An Overview of Group Reporting in SAP S/4 HANA

1909
 April 16, 2020

SAP S/4 HANA Group Reporting Suite

SAP Group Reporting provides a seamless process between the local and group closing activities
since both are in the SAP S/4HANA Core. Both local and group closing activities utilize the same
database and user interfaces as well. This speeds up the closing process to provide more time to
analyze and act upon the results.

SAP S/4HANA Group Reporting (Financial Consolidation) plays a vital role in providing information to
the business. Customers can perform consolidation tasks in real time and also provide a detailed
perspective of the business at any point in the period. It also helps in bringing consolidations and
planning together in a single application. Companies benefit from accelerated book closing processes.

The left side box shows SAP Group Reporting Data Collection Box. It is a cloud-based solution and is
available for on-premise and cloud solutions. It helps to access data that is not in S/4HANA and for
data Transformation. The Group Reporting Suite has more than a consolidation engine. It is not a
legal successor of any existing SAP Consolidation application.

What is the Group Reporting Data Model?

Actual postings are stored in Universal Journal Entry Table: ACDOCA –

Plan data is stored in Plan Data Line Items. : ACDOCP –
SAP Universal Consolidation Journal Entries stored in ACDOCU -.
The data is stored on a periodic basis.
Total Fields in ACDOCU = 104

FINCS* Tables for Group Reporting

How does Group Reporting help?

SAP Group Reporting helps to consolidate Financial Data that is stored in different business units in
several systems scattered in different locations. Once the data is collected, customers will be able to
do the Consolidation.

“SAP S/4HANA Finance for group reporting” helps users with many of the out-of-the-box features
(pre-configured content) for its Customers. They can make their own customizations and configuration
settings based on the content delivered by SAP. This content helps customers to accelerate the
Group Reporting implementation process. Customers can copy and make changes or will be able to
use the content as is. The delivered content includes: , Master data, Consolidation chart of accounts,
Mapping of g/l accounts to fs items , Document types, Currency translation methods,
elimination(reclassification) methods, Validation methods , Data monitor and Cons monitor task
groups SAP Fiori roles, sample Reports, CDS views and queries and so on.

How do Group Reports appear?

Group reports have similar structures as entity wise local reports. The major differences is the data
source and displayed currency. Group reports display the data from the perspective of the
consolidation group. A Consolidated Balance Sheet Report is provided out of the box.
The following consolidated P&L statements are provided out of the box:

What is the Consolidation Roadmap for SAP S/4HANA Customers?

For SAP S/4HANA customers on 1610 or 1709 BPC RTC is supported alternative.
For SAP S/4HANA 1809 and 1909 SAP S/4HANA Finance for group reporting
For SAP S/4HANA Cloud Customers For SAP S/4HANA cloud for GR is available from 2017 May

Can I get SAP S/4HANA Group Reporting directly after I upgrade my SAP S/4HANA 1610 (or
1709) to 1909?

Per SAP Note 2841647 , New Group Reporting Logic is only activated by default when release 1909
is installed. To activate the New Group Reporting Logic after a system upgrade to 1909 you must
open a customer message on SAP Service Marketplace on the FIN-CS-COR-MD component.

How do I implement Group Reporting in SAP S/4HANA?

To implement SAP S/4HANA Finance for group reporting, SAP recommends customers install the
SAP Best Practices configuration content — scope item 1SG for the solution. You will get a baseline
configuration for SAP S/4HANA Finance for group reporting which customers can adapt to their needs
in customizing.
Option 2:
If your customer doesn’t want BP content they can run an initialization program to create the minimum
system settings that are needed to use the solution.

To start the initialization program,

IMG > SAP S/4HANA for Group Reporting under Global Settings for Consolidation -> Initialize
Settings.
Note: You cannot run the initialization program if you have already installed the BP content

An Overview of the Consolidation Process

Generally, Consolidation process starts with preparatory steps such as setting global parameters >
checking the master data of organizational units > financial statement (FS) items > specifying effective
exchange rates.

After that, you can proceed

with collecting data reported
by consolidation units.

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.

The data monitor helps to display the hierarchy of organizational units all the way down to the level of
the consolidation units. This means that customers can run the tasks for the consolidation groups as
well as the consolidation units.
Data monitor helps to run the activities for collecting and preparing the financial data reported by your
consolidation units. These activities are called tasks.
The tasks of the data monitor are predefined and ready to use. The system manages the status of the
tasks and thus ensures a logical sequence and consistent data. The tasks of the data monitor are
predefined and ready to use.

When the data is ready for consolidation, we open consolidation monitor to perform the consolidation
tasks like Inter unit elimination of gross profit, Interunit elimination of other income/expense ,Dividends
elimination Interunit elimination of balance sheet, Consolidation of Investments like Investments/equity
elimination, Total divestiture etc.

Consolidation Process

In the consolidation phase, the following tasks are to be performed to process data for group reporting
purposes:
• Automatic interunit eliminations using the reclassification function
• Manual eliminations
• Manual posting for changes in group shares
• Integration of transaction data into consolidation groups

How do Plan Consolidations work?

Plan consolidations work with SAP Analytics Cloud. It allows customers to prepare and consolidate
plan data. Plan consolidation is based on the integration between SAP S/4HANA Finance for group
reporting and SAP Analytics Cloud.

Export the planned transaction data to the ACDOCP table to run consolidations. For group reporting,
ACDOCU table reads data from the Plan Data Line Items table
On completion of planning, send the plan data to the Plan Data Line Items (ACDOCP) table and make
the data available for consolidation. Then Run an end-to-end consolidation process.
Once you have prepared your data, you can run the consolidation process including currency
translation, intercompany and investments eliminations, and reporting.

In IMG, we define versions for plan consolidations

Configuration of Group Reporting is a broad subject. In this article I would like to share my experience
in some of the configuration points.

1. Assign Roles to your user Id

Most of the SAP S/4HANA Group Reporting activities will be executed using SAP Fiori applications.
Consultants and users should have enough and proper roles assigned to their user Ids. By assigning
roles and authorizations in SAP Fiori front-end server and back-end systems , they will be able to do
it. It also helps to limit the scope of action of individual users in the system. So You have set up the
proper authorizations for User ids according to their job responsibilities. Here are some of the SAP
delivered roles for your reference.

2. Some of the SAP Fiori Applications for SAP S/4HANA Finance for Group Reporting:

Consolidation settings:
Data Collection apps:

Consolidation Master Data applications

Intercompany Matching Settings:

To define matching rules and methods, maintain variance adjustment workflows, manage teams and
responsibilities for workflow scenarios and communication, Below are the Fiori applications
Intercompany Matching operation:

To view or change matching rules and methods, run matching, adjust auto matching results, display
matching items, delete documents, schedule matching run jobs and view adjustments postings, below
are SAP Fiori Applications

Intercompany reconciliation settings

To define reconciliation cases and to manage organizational unit hierarchies

Intercompany reconciliation operation:

To display overall reconciliation status and reconciliation balance details, adjust auto matching results,
to view matching items based on reconciliation case, below SAP Fiori Applications
3. What are the Basic Global System Settings for Group Reporting ?

Global settings are the default settings, that are pre-set. You can see at Transaction code CXE9N

Check Global System Settings

No changes are usually needed for standard settings.

4. Master Data and structures

Do I need to Define Consolidation Ledgers?

To use SAP S/4HANA for group reporting, we have to define consolidation ledgers for storing
alternative group currencies and for assigning alternative accounting source ledgers and source
currencies. Based on the customers’ requirement, define one or more standard ledgers for
consolidation.
If you want to consolidate one consolidation group in USD, and another in EUR, you will need two
ledgers – one with ledger currency USD and one with ledger currency EUR.
0L : Leading ledger & Ledger Currency is Group Currency
Two ledgers are delivered : Y1 Consolidation Ledger & Y2 Consolidation Ledger USD
Multiple ledgers are needed for multiple currencies ( 1:1)
If you want to define your own ledger, you can define do so. It must start with the letter C, otherwise
you will receive the below error.

How does data post to Consolidation ledger?

There are different ways. One of them is when users release the data from ACDOCA , Consolidation
Ledger Updates ACDOCU table; See below Ledger Y1 updated.
What is Consolidation Dimension?

The consolidation dimension is a configuration object. The delivered dimension = Y1 (company).

Versions
Version is Category. ( Plan / Actual )
The main delivered version is Y10.
Setting for Plan Consolidation:
The below is the example for Plan Consolidation version
How do we define Consolidation Chart of Accounts?

Y1 is the delivered Consolidation chart of accounts

The maximum length is 10 characters.

The Consolidation chart of accounts contains FS Items. When FS item is double-clicked we will be
able to see attributes of the FS Item. (Example : Asset Account, Etc)

Customers can create their own COA or modify FS Items in Y1.

On the SAP Fiori launchpad “Manage Global Accounting Hierarchies” can be seen.
In this Fiori app, you can see that FS items are managed as hierarchies like Assets and Liabilities and
can also see Breakdown Categories.

Manage breakdown categories and subitems

Breakdown categories (BDC) are used to control subitem and other sub assignments for transactional
data.
Please Note : When fs items are uploaded, the breakdown categories are included. If in any case, a
breakdown needs to change, the fs item file needs to be uploaded again.
Every FS item is assigned to a Breakdown category. You can see this below.

Each breakdown category refers to one chart of accounts, version, and period

5. How to Configure the Data Monitor

Configuration and Setting up the Data Monitor is a pre-requisite. By installing Best Practice Content
you can make changes wherever needed as per the customer’s requirements.
Once we configure Data Monitor we have different options of collecting the data for consolidation.
Here, I am just specifying two options.
1. Releasing Data
2. Uploading Reported Financial Data
3. Post Group Journal entries
4. APIs ( import and update)
Global Parameters.: CXGP

Following are some of the Basic Configuration steps in SPRO

The data monitor depends on a task list and an organizational structure.

The tasks of the data monitor are predefined. S10 and S20 are delivered Task Groups
We will assign tasks to the Task Group, and then Assign Task Group to Dimension

Data monitor view is by default display based on task group configuration of the above screen. See
left side Data monitor and right side Tasks in the Task Group.

For every task, the preceding task is to be specified as shown below. Task 1020 is the preceding task
for 1030. Similarly, for other tasks the preceding tasks are to be specified.

The data monitor tasks are defined here

Data Monitor: CXCD

You can also see data monitor in SAP Fiori App in Consolidation Data Preparation Group.

Once Data Monitor Related configuration is completed the User will be able to release SAP S/4HANA
Data for Consolidation (ACDOCU).

How Do I release Financial Accounting Data to ACDOCU?

Users have to release new postings from ACDOCA to SAP S/4HANA Finance for group reporting
(ACDOCU). This control mechanism prevents unwanted data from becoming available to group
reporting. To be able to release, the period should be open
Example for Manual release
Post a document using FB50

Then Data Release from Universal Journal.

Go to Data Monitor CXCD > Select the Unit from which you want to release the data to ACDOCU and
click on update run

Then select the row and click on Reported financial data

Then save it
You can see the status

We will be able to see an update like below:

Important Points:

1. We can release Financial Documents from ACDOCA multiple times in the current period.
2. Once period closing is done, data release should be run for the last time for that period. Then you
can block the task.
3. When transferring financial data from ACDOCA to group reporting , the system derives the posting
period based on the accounting posting date and the period definition of the assigned to the Fiscal
Year variant.
4. You can only release data from the accounting period that corresponds to the consolidation period
in which the release task is executed, provided that the accounting period is still open.
Once Data is Released from ACDOCA to ACDOCU you will be able to see in the Consolidation
Balance sheet.
Can I delete the data released from ACDOCA to ACDCOU?
You cannot delete the data.
Open app Balance Sheet by Consolidation units
Method 2: Uploading Financial Accounting Data using Flat files (Flexible Upload)
In my experience, this method is quick and easy. You will be able to import periodic data or year-to-
date data. You can import for one period or for multiple periods and you can also import for one or
multiple consolidation units.

Please find file format below from SAP Note 2659672

Steps:
1. Use the attached flexible upload template file from SAP Note 2659672 and replace the example
figures in row 10 with your own data.
2. Then access the Flexible Upload of Reported Financial Data app or GUI Transaction code. Then
select the upload method SRD1 (with Tab as the field separator) or SRD2 (with semicolon as the field
separator), and select the Excel file in Physical File Name.
Once file is ready go to transaction code CX25 or SAP Fiori app

Before you upload the file ensure all the periods are open as per file data. Unblock the task data entry
for all the periods and respective consolidation unit.

If you have new data the file can be imported again. There are delete and overwrite modes – use the
correct option as per your business need.

This flex file upload uses posting level 00 and document type 00
3. APIs to transfer financial data to SAP S/4HANA Finance for group reporting.
One of the options to update ACDOCU is API.
To set up APIs, see the set-up guide attached to the SAP Note 2659672
Please find below IMG for configuration

With this, customers can import Financial Accounting data of one or multiple consolidation units to the
SAP S/4HANA system.

Customers can configure API using the below

The API will appear when Data collection is run from the data monitor6 Data Validation

6. How to check integrity of the Financial Accounting Data to be moved to ACDOCU

Example of Accounting Document:
Debit : Cash Account
Credit : Revenue Account
Validation of Universal Journal checks if errors exist in universal journals in the form of missing or
incorrect sub-assignments for fs items
Validation of Universal Journal will also detect out-of-balances.
If there are any missing mappings between GL accounts and FS items, during data release it throws
an error.
For this, customers have to create validation rules.

We create a Rule as shown below

After giving Rule ID and other rule attributes like below, we will save the Validation rule

Then, Validation Method is to be created using Define Validation methods app

Then, Assign Validation method to Consolidation Unit using Assign Validation methods App.

Then Assign Validation task to the Task Group

Conclusions:

SAP S/4HANA Finance for Group Reporting customers have to know the important pre-requisites for
the implementation of the Group Reporting in SAP S/4HANA from Experienced Group Reporting
Consultants. Consultants working on this will demonstrate different aspects and methods in data
collection such as Manual Release, Flexible file uploads etc and will let their customers know General
Points, Validation points, Analytics Etc. Group reporting provides a seamless process between the
local and group closing activities and helps in completing the consolidation process.

About the Author:

Dr. Ravi Surya Subrahmanyam is a technical and financials writer with a background in SAP Financial
Accounting, Funds Management, Financial Supply Chain Management, Cash Management & in-
house cash, SAP S/4 HANA Finance, RAR etc. He has been working as a Director for the SAP
Practice for the Hackett group India Ltd, GDC- India. He completed his Master’s degree in Finance
from Central University, Master of Commerce from Osmania University, Master of Commerce from
Andhra University, and Ph.D.in Finance from one of the best universities in India. His research papers
have been published in national and international magazines. He has been a Visiting Instructor for
SAP India Education and SAP Indonesia – Education. He has been working on Conversion and
Upgradation projects and is a Certified Solution Architect for SAP S/4 HANA and an SAP S/4 HANA
Certified Professional. He can be reached at sravi@answerthink.com

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