asug 2203 allison
TRANSCRIPT
Brenda Hagen, Allison TransmissionRajkishore Una, GyanSys Inc.
Managing Financial Consolidation in ECCS
[ 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
[ 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
[ 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.
[ 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
[ 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
[ 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
[ Drivers for Implementation
• Divestitureo Owned by GM and sold to Private Equity Groups in
Aug’07o SAP implementation geared towards to support
business requirements of a division of a company not as separate financial entity
o Consolidation was done at Corporate Level• Current State
o Manual and Excel based solutionso Time-consuming during multiple iterationso Resource Risk o Audit Risks o Not Transparent
[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
[ Project Scope
• Phase Io Standalone ECCSo Flexible File upload for all entitieso New Group COAo Legal Consolidationo Allows focus of attention on core consolidation functions
first E.g. exchange rate translation, elimination, adjustment entries,
validation rules etc.• Phase II
o Real-time Update from FI o Assigning new Group COA to Operational COAo Requires “Trading Partner” in all inter-company postingso Additional validations/substitutions rules
[ Team Structure
• Full Time: o 1 Financial Accountant o 1 ECCS Functional Consultant
• Part-Timeo Business Process Ownero IT Project Managero ABAP Resource
[ Future State:
• Prepareo 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)
[ Future State:
• Collect (Data Monitor)o Method of Update
Flexible file upload (Phase I) Real-time update from FI (Phase II) Periodic Extract Roll-up through SPL
o Adjustment Entries Manual Automatic Re-class
[ Future State:
• Collect (Data Monitor)o 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
[ Future State:
• Collect (Data Monitor)o Retained Earnings
Automatic calculation of current year retained earnings at every consolidation cycle
o 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
[ Future State:
• Consolidate (Consolidation Monitor)o 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
o Validation Similar checks in Group Currency
[ Future State:
• Consolidate (Consolidation Monitor)o Adjustment
Similar entries in Group currencyo Consolidation of Investment (Out-of Scope)
Required in case of Minority Interest calculation Overkill in case of 100% of ownership Time Consuming and Complex
[ Future State:
• Analysiso Database Listings report (CX34) is the most
powerful reporto Standard delivered reports are not sufficient o Developed a custom ALV report with comparative
analysiso BW standard delivered extractors are planned to
be leveraged in the future
[ Future State:
• Integration with other moduleso ECCS Consolidation Unit maps to FI Company not FI
Company codeo FI Group COA maps to ECCS FS Items hierarchyo Custom Characteristics can be derived automatically
without any enhancements – e.g. Segment, Functional Area, Plant etc.
o Requires FI Trading partner as a basis for elimination (cross-company postings, inter-company Stock Transfer)
o Simultaneous postings in ECCS, FI and sub-ledger document and drill-down capability
o Method of entry can be changed from Flexible Upload to real-time update as Companies go-live in SAP
[ Implementation Tips :
• Help file: http://help.sap.com/printdocu/core/Print46c/en/data/pdf/ECCS/ECCS.pdf
• Custom characteristics can not be transported. o OSS Note: 402968
• All master data are transportable• Data can be deleted if required (CXDL)
o Test system only• Upload file formats (Flexible !!!!) are easily
configurable
[ 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
[ 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 !!!!!)
[ Speaker Contact Information
• Brenda Hageno Allison Transmission, Manager of Accounting
E-mail: [email protected]
• Raj Unao GyanSys Inc., Senior Solution Architect
E-mail: [email protected]
• Please visit GyanSys Booth 484 for more details
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]• Thank you for participating.
SESSION CODE: 2203
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