Chapter 8
Introduction Aspects
A number of customers have been using a pilot version of EC-CS with
restricted functions based on Release 3.0. EC-CS will be officially released
with Release 4.0.
FI-LC will continue to be available in parallel with functions that remain
essentially unchanged with respect to Release 3.0.
Depending on the application area, new customers will therefore have a
choice with respect to Release 4.0 as described below.
Current FI-LC users will also have additional options.
Decision Between FI-LC and EC-CS for the
‘Newcomer’
EC-CS offers advantages that clearly recommend it for any applications
beyond ‘statutory consolidation.’ Regarding price, however, FI-LC forms
part of the FI component. Only additional users must be ‘acquired’ while
EC-CS forms part of the EC price list component and may have to be
purchased separately.
Essentially, both components provide the consolidation functions required
for statutory consolidation. Of course, EC-CS can offer fewer customer and
practical experiences, although the experiences gained in the FI-LC projects
were applied to the new EC-CS development.
FI-LC to EC-CS Transition
FI-LC customers who wish to expand their consolidation application to
include the topics of internal group reporting or who are interested in the
expanded EC-CS functions need to develop a transition strategy.
The plan is to make the FI-LC functions fully reproducible in EC-CS with the
release subsequent to Release 4.0 and to offer migration programs as
standard. Since the two ‘systems’ work with completely separate data, they
can also be used in parallel to provide different ‘views.’ Due to the use of
cross-application tools such as drilldown reporting, planning processor, and
so forth, it is not possible to provide downward compatibility of EC-CS with
a Release 3.0 system.
8-1
8
Introduction Aspects
Decision for the ‘Prospective Customer’
Consolidation software does not necessarily have to be transaction-integrated
with the operational accounting applications. It can also work in periodic
linkage. The question of deciding between systems of different suppliers arises
for SAP customers as well. The essential arguments in favor of integration
from the SAP point of view are discussed in Chapter 3. They are further
supported by the descriptions of functions and capabilities provided in
Chapter 6.
EC-CS Function List
Function
Sub-function
Dimensions
Parallel applications
Authorization check
Cross-view objects
FI integration
CO-PCA integration
CO-PA integration∗
Master data
Uploading from PC-Files
Synchronization with operational
SAP organizational units
Graphical maintenance of
hierarchies
User-definable required/optional
fields
Time/version dependent data
Flexible contact management∗
User field expansion∗
∗
8-2
probably after release 4.0
Assessment
8
Introduction Aspects
Function
Sub-function
Assessment
Data regarding inclusion type in
consolidated entity
Chart of accounts
Parallel charts of accounts
Fixed additional account
assignment transaction type,
partner, transaction currency
Expandable additional fields in
totals record∗
Comments∗
‘From’ line items
Special data for consolidation of
investments
Special data for elimination of
interunit profit and loss∗
Creating with application
inheritance∗
Delivered standard charts of
accounts
Data reporting
Financial calendar (sender)
Deadline monitoring∗
Report data reconciliation between
sender-recipient
Distribution of the group chart of
accounts∗ (ALE)
Direct manual entry
Uniform planning processor
Layout painter
∗
probably after release 4.0
8-3
8
Introduction Aspects
Function
Sub-function
Documentation through entry
documents∗
Delivery of standard data entry
layouts
External system
interface
Flexible upload
Conversion of field contents
Item-group-related data collection
method∗
User-friendly error handling∗
Decentralized
PC entry
Decentralized master data
maintenance, additional
Entry in MS-Access with data entry
forms
Entry in MS-Excel
‘From’ line items
Comments∗
Parallel entry of standardized
values
PC file import
Validation checks
Currency translation
Reporting in Access
Reporting in Excel
(against Access table)
∗
8-4
probably after release 4.0
Assessment
8
Introduction Aspects
Function
Sub-function
Assessment
Data export file
Data export RFC∗
Multiple languages
Authorization checks
May be used in parallel with∗
EC-EIS, EC-BP
Monitoring
Report status display
Reporting method R/3 real-time
Reporting method R/3 periodic
extract
Reporting method R/3 ALE
Reporting method R/2 PC file
Reporting method MS Access file
Reporting method MS Access RFC
Reporting method flexible
uploading PC file
Reporting method flexible
uploading RFC (BAPI) ∗
Corrections directly from error log∗
Corrections of entry files in editor∗
Statistical information regarding
reporting scope∗
Delete function
Copy function
∗
probably after release 4.0
8-5
8
Introduction Aspects
Function
Sub-function
Validation check
Account balance
Data entry form balance
Validation rule groups for
consolidation units
Document line validation
Full document validation
Cross-dimension validation
Item formulas with additional
account assignments
Item formulas with period
comparison
Validation result error/warning
Data correction from error log
Correction mail to decentralized
accounting staff members∗
Validation points local,
standardized, group values
Postings
Document types:
manual/automatic
Valuations: consolidation unit, pair
of units, group
Parallel currency: transaction
currency, local currency, group
currency
Item group validation by document
types
Automatic document number
assignment
∗
8-6
probably after release 4.0
Assessment
8
Introduction Aspects
Function
Sub-function
Assessment
Zero balance check (optional)
Automatic posting of adjustments
to net income for the
period/retained earnings
Automatic posting of deferred
taxes
Automatic offset posting across
units
Automatic reversal of posting in
following period
Totals report with document type
columns
Sample documents∗
Reversal with document number
reference
Flexible mass reversal
Automatic deletion with repeat
consolidation
Optional posting without saving
document
Flexible journal entry report
Currency translation
Exchange rate indicator/currency
translation key per item group
Currency translation key –
standard exchange rates
Currency translation key – period
exchange rates
∗
probably after release 4.0
8-7
8
Introduction Aspects
Function
Sub-function
Currency translation key – historic
based on acquisition year∗
Currency translation key – historic
with weighted exchange rate∗
Currency translation key – historic
based on changes in investment
and investee equity
Currency translation key - based on
transaction currency
Currency translation key – transfer
of translated values
Additional user logic
Use of central SAP exchange rate
table
Analysis of translation differences
by item groups
Rounding method after translation
Translation differences in the asset
history sheet
Local currency translation in the
event of currency reform
Interunit eliminations
Assigned item sets
Differences, separate by currency
and other
One-sided partner report
Difference recipient strategies
Tolerance amounts for automatic
posting
∗
8-8
probably after release 4.0
Assessment
8
Introduction Aspects
Function
Sub-function
Assessment
Interactive reconciliation log
Journal entry reconciliation
(FI documents)
Treatment of differences –
mail linkage
Treatment of differences –
standardizing entry
Treatment of differences –
comment entry
Elimination without posting
documents
Elimination of
IC profit/loss in
inventory∗
Stock values by product groups
Delivery costs and quantities
Cost of goods manufactured or
percentages by group/customer
Deferred taxes on adjustment to net
income for the period/retained
earnings
MM integration
CO-PA integration
Elimination of
IC profit/loss in
transferred assets∗
Asset retirement date and
depreciation method data
Correction of asset history sheet
and income statement
∗
probably after release 4.0
8-9
8
Introduction Aspects
Function
Sub-function
Correction of asset history sheet for
retirement/acquisition
Correction of depreciation in
subsequent years
Correction of method change,
optional
AM integration
Reclassification
Flexible complex selection rules
Flexible complex substitution rules
Consolidation of
investments
External and internal views
Statutory bodies EU, US-GAAP,
IAS
Purchase method consolidation,
pooling of interest
Proportional consolidation∗
Equity consolidation
Amortizing, eliminating differences
Eliminating and amortizing hidden
reserves
Minority shares according to EU
and US-GAAP
Correcting appropriation of
retained earnings in balance sheet
and income statement
Method assignment, manual and
automatic
∗
8-10
probably after release 4.0
Assessment
8
Introduction Aspects
Function
Sub-function
Assessment
Multiple method assignment in
multilevel group
Automatic transaction –
acquisition, step acquisition
Automatic transaction –
increase/decrease in capitalization
Automatic transaction – investment
depreciation/amortization
Automatic transaction – subsequent
consolidation with
depreciation/amortization
Simulating posting based on
transaction data
Default posting log with interaction
Automatic posting from pushbutton consolidation
Reporting historic trends of initial
data
Standard consolidation logic in
metalanguage∗
Additional user logic in
metalanguage∗
Push-button
consolidation
Freely definable task groups
Capable of bundling: currency
translation
Capable of bundling: validation
check
∗
probably after release 4.0
8-11
8
Introduction Aspects
Function
Sub-function
Capable of bundling: Interunit
elimination
Capable of bundling: elimination of
IC profit/loss in inventoryIhnen∗
Capable of bundling: elimination of
IC profit/loss in transferred assets∗
Capable of bundling:
reclassification
Capable of bundling: consolidation
of investments
Capable of bundling: step
consolidation, rollup
Capable of bundling: validation
check of group values
Capable of bundling: printing of
report package (also separately) ∗
Screen display with various start
functions
Processing log archiving∗
Reversal functions from screen
Change in status resulting from
changes in financial reporting data
Change in status resulting from
changes in customizing ∗
Simulations
Versions
Variable data categories (e.g. actual,
plan, etc.)
Variable simulation versions,
combinable
∗
8-12
probably after release 4.0
Assessment
8
Introduction Aspects
Function
Sub-function
Assessment
Delta versions per consolidation
step
Versions for financial reporting
data
Versions for method assignments
Versions for forming consolidation
groups
Restatement, automatic and with
reconsolidation
Reporting
Delivered standard reporting
User-specific report trees/menus
Report portfolio with data and
definition reports
Highlighting function, color coding
Exception reporting/top n
reporting
Mailing report with R/Mail
Printing report portfolio with MS
Word
Standard report painter across SAP
accounting system
‘Forms’ – ready-mades for user
reports
Drilldown in characteristics cube
Drilldown through report interface
Drilldown in operational SAP
applications
Drilldown to SAP applications
from other systems
8-13
8
Introduction Aspects
Function
Sub-function
Using external hierarchies
List display function: Sorting,
ranking
List display function: Filtering,
setting conditions
List display function: Graphics
(business, portfolio)
List display function: resetting
threshold values
List display function: comments
and mail
List display function: Excel
downloading (Listviewer)
List display function: editing layout
List display function:
data mining∗
Interface: Excel with active R3 link
Interface: inSight with active
drilldown link
Integration and data transfer to ECEIS
Group information system Intranet∗
8-14
Assessment