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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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CONSOLIDATION Consolidation process
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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CONSOLIDATION Consolidation process
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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CONSOLIDATION Consolidation process
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CONSOLIDATION Consolidation process
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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CONSOLIDATION Consolidation process
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
At this posting level
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