Tata Motors BluePrint - ECCS Module

TATA MOTORS
ECCS Implementation for Tata Motors & its Subsidiaries

Reporting for US GAAP & Indian GAAP
Business Blue Print
Signatories:
Name Signature
Mrs.Smriti Goyal BPO-TML(Corp fin)
Mr.Vikas Kabra BPO-TML(Corp fin)
Anil.S.Shembekar Project Manager-TTL
N.N.Vishwanathan Project Manager-TML
Approved by:
Mr.P Y Gurav Mr.Seshadri Krishnan

Project Sponsor-TML Program Manager TTL
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TABLE OF CONTENTS
1.1 Introduction
1.2 Existing Business Processes (AS-IS) & expectations
1.3 Business Process Analysis
1.3.1 Overview
1.3.2 Process Flow
1.3.2.1a: Conceptual Elements
1.3.2.1b: Organisation structure
1.3.2.1c: Data Flow in FI
1.3.2.1d: Validation in FI
1.3.2.1e: Reports in FI
1.3.2.1f: Real time Update in ECCS
1.3.2.1g: Overview flow diagram
1.3.2.2: Processes & Activities
1.3.2.2a: Manual Entries in FI.
1.3.2.2b: EC-CS Process
1.3.2.2b.i Data Monitor
1.3.2.2b.ii Consolidation Monitor
1.3.2.2b.iii Reports
1.3.3 Detailed design document
1.3.3.1 Organisation structure
1.3.3.2 Data in FI
1.3.3.3 Different fiscal years
1.3.3.4 Periodicity
1.3.3.5 FI Closure
1.3.3.6 Data Input
1.3.3.7 Currency translation
1.3.3.8 Consolidation Chart of accounts
1.3.3.8.a FS item
1.3.3.8.b FS item Hierarchy
1.3.3.9 Data Monitor
1.3.3.9.1 Transfer of Periodic Profit/loss to retained earnings
1.3.3.9.2 Balance Carry forward
1.3.3.10 Consolidation Monitor
1.3.3.10.a Inter company Eliminations
1.3.3.10.a.i Elimination of Receivables/Payables
1.3.3.10.a.ii Elimination of Inter Company Loans
1.3.3.10.a.iii Elimination of Sales/Purchase
1.3.3.10.a.iv Elimination of Revenue/Expense
1.3.3.10.a.v Inventory Mark-up
1.3.3.10.a.vi Profit on sale of Assets and Depreciation thereon
1.3.3.10.b Consolidation of Investments
1.3.3.10.c Reclassification
1.3.3.10.d Adjustment Entries specific to US GAAP
1.3.3.10.e First Consolidation

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1.3.3.10.f Reports
1.3.4 Fit / Gap Analysis
1.3.5 Business Issues
1.3.6 Security
1.3.7 Authorization
1.3.8 Change Management
1.3.8.1 Data from Source systems
1.3.8.2 Importance & Responsibilities of the Central Cell

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1.1 Introduction
Top Management initiative on the systematic and methodical approach for consolidation with
minimum human intervention in passing entries, Validation of data, extraction of Financial Reports
from the SAP system.
 In view of NYSE listing, we should be preparing the US GAAP formatted consolidated financials
on a monthly basis
 All companies to have a uniform chart of accounts
 USGAAP specific Accounts and the adjustment to be made available for audit trail
 Consolidation of Accounts on for Indian & US GAAP
 Entries by Individual companies on Monthly basis both for Indian & US GAAP
 Automatic / Manual elimination of inter company transactions

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1.2 Existing Business Processes (AS-IS) & expectations
 TATA Motors is currently using SAP R/3 3.1 H Financial Accounting for consolidating with their
subsidiaries.
 The Trial Balance from the Various Subsidiaries is uploaded in FI in SAP R/3. Subsequently
manual entries are passed in FI for the purpose of
 Adjustment entries required after receipt of Trial balance from subsidiaries
 Adjustment entries for the Inter Company transactions relating to Sales and Purchases
 Adjustment entries for the Inter Company Elimination of Investments.
 Adjustment entries pertaining to Minority Interest.
 Adjustment entries for eliminating Inter Company Profit on Inventory
 Adjustment entries for eliminating Inter Company Transfer of Assets.
 Two different sets of entries are passed for USGAAP and Indian Consolidation.
Expectations
 Complete the Consolidation within 5 days from the date of availability of data for consolidation.
 To do USGAAP reporting and reporting to NYSE in time.
 Inter company transactions and eliminations to be carried out in SAP R/3 and tracking of the
changes and audit trail to exist in the system.
 Minimum user interference in the process of doing the consolidation.
 By validating the data in the EC-CS, Internal Control exists in the SAP R/3 system.
 Consolidation for US GAAP and Indian GAAP arrived by using the same data without data
redundancy.
 By Using ALE between systems, the manual upload of data could be avoided and data integrity
is achieved from the source of data to the consolidation system.
 Control over the GL Account opening and modification by the subsidiary is controlled centrally.
List of Requirement documents:
Document
number Description
CSTMLR001 Organization Structure with % Holding under both GAAP
CSTMLR002 FI
CSTMLR003 Data Input from Subsidiaries
CSTMLR004 Cons. COA
CSTMLR005 Currency Translation in case of foreign Companies
CSTMLR006 Treatment for Different Fiscal year
CSTMLR007 Periodicity
CSTMLR008 FI Closure
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CSTMLR009 Receivable/Payable Elimination
CSTMLR010 Inter Company Loans Elimination
CSTMLR011 Sales/Purchase Elimination
CSTMLR012 Revenue/Expense Elimination
CSTMLR013 Inventory Markup Elimination
CSTMLR014 Elimination of Profit on sale of Assets and Depreciation thereon
Investment Consolidation - Associate as well as Subsidiary for
CSTMLR015 both GAAPs
CSTMLR016 Reclassification
CSTMLR017 Adjustment Entries specific to US GAAP
CSTMLR018 Other Consolidation Entries, if any
CSTMLR019 First Consolidation into ECCS System
CSTMLR020 Reporting Requirements - Legal & Management
CSTMLR021 Validation into ECCS System
CSTMLR022 Document type
Detailed requirement documents are attached

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1.3 Business Process Analysis
1. Overview
2. Process Flow
3. Detailed Design
4. Fit / GAP Analysis
5. Business issues
6. Security:
7. Authorization
8. Change Management
1.3.1 Overview
EC-CS Consolidation
This application component features consolidation functions you can use for external (statutory)
rendering of accounts as well as internal (management) reporting.
To do this, this component offers different consolidation types that are based on user-definable
organizational units. Specifically, you can perform consolidation for companies, divisions, business
areas or profit centers.
In the component, the consolidation types are represented by dimensions. For example, you can
define one dimension for company consolidations and, at the same time, another dimension for profit
center consolidations. Each dimension lets you process flexible and, when needed, parallel hierarchies
of consolidation units and consolidation groups:
 Flexible hierarchies means that you can use any number of hierarchy levels, define these
hierarchies in variable depths, and maintain these hierarchies easily and clearly.
 Parallel hierarchies means that you use different criteria for structuring the consolidation
units of each type of consolidation (e.g., business area consolidation). For example, one
hierarchy could have a structure of consolidation units as companies, another hierarchy
could have a structure with business segments.
You can use versions to maintain different categories of data, such as actual data, prognostic data or
budget data
 Note: refer Project Charter for more details on overview

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Integration
The application features integration functions with different SAP transaction modules that provide data
for consolidation; this is available for the consolidation types company consolidation, business area
consolidation and profit center consolidation. The integration functions enable the following:
 Generation of the organizational units of consolidation, based on the units in the transaction
system.
There must be a clearly defined relationship between the organizational units of the transaction
system and those of the consolidation system before an automatic transfer of data can take
place.
 Automated collection of transaction data.
Several data transfer methods are available. A prerequisite for the collection of transaction data
is that the data carried in local charts of accounts be converted for the aggregated chart of
accounts in Consolidation. In some consolidation scenarios the transaction data can even be
collected into different consolidation charts of accounts.
Features
 Different methods are available for transferring the transaction data to the Consolidation
system. Which method you use depends on your consolidation scenario.
 You can post manual entries, for example to standardize the reported data to the group's
methods of balance sheet valuations.
 You can use validations to check the consistency of the reported or standardized financial data.
 You can translate the reported financial data into the currency of the consolidation group.
 You can automatically execute the following consolidation tasks:
- Inter-unit eliminations (elimination of payables and receivables, elimination of revenue and
expense, elimination of investment income)
- Elimination of inter-unit profit/loss in transferred inventory
- Consolidation of investments
- Reclassifications
The automated postings are controlled by the task settings you previously define in
Customizing.

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The logic of the consolidation tasks remains the same for all types of consolidation. For
example, the system uses the same logic when executing inter-unit eliminations for either
company consolidations or business area consolidations.
 You can generate reports using the standard tools in drilldown reporting, and the Report Painter
or Report Writer of R/3. There are also existing reports for listing master data, additional
financial data and the control parameters.
The entire consolidation process can be broken down into two areas: a) the collection and preparation
of reported financial data, and b) the consolidation of the financial data. Both of these areas have their
respective monitor, which you can use to maintain and execute all of the individual tasks.
Constraints
The automated execution of the elimination of IU profit/loss in transferred assets is not available in this
release.
Recommendations
By analysing the requirement document and the AS-IS, TML needs to consolidate it’s financials with
Subsidiaries for the purpose of legal reporting as per Indian GAAP and US GAAP.
To accomplish these, it is recommended that TML uses EC-CS Module and have a Separate
Consolidation Server, due to the data volume and security.
The Conceptual design document, specifying the Fit / GAP analysis been prepared and
attached for reference.

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1.3.2 Process Flow
The data from the subsidiaries are collected either through Excel or direct upload and then
uploaded in FI through the program. The data will be validated for Completeness and documents are
saved in the respective company codes.
1. Overview
a. Conceptual Elements
b. Organisation structures
c. Data flow in FI
d. Validation in FI
e. Reports in FI
f. Real time update in EC-CS
g. Overview Flow Diagram
2. Processes & Activities:

a. FI:
 Manual Entries in FI.
b. EC-CS
i. Data Monitor
ii. Consolidation Monitor
iii. Reports
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1.3.2.1a: Conceptual Elements
 Company
 Company Code
 Chart of accounts in FI
 Dimensions
 Versions
 Currencies
 Consolidation Ledger
 Consolidation Unit
 Consolidation Group
 Consolidation Group Hierarchy
 Consolidation Chart of accounts
 FS Items
 Breakdown Categories
 Sub item categories & Sub Items
 FS item Hierarchy
 Data Monitor
 Consolidation Monitor
Company
Organizational unit , for which individual financial statements can be drawn up according to the
relevant commercial law. A company can consist of one or more company codes. A company has also
to be defined so that it is available as a trading Partner.
In TML Scenario a company has been defined in FI to correspond to a consolidation unit & Trading
Partner in ECCS.
Company Code
The smallest organizational unit , for which a complete self-contained set of accounts can be drawn up
for purposes of external reporting.
In TML Scenario a company code has been defined in FI to correspond to a consolidation unit.

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Chart of accounts in FI
A classification scheme consisting of a group of general ledger (G/L) accounts.

A chart of accounts provides a framework for the recording of values to ensure an orderly
rendering of accounting data.
For each G/L account, the chart of accounts contains the account number, the account name,
and technical information.
A chart of accounts must be assigned to each company code. This chart of accounts is the
operative chart of accounts and is used in financial accounting.
Chart of accounts is linked to the Consolidation Chart of accounts through the group chart of
accounts.
In TML Scenario Operative chart of accounts have been defined per company code for all
companies.
These Charts of accounts are identical to the operative chart of accounts in the source system of
individual companies
Group chart of accounts has been defined & is identical to the consolidation chart of accounts.
The operative chart of account has been linked to the consolidation chart of accounts through the
group chart of accounts.
Dimensions
A specific characteristic , in group reporting.

The dimension is one of the "pillars" of the architecture of SAP Consolidation. The only key field
the dimension is subordinate to (dependent on) is R/3's client. Conversely, much of the master
data and control data is subordinate to the dimension. This means that this type of data is
delimited to the dimension, in which it is created.
A specific dimension can represent one or more consolidation types, such as company
consolidation, business area consolidation, or profit center consolidation.
Each dimension has its own organizational units and control parameters. However, all
dimensions share the same consolidation charts of accounts and consolidation versions. Multiple
dimensions can be analyzed together by using validations and reports.
In TML Scenario the Dimension TM for company Consolidation has been defined.

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Versions
Versions make it possible to consolidate financial data according to different criteria. Managers
frequently require financial data to be prepared and consolidated according to different criteria or
using different valuation approaches.
Versions help:
 To Perform simulations for your consolidated data, such as Simulating the effects of various
exchange rates on your consolidated financial statements
 In Simulating the effect of the divestiture of a consolidation unit on your consolidated financial
statements
 To Prepare restatements — that is, apply the current "settings" to data of a previous period
For example, if you changed the consolidation hierarchy, you could report the data of the
previous fiscal year in the new hierarchy as a restatement.
In simple cases, you can perform such restatements using the functions of reporting without
using a new version: You could effect the restatement using a drilldown report if the report does
not include postings that are dependent on the consolidation group.
 . Prepare different consolidated financial statements in parallel in accordance with different

statutory accounting requirements, such as according to Different GAAPS, IAS, or HGB
(German accounting law).
These can then be compared using current reporting tools.
In TML Scenario Versions have been defined to store data separately as 100 for Indian GAAP &
900 for US GAAP reporting and Impact analysis.
Currencies
The following currencies are defined:

 All the currencies in which the Consolidation units report financial data to group headquarters
 The currency in which the consolidated financial statements are created
In TML Scenario Currencies have been defined as follows:
Company code currency& Account has been defined for all company codes as INR.
The currency for all consolidation Units has been defined as INR.
Consolidation Ledger

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A specialized framework that determines how values and quantities are entered and presented for
 A particular area of accounting
 Reporting or evaluation purposes.
A ledger consists of the transaction figures and documents that represent the changes in values and
quantities arising from business transactions.
In TML Scenario one consolidation ledger TM has been defined.
Consolidation Unit
The smallest element of the corporate group structure that can be used as the basis for performing a
consolidation
In TML Scenario all companies have been defined as Consolidation units.
Consolidation Group
The business object Consolidation group is a user-defined aggregation of multiple consolidation units
for the purpose of consolidation and reporting thereon
In TML Scenario all companies having Subsidiaries have been defined as Consolidation groups.
Consolidation Group Hierarchy
An orderly web, of consolidation units and groups

A hierarchy features a top consolidation group to which all of the other consolidation groups and
units are allocated.
A dimension can have multiple hierarchies of consolidation groups simultaneously. This provides the
capability of consolidating a consolidation group within a dimension according to different statutory or
internal requirements.
Hierarchies are version as well as period dependant.
In TML Scenario TM Hierarchy has been defined.

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Consolidation Chart of accounts
Systematic classification of financial statement, items, that enables preparation of consolidated

financial statements. The classification is based on the external or internal requirements regarding the
consolidated financial statements that you want to prepare on the basis of the consolidation chart of
accounts.
For example, you could have one consolidation chart of accounts for the purpose of generating
financial statements to meet the requirements of statutory authorities, and you could have
another consolidation chart of accounts to accommodate corporate-internal requirements for
contribution margin accounting.
You can have multiple consolidation charts of accounts within a single dimension. This enables you to
generate multiple financial statements at the same time to meet various requirements.
In TML Scenario one consolidation chart of accounts TM has been defined.
FS Items
This is the fundamental account assignment, in the Consolidation system.

Financial statement (FS) items form the basis for consolidation data collection, posting and
reporting.
FS items can be used in multiple consolidation charts of accounts. They are used for accounting
purposes on balance sheets, income statements or statements of retained earnings.
Financial statement items can have different contents. They can represent the following:
 . A monetary amount from sources such as the balance sheet or the income statement
that are relevant to accounting
 . A statistical amount
 . A key figure
The attributes of an FS item include the FS item type, the where-used indicator, the FS item
category, the debit or credit sign and the breakdown category.
Besides the item key, the Consolidation system also features sub assignments. The following sub
assignments are provided: trading partner, transaction currency, year of acquisition, and sub
item.
Custom sub assignments are also available
In TML Scenario FS Items have been defined at a level which will facilitate consolidation
functions & reporting as per Indian & US GAAP.

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Annexure 1 gives details of the FS items defined in the system.
Breakdown Categories
Depending on the FS items posted, different sub assignments are necessary for the transaction data.
For example, payables and receivables items require partner unit sub assignments so that inter unit
payables and receivables can be eliminated. Some items require several sub assignments, for
example partner unit and transaction currency.
Sub assignments are grouped into breakdown categories, which are assigned to FS items in their
master data. Breakdown categories are defined for a particular chart of accounts.
When defining a breakdown category, the system offers all standard sub assignments and all custom
sub assignments.
In TML Scenario 5 breakdown categories have been defined.
Sub item categories & Sub Items
Sub item and sub item category are sub assignments for the financial statement items in
Consolidation. Both characteristics are in a compound with each other. The sub item is dependent
on the sub item category. The sub item category classifies the values of the sub item.
.
In TML Scenario standard Sub Item Categories provided by SAP have been used.
Sub Items for trading partner & Functional areas have been defined.
FS item Hierarchy
FS items are created in a chart of accounts for company consolidation to meet the statutory
requirements.
The chart of accounts can be split into the two item hierarchies "Balance Sheet" and "Income
Statement".
In the "Balance Sheet" hierarchy, you create the totals items "Fixed Assets" and "Current
Assets". Beneath these items, you create value items or lower-level totals items, and so on.

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In TML Scenario two Hierarchies for reporting as per US GAAP & Indian GAAP have been
maintained. The two hierarchies have been subdivided further in to Balance Sheet and Income
Statement.
Summary
COMPANY NAME Company/ Company code/ Cons. Account

Trading partner/ Cons. group Currency
unit/ Chart of accounts in
FI
TATA MOTORS LIMITED TML TMLG INR
TAL MANUFACTURING SOLUTIONS TAL TMLG INR
HV AXLES LIMITED HVAL TMLG INR
HV TRANSMISSIONS LTD HVTL TMLG INR
CONCORDE MOTORS LTD CML TMLG INR
CONCORDE MOTORS INDIA LTD CMIL TMLG INR
TELCO CONSTRUCTION EQUIP CO.LTD TLCN TMLG INR
TATA DAEWOO COMM. VEH. LTD TDCV TMLG INR
TATA PRECISION INDUSTRIES PTE LTD TPI TPIG INR
TATA ENGINEERING SERVICES TES TPIG INR
TATA TECHNOLOGIES LTD TTL TTLG INR
TATA TECHNOLOGIES US TTUS TTLG INR
SHEBA PROPERTIES LTD SHEB SHEBG INR
TELCO DADAJI DHACKJEE LTD TDDL SHEBG INR
TATA AUTOCOMP SYSTEMS LTD TACO TACOG INR
TATA TOYO RADIATORS LTD TTRL TACOG INR
TATA AUTO PLASTIC SYSTEMS LTD TAPS TACOG INR
AUTOMOTIVE COMPOSITE SYSTEMS INTERNATIONAL LTD ACSI TACOG INR
AUTOMOTIVE STAMPINGS AND ASSEMBLIES LTD ASAL TACOG INR

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1.3.2.1b: Organisation structure
AS PER INDIAN GAAP
 There are 12 Consolidation Units & 3 Consolidation groups
Company Code TMLG CONS GROUP

/Company/CONS UNIT
TLCN TDCV TTLG TAL TML SHEBG CMIL HVTL HVAL CML
TTL TTUS SHEB TDDL

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AS PER US GAAP
There are 19 Consolidation Units & 5 Consolidation Groups
Company/company TMLG CONS GROUP

codw/cons unit
TLCN TDCV TTLG TAL TPIG TML SHEBG CML CMIL TACOG HVAL HVTL
TTL TTUS TPI TES SHEB TDDL
TACO ACSI ASAL TAPS TTRL

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1.3.2.1c: Data Flow in FI
Data from all companies, with currency = INR, is required to be brought into the FI Module of
the Consolidation Server. The data in FI Module of Consolidation server is the same as data
in the source system. Simultaneously there will be a real time update of data into the ECCS
module.
Data transfer will take place on monthly basis by GL A/c, Trading Partner and Functional
Area as per specified format.
In the first period the year to date data in specified format will be required. Thereafter only
Incremental data will be required.
For Subsidiary companies operating in SAP:
For getting data in the detailed required format implementation of the following is a pre-
requisite:
 Trading partner- to derive identifier for elimination
 Cost of sales accounting –to derive functional area for US GAAP reporting
As a precautionary measure, the following Data needs to be validated

 FI- report for Balances (S_ALR_87012301 - Totals and Balances)
 Special ledger- report for special ledger ZF (GD13 - Totals record display)
Once the above are implemented, data can be downloaded directly from the Application
server in the source systems, from GLFUNCT table.
The program to be used is “ZECCS_DNLD_GLFUNCT”.

From respective application server data will be copied to ECCS Application server without
manual intervention and then will be uploaded into FI through BDC program.
Till such time as the process is automated, data will be given by companies in a Text File
(Tab Delimited), on a monthly basis.
Subsidiary companies operating in Non-SAP System:
Non-SAP subsidiary companies will have to develop a program to download data in the
specified format in a .txt file (Tab delimited).
Till such time the program is not developed data needs to be provided manually.
Subsidiaries will have to Download data file in their respective server, & then copy the file to
ECCS application server

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Two BDC programs are available for upload of data into FI, in Consolidation server.
 Session method (Create a session and upload later, log details provided by SAP)
Transaction code ZF02S
 Call Transaction method (Immediate upload, log details created by us).
Transaction code ZF02C
Flow Diagram
Source systems
Detailed Trial
Balance
from TML &
Subsidiaries
Consolidation System
FI Conversion
Module Programs
Companies & Company

codes
COA & Data

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1.3.2.1d: Validation in FI
 Check whether file has data or not.
 Check client/year/period/co code is proper and any blank lines in the data file.
 Check whether data already uploaded for a period/year/comp code
 Check G/L Account, Functional Area, Transaction Type, Trading Partner, and Debit/Credit balance.
If any one task fails display the message and stop the program.

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o Check for GL Account existence
o Check for Functional Area existence
o Check for Transaction Type existence
o Check for Trading Partner existence
o Check amount fields contains only numbers
o Credit and Debit balance

 If amount is zero skip then delete the entire line item from file and do not load that line
Flow Diagram
Source systems
Detailed Trial Balance from TML & Subsidiaries
FI Corrective
Module action 19
Conversion companies
Programs &
Company
YES codes
COA &
Validation NO Data
Errors?
Yes/ no
1.3.2.1e: Reports in FI
Individual Financial statement version for all the companies.

G/L Account Balances - S_ALR_87012277
1.3.2.1f: Real time Update in ECCS

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In the consolidation server, data will flow into ECCS module through Real time Update
from FI.
For this purpose FI module has been configured & integrated with ECCS Module in the
consolidation server.
Data will be uploaded into FI for TML and all its subsidiaries at periodic interval.
Data will flow to ECCS from FI by way of Real-Time update.
1.3.2.1g: Overview flow diagram
Source systems
Detailed Trial Balance from
TML & Subsidiaries
ECCS Module
Conversion
Programs
Cons units
FI hierarchy for Indian GAAP data-Ver 100
Validation Module Indian Gaap
Real time Cons units

Update hierarchy for US
US GAAP Data Ver Gaap
900
19 companies &
Company codes Real time
COA & Data Update
Reporting
1.3.2.2 : Processes & Activities

The Various processes & activities to be carried out in the Consolidation system are detailed
below.
1.3.2.2a: Manual Entries in FI.

The normal process for getting data in the consolidation system is through uploading the Trial
balance/incremental data for individual subsidiaries in FI, Thereafter the data will flow in ECCS
module through real time update.
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However entries arising out of management decisions need to be passed subsequently.

The periods are opened in the source systems for this purpose.
Hence, to keep the data on the source systems & Consolidation system in sync, there will be a
need to pass manual entries in FI on the consolidation system.
Since this may lead to dilution of Controls, the activity needs to be done carefully in a controlled
manner.
It is recommended that this activity should be done only by persons named to carry out this
activity. Authorizations can be given accordingly.
1.3.2.2b: EC-CS Process
1.3.2.2b.i Data Monitor

You use the data monitor to run the activities for collecting and preparing the financial data reported by
your consolidation units. In Consolidation, these activities are called tasks.
The system manages the status of the tasks and, thus, ensures a logical sequence and consistent
data.
The Data Monitor is used for the following:
 Monitoring the collection and standardization of reported data by the consolidation units in
a dimension:
In order to ensure that these tasks are executed correctly, in general you need to execute
them in a certain order. For example, data must be validated before it can be used for
further tasks. It is also important to ensure that tasks can only be executed once the
preceding tasks have been completed without errors.
This is controlled by the status management function which belongs to the monitor.
However, it is also possible to run a provisional update for tasks:
o When you successfully run a task in update mode and the preceding tasks are not
blocked, the monitor returns the task status "Pendent" (pending completion of
preceding task).
o When you successfully run a task in update mode and the preceding tasks are
blocked, the monitor returns the task status "Without Errors".
Overall Status
The monitor displays the overall status for each organizational unit. The overall status is portrayed
using an initial stage icon and three traffic light icons, as illustrated here:
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Task Status
As with the overall status, the monitor also displays the status of each task for each
organizational unit. Tasks have the following statuses:
 Executing tasks:
All tasks can be started from the monitor, either in test or update mode. The tasks you
want to execute must be contained in the task group assigned to the dimension, however.
You also have the option of starting tasks individually from the application menu.
For each dimension, you define a task group that contains the tasks you require, and you define
the order in which the tasks can be executed.

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 You can deactivate Status Management to prevent the system from controlling the
execution of the tasks.
 You can specify that the periods containing tasks you want to perform must be explicitly
opened. If you don't specify this, the periods are open by default.
You cannot execute any tasks in closed periods. An authorization object is available for
opening and closing periods, allowing you to assign the authorization to specific staff
members.
In TML Scenario Data Monitor has been used for the following activities:
-Transfer to retained earnings at the end of each Month

-Carry forward Balances at the beginning of each year
1.3.2.2b.ii Consolidation Monitor
The consolidation monitor has the following objectives:

 To control the sequence of the consolidation tasks

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In general, the tasks must be executed in a certain sequence to ensure an orderly flow.
The tasks that belong to the consolidation monitor can principally only be executed after
the tasks of the data monitor are completely executed without any errors.
However, it is also possible to run a provisional update for tasks:
o When you successfully run a task in update mode and the preceding tasks are not
blocked, the monitor returns the task status "Pendent" (pending completion of
preceding task).
o When you successfully run a task in update mode and the preceding tasks are
blocked, the monitor returns the task status "Without Errors".
 To execute the tasks
The monitor can be used to execute all of the tasks, either in test mode or update mode.
These tasks must be included in the task group assigned to the dimension.
In addition to the monitor, you can also execute the individual tasks via the application
menu.
For each dimension, you define a task group, in which you specify the tasks to be run by the
consolidation monitor as well as the sequence of the tasks.
The execution of the tasks is controlled by the predetermined status management function of the
system. You can deactivate the function in step Check global system settings. There you can
also specify for the monitor that accounting periods must be explicitly opened before they can be
posted to.
In TML Scenario the consolidation Monitor will be used for executing tasks relating to:
 Inter Unit elimination
 Elimination of Inter unit profit/loss in inventory
 Consolidation of investments
 Reclassification
 Prepare for Consolidation group change
1.3.2.2b.iii Reports
Standard SAP Reports
The consolidation system provides the following reports

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 Balance Sheet Report
 Change in Local Value to Cons Value
 Version Comparison/ analysis between Indian GAAP and US GAAP
 Comparison of Consolidation Units to analyze the % wise Company wise share per FS Item
 Reconciliation of Consolidation ledger with General Ledger to validate data flow from FI to
EC-CS
 Total Records with General Ledger/Cons Staging Ledger to validate data flow from FI to EC-CS
 Journal Entries Report for entries passed in EC-CS
Reports to be developed
 Change in Local to Consolidation Value Report for movement of data from Reported data to
Consolidated data at Group Level
 Comparison of Cons Unit: view of Reported data for all the units in columnar format.
 Comparison of Cons Unit: view of Consolidated data for all the units in columnar format
1.3.3 Detailed design document

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1.3.3.1 Organisation structure (refer document number CSTMLC001)
In FI
Refer Point 1.3.2.1b In section above
In EC-CS
The following are Subsidiaries of TML as per Indian GAAP

Subsidiary Holding
Company % of holding Company
TAL 100 TML
HVAL 100 TML
HVTL 100 TML
CMIL 100 TML
TDCV 100 TML
SHEB 100 TML
TDDL 69.54 SHEB
11.5 TML
TLCN 79.75 TML
0.25 SHEB
TTL 95.38 TML
Subsidiary % of Holding
Company holding Company
TAL 100.00 TML
HVAL 100.00 TML
HVTL 100.00 TML
CMIL 100.00 TML
TDCV 100.00 TML
SHEB 100.00 TML
TDDL 69.54 SHEB
11.50 TML
TLCN 79.75 TML
0.25 SHEB
TTL 95.38 TML
The following are Subsidiaries TTUS 100.00 TTL of TML as per US GAAP
TPI 49.99 TML
TES 100.00 TPI
TACO 50.00 TML
Tata Motors Blue Print ECCS TTRL 51.00 TACO
Created on 31.01.2004 30 of 72-
Module TAPS 100.00 TACO 30330 -30
ACSI 74.00 TACO
ASAL 81.00 TACO
CML 49.99 TML
TATA MOTORS
The schematic Hierarchy representation in EC-CS Module is as follows
Indian GAAP
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US GAAP
1.3.3.2 Data in FI (refer document number CSTMLC002)
Setting up of FI Module, in the Consolidation server for TML group. This will ensure, source company
data as it is in FI, on the consolidation server through file transfer.
Data will be transferred from FI to ECCS by way of Real time Update so as to avoid manual
intervention and to have authenticity of the data flowing into ECCS.

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1.3.3.3 Different fiscal years (refer document number CSTMLC006)
In TML Group, some of the Companies are following different fiscal year from that of the Parent
Company (TML).
In addition there is a time gap between the financial statements of the Parent Company (TML) & two of
its subsidiaries (TPI & TES).
TML has four subsidiaries which are operating outside India and following different financial year i.e.
January to December.
 TDCV
 TTUS
 TPI
 TES
As per current practice being followed by TML, data for TDCV & TTUS is brought in the same calendar
month for which the data pertains to. Whereas in case of TPI & TES the data is brought in the same
posting period i.e. with the time gap of 3 months.
For e.g.: If the data pertains to January 04, in case of TDCV & TTUS same is brought in TML Group in
the month of January 04 only, whereas in case of TPI & TES the same is brought in the month of April
04.
As per the recommended option 1:

1) The fiscal year corresponding to Financial year 2004-2005, is 2005
2) For TPI & TES there will be a lag of 3 months.
1.3.3.4 Periodicity (refer document number CSTMLC007)
 For the first time, as of date data will be retrieved from the subsidiaries.
 The data so retrieved will be uploaded in the FI Module of the Consolidation System.
 Subsequently, monthly incremental data would be retrieved from the respective subsidiaries.
 The incremental data so retrieved will be uploaded in the respective period.
 As a preceding step, the prior posting period will be closed and the subsequent posting period
will be opened for uploading the monthly incremental data.

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1.3.3.5 FI Closure (refer document number CSTMLC008)
Closure of posting periods in FI for TML and its subsidiaries in the Source System is
prerequisite before downloading of data from their system so as to avoid any further posting
of data into their system for the corresponding period. Data such downloaded are to be
uploaded into FI in consolidation server. Once data for all the companies are uploaded in FI,
posting period should be closed in FI in consolidation server immediately after upload ,so as
to avoid inconsistency in data.
However TML corporate group has suggested that there could be circumstances where the FI
Period may need to be re-opened to incorporate certain management decisions.
Hence in FI of the consolidation server one person in corporate accounts may be authorized to pass
manual entries.
1.3.3.6 Data Input (refer document number CSTMLC003)
For the Real Time update to take place in the EC-CS module of the Consolidation Server, data from
TML & all its subsidiaries is required to be brought into the FI Module of the Consolidation Server. The
data in FI Module of Consolidation server is the same as data in the source system.
As per the requirement of TML data can be uploaded into FI in ECCS server:
 On monthly basis.
 Incremental data for the period
 By GL Account, Trading Partner & Functional Area
TML & its subsidiaries have been classified as follows:
Companies where SAP has been implemented:
TML
TAL
TELCON
TTL
TTUS
HVAL
HVTL

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Companies where SAP has not been implemented
TACO
ACSI
ASAL
TAPS
TTRL
TDCV
TPI
TES
SHEBA
TDDL
CML
CMIL
Programs have been developed to load the data received from various source systems.
For Companies where SAP has been implemented Programs for Downloading data will be developed
Non SAP implemented companies will have to develop their own programs.
Till such time as the programs are developed Data will be generated manually.

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1.3.3.7 Currency translation

Since the trial balances for all companies will be available in INR , no currency translation entries
need to be passed in the EC-CS System.
1.3.3.8 Consolidation Chart of accounts
The consolidation Chart of accounts, FS Items & Item Hierarchies are inter linked .
Consolidation chart of accounts is a systematic classification of financial statement items that enables
preparation of consolidated financial statements.
In TML Scenario:
 TM has been defined as the consolidation chart of accounts.
 The Output length of FS item has been defined as 10 characters.
 Retained earnings will be appropriated in Balance sheet.
1.3.3.8. a FS item
FS item is the fundamental account assignment of the Consolidation system.
Financial statement (FS) items form the basis for consolidation data collection, posting and
reporting.
FS items can be used in multiple consolidation charts of accounts. They are used for accounting
purposes on balance sheets, income statements or statements of retained earnings.
Financial statement items can have different contents. They can represent the following:
 FS item type
Value item- entries can flow to the FS Item

Totals item Similar to total node in FI FSV, various value items can be grouped together, Item
will carry total value for the FS items grouped
Text item – used only for Description, does not carry any values
 Debit or Credit sign

You preset the debit/credit sign for FS items and sub items so that you do not need to specify it
when entering financial data.
For asset items and expense items, enter a plus (+) sign.
For liabilities and equity items, and revenue items, enter a minus (-) sign.

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 Where applied indicator
Where a financial statement item is used within a financial statement structure. It indicates the
FS item is one of the following:
A Asset
B Liability/stockholders' equity
C Income statement
D Statistical
E Contra item
Financial statement item to which the task Item Substitution posts the negative balance of an
asset item or the positive balance of an equity or liability item.
If contra item "B" is assigned to item "A", then item "A" must likewise be assigned as a contra
item to item "B" as well. The contra item assigned to an asset item must be an equity/liability
item. Likewise, the contra item assigned to an equity/liability item must be an asset item.
If the items have a partner breakdown, the balance is examined for each partner unit and, if
applicable, reclassified to the associated contra item.
 Breakdown category
The following standard Breakdown categories have been used
0100 Partner
1100 Partner + Transaction Type Asset
1200 Partner + Transaction Type Equity Cap
2000 Functional Area
2200 Partner + Functional Area
 Text
Description of an FS item
Short text (15 Char length)

Medium text (50 Char length)
 Carry forward
In case an FS item has been defined, with where applied indicator as statistical, then there is an
option to carry forward the net balance in this item just like any other balance sheet item.
Besides the item key, the Consolidation system also features sub assignments. The
following sub assignments are provided
- Trading partner
- Transaction currency
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TATA MOTORS
- Year of acquisition, and sub item.
Sample FS Item Master data
1.3.3.8.b FS item Hierarchy

FS items are created in a chart of accounts for company consolidation to meet the statutory
requirements.
The chart of accounts can be split into the two item hierarchies "Balance Sheet" and "Income
Statement".
In the "Balance Sheet" hierarchy, you create the totals items "Fixed Assets" and "Current
Assets". Beneath these items, you create value items or lower-level totals items, and so on.

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In TML Scenario
Within the hierarchy TM sub hierarchies have been defined for Indian GAAP & US GAAP.
Reporting at a particular instance can be based on a combination of Sub-hierarchies & Versions.
The schematic representation of FS item hierarchy is as follows
FS Items master data---- refer annexure 1

Item Hierarchy---- refer annexure 2
TataofMotors
Signature Blue
the TTL Print ECCS
representative: Created on 31.01.2004 40 of 72-
Module
Signature of the TTL PM: 40340 -40
TATA MOTORS
1.3.3.9 Data Monitor
Data Monitor will be used to carry out the following Tasks:

o Transfer of Periodic Profit/loss to retained earnings
o Carry forward of Balances to next year
1.3.3.9.1 Transfer of Periodic Profit/loss to retained earnings
FI Module
 The profit for the period can be viewed through the Financial Statement Version.
 After executing the Balance carry forward task in FI, the Profit for the current fiscal year will be
transferred to the Retained earnings Account in the first period of the next fiscal year.
 While updating the Retaining earnings account, system will not generate any document, so that,
the amount updated in the Retained account will not be posted in EC-CS.
EC-CS Module
Unlike FI Module, in EC-CS there is no predefined Financial Statement Version. The hierarchy of
FS items will act as a Financial Statement Version. Hence two retained earning accounts need to
be created in EC-CS Module as follows:
 ANI Income Statement(Dr. balance if profit & Cr. balance if Loss)

 ANI Balance Sheet (Cr. balance if Profit & Dr. balance if Loss)
The balance of the current year “ANI B/S FS ITEM– 9000000001” will be transferred to the FS
item “Retained earnings-1112970000” in the first period of the next fiscal year so that in “ANI
B/S FS ITEM-9000000001” only current year profit will be displayed & in “FS ITEM
1112970000” the balance up to the last fiscal year will be displayed.
 Retained earnings task has to be executed as a last task in Data Monitor for all the periods of
the fiscal year i.e. 1 to 16 periods.
 Retained earnings task has been defined as “Ret. Earnings/Substitution” and the task
No.”1110”.

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TATA MOTORS
EC-CS system posts imbalance entries (when the entry is between Income statement & Balance
Sheet items) because, we are attaching Two Retained earning accounts to the FS item hierarchy (one
to the Income Statement & another to the Balance Sheet).

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TATA MOTORS
1.3.3.9.2 Balance Carry forward
 Carry forward means transferring of balances from one fiscal year to the next fiscal year.
 Carry forward task has to be executed as a first task in Data Monitor in the 1 st period of the next
fiscal year.
 The Balance Carry forward has been defined as “Balance Carry Forward” and the task No.
“1100”.
 The Balance Carry forward can be executed in the following way after setting the Global
Parameters.
 All the Balance sheet items will be carried forward automatically to the next fiscal year after
executing the” Balance Carry Forward” Task.
 Income Statement items will not be carried forward unless you specify the items to be carried
forward.
 Statistical items will be carried forward if you specify the item as “carry forward” in the respective
FS item Master.
 “Carry forward” balances can be seen in the “00” period of the next fiscal year.

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1.3.3.10 Consolidation Monitor
The purpose of consolidation Monitor has been explained in Point…… above

In SAP R3 the consolidation monitor is represented as follows

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TATA MOTORS
1.3.3.10. a Inter company Eliminations

 Receivable/Payable
 Inter Company Loans
 Sales/Purchase
 Revenue/Expense
 Inventory Mark-up
 Profit on sale of Assets and Depreciation thereon
Consolidation of Investments
Reclassification
Adjustment Entries specific to US GAAP
First Consolidation
1.3.3.10.a .i Elimination of Receivables/Payables (CSTMLC009)
In a consolidation process, all inter company balances need to be eliminated to arrive at

the consolidated results. Elimination of Inter Company Receivables/Payables is one such
activity, to be performed while executing the consolidation functions.
In TML Group, transactions relating to inter company receivables/payables exist which need
to be eliminated. As per the Requirement Gathering Document, the debtors’ balances are
divided into two categories.
1. Less than six months
2. More than six months
Hence, two separate FS Items are maintained in the Consolidation System, to cater to the
above need.
The elimination function for Receivables/Payables can be performed in EC-CS either

automatically or manually.
Automatically –
The system can generate the elimination entries automatically if
 Only, the debtors’ balances brought as “Less than six months” and “More than six
months”.
 Data has been brought with identifier “Trading Partner”.
Manually –
Manual entries can be passed with or without “Trading Partner”.
Automatic Posting

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TATA MOTORS
Task TC610 has been defined in the consolidation monitor TMLCM for automatic
elimination.
Manual Posting
Task TC110, has been defined in the consolidation monitor TMLCM for manual elimination.
Batch Data Input would be developed for passing these manual entries.
By executing the Task for the given Version and the given period, the elimination entries would be
passed in the consolidation system.
The document types have been assigned to the tasks as under:
Doc. Number Range

Version Task
Type From To
100 TC110 MP 1111000000 1114999999
900 TC110 MP 1111500000 1119999999
100 TC610 AP 1111000000 1114999999
900 TC610 AP 1111500000 1119999999
For Further details – refer to Conceptual Document (CSTMLC022) for Document Types
Strategy in case of difference – In case of Automatic posting, if there is any difference in

amount between the sales and purchase, an FS Item is defined for the other difference,
where the difference amount will be debited/credited, respectively.
All Entries relating to elimination of Receivables/Payables are automatically reversed in the

beginning of next period. During the Year end, the elimination entries are auto reversed.
1.3.3.10. a.ii Elimination of Inter Company Loans (CSTMLC010)
Elimination of Inter Unit transactions of Loans & Advances while consolidating the financial statements
of TML & its subsidiaries.
Based on the Requirement Gathering Document, consolidation entries pertaining to inter unit
Transactions of Loans & Advances can be passed automatically by the system provided Trading
Partner field is available for each of the line item.
If Trading Partner field is not available from the data, manual entry can be passed for elimination of
Inter Company Loans & Advances.
Manual entry

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TATA MOTORS
If Trading Partner field is not available for the data manual entries can be passed after executing the
task “Man. Loans & Advances”
Document type & No. Range defined for Version 100 :”ML” & “02”
Document type & No. Range defined for Version 900 :”ML” & “08”
At a time entry cannot be passed between more than two consolidation units.
Automatic elimination
The automatic entries can be passed by executing “Automatic Elim of Loan/Adv” task in Consolidation
Monitor after setting Global Parameters.
Task defined for Loans & Advances : “Automatic Elim of Loan/Adv”
Document Type & No. Range defined for Version 100 :”AL” & “02”
Document Type & No. Range defined for Version 900 :”AL” & “08”
1.3.3.10. a.iii Elimination of Sales/Purchase (CSTMLC011)
Elimination of Inter Company Sales/Purchases is one of the activities, to be performed while

executing the consolidation functions.
In TML Group, transactions relating to inter company sales/purchase exist which need to be
eliminated. As per the Requirement Gathering Document, following type of transactions takes place in
TML Group.
1. Sales with Excise Duty
2. Sales net of Excise Duty
3. Sales of Product treated as Asset in the books of the buyer.
The elimination function for Sales/Purchase can be performed in EC-CS, either

automatically or manually.
Automatically –
The system can generate the elimination entries automatically if Data has been brought with
identifier “Trading Partner”
Manually –
Manual Entries can be passed with or without Trading Partner

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Automatic Posting
A task TC510 has been defined in the consolidation monitor TMLCM for automatic
elimination.
Manual Posting
A task TC010 has been defined in the consolidation monitor TMLCM for manual elimination.

Doc. Number Range
Version Task
Type From To
100 TC010 AS 1111000000 1114999999
900 TC010 AS 1111500000 1119999999
100 TC510 MS 1111000000 1114999999
900 TC510 MS 1111500000 1119999999
For Further details – refer to Conceptual Document (CSTMLC022) for Document Types.
All Entries relating to elimination of Sales/Purchase are automatically reversed in the

beginning of next period. During the year-end the entries are not reversed.
1.3.3.10. a.iv Elimination of Revenue/Expense (CSTMLC012)
Elimination of Inter Company Income/Expense is one of the activities, to be performed while

executing the consolidation functions.
In TML Group, transactions relating to inter company Income/Expense exist which need to be
eliminated. As per the Requirement Gathering Document, following type of transactions takes place in
TML Group.
4. Interest Received/Paid
5. Rent Received/Paid
6. Dividend Received/Paid
7. Miscellaneous Receipts
The elimination function for Income/Expense can be performed in EC-CS, either
Automatically or Manually.
Automatically –
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TATA MOTORS
The system can generate the elimination entries automatically if Data has been brought with identifier
“Trading Partner”.
Manually –
Manual entries can be passed with or without the identifier “Trading Partner”.
Automatic Posting
Task TC520 has been defined in the consolidation monitor TMLCM for automatic
elimination.
Manual Posting
Task TC020, has been defined in the consolidation monitor TMLCM for manual elimination.
Doc . Number Range

Version Task
Type From To
100 TC020 MR 1111000000 1114999999
900 TC020 MR 1111500000 1119999999
100 TC520 AR 1111000000 1114999999
900 TC520 AR 1111500000 1119999999
For Further details – refer to Conceptual Document for Document Types.
All Entries relating to elimination of Income/Expense are automatically reversed in the

beginning of next period. There is no auto reversal done during the year-end.
1.3.3.10. a.v Inventory Mark-up (CSTMLC013)
When Goods sold from TML to one of its subsidiary or vice versa, on a profit and some of the goods
remain unsold at the end of the period, then the profit loading upon these goods is ‘Unrealized’ from
the viewpoint of the group as a whole.
In case of such unrealized profit, the profit element needs to be eliminated in consolidation so that total
inventory is reflected in the consolidated statement at cost.
Manual entry needs to be passed into the system for the amount of unrealized profit.

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TATA MOTORS
The Consolidation Function for the ‘Elimination of Inventory Mark-up” is executed in the Consolidation
Monitor. This has been defined as a Manual Entry.
A Task TC030 for the execution has been defined under Task Group – TMLCM (TML
Consolidation Monitor) in Consolidation Monitor. The Task has to be executed separately for
Indian GAAP (Version 100) & for US GAAP (Version 900).
Document types have been assigned to the task as under:
Number Number Range

Version Doc. Type
Range From To
MG (Manual
100 Profit Margin 1111000000 1114999999
02
on
Inventory)
MG (Manual
Profit on
900 08 1115000000 1119999999
Inventory –
900)
Since in this elimination entry one line item pertains to Profit & Loss a/c and other line item
pertains to Balance Sheet a/c it leads to financial imbalance and to avoid this, system generates
two more line items as under:
.
FS Item Description A/c Type Dr./Cr
B/S Dr.
P/L Cr.
All Entries relating to elimination of Inventory Mark-up are automatically reversed in the
beginning of next period.
1.3.3.10. a.vi Profit on sale of Assets and Depreciation thereon (CSTMLC01)
Elimination, of unrealized profit, on Inter Company transactions, of Fixed Assets.

Since The automated execution of the elimination of IU profit/loss in transferred assets is not available
in this release (4.7 SAP R3) Manual entries need to be passed for this activity.
The entries can be passed by executing Task TC040 “Man. Profit Margin on FA” task in Consolidation
Monitor after setting Global Parameters.
At a time entry cannot be passed between more than two consolidation units.
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Task defined for Fixed Assets TC040: “Man. Profit Margin on FA”.
Document Type & No. Range defined for Version 100: “MF” & “02”
Document Type & No. Range defined for Version 900 : “MF” & “08”
1.3.3.10. b Consolidation of Investments (CSTMLC015)
All inter companies investments need to be consolidated in case of holding in subsidiaries and
need to be revalued as per net worth of the respective associates in case of holding in
Associates. Consolidation of Investment is one of the major activities while doing Consolidation.
In SAP R3, in ECCS module, consolidation entries can be passed to do the inter company
consolidation of Investments. SAP tasks for inter company consolidation of investments is
available for both Manual and Automatic Posting.
Necessary entry for consolidation of investment can be passed into the system in following
manner:
Automatic Posting:
System itself can generate the entry in case of investment in subsidiaries if following inputs are
provided into the system:
 Company wise detail of investment in group companies along with details of equity items
of investee companies at the time of First consolidation
 Detail of additional acquisition/divestiture in group companies if any.
 Detail of changes in investee’s worth at the time of subsequent consolidation.
Manual Entry:
Manual entry can be passed into the system in all other cases.
Investment Related activities can be grouped as under:
 Consolidation of Investment for Subsidiary Companies

 Consolidation of Investment for Associate Companies
Steps to be followed for executing consolidation of inter company investments for Subsidiary
Companies:
1. Enter Global Parameter Values

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Entering the Global Parameter Values is the first and foremost step to be performed. The Global
Parameter screen determines the following for executing a task.
 Dimension
 Version
 Fiscal Year
 Period
 Cons Chart of Accounts
 Cons Ledger
Hence the Global Parameter screen has to be filled/checked before execution of tasks.
2. Data Monitor
The data monitor screen is primarily for collection of data into EC-CS. Beside, Tasks relating to Carry
Forward of balances, Transfer to Retained Earning can be performed in Data Monitor. In the data
collection tasks, additional information can also be provided through Additional Financial Statements,
which in turn enable the system to carry out the automatic execution of consolidation tasks. Such
additional information is required in case of investment consolidation, elimination of markup in inter
company inventory etc.
Mainly, following are the inter company investment activities:
 First Consolidation: Investment by the holding company in subsidiary company for the first time.
 Subsequent Consolidation:Share of Investor Company with changes in net worth of Investee
Company at the end of every period.
 Step Consolidation: Further Acquisition by the investor company in the investee company.
 Partial Divestiture: Disposal of holdings by the investor company in the investee company,
partially.
 Total Divestiture: Disposal of holdings by the investor company in the investee company, fully
thereafter the investee company ceases to be a subsidiary of the investor company.
 Increase in Capitalization: Increase in the capital of the investee company.
 Decrease in Capitalization: Decrease in the capital of the investee company.
Additional Financial Statement for each activity:
To enable the system to pass entries automatically input can be categorized as under:
 Information relating to Investment by Investor Company:

This information is provided through Additional Financial Statements only.

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TATA MOTORS
 Information relating to Net worth of Investee Company:
This information can be captured by system from Reported Data automatically or can be
provided through Additional Financial Statements.
A unique number assigned to activity identifies each of the above activity in the system. These
activities can be categorized in the Additional Financial Statements under Data Monitor as under:
 Investor Activities
o First Consolidation
o Step Consolidation
o Partial Divestiture
o Total Divestiture
 Investee Activities
o Increase in capitalization
o Decrease in capitalization
o Subsequent Consolidation
For each of the above activities, a separate screen is available in the additional financial
statements.
Following details need to be provided under additional financial statements.
 First Consolidation
 Activity – 01
 Overview
 Information relating to Investor Company
 Name of the Investor Unit
 Increase/Decrease in share to be reflected by +/-
 Percentage of share in the investee company
 Book value of investment acquired in Local Currency
 Book value of investment acquired in Group Currency
 Information relating to Investee Company
 Name of the Investee Unit
 FS Items relating to Net Worth
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 Increase/Decrease in value to be reflected by +/-
 Book value of all items in Local Currency
 Book value of all items in Group Currency
 Details
 FS item relating to investment
 Sub items relating to investment
 Rest information to be captured automatically from Overview Screen
 Details Investment
 All information to be captured automatically from Overview and Details Screen.
 Step Consolidation
 Activity – 07
 Overview
 Details
 Partial Divestiture
 Activity – 10
 Overview
 Book value of investment divested in Local Currency
 Book value of investment divested in Group Currency

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 Details
 Total Divestiture
 Activity – 11
 Overview
 Book value of investment divested in Local Currency
 Book value of investment divested in Group Currency
 Details
All information will be captured automatically from Overview and Details Screen.
 Increase in Capitalization
 Activity – 05
 Overview
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 Details
 Decrease in Capitalization
 Activity – 06
 Overview
 Details

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 Subsequent Consolidation
 Activity – 02
 Overview
 Details
 FS item relating to Net Worth
 Sub items relating to Net Worth
In the additional Financial Statements all the required FS items can be provided by default so as to
reduce data entry error, time and efforts. Necessary settings for the same have been done in
Configuration. However, these FS items can be overwritten by the user if need be.
3. Block Data Monitor
After completion of Additional Financial Statements The data monitor has to be blocked.
4. Consolidation Monitor
Method for consolidation of investment
ECCS Module supports various methods for consolidating inter company investments, which are as
under:
 Purchase Method
 Pooling of Interest Method
 Equity Method
 Proportional Method
 Mutual Stock Method
Purchase method has been assigned to the task in configuration settings for consolidation of inter
company investment.
Creation of Additional FS Items
To enable the system to pass entries for consolidation of investments, some additional FS Items are
required as under:
FS Item Item Type Dr./Cr. Sign Where Carry Break

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Applied Down
Forward
Indicator Category
Minority Value Item - Liability Yes Trading
Interest Partner
Minority Value Item - Income No
Interest in ANI
(P&L)
ANI (BS) Value Item - Liability Yes
ANI (P&L) Value Item - Income No
Goodwill on Value Item + Asset Yes Partner +
Consolidation Transactio
n Type
Capital - Liability Yes Partner +
Reserve on Transactio
Consolidation n Type
ANI - Statistical No
ANI Offsetting + Statistical No
MI in ANI - Statistical No
MI in ANI + Statistical No
Offsetting
Adjusted ANI - Statistical Yes
MI in AANI - Statistical Yes
Overall + Statistical Yes
Offsetting Item
Besides, for each FS item, which is considered in calculation of net worth of Investee Company, a
unique statistical item has to be created with same break down category. These statistical items have
to be assigned to the corresponding FS items in configuration settings.
Sequencing of Activities
If during a period more than one activity takes place, then task need to be executed in the below
mentioned order so as to give true and fair view:
 First Consolidation
 Subsequent Consolidation
 Increase in Capitalization
 Decrease in Capitalization
 Step Acquisition
 Partial Divestiture
 Total Divestiture
Sequencing for the same has been defined in the Configuration settings. During execution of task
documents get generated in above sequence only.
Tasks

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For the consolidation of investment a task needs to be executed. In the Consolidation System, Two
Tasks are defined for IU elimination of receivables and payables.
 Task for Manual Posting: TC130

 Task for Automatic Posting: TC630
The above-mentioned tasks have been assigned to the Task Group – TMLCM (TML Consolidation
Monitor). The Task has to be executed separately for Indian GAAP (Version 100) & US GAAP (Version
900). It should be noted that the tasks defined for both of the above are mutually exclusive forever.
These tasks are available in the consolidation monitor screen for execution.
Document Types
Document types are defined and assigned to the task. It identifies the document generated by
executing the task. Document Number Ranges are assigned to Document Types.
Document types defined and assigned are as under:

Doc Number Number Range Interval
Version Tasks
Type Range From To
100 02 1111000000 1114999999
TC130 MI
900 08 1115000000 1119999999
100 02 1111000000 1114999999
TC630 AI
900 08 1115000000 1119999999
Task Execution
System provides an option of doing a test run and update run. It is recommended to first do the test
run; test check the document and after verifying the results, do the update run.
By clicking the update run, document gets posted in the books of accounts. The document gives the
following details of the consolidation entry –
Document Header
a. Dimension

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b. Chart of Account
c. Consolidation Version
d. Period
e. Task
f. Document Type
g. Document number
Data Rows
a. Unit where each line item in consolidation entry is passed
b. Partner unit for which each line item in consolidation entry is passed
c. FS items that is involved in the consolidation entry
d. The amount for consolidation – Dr/Cr.
For detailed entries please refer to the conceptual document as mentioned above.
In case of Associates:
In case of Associate Companies, Manual entry needs to be passed. A Task TC140 has been
defined and assigned to the Task Group – TMLCM (TML Cons. Monitor). The Task has to be
executed separately for Indian GAAP (Version 100) & US GAAP (Version 900).
Two Document types have been assigned to the task as under:
Number Range
Version Doc. Type
From To
100 MA 1111000000 1114999999
900 MA 1115000000 1119999999
During Consolidation in respect of associate companies entries need to be passed in respect of

the following:
o For share in profit
o For reversal of dividend booked by investor
o For unrealized Profit in inventory lying in books of investor/investee
Issue
In case of Step Acquisition System considers profit till end of previous/current period as pre acquisition
profit. As per current practice, TML considers profit as on date of such further acquisition, as pre
acquisition profit.

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For example, TML has acquired additional 10% shares in one of its subsidiary on 15 th Jan.’2005. The
Position of Profit of Subsidiary as on 31st Jan.’05 is as under:
Profit from 1st Apr.’04 – 31st Dec.’04 Rs. 10.00 Lacs

st th
Profit from 1 Jan.’05 – 15 Jan.’05 Rs. 01.50 Lacs
Profit from 16th Jan.’05 – 31st Jan.’05 Rs. 01.00 Lacs
As per current Practice TML considers Rs. 11.50 lacs (10.00+1.50) as pre acquisition profit whereas
system can consider pre acquisition profit either 10.00 lacs or 12.50 lacs (10.00+01.50+01.00) based
upon the settings done in configuration.
TML has to confirm this change and also confirm whether they will consider pre acquisition profit as
Rs. 10.00 lacs or Rs. 12.50 lacs.
1.3.3.10. c Reclassification (CSTMLC016)
Entries need to be passed for the purpose of difference in disclosure
Difference in Disclosure:
There are certain FS items, with where applied indicator = Income Statement, which are to be
disclosed either as expenditure or income, depending upon the net balance of the FS Item. For
example Gain/Loss on account of exchange difference can be expense or income at the end of a
certain period. If the balance of FS item is Debit it should be disclosed as expenditure and if the
balance of FS item is credit it should be disclosed as income.
Tasks
For the reclassification a task needs to be executed.
In TML Scenario, the following Task has been defined:

 Task for Automatic Reclassification: TC650

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The above-mentioned task has been assigned to the Task Group – TMLCM (TML Consolidation
Monitor). The Task has to be executed separately for Indian GAAP (Version 100) & US GAAP (Version
900). The task is available in the consolidation monitor screen for execution.
Document Types
Document types are defined and assigned to the task. It identifies the document generated by
executing the task. Document Number Ranges are assigned to Document Types.
Document types defined and assigned are as under:

Doc Number Number Range Interval
Version Tasks
Type Range From To
100 02 1111000000 1114999999
TC650 AE
900 08 1115000000 1119999999
1.3.3.10. d Adjustment Entries specific to US GAAP (CSTMLC017)
Realignment & Adjustment entries to be passed, while doing Consolidation in EC-CS System as per
US GAAP
All the Realignment & adjustment entries relating to US GAAP will be passed manually in Version
“900” (US GAAP) EC-CS System
 Realignment entries are those entries which does not have any impact on Profit/loss
 Adjustment entries are those entries which may have impact on Profit or loss
The entries relating to Realignment(Reversible) & Adjustments(Reversible) can be passed by

executing the Task “Manual Realignment” in Consolidation Monitor.
Note: Some Companies are treated as Associates as per Indian GAAP & the same are treated
as Subsidiaries as per US GAAP. While doing Consolidation as per US GAAP first
transfer the Investments from “INVESTMENT-ASSOC. CO – FS item1231400000 ” to
“INVESTMENTS IN SUBSIDIARIES (IC) - 1231100000-” thru task “Manual Realignment
“ and than pass the entry for Consolidation of Investments thru task “Manual cons. Of
investments “ in Consolidation Monitor.
The entries relating to Realignment (Non reversible) & entries relating to Adjustments (Non
reversible) can be passed by executing the Task “Manual Entries” in Consolidation Monitor.
The details of Task No., Task Name, Document Type & No. Ranges are as follows.
TASK No. TASK NAME Document Type No. Range

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TC060 Manual MT 08
Realignment
TC050 Manual Entries ME 08
1.3.3.10. e First Consolidation (CSTMLC019)
 Post all the permanent entries in the new system, which have been already posted in the
existing system from 01.04.01 to 31.03.04, with reference Document No. “TM20012004.”
 Post all the permanent entries in the new system, which have been already posted in the
existing system from 01.04.04 to 31.12.04, with reference Document No. “TM062004
These journal entries can be extracted from System by using Transaction “Code ZECCS_600”.
1.3.3.10.f Reports & Programs developed
The following programs & Reports have been developed /in the process of development.
1. Uploading of Master data in Consolidation server.

 G/L account with chart of accounts :
SAP T code : FSP0, Program : ZECCS_UPLD_GLCOA
Related Spec File : ZECCS_UPLD_GLCOA_SPEC
 G/L account with company code

SAP T code : FSS0, Program : ZECCS_UPLD_GLCC
Related Spec File : ZECCS_UPLD_GLCC_SPEC
2. Downloading of Transaction data from subsidiary company.

 Program : ZECCS_DNLD_GLFUNCT
Related Spec File : ZECCS_DNLD_GLFUNCT_SPEC

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3. Uploading of Transaction data in cons server. (SAP Tcode : F-02)

 Posting each line item + Take on account into 1 document
Programs: ZCONS_UPLD_CALL_MANY (Call Transaction Method)
ZCONS_UPLD_SESSION_MANY (Session Method)
 Posting 998 line item + Take on account into 1 document

Programs: ZECCS_UPLD_TRAN_CALL (Call Transaction Method)
ZECCS_UPLD_TRAN_SESSION (Session Method)
Related Spec File: ZECCS_UPLD_TRAN_SPEC
4. Uploading Manual Entries

Program: ZECCS_MANUAL_POSTING
SAP T code : CX50
Related Spec File: ZECCS_MANUAL_POSTING_SPEC
5. Reports (Report Painter - ECCS) :
 Changes in local to Cons values Report

 Balance sheet report
 Cons Unit comparison – Reported data
 Cons Unit comparison – Consolidated data
6. Reports (SAP Query) :
 Journal Entries Report
7. Additional Reports :
 G/L Account Balance (FI)

 Cash Flow (FI) – Not completed
 Local Currency to Group Currency Comparison (ECCS) – Not completed
8. Works other than Program and Reports
 Created transaction codes for reports (different from normal transactions)

 Included transactions in SAP Easy Access through SE43
 Added additional fields in G/L account line item display report (FBL3N) through SPRO
 Programs to copy the datafiles (*.txt) from presentation to application server.
9. Developments for Automation :

FTP Process to transfer file from Subsidiary to Consolidation Server
Program : ZECCS_FTP_FILE_XFR (under testing)

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1.3.4 Fit / Gap Analysis
1) Separate Document Type for Reversal of entries cannot be generated in EC-CS Module.
2) Uploading of Entire Trial Balance through one document:

 In case number of lines in Trail Balance is less than 1000: Data can be uploaded through
one document.
 In case number of lines in Trial Balance is 1000 or more: System can upload maximum upto
999 transaction data through one document only. In such case, system will consider first 998
line of the Trial balance and generate 999th line automatically by debiting/crediting the diff. to
one offset account “99999999” and post balance line items in another document reversing
the offset account.
3) Validations
 After passing the elimination entries dues from subsidiary balance should be zero.

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If Due from subsidiaries a/cs are fully reconciled with counter GL a/c s Balance will
automatically be Zero once elimination entry is passed.
No validation is possible in the system.
 Share Capital & Share premium account should be only TML balance after passing entries
for Investments.
Once consolidation entries relating to investments are passed, user can view report by using
Transaction code “ZCLCV” and can verify if there is any other balance left in Capital & Share
premium a/c except TML.However no system validation is possible.
 Inventory change in P & L should be difference between Opening less closing inventory
of balance sheet.
This validation is not possible in the system. However this can be verified by viewing the report
“Balance Sheet”.
 While passing any elimination entry a message should come that it is resulting in
debit/credit balance (say account is advance it should be always debit balance, after passing
elimination entries it should not result in credit balance).
Since all elimination entries are being passed manually, no validation can be put for user input
data.
4) SAP does not support automatic elimination & adjustment entries pertaining to Inter Company
transactions of Fixed Assets.
1.3.5 Business Issues

Issue
Consolidation of Investments
In case of Step Acquisition System considers profit till end of previous/current period as pre acquisition
profit. As per current practice, TML considers profit as on date of such further acquisition, as pre
acquisition profit.
For example, TML has acquired additional 10% shares in one of its subsidiary on 15 th Jan.’2005. The
Position of Profit of Subsidiary as on 31st Jan.’05 is as under:
Profit from 1st Apr.’04 – 31st Dec.’04 Rs. 10.00 Lacs

Profit from 1st Jan.’05 – 15th Jan.’05 Rs. 01.50 Lacs
Profit from 16th Jan.’05 – 31st Jan.’05 Rs. 01.00 Lacs

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As per current Practice TML considers Rs. 11.50 lacs (10.00+1.50) as pre acquisition profit whereas
system can consider pre acquisition profit either 10.00 lacs or 12.50 lacs (10.00+01.50+01.00) based
upon the settings done in configuration.
TML has to confirm this change and also confirm whether they will consider pre acquisition profit as
Rs. 10.00 lacs or Rs. 12.50 lacs.
1.3.6 Security
Identification, Authentication and Access
As per TML user access policies & procedure

Users roles, responsibilities & profiles matrix: refer 1.3.7 below
Security of Online Access to Data
As per TML IT security policy & procedures….
User Account Management

As per TML user account management policies & procedures
Management Review of User Accounts
As per TML user access monitoring process

As per TML Policy on documentation on findings & reports
User Control of User Accounts
Policy, Procedures & Communication Mechanisms as per TML guidelines.

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1.3.7 Authorization
Authorizations have been defined to meet the following objectives:

 Login
 Roles
 Profiles
 Assignment of profiles to Users
The roles have been defined as follows

 Corporate core group
This group will consist of the super users in Corporate finance to carry out critical activities in
the consolidation system, including maintenance of the following:
Operative Chart of accounts

GL Account master records
Cons group hierarchy
Cons units
Cons groups
Cons chart of accounts
FS items
FS item hierarchy
This will be the only group which will be authorized to carry out the above activities
Moreover this group will also have all the authorizations attached to the other groups
 Corporate others
This group will consist of other users in corporate finance.

They will have authorizations to do all transactions, except maintenance of master data, for
all companies
 Corporate Display group
This group will only have display authorization for the entire database.
 Sub groups
This group will consist of users at sub group level as per consolidation groups in the
hierarchy. e.g User from TACO consolidation lead will have authorization to carry out
consolidation activities of TACO as well as its subsidiaries.
 Individual subsidiaries
Users will have authorizations to carry out transactions pertaining to their respective
consolidation units only

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The details of the authorization matrix are attached as per annexure……
1.3.8 Change Management
1.3.8.1 Data from Source systems:

 Incremental data will be extracted on a periodic basis instead of year to date data.
The current practice is to load the YTD trial balance in the consolidation system.
These trial balances are reversed in the next period. Subsequently for next consolidation
Fresh YTD Trial balances are loaded.
Under the new system only for first consolidation the YTD trial balance will be uploaded &
thereafter only Incremental data for a period will be loaded.
 Data will be loaded only once, & thereafter used by way of versions for US & Indian GAAP
Currently data is prepared manually outside the system.
The source data is mapped to two accounts hierarchies maintained separately for US
GAAP & Indian GAAP.
Two separate Sets of company codes are maintained for US GAAP & Indian GAAP
Under the new system The original stand alone trial balance, for each Company ,will be
uploaded only once in in FI Module of the consolidation server.
Through real time update data will simultaneously move to US GAAP & Indian GAAP data
base.
Mappings will be automatically be taken care of in the system through the group account
number field.
 Consequent to implementation of Cost of Sales accounting & trading partner in SAP

implemented companies, data can be easily downloaded in the required format.
Currently the working for the data is done manually outside the systems
Under the new system data will be available in ledger ZF on the source system.
 Data will be uploaded at individual company code level even for subsidiaries that in turn have
subsidiaries below them.
Currently data is uploaded at subgroup level for TACO, TTL Sheba & TES i.e stand alone
data for their subsidiaries is not updated in the system.
In future stand alone data for all the subsidiaries will be captured in FI Module of the
consolidation server.
1.3.8.2 Importance & Responsibilities of the Central Cell

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For monitoring & implementing controls, TML needs to name persons (core group) who
will do the following:
 Closing Procedures in Source systems
 Impact of new account opened in Source system
 Centralized control over addition/deletion of Consolidation Units or Changes in
Consolidation Group Hierarchy.
Closing Procedures in Source systems

Data should be uploaded in Consolidation system only after Period Close.
Ensure that no entries are passed in the source systems after Period close, else data in
Source system & Consolidation system, will not be in sync, resulting in wrong reporting
At year end the facility of SAP Special periods may be used.
The core group should prepare & issue a Common Policy Document on Closing procedures &
monitor strict adherence.
Impact of a new account opened in Source system
Steps
 New account number opened in Source system
 Account number to be opened in FI in consolidation system
 Examine the impact for Indian GAAP reporting, does it require opening of a new FS Item?
o If yes, decide where it will be represented in Indian GAAP FS Item Hierarchy
o Also decide where it will be represented in The US GAAP Hierarchy
o Open the FS Item
o Attach at Appropriate Place in both the US & Indian GAAP Hierarchy
 Enter this as a group account number in the GL master record in Consolidation

System FI Module
 Only after the above steps are carried out the account should be opened in the
Source
System
If any of the above steps are missed out, it will lead to incorrect Consolidation reporting for Indian/US
GAAP

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Control over addition/Deletion of Consolidation Units or Changes in Consolidation Group Hierarchy
The Core group should be responsible for maintaining the Consolidation Group Hierarchy.
Maintenance activities are grouped as follows:
a) Addition of a new Unit

 Create a new company- In consolidation System
 Create a new company code in consolidation system
 Create a new consolidation Unit & other Configurations in EC-CS Module
 Attach new consolidation unit to Consolidation Group hierarchy
Go through all the steps mentioned in “Impact of a new account
Opened in Source system” above
 Inform all the subsidiaries to insert Trading Partner ID in appropriate Master records in the
source system
 Ensure Implementation of cost of sales accounting in the new unit
Prompt action, is an absolute must as it may lead to incorrect data in source

systems
b) Deletion of consolidation Unit
Action
 Analyze whether the unit is to be deleted for Indian GAAP or US GAAP or both.
 Delete the consolidation Unit from appropriate Hierarchy

systems
c) Change of group, an existing Unit is now to be attached to another group
Action:
 Decide the new group to which the Unit is to be attached-whether change applicable to
Indian GAAP, US GAAP or both.
 Attach the unit to appropriate Group under the Hierarchy.
Module 71371 -71
TATA MOTORS

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TATA MOTORS

ECCS Implementation for Tata Motors & its Subsidiaries

Business Blue Print

Mrs.Smriti Goyal BPO-TML(Corp fin)

Mr.Vikas Kabra BPO-TML(Corp fin)

Anil.S.Shembekar Project Manager-TTL

N.N.Vishwanathan Project Manager-TML

Mr.P Y Gurav Mr.Seshadri Krishnan

Tata Motors Blue Print ECCS Created on 31.01.2004 1 of 72

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1.2 Existing Business Processes (AS-IS) & expectations

List of Requirement documents:

Detailed requirement documents are attached

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1.3 Business Process Analysis

 Note: refer Project Charter for more details on overview

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2. Processes & Activities:

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A classification scheme consisting of a group of general ledger (G/L) accounts.

A specific characteristic , in group reporting.

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 . Prepare different consolidated financial statements in parallel in accordance with different

The following currencies are defined:

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In TML Scenario all companies have been defined as Consolidation units.

Consolidation Group Hierarchy

An orderly web, of consolidation units and groups

In TML Scenario TM Hierarchy has been defined.

Tata Motors Blue Print ECCS Created on 31.01.2004 14 of 72-

Consolidation Chart of accounts

Systematic classification of financial statement, items, that enables preparation of consolidated

This is the fundamental account assignment, in the Consolidation system.

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Sub item categories & Sub Items

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COMPANY NAME Company/ Company code/ Cons. Account

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1.3.2.1b: Organisation structure

AS PER INDIAN GAAP

 There are 12 Consolidation Units & 3 Consolidation groups

Company Code TMLG CONS GROUP

TTL TTUS SHEB TDDL

Tata Motors Blue Print ECCS Created on 31.01.2004 18 of 72-

There are 19 Consolidation Units & 5 Consolidation Groups

Company/company TMLG CONS GROUP

TTL TTUS TPI TES SHEB TDDL

TACO ACSI ASAL TAPS TTRL

Tata Motors Blue Print ECCS Created on 31.01.2004 19 of 72-

For Subsidiary companies operating in SAP:

As a precautionary measure, the following Data needs to be validated

The program to be used is “ZECCS_DNLD_GLFUNCT”.

Subsidiary companies operating in Non-SAP System:

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Companies & Company

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 Check whether file has data or not.

 Check whether data already uploaded for a period/year/comp code

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o Credit and Debit balance