Post on 28-Apr-2015
description
] Brenda Hagen, Allison Transmission
Rajkishore Una, GyanSys Inc.
Managing Financial Consolidation in ECCS
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Agenda
Introduction
About Allison Transmission
About GyanSys
Allison SAP System Landscape
Drivers for Implementation
Why Allison chose ECCS vs. Others
Project Scope
Team Structure
Future State
Integration with other modules
Implementation Tips
Business Benefits
Key Learning
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Abstract
Description: Discover how Allison Transmission is planning to implement the enterprise controlling-consolidation function in SAP ECCS for financial consolidation. This session covers the solution's functionality, including specific constraints and lessons learned in meeting the reporting requirements of a group that comprises multiple diverse operating entities from various global regions.
Key Learning Points: * Facilitating an auditable business process * Uniform data collection and warehousing * Platform for efficient and accurate reporting
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About Allison Transmission
The world leader in the design, manufacture and
sales of commercial-duty automatic transmissions
for on-highway trucks and buses, off-highway
equipment and military vehicles.
The company holds an 80% market share of all
medium- and heavy-duty commercial fully
automatic transmissions produced.
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About Allison Transmission
Founded in 1915 by James Allison
Headquartered in Indianapolis
Five international regional offices: The Netherlands, Japan,
China, Singapore, and Brazil.
Presence in more than 80 countries, which includes over
1,500 distributors and dealers.
Workforce of over 4,000 salaried and hourly employees.
Owned by GM until August 2007 when sold to two private
equity firms: Onex Corporation and Caryle Group
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About GyanSys
Head-quartered in Indianapolis since 2001
Provides cost effective innovative solutions using Onshore,
Offshore and Near-shore delivery models
Specializes in FSCM, PLM, CRM, SCM, HCM, SRM and other
business suites on BI & Portal
Extensive experience Project Management, Change
Management and Business Process Reengineering
Ongoing Partnership with SAP on Product testing and
Education
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Allison System Landscape
Implemented FI (GL, AR, AP, SPL), CO (CCA, PCA, CO-PA, IO), PS, SD, MM, WM, PP in 2001
Upgraded to ECC 6.0 from 4.6C in Dec 07
Sandbox, Development, Quality & Production systems
One FI company is live in SAP
Currently implementing FI-AM, HCM, Unicode upgrade, Portal, BI and rolling out SAP to international affiliates
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Drivers for Implementation
Divestiture
Owned by GM and sold to Private Equity Groups in Aug’07
SAP implementation geared towards to support business requirements of a division of a company not as separate financial entity
Consolidation was done at Corporate Level
Current State
Manual and Excel based solutions
Time-consuming during multiple iterations
Resource Risk
Audit Risks
Not Transparent
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Why Allison chose ECCS over Others
BW was on 3.1 and the process of being upgraded
Rapid/Quick implementation
ECCS is stable and well understood
Simpler business requirements and for Actual only
Real-time update from FI/CO
BI-BCS/OutlookSoft requires ECC integration besides additional licensing cost
Hyperion requires interface and extra system resource requirements
New tools will have ongoing support implication
Lower Implementation cost since team size is small
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Project Scope
Phase I
Standalone ECCS
Flexible File upload for all entities
New Group COA
Legal Consolidation
Allows focus of attention on core consolidation functions first E.g. exchange rate translation, elimination, adjustment entries,
validation rules etc.
Phase II
Real-time Update from FI
Assigning new Group COA to Operational COA
Requires “Trading Partner” in all inter-company postings
Additional validations/substitutions rules
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Team Structure
Full Time:
1 Financial Accountant
1 ECCS Functional Consultant
Part-Time
Business Process Owner
IT Project Manager
ABAP Resource
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Future State:
Prepare
Master Data
Consolidation Groups Hierarchy
Financial Items Hierarchy
Additional Sub-Items (e.g. Functional Area)
Additional Characteristics (e.g. Segment)
Break-down Categories (e.g. Trading Partner)
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Future State:
Collect (Data Monitor)
Method of Update
Flexible file upload (Phase I)
Real-time update from FI (Phase II)
Periodic Extract
Roll-up through SPL
Adjustment Entries
Manual
Automatic Re-class
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Future State:
Collect (Data Monitor)
Currency Translations
Unique exchange rates for B/S (month-end) and IS
(average)
US FAS52 compliant (e.g. Equity at historical rate)
Different than FI revaluation
Same central exchange rate table in SAP (OB08)
Finite control over each FS Item being translated
Leverage Versions for different types of translations
for other GAAP requirements
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Future State:
Collect (Data Monitor)
Retained Earnings
Automatic calculation of current year retained earnings at every consolidation cycle
Validation
Data integrity checks
TB (BS & IS) must be equal to zero
Assets = Liabilities + Shareholder’s Equity
Avoid errors in case of Flex-file upload
Sense checks
Any other business rules
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Future State:
Consolidate (Consolidation Monitor)
Inter-unit elimination
Can be done for both BS (I/C AR and AP) and IS (I/C
Revenue & COGS)
Multiple Steps within each method
Control Mechanism in case of differences
Task can be performed multiple times in test mode
Validation
Similar checks in Group Currency
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Future State:
Consolidate (Consolidation Monitor)
Adjustment
Similar entries in Group currency
Consolidation of Investment (Out-of Scope)
Required in case of Minority Interest calculation
Overkill in case of 100% of ownership
Time Consuming and Complex
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Future State:
Analysis
Database Listings report (CX34) is the most
powerful report
Standard delivered reports are not sufficient
Developed a custom ALV report with comparative
analysis
BW standard delivered extractors are planned to be
leveraged in the future
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Future State:
Integration with other modules
ECCS Consolidation Unit maps to FI Company not FI Company code
FI Group COA maps to ECCS FS Items hierarchy
Custom Characteristics can be derived automatically without any enhancements – e.g. Segment, Functional Area, Plant etc.
Requires FI Trading partner as a basis for elimination (cross-company postings, inter-company Stock Transfer)
Simultaneous postings in ECCS, FI and sub-ledger document and drill-down capability
Method of entry can be changed from Flexible Upload to real-time update as Companies go-live in SAP
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Implementation Tips :
Help file:
http://help.sap.com/printdocu/core/Print46c/en/data/
pdf/ECCS/ECCS.pdf
Custom characteristics can not be transported.
OSS Note: 402968
All master data are transportable
Data can be deleted if required (CXDL)
Test system only
Upload file formats (Flexible !!!!) are easily
configurable
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Benefits :
Graphical with Status Icons
Ability to upload multiple times
Lock vs. Un-lock..
Restrict the users to specific entity
Control environment
Consistent manner
Allows different methods for different entities
R/3 and non-SAP company codes
Data integrity and Accounting Sense Checks
Identify differences between I/C account and specify on how to treat them (Alert and Control mechanism)
Ability to check proper inter-company posting at the time of origination
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Key Learning:
Define the internal business process first before
system implementation
Dedicated full-time business resource
Manageable scope and team focus
Implement in Phases (Walk before Run !!!!!)
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Speaker Contact Information
Brenda Hagen
Allison Transmission, Manager of Accounting
E-mail: brenda.hagen@allisontransmission.com
Raj Una
GyanSys Inc., Senior Solution Architect
E-mail: raj.una@gyansys.com
Please visit GyanSys Booth 484 for more details
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[
] Thank you for participating.
SESSION CODE:
2203
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