S/4 HANA Group Reporting

and Consolidation
-BBP Sessions
 Topics Consolidation Flow
Key Capabilities
S4 HANA For Group Reporting
Master Data Fiori UX
Organizational Elements
Data Preparation
Currency Translation
Intercompany Elimination Closing
Questions and Answers

Agenda
Key Capabilities
 Local and Group Reporting in the same tool
 Flexible rules for Data Validation
 Currency Translation
 Inter-Unit /Company Elimination
 Data Collection options –Flexible Upload of Reported Financial Data, or Other SAP
or Customer applications.
S4 HANA For Group Reporting
Master Data
• Organization Units
• Consolidation Groups
• A consolidation group is a user-defined group of consolidation units created for
consolidation.
• Consolidation Units
• A consolidation group is a user-defined group of consolidation units created for
consolidation.
• Consolidation Chart of Accounts
• A consolidation chart of accounts (COA) is a systematic grouping of financial statement
(FS) items that belong together and are used for group reporting.
Organizational Elements
• Financial Statement Items
• Financial statement (FS) item represents the fundamental account assignment in the consolidation
system. It forms the basis for consolidation data collection, posting, and reporting along the
consolidation process.
Types of the Item – Classification on the basis of Nature of the Item
• INC: Income items in P&L statements
• EXP: Expense items in P&L statements
• AST: Asset items in balance sheets
• LEQ: Liabilities and equity items in balance sheets
• STAT: Statistical items that can be used to record financial and non-financial data..
• REPT: Reporting items that are used in reporting. Dedicated hierarchies can be defined for reporting
items, and respective reporting rules can be defined to derive values of the reporting items.
Data Preparation – Month End Activity
In the data preparation phase, reported financial data from consolidation units are collected,
validated, and adjusted.
Group Reporting uses two monitors:
1. Data Monitor: Local & Consolidation unit relevant tasks.
2. Consolidation Monitor: Group & Consolidation group relevant tasks. Task groups are pre-
delivered, and you can create your own.
• The monitors are used to:
• Run month-end closing tasks.
• Check the status.
• Ensure a logical sequence and data consistency.
• Provide a one-stop for all closing activities.
.
 Currency Translation –Month End Activity

 When a company has 1 or more subsidiaries, it is under a legal obligation to prepare the consolidated
financial statements (CFS).
 There can be 2 cases while preparing the CFS
• Holding and subsidiary has same reporting currency
• Holding and subsidiary has different reporting currency
 For case 1 it is simple – we can combine the values and prepare CFS.
 To prepare CFS for case 2, we will have to translate the Financial statement of a subsidiary company
into Holding company currency and then start the consolidation activities, such as elimination of
intercompany transactions, share capital, investments, goodwill calculation, etc.
 During the part of this translation, there might be a chance of rounding differences. These rounding
differences are adjusted to Currency Translation Adjustment (CTA) account.
Intercompany Elimination
 Intercompany Elimination refers to excluding of / removing of transactions between
the companies of same consolidation group from the Consolidated Financial
Statements. The reason for doing so is to reflect the financials that would appear as
if all the legally separate companies were a single company.
 Intercompany Elimination is achieved by the reclassification function with
following Reclassification Tasks in Consolidation Monitor;
 Inter Company Elimination – Sales
This task performs elimination of internal gross profits between units in the
consolidation group, which exist, for example, if goods or service transactions take
place between consolidation units.
 Inter Company Elimination – Other Income/Expense
This task performs the elimination of other income and expenses in the Profit and
Loss (P&L) statement.
 Inter Company Dividends Elimination
This task eliminates the dividends received from a consolidation unit belonging to the same
consolidated group.
 Inter Company Elimination – Balance Sheet
This task performs the balance sheet elimination.
Inter Company Elimination – Sales
• This task performs elimination of internal gross profits between units in the
consolidation group, which exist, for example, if goods or service transactions take
place between consolidation units.

• Partner Consolidation Unit : Means Intercompany Sales Consolidation Unit i.e.,

Company which receiving goods .

Triggering Item
FS Item with Elimination Selection + Partner Cons. Unit + Elimination Target (412100 – Changes in
Inventory)

Elimination Entry
Document Type 2E | Posting Level 20
Inter Company Elimination – Sales
• The elimination entry removes IC sales from the Cons. Unit (Vendor) and IC purchase from
the Partner Cons. Unit (Customer). Effectively, removing IC sales (revenue) and IC
purchase (expense) from the Consolidated P&L statement.
Consolidation Flow
 Fiori UX
 Balance Sheets - By Consolidation Units (Design Studio)
 Helps to Business Analyst - Group Reporting
 For the specified year and periods, the report displays amounts of all balance sheet
accounts in the local currencies and group currency by your specified consolidation
units.
 Fiori UX
 Consolidated Balance Sheet - By Movements (Design Studio)
 Helps to Business Analyst - Group Reporting
 For the specified year, period and consolidation group, the report displays amounts of all balance
sheet accounts in the group currency by subitems within Subitem Category of Transaction Types
(also called movements).
 Fiori UX
 Consolidated P&L by Nature - By Subgroups (Design Studio)
 Helps to Business Analyst - Group Reporting
 For your specified year and period, the report displays amounts of all P&L accounts in the group
currency by subgroups under specified consolidation group.
 Fiori UX
 Consolidated P&L by Function - Year Comparison (Design Studio)
 Helps to Business Analyst - Group Reporting
 For your specified consolidation group and posting period, the report displays year-to-date (YTD)
amounts of all P&L accounts in the group currency for both the specified fiscal year and its prior year.
Thank you
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