Date post: | 03-Jun-2018 |
Category: |
Documents |
Upload: | sandeep-shenoy |
View: | 232 times |
Download: | 0 times |
of 57
8/12/2019 Overview of Eccs
1/57
OVERVIEW OFENTERPRISE CONTROLLING-CONSOLIDATION SYSTEM (ECCS)
ConsolidatedFinancial
Statement
ManualInput
ExcelUpload
Realtimeupdate
ECCS
ConsolidationTask
AdditionalFinancial
Data
SAPCompanies
DataNon-SAP
CompaniesData
8/12/2019 Overview of Eccs
2/57
DEFINITION
q Inter-unit eliminations of receivables, payables, revenues,expenses etc.
q Consolidation of Investments and accounting for the
minority interestq Translations of the statements under relevant currencies.
q Reports Generation
Consolidation is the process of combining the individual financialstatement data of relevant companies in order to prepare
Consolidated Financial Statements (CFS) for the Group to show itsfinancial position as a single business entity. The consolidatedfinancial statements include the financial statements of the companyand enterprises controlled by it i.e its subsidiaries and the share inprofits of associates.
The process at high level involves performance of tasks suchas
8/12/2019 Overview of Eccs
3/57
DEFINITION
The objective of the consolidation component is to createconsolidated financial statements consisting of Balance Sheet, Profit
and Loss Statement, and Cash Flow Statement and to provide thetimely information to the management. EC-CS significantlyaccelerates the consolidation process with its automatic functions forcurrency translation, inter unit elimination and consolidation ofinvestments .The Consolidation process is performed in theConsolidation Component of SAP R/3 EC CS module.
8/12/2019 Overview of Eccs
4/57
GLOBAL PARAMETER
q Global parameters are important settings for EC-CS thattypically remain the same for a work session.
q These parameters are saved for a particular the user whenhe/she logs off, and are automatically used when he/shelogs back on. However, the parameters can be changed asand when required.
q When you run a function, the information saved as a your
global parameters are either proposed by default, or set inthe background (in which they cannot be specified directlyfor the function).
q The global parameters are displayed in a status row at thetop of every screen in Customizing and the consolidationfunctions.
q In Customizing, the parameters that are relevant for thecurrent maintenance are displayed in a different color. Forexample, maintenance of financial statement items isdependent on the consolidation chart of accounts, but noton the version.
8/12/2019 Overview of Eccs
5/57
Cons groups FS Item Data Monitor Cons Monitor Info System Parameters
AUDAUSLedger
Plan01Cons C/A
012Period
2006Year
Actual Data100Version
Legal01Dimension
Global Parameter
GLOBAL PARAMETER
8/12/2019 Overview of Eccs
6/57
q A dimension defines the specific characteristic in-group reporting. Dimensionsinclude consolidation types such as company consolidation, business areaconsolidation, or profit centre consolidation.
q Standard, Conventions & Rules
v The requirement for consolidation is to be able to consolidate from a legalview and a management view. Legal View will be based on companiesand Management View based on profit centres.
v SAP delivers a standard dimension for companies and a standarddimension for profit centres. These are:
v 01 for companies
v 03 for profit centres
q A given dimension can represent one or more consolidation types. You typicallyuse one dimension for each consolidation type. Dimensions are specific views ongroup reporting. In a dimension, you define the group structure as a hierarchyof consolidation units and groups. You can manage several dimensions inparallel in the system.
q Dimension Independent arev Organisation Unitsv Control Data such as Tasks and Methods
q Dimension Dependent Data arev Consolidated Chart of Accounts
v Consolidation Version
DIMENSION
8/12/2019 Overview of Eccs
7/57
q Hierarchies are structured sets of consolidation units andconsolidation groups. They are defined by their top-mostconsolidation group.
q Any consolidation unit or group can exist in any number ofhierarchies.
q In each dimension, you can define the hierarchy levels and arrangethese levels into the desired sequence. You can then assign thelevels to the consolidation groups of a hierarchy to clarify the
hierarchy structure.
q Each hierarchy uses a part of this hierarchy level.Each consolidation group is assigned to only one level.In the example, hierarchy 2 consists of the levels group, strategicbusiness unit, company, business area, and company/ businessarea
q You can create any number of hierarchy levels.
q The number of hierarchy levels can vary in different branches ofthe same hierarchy.
HIERARCHY
8/12/2019 Overview of Eccs
8/57
q A consolidation group is a user-defined combination of multipleconsolidation units and/or consolidation groups for consolidationand reporting purposes. It represents the structure of the group.
q Consolidation groups and consolidation units are dependent on thedimension.
q Each consolidation unit can be included in different consolidationgroups, and each consolidation group in turn can be included indifferent hierarchies.
q Since consolidation groups are dimension-dependent, the masterdata created for the consolidation groups is valid only in therelevant dimension
CONSOLIDATION GROUP
8/12/2019 Overview of Eccs
9/57
APAC
NZ
EUROPE
WORLD
PARENT
FRANCE
CONSGROUP
UKAUST
CONSGROUP
CONSUNIT
CONSOLIDATION UNITS & GROUPS
8/12/2019 Overview of Eccs
10/57
The consolidation unit is the smallest element of the group structure forwhich a complete consolidation can take place. Consolidation units arethe equivalent of company codes in FI. They are linked in theconsolidation hierarchy at the lowest node. Consolidation groups may becollections of various consolidation units.
Information stored in the master data of a consolidation unit typicallycomprises of the following:
q Name and Address
q Country
q Language
q Local Currency
q Means of data transfer
q Method of Currency Translation
CONSOLIDATION UNIT
8/12/2019 Overview of Eccs
11/57
q In order to create consolidated financial statements, the transaction data ofall the consolidation units included must be uniformly aggregated. For this
purpose, the group headquarters provides all consolidation units with one ormore consolidation charts of accounts. These charts of accounts structurethe financial statement items in accordance with the internal and externalrequirements of the consolidated financial statements. In the consolidationchart of accounts, all financial statement items are arranged logically in anitem hierarchy.
q The consolidation chart of accounts is client-dependent only. Therefore, you
can use it in different dimensions.
q To allow the integrated transfer of reported financial data from SAPtransaction applications, you must create a link between the G/L accountsand any secondary cost elements, and the consolidation financial statementitems. When real time updating or rollup is used, the ID's of the transactionaccounts are identical to the ID's of the FS items. When periodic extract isused, the financial statement version items and the consolidation items are
identical. In order to ensure that the IDs correspond, you can create theconsolidation chart of accounts from both the FI chart of accounts and thefinancial statement version.
CONSOLIDATED CHART OF ACCOUNTS
8/12/2019 Overview of Eccs
12/57
UK FRANCE
VERSION 200
LEDGERIN
EURO
ECMCT
TOTAL DATABASE
AUD NZ
VERSION 100
LEDGERIN
AUD
CONSIDATION GROUP,LEDGER,VERSION
8/12/2019 Overview of Eccs
13/57
01 Consolidated COA
ASSET
FS item
1 FS item Types
+ Debit/Credit Sign
1000 Breakdown Category
FINANCIAL STATEMENT ITEMS & ACCOUNTASSIGNMENT
DATA COLLECTION METHODS
8/12/2019 Overview of Eccs
14/57
Data collection from SAP Systems:
q Real time update from other application components within thesame SAP system
q Rollup from an FI-SL ledger
q Rollup from another EC-CS component
q Periodic extract from FI-GL
q Periodic extract from R/2 (planned)
q Data collection from non-SAP systems:
q Flexible upload of data extracts from non-SAP systems
q MS Access offline data entry using an additional MS Excel interface
DATA COLLECTION METHODS
DATA COLLECTION METHOD
8/12/2019 Overview of Eccs
15/57
ConsolidatedFinancial
Statement
Non-SAP
CompaniesData
Additional
FinancialData
ConsolidationTask
ECCS
Ma
nualIn
put
SAP
CompaniesData
Exc
elUpload
Real
timeupdate
DATA COLLECTION METHOD
FLOW OF FINANCIAL DATA IN CONSOLIDATION
8/12/2019 Overview of Eccs
16/57
q Consolidation with the EC-CS component is based on totals data. Thisdata is recorded using various data collection procedures and isstored in the totals table ECMCT.
q Additional financial data relevant for consolidation is also entered inseparate tables. This additional data is not necessarily reported byconsolidation units in their individual financial statements.
q All postings made during the consolidation process are saved asdocuments in the journal entry database ECMCA.
q The totals table ECMCT therefore includes the following: All data fromthe individual financial statements, changes or additions to thisdataset as a result of any additional financial data reportedStandardizing entries and Consolidation entries
FLOW OF FINANCIAL DATA IN CONSOLIDATION
CONSOLIDATED DATABASE
8/12/2019 Overview of Eccs
17/57
TaskLedger
cons unitversion
year, period
Acquisition YearUnit of
Measure
Doc TypeCons Group
Cons COAItem Category
Sub Item
Trans CurrencyLOCAL CurrencyGroup Currency
CONSOLIDATED DATABASE
INTER UNIT ELIMINATION OF PROFIT& LOSS
8/12/2019 Overview of Eccs
18/57
q You define tasks and methods for IU eliminations in Customizing. Youshould create a task for each of the inter unit consolidation procedures,
for example, elimination of inter unit payables and receivables orrevenue and expense. In a method, you specify which items are to bemutually eliminated and how you want to handle any resultingdifferences.
q You execute IU elimination tasks from the consolidation monitor. Thesystem generates an elimination entry in the following cases:
q A consolidation unit reports a value for an FS item requiringelimination.
q Another consolidation unit is assigned as the trading partner for thisvalue.
q You have specified that both of the above consolidation units are to be
included in IU elimination.q The system differentiates elimination entries according to tradingpartner relationships, as follows: A pair of consolidation units is alwayslooked at and within this pair a pair of FS item sets
q Elimination documents contain an entry for each partner relationship,broken down by transaction currency, if requested
INTER UNIT ELIMINATION OF PROFIT& LOSS
INTER UNIT ELIMINATION OF PROFIT& LOSS
8/12/2019 Overview of Eccs
19/57
q The system posts the values requiring elimination with a reversed
debit/credit sign. A consolidation unit and a partner unit are postedagainst in each line.
q The document type of the elimination entry determines its postinglevel.
q You specify pairs of item sets for inter unit elimination inelimination method customizing. You can use more than one pair ofitem sets for each method
INTER UNIT ELIMINATION OF PROFIT& LOSS
INTER UNIT ELIMINATION
8/12/2019 Overview of Eccs
20/57
Inter-unit Elimination functions are executed in order to neutralizetransactions that have transpired between companies within the group.There are various types of eliminations that are described in detail below.
Inter-company receivables and payables are eliminated so as not tooverstate the figures for the group as a whole. The items that areeliminated are:
q Inter-company Receivablesq Inter-company Payables
Inter-company long term loans taken and given are eliminated so as notto overstate the figures for the group as a whole. The items that areeliminated are:
q Long Term Loans Givenq Long Term Loans Taken
Inter-company revenue and cost of goods sold are eliminated so as not
to overstate the figures for the group as a whole. The items that areeliminated are:
q Revenueq COGS
INTER UNIT ELIMINATION
ELIMINATION OF INTERUNIT PROFIT AND LOSS
8/12/2019 Overview of Eccs
21/57
400400
Inventory 50
IC payables 120IC receivables 100
Equity 280Fxd assts 250
Aggregated balance sheet
400400
Retained 20Inventory 50
Equity 280Fxd assts 250
Group Balance Sheet
ELIMINATION OF INTERUNIT PROFIT AND LOSS(PROCEDURE)
DATABASE PRIOR TO
8/12/2019 Overview of Eccs
22/57
AB-1200PayablesBA-400Payables
AB500Receivables
BA1000Receivables
Partner UnitCons unitValueFS Item
DATABASE PRIOR TOINTERUNIT ELIMINATION
DATABASE AFTER INTERUNIT
8/12/2019 Overview of Eccs
23/57
BA100Other Expenses
BA400Payables
AB-500Receivables
AB-200Other Revenue
AB1200Payables
BA-1000Receivables
Partner UnitCons unitValueFS Item
DATABASE AFTER INTERUNITELIMINATION
CONSOLIDATION OF INVESTMENTS
8/12/2019 Overview of Eccs
24/57
q Consolidation of Investments is a function used to eliminate sharecapital ownership as well as retained earnings between group
companies, divestitures, transfers and amortization of goodwill. Thetransaction data is entered using T Code CX21. Consolidation ofInvestments function (TCode: CX57) is executed for the variousactivities as listed below:
q 01 First Consolidation
q 02 Subsequent Consolidation
q 03 Amortization of Goodwill
q 08 Partial Transfer
q 09 Total Transfer
q 10 Partial Divestiture
q 11 Total Divestiture
CONSOLIDATION OF INVESTMENTS
SIMULTANEOUS CONSOLIDATION
8/12/2019 Overview of Eccs
25/57
ADVANTAGES
q Details of all units are available for analysing the overallconsolidation group.
q Simultaneous consolidation process is more straightforward thanstep consolidation.
DIS-ADVANTAGES
q Lack of clarity when groups are too large (too much detail).
q Parallel sub-consolidation groups are possible for reportingpurposes, but generally pose the risk of being inconsistent with theoverall group
SIMULTANEOUS CONSOLIDATIONOF INVESTMENTS
SIMULTANEOUS CONSOLIDATION
8/12/2019 Overview of Eccs
26/57
G1
P Q R S
SRQP
Total =188486080=Group ANI
-52-40-20-Min.interest ANI
100100100Overall ANI
48%60%80%100%Group Share
Consolidation group with all consolidation Units
SIMULTANEOUS CONSOLIDATION
SIMULTANEOUS CONSOLIDATION
8/12/2019 Overview of Eccs
27/57
P
Q
R S
80%
60%75%
OFINVESTMENT
STEP CONSOLIDATION OF INVESTMENTS
8/12/2019 Overview of Eccs
28/57
ADVANTAGES
q Improved clarity when groups are very large
DISADVANTAGES
q Consolidation units of different sub-groups do not share common
details.
q When network-like investment structures are involved, disclosuresand computations are much more complex than in simultaneousconsolidations (for instance the change of methods in thehierarchy, or re-interpretation of activities).
STEP CONSOLIDATION
8/12/2019 Overview of Eccs
29/57
G1
P G2
G2P
TOTAL=188188=Group ANI
-47-Min.interest ANI
235Overall ANI
80%100%Group Share
60
-40100
60%
SRQ
TOTAL=23575100=Group ANI
-250-Min.interest ANI100100Overall ANI
75%100%Group Share
G2
Q SR
Hierarchical consolidation groups
STEP CONSOLIDATION OF INVESTMENT
8/12/2019 Overview of Eccs
30/57
P
Q
R S
80%
60%75%
8/12/2019 Overview of Eccs
31/57
STEPWISE SIMULTENEOUS CONSOLIDATION
8/12/2019 Overview of Eccs
32/57
G1
P G2
G2
Q SR
STEPWISE SIMULTENEOUS CONSOLIDATION
8/12/2019 Overview of Eccs
33/57
Total= -47100-15-20-Adj.min.int. In G1
48%60%80%Group ShareG1
48
-40
100
60%
RQP
TOTAL=1886080=Group ANI
-250-Min.interest in G2
100100Overall ANI
75%100%Group ShareG2
SIMULTANEOUS CONSOLIDATION
8/12/2019 Overview of Eccs
34/57
P
Q
R S
80%
60%75%
OF INVESTMENT
FINANCIAL STATEMENT ITEMS
8/12/2019 Overview of Eccs
35/57
q The FS item is the central account assignment object of theconsolidation system. It identifies a value or quantity entry
and can be differentiated with further sub assignments.
q The FS item type puts the characteristics of an item inconcrete terms, with regard to data entry, posting andprocessing in evaluations. The following FS item types aredistinguished: values, totals and text items.
q Where-applied indicator: Here you define whether the FSitem belongs to the assets, liabilities/equity, incomestatement or statistical items.
q The FS item type can be defined by the user, for example,in order to select items specially as key figure items
FINANCIAL STATEMENT ITEMS
8/12/2019 Overview of Eccs
36/57
q Sub items enable you to break down FS items further. It may, for example, benecessary to additionally assign financial statement items in transferred assets withdifferent transaction types so that all changes to the items are shown from theopening to the closing balance.
The sub items are grouped into sub item categories, in order to distinguish thetransaction types in transferred assets from those in equity, for example.
Only one sub item category can be assigned to a particular financial statement item inEC-CS.Default subitems are provided for each of the subitem categories in the consolidationcharts of accounts supplied with the system.
q In SAP integration, you can define a sender field for each sub item category, forexample transaction types, or customer's country. If the data is imported to EC-CSfrom FI or EC-PCA, the original account assignments are converted to sub items of thesame name.In the transaction applications, specify that the appropriate fields are ready for input
BREAK DOWN CATEGORY
8/12/2019 Overview of Eccs
37/57
Postings to FS items may be further broken down by Sub-items tofacilitate reporting. This is achieved by assigning a Breakdown Categoryto the FS item. The following breakdown categories cab be n defined for
Example.
q EQTY- For equity related items
q INCO For inter-company items which will be used for Inter-unitElimination
q ASST For all fixed asset related items acquisition andaccumulated depreciation
q GEN For all other items to be broken down by transactioncurrency
q STAT - For statistical items
VERSION
8/12/2019 Overview of Eccs
38/57
q Versions make it possible to consolidate financial data according todifferent criteria. Financial data to be prepared and consolidated
according to different criteria or using different valuationapproaches
q You can carry out consolidations in different consolidation versions.This enables you to carry out alternative consolidations, such assimulations, planning, restatements, and so on parallel to theconsolidation of the actual data.
q You can, for example, use different versions to manage,consolidate and compare different reporting data for comparisonsand simulations.
q You can open new versions at any time
VERSION
8/12/2019 Overview of Eccs
39/57
THE FIELD LENGTH AVAILABLE FOR NAMING OF VERSIONS IS THREE.
EXAMPLES OF CONSOLIDATION VERSION :-
Local Version [used for local GAAP reporting]This is will either be an ADD-ON version and references version 100 as its base version,or, will be a normal version with the data being copied from version 100
Balances will be carried forward into the new year for this version
Copying of data from this consolidation version to another is allowed [useful secondversion created for simulations]
At this stage all tasks will reference the special version 100 [Actual Version]. This maychange.
300
Budget Version
This is a NORMAL version
Balances will be carried forward into the new year for this version
Copying of data from this consolidation version to another is allowed [useful secondversion created for simulations]
All tasks will reference the special version 200 [Budget Version
200
Actual Version
This is a NORMAL version
Balances will be carried forward into the new year for this version
Copying of data from this consolidation version to another is allowed [useful secondversion created for simulations]All tasks will reference the special version 100 [ActualVersion]
100
DESCRIPTIONCONSOLIDATIO
N VERSION
USE OF DIFFERENT VERSIONS
8/12/2019 Overview of Eccs
40/57
Example of the use of add-on versions
q Version 1 consists of the consolidated statements according to USGAAP.
q Version 2 consists of additional financial data and/or manual orautomatic postings.
q Version 2 reflects Japanese GAAP in conjunction with version
Drilldown Reporting and the Report Writer
q When the reporting functions use an add-on version, the data of allreferenced versions are automatically used, as well.
Consolidation functions and the rest of the Information System:
q Always work with the data of their versionq Have no relationship to the referenced data of other versions
USE OF DIFFERENT VERSIONS
8/12/2019 Overview of Eccs
41/57
You can carry out simulations to analyse the different effects of:
Different valuation options
q Exchange rates
q Restatements
q Different reporting data (actual/plan)
Using the version concept you can, for example, combine yourversions for actual and plan data with alternative currencytranslation methods
LEDGER
8/12/2019 Overview of Eccs
42/57
Contains transaction figures and documents showing the changes in thevalues and quantities resulting from accounting transactions. The values oftransaction figures are saved in 16 periods as well as in one period for thebalance carried forward.
You assign a ledger to each consolidation group in the master record of theconsolidation group. The currency of the ledger determines the currency inwhich the consolidation groups carried in the ledger report their financialdata
The data in the ECMCT totals table can be managed in three currencies:
q
Transaction currency
q Currency of the consolidation unitq Ledger currency. The ledger currency specifies the currency of the
consolidation group.
You can also manage the ledger values as quantities (the unit of measure isdefined in the breakdown category).
Example: -
q You want to consolidate two consolidation groups in USD and EURO. Youneed two ledgers for this. At group level you copy the values from theEURO ledger into the USD ledger.
q SAP delivers the standard ledger "1C" for consolidation. This ledger is notfor use in a live customer system. Please create a new ledger (usingledger "1C" as a copy template).
LEDGER
8/12/2019 Overview of Eccs
43/57
Consol ledger APAC-New Zealand. Currency
(NZD)
P2
Consol ledger APAC-Australia. Currency (AUD)PI
Ledger NameLedger
FLEXIBLE UPLOAD FROM NON SAP SYSTEM
8/12/2019 Overview of Eccs
44/57
q You use this method if one or more units does not use anyintegration, but administer their reported financial data on PC.You can start the data collection both for a single unit and as wellas for a group.
q Reported dataYou can start the data collection directly in the data monitor, when
you supply the master data of the cons units with the followinginformation:q logical file name, server selection, upload methodq The system only transfers the data streams, which correspond to
the global parameters and refer to the unit to be edited. Other datastreams of the file are not taken into account.
q You can also transfer the master data and the Customizing ofproduct groups from a file.
q You can upload standardizing entries. A document is generated percombination of ledger, consolidation chart of accounts, dimension,version, period and consolidation unit.
STANDARDISED ENTRY
8/12/2019 Overview of Eccs
45/57
q Sometimes accounting practices followed by group companies in certain
regions do not conform to corporate policies. In order to create acommon ground for all companies in the group some adjustments needto be made in Consolidation. These adjustments are calledStandardizing entries. The manner in which standardizing entries arepassed is quite similar to journals in FI, except that the line items areposted to FS items (instead of GL accounts in FI).
q Standardizing entries are valid in all consolidation groups containing theconsolidation unit that is posted against
CURRENCY TRANSLATION
8/12/2019 Overview of Eccs
46/57
q The currency translation task enables you to translate financial datareported by consolidation units in their local currency into the currencyof the consolidation group.
q Currency translation is based on translation methods. You can define
several methods for translating data reported by your consolidationunits. You can assign every consolidation unit by time period andversion.
q The type of currency translation you use depends on the relationshipsbetween your corporate group and its individual consolidation units(functional currency).
q You can define any of the commonly-used translation methods for yourchart of accounts (temporal method, current-rate method, and soon).
q Different financial statement item sets are usually translated usingdifferent exchange rates. You use various combinations of the currencytranslation key and the exchange rate indicator to determine theseexchange rates.
q The currency translation key determines the base currency fortranslation, the table used to find the exchange rate, and the
procedure for calculating group currency values.q The currency translation keys are fixed and cannot be changed
(exception: translation key
DATA MONITOR
8/12/2019 Overview of Eccs
47/57
q You use the Data Monitor to run the Activities for collecting and
Preparing the financial data reported by your Consolidation units.Inconsolidation,these Activities are called Task.
q A Task group in a Collection of Task which is assigned to a dimension.ATask Group is assigned to one or many Consolidation Groups
q The Data Monitor displays the Hierarchy of organisation units all the
way down to the level of the Consolidation Units.This means you canrun the Task for the consolidation Groups as well as the ConsolidationUnit
DATA MONITOR
8/12/2019 Overview of Eccs
48/57
Data monitor
Task Group
1Task
23
Dimension
VALIDATION
8/12/2019 Overview of Eccs
49/57
The concept of user-defined validation is employed in many SAPapplications.
Validations are available in addition to the standard checks in the EC-CSposting transaction. You can run validation when processing thefollowing:
q Document header
q Individual document line
q Complete document
q Validation for a consolidation unit typically takes place after datacollection (in local currency) and currency translation (into groupcurrency).
q Validation across consolidation units or dimensions is essential forensuring reconciled data in legal and management consolidation
DOCUMENT TYPE IN CONSOLIDATION
8/12/2019 Overview of Eccs
50/57
q EC-CS supports a wide range of automatic postings. You can also poststandardizing and consolidation entries manually. Postings are classified bymeans of document types, enabling a simple analysis and the distinctionbetween different business functions.
q Document types are used to assign specific attributes to consolidation entries.It is possible to use consolidation task-specific document types that can beemployed in the reports and validations
q The system automatically generates journal entries (financial statementbalancing adjustments and deferred income taxes).In this way, you can control the special items for deferred taxes better,independently of the respective document type. Apart from that, with
document types which are larger than or equal to 20, you can define aclearing item for cross-consolidation units postings (only for these postinglevels can a cross-consolidation unit posting take place).
q When you want to specify selected items for the document type, then enter anitem for the debit and credit postings.
q You need to use different document types to distinguish between manual and
automatic postings. You can use identical or different number ranges forposting.
q The account assignment takes place by item number and as desired by subassignment possibilities, which you can specify individually.
q A reversal function (and a mass reversal function) is available for singledocuments
BALANCE CARRY FORWARD
8/12/2019 Overview of Eccs
51/57
q At year-end consolidation balances are carried forward to the nextyear. B/S balances are carried forward to themselves while P&Lbalances are transferred to the Un-appropriated Retained Earningsitem
q Note: There is a Carry Forward Balances function in FI also (Tcode:F.16), which has no bearing on this transaction. In other words,executing the carry forward transaction in FI does not automaticallycarry forward balances in Consolidation.
q Every month, the Retained Earnings function (T Code: CXCL) should
be run for each consolidation unit, which posts the current monthsRetained earnings to items RE ANI B/S and RE ANI I/S
q At the end of the year, when the Balance Carry Forward function isexecuted, the figure from Retained Earnings gets carried forward toUn-appropriated Retained Earnings item to facilitate Consol Reporting.
RETAINED EARNINGS
8/12/2019 Overview of Eccs
52/57
q Every month-end, the retained earnings needs to be calculated andposted to the Current Year Retained Earnings items in the Balance
Sheet and Income Statement such that both balance individually.These items are:
q Retained Earnings Annual Net Income Balance Sheet : 531200
q Retained Earnings Annual Net Income I/S: 990400
q There is no document number created, it hits the totals databasedirectly. Any subsequent postings generated automatically byConsolidation functions would post to these items if there is animbalance between B/S and I/S in the consol entry.
POSTING LEVEL
8/12/2019 Overview of Eccs
53/57
The Posting Level Standardizes postings in the Consolidation system.
Examples of different Type of Posting levels are as follows :-
q Space : Financial data from real-time update
q 08 : Item Substitution based on Posting Level Space,00,and 01.
q 23 & 24 : Two sided Consolidation Entries
q 02,12,22,24 : Entries are valid for specific Consolidation Group
POSTING LEVEL
8/12/2019 Overview of Eccs
54/57
Adjusting entry Divestiture entry
Reported data 00 01 02
Standardizing entries 10 12
Two-sided elimination
entries20 22
Group-dependentelimination entries
30
Non group-dependent Group-dependent
POSTING AND DOCUMENT TYPES
8/12/2019 Overview of Eccs
55/57
q Posting in Consolidation Ledger are differentiated by document Type
q Each document type is assignment to a single number range for aparticular version
q Posting levels are assigned to document type
q Each Document Type should be used for One Task Only
POSTING AND DOCUMENT TYPES
8/12/2019 Overview of Eccs
56/57
Document Types(1)
Number ranges(2)
Tasks(4)
Special FS items(3)
PostingECMCAECMCT
Total reportsDocument
Analysis
RECLASSIFICATIONS
8/12/2019 Overview of Eccs
57/57
q Reclassifications are adjustment entries between balance sheet and/orincome statement items. That is, the values of the financial statement(FS) items are reclassified
q For further documents visit www.sap-topjobs.com