sap s/4hana group reporting corporate close reimagined

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SAP S/4HANA Group Reporting Corporate Close ReimaginedReda Diab, Sr. Digital Solution Advisor,October 7th 2020

LEARNING OBJECTIVES

3PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

§ Understand the strategy behind S/4HANA Group Reporting

§ Learn about some of the new innovations delivered with the latest on-prem 1909 release

§ Get some answers to frequently asked questions on S/4HANA Group Reporting

§ Find out where to find additional information

SAP S/4HANA Group Reporting – Corporate Close RethoughtLearning Objectives


Agenda

§ Learning objectives

§ Corporate close rethought

§ Innovations in S/4HANA Group Reporting 1909

§ S/4HANA Group Reporting FAQ

§ Additional resources

§ Wrap Up

Corporate Close Reimagined


SAP S/4HANA Finance – Enabling intelligent finance transformation

Chief Financial Officer

Vice President, Finance

Head, Corporate Reporting

Head, FinanceOperations

Head, CorporateTreasury

Risk, Compliance & Audit Officer CISO, CIO

Financial Planning& Analysis

Accounting& Financial Close

FinanceOperations

TreasuryManagement

Enterprise Risk& Compliance

Cybersecurity& Data Protection

Planning, Budgeting, and Forecasting Financial Accounting Record to Report Payments and Bank

CommunicationsEnterprise Risk Management

Access Governance and Identity Management

Profitability and Cost Management Entity Close Order to Cash Cash and Liquidity

ManagementControls and Compliance Management Single Sign-on

Management Reporting Corporate Close Procure to Pay Debt and Investment Management

Automated Monitoring and Screening Access Monitoring

Financial Reporting Indirect Tax Management Financial Risk Management

Policy Lifecycle Management Data Loss Prevention

Direct Tax Management Real Estate Management Risk Management for Commodities Audit Management

Financial Close Governance

Travel and Expense Management Treasury Governance International Trade

Management

Financial Shared Service Management

Financial Process Governance

Finance & Risk


LEGACY LANDSCAPE

Data warehouse

ETL tools

Financial consolidation/Group close

SAP ERP SAP ERP SAP ERP OTHER ERP OTHER ERP

Fragmented close landscape leads to disconnect

between operational and consolidation ledgers

• Inconsistent

• Aggregated

• Non-transparent

Financial close past


S/4HANA LANDSCAPE§Consistent

Local close and group close share the same master data and transactional dataTasks such as intercompany matching and currency translation can be run before period-end

§DetailedFull range of universal journal dimensionality available for analysis

§TransparentFull audit trail from Group Reporting through to the underlying accounting journalsDouble-entry posting for all consolidation events

Accounting/Local close

Consolidation/Group close

SAP ERP SAP ERP SAP ERP OTHER ERP OTHER ERP

Financial close present and future


-10 -5 -2 -1 +1 +2 +5 +10

LOCAL PERIOD END

Data upload/validation

Currency

Intercompany

Consolidation

FINAL REPORT

Elimination


Financial close timeline past


-10 -5 -2 -1 +1 +2 +5 +10

LOCAL PERIOD END

Currency

Intercompany

Consolidation

FINAL REPORT

Elimination


Continuous accounting

Validation

Financial close timeline present and future


Follows the simplification model in S/4HANA accounting§ Unified user experience from entity close to group close§ Unified analytics toolset§ Harmonized data model

Responds to today‘s expectations and is available in all deployment models§ Public cloud§ Private cloud§ On-premise

Provides rapid deployment and flexible configuration by financial users

Strategy for innovation – guiding principles of S/4HANA Group Reporting


SAP Strategy for the Intelligent EnterpriseHow does SAP S/4HANA for Group Reporting fit in?

1 Intelligent Enterprise Suite

2 Intelligent Technologies

3 Digital Platform

Harmonized and streamlined Record-to-Report Process – consolidation is an integral part of SAP S/4HANA

Consolidation across multiple organizational dimensions– leverage innovative intelligent technology

Integrated application for data collection– connectivity to the outside world


EC-CS / BCS

S/4HANA Embedded BPC

BPC

FC

§ Accounting document principle and logs§ Process monitors§ Automatic Cons of Investment (as

alternative model for customers with higher automation needs)

§ SAP S/4HANA integration§ Concept of instant access to universal

journal data§ Data release process and validation-at-

source

§ Rule-based eliminations and master-data driven rules

§ Flows on all B/S items- principle§ Rule-based reports (inspired by BPC

account transformations) and subgroup currencies

§ Data Collection incl. comments and unstructured data

§ Rules engine and data mapping features§ Restatements and flows on all B/S items-

principle

Building on tradition and trust


SAP Group Reporting Data CollectionNon-SAP sources | Non-financials | Notes

SAP Analytics Cloud

Dashboarding | Analytics | Planning

SAP DisclosureManagement

Publish online / print | Electronic submission

SAPERP

SAPERP

SAPERP

Non SAPERP

Non SAPERP

Integration via APIs, flat file or via Central Finance

SAP S/4HANA


Consolidation/Group close

Uni

vers

al J

ourn

al

Integrated platform for group reporting

S/4HANA GROUP REPORTINGINNOVATIONS IN S/4HANA 1909


1 Data Collection 2 Preparation

3 Consolidation 4 Reporting

§ Real-time SAP S/4HANA data access for§ Transactional data§ Master data

§ Easy integration of non-SAP data

§ Data validation§ Currency translation§ Manual journal entry posting§ Intercompany matching and

reconciliation

§ Intercompany elimination§ Consolidation of investments§ Versioning – actual / plan /

predictive

§ SAP Fiori embedded analytics§ SAP Analysis for Microsoft Office

(MS Excel)§ New reporting logic – matrix

consolidation§ SAP Analytics Cloud integration

SAP S/4HANA for Group Reporting

S/4HANA Group Reporting process


Embedded analytics

Access to selection of operational dimensions of universal journal

Drill through to underlying accounting journal and logistic flow


SAP pre-delivers the following FS itemhierarchies

Balance sheet / income statement


SAP pre-delivers the following rule-basedreporting item hierarchies

Rule-based reporting


London, UK (S703)

Berlin, Germany (S704)

Oslo, Norway (S705)

Paris, France (3rd party)

New reporting logic (matrix consolidation)

DEMO


Classification of entities

Keep legal group structure and non-controlling interest calculation separate from management hierarchies aligning with business needs


Up to 31 Oct: S703 (UK) classified as EU

After 1 Nov: S703 (UK) classified as Non-EU

Organizational hierarchies


FS Item Local amount

Group amount

Cons unit Partner unit

Segment Partner Segment

…

Dr 121100 Trade receivables £10000 €11320 London / 1000_A

Cr 411100 Sale revenue £10000- €11320- London / 1000_A


Groupamount



…

Dr 121100 Trade receivables £15000 €16980 London Berlin 1000_A 1000_B

Cr 411100 Sale revenue £15000- €16980- London Berlin 1000_A 1000_B

Accounting journal 1000000024 – 3rd party

Accounting journal 1000000025 – intercompany


Groupamount



…

Dr 121100 Trade receivables £20000 €22640 London Oslo 1000_A 1000_A

Cr 411100 Sale revenue £20000- €22640- London Oslo 1000_A 1000_A

Accounting journal 1000000026 – intercompany

Postings from London


Accounting journal 2000008008Elimination entries generated in consolidation

Pairwise postings on consolidation units

FS Item Groupamount



…

Dr 4111000 Sales revenue €16980 London Berlin 1000_A 1000_B

Cr 412100 Change in inventory

€16980- Berlin London 1000_A 1000_B

A similar accounting journal 2000008010 is posted for London à Oslo

Sales Revenue Inventory change

€16980-€16980

Salesrevenue €16980-

Intercompany elimination


Intercompany reporting


• Scope

• Always active for consolidation unit

• Optional for segment and profit Center

• Impact

• Generation of hierarchy with elimination dimension on hierarchy activation

• Derivation of elimination members at report run-time

Enabling hierarchical managerial reporting


Reporting prompts

Consolidation GroupShow me the statutory consolidated numbers

HierarchiesShow me the consolidated cashflow / P&L by region / segment / product group etc.

Hierarchy valid on Show me the report based on the validity date for the hierarchy(ies) selected


EU

NON-EU

EUROPE

Europe node shows 3rd party transaction amount

EU hierarchy node shows IC trans with Norway and with 3rd party.

IC eliminations reporting I


NON-EU

EU

EUROPE

Europe node shows 3rd party transaction amount

Non-EU hierarchy node shows IC trans with Germany and with 3rd party.

IC eliminations reporting II


Matrix consolidation (legal / managerial entities)


Combining Views

Group View(Cons. Group Cons.

Unit)

Hierarchy View (Cons unit,

Segment, Profit Center)

Hierarchy View (Profit Center) for a Cons. Group

Consolidated data can be used for different views:

- Group view

- Hierarchy views

- Without reference to a Consolidation group

Consolidation methods (Purchase, Equity) and specific Group assignments settings are not considered

- With reference to a Consolidation Group

All consolidation settings that apply to the group view are considered.

I can see the consolidation of my Profit Centers, Cons

units, Segments without Cons Group

I can see the consolidation of my Consolidation Units,

Segments, Profit Center with a Cons

Group

=

Reported data

Local corrections

Adjustments (non group dependent)

Inter units eliminations (Gross Profit, Other Inc/Exp, AP/AR…)

+ Group dependent adjustments (equity method, group changes…)

Consolidation of investments

2

3

1 3

Posting Level blank, 00 – 10 (not 02) PL 20

PL 02, 12, 22 PL 30


S/4HANA Group Reporting

Integrated &Non-integratedCompanies,Consolidation

IntegratedCompanies

X

SAC

Consolidation Planning

ACDOCU

OperationalGroup

RACCT10010000 (Petty Cash)

RITEM111100

(Cash on hand)

Live Connection(Analytics)

Export to S/4HANA (TD)

ACDOCA IntACDOCP

X

Group

(All Units)

Account10010000

Import Connections: MD & TD

C/T & Reclassifications

GL Accounts

Cons Units Grous

Account111100

Analytics

Import Connection: TD (Actuals)

FS Items

Import Connection: MD (Group)

Planning integration with SAP Analytics Cloud


Master / transaction data integration with SAP Analytics Cloud


Subsidiary A

Subsidiary B

DailyTransactions

Company ClosingIntercompany Reconciliation

Parent Company

Corporate ClosingIntercompany Transaction Matching and Elimination

Traditionally time-consuming, error-prone labor-intensive

Intercompany matching and reconciliation


Advantages of SAP S/4HANA Intercompany Matchingand Reconciliation (ICMR)

Subsidiary A

Local close Group close

Subsidiary B

Subsidiary C

Real-Time ContinuousNon-S/4 Subsidiary D

Non-S/4 Subsidiary E

Upload

ü Transactional level matching and reconciliation available on a real-time basis without ETL processes

ü Flexible model with end user tool for defining your own matching and reconciliation rules

ü Automate process with built-in workflow to solve discrepancy

ü Transparent reconciliation process and workflow

ü Streamlined & speed up local close to corporate close - continuous accountingü Reduced TCO


Overview of Inter-company transactions


Manage assignments

ADDITIONAL RESOURCES


§SAP S/4HANA Group Reporting 1909 blog

§Solution introduction on YouTube

§Product strategy from development

More Information

SAP S/4HANA for Group Reporting

https://blogs.sap.com/2019/09/23/sap-s4hana-finance-for-group-reporting-1909-is-ga/

https://youtu.be/3M7a1lsMrL8

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


SAP S/4HANA Roadmap (August 2019) https://www.sap.com/products/roadmaps/finder-all.html#pdf-asset=6a479c5d-c37c-0010-82c7-eda71af511fa&page=11

SAP S/4HANA Cloud Roadmap (May 2019) https://www.sap.com/products/roadmaps/finder-all.html#pdf-asset=a24caa5d-c37c-0010-82c7-eda71af511fa&page=11

Roadmaps on sap.com

https://www.sap.com/products/roadmaps/finder-all.html

https://www.sap.com/products/roadmaps/finder-all.html

WRAP-UP


SAP S/4HANA for Group Reporting – benefits

Continuous Accounting:

§ Accelerated financial closing§ Identification and correction of

issues pre-close§ Greater visibility throughout

the month§ Integrated data model

enables closing tasks to be performed earlier in the closing cycle

Innovative approach to consolidation tasks:§ Finance team collaboration

within embedded intercompany reconciliation

§ Support inter/intra segment elimination with innovative reporting functionality

§ Flexible user-defined validation rules with drilldown to context information and underlying journals

Unified entity and group close solution: § Single source of the truth for

local operational and group level data

§ Drill from consolidated to transactional data for greater visibility

§ Complementary to Central Finance

Reduced TCO:

§ Unified user experience across entity and group

§ Unified analytics toolset§ End-to-end Best Practice

content accelerates solution adoption

Thank y u.Reda DiabSr. Digital Solution AdvisorSAP Software & [email protected]+974.3338.6506

mailto:[email protected]

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sap s/4hana group reporting corporate close reimagined

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