BB ECCS GMM Workshop Result

8/2/2019 BB ECCS GMM Workshop Result

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REQUIREMENTS

Business Unit Reporting

Overhead cost allocation over business unit

Currently overhead cost is posted to overhead cost center act as cost centerpool, assigned under overhead profit center. In order to obtain the

managerial report per business unit it is required to perform the overhead

cost allocation.

Profit center report which consider ex-allocation as well as ex-consolidation

During consolidation process, an additional journal entries is carried out which

will impact consolidation report. For the journal entries which involve P/L

account it is required to be included also on the managerial report per profit

center and only impact on the consolidation level.


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REQUIREMENTS

Consolidated Financial Statement

Generate consolidation report inside system

There are three companies need to be consolidated in to one group.Currently, the consolidation is carried manually outside the system.

Perform consolidation entries at the consolidation level

Consolidation entries such as adjustment, elimination and reclassification

need to be carried out at consolidation level only, no impact on company

level.

Any adjustment on consolidation level should be reflected on profit center

as well

Any posting at consolidation level that involve Profit/Loss account should be

recorded also at profit center in order to generate consolidation report per

Business Unit.

Carry forward Account Balance as well as Retained Earning

As the consolidation process is completely done, the balance of the account

including retained earning need to be carry forward to the following year as

the beginning balance of consolidation


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THE HIGH LEVEL SOLUTION

Company

Consolidation

Profit Center

Consolidation

Cons Unit 1

Cons Unit 2

Cons Unit A

Cons Unit B

Cons Unit C

Cons Unit 3

Cost Center

Allocation

ABAP #1

Profit Center

Posting

ABAP #2

Input Profit Center

in transaction

Adjustment

Elimination

Reclassification

Controlling Process

Periodic

Rollup

Consolidation Process

The ABAP program #1 is used to retrieve sales data and post the data to SKF (Statistical

Key Figure), this SKF data is used in cost center allocation

The ABAP program #2 is used to retrieve consolidation adjustment with profit centerassignment and post the data to profit center posting

Profit

Center 1

Profit

Center 2

Profit

Center 3

Cons Unit A

Cons Unit B

Cons Unit C

Real time

Update

Accounting / Logistic

Process


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CONTROLING Overhead Cost Allocation : Overview

Overhead

Cost Center

Cost Center

Business Unit

Cost Center

Business Unit

Cost Center

Business Unit

Overhead

Cost Center

Overhead

Profit Center

Business Unit

Profit Center

The overhead cost allocation is performed trough cost center as the

cost object and automatically recorded at the profit center

The allocation is performed trough secondary cost element in order to

keep the original transaction

The allocation process must be performed each period

FI Posting

MM Posting

. . . .

Sender Receiver


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CONTROLING Overhead Cost Allocation : Allocation Cycle

Allocation Cycle Rule:

There are rules regarding the overhead allocation process

1. Cost to be allocated

The cost to be allocated is the total cost incurred in all overhead cost center

2. Allocation base

The tracing factor is SKF (Statistical Key Figure) to store the Sales Revenue of

the BU profit center as the allocation base. The ABAP program is needed to

retrieve and posted this sales data automatically to SKF, otherwise we have toinput manually using SAP standard transaction.

3. Sender

The sender is the overhead cost center

4. Receiver

The receiver is BU cost center that assigned to BU profit center5. Allocation Structure

The allocation structure is represent how the allocated cost be structured. It

will use secondary cost element


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CONTROLING Overhead Cost Allocation : Allocation Cycle

Allocation Cycle Rule (continued):

6. Allocation Cycle Name

The allocation cycle is company code dependent, the name will follow thecompany code. MBINA will use allocation cycle name GMMXX.

7. Segment Name

The segment represent sequence process in one cycle as part as the whole

cycle. MBINA will breakdown the process of each sender group as a segment.

MBINA will use segment name GMMXX-XXX


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CONTROLING Overhead Cost Allocation : Allocation Process


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CONSOLIDATION Consolidation process


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Description of the tasks legal consolidation:

The consolidation process takes place after the FI (Accounting) in each subsidiary

completely finish the closing process.1. The first task of the consolidation is balance carry forward

This process will ensure that all consolidated account balance from previous

year is carried forward to the following year.

2. Data collection

For legal consolidation, the data collection is in real time mode, the dataautomatically passed to consolidation during transaction in each origin

module.

3. Data validation

Perform data validation to ensure that all reported data from all consolidation

unit (company) is transferred completely. We can set predefine validation by

system, for example : Total Asset = Total Liability.

4. Standardizing financial data

In this step, we create an adjustment / reclassification at the consolidation unit

to ensure the data is correct prior to elimination process.


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Description of the tasksLegal consolidation (continued):

5. Standardizing financial data validation

To keep the adjustment entered correctly, we have to perform validation, apredefined validation is set to perform validation by system

6. Inter unit elimination

This step is to eliminate inter unit transactions as the main part to produce

consolidated financial statement

7. ReclassificationAt group level, we can perform reclassification /adjustment to move value

from one FS item to another FS item

8. Consolidated financial data validation

Similar with the two previous validations, this validation also check the

validation transaction data at all level9. Consolidation reporting

The final step of the legal consolidation is to generate financial reporting

which will developed using drill down reporting


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Description of the tasks profit center consolidation:

The profit center consolidation process takes place after the legal consolidation

and controlling process.1. Periodic roll up (Monthly)

This step is to execute periodic roll up to collect data from profit center table

(CO) to consolidation table (ECCS).

Legal consolidation process

Any adjustment created during consolidation process must be assigned to theproper profit center. This data will be used on profit center posting

2. Profit center posting

In this step, ABAP program is needed in order to retrieve the adjustment data

and post to profit center at the Controlling (CO) level.

3. Periodic roll up (Year end)This step is similar to the first step, the different is it executed after legal

consolidation taken place.

4. Data collection

This step is to monitor whether all the profit center data is completely

transferred to consolidation.


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Description of the tasks profit center consolidation (continued):

5. Data validation

Perform data validation to ensure that all reported data from all consolidationunit (profit center) is transferred completely.

6. Consolidation reporting

Similar to legal consolidation, drill down reporting will be use to generate the

consolidation report.


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CONSOLIDATION Global Parameter Legal

Cons groups FS items Data monitor Cons monitor Info system Parameters

Global parameters

Dimension M1 MBINA Legal Dimension

Cons group MBINA1 MBINA Legal Consolidation

Cons unit __

Version 100 Actual dataYear 2009

Period 12

Cons C/A MBIN MBINA Consolidation CoA

Ledger MB MBINA Consolidation Leger

Parameters

Global Parameters represents the works area, year 2009 period 12 means that

user is working on the specified period.


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CONSOLIDATION Global Parameter Profit Center

Cons groups FS items Data monitor Cons monitor Info system Parameters

Global parameters

Dimension M2 MBINA Profit Ctr Dimension

Cons group MBINA2 MBINA Profit Ctr Cons

Cons unit __

Version 100 Actual dataYear 2009

Period 12

Cons C/A MBIN MBINA Consolidation CoA

Ledger MB MBINA Consolidation Leger

Parameters

Global Parameters represents the works area, year 2009 period 12 means that

user is working on the specified period.


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CONSOLIDATION Master Data : Global Setting

Dimension represents the type of consolidation

There are two dimension used : M1 (MBINA Legal Dimension) and M2(MBINA Profit Center Dimension)

Group represents the organizational structure in which the

company/unit need to be consolidated

MBINA use legal consolidation group: MBINA1 (MBINA Legal

Consolidation) and profit center consolidation group: MBIA2 (MBINAProfit Center Consolidation)

Consolidation Chart of Account is required as the point of view of the

consolidated Financial statement. Both Legal and Profit Center

Consolidation will use MBIN (MBINA Consolidation COA)

Ledger represents a set of database in certain currency that will be used

in Consolidation Group

MBINA use single ledger in USD for both type of consolidations


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CONSOLIDATION Master Data : Hierarchy

Dimension Cons chart of accts Version Period /

Hierarchy

MBINA Legal Consolidation group

Cons Unit B

M1

M1

MBINA1

Cons unit A

M1

The entire consolidation structure per consolidation type (dimension) is

represented as hierarchy structure

Dimention


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CONSOLIDATION Master Data : Organization Structure

MBINA1

GMM SEN SMI

MBINA2

W-169 C-169 A-CLASS

1 2

914X-T245

Consolidation

Group

Consolidation

Unit

Legal Consolidation

Profit Center Consolidation


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CONSOLIDATION Master Data : Trading Partner

Company Name Consolidation

Unit (ECCS)

Company

Code

Trading

Partner1. .. GMM GMM GMM

2. .. SEN SEN SEN

3. .. SMI SMI SMI

Trading Partner is SAP terms representing the unit where it becomes the key for

eliminating inter company transaction. These trading partner is specified in the

trading partner set.

The trading partner code is made the same with company code (FI) andconsolidation unit (ECCS)

The trading partner is specified in the vendor and customer master record


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CONSOLIDATION Master Data : Financial Statement Item

10XXX Cash on Hand

11XXX Bank

12XXX Time Deposit

20XXX Equipment

60XXX Expense

10XX Cash and Cash Equivalent

20XX Equipment

60XX Expense

Consolidation Chart of AccountTransactions Chart of Account

FI EC-CS

No one to many account mapping is allowed

Cost Element need to be mapped as well to Consolidation COA for the profit

center consolidation purpose

The detailed FS item and corresponding assignment to G/L account and cost

element will be collected from the user

Transactions Cost Element

CO

60XXX Expense

90XXX Expense Other


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CONSOLIDATION Task Status Monitor : Overview

MBINA2 Legal Cons Group

M1 Legal Consolidation

-M1 Legal Consolidation

+

+GMM

SEN

SMI

Balance

Carry Forward

Data

CollectionValidation

Standardizing

EntriesHierarchy

Tasks

+

+

The consolidation process is executed using consolidation task monitor in order

to have comprehensive consolidation process.


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CONSOLIDATION Data Collection : Methods

Flexible FileUpload

Data

entrylayouts

DB

MS Access

Non-SAP

EC-CSOn Line

Off line

Real Time Update-Single

document


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CONSOLIDATION Data Collection Item Substitution

For the Legal Consolidation : Item Substitution is a function where the system move the

net profit in the income statement to the current year earning in balance sheet.

AssetsCash and Cash Equivalent xxxFixed Asset xxx

Acc.depreciation (xxx).....

LiabilityA/P 3rd Party xxxBank Loans xxx..Share Holders EquityCommon Stock xxxAdditional Paid in Capital xxxPrior year Retained Earning xxx

Current Retained Earning YYY

COGS xxxExpense xxxDepreciation Expense xxx.

Revenue xxxOther Income xxx

Balance Sheet Profit/Loss

Net Income YYYTotal Assets xxx Total Liability xxx


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CONSOLIDATION Standardizing Financial Data (SFD)

Standardizing Financial Data is basically a manual posting function where the

end users post document in order to align the accounting standard according to

the group policy.

Since the function is manual entry, the function may also be used for any other

adjustment posting.

Documents resulted from Standardizing Financial Data are identified usingDocument Type and Posting Level.

The detailed transaction of the SFD will be collected from the user


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CONSOLIDATION SFD : Document Type and Posting Level

DocumentsECMCTTotals

records

ECMCA

Totals reports Document

analysis

Document types Number ranges

Tasks

Posting

Posting level is for identifying the data as per standard SAP.

Document type is for identifying more specific document using the

same posting level i.e. the user needs to identify documents resulted

from elimination of Account Payable and Receivable


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CONSOLIDATION SFD : Document Type and Posting Level

Process / Task Posting Level Document

Type

Number Range

1. Data Collection Blank or 00 Blank N/A

2. Item Substitution 01 DC 100000 109999

3. Validation of RFD N/A N/A N/A

4. Standardizing Financial Data 10 ST 200000 209999

5. Validation of RFD N/A N/A N/A

6. Inter unit elimination (auto) 20 IA - IE 300000 309999

7. Inter unit elimination (manual) 20 IM - IQ 310000 319999

8. Reclassification 20 or 30 RC 400000 409999

9. Validation of Consolidated

Financial DataN/A N/A N/A

10. Balance Carry Forward N/A N/A N/A


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CONSOLIDATION Inter Unit Elimination : Method

Interunit Elimination Method

FS Item Sets

Pair of sets

Set 1 Set 2

Items for other differences

Debit Credit

Inter unit elimination works based on pair of Financial Statement Item

containing the trading partner

Differences arise from elimination is posted to items for other difference

Elimination journal entries will be posted using posting level 20.

One sided elimination for the sales/cogs elimination entry

Further control options

Difference strategy

Splitting of elimination

differences

Two-sided elimination

One-sided elimination

Post to initiating cons

unit

l


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CONSOLIDATION Inter Unit Elimination : Process

Consolidated data before inter unit elimination

PL Value CU TP

Investment in Subsidiaries 00 5.000.000.000 SEN GMM

A/P Subsidiaries SEN 00 (5.000.000.000) SEN GMM

A/R Subsidiaries GMM 00 5.000.000.000 GMM SEN

Common Stock 00 (4.000.000.000) GMM SEN

Paid in Capital 00 (1.000.000.000) GMM SEN

Consolidated data after inter unit elimination

PL Value CU TP

Investment in Subsidiaries 00 5.000.000.000 SEN GMMCommon Stock 00 (4.000.000.000) GMM SEN

Paid in Capital 00 (1.000.000.000) GMM SEN

i li i i l


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CONSOLIDATION Inter Unit Elimination : Rule

Process / Task FS Item

Pair of Set

Post

Difference

to

Document

Type

Posting

Level

1. Acc. Payable / Acc. Receivable 1XXXXXX

2XXXXXX

1XXXXXX IA 20

2. Rental Expense / Income 6XXXXXX

7XXXXXX

1XXXXXX IB 20

3. Management Fee / Expense 6XXXXXX7XXXXXX

1XXXXXX IC 20

4. Sales / COGS 4XXXXXX

5XXXXXX

N/A ID 20

The detailed of the inter unit elimination FS Item (account) will be

collected from the user

CONSOLIDATION R l ifi i


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CONSOLIDATION Reclassification

Reclassification function move the value of certain FSI (Financial

Statement Item) into another FSI. This only applicable if the reported

financial data is consistent across the group

The reclassification functions may mean netting off between 2 reported

items.

Common netting off of reclassification:

Netting of Prepaid VAT and VAT Payable

Netting of Interest expense and Interest income

The document type and posting level setting of this function pleaserefer to the document type section

The detailed reclassification transactions will be collected from the user

CONSOLIDATION V lid i


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CONSOLIDATION Validation

Process / Task Posting Level

1. Data Collection Blank or 00

2. Item Substitution 01

3. Validation of RFD N/A

4. Standardizing Financial Data 10

5. Validation of RFD N/A

6. Inter unit elimination (auto) 20

7. Inter unit elimination (manual) 20

8. Reclassification 20 or 30

9. Validation of Consolidated

Financial Data

N/A

10. Balance Carry Forward N/A

At this posting level



CONSOLIDATION V lid ti


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CONSOLIDATION Validation

Validation of RFD: this validation function is used to validate the Reported

Financial Data based on the predefined rules.

1. Check if Assets Equal to Liabilities + Stock holder equity

2. Check if Current Year Retained Earning is equal to current net Profit

Validation of SFD: this validation function is used to validate the Standardized

Financial Data based on the predefined rules.

1. Check if Debit = Credit

The validation of Consolidated Financial Data: this is similar to validation of

Reported Financial Data and standardized financial data, only technically include

all posting level.

CONSOLIDATION B l C F d


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CONSOLIDATION Balance Carry Forward

Balance sheet

Assets 10,000

...

Liabilities 10,000

Income statement

ANI 1,000

Balance sheet

Assets 10,000

...

Liabilities 10,000

Income statement

Balance carried

forward 1,000

n+1

Closing balance

Old fiscal year

Opening balance

New fiscal year

CONSOLIDATION I f ti S t


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CONSOLIDATION : Information System

R/3

Consolidation

Report PainterReport Writer Journal entryreports

Reports

master data control data

financial data

Predefined/Standard ReportsCustom Report

CONSOLIDATION Information S stem


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CONSOLIDATION : Information System

In addition to the standard consolidation report, a custom report will be

developed using report painter / writer.

Customized report will be collected from the user and after investigate to the

standard report in case the reports already provided by the standard.

Existing customized report:

1. Consolidated profit / loss by Business Unit (Profit Center)

CONSOLIDATION : Legacy Data Scenario


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CONSOLIDATION : Legacy Data Scenario

Jan Nov 09As of Dec 08

Opening balance

upload

Subsequent posting

of transaction

/Rollup

Real time (online)

/Rollup

Start from 01 Dec 09

Real time is used for company consolidation

Roll up is used for profit center consolidation

Date post:	05-Apr-2018
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