SAP- Enterprise Controlling (EC) Notes

Module Functions:
EC-CS Enterprise controlling - Consolidations: The module where consolidations and elimination occur for both a legal entity (Company Code) and a management area (Profit Center). Consolidation gives you a reconciled view of your groups financial data and lets you create the reports required by corporate law (by group, company or business areas) as well as reports which reflect your company’s internal management structure (by profit center or region). This is possible due to powerful consolidation functions built on top of flexible structures. The raw data can be transferred via interfaces with FI-GL (General Ledger), FI-AA (asset accounting), MM (Materials Management, SD (Sales and Distribution) and EC-PCA. You can also analyze the results of the consolidation immediately in EC-EIS. DATA TYPES - i.e. CS Breakdown categories

• Company & Trading Partner controlled by FI are required to generate eliminations. Note: FI-GL/AR/AP line items always have Company in Document Header. Trading partner is in document line item where relevant

• Profit Centers & Partner Profit Centers controlled by PCA are needed to generate eliminations for Management Consolidation by line of business

• Consolidation Units and Partner Units controlled by CS are used to generate eliminations for various consolidations. Transaction data from CS-PCA updates Consolidation units and if appropriate stores the data by partner Unit.

• Transaction types controlled by FI are used for reporting of consolidated balance sheet flows in CS. Transaction Types are used by the Fixed Asset module to distinguish between beginning balance, additions, transfers, disposals and ending balances. Separate types are usefull to distinguish movements in equity holdings for financial investments.

• Functional Areas controlled by CO are used for reporting consolidated P&L Statements. Functional Areas combine accounts but distinguish balances by function (e.g. selling expenses, research & development costs etc.)
o FI-AA Assets Module is the primary user of Transaction Types. Transactions made in FI-AA are stored with a Transaction Type which identifies whether it is an addition or disposal, etc. These Asset Transaction Types can be mapped into consolidation transaction types.
o Data passing from PCA to CS populates a single field with either a Transaction type for selected Balance Sheet accounts or a Functional Area for selected P&L accounts.
o Transaction types and Functional Areas are for Reporting.

EC-PCA Profit Center Accounting - Profit center accounting forms an interface between the operative controlling (CO) applications and the Enterprise Controlling (EC) module It reflects the actual and plan postings from operative controlling and settlements components with which it is in targeted in real-time. It then summarizes this data according to profit centers, which reflect the internal structure of areas of responsibility within the company code

• Each profit center is assigned to one controlling area

• Reason for Profit Centers
1. to analyze areas of responsibility
2. to delegate responsibility to different decentralized units

• Profit Centers can be set up
1. Product (product lines, divisions)
2. Geographical factors (regions, sites)
3. Function (production, sales)

• Profit Centers are organized into an organizational hierarchy in which responsibility and incentive structures can be defined. Profit Center Hierarchy:
o Node one
(a) Profit Center one
o Node two
• Profit Center two
(a). Revenue
(b). Costs

• Profit Center three

• Planning can be done on a PCA

• In EC-PCA, the profit center is the lowest level at which you measure financial results

• Since CS-PCA is only complete at the end of the month, CS-PCA data in only rolled up to CS via FI-SL (Special Ledger) monthly.

Accounting Data Flows:
1. Real time data flows
2. Periodic data flows

EC-CS - Enterprise Controlling Consolidations
• Manual Entries
• EC-PCA - Enterprise Controlling Profit center accounting
o FI Balance Sheet Items
(1). SD, MM, PP, FI Journal Entries

FI Period End Update - Balance Sheet Sub Ledgers
- SD, MM, PP, FI Journal Entries

CO-OH
o FI P&L
- SD, MM, PP, FI Journal Entries
CO-Allocations
CO-PA
o FI P&L External Revenue and Cost of Sales
- SD, MM, PP, FI Journal Entries

By Rajagopalan M