Changeover Process for EC-CS (SAP Library - European Monetary Union: Euro (CA-EUR))

Changeover Process for EC-CS

Purpose

You want to change over all or a portion of the data of the Consolidation system to the euro currency.

Prerequisites

Prerequisites in the applications that supply the data

If a company code transfers data to the Consolidation system using the data transfer methods Periodic Extract or Rollup, you must ensure that no errors occurred in the closed fiscal year prior to the central changeover of the company code.

You therefore need to generate all of the extracts and rollups that you require for creating consolidated financial statements in the previous currency, before the central changeover takes place. After the central changeover, no extracts or rollups can be generated in the previous currency.

This same requirement also applies to data transfers to non-SAP consolidation systems.

Prerequisites in the Consolidation application

The generation of the consolidated annual financial statements for the prior fiscal year must be completed.

You need to document the consolidated financial statements for auditing purposes. You have the following options:

You need to print and save the audit trails for the time period required by accounting regulations.
You can copy the required data to a new ledger (using the same ledger currency) that you exclude from the changeover.
Report Writer reports

You generate extracts from the relevant reports, and store them on the database INDX (database GREP, as of Release 4.0). Note that this database is used by multiple applications.

Drilldown reports

You save the relevant reports. These snapshots are not converted during the changeover.

Also bear in mind that the local currencies in this ledger are changed over, although the ledger itself is excluded from the changeover.

The new local currency key (euro) may, in some cases, be dynamically displayed in the report columns. Note that the decimal places for the amounts are determined by the currency key. For example, 1000 Italian lire are displayed as 10 euros.

You cannot use this procedure to save all reports. For example, you cannot save changes in investment or investee equity reports. Report data should not only be saved in electronic form, you should also print out and archive all reports before the changeover.

By creating a client copy, you keep a backup client in which you save all of the data.

The balances must be carried forward from the prior fiscal year to the current fiscal year. The system checks this during preprocessing for the changeover.

Process Flow

As in the central changeover, the entire process of the Consolidation changeover is divided into three fundamental phases:

In the Preparation phase, you make certain settings for the changeover.
In the actual Changeover phase, you change over currencies to euros in the steps Preprocessing, Conversion and Postprocessing.
In the Cleanup phase, you do manual reconciliation and adjustments, which cannot be automatically performed by the system.

You make all of the settings and run all of the programs for the changeover within the Implementation Guide (IMG).

Preparation

You must make the following preparations prior to the changeover in the IMG:

You prepare the changeover package as follows:

You copy package 003 from client 0 to the client in which the changeover is being made.

Note that the package must be copied from client 0 every time a changeover is to be performed.

You specify which currencies the package is to change over.
You specify which ledgers and consolidation units the package is to change over.

You define which financial statement items are to be posted with any differences that arise during reconciliation runs.

Changeover

Preprocessing

You can perform the following checks in IMG before converting the tables:

You check that the prior fiscal year is blocked against postings, that the balances are carried forward, and that the carryforward task is closed.

Program: FICEUR51

You check whether the totals records that were carried forward are consistent in the currencies to be changed over.

Program: FICEUR00.

Conversion

In the IMG, you lock the system and start the conversion, which automatically runs all of the necessary programs. The following list shows the phases and the programs executed in each of the phases:

FILL

Program	Activities of the program
RGCEUR40	Checks which consolidation processing ledgers have currency type 30 (group currency), and changes the currency type to 80 (ledger currency).
FICEUR51	Checks that the prior fiscal year is blocked against postings, that the balances are carried forward in the current year, and that the carryforward task is closed.
FICEUR30	Deletes the financial data and journal entries that have already been entered/posted in the current year, along with the corresponding totals records. Exception: The program does not delete prior-year journal entries that have been posted by the automatic reversal function in subsequent periods to the current fiscal year.
EWUORG3LO_40 EWUORGLO	Loads the tables for controlling the conversion.

GENERATION

Program	Activities of the program
EWUGENEW	Generates the conversion programs for the following tables: ECMCA ECMCT T881 TF164 TF620 TF630 TF635 TF660 TF661

CONVERSION

The tables listed under step 2 are converted by the generated programs.

RECONCILIATION

Program	Activities of the program
FICEUR00	Reconciles the euro values in the totals records affected by the carrying forward of balances.
FICEUR30	Reconstructs the totals records of period 1 from the journal entries resulting from automatic reversals.
FICEUR01	Executes the program FICEUR00 for period 1 of the current year. This reconciles the totals records reconstructed by FICEUR30.

Postprocessing

In the IMG, you start the postprocessing programs. Some of the programs are only required if you use the integration feature in conjunction with the data transfer methods periodic extract and realtime update.

If you use realtime update, you reconcile integrated consolidation data with the data supplied by other applications, and you run a program to process contra items and retained earnings.

Programs: FICEUR20, FICEUR00, and FICCHI00

If you use periodic extract, you create an extract from the consolidation staging ledger for the carryforward period, and update the consolidation processing ledger.

Programs: RFBILA00 and FICMBU00

If you state the appropriation of retained earnings in the income statement, you reconcile Retained Earnings on the Balance Sheet with Retained Earnings on the Income Statement.

Program: FICEUR00

You reconcile the additional financial data with the totals database of Consolidation.

Program: FICEUR10

If you use realtime update, you re-post the FI document entries of the current year.

Program: RGUREC10

You confirm that you have run the postprocessing programs. The system then switches to the Ready phase.

Program: RGCEUR90

Cleanup

A successful changeover and reconciliation in the Consolidation system does not yet guarantee a correct opening balance in euros. In general, you still need to do a Cleanup in the Next Closing.

Result

After the changeover, all of the data changed over by the package exists in euros. Note the following points:

Old annual closings

If you rerun the consolidation functions in test mode for the fiscal years preceding the changeover, most likely you will encounter warning messages or even error messages with program terminations. Even if the programs do not generate any errors, bear in mind that the data for the years preceding the changeover is not reconciled and contains rounding differences.

Example: Rounding a figure in currency translation produces the error Difference in local currency.

New annual closings after the changeover

Postings

You can no longer reverse the documents that were posted in years prior to the changeover. The reversal programs checks whether the entry contains a company or a ledger that was changed over in a year after the document year.

Instead, you can post a document using a reference to the document being reversed and then manually reverse the debit/credit sign in the document.

Currencies shown in EC-EIS

In general, the Executive Information System (EC-EIS) component does not change over any data to euros, but instead collects the data again. The currency key, which optionally can be shown in the EIS reports, comes from the master data of the respective application that supplies the data. Because of this, the EIS reports may show an erroneous currency.

Example: The complete changeover package has been processed, upon which the company currency has been changed to euros. However, the EIS data still stores the currency DEM.