SAP S/4HANA Cloud for Group Reporting 2002 Feature Deck SAP S/4HANA Product Engineering February 2020

SAP S/4HANA Cloud for group reporting 2002 Feature Deck SAP S/4HANA Product Engineering February 2020

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The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related document, or to develop or release any functionality mentioned therein. This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Author SAP S/4 Product Engineering

Revision February 2020

About This document highlights the key new features of SAP S/4HANA Cloud for group reporting, release 2002. It is non- exhaustive and cannot be used as a training document as is.

▪ Overview, release independent

▪ Feature list in release 2002:

– Extension of table ACDOCU

– Time & version dependent FS item attributes

– Enhancement on calculation of ANI (Annual Net Income)

[cloud] [cloud] SAP Group Reporting SAP Analytics Data Collection Cloud

AVAILABLE NOW AVAILABLE NOW

[cloud / on-premise] SAP S/4HANA Accounting and Consolidation

AVAILABLE NOW [cloud/on-premise] [cloud] SAP or SAP disclosure third party apps reporting

FUTURE FUTURE

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ǀ MORE: https://blogs.sap.com/2019/05/13/sap-s4hana-finance-for-group-reporting-product-strategy/ 6 Target architecture New quality of integration between local close and group close

SAP Analytics Cloud Cloud Dashboarding | Analytics | Planning

SAP S/4HANA for Group Reporting ▪ Ensure data quality Cloud and on-premise continuously SAP Group Reporting Consolidation / Group close ▪ Accelerate your group close Data Collection Cloud process Package entry | Data Mapping | immediate access to new data

Non-Financials | Notes Reconciliation Accounting / Local close & Matching IC ▪ Transparency and auditability drill-down from consolidated financial statements to any detail

Central Finance

Non Non Non Non SAP SAP SAP SAP SAP SAP Integration via API‘s, flat SAP SAP SAP SAP ERP ERP ERP ERP ERP ERP file or via Central Finance ERP ERP ERP ERP

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ǀ MORE: https://blogs.sap.com/2019/05/13/sap-s4hana-finance-for-group-reporting-product-strategy/ 7 Simplification of group reporting in SAP S/4HANA (cloud and on-premise)

LEGACY LANDSCAPE S/4HANA LANDSCAPE

Financial consolidation/Group close SAP S/4HANA Finance for group reporting

R R R R Consolidation/Group close [ACDOCU]

Data warehouse Accounting/Local close [ACDOCA] CSV CSV R R R

ETL tools

R R R R R

Other SAP SAP SAP Other Other SAP SAP SAP Other ERP ERP ERP ERP ERP ERP ERP ERP ERP ERP

Data model Master data content

Global parameters / reporting event FS items - Version, CoA, ledger, year, period - Chart of Accounts - Functions controlled through attributes Documents - Posting level, document types Subitems- transaction types - Document number, … - All B/S accounts - Local currency, group currency, transaction currency, quantity - Integration with accounting consolidation transaction type Consolidation organizational objects - Consolidation group (representing the legal group) Subitems - functional areas - Consolidation units (companies) - All P&L accounts for I/S by functional area (Cost of Sales) - Partner unit - Integration with accounting functional area FS item/ consolidation characteristics Cons Units, Partner Units, Cons Groups - FS items - Sample set for testing, demo and customer evaluation - Subitems / subitem category - Set of companies that exist in accounting + some for flexible upload Additional characteristics - Unified accounting & consolidation master data on objects such as GL Additional characteristics account, profit center, cost center, profitability accounting objects, etc. - Sample master data - Hierarchies Reporting items “Virtual” characteristics, i.e. calculated at report run time - Master data for I/S by functional area, Cash Flow, Statement of changes - Reporting items in Equity, etc. - Elimination dimensions for cons units / segment / PC

Every data record is assigned to a document type with user, date/time of entry information. Each document type is assigned to a posting level.

Consolidated data

Standardized data

Reported data

Posting levels Auto only Relation for reporting logic or PCC Blank Accounting data (actuals, plan) 0C Corrections to accounting data (combined consistency check with blank) 00 Reported data (file, manual data collection, API) Cons Unit 01 Corrections to reported data carried forward to 00 10 Adjustments to reported data 0T Rounding from Currency Translation  20 Eliminations Pair (Cons Unit + Partner) 30 Consolidations Cons Group 02, 12 Preparation of changes to the consolidation group  Cons Group + Cons Unit Pair 22 Preparation of changes to the consolidation group 

Data monitor functions Corporate / Group view ▪ Balance carry forward ▪ Release accounting docs (ACDOCA, ACDOCP) ▪ Data collection (Flexible upload, API, GRDC input reports and mapping) ▪ Validation universal journal (consistency on accounting data) ▪ Calculation of Net Income (LC) ▪ Validation of reported data (LC) and standardized data (GC) ▪ Manual standardizing entries (PL10 / LC + GC) ▪ Currency translation • Delivered content: Single company view ▫ Y0901: Standard YTD ▫ Y0902: Keep GC value from S4; B/S retranslate @ closing ▫ S0901, S0902: period of acquisition (YTD / periodic) ▫ S0903: Standard periodic

▪ I/C Reconciliation (Fiori tiles, not integrated in the monitor) – >=1908 / 1909 IC matching and reconciliation solution – <1908: IC report company level – < 1902: IC report company level, group level

Consolidation monitor functions Single sub-group view ▪ IC P&L Sales & COGS one-sided (one-sided) ▪ IC P&L other income / expense (two-sided) ▪ IC Dividends (one sided triggered by receiving company) ▪ IC Eliminations B/S (two-sided) ▪ Manual Eliminations Entries (PL20) ▪ Preparation for Cons Group Changes ▪ Manual Consolidation Entries (PL30) ▪ Validation of Consolidated data

Options for group shares and Consolidation of Activity based COI Investments (COI) (as alternative option to rule-based) 2 alternative options for COI which can be setup in the monitor ▪ Activity-based COI – Requires tasks 2101 Activity Based COI – Can use task 2141 to post group shares to statistical FS items (optional for information purpose in analytics) ▪ Rule-based COI Rule based COI – Requires tasks 2100 Investment / Equity elimination (incl. NCI, dividends, change in equity, change in ownership %), 2180 Total divestiture – Enter group shares with task 2140 or calculate group shares with task 2141 based on direct shares entered through flat file

1. Load reported data w/o ownership (DT “00”)

2. Load investment related data incl. ownership percentage A Direct share % as a metric of investment account ; reverse data loaded in step 1. above (DT “0B”), or B Post group share % to FS item S00001 (PL 30) for rule based CoI

3. (optional) Run calculation of group share in the monitor if step 2.A. above is chosen and rule based CoI is adopted-> the task will update FS items $000000SHG , $000000SHD, etc.

4. Run consolidation of investment A Rule based (based on reclass. method) or B Activity based (built-in logic based on automatically calculated group share %)

² 5. (optional) If adjustment of group share is needed, repeat step 2. onwards above

The most important logs are integrated into this app: ▪ File import ▪ API ▪ Journal import (manual journals) ▪ Currency Translation ▪ Validation ▪ Reclassification (consolidations)

Reported data Other posting levels All posting levels (posting level blank or 00)

▪ Accounting integration ▪ Manual group journals ▪ Copy transaction data – Postings in accounting ▪ File import from Manual Group – Accounting file import actuals Journals journals – Central Finance scenario – Accounting file import plan line-items – SAC integration plan line-items ▪ (Flexible) File import to group reporting – From monitor – From App (e.g. to load data on multiple periods) ▪ Group Reporting Data Collection (input reports, mapping file import) ▪ API

What is the impact of a new release since the last release?

Have there been late- What will be coming documents in my numbers if I previous periods in accounting since the release now? last release in group reporting?

Release time- stamp = cut-off time stamp

SAP Group Reporting Data Collection (GRDC) In S/4HANA Finance for group reporting, the is the set of apps in S/4HANA Finance for GRDC apps replace all kinds of spreadsheet group reporting that are designed for: and email driven processes, hence covering ▪ The decentralized manual collection of data collection and mapping scenarios for heterogeneous and supplemental data along financial consolidation, statutory reporting, corporate structures budgeting & forecasting, margin controlling, risk management, strategy management, tax ▪ The transformation and load of data in filing and sustainability reporting. ACDOCU either from an external ERP system or from the ACDOCA table. From a technology standpoint, GRDC is developed on the SAP Cloud Platform (SCP) GRDC includes 2 main feature sets: and integrates with S/4HANA Finance for ▪ Manual data collection group reporting via our Fiori launchpad. ▪ Data mapping (i.e. ETL)

SAP Cloud Platform

Group Reporting Data Collection

Map & load data Manual data apps collection apps

Destinations

Cloud SDK

Cloud Connector

Accounting & Consolidation Accounting & Consolidation [ACDOCx] [ACDOCx]

S/4HANA On-premise* S/4HANA Cloud

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *Important note: the connectivity with S/4HANA on-premise is planned to be made available on Q1-2020 18 Fundamental concepts Group Reporting Data Collection (GRDC) / Fiori launchpad integration

Group Reporting Fiori launchpad

Group Reporting Data Collection tiles

Use case Extensibility feature description Calculation of net income Eliminations Balance carry forward Validations

Users need to be able to upload, process and report data considering additional extended fields that SAP doesn’t provide in standard transactional table ACDOCU

The new extended fields need to be customizable, so that they can be used for storing various value types in various business contexts

Use case Extensibility feature description Calculation of net income Eliminations Balance carry forward Validations

▪ Field extensibility feature provides ability to extend e.g. Region of the Customer fields the model of Group Reporting by new fields that customer SAP doesn’t provide in standard transactional table ACDOCU

▪ Users are able to define their own fields with various parameters and enable them for usage in Additional fields e.g. Customer, cost desired UIs and Reports (pre-delivered) center, etc. e.g. Consolidation ▪ Goal of implementation in Group Reporting is to Special GR role adopt the S/4HANA extensibility framework, i.e. Unit, FS item, subitem, fields Partner Unit, etc. extended fields behave in the same way as “additional fields” during upload, processing and reporting

1 In the New Field dialog user can select appropriate Business Context and Type of the extended field

2 Label, Identifier and Tooltip are 1 customizable

2 3 According to the parameters configured by user, Business Context Capacity 1 consumption is displayed 3

After the extended field is created and published, it can be enabled for usage in desired UIs and Reports

Use case Extensibility feature description Calculation of net income Eliminations Balance carry forward Validations

When financial data include values for the extended fields, these values are processed by the consolidation functions as described in columns (2) & (3). When Selections are used by consolidation functions to select data, column (4) indicates whether extended fields can be included in these Selections.

Functions Values on extended fields are Values on extended fields are Extended fields can be included kept in the posted documents not kept in the posted in the Selection as part of the documents method definition

(1) (2) (3) (4) Calculation of net income X -

Currency translation X No

Reclassification X Yes Preparation for consolidation X - group changes Balance carry forward X - X X Activity-based consolidation of (investments, equity, non (differential item, non controlling No investments controlling interest in equity) interest in net income)

Use case Extensibility feature description Calculation of net income Eliminations Balance carry forward Validations

▪ When defining validation rule, the extension fields are also available for definition. You can include the fields as part of the selection and choose the selection value in the rule or assign the field standalone for “Where” operand. ▪ During validation, system will then select documents and apply the rule accordingly.

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 31 2002 Release Time and Version Dependent Financial Statement Item Master Data Time and version dependent FS Item master data Contents

Motivation and scope of time and version dependent FS Item master data Master data maintenance and upgrade Consumption of time and version dependent FS Item master data

Motivation to introduce time and version dependency to FS item master data:

➢ Especially with the introduction of the FS item selection and target attributes the question of time and version dependency became more relevant because there are many use cases for different attribute value assignments for these attributes …

➢ … in different versions (e.g. different granularity in a multi-year planning version compared to a more detailed granularity in a version used for one year planning; short term forecasting may require different “Planning Target Attribute” values in different consolidation versions)

➢ … over time (e.g. changes in the chart of accounts may require respective changes of the “Elimination Target Attribute” value of an FS item over time).

➢ So far only some of these use cases could be realized indirectly, e.g. via time dependent assignments of methods. Therefore introducing time and version dependency directly in the FS item master data goes along with the general ambition to separate/decouple customizing (e.g. of rules) from master data maintenance.

➢ In addition, time and version dependency is a pre-requisite for future developments such as master data life cycle management and master data locking, which is required to secure closed periods and/or versions.

1 Basic Data 2 Selection Attributes Target Attributes ➢ Consolidation Chart of Accounts ➢ FS Item Role ➢ Elimination Target ➢ FS Item Key ➢ Data Collection Selection ➢ Non-Controlling Interest Target ➢ FS Item Description ➢ Currency Translation Selection ➢ Planning Target ➢ FS Item Medium Description ➢ Elimination Selection ➢ FS Item Long Description ➢ Cash Flow Selection ➢ FS Item Type ➢ Scope Selection ➢ Breakdown Category ➢ Other Selection

Options (Flags) Link ➢ Blocked for Posting ➢ Link Title ➢ Is Consolidation Item ➢ Link URL ➢ Carry Forward Balances (for Statistical Items)

1 Up to S/4HANA 1911 (CE) and S/4HANA 1909 (OP) all FS item master data attributes are time and version independent. 2 As of S/4HANA 2002 (CE) and S/4HANA 2020 (OP) time and version dependency for all FS item selection attributes and target attributes is introduced.

Following changes and enhancements were applied to introduce time and version dependent FS item master data:

1 Introduction of new special version „FS Item Attributes“ to version management 2 Enhancement of „Define FS Items“ application for master data maintenance 3 Adjustment of „Import Consolidation Master Data“ application for Excel export and import of FS item master data 4 Automatic migration of already existing FS item master data during upgrade 5 Enhancement of delivered content with time and version dependency 6 Enhancement of master data API to expose time and version dependent attribute value assignments 7 Adjustment of selection object to consume time and version dependent FS item master data 8 Adjustment of validation 9 Adjustment of core functions such as reclassification, currency translation, consolidation of investments, special items, annual net income calculation, etc. 10 Adjustment of inter company reconciliation

11 Adjustment of reporting rules

For 1 to 5 refer to chapter „Master Data Maintenance and Upgrade”

For 6 refer to documentation: https://help.sap.com/viewer/0056c2b57fe34ddf865f0e396e7e91fc/2002.500/en-US/d29b957f940a4c9fa496722bbdc5d1bd.html

For 7 to 11 refer to chapter “Consumption of Time and Version Dependent FS Item Master Data”

Motivation and scope of time and version dependent FS Item master data Master data maintenance and upgrade Consumption of time and version dependent FS Item master data

2 3

1 For displaying the list of FS items in the „Define FS Items“ app two mandatory single value filters are introduced for consolidation version and fiscal year and period. Both are defaulted with the global parameters of the user and can be overwritten at any time. 2 Time and version dependent attribute values of the FS items that are valid in the consolidation version and fiscal year and period entered in the filter bar are shown.

3 Navigation to FS item details page.

1 FS item master data in the „Basic Data“ section 1 is time and version independent.

2 Data in the „Breakdown by Subassignment“ section is for information only and gives additional information on the 2 breakdown category assigned in the „Basic Data“ section.

3 This section contains the time and version dependent attribute value assignments of FS items. This is shown in more detail on next slides. 3 4 Language dependent texts (descriptions).

1 2 3 4

1 Section of time and version dependent FS item attributes 4 Via the special version concept other consolidation in display mode. All selection attribute and target attribute versions may be affected by changes value assignments of FS item now are time and version (see here for further details). dependent. 5 In display mode two display options are available. 2 The context box shows the context of this section. 6 „Show Attribute Values Only“ is the default display mode. 3 Time and version context is taken over from the filter on It shows the attribute values valid in the selected the list page. consolidation version and fiscal year and period. The „Show Attribute Values and Validity Periods“ display

Concept of Consolidation Versions and Special Versions Consolidation Version ➢ A consolidation version is a collection of several special versions A B C … X Y Z (e.g. consolidation version X consists of structure version A, currency translation Structure Version A A C … A Y Z method version 10, tax rate version A, …, and FS item attributes version X). Currency Translation Method Version 10 20 20 … 10 10 20 ➢ The same special version may be used by several consolidation versions Tax Rate Version A B C … A B C (e.g. FS item attributes version X is being used by consolidation versions X, Y,

… … … … … … … … and Z). Special Version Special FS Item Attributes Version A A A … X X X ➢ Special versions are not directly exposed to, or maintained by group reporting users. Instead changes are maintained in the context of a consolidation version, but stored in the respective special version, and with that affect all consolidation versions that consume the same special version (e.g. changing a time and version dependent attribute value assignment of a FS item in consolidation version X will affect consolidation versions Y and Z as well, as they share the same FS item attributes special version).

1 Given the above design, in our example here even though the user has chosen consolidation version „Y10 (Actuals)“ as context, any change to time and version dependent attributes will also affect consolidation versions „Y11 (Actuals @ Budget rates)“, „Y20 (Actuals 2nd GC)“, … as they are sharing the same FS item attributes special version.

1 In order to be able to store FS item attribute values as version dependent, a new special version „FS Item Attributes“ is introduced to the version management. For this new special version a value „S10 – Attribute special version“ is delivered. In case of upgrade this special version value „S10“ is automatically assigned to all existing consolidation versions. Due to this all existing FS item attribute value assignments that are version dependent now are automatically transferred to that special version value „S10“. From that point onwards you may introduce additional values for special version „FS Item Attributes“ to assign different FS item attribute values in different versions and therefore make use of the version dependency. In case you don‘t want to make use of the version dependency of FS item attributes you simply do not create any additional value for the 1 „FS Item Attributes“ special version but only use S10. As S10 will then be shared by all consolidation versions any change of a version dependent attribute assignment will automatically affect all consolidation versions.

1 2 3

1 The „Show Attribute Values 2 For each time and version 3 For each time and version and Validity Periods“ display dependent attribute the dependent attribute there is a mode shows all time and timeframe is shown for which the link to display the attribute version dependent attributes in shown attribute value is valid value assignments over time in a table view. (this is also the case if no value the selected consolidation has been assigned in the selected version (see next slide).

1 Clicking the „Show Values Over Time“ link of a time and version dependent attribute displays the attribute values assigned to the FS item over time in the selected consolidation version. The most recent value assignment is displayed at the top of the list. Intervals without attribute value assignment are shown as well.

1 In edit mode all time and version independent settings (execpt the FS item key and the consolidation chart of accounts) may be edited. 1 2 This section shows details of the breakdown category assigned 5 to the FS item in the „Basic Data“ section and is for information only, therefore this is read only and cannot be edited here.

2 3 In edit mode there are no display options for the time and version dependent attributes. Attribute value assignment changes made here are effective as of the period shown in the context box up to a period where a different attribute value has already been assigned (if there isn‘t any then until 999/9999). 3 For examples see next slide.

4 Language dependent texts can be edited. New languages may be added or existing languages may be deleted.

5 Short and medium description fields in „Basic Data“ section are displayed in logon language and are always 4 synchronized with respective fields in „Language-Dependent Texts“ section, so changes may be applied in both places. Customers with only a single language may ignore the „Language-Dependent Texts“ section as long as they do not 5 require long descriptions.

• We say in the previous slide that “...... Changes of time dependent attribute value assignments are effective as of the context period up to a period where a different value has already been assigned (if there isn‘t any then until 999/9999)”. • The following examples illustrate the above concept in depth:

Legend: 1) a b Assigned attribute value before change a Applied attribute value change b Assigned attribute value(s) after change t

2) b a b a

3) a a a

1 When exporting existing FS item master data in the „Import Consolidation Master Data“ application, two additional mandatory single value filters need to be filled. By selecting a consolidation version and fiscal year and period the downloaded master data contains all time and version dependent attribute values assigned in the selected version and period. The filter values are defaulted with the global parameters of the user and can be changed if required. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 47 Time and version dependent FS Item master data – import master data

1 When preparing and importing FS item master data in the „Import Consolidation Master Data“ application, it is important to understand that all time and version dependent attribute value assignments will be effective in the consolidation version (and all related consolidation versions) and as of the fiscal year and period specified in the „Mandatory Filter Values“ section of the uploaded Excel file. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 48 Time and version dependent FS Item master data – upgrade

During upgrade to a S/4HANA Group Reporting release that supports time and version dependent FS item master data (i.e. upgrade to S/4HANA 2002 (CE) or S/4HANA 2020 (OP) or higher) the following happens:

➢ Version management:

➢ A new special version “FS Item Attributes” is introduced to version management.

➢ A special version value “S10 – Attribute special version” is created and automatically assigned to all existing consolidation versions.

➢ Existing FS item master data:

➢ The existing FS item master data is automatically migrated by transferring all existing attribute value assignments that are time and version dependent after the upgrade to “FS Item Attributes” special version value “S10 – Attribute special version” with a validity from fiscal year period 000/0000 to 999/9999.

➢ With this conversion any time and version dependent consumption of the transferred master data provides the same results as before.

After the upgrade time and version dependency of FS item master data …

➢ … may be used by creating new “FS Item Attributes” special versions and assigning them to consolidation versions and subsequently assigning different FS item attribute values in different versions and / or maintaining attribute value assignments over time.

➢ … may not be used by only using special version value “S10 – Attribute special version” in any consolidation version and maintaining any FS item attribute value changes in the same fiscal year and period before start of the timeframe relevant for you (e.g. 001/1900).

Motivation and scope of time and version dependent FS Item master data Master data maintenance and upgrade Consumption of time and version dependent FS Item master data

Principle ➢ Selections can be defined using time and version dependent FS item attributes (for an example see here). ➢ Selections are used in different consolidation functions (validation, reclassification, currency translation...). ➢ Furthermore in consolidation functions destination FS items are configured using time and version dependent FS item attributes (role attribute and various target attributes). ➢ When consolidation functions are executed, the version, period and year of execution are used to determine the FS items according to the attribute values assigned as time and version dependent. ➢ See here for an overview of consolidation functions that consume selections and FS item attributes.

Examples ➢ Until period 011.2018, FS item Sales of goods is eliminated using the one sided approach against FS item Changes in Inventory. As of 012.2018, it must be eliminated using the two sided approach against the clearing FS item (for screenshots see here). ➢ FS item Investments in subsidiaries is translated using the historical method in the version Y10-Actuals but should be translated using the closing rate method in the budget version (for screenshots see here).

© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 51 Consumption of time and version dependent FS Item attributes – overview For the consolidation functions below, the FS items are determined according to their time and version dependent attribute value assignments. The version, fiscal year and period of execution are used to determine the FS items according to their assigned attribute values.

Selection Attributes Target Attributes

Area / Functions

Non Non

Role

Data Data

Other

Scope Scope

Target Target Target

Interest Interest

Selections

FS ItemFS

Planning Planning

Currency Currency

Selection Selection Selection Selection Selection Selection

Collection Collection

Cash Flow Flow Cash

Controlling Controlling

Elimination Elimination Elimination Translation Translation Selections ⦁ ⦁ ⦁ ⦁ ⦁ ⦁ ⦁ (⦁) (⦁) (⦁) Calculation of Net Income ⦁ Validation ⦁ Currency Translation ⦁ ⦁ ⦁ Reclassification ⦁ ⦁ ⦁ ⦁ ⦁ Preparation for Consolidation Group Changes ⦁ Activity-Based Consolidation of Investments ⦁ ⦁ ⦁ Inter Company Reconciliation ⦁(*1) ⦁ Reporting Rules (⦁) (⦁) (⦁) (⦁) ⦁ (⦁) (⦁) GRDC Reports ⦁ Planning ⦁ ⦁

⦁ Intended usage (⦁) Usage technical feasible, even though no primary use case (*1) only single selection can be used. Although technically any FS attributes can be used in selection for FS item determining, in practice, “elimination selection” attributes is more relevant to intercompany reconciliation scenario. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC More information: https://help.sap.com/viewer/90c07e91c7a64f328be3fd6b48955b13/1911.500/en-US/33e57a9f475c4aab8748e178af0f2b7c.html 52 Consumption in selections

Selections can be defined using In the “Define Selections” app it is possible to display the time and version dependent resulting list of values for any combination of version FS item attributes. and fiscal year and period (see example above).

When selections are used in consolidation functions, the version, fiscal year and period of execution of these functions is used to determine the list of FS items included in the selection.

In period 011.2018, FS item 411100 - Sales of goods Execution is eliminated against FS item 412100 - Changes in inventory in the partner unit (one sided elimination).

In period 012.2018, FS item 411100 - Sales of goods Execution is eliminated against FS item 41200D - Clearing (two sided elimination).

In version Y10, the FS item 172100 - Investments in Subs is translated using the historical method (selection S-CT-BS-HIST).

In version ZGD, the FS item 172100 - Investments in Subs is translated using the closing rate method (selection S-CT-BS-CLO).

When running a validation task, consolidation version and fiscal year and period will be transferred to the rule to find for these specific parameters the correct group of FS items for total amount calculation and validation. Notice: Please be aware that if in validation rule, more than one period amount is used for validation, e.g. current period amount > prior period amount, the current period value which is from the task run parameters is used to decide the time dependent attributes for FS items selection.

In Define Validation Rules App, users can either use FS item attribute values to directly define the selection, or use the existing selections to define how system filter the transaction data used for total amount validation. All the values for a specific FS item attribute can be listed for user selection.

If selection is used in reconciliation case definition, and the FS item time and version dependent attributes are used for FS item selection, when account balance in Reconciliation Balances report is displayed, period and version are transferred to select the correct FS item.

In Define Reconciliation Cases App, user can either use FS item values, or use the existing selections (only single selection is allowed) to define how system filter the transaction data used for reconciliation balance calculation.

➢ The introduction of time and version dependent FS item master data has an impact on the SCP add-on Group Reporting Data Collection in various places:

➢ In Define Forms and Reports (design time), the time and version dependent "Data Collection" selection attribute can be used in the definition of input reports.

➢ In Enter Group Reporting Data (run time), the attribute values assignment of FS item is now time and version dependent.

➢ Running the same input report for different versions and / or fiscal years and periods may lead to different FS items selected (see example on the following slides).

FS item 172500 is defined with different data collection selection attribute values over time.

In version DD1 "Other current financial assets" is assigned as data collection selection attribute value to FS item 172500 from 012.2015 to 011.2017.

From 012.2017 onwards “Other NC financial assets" is assigned as data collection selection attribute value to FS item 172500 in the same version DD1.

Input report definition based on data collection selection attribute value:

A report is defined with FS item in row.

First block is defined with data collection selection attribute value “Other current financial assets” (S-A-OTH-CUR-FIN).

Second block is defined with data collection selection attribute value “Other NC financial assets” (S-A-OTH-NC-FIN).

At run time, the assignment of FS items based on attribute values changes depending on time:

In 012.2015 FS item 172500 is part of the first block "Other current financial assets“.

In 012.2017 FS item 172500 is part of the second block "Other NC financial assets“.

At run time, the assignment of FS items based on attribute values changes depending on version:

In 012.2015 in version DD1 both blocks contain different FS items than …

… in the same period 012.2015 in version Y10.

➢ The time and version dependency of the reporting rules is hidden from consumers. It is only reflected in the implementation.

➢ Reporting rules consist of three major parts:

1. Model reporting rules: ➢ Reporting rules are defined using Define Reporting Rules app. ➢ In this step the version and time dependency of FS item attribute assignments is not considered.

2. Replicate reporting rules: ➢ Clicking the Replicate Reporting Rules button in the Define Reporting Rules app prepares the modeled reporting rules for usage at runtime. ➢ In this step the version and time dependency of FS item attribute assignments is considered. ➢ The result is stored in a separate table.

➢ Reporting rules consist of three major parts:

1. Model reporting rules: ➢ Reporting Rules are defined using Define Reporting Rules app. ➢ The data maintained in this app is stored in table FINCS_RI_DT. ➢ In this step the version and time dependency of FS item attribute assignments is not considered.

2. Replicate reporting rules: ➢ Clicking the Replicate Reporting Rules button in the Define Reporting Rules app prepares the modeled reporting rules for usage at runtime. ➢ This is implemented in method RUNTIME_REPLICATION of class CL_FINCS_RPT_RULE. ➢ For reading the FS Item attribute assignment the view I_FSItemAttributeAssignment_2 is used. ➢ The following new fields have been added for supporting the time and version dependency: ➢ RVERS (Consolidation Version) ➢ FROMYEARPER (first Fiscal Year Period) ➢ TOYEARPER (last Fiscal Year Period) ➢ The result is stored in table FINCS_RI_RT.

3. Use reporting rules in reports: ➢ The UI of the reports and the "static properties" of the underlying Query CDS View have not changed. ➢ But the behavior of the Query CDS View has been adapted to reflect the new fields of table FINCS_RI_RT. ➢ Read access to table FINCS_RI_RT is via view I_CnsldtnRptRule. ➢ This view is consumed by the stack of Reporting Rule CDS Views P_CNSLDTNFNDNWITHRPTRULEX_2 (X=1,…,8).

Context

▪ Annual Net Income is calculated automatically by the task “Calculation Net Income” and also during the manual posting of group journal entries.

▪ The calculation is currently done by Consolidation Unit only and it is not possible to have the Net income calculated by Profit Center or Segment. Hence the B/S or P&L statements are not balanced for these organization units.

New feature

▪ Annual Net Income (and deferred tax) is now calculated keeping the details of those organizational units Profit Center and/or Segment.

Prerequisite

In the configuration of Additional Characteristics the Profit Center and/or Segment fields are enabled for Hierarchical Elimination.

1 In this example of a group journal entry:

-1 The Sales FS item (411100) is posted partially with Profit Center and Segment

2 - The offsetting B/S FS item (121100) is posted without Profit Center and Segment

-2 The net income is calculated in the Profit and Loss statement (799000) and in the Balance Sheet (317000) with the same profit center as the original P&L FS item. The original Segment 3 is not kept in the calculation since Segment is not enabled for Hierarchical Eliminations.

-3 The same principle applies to the deferred tax.

SAP help portal S/4HANA Cloud for group reporting https://help.sap.com/viewer/90c07e91c7a64f328be3fd6b48955b13/2002.500/en- US/c27c73226dac4e07ac8aa59a45f92fd8.html

Group Reporting Data Collection (GRDC) https://help.sap.com/viewer/product/SAP_Group_Reporting_Data_Collection/1.0/en-US

Consulting notes 2659672 - FAQ About SAP S/4HANA Finance for group reporting (On Premise) https://launchpad.support.sap.com/#/notes/2659672

2659656 - FAQ About SAP S/4HANA Cloud for group reporting https://launchpad.support.sap.com/#/notes/2659656

SAP Road Map Cloud – S/4HANA Cloud Road Map, see “Corporate close” https://www.sap.com/products/roadmaps/finder-all.html?sort=title_asc&search=SAP%20S%2F4HANA&tag=finder- technical:road-maps/resources/road-maps&tag=products:enterprise-management/sap-s-4hana-cloud

On-premise – S/4HANA Road Map, see “Corporate close” https://www.sap.com/products/roadmaps/finder-all.html?sort=title_asc&search=SAP%20S%2F4HANA&tag=finder- technical:road-maps/resources/road-maps&tag=products:enterprise-management/sap-s-4hana

Interactive Road Map https://roadmaps.sap.com/index.html#/

Follow the “group https://blogs.sap.com/tags/d43f39e4-1f4c-4ba5-9bba-dbadada2e08b/ reporting” tag

Product Engineering https://blogs.sap.com/2019/05/13/sap-s4hana-finance-for-group-reporting-product-strategy/ strategy

New features in https://blogs.sap.com/2020/01/16/sap-s-4hana-cloud-for-group-reporting-2002-is-ga 2002 release

New features in https://blogs.sap.com/2019/11/18/sap-s-4hana-cloud-for-group-reporting-1911-is-ga/ 1911 release

New features in https://blogs.sap.com/2019/09/23/sap-s4hana-finance-for-group-reporting-1909-is-ga/ 1908 release

New features in https://blogs.sap.com/2019/06/07/whats-new-in-sap-s4hana-cloud-for-group-reporting-1905/ 1905 release

New features in https://blogs.sap.com/2019/02/04/announcing-the-availability-of-sap-s4hana-cloud-for-group-reporting-1902- 1902 release release/

How to create your own https://blogs.sap.com/2019/12/25/embedded-analytics-sap-analytics-cloud-in-sap-s-4hana-cloud-how-to- Dashboard/Story create-your-own-dashboard-or-story/

How to create Data Analyzer https://blogs.sap.com/2019/12/29/embedded-analytics-sap-analytics-cloud-in-sap-s-4hana-cloud-how-to- Report create-data-analyzer-report/

How to transport Embedded https://blogs.sap.com/2019/12/29/embedded-analytics-sap-analytics-cloud-in-sap-s-4hana-cloud-how-to- Story/Data Analyzer Report transport-embedded-story-data-analyzer-report/

Intercompany Matching https://www.youtube.com/watch?v=05jadAXVlEY and Reconciliation video

Contact our SAP Product Engineering team [email protected]

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