Executing the Steps of Record to Report on Transactions and Identify which SAP Solutions are Applicable

An organization's finance and accounting professionals record all financial transactions. The recording process involves documenting revenues, purchases, and expenditures for business units throughout the organization. The data required for creating financial statements and management reports, including journal entries, general accounting activities or procure-to-pay cycles, etc. is also recorded. 

After the recording and processing of financial data, the general ledger must be closed at the end of an accounting period. This period depends on the organization's reporting needs, such as monthly, quarterly or annually. During the closing process, the balances are transferred from temporary accounts to permanent accounts. Temporary accounts look at a specific period and may include revenues, expenses and dividends.

After the closing, the consolidation portion of the record to report process can begin. Sometimes called the reconciliation and validation stage, this step involves reviewing the recorded transactions and sorting them into appropriate categories. This step organizes similar information together and verifies that everything is correct in order to develop reports for stakeholders.

A group accountant can leverage Intercompany Matching and Reconciliation (ICMR) to match documents continuously between consolidation units, monitor the reconciliation status, make adjustments from group's perspective before the data is ready for consolidation, submit reconciliation results for approval, close period reconciliation, and run elimination.

In the final step, the financial reports are created. After reviewing the data for completion and accuracy, various reports can be generated.

The Regulatory Reporting or Submissions application area is used to produce volumetric reports based on production data. These reports are used to meet the requirements of many state and federal agencies.

SAP S/4HANA is an intelligent ERP system of the new generation, which uses exclusively the Hana in-memory database developed by SAP. SAP S/4HANA has embedded in it the latest technologies in our processes so that companies do not have to integrate multiple AI solution providers.

Central Finance is an add-on of a S/4HANA system. Central Finance receives real time financial accounting transactions from multiple SAP or non-SAP ERP systems. With Central Finance, you can transition to a centralized SAP S/4HANA on-premise edition without disruption to your current system landscape, which can be made up of a combination of SAP systems of different releases and accounting approaches and non-SAP systems.

Group reporting supports the computation, creation, and disclosure of consolidated reports that provide information on the performance of a corporate group.

GR/IR Clearing (goods receipt/invoice receipt) is a function that you execute in order to clear the Purchases in Transit and Unbilled Payables accounts when both the goods received and the associated invoices have been recorded in the system.

SAP Cash Application is a bundle of cloud microservices to automate and simplify the order-to-cash process in accounts receivable accounting with machine-learning-based technology, for use in SAP S/4HANA Cloud and On-Premise editions.

The Financial Closing Cockpit helps you with the planning, execution, and analysis of closing operations for the organizational units of your corporate group. The solution provides a structured user interface for recurring periodical tasks in the closing process in which several people responsible are involved.