OVERVIEWOF

ENTERPRISECONTROLLINGCONSOLIDATIONSYSTEM(ECCS)

SAP
Consolidation Companies
Task Data
NonSAP
Additional
Companies
Financial
Data
Data

Realtimeupdate

ExcelUpload
ManualInput

ECCS

Consolidated
Financial
Statement
 DEFINITION

Consolidationistheprocessofcombiningtheindividualfinancial
statementdataofrelevantcompaniesinordertoprepare
ConsolidatedFinancialStatements(CFS)fortheGrouptoshowits
financialpositionasasinglebusinessentity.Theconsolidated
financialstatementsincludethefinancialstatementsofthecompany
andenterprisescontrolledbyiti.eitssubsidiariesandthesharein
profitsofassociates.

Theprocessathighlevelinvolvesperformanceoftaskssuch
as

q Interuniteliminationsofreceivables,payables,revenues,
expensesetc.
q ConsolidationofInvestmentsandaccountingforthe
minorityinterest
q Translationsofthestatementsunderrelevantcurrencies.
q ReportsGeneration
 DEFINITION

The objective of the consolidation component is to create

consolidatedfinancialstatementsconsistingofBalanceSheet,Profit
and Loss Statement, and Cash Flow Statement and to provide the
timely information to the management. ECCS significantly
acceleratestheconsolidationprocesswithitsautomaticfunctionsfor
currency translation, inter unit elimination and consolidation of
investments .The Consolidation process is performed in the
ConsolidationComponentofSAPR/3ECCSmodule.
 GLOBALPARAMETER

q GlobalparametersareimportantsettingsforECCSthat
typicallyremainthesameforaworksession.

q Theseparametersaresavedforaparticulartheuserwhen
he/shelogsoff,andareautomaticallyusedwhenhe/she
logsbackon.However,theparameterscanbechangedas
andwhenrequired.

q Whenyourunafunction,theinformationsavedasayour
globalparametersareeitherproposedbydefault,orsetin
thebackground(inwhichtheycannotbespecifieddirectly
forthefunction).

q Theglobalparametersaredisplayedinastatusrowatthe
topofeveryscreeninCustomizingandtheconsolidation
functions.

q InCustomizing,theparametersthatarerelevantforthe
currentmaintenancearedisplayedinadifferentcolor.For
example,maintenanceoffinancialstatementitemsis
dependentontheconsolidationchartofaccounts,butnot
ontheversion.
 GLOBALPARAMETER

Consgroups FSItem DataMonitor ConsMonitor InfoSystem Parameters

GlobalParameter
Dimension 01 Legal

Version 100 ActualData

Year 2006

Period 012

ConsC/A 01 Plan
Ledger AUS AUD
 DIMENSION
q A dimension defines the specific characteristic ingroup reporting. Dimensions
include consolidation types such as company consolidation, business area
consolidation,orprofitcentreconsolidation.

q Standard,Conventions&Rules

v Therequirementforconsolidationistobeabletoconsolidatefromalegal
view and a management view. Legal View will be based on companies
andManagementViewbasedonprofitcentres.
v SAP delivers a standard dimension for companies and a standard
dimensionforprofitcentres.Theseare:
v 01forcompanies
v 03forprofitcentres

q Agivendimensioncanrepresentoneormoreconsolidationtypes.Youtypically
useonedimensionforeachconsolidationtype.Dimensionsarespecificviewson
groupreporting.In adimension, youdefinethegroupstructureasahierarchy
of consolidation units and groups. You can manage several dimensions in
parallelinthesystem.

q DimensionIndependentare
v OrganisationUnits
v ControlDatasuchasTasksandMethods

q DimensionDependentDataare
v ConsolidatedChartofAccounts
v ConsolidationVersion
 HIERARCHY

q Hierarchiesarestructuredsetsofconsolidationunitsand
consolidationgroups.Theyaredefinedbytheirtopmost
consolidationgroup.

q Anyconsolidationunitorgroupcanexistinanynumberof
hierarchies.

q Ineachdimension,youcandefinethehierarchylevelsandarrange
theselevelsintothedesiredsequence.Youcanthenassignthe
levelstotheconsolidationgroupsofahierarchytoclarifythe
hierarchystructure.

q Eachhierarchyusesapartofthishierarchylevel.
Eachconsolidationgroupisassignedtoonlyonelevel.
Intheexample,hierarchy2consistsofthelevelsgroup,strategic
businessunit,company,businessarea,andcompany/business
area

q Youcancreateanynumberofhierarchylevels.

q Thenumberofhierarchylevelscanvaryindifferentbranchesof
thesamehierarchy.
 CONSOLIDATIONGROUP

q Aconsolidationgroupisauserdefinedcombinationofmultiple
consolidationunitsand/orconsolidationgroupsforconsolidation
andreportingpurposes.Itrepresentsthestructureofthegroup.

q Consolidationgroupsandconsolidationunitsaredependentonthe
dimension.

q Eachconsolidationunitcanbeincludedindifferentconsolidation
groups,andeachconsolidationgroupinturncanbeincludedin
differenthierarchies.

q Sinceconsolidationgroupsaredimensiondependent,themaster
datacreatedfortheconsolidationgroupsisvalidonlyinthe
relevantdimension
 CONSOLIDATIONUNITS&GROUPS

CONS
GROUP
WORLD

CONS
APAC PARENT EUROPE GROUP

CONS
AUST NZ UK FRANCE UNIT
 CONSOLIDATIONUNIT

Theconsolidationunitisthesmallestelementofthegroupstructurefor
whichacompleteconsolidationcantakeplace.Consolidationunitsare
theequivalentofcompanycodesinFI.Theyarelinkedinthe
consolidationhierarchyatthelowestnode.Consolidationgroupsmaybe
collectionsofvariousconsolidationunits.

Informationstoredinthemasterdataofaconsolidationunittypically
comprisesofthefollowing:

q NameandAddress

q Country

q Language

q LocalCurrency

q Meansofdatatransfer

q MethodofCurrencyTranslation
 CONSOLIDATEDCHARTOFACCOUNTS

q Inordertocreateconsolidatedfinancialstatements,thetransactiondataof
alltheconsolidationunitsincludedmustbeuniformlyaggregated.Forthis
purpose,thegroupheadquartersprovidesallconsolidationunitswithoneor
moreconsolidationchartsofaccounts.Thesechartsofaccountsstructure
thefinancialstatementitemsinaccordancewiththeinternalandexternal
requirementsoftheconsolidatedfinancialstatements.Intheconsolidation
chartofaccounts,allfinancialstatementitemsarearrangedlogicallyinan
itemhierarchy.

q Theconsolidationchartofaccountsisclientdependentonly.Therefore,you
canuseitindifferentdimensions.

q ToallowtheintegratedtransferofreportedfinancialdatafromSAP
transactionapplications,youmustcreatealinkbetweentheG/Laccounts
andanysecondarycostelements,andtheconsolidationfinancialstatement
items.Whenrealtimeupdatingorrollupisused,theID'softhetransaction
accountsareidenticaltotheID'softheFSitems.Whenperiodicextractis
used,thefinancialstatementversionitemsandtheconsolidationitemsare
identical.InordertoensurethattheIDscorrespond,youcancreatethe
consolidationchartofaccountsfromboththeFIchartofaccountsandthe
financialstatementversion.
CONSIDATIONGROUP,LEDGER,VERSION

AUD NZ UK FRANCE

VERSION100 VERSION200

LEDGER LEDGER
IN IN
AUD EURO

ECMCT
TOTAL DATABASE
FINANCIALSTATEMENTITEMS&ACCOUNT
ASSIGNMENT

01 ConsolidatedCOA

ASSET FSitem

1 FSitemTypes

+ Debit/CreditSign

1000 BreakdownCategory
 DATACOLLECTIONMETHODS

DatacollectionfromSAPSystems:

q Realtimeupdatefromotherapplicationcomponentswithinthe
sameSAPsystem

q RollupfromanFISLledger

q RollupfromanotherECCScomponent

q PeriodicextractfromFIGL

q PeriodicextractfromR/2(planned)

q DatacollectionfromnonSAPsystems:

q FlexibleuploadofdataextractsfromnonSAPsystems

q MSAccessofflinedataentryusinganadditionalMSExcelinterface
 DATACOLLECTIONMETHOD

NonSAP
Additional SAP
Consolidation Companies
Financial Companies
Task Data
Data Data

Realtimeupdate

ExcelUpload
ManualInput

ECCS

Consolidated
Financial
Statement
FLOWOFFINANCIALDATAINCONSOLIDATION

q ConsolidationwiththeECCScomponentisbasedontotalsdata.This
dataisrecordedusingvariousdatacollectionproceduresandis
storedinthetotalstableECMCT.

q Additionalfinancialdatarelevantforconsolidationisalsoenteredin
separatetables.Thisadditionaldataisnotnecessarilyreportedby
consolidationunitsintheirindividualfinancialstatements.

q Allpostingsmadeduringtheconsolidationprocessaresavedas
documentsinthejournalentrydatabaseECMCA.

q ThetotalstableECMCTthereforeincludesthefollowing:Alldatafrom
theindividualfinancialstatements,changesoradditionstothis
datasetasaresultofanyadditionalfinancialdatareported
StandardizingentriesandConsolidationentries
 CONSOLIDATEDDATABASE

Task
Ledger AcquisitionYear
DocType
consunit Unitof
ConsGroup
version Measure
year,period

ConsCOA
TransCurrency
ItemCategory
LOCALCurrency
SubItem
GroupCurrency
INTERUNITELIMINATIONOFPROFIT&LOSS

q YoudefinetasksandmethodsforIUeliminationsinCustomizing.You
shouldcreateataskforeachoftheinterunitconsolidationprocedures,
forexample,eliminationofinterunitpayablesandreceivablesor
revenueandexpense.Inamethod,youspecifywhichitemsaretobe
mutuallyeliminatedandhowyouwanttohandleanyresulting
differences.

q YouexecuteIUeliminationtasksfromtheconsolidationmonitor.The
systemgeneratesaneliminationentryinthefollowingcases:

q AconsolidationunitreportsavalueforanFSitemrequiring
elimination.

q Anotherconsolidationunitisassignedasthetradingpartnerforthis
value.

q Youhavespecifiedthatbothoftheaboveconsolidationunitsaretobe
includedinIUelimination.
q Thesystemdifferentiateseliminationentriesaccordingtotrading
partnerrelationships,asfollows:Apairofconsolidationunitsisalways
lookedatandwithinthispairapairofFSitemsets

q Eliminationdocumentscontainanentryforeachpartnerrelationship,
brokendownbytransactioncurrency,ifrequested
INTERUNITELIMINATIONOFPROFIT&LOSS

q Thesystempoststhevaluesrequiringeliminationwithareversed
debit/creditsign.Aconsolidationunitandapartnerunitareposted
againstineachline.

q Thedocumenttypeoftheeliminationentrydeterminesitsposting
level.

q Youspecifypairsofitemsetsforinteruniteliminationin
eliminationmethodcustomizing.Youcanusemorethanonepairof
itemsetsforeachmethod
 INTERUNITELIMINATION

InterunitEliminationfunctionsareexecutedinordertoneutralize
transactionsthathavetranspiredbetweencompanieswithinthegroup.
Therearevarioustypesofeliminationsthataredescribedindetailbelow.

Intercompanyreceivablesandpayablesareeliminatedsoasnotto
overstatethefiguresforthegroupasawhole.Theitemsthatare
eliminatedare:

q IntercompanyReceivables
q IntercompanyPayables

Intercompanylongtermloanstakenandgivenareeliminatedsoasnot
tooverstatethefiguresforthegroupasawhole.Theitemsthatare
eliminatedare:

q LongTermLoansGiven
q LongTermLoansTaken

Intercompanyrevenueandcostofgoodssoldareeliminatedsoasnot
tooverstatethefiguresforthegroupasawhole.Theitemsthatare
eliminatedare:

q Revenue
q COGS
ELIMINATIONOFINTERUNITPROFITANDLOSS
(PROCEDURE)

Aggregatedbalancesheet
Fxd assts 250 Equity 280
IC receivables 100 IC payables 120
Inventory 50

400
400

GroupBalanceSheet
Fxd assts 250 Equity 280

Inventory 50 Retained 20

400 400
 DATABASEPRIORTO
INTERUNITELIMINATION

FS Item Value Cons unit Partner Unit

Receivables 1000 A B
Receivables 500 B A
Payables -400 A B
Payables -1200 B A
 DATABASEAFTERINTERUNIT
ELIMINATION

FSItem Value Consunit PartnerUnit

Receivables 1000 A B
Payables 1200 B A
OtherRevenue 200 B A
Receivables 500 B A
Payables 400 A B
OtherExpenses 100 A B
 CONSOLIDATIONOFINVESTMENTS

q ConsolidationofInvestmentsisafunctionusedtoeliminateshare
capitalownershipaswellasretainedearningsbetweengroup
companies,divestitures,transfersandamortizationofgoodwill.The
transactiondataisenteredusingTCodeCX21.Consolidationof
Investmentsfunction(TCode:CX57)isexecutedforthevarious
activitiesaslistedbelow:

q 01FirstConsolidation

q 02SubsequentConsolidation

q 03AmortizationofGoodwill

q 08PartialTransfer

q 09TotalTransfer

q 10PartialDivestiture

q 11TotalDivestiture
 SIMULTANEOUSCONSOLIDATION
OFINVESTMENTS

ADVANTAGES

q Detailsofallunitsareavailableforanalysingtheoverall
consolidationgroup.
q Simultaneousconsolidationprocessismorestraightforwardthan
stepconsolidation.

DISADVANTAGES

q Lackofclaritywhengroupsaretoolarge(toomuchdetail).
q Parallelsubconsolidationgroupsarepossibleforreporting
purposes,butgenerallyposetheriskofbeinginconsistentwiththe
overallgroup
 SIMULTANEOUSCONSOLIDATION
ConsolidationgroupwithallconsolidationUnits

G1

P Q R S

P Q R S
Group Share 100% 80% 60% 48%
Overall ANI 100 100 100
-Min.interest ANI -20 -40 -52
=Group ANI 80 60 48 Total =188
SIMULTANEOUSCONSOLIDATION
OF
INVESTMENT

P 80%

Q
60%
75%

R S
 STEPCONSOLIDATIONOFINVESTMENTS

ADVANTAGES

q Improvedclaritywhengroupsareverylarge

DISADVANTAGES

q Consolidationunitsofdifferentsubgroupsdonotsharecommon
details.

q Whennetworklikeinvestmentstructuresareinvolved,disclosures
andcomputationsaremuchmorecomplexthaninsimultaneous
consolidations(forinstancethechangeofmethodsinthe
hierarchy,orreinterpretationofactivities).
 STEPCONSOLIDATION
Hierarchicalconsolidationgroups

G1 P G2

GroupShare 100% 80%

OverallANI 235
Min.interestANI 47
P G2
=GroupANI 188 TOTAL=188

G2 Q R S
GroupShare 100% 75% 60%

OverallANI 100 100 100

Min.interestANI 0 25 40
Q R S =GroupANI 100 75 60 TOTAL=235
STEPCONSOLIDATIONOFINVESTMENT

P
80%

Q
75% 60%

R S
STEPWISESIMULTANEOUSCONSOLIDATIONOF
INVESTMENTS

Stepwisesimultaneousconsolidationunitestheadvantagesof
simultaneousandstepconsolidation

q Detailsofeachconsolidationunit
q Detailsateachlevelofconsolidation

ECCSsupportsstepwisesimultaneousconsolidation:
STEPWISESIMULTENEOUSCONSOLIDATION

G1

P G2

G2

Q R S
STEPWISESIMULTENEOUSCONSOLIDATION

P Q R

Group ShareG2 100% 75% 60%

Overall ANI 100 100 100

-Min.interest in G2 0 -25 -40

Group ShareG1 80% 60% 48%

-Adj.min.int. In G1 -20 -15 100 Total= -47

=Group ANI 80 60 48 TOTAL=188

SIMULTANEOUSCONSOLIDATION
OFINVESTMENT

P
80%

Q
75% 60%

R S
 FINANCIALSTATEMENTITEMS

q TheFSitemisthecentralaccountassignmentobjectofthe
consolidationsystem.Itidentifiesavalueorquantityentry
andcanbedifferentiatedwithfurthersubassignments.

q TheFSitemtypeputsthecharacteristicsofanitemin
concreteterms,withregardtodataentry,postingand
processinginevaluations.ThefollowingFSitemtypesare
distinguished:values,totalsandtextitems.

q Whereappliedindicator:HereyoudefinewhethertheFS
itembelongstotheassets,liabilities/equity,income
statementorstatisticalitems.

q TheFSitemtypecanbedefinedbytheuser,forexample,
inordertoselectitemsspeciallyaskeyfigureitems
 FINANCIALSTATEMENTITEMS
q SubitemsenableyoutobreakdownFSitemsfurther.Itmay,forexample,be
necessarytoadditionallyassignfinancialstatementitemsintransferredassetswith
differenttransactiontypessothatallchangestotheitemsareshownfromthe
openingtotheclosingbalance.
Thesubitemsaregroupedintosubitemcategories,inordertodistinguishthe
transactiontypesintransferredassetsfromthoseinequity,forexample.
Onlyonesubitemcategorycanbeassignedtoaparticularfinancialstatementitemin
ECCS.
Defaultsubitemsareprovidedforeachofthesubitemcategoriesintheconsolidation
chartsofaccountssuppliedwiththesystem.

q InSAPintegration,youcandefineasenderfieldforeachsubitemcategory,for
exampletransactiontypes,orcustomer'scountry.IfthedataisimportedtoECCS
fromFIorECPCA,theoriginalaccountassignmentsareconvertedtosubitemsofthe
samename.
Inthetransactionapplications,specifythattheappropriatefieldsarereadyforinput
 BREAKDOWNCATEGORY

PostingstoFSitemsmaybefurtherbrokendownbySubitemsto
facilitatereporting.ThisisachievedbyassigningaBreakdownCategory
totheFSitem.Thefollowingbreakdowncategoriescabbendefinedfor
Example.

q EQTYForequityrelateditems

q INCOForintercompanyitemswhichwillbeusedforInterunit
Elimination

q ASSTForallfixedassetrelateditemsacquisitionand
accumulateddepreciation

q GENForallotheritemstobebrokendownbytransaction
currency

q STATForstatisticalitems
 VERSION

q Versionsmakeitpossibletoconsolidatefinancialdataaccordingto
differentcriteria.Financialdatatobepreparedandconsolidated
accordingtodifferentcriteriaorusingdifferentvaluation
approaches

q Youcancarryoutconsolidationsindifferentconsolidationversions.
Thisenablesyoutocarryoutalternativeconsolidations,suchas
simulations,planning,restatements,andsoonparalleltothe
consolidationoftheactualdata.

q Youcan,forexample,usedifferentversionstomanage,
consolidateandcomparedifferentreportingdataforcomparisons
andsimulations.

q Youcanopennewversionsatanytime
 VERSION
THEFIELDLENGTHAVAILABLEFORNAMINGOFVERSIONSISTHREE.
EXAMPLESOFCONSOLIDATIONVERSION:
CONSOLIDATIO DESCRIPTION
NVERSION
100 ActualVersion
ThisisaNORMALversion
Balanceswillbecarriedforwardintothenewyearforthisversion
Copyingofdatafromthisconsolidationversiontoanotherisallowed[usefulsecond
versioncreatedforsimulations]Alltaskswillreferencethespecialversion100[Actual
Version]

300 LocalVersion[usedforlocalGAAPreporting]
ThisiswilleitherbeanADDONversionandreferencesversion100asitsbaseversion,
or,willbeanormalversionwiththedatabeingcopiedfromversion100
Balanceswillbecarriedforwardintothenewyearforthisversion
Copyingofdatafromthisconsolidationversiontoanotherisallowed[usefulsecond
versioncreatedforsimulations]
Atthisstagealltaskswillreferencethespecialversion100[ActualVersion].Thismay
change.

200 BudgetVersion
ThisisaNORMALversion
Balanceswillbecarriedforwardintothenewyearforthisversion
Copyingofdatafromthisconsolidationversiontoanotherisallowed[usefulsecond
versioncreatedforsimulations]
Alltaskswillreferencethespecialversion200[BudgetVersion
 USEOFDIFFERENTVERSIONS

Exampleoftheuseofaddonversions

q Version1consistsoftheconsolidatedstatementsaccordingtoUS
GAAP.
q Version2consistsofadditionalfinancialdataand/ormanualor
automaticpostings.
q Version2reflectsJapaneseGAAPinconjunctionwithversion

DrilldownReportingandtheReportWriter

q Whenthereportingfunctionsuseanaddonversion,thedataofall
referencedversionsareautomaticallyused,aswell.

ConsolidationfunctionsandtherestoftheInformationSystem:

q Alwaysworkwiththedataoftheirversion
q Havenorelationshiptothereferenceddataofotherversions
 USEOFDIFFERENTVERSIONS

Youcancarryoutsimulationstoanalysethedifferenteffectsof:

Differentvaluationoptions

q Exchangerates
q Restatements
q Differentreportingdata(actual/plan)

Usingtheversionconceptyoucan,forexample,combineyour
versionsforactualandplandatawithalternativecurrency
translationmethods
 LEDGER
Containstransactionfiguresanddocumentsshowingthechangesinthe
valuesandquantitiesresultingfromaccountingtransactions.Thevaluesof
transactionfiguresaresavedin16periodsaswellasinoneperiodforthe
balancecarriedforward.
Youassignaledgertoeachconsolidationgroupinthemasterrecordofthe
consolidationgroup.Thecurrencyoftheledgerdeterminesthecurrencyin
whichtheconsolidationgroupscarriedintheledgerreporttheirfinancial
data

ThedataintheECMCTtotalstablecanbemanagedinthreecurrencies:

q Transactioncurrency
q Currencyoftheconsolidationunit
q Ledgercurrency.Theledgercurrencyspecifiesthecurrencyofthe
consolidationgroup.
Youcanalsomanagetheledgervaluesasquantities(theunitofmeasureis
definedinthebreakdowncategory).

Example:

q YouwanttoconsolidatetwoconsolidationgroupsinUSDandEURO.You
needtwoledgersforthis.Atgrouplevelyoucopythevaluesfromthe
EUROledgerintotheUSDledger.
q SAPdeliversthestandardledger"1C"forconsolidation.Thisledgerisnot
foruseinalivecustomersystem.Pleasecreateanewledger(using
ledger"1C"asacopytemplate).
 LEDGER

Ledger LedgerName

PI ConsolledgerAPACAustralia.Currency(AUD)

P2 ConsolledgerAPACNewZealand.Currency
(NZD)
FLEXIBLEUPLOADFROMNONSAPSYSTEM

q Youusethismethodifoneormoreunitsdoesnotuseany
integration,butadministertheirreportedfinancialdataonPC.
Youcanstartthedatacollectionbothforasingleunitandaswell
asforagroup.
q Reporteddata
Youcanstartthedatacollectiondirectlyinthedatamonitor,when
yousupplythemasterdataoftheconsunitswiththefollowing
information:
q logicalfilename,serverselection,uploadmethod
q Thesystemonlytransfersthedatastreams,whichcorrespondto
theglobalparametersandrefertotheunittobeedited.Otherdata
streamsofthefilearenottakenintoaccount.
q YoucanalsotransferthemasterdataandtheCustomizingof
productgroupsfromafile.
q Youcanuploadstandardizingentries.Adocumentisgeneratedper
combinationofledger,consolidationchartofaccounts,dimension,
version,periodandconsolidationunit.
 STANDARDISEDENTRY

q Sometimesaccountingpracticesfollowedbygroupcompaniesincertain
regionsdonotconformtocorporatepolicies.Inordertocreatea
commongroundforallcompaniesinthegroupsomeadjustmentsneed
tobemadeinConsolidation.Theseadjustmentsarecalled
Standardizingentries.Themannerinwhichstandardizingentriesare
passedisquitesimilartojournalsinFI,exceptthatthelineitemsare
postedtoFSitems(insteadofGLaccountsinFI).

q Standardizingentriesarevalidinallconsolidationgroupscontainingthe
consolidationunitthatispostedagainst
 CURRENCYTRANSLATION

q Thecurrencytranslationtaskenablesyoutotranslatefinancialdata
reportedbyconsolidationunitsintheirlocalcurrencyintothecurrency
oftheconsolidationgroup.
q Currencytranslationisbasedontranslationmethods.Youcandefine
severalmethodsfortranslatingdatareportedbyyourconsolidation
units.Youcanassigneveryconsolidationunitbytimeperiodand
version.
q Thetypeofcurrencytranslationyouusedependsontherelationships
betweenyourcorporategroupanditsindividualconsolidationunits
(functionalcurrency).
q Youcandefineanyofthecommonlyusedtranslationmethodsforyour
chartofaccounts(temporalmethod,currentratemethod,andso
on).
q Differentfinancialstatementitemsetsareusuallytranslatedusing
differentexchangerates.Youusevariouscombinationsofthecurrency
translationkeyandtheexchangerateindicatortodeterminethese
exchangerates.
q Thecurrencytranslationkeydeterminesthebasecurrencyfor
translation,thetableusedtofindtheexchangerate,andthe
procedureforcalculatinggroupcurrencyvalues.
q Thecurrencytranslationkeysarefixedandcannotbechanged
(exception:translationkey
 DATAMONITOR

q YouusetheDataMonitortoruntheActivitiesforcollectingand
PreparingthefinancialdatareportedbyyourConsolidationunits.In
consolidation,theseActivitiesarecalledTask.

q ATaskgroupinaCollectionofTaskwhichisassignedtoadimension.A
TaskGroupisassignedtooneormanyConsolidationGroups

q TheDataMonitordisplaystheHierarchyoforganisationunitsallthe
waydowntotheleveloftheConsolidationUnits.Thismeansyoucan
runtheTaskfortheconsolidationGroupsaswellastheConsolidation
Unit
 DATAMONITOR

Dimension

Datamonitor

TaskGroup

Task
1 3
2
 VALIDATION
TheconceptofuserdefinedvalidationisemployedinmanySAP
applications.

ValidationsareavailableinadditiontothestandardchecksintheECCS
postingtransaction.Youcanrunvalidationwhenprocessingthe
following:

q Documentheader

q Individualdocumentline

q Completedocument

q Validationforaconsolidationunittypicallytakesplaceafterdata
collection(inlocalcurrency)andcurrencytranslation(intogroup
currency).

q Validationacrossconsolidationunitsordimensionsisessentialfor
ensuringreconcileddatainlegalandmanagementconsolidation
 DOCUMENTTYPEINCONSOLIDATION
q ECCSsupportsawiderangeofautomaticpostings.Youcanalsopost
standardizingandconsolidationentriesmanually.Postingsareclassifiedby
meansofdocumenttypes,enablingasimpleanalysisandthedistinction
betweendifferentbusinessfunctions.

q Documenttypesareusedtoassignspecificattributestoconsolidationentries.
Itispossibletouseconsolidationtaskspecificdocumenttypesthatcanbe
employedinthereportsandvalidations

q Thesystemautomaticallygeneratesjournalentries(financialstatement
balancingadjustmentsanddeferredincometaxes).
Inthisway,youcancontrolthespecialitemsfordeferredtaxesbetter,
independentlyoftherespectivedocumenttype.Apartfromthat,with
documenttypeswhicharelargerthanorequalto20,youcandefinea
clearingitemforcrossconsolidationunitspostings(onlyfortheseposting
levelscanacrossconsolidationunitpostingtakeplace).

q Whenyouwanttospecifyselecteditemsforthedocumenttype,thenenteran
itemforthedebitandcreditpostings.

q Youneedtousedifferentdocumenttypestodistinguishbetweenmanualand
automaticpostings.Youcanuseidenticalordifferentnumberrangesfor
posting.

q Theaccountassignmenttakesplacebyitemnumberandasdesiredbysub
assignmentpossibilities,whichyoucanspecifyindividually.

q Areversalfunction(andamassreversalfunction)isavailableforsingle
documents
 BALANCECARRYFORWARD

q Atyearendconsolidationbalancesarecarriedforwardtothenext
year.B/SbalancesarecarriedforwardtothemselveswhileP&L
balancesaretransferredtotheUnappropriatedRetainedEarnings
item
q Note:ThereisaCarryForwardBalancesfunctioninFIalso(Tcode:
F.16),whichhasnobearingonthistransaction.Inotherwords,
executingthecarryforwardtransactioninFIdoesnotautomatically
carryforwardbalancesinConsolidation.

q Everymonth,theRetainedEarningsfunction(TCode:CXCL)should
berunforeachconsolidationunit,whichpoststhecurrentmonths
RetainedearningstoitemsREANIB/SandREANII/S

q Attheendoftheyear,whentheBalanceCarryForwardfunctionis
executed,thefigurefromRetainedEarningsgetscarriedforwardto
UnappropriatedRetainedEarningsitemtofacilitateConsolReporting.
 RETAINEDEARNINGS

q Everymonthend,theretainedearningsneedstobecalculatedand
postedtotheCurrentYearRetainedEarningsitemsintheBalance
SheetandIncomeStatementsuchthatbothbalanceindividually.
Theseitemsare:

q RetainedEarningsAnnualNetIncomeBalanceSheet:531200

q RetainedEarningsAnnualNetIncomeI/S:990400

q Thereisnodocumentnumbercreated,ithitsthetotalsdatabase
directly.Anysubsequentpostingsgeneratedautomaticallyby
Consolidationfunctionswouldposttotheseitemsifthereisan
imbalancebetweenB/SandI/Sintheconsolentry.
 POSTINGLEVEL

ThePostingLevelStandardizespostingsintheConsolidationsystem.

ExamplesofdifferentTypeofPostinglevelsareasfollows:

q Space:Financialdatafromrealtimeupdate

q 08:ItemSubstitutionbasedonPostingLevelSpace,00,
and01.

q 23&24:TwosidedConsolidationEntries

q 02,12,22,24:EntriesarevalidforspecificConsolidationGroup
 POSTINGLEVEL

Nongroupdependent Groupdependent
Adjustingentry Divestitureentry

Reporteddata 0001 02

Standardizingentries 10 12

Twosidedelimination
20 22
entries

Groupdependent
30
eliminationentries
 POSTINGANDDOCUMENTTYPES

q PostinginConsolidationLedgeraredifferentiatedbydocumentType

q Eachdocumenttypeisassignmenttoasinglenumberrangefora
particularversion

q Postinglevelsareassignedtodocumenttype

q EachDocumentTypeshouldbeusedforOneTaskOnly
 POSTINGANDDOCUMENTTYPES

DocumentTypes Numberranges
(1) (2)

SpecialFSitems Tasks
(3) (4)

Posting
ECMCT ECMCA

Document
Totalreports
Analysis
 RECLASSIFICATIONS

q Reclassificationsareadjustmententriesbetweenbalancesheetand/or
incomestatementitems.Thatis,thevaluesofthefinancialstatement
(FS)itemsarereclassified

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