ChemicalsSGE Chemicals

DIV DiabeticDIV Diabetic

Product Line MonoProduct Line Mono

SEG ServicesSEG Services

DIV AnalgesicsDIV Analgesics BIL BU PharmaBIL BU Pharma

Balance Sheet Profit Center

Pharma

Profit CenterProfit CenterASAS

BIL DIV AnalgesicsBIL DIV Analgesics

Balance Sheet Profit CenterAnalgetics

Profit CenterProfit CenterPCMPCM

Balance Sheet Profit Centers

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.

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.

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.

On the division level, you can use the balance sheet profit center to evaluate key figures, such as RONA (Return on Net Assets).

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"

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. TransactionProfit Center

AdditionalBalance sheet PC

Bank/Cash on handReceivablesInventory

NoXX

NoXX

InvestmentsFixed assets

NoX

XX

XNoNoNo

PayablesLong-term payablesTaxEquity

XXNoX

Profit Center: Additional Balance Sheet Accounts

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.

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.

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.

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.

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


Describe the tasks in Profit Center Accounting

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:

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

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


Prepare data transfer for management consolidation

Check the transferred data in the receiver system

Data Transfer Methods: EC-PCAUnit Objectives

(C) SAP AG AC665 2

6.3

SAP AG 1999

EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System


PCA Data



(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-PCABusiness Scenario

(C) SAP AG AC665 4

6.5

SAP AG 1999

EC-CSEC-CS

Parameters:

Dimension: Profit Center Consolidation ...

Top Node

Dimension:Profit Center ConsolidationH1H1

ChemicalsPharma

Hierarchy: Profit Center

Pharma & Chemicals

+

TransferOrganizational Units

Conversion to Consolidation Units


Company Cons

Business Area Cons

Profit Center Cons

Analgesics Div.

Mono

ASPCM

PCM-Palo Alto

03

Assigning Consolidation Types to Dimensions

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.

The chosen consolidation type determines which organizational elements are proposed.If you wish, you can limit the selection of organizational elements.

You can define a data transfer method for every dimension. 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.

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

FIFIEC-CSEC-CS

Consolidation UnitProfit Center/Company

Company Code Company Code C100C100

Profit CenterC6112

Transaction System

Receiver SystemSpecify Data Transfer Method: Rollup


Consolidation Chart of Accounts##

Version ###

ID combination !!! Company

C10000

C6112-C10000

Converting Organizational Units

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.

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.

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.

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

C6111C6112

ASPCM

Consolidation Unit

Consolidation Group

Profit Center

CSOrg. Unit

GroupingCategory

FS item Org.Unit

Prefix Length

1

2

0

1

1

-

10

Company

1

6

53 18

2

11

Rules for ID Combination

C10000C20000C30000

IDES Palo AltoIDES New YorkIDES Chicago

C6111C6112

ASPCM

1

4

4

1

6

Organizational Units: Rules for ID Combination

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.

CS organizational unit1 Consolidation unit, 2 Consolidation group

Grouping category0 No grouping1 Grouping according to company3 Grouping according to profit center

FS itemThe "ID" of the consolidation unit (here, the profit center) is in the first or second place.

Organizational unit1 Company3 Controlling area4 Profit center5 Profit center/Profit center groupThe prefix '-' connects the "ID" with the organizational unit.

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


03

Data CollectionData Collection

Same SAP System

Upload

Hierarchy StructureHierarchy Structure

Profit Center

Companies

Transfer Transfer Profit CenterProfit CenterHierarchyHierarchy

C6111-C10000

Group acc. toCompanies

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

DummyC-SEG-A

Transferring/Editing Hierarchies

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.

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.

You first have to manually create each hierarchy node, as well as the overall consolidation group. 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

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Transferring FS Items:Assign charts of accounts to the consolidationcharts 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

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.

If you wish to bundle cost elements, 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.It is not necessary to create either the chart of accounts or the account group in advance. The system creates these automatically.

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.

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.

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Group: Fiscal Year Variant:EC-CSEC-CS


EC-CS

FI-LC

RF-KONS

Consolidation SystemConsolidation System Company Cons

Business Area Cons

Profit Center Cons

Transfer Data: Defining Data Streams

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.

For each relevant data stream and dimension, the system determines the consolidation type, and uses this to define the rules for ID combination.

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ECMCT

EC-CSEC-CS

CU: Consolidation Unit (Profit Center / Company)GC: Value in Group Currency

Ledger 8ALedger 8ALedger 8A

GLFUNCTGLFUNCTGLFUNCT

FIFIFI

GLPCT

EC-PCAECEC--PCAPCA

Standard Rollup

LEDGER USCharacteristics Key Fig.

CU FS Item GC ...#### ###### ##

You can use rollups to display the information contained in one or more source ledger(s) in a summarized form.

The rollup contains a definition which is used to specify how the data is totaled in a target ledger. At present, 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 - receiver table ECMCT) Rollup 0C_CS2CS (sender and receiver table ECMCT)

This rollup is only required for data transfer between different R/3 Systems. To transfer data to consolidation, call up the standard rollup from the data monitor screen.

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ECMCT

Ledger 8A

EC-PCAEC-PCA

EC-CSEC-CS

Specify Sender Table and Receiver Table!

CU FS Item GCxxxxx xxxx 1000xxxxx xxxx 4500... ...

Ledger US

CU: Consolidation Unit (Profit Center Company)GC: Value in Group Currency

GLPCT

Rollup Header

The rollup consists of a rollup header and one or more rollup sequence(s). 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.

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Ledger US

PrCtr Co. FS Item GCxxxxx xxxx 1000xxxxx xxxx 4500... ...

Identify valid data stream for rollup

Reset Values to

0

Reset Values to

0

Reset Values to

0

Reset Set

Ledger RLDNR

Version RVERS

Dimension RDIMEN

Cons Chart RITCLG

Consolidation UnitRBUNIT Receiver Table

ECMCT...

Posting Level IIRPLEVL

Rollup Header: Reset Set

OP

T.

RE

Q.

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.

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.

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).

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.

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Rollup Set

Ledger RLDNR

Record Type RRCTY

Version RVERS

Comp. Code RBUKRS

Profit Center RPRCTR

...

Exit

SC1SC1

Information:Data Streams,Rules for ID CombinationFS Items...

Defines maximum volume of data to be selected

Defines maximum Defines maximum volume of data to be volume of data to be selectedselected

ROLL

ROLLUPUP

+

Sender TableGLPCT

Ledger Rec. Type Version CCd ...8A

. ... ....

. ... ....

. ... .... .

OP

T.

RE

Q.

Rollup Header: Defining The Rollup Set

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.

For performance reasons, you also have to specify at least the characteristics ledger, record type, version, and company code.

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.

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ECMCT

GLPCT

Ledger US

Sender Field

Cost Element

ReceiverReceiver FieldsFields::Cons UnitCons UnitPartnerPartner UnitUnitDimensionDimensionConsCons ChartChart of Accts of Accts FSFS ItemItem

"Convert!!!"

Sequence1

Rollup Sequence XXX

Sender: GLPCTReceiver: ECMCT

Sequence Set: 1Field movement CS01Ledger: US

Rollup Sequence

R O L L U P

R O L L U P

Ledger Rec. Type Version CCd...8A

. ... ....

. ... ....

. ... .... .

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.

If you wish to transfer the data to exactly one consolidation ledger, you also have to define only one rollup sequence.

When defining the rollup sequence, specify the field movement and the receiver ledger. The field movement specifies how each receiver field is filled.

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SAP AG 1999

ECMCTECMCTECMCT

GLPCTGLPCTGLPCT

IF "Account/Cost element" field,THEN execute EXIT SC7(*)

(*) Standard Exit SC7:

IF "Account/Cost element" field filled,THEN convert to "FS item".

Transfer FieldTransfer Field

Read DataRead Data

EC-CSEC-CS

Standard Exit

SC7SC7

Standard Exits

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.

Each selected data record goes through these conversions for the rollup. 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.

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Receiver Field Sender Field Standard ExitStandard ExitStandard Exit

RBUNITRBUPTRRDIMENRITCLGRITEMROBUKRSRRCTYRVERSSITYPSUBIT

Consolidation unitPartner unitDimensionCons chart of acctsFS itemOriginal company codeRecord typeVersionSubitem categorySubitem

RBUKRS Company code

SC6SC8SC3SC4SC7

SC2SC5SC8SC8

SC1

SC6SC6SC8SC8SC3SC3SC4SC4SC7SC7

SC2SC2SC5SC5SC8SC8SC8SC8

SC1SC1

Example: Field Movement

User exit before writing

Field Transfer and Standard Exits

Field movement is carried out using client-independent standard exits: The exits are processed in alphabetical order. 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.

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SAP AG 1999

AC Docs

ECMCTEC-CSLedger

GLPCTProfit Center

Ledger

a) Central scenario+

c) decentr. scenario with ALE

ECMCTEC-CSLedger

Standard RollupGLPCT ECMCT

b) decentr.Scenariow/o ALE

Export RollupECMCT ECMCT

Standard RollupECMCT ECMCT

c) decentr.Scenariowith ALE

Rollup in Different Systems

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.

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)

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.

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SAP AG 1999


Prepare data transfer for management consolidation

Check the transferred data in the receiver system

Data Transfer Methods: EC-PCAUnit Summary

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6.20 Exercises

Unit: Data Transfer Methods:EC-PCA

Topic: Preparing EC-CS Data


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 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


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!

_____________________________________________________________

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2-3 Additional Exercise: Executing the task Data EntryIn 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.

_____________________________________________________________

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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 EntryIn the data monitor (EC-CS application menu), execute the rollup PC_CS_## for period 012 and the current year.

SAP Menu Accounting Enterprise Controlling ConsolidationChoose 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: 012Year: 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 ConsolidationChoose 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.

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7

SAP AG 1999

Contents

Key Figure Reporting: EC-CS

Financial/Management Accounting: Reconciliation

Key Figures in EC-EIS

Key Figures

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7.2

SAP AG 1999


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

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7.3

SAP AG 1999

EC-CS Consolidation

Dimension FI Data

BPBusiness Planning

EISExecutive

Information System




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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

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SAP AG 1999

FI & COFI & COFI & CO

Balance SheetsBalance SheetsIncome StatementIncome StatementTotal Cash Flow Total Cash Flow ROCE Return on Capital Employed ROCE Return on Capital Employed ROA Return on Operating AssetsROA Return on Operating AssetsReconciliation FI:Reconciliation FI: PCAPCA

Organizational Units:Consolidation Group,Company,Strategic Business Unit,Division,Profit Center,Consolidation UnitCompany/Profit Center

EC-PCAECEC--PCAPCA

EC-CS

EC-EISBP

ECEC--EISEISBPBP

EC-CS Reporting

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.

Examples of performance key figures:ROCE (Return On Capital Employed): Return on assetsROCE = NOPAT / Capital employed: Return on capital employed = annual net income before interest on borrowings, after tax / total equity

ROA = NOPAT / Operating Assets: Annual net income before interest on borrowings, after tax / operational transferred and current assets, and payables

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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

In addition to the standard FI reports, you can create further reports in the R/3 System, and insert them into the report tree.

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

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.

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.

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7.7

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Cash Flow Report

Strategic Business Unit PHARMA

Fiscal Year 1999

The cell calculation is based on rows, columns, cells and +/- signs.

GE 6000 19981999 Delta

Hidden Columns

Change in Net Liquidity 130546

Annual Net Income 588915 588915Depreciation 456750 456750Appropriations 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 436665456750

1439500-

Technique for Cash Flow Reports

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.

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.

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Group

Chemicals ...

Group


Division

Product Line

Product

CF Total Cash FlowROCE Return on Capital EmployedEBITDA 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

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.

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Performance Key Figures at the LevelsConsolidated Group, Segment, Strategic Business Unit:

NOPATTotal Equity

ROCE =

NOPAT = Net Operating Profit After Tax

Total Equity = Stockholders' Equity + Outside Capital

Total Cash Flow

Return On Capital Employed

EBITDAEarnings Before Interest,Tax, Depreciation and Amortization

Performance Key Figures I

ROCE (Return on Capital Employed) = annual net income before interest on borrowings, after tax / total equityYou 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

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Performance Key Figures at the LevelsDivision to Profit Center

Ordinary Operating ProfitOperational 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

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.

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Cons Chart of AccountsCons Chart of AccountsCons Chart of Accounts

Balance SheetsBalance SheetsBalance Sheets

Income StatementIncome StatementIncome Statement

Statistical ValuesStatistical ValuesStatistical Values

Key FiguresEBITDA

Hints on Key Figures:

Rule: unique hierarchy with totals items

Use of further FS item hierarchiesfor alternative totalings

Example:Totals item EBITDA

Sales RevenueCosts of Goods Sold

Operational CostsExcluding Depreciation

Key Figures in the Consolidated Chart of Accounts

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 expensesdo 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).

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SAP AG 1999

Execute Compare FI & PCA Dimension data (B/S):Execute Compare FI & PCA Dimension data (B/S): Detail ListDetail 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-CashFixed Assets

Short-term Liab.

Non-TaxLong-Term Liab.

EquityEQ w/o Net IncomeNet Income CY

PCA Dim Op. PrCtr

5.272.257

5.272.2579.632.726

6.782.470-

6.376.470-4.062.350-

4.416.917-569.850-

0

5.272.258

5.272.2589.632.726

6.376.470-

6.376.470-4.062.350-

4.416.917-569.850-

0

4.816.313

4.816.3132.576.283

2.177.650-

2.177.650-0

1.764.849-00

455.945

455.9457.056.443

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

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.

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7.13

SAP AG 1999

Execute Execute DIM 03 DIM 03 Return on operating Assets Return on operating Assets ROA: DetailROA: 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

561.4644.800

5.200.0005.496.865

303.15027.265

6.781.6001.068.401

2.000

1.200.000

1.000

3.561.3352.000

4.000.000

3.000Operating Profit

Fixed assets

A/RA/P

Inventory 1.311.814585.000

2.094.163986.300

1.183.6501.838.594

833.851

4.961.9111.050.610

3.340.077296.314135.000

273.151

228.000

1.013.000450.000

910.499

755.000

Return on Operating Assets

954.320128.599433.665

Operating Assets 476.4641.618.499

27 1927 27

Key Figure ROA - Report in EC-CS

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

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).

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 CapitalWACC

Weighted Average Cost of Capital

Cost of Equity II Cost of Debt II

Cost of Equity I Equity / Capital Ratio

Company Risk Premium

Interest raterisk free investment

Market Risk Premium Beta factor

Cost of Debt I Debt / Capital Ratio

Interest rate 1 - Tax rate

x

+

x

+

x

x

AverageMarket Return

–

EVA®: Influencing Factors

The calculation of EVA is made up of several components:NOPAT (Net Operating Profit After Tax), a profit-based key figureCAPITAL: total assets - current assetsWACC (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.)

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.

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"

PC-C

ontro

lling

FI CO Non-SAP

Tran

sact

ion

Appl

icat

ions Transaction

Systems

EC-EIS

Management Reporting(Key Performance IndicatorsMonetary and Non-Monetary)

Financial ConsolidationInternal and External

(Balance Sheets)internalexternal

IB a

nd G

roup

Cont

rolli

ng

Gro

up A

ccou

ntin

g

Internal Non-MonetaryPerformance Indicators

External PerformanceIndicators (for example,

Market Shares, CustomerSatisfaction, and so on) EC-CS

Validation

Task Distribution: Controlling / Group Accounting

The results are determined automatically in the operational units. 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.

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.

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 FormularEconomic Profit using Capital Charge Formular

Economic Economic ProfitProfit854.585 US$




NOPAT - WACC * Capital

NavigationNavigation

YearYear

Consolidation GroupConsolidation Group

Consolidation LevelConsolidation Level

Fiscal Year Fiscal Year ´99´99

PharmaPharma

Level Level 2 2 Pharma Pharma (Auto)(Auto)

StartStart

Exit Exit SystemSystem

EVA® with SAP EC-EIS and inSight

Data collection reports can be used to transfer data from EC-CS and EC-PCA to the EIS database. 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.

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 FormularCharge FormularNavigationNavigation

YearYear

Consolidation GroupConsolidation Group

Consolidation LevelConsolidation Level

Fiscal Year Fiscal Year ´99´99

PharmaPharma

Level Level 2 2 Pharma Pharma (Auto)(Auto)

TreeTree_1_A_1_A

BackBack

WACWAC9,1 %

WACC Dept + WACC Equity

WACC WACC DebtDebt854.585 US$

WAC WAC EquityEquity8,6 %

GearingGearing15,0 %

Tax Tax raterate50,0 %

Share priceShare price85 US$

AvAv. . Market returnMarket return10,6 %

Cost of DebtCost of Debt3,3 %

Mark. Mark. capitalisationcapitalisation8.500.000 US$

DebtDebt219.351 US$

Number of sharesNumber of shares100.000

Interest Interest rate rate loansloans6,6 %

Company Risk Company Risk PremiumPremium

4,0 %

Risk free Risk free InvestmentInvestment6,1 %

Beta factorBeta factor0,89

Cost of EquityCost of Equity10,0 %

Market Risk Market Risk PremiumPremium

4,5 %

EVA®: Weighted Average Cost of Capital

(C) SAP AG AC665 18

7.19

SAP AG 1999


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


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.

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



Example: LO Integration with FI and EC-PCA

The customer creates the purchase order with company code C100 and profit center C6111. The posting year is 1999. The supplier creates the delivery with company code C300 and profit center C4311. 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. 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 material 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

SenderSender Partner UnitPartner Unit

BUKRSBUKRS C100 Palo AltoC100 Palo Alto

GSBERGSBER 6000 Pharma6000 Pharma

PRCTRPRCTR C6111 ASPARAX ProductionC6111 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 of the SD worklist (generated by the purchase order).

Sender Partner Unit

BUKRS C300 Chicago

GSBER 4000 Chemicals

PRCTR C4311 Acetyl Substance


BUKRSBUKRS C300 ChicagoC300 Chicago

GSBERGSBER 4000 Chemicals4000 Chemicals

PRCTRPRCTR C4311 Acetyl SubstanceC4311 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 SalesCredit 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


BUKRSBUKRS C300 ChicagoC300 Chicago C10000C10000 Company Palo AltoCompany Palo Alto

GSBERGSBER 4000 Chemicals4000 Chemicals 60006000 PharmaPharma

PRCTRPRCTR C4311 Acetyl SubstanceC4311 Acetyl Substance C6111C6111 ASPARAXASPARAX

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




BUKRSBUKRS C100 Palo AltoC100 Palo Alto C30000C30000 ChicagoChicago



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 (in non-distributed scenarios).

Sender Partner Unit

BUKRS C300 Chicago C10000 Palo Alto




BUKRSBUKRS C300 ChicagoC300 Chicago C10000C10000 Palo AltoPalo Alto



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 affliliated company's supplier (posting year 1999).

FI DocumentDebit 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



SenderSender Trading PartnerTrading Partner

BUKRSBUKRS C100 Palo AltoC100 Palo Alto C30000C30000 ChicagoChicago



MR03 Doc 5.100.000.000

Incoming Invoice

(C) SAP AG AC665 9

8.10Cons 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

(C) SAP AG AC665 11

195500 Accumulated Depreciation - Mach. & Equipment 1 - A

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

(C) SAP AG AC665 12

235100 Notes Payable - Long Term Portion 1 - B

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

(C) SAP AG AC665 13

250100 Common Stock

1 - B

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

(C) SAP AG AC665 14

304000 Sales Discounts and Returns - Foreign 2 - C

305000 Total Expenses 2 + C

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

(C) SAP AG AC665 15

313100 Professional Fees 1 + C

319999 OPEX w/o Depreciation &Amortization 2 + C

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

(C) SAP AG AC665 16

380000 Net Income 2 - C

390000 Annual net income 1 + C

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

(C) SAP AG AC665 17

950950 Stat: Cur.Transl.Diff. - Rounding 1 - D

951000 Stat: Retained earnings 2 - D

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