In this lesson we will learn about financial statement versions, objects that provide structure to the main reports in financial accounting, like balance sheet and income statement. We will take a look on how financial statement versions are built and understand the logic behind them.
The board of your manufacturing company wants to see full reporting on all area of its business. Also, considering the fact that your company needs to report based on different accounting standards, like German-GAAP and IFRS, you need to ensure that all financial reports comply with all legal regulations. For this, separate financial statement versions are configured and are presented.
The G/L accounts in general ledger accounting record all transactions within accounting. The balances of the individual accounts flow into the company's financial statement for reporting.
The figure, Financial Statement, shows an example of important items in a country-specific balance sheet. The structure always depends on customer-specific requirements.
Financial Statement Versions
The Financial Statement Version in SAP S/4HANA determines where a G/L account is displayed within the balance sheet and profit and loss statement.
Different Financial Statement Versions can be used in a company code. The reasons for this could be, for example:
- Parallel Accounting: Reporting according to different local and international accounting principles.
- Different Target Groups: Internal or external.
For this reason, a G/L account can be assigned to several Financial Statement Versions.
Two independent SAP Fiori apps are available in SAP S/4HANA for the maintenance of Financial Statement Versions:
- Maintain Financial Statement Versions (based on SAP ERP transaction OB58/FSE2).
- Manage Global Hierarchies (new in SAP S/4HANA).
A Financial Statement Version can only be maintained within the app in which it was originally created. Because the app Manage Global Hierarchies has an enhanced functional scope (for example: Time Dependency of Structures), we recommend using this app for the maintenance of the balance sheet and profit & loss statement. OB58/FSE2 based versions can be easily migrated by using the Manage Global Hierarchies app.
You can display which financial statement version(s) an account is assigned to on the Where Used tab page in the G/L account master record (available for Financial Statement Versions based on the SAP Fiori app Maintain Financial Statement Versions).