Preface

13

Objective of This Book

13

Target Audience

14

How to Read This Book

14

1 Introduction to Consolidation

17

1.1 Financial Consolidation Basics

17

1.1.1 Consolidation Steps

18

1.1.2 Consolidation Concepts

20

1.2 Why Consolidate Financials Data?

22

1.2.1 International Financial Reporting Standards

23

1.2.2 Generally Accepted Accounting Principles

23

1.3 Evolution of Consolidation with SAP Solutions

24

1.3.1 Financial Accounting: Legal Consolidation

24

1.3.2 Enterprise Controlling: Consolidation System

25

1.3.3 SAP Strategic Enterprise Management: Business Consolidation System

25

1.3.4 SAP Business Planning and Consolidation

26

1.3.5 Real-Time Consolidation in SAP S/4HANA

28

1.3.6 Group Reporting with SAP S/4HANA

30

1.4 Financial Close in SAP S/4HANA

31

1.4.1 Ledger Close

31

1.4.2 Group Close

34

1.4.3 Continuous Accounting Using Group Reporting

37

1.5 Summary

38

2 Group Reporting Architecture and Components

39

2.1 SAP S/4HANA Finance

39

2.1.1 Architecture

40

2.1.2 SAP Fiori

42

2.2 Group Reporting

44

2.2.1 Technical Architecture

44

2.2.2 Finance Analytics

48

2.2.3 Predelivered Content

59

2.3 Summary

80

3 Master Data

81

3.1 Global Settings

81

3.2 Group Reporting Preparation Ledger

85

3.3 Group Reporting Master Data

89

3.3.1 Consolidation Entities

90

3.3.2 Financial Statement Items

106

3.3.3 Breakdown Categories

122

3.3.4 Subitem Categories and Subitems

125

3.3.5 Consolidation Fields (Additional Fields)

131

3.3.6 Consolidation Versions

136

3.3.7 Document Types

142

3.4 Selections

153

3.5 Summary

155

4 Transaction Data

157

4.1 What Is the Data Monitor?

157

4.1.1 Layout

158

4.1.2 Tasks

160

4.2 Configuring the Data Monitor

161

4.2.1 Creating a Task

162

4.2.2 Assigning Tasks to Task Groups

163

4.2.3 Specifying Preceding Tasks

166

4.2.4 Custom Tasks and Custom Task Groups

166

4.3 Integrating Transaction Data

170

4.3.1 Universal Ledger

170

4.3.2 Flexible Upload

172

4.3.3 API Integration (Cloud Only)

177

4.3.4 SAP Group Reporting Data Collection

178

4.4 Plan Data Integration

193

4.5 Balance Carryforward

194

4.5.1 Setting Up Balance Carryforward

194

4.5.2 Executing and Validating the Balance Carryforward

199

4.6 Calculation of Net Income

201

4.7 Data Validation

206

4.7.1 Validation Rules

206

4.7.2 Validation Methods

211

4.7.3 Import/Export Validation Settings

214

4.7.4 Reported Data Validation

214

4.7.5 Standardized Data Validation

216

4.8 Journal Entries

217

4.8.1 Group Journal Entries

217

4.8.2 General Journal Entries

221

4.8.3 Release Universal Journal Task

224

4.8.4 Validate Universal Journal Task

225

4.9 Group Reporting Preparation Ledger

226

4.9.1 Benefits of the Preparation Ledger

227

4.9.2 Activating the Preparation Ledger

228

4.9.3 Configuring the Preparation Ledger

229

4.9.4 Deriving Group Reporting-Relevant Fields in Accounting

231

4.9.5 Data Quality and Realignment

232

4.10 Substitution and Validation Rules

235

4.10.1 Substitution Rules

237

4.10.2 Validation Rules

240

4.11 Summary

241

5 Currency Translation

243

5.1 What Is Currency Translation?

243

5.1.1 Currency Translation Basics

244

5.1.2 Currency Translation in SAP S/4HANA

247

5.2 Configuring Currency Translation

249

5.2.1 Exchange Rate Types

249

5.2.2 Exchange Rate Indicators

260

5.2.3 Currency Translation Methods

264

5.2.4 Consolidation Unit Method Assignment

271

5.2.5 Financial Statement Item Currency Translation Attributes

273

5.3 Translating Reported Currency

276

5.3.1 Execution in the Data Monitor

277

5.3.2 Validating the Execution

277

5.3.3 Reporting

278

5.4 Summary

282

6 Intercompany Elimination

283

6.1 What Is Intercompany Elimination?

283

6.1.1 Reporting and Financial Statements

284

6.1.2 Intercompany Profit and Loss Elimination

287

6.1.3 Intercompany Balance Sheet Elimination

288

6.1.4 Dividend Elimination

289

6.1.5 Inventory Elimination

290

6.2 What Is the Consolidation Monitor?

292

6.2.1 Layout

292

6.2.2 Tasks

293

6.3 Configuring the Consolidation Monitor

296

6.3.1 Reclassification Methods

296

6.3.2 Tasks and Task Groups

304

6.3.3 Defining Document Types

308

6.3.4 Custom Consolidation Monitor Tasks

312

6.4 Configuring Intercompany Elimination

317

6.4.1 Business Rules

317

6.4.2 Predefined Configurations

324

6.5 Eliminating Intercompany Transactions

325

6.5.1 Execution in the Consolidation Monitor

325

6.5.2 Validating Eliminations and Reclassifications

327

6.5.3 Reporting

329

6.6 Eliminating Intercompany Profit in Inventory

331

6.6.1 Execution in the Consolidation Monitor

333

6.6.2 Validating Eliminations Results

342

6.6.3 Reporting

343

6.7 Summary

344

7 Consolidation of Investments

345

7.1 What Is Consolidation of Investments?

346

7.1.1 Rule-Based Consolidation of Investments

347

7.1.2 Activity-Based Consolidation of Investments

352

7.1.3 Choosing a Method

355

7.2 Configuring Rule-Based Consolidation of Investments

356

7.2.1 Reviewing Consolidation Methods

356

7.2.2 Configuring Consolidation Groups

357

7.2.3 Modifying Predefined Configuration

360

7.3 Configuring Activity-Based Consolidation of Investments

364

7.3.1 Standard Settings

365

7.3.2 Reviewing Consolidation Methods

369

7.3.3 Configuring Consolidation Groups

375

7.3.4 Modifying Predefined Configuration

375

7.4 Running Equity and Investment Eliminations

387

7.4.1 Execution in the Consolidation Monitor

387

7.4.2 Validating Consolidation of Investments

389

7.4.3 Reporting

389

7.5 Summary

390

8 Consolidation Entries

391

8.1 Common Consolidation Entries

391

8.2 Journal Entry Template

394

8.2.1 Getting Started

394

8.2.2 Configuring the Journal Entry Template

397

8.2.3 Making Consolidation Entries

401

8.3 Summary

409

9 Matrix Consolidation

411

9.1 What Is Matrix Consolidation?

411

9.2 Configuring Matrix Consolidation

412

9.2.1 Parameters and Master Data

413

9.2.2 Business Rules

414

9.3 Running Matrix Consolidation

417

9.3.1 Managing Global Hierarchies

417

9.3.2 Reporting

420

9.4 Summary

423

10 Consolidation Reporting

425

10.1 Predefined Reports

425

10.1.1 Group Data Analysis

425

10.1.2 Drill-Through to Transaction Data

427

10.1.3 Predelivered Playbook

428

10.2 Reporting Rules and Reporting Items

433

10.2.1 Configuring Reporting Rules

433

10.2.2 Reporting Using Reporting Items

440

10.3 Additional Reporting Tools

442

10.3.1 SAP Analysis for Microsoft Office

442

10.3.2 SAP Analytics Cloud

452

10.4 SAP Fiori

460

10.5 Summary

464

11 Conclusion

465

11.1 Book Summary

465

11.2 Considerations for Your Group Reporting Journey

466

11.3 Five Key Takeaways

468