Outlining the Prerequisites

Objectives

After completing this lesson, you will be able to:

  • Describe the group structure
  • Review the ownership data
  • Identify the task group
  • Outline the document type for manual goodwill postings
  • Describe the delivered content
  • Explain how reclassification methods work

View the Group Structure in SAP Fiori

Business Scenario

You are reviewing the corporate structure for the ABC Corporation project and you need to confirm the assignments for the World, America, and Europe consolidation groups.

What skills will you develop in this practice exercise?

  • Work with the Manage Group Structure - Group View app.
  • Confirm settings such as First Consolidation at End of Period.

Ownership Data

In this scenario, use a group reporting journal entry to import the ownership percentages into group reporting. The statistical FS item S00001 Group Shares % contains the ownership percentages. After the import, use the Group Data Analysis app to view the data in the report.

The direct share percentages are equal to the group share percentages. For example, consolidation unit US00 has a direct share of 35% of CA00. Because DE00 owns 100% of US00, DE00 effectively owns 35% of CA00.

There are two ways to import the ownership data:

  1. Import group ownership percentages using a group reporting journal entry (our approach).
  2. Import direct ownership percentages with the flexible upload of reported financial data. Use the Calculate Group Share task (2140) to calculate the group share values.

Go to Overview of Consolidation of Investments for more information.

Import Ownership Data

Business Scenario

Before you run the ownership elimination, you need to import ownership percentages into group reporting. You've decided to use the Import Group Journal app.

What skills will you develop in this practice exercise?

  • Create a file with the ownership percentages.
  • Import the data into group reporting.

Report Ownership Data

Business Scenario

Now that you have imported the ownership data, you need to report on it.

What skills will you develop in this practice exercise?

  • Create a report.
  • Save the report settings with a bookmark.

Task Groups

Use task 2100 Investments / Equity Elimination to run the rule-based investment consolidation. The system includes task 2100 in Task Group S20. You need to know how to identify the task group in case you need to adapt the consolidation monitor.

You can useTask 2140, Enter Group Shares, to manually record ownership percentages from the consolidation monitor.

Based on the task group S20, Task 2100 appears in the consolidation monitor.

Document Type for Goodwill

In rule-based consolidation, goodwill is booked in a manual group journal entry that uses document type 10. Use document type 10 to record goodwill for purchase and equity subsidiaries. Document type 10 uses Posting Level 10 and can post in local and group currency.

Note

In rule-based consolidation of investments, goodwill is calculated and posted manually with a group journal entry.

Delivered Content

To consolidate investments with reclassification rules, you need a reclassification method. Before implementing rule-based investment consolidation, you should consider the S2101 delivered (off-the-shelf) method.

You can access a summary of the steps in the S2101 method in the on-line help: Consolidation of Investments.

You can access the details of method S2101 in the How_to_configuration_content_S4HGR_2022_V1.XLSX file in the FAQ About SAP S/4HANA Finance for Group Reporting (On Premise) note.

In the following image, you can see some of the detailed settings for the S2101 method. You can refer to this document when creating your own method.

Explain How Reclassification Methods Work

One of your main roles will be automating accounting entries for investment consolidations using a reclassification method.

In this video, learn how to:

  • Set up a reclassification method to eliminate investments in your consolidated financial statements

  • Use a reclassification method to eliminate investments in your consolidated financial statements

Select the play button below to learn how to set up and use reclassification methods.

Summary:

This video discusses automating accounting entries for investment consolidations using a reclassification method.

The method identifies the consolidation unit to post, determines when to execute the method rule, identifies the trigger data region, determines the debit and credit FS items, and identifies the percentage of the source value to the post.

The video shows how to set up the method to eliminate the investment with an offset to the Investment Owning FS item. After configuring the method, the investment and equity elimination can be run in the consolidation monitor, resulting in the investment being eliminated with an offset to the Investment Owning FS item.

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