Introducing SAP S/4HANA Finance for Group Reporting - innovative reporting logic.

New Group Reporting Logic refers to the latest reporting system that has been introduced, bringing with it numerous advantages.

The implementation of the new group reporting logic enables simultaneous support for legal and management consolidation, while also allowing for flexibility in re-organizations. Additionally, it includes matrix consolidation and parallel consolidation of diverse organizational characteristics.

The consolidated data comprises various perspectives, including:

In terms of group consolidation, the consolidation group consists of a list of assigned units with group-specific characteristics such as consolidation method, acquisition date, and divestiture date. These assignments and definitions for attributes can be created using either the Manage Consolidation Group Structure - Group View (New) app or the Manage Consolidation Group Structure - Unit View (New) app.

The hierarchical consolidation view utilizes the hierarchies of consolidation units, profit centers, and segments that are set up in the Manage Global Accounting Hierarchies app. For further guidance, please refer to the Define Hierarchies section for step-by-step directions.

By inputting the consolidation group and relevant hierarchies, you can obtain a consolidated view when creating a report with combined data.

All viewpoints access the same compiled information using varying dimensions and a unique reporting method. This new approach offers valuable supplementary assistance in achieving a cohesive set of data with a robust audit trail, tracing from the consolidated data of individual units to adjustments made on a unit level, eliminations between pairs, consolidation of investments, and potential modifications at the group level. Companies utilizing S/4HANA Accounting in their operations or implementing Central Finance within the same system will have an even more detailed audit trail beyond periodic balances. In these instances, customers can delve into the specifics of their local group balance and analyze details within Accounting.

To comply with statutory consolidated reporting requirements, familiarity with the consolidation group is essential. This is because the non-controlling interest (NCI) may vary between consolidation units within different consolidation groups, among other factors.

When it comes to management reporting, NCI tends to have less significance. This is because the main objective is usually to examine information at various levels of the organization, such as reviewing consolidated statements for any entity within a profit center hierarchy. Unlike profit centers, minorities and NCI are typically associated with legal entities instead of the profit center structure.

In the SAP enterprise structure, consolidation units correspond to companies in the integrated data transfer provided by SAP. Consolidation groups display statutory consolidated statements along with their connected consolidation units (also known as companies), and the applicable NCI is also presented.

When it comes to management consolidation and reporting, the primary concern is typically before calculating NCI and making group-dependent postings at posting level 30. This means that the consolidated income statement can be displayed at any hierarchical level for consolidation units, profit centers, and segments prior to including NCI. The only time you need to consider the consolidation group is when the final line of the income statement with NCI needs to be included.

These hierarchical structures, namely consolidation units, profit centers, and segments, can be customized to be time and version dependent. This means that for each of the three characteristics, multiple parallel hierarchies can be created as needed.

By using the consolidation monitor from a top-level group including all companies, all eliminations will be generated for every possible combination of consolidation units, profit centers, and segments (as long as there is partner information for each). The report now has the ability to instantly display data by incorporating the necessary eliminations based on the displayed organizational unit and its partner.

To access consolidation group dependent data (posting levels 30, 02, 12, and 22), you must choose a consolidation group when generating the report. As previously stated, the report can be run in three different views: a group consolidation view (using the "$" hierarchy for all dimensions if only viewing groups), a hierarchical consolidation view (with a "#" group), or a combined view (with a group other than "#" selected and a hierarchy other than "$" applied to one or more dimensions).

Since hierarchies vary depending on the timeframe and version, it is necessary to indicate a specific date for the hierarchy. This allows for the flexibility to display 2021 data using a hierarchy date from 2020, or vice versa.

Old Reporting Logic

Using the previous reporting logic, the sole factor that could be employed to choose accurate elimination postings was the consolidation group, comprised of consolidation units (or rather, companies within an integrated scenario).

As the "New Reporting Logic" feature in version 1809 did not include the ability to select on-the-fly elimination postings, an integration task was required. This task, known as "Integrate Data into Consolidation Group" or Task 2900 (task category 80), was utilized to populate records for a consolidation group.

Under the previous reporting system, consolidation groups were organized in a hierarchy. However, the updated reporting system utilizes a flat consolidation group structure. This new approach allows for reporting through three different organizational characteristics: consolidation units, profit centers, and segments.

When using the previous reporting logic for the consolidation monitor, one could view the consolidation group hierarchy within it.

The upcoming year will be incorporated into the global system settings, accessible through transaction code CXB3. Prior to the designated year, when utilizing global parameters, the old reporting logic must be utilized through Fiori apps. Beginning with the specified year, Fiori apps with the new reporting logic will be required.

Once the migration has been completed, there are a few steps that need to be taken.

Following the migration, these specific apps should only be utilized if global parameters have been established with a year prior to the activation of the new reporting logic.

• The display and modification of the consolidation group hierarchy.

• The Accounting Method Assignment allows for both displaying and modifying options.

• Viewing interunit reconciliation on a group level.

• All reports within the Group Reports category, except for Group Data Analysis and Group Data Analysis - With Reporting Rules.

When establishing global parameters for the activation of the new reporting logic, instead of using a specific year, the following apps should be utilized.

• The Group View of Manage Consolidation Group Structure is utilized for assigning consolidation units and their methods to the consolidation group.
• The Consolidation Group Structure Management - Unit View can serve as an alternative to the previously mentioned method. However, it requires individually selecting each consolidation unit, assigning a method to it, and then designating it to the appropriate consolidation group.
• Data analysis conducted in a group setting.
• Conducting Group Data Analysis using the Data Analyzer tool.
• Utilizing Reporting Rules for Group Data Analysis
• Data Analyzer for Group Data Analysis, including Reporting Rules.
• Group financial statements of the group

Please note that data will only be migrated starting from the specified year during the balance carry forward execution. Any consolidated data prior to this year will not be migrated and you will need to refer to the previous group reports such as Group Data Analysis and Group Data Analysis - With Reporting Rules. For subsequent years, please use the new group reporting tools instead. The Data Analysis app should not be used as it does not support the updated group reporting logic and will only display consolidation groups from the old system.

It is important to keep in mind the aforementioned factors when using your personalized Group Reporting reports on MS Analysis for Office or SAP Analytics Cloud.

The new group reporting logic now offers a flat list of consolidation groups, removing the need for consolidation group hierarchies. Further information can be found in Knowledge Base Article (KBA) 2946165.

Upon converting the system from the old reporting logic to the new, automatic inheritance of manual postings from group-dependent levels to higher-level consolidation groups no longer occurs. This is due to the fact that data and reporting for consolidation groups are now viewed as a flat structure.

Consequently, level 30 manual postings must be entered individually across every higher-level consolidation group.

Please be aware that this will not only impact postings containing amounts in the currency of the group at posting level 30, but it will also have an effect on manually entered group share postings at that same level. Under the previous reporting system, only the change in group shares needed to be recorded when transitioning from a lower-level to a higher-level consolidation group within a hierarchy. However, with the updated reporting logic, the complete relevant group share must now be entered for each consolidation group.

Furthermore, it may be beneficial to limit the number of consolidation groups, as the ability to establish hierarchies for three characteristics - namely consolidation units (companies), profit centers, and segments - is now available. This means that the number of consolidation groups could potentially coincide with the required amount of statutory consolidated statements.

In terms of process, the consolidation group field in global parameters can be left empty. By doing so, all consolidation groups will be displayed in the monitoring system. From there, you have the option to choose one specific group. This function is beneficial if you are solely accountable for a single group or prefer to focus on one at a time.

Please note that following system conversion, it is important to refrain from altering the group structure until the new reporting logic is activated. The initial period in which a consolidation unit becomes part of the group structure will also be the first period of the new reporting logic.