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For decades, EC-CS (Enterprise Controlling Consolidation System) was a reliable tool for group consolidation with SAP systems. But with the usage deadlines set by SAP, the situation is changing dramatically: In SAP S/4HANA On-Premise systems, the right to use EC-CS expires on 31.12.2025. An extension of the deadline until the end of 2027 is only possible with the licensing of SAP S/4HANA for Group Reporting. Customers who are still using the old SAP ERP 6.0. may use EC-CS until December 31, 2027.

Many companies do not yet realize the possible consequences – especially the compliance and licensing risks that would inevitably result from continued operation after the deadlines have expired. But this is precisely where the greatest danger arises: technical use is still possible, but use under licensing law is not.

In this article, we shed light on why the end of EC-CS can become an unexpected compliance pitfall for many companies and how you can counter this risk at an early stage.

More than a system change: Why the end of EC-CS affects your financial organization

The discontinuation of EC-CS is not just an IT issue. It affects the core of your financial organization – and therefore the direct responsibility of the CFO. After the SAP deadlines have expired, EC-CS may no longer be used under license law, even if the system would still be technically available. The correctness of the consolidated financial statements therefore depends directly on system and license compliance.

What is at stake?

The end of the rights of use is about much more than a technical change. It is about compliance, financial statement quality and governance – in other words, the foundations of your financial reporting. If you don’t plan the migration in good time, you risk serious consequences:

Compliance risks:
The use of an unlicensed system is a clear violation of internal guidelines and external requirements such as HGB, IFRS or SOX. Auditors check not only the functionality, but also the legality of the systems used. Negative findings can lead to the refusal of an audit certificate – with direct consequences for stock exchange admission and creditworthiness. In addition, there are personal liability risks for the CFO and Management Board.

Quality of the consolidated financial statements:
Group consolidation is one of the most sensitive processes in the financial sector. Without timely migration, there is a risk of interruptions to established processes. Workarounds such as Excel increase the susceptibility to errors, delay financial statements and jeopardize data integrity. Missing audit trails make the audit more difficult and can lead to qualified opinions. Time pressure further exacerbates the situation: those who switch over just before the deadline risk errors in the new system and a double burden due to parallel closing and migration work.

Governance and auditability:
EC-CS has been an integral part of the internal control system for years. Its removal weakens automated controls and validations, resulting in control gaps. Auditors can classify this as “material weakness” – with a direct impact on SOX or IDW PS 330 compliance. Governance also suffers: Using an unlicensed system violates internal guidelines and external requirements and can lead to significant reputational damage.

What counts now: Creating transparency, assessing risks, defining options for action

The discontinuation of EC-CS is not an event that can be sat out. CFOs have a responsibility to clearly understand the impact on compliance, financial statement quality and governance and to act proactively.

The first step is transparency: Which systems are currently in use? Which processes are directly dependent on EC-CS? And how dependent is your organization on this solution?

This is followed by the risk analysis. This is not just about technical issues, but also about assessing regulatory and financial risks. What are the consequences of a delayed migration? How will possible audit findings affect your creditworthiness and investor relations? And what are the liability risks for management?

This analysis results in concrete options for action. Migrating to a future-proof solution such as SAP Group Reporting is more than just a technical project – it is a strategic step for the entire finance organization.

It is crucial to define a clear roadmap at an early stage: from the selection of the solution to data migration and user training. This is the only way to avoid control gaps, ensure auditability and maintain the integrity of the consolidated financial statements.

Now is the right time to take action. Creating transparency, assessing risks and defining options for action not only ensures compliance, but also the future viability of the financial organization.

Professional and technical options at a glance

When the usage rights for EC-CS expire and time is running out, CFOs are faced with a critical decision: How can compliance be ensured while maintaining the quality of the financial statements? In this situation, there are three key options that have proven themselves in practice.

1. immediate risk analysis and emergency plan

The first step is complete transparency about the current situation. Which financial statements still depend on EC-CS? Which regulatory requirements are at risk? A quick risk analysis creates the basis for decisions. At the same time, a contingency plan must be developed in order to meet legal deadlines – even if interim solutions have to be used in the short term.

2. secure transitional solutions for the conclusion

If a complete migration is no longer possible in time, the only option is often to safeguard the consolidated financial statements with temporary workarounds. These include manual consolidation in Excel or the use of external consolidation services. These solutions are error-prone and time-consuming, but they can prevent deadlines from being missed and audit certificates from being refused. It is important to make the documentation as audit-proof as possible in order to maintain auditability.

3. accelerated migration to a future-proof solution

The actual transformation must start in parallel to the emergency plan. The fastest and most sustainable option is to migrate to SAP Group Reporting or a comparable solution. The following applies here: prioritize the core requirements, start with a “minimum viable product” and expand the functions later. Training, test runs and data migration must be carried out under high pressure in order to minimize risks. Close coordination with auditors is essential.

Conclusion

In this predicament, it’s not about perfection, but about the ability to act. Those who are aware of the risks, prepare transitional solutions and accelerate the migration will ensure compliance and prevent serious damage to the financial organization.

Secure your closing capacity – act now!

Time is running out. Don’t let license violations, audit issues or incorrect financial statements put your organization at risk. Talk to our SAP consolidation experts today and develop your customized roadmap for a secure migration.