Deriving and Realigning Consolidation Data

Objectives

After completing this lesson, you will be able to:

  • Derive consolidation data
  • Realign group reporting data

Derivation of Consolidation Data

Watch the following video to learn how to derive a consolidation unit.

Flexible Derivation of Consolidation Units

In group reporting, you can derive dimension members such as consolidation unit, partner unit, and FS item.

At ABC Corporation, you're using the preparation ledger. You have several company codes, but you want to split the data by business segment in group reporting. So, each company code and profit center combination in SAP S/4HANA will be derived into unique consolidation units. For example:

  • If the company code is 1010 and profit center is CF00_A, then the consolidation unit is DE00.
  • If the company code is 1010 and profit center is CF01_A, then the consolidation unit is DE01.

As a result, each consolidation unit represents a business segment and you are able to perform segmented reporting for groups of consolidation units.

To derive consolidation units, use the Manage Substitution / Validation - Journal Entries app.

Follow these steps to create a new rule:

  1. Choose Create Rule:
    • Business Context: Choose GRPL core fields (GRPL subassignments to FS item is available if you need to derive FS item).
    • Event: GRPL core fields
    • Rule Type: Substitution Rule
  2. Choose Create.
  3. Enter a name and description.
  4. Precondition: (Example)
    • Field / Function: Company Code
    • Field / Function: Profit Center
    Note
    If you want to define substitution rules for different group reporting preparation ledgers, you can use the precondition section to specify the ledger for which the a substitution rule is relevant.
  5. Substitution:
    • Target Field: ConsolidationUnit
    • Substitution Type: Substitute with Constant
    • Source: Consolidation Unit
    • Overwrite: Overwrite any existing value of the target field with the value you specified in the source. If you want to keep existing values already in the target field, leave the checkbox unselected.
Note
If a company is mapped to only one consolidation unit, a custom substitution rule isn't necessary.
Note
In the Manage Substitution / Validation - Journal Entries app, you can use Analyze Rules to check your rules for overlaps and sequencing.

Consolidation Unit Derivation - Key Points

  • Each consolidation unit is assigned only to one company at a time. This helps to prevent data from multiple companies from ending up in the same consolidation unit.
  • If the company assignment is changed for fiscal year periods where accounting postings already took place, the consolidation unit information for the existing transaction data in group reporting has to be corrected by using the realignment function.
  • Plan versions don’t support group reporting preparation ledgers. Therefore, consolidation unit is impossible.
  • During accounting postings, the consolidation unit derivation will be processed (as any other group reporting related derivation) when all of the following preconditions are fulfilled:
    • Posting takes place in a group reporting preparation ledger.
    • The fiscal year of the posting is not before the From Year for Preparation Ledger.
    • The company code of the accounting line item is assigned to a company.
    • The company is assigned at least to one consolidation unit in the given fiscal year period.

Use a Function to Derive Consolidation Units

The business requirement in this example, is to concatenate company code with the last character of the profit center. For example, if the company code is 1010, and the profit center is CF10_A, then consolidation unit 1010_A will be derived.

In the concatenation, company code is used to determine VALUE_01. So the concatenated value will start with the company value from the accounting posting line item. VALUE_02 is a substring that accesses the profit center value. The OFFSET is 5 (the first 5 characters will be skipped). The LENGTH is 1.

This Substitution Rule - Function Example shows that with one substitution rule the derivation of many consolidation units can be achieved.

However, the consolidation units in this case have to follow the naming convention of the concatenation rule. For example, what if the sixth character of every profit center is non-unique. And, that concatenation result does cannot exceed the consolidation unit field length (current limit: 6 characters). If these are issues on your project, a table lookup can be used.

Use a Lookup Table for the Flexible Derivation of Consolidation Units

Among the different substitution types available, the table lookup can be one of the most useful for consolidation unit derivation. This substitution type allows you to use a custom-defined lookup table in which you maintain associations between consolidation units and the criteria in the accounting posting. In this way, the system searches in the lookup table to retrieve a consolidation unit based on the relevant criteria of the accounting posting.

This is advantageous because you can create one substitution rule to derive many consolidation units.

To create a substitution rule for consolidation units using a lookup table, you first need to create the lookup table, create, entries in the lookup table, and create the substitution rule.

In order to use a table lookup:

  1. Create a new custom business object with a lookup table: Custom Business Object
  2. Create a substitution rule similar to the following example (Substitution Rule - Configuration) but with two exceptions:
    1. In the precondition operator, choose is not empty to ensure that the substitution rule will function properly. For example, if the lookup is based on company code and segment, these two dimensions cannot be empty. Also, use a Precondition that selects records with an empty consolidation unit in case another derivation rule has already filled it.
    2. In the substitution type, choose the of ID of your Table Lookup.
Note

The consolidation unit derivation occurs individually for every line item of the accounting posting. Consequently, different line items of the same accounting document may end up in different consolidation units. Customer-defined substitution rules are executed in alphanumerical order. The sequence can be viewed by using the Analyze button in the Manage Substitution / Validation - Journal Entries app.

Substitution Rules for the Flexible Derivation of Partner Units

If consolidation units are derived, then partner units must be derived as well.

When you create substitution rules for the flexible derivation of partner units, the process is almost the same as creating substitution rules for the flexible derivation of consolidation units. There are only the following differences:

  • For Business Context, you select GRPL subassignments to FS item instead of GRPL core fields.
  • For Target Field, you select PartnerConsolidationUnit instead of ConsolidationUnit.

Create Substitution Rules for Consolidation Units

Business Scenario

At ABC Corporation, each company code in SAP S/4HANA is assigned to multiple consolidation units based on its profit center postings. To set this up, you need to create a substitution rule.

What skills will you develop in this practice exercise?

  • Create a substitution rule
  • Configure the precondition and substitution

Create a G/L Entry and View Group Reporting Fields

Business Scenario

Now that you've set up the preparation ledger and created a substitution rule for the DE## consolidation unit, group reporting information is recorded in the ACDOCA table as postings occur in accounting.

What skills will you develop in this practice exercise?

  • Create a journal entry in the general ledger.
  • View group reporting data in the journal entry.

Release Data from Accounting into Group Reporting

Business Scenario

Now that you have an accounting document in ACDOCA, you need to test the consolidation unit substitution rule by releasing the data.

What skills will you develop in this practice exercise?

  • Release the data.
  • Display the group reporting release document with the derived consolidation unit.

Realign Group Reporting Preparation Ledger

Watch the following video to learn how to realign group reporting data.

At ABC Corporation, your integrated consolidation units are derived from company code and profit center combinations. Because you’re using the preparation ledger at ABC Corporation, group reporting fields are populated in ACDOCA when accounting postings occur. These fields include:

  • Company
  • Consolidation unit
  • Consolidation chart of accounts
  • FS item
  • Subitem category
  • Subitem
  • Partner unit

If the substitution rules have changed after the accounting posting, then you can use the realignment function to reprocess the derivation of consolidation units. Realignment is also necessary if the group reporting master data was changed or if the configuration influencing the result of the substitution was changed.

How Can Realignment be Used when the Substitution Rule is Missing

In a scenario where the company code doesn't have a one-to-one assignment with a consolidation unit and no substitution rule is created (by mistake):

  • Accounting postings record the company code in the line items.
  • No data is released into group reporting.

Corrective action:

  • Create a substitution rule.
  • Run a realignment job.
  • Release the data.
Note

The realignment doesn’t process every universal journal entry individually, it processes aggregated data.

Instead of using the realignment function, you can also load corrected data into group reporting using posting level 0C.

Realignment in General

If the realignment results in changes, they're posted with separate document numbers on a special group reporting reclassification document type in accounting. The adjustments are posted using the timestamp of the realignment execution.

You can realign the group reporting data using the Realign Group Reporting Preparation Ledger scheduling job in the Schedule Jobs for Consolidation Tasks app.

When you run the job, the system selects the current period data and clears the group reporting fields. After clearing, the predefined substitution rules are started again and are automatically applied to journal entries.

Note

The scheduling job uses a year-to-date (cumulative) approach and corrects errors from previous periods. SAP recommends using this job approximately once a year.

You may use this job to:

  • Initialize the integration with group reporting preparation ledger for periods before the activation. The job selects data from period 000 to the current period. The specific fields in group reporting are cleared and the predefined substitution rules are run again.
  • Correct errors from previous periods.
  • Schedule the job at year-end to ensure that the opening balance in a new year and the closing balance of the previous year are equal.
Note

When the system realigns the group reporting preparation ledger, it doesn't use subitem 900 (opening balance). For the opening balance, it uses the reclassification subitem that defined in the group reporting preparation ledger. This prevents the opening balance from being modified by the derivation process.

To realign the group reporting data, go to the Schedule Jobs for Consolidation Tasks app:

  1. Choose Create:
    • Select the Schedule Jobs for Consolidation Tasks job template.
    • Enter a Job Name or use the system-generated name.
  2. Choose Start Immediately or select a Recurrence Pattern.
  3. Make the following selections:
    • Consolidation Units: Companies assigned to the consolidation units determine the underlying company codes to be processed.
    • Version: Version is used to determine the accounting ledger for which the realignment function shall be executed. It's the accounting ledger that is maintained as the preparation ledger in the selected consolidation version.
    • Fiscal Year / Period: This determines for which fiscal year and period the realignment task is executed. It also determines the fiscal year and period the company assignment to the selected consolidation unit is taken from.
    • Technical Settings:
      • Periodic Mode: Process the current period records.
      • YTD: Process year-to-date (cumulative records for the entire year).
        Note
        SAP recommends running the Balance Carryforward job after realigning the group reporting preparation ledger. In this context, you should run the Realign Group Reporting Preparation Ledger job in year-to-date mode in the last period of the year. As a result, discrepancies between the opening balances in the new year and the closing balances in the prior year are prevented.
      • Log: A log is generated for the job.
      • Test Run: The job can be run in test mode when needed.

Realignment Example

At ABC Corporation, the substitution rule for company code 1710 and profit center CF10_B was set up incorrectly. Accounting documents were posted and then released. Let's walk through the steps to realign the data.

In step 1 of this scenario, the substitution rule is created to derive consolidation unit US10 (it should have been US10A).

In step 2a of this scenario, an accounting entry is created for company code 1710 and profit center CF10_B.

Note
In this case, the Reference Document Type is BKPFF.

In step 2b of this scenario, the group reporting fields are populated in the accounting document line items. The group reporting fields include Cons Unit US10.

In step 3 of this scenario, the data is released for consolidation unit US10.

In step 4 of this scenario, the group reporting line items display the data for consolidation unit US10.

In step 5 of this scenario, the data for consolidation unit US10 is displayed in the group data analysis report.

In step 6 of this scenario, the substitution rule is corrected. It now derives consolidation unit US10A (instead of US10).

In step 7 of this scenario, the data is realigned for consolidation unit US10. This job creates realignment documents in accounting.

In step 8 of this scenario, the data is released for consolidation units US10 and US10A. The previously released data for US10 is reversed. The data is correctly booked against US10A in group reporting.

In step 9a of this scenario, the data for consolidation unit US10 and US10A is displayed in the group reporting line items:

  • Document Number 100000018: This is the original accounting document.
  • Document Number 100000019: This is the realignment accounting document for G/L account 10010000.
  • Document Number 100000020: This is the realignment accounting document for G/L account 31000000.

As a result, consolidation unit US10 is reversed and US10A is booked.

In step 9b of this scenario, the Reference Document Type is GRRFP (GR Per Reclass) is displayed in the realignment document header in accounting.

In step 9c of this scenario, the group reporting field assignments in the accounting document line items are displayed again. They aren’t affected by the realignment.

In step 10 of this scenario, the data is now correctly displayed for consolidation unit US10A.

In summary, the incorrect substitution rule has been corrected and the data is released:

  • The data in group reporting is now correctly posted to consolidation unit US10A.
  • Realignment documents are posted in accounting.

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