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

22

1.2.2 Generally Accepted Accounting Principles

23

1.3 Evolution of Consolidation with SAP Solutions

23

1.3.1 Financial Accounting: Legal Consolidation

24

1.3.2 Enterprise Controlling: Consolidation System

24

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

29

1.4 Summary

30

2 Group Reporting Architecture and Components

31

2.1 SAP S/4HANA Finance

31

2.1.1 Architecture

32

2.1.2 SAP Fiori

34

2.2 Group Reporting

37

2.2.1 Technical Architecture

37

2.2.2 Finance Analytics

38

2.2.3 Predelivered Content

48

2.3 Summary

68

3 Master Data

69

3.1 Global Settings

69

3.2 Group Reporting Master Data

72

3.2.1 Consolidation Entities

72

3.2.2 Financial Statement Items

79

3.2.3 Financial Statement Item Attributes and Hierarchies

83

3.2.4 Breakdown Categories

92

3.2.5 Subitem Categories and Subitems

93

3.2.6 Consolidation Fields (Additional Fields)

100

3.2.7 Consolidation Versions

103

3.2.8 Document Types

107

3.3 Selections

118

3.4 Summary

120

4 Transaction Data

121

4.1 What Is the Data Monitor?

121

4.1.1 Layout

122

4.1.2 Task

123

4.2 Configuring the Data Monitor

124

4.3 Integrating Transaction Data

130

4.3.1 Universal Ledger

131

4.3.2 Flexible Upload

133

4.3.3 API Integration (Cloud Only)

138

4.4 Plan Data Integration

139

4.5 Balance Carryforward

140

4.5.1 Setting Up Balance Carryforward

140

4.5.2 Executing and Validating the Balance Carryforward

145

4.6 Calculation of Net Income

147

4.7 Data Validation

152

4.7.1 Validation Rules

152

4.7.2 Validation Methods

156

4.7.3 Import/Export Validation Settings

160

4.7.4 Reported Data Validation

161

4.7.5 Standardized Data Validation

163

4.8 Journal Entries

164

4.8.1 Group Journal Entries

164

4.8.2 General Journal Entries

167

4.8.3 Release Universal Journal Task

170

4.8.4 Validate Universal Journal Task

171

4.9 Summary

172

5 Currency Translation

175

5.1 What Is Currency Translation?

175

5.1.1 Currency Translation Basics

176

5.1.2 Currency Translation in SAP S/4HANA

179

5.2 Configuring Currency Translation

181

5.2.1 Exchange Rate Types

181

5.2.2 Exchange Rate Indicators

191

5.2.3 Currency Translation Methods

194

5.2.4 Consolidation Unit Method Assignment

201

5.2.5 Financial Statement Item Currency Translation Attribute

202

5.3 Translating Reported Currency

206

5.3.1 Execution in the Data Monitor

206

5.3.2 Validating the Execution

207

5.3.3 Reporting

207

5.4 Summary

213

6 Intercompany Elimination

215

6.1 What Is Intercompany Elimination?

216

6.1.1 Reporting and Financial Statements

216

6.1.2 Sales and COGS Elimination

219

6.1.3 Inventory Elimination

220

6.1.4 Expense Elimination

221

6.2 What Is the Consolidation Monitor?

222

6.2.1 Layout

223

6.2.2 Tasks

224

6.3 Configuring the Consolidation Monitor

227

6.3.1 Reclassification Methods

227

6.3.2 Tasks and Task Groups

233

6.3.3 Defining Document Types

237

6.4 Configuring Intercompany Elimination

240

6.4.1 Business Rules

240

6.4.2 Predefined Configurations

248

6.5 Eliminating Intercompany Transactions

249

6.5.1 Execution in the Consolidation Monitor

249

6.5.2 Validating Eliminations and Reclassifications

251

6.5.3 Reporting

253

6.6 Summary

255

7 Consolidation of Investments

257

7.1 What Is Consolidation of Investments?

258

7.1.1 Rule-Based Consolidation of Investments

258

7.1.2 Activity-Based Consolidation of Investments

262

7.2 Configuring Consolidation of Investments

264

7.2.1 Reviewing Consolidation Methods

264

7.2.2 Configuring Consolidation Groups

269

7.2.3 Modifying Predefined Configuration

271

7.3 Running Equity Pickup

279

7.3.1 Execution in the Consolidation Monitor

279

7.3.2 Validating Consolidation of Investments

280

7.3.3 Reporting

281

7.4 Summary

282

8 Consolidation Entries

283

8.1 Common Consolidation Entries

283

8.2 Journal Entry Template

285

8.2.1 Getting Started

286

8.2.2 Configuring the Journal Entry Template

288

8.2.3 Making Consolidation Entries

291

8.3 Summary

297

9 Matrix Consolidation

299

9.1 What Is Matrix Consolidation?

299

9.2 Configuring Matrix Consolidation

300

9.2.1 Parameters and Master Data

301

9.2.2 Business Rules

302

9.3 Running Matrix Consolidation

305

9.3.1 Managing Global Accounting Hierarchies

305

9.3.2 Reporting

307

9.4 Summary

311

10 Financial Close

313

10.1 Ledger Close

313

10.2 Group Close

316

10.2.1 Period-End Close

316

10.2.2 Dependencies on Ledger Close

319

10.2.3 Continuous Accounting Using Group Reporting

319

10.3 Summary

321

11 Consolidation Reporting

323

11.1 Predefined Reports

323

11.1.1 Local (Preconsolidation) Reports

323

11.1.2 Group (Consolidated) Reports

324

11.2 Drill-Through to Transaction Data

326

11.3 Data Analysis Using Reporting Rules

328

11.4 Additional Reporting Tools

333

11.4.1 SAP Analysis for Microsoft Office

333

11.4.2 SAP Analytics Cloud

342

11.4.3 SAP Fiori

350

11.5 Summary

355

12 Conclusion

357

12.1 Book Summary

357

12.2 Considerations for Your Group Reporting Journey

358

12.3 Five Key Takeaways

360