Managing Financial Statements

The definition of a Financial Statement Version is possible using the SAP Fiori apps:

• Maintain Financial Statement Versions ( = customizing transaction OB58)
• Manage Global Hierarchies

The following information refers to the Manage Global Hierarchies app. At the end of this topic you will find additional information about the Maintain Financial Statement Versions app (transaction OB58).

Today, each separate master data record type has its own app for group or hierarchy maintenance. The app Manage Global Hierarchies is a single point of entry for the maintenance of different hierarchies in SAP S/4HANA.

With SAP S/4HANA 1809, the Manage Global Hierarchies application was introduced.

The basic idea of the Global Hierarchy app is to have one common hierarchy tool for many object types.

With this app, you can view, create, edit, activate, and deactivate hierarchies and their validity time frames. You can also quickly create hierarchies by importing or copying from existing hierarchies in the event of structure changes or changing reporting needs. Additionally, you can check change logs and maintain node texts in multiple languages for applicable hierarchy types.

The app is assigned to multiple standard business roles, such as the following:

• General Ledger Accountant (SAP_BR_GL_ACCOUNTANT)

• Overhead Cost Accountant (SAP_BR_OVERHEAD_ACCOUNTANT)

• General Ledger Accountant - Intercompany (SAP_BR_RECON_ACCOUNTANT)

• Group Accountant (SAP_BR_GRP_ACCOUTANT)

• Cash Management Specialist (SAP_BR_CASH_SPECIALIST)

The value added by Global Hierarchies is the standardized maintenance of hierarchies with drag and drop functionality. Time dependency can only be maintained on the top node, not on subnodes, and on, for example, G/L accounts using Financial Statement Version as hierarchy type. The Key Date field is then used to refer to the time frame.

The Manage Global Hierarchies app has the following key features:

• Modern, consistent UI and persistency in one Hierarchy - SET group.

• The creation and editing of multiple hierarchies, such as cost center, profit center, functional area, and financial statement versions.

• Different time frames under specific hierarchy IDs.

• Status control (draft versus active).

• Export of hierarchies to spreadsheets / import hierarchies from spreadsheets.

• Supports the maintenance of node texts in different languages.

• Assignment of semantic tags to hierarchy nodes and G/L accounts.

• Addition of aging attributes to hierarchy nodes for reporting-based reclassification.

• Support for custom extensibility - custom hierarchy, custom field, and custom logic.

• Compatible with existing hierarchies.

To manually create a financial statement version:

• In the app, click the plus (+) icon.
• In the Create New Hierarchy dialog box, choose Financial Statement Version in the Type field.
• Enter the required data and choose Create.

You can create a hierarchy by copying an existing one, for example, to support re-organization activities or changing reporting needs. In doing so, you have two options:

To create a financial statement version by copying an existing one:

1. In the app, choose an existingFinancial Statement Version.

2. Choose Copy.

3. Choose the option New Hierarchy.

4. In the displayed dialog, enter a four-digit hierarchy ID and the other required data and choose Create.

Each version must have the following special items:

• Assets

• Liabilities and Equity

• Net result: Profit

• Net result: Loss

• Profit and loss results

• Not assigned

• Financial Statement Notes

The net profit or net loss, as well as the profit and loss results, are calculated using the same report that you use to create the financial statement. In addition, the report lists the accounts that were not assigned to an item in the financial statement version under the not assigned (accounts) item.

The net profit or net loss is only determined from accounts that are assigned to the assets and liabilities items. Accounts belonging to the notes of a financial statement item or to the not assigned accounts item are not included when determining the net profit or net loss. They are also not included in the profit and loss result. This result is derived from the balance of all other accounts.

A fixed item, similar to the assets and liabilities items, is created for the notes of a financial statement item when you define the financial statement version. By reassigning the corresponding accounts to this item, you can ensure that these accounts are no longer included in the profit and loss result when you execute the financial statement report.

When working with hierarchy levels, perform the following activities:

1. Assign items to each level. The system calculates a total or subtotal for each item, which is then displayed when the program runs.

2. Assign the accounts whose account name and balance are to be listed at the lowest level of the hierarchy.

By choosing the plus icon (+) to the right of a subnode or account, you can assign either another subnode or a G/L account (or a functional area) to the hierarchy. By choosing …, you can choose Fast Entry and enter several sub-nodes or several G/L accounts (functional areas) in one step.

You can use Account Group Assignment by Balance to determine whether the balance of a specific account group must appear on the debit side or the credit side of a specific financial statement item.

The following are examples of bank accounts that only apply for accounts with a fluctuating balance:

• First example:

  Debit	Credit
  X

  X: If the joint account of all accounts listed under this item is a debit balance, it appears here.

• Second example:

  Debit	Credit
  	X

  X: If the joint account of all accounts listed under this item is a credit balance, it appears here.

The following is an example of a bank account that applies to most accounts:

The balance always appears here, whether the balance of the accounts is a debit or a credit.

You can copy your hierarchy to a new time frame. This might be necessary due to organizational changes. The whole hierarchy structure is copied to a new hierarchy time frame but with the same hierarchy ID and description. Upon activation of the new hierarchy time frame, the system checks if its validity time frame overlaps with that of the copied-from hierarchy.

The Office Supplies account is assigned to the Admin sub-node from February 2018 on. In January 2018, this account was assigned to the Supplies sub-node.

The SAP GUI transactions OB58 / FSE2 for maintaining classic Financial Statement Versions are still available in SAP S/4HANA. These "classic" Financial Statement Versions cannot be used immediately in SAP Fiori reporting. If you want to use these reporting structures in SAP Fiori reporting, there are different ways to do so.

The first way is to import a "classic" Financial Statement Version into the Manage Global Hierarchies.

The Import Hierarchy function enables you to import such a Financial Statement Version into the appManage Global Hierarchies, where you can continue maintaining the hierarchies by leveraging all features described in this lesson.

The second option is to create a runtime hierarchy by replicating the "classic" Financial Statement Versions into the HRRP*- tables. Such runtime hierarchies can be selected in SAP Fiori reporting. There are several ways available to execute the replication:

Back-end system:

• Transaction HRRP_REP / REPORT FINS_REPLICATION_HIER_N Manually Replicate Runtime Hierarchy (New) (With Job Scheduler)

• Transaction OB52 / FSE2 choosing the option Activate after modifying.

SAP Fiori apps:

• Replicate Runtime Hierarchy (F1478)

• Manage Financial Statement Versions(OB58) choosing the option Activate after modifying.

• Change Financial Statement Versions(FSE2) choosing the option Activate after modifying.