Reviewing Selection Objects and Reclassifications

Objective

After completing this lesson, you will be able to recall the value added of selection objects used in configuration like the reclassification method

Selection Objects and Reclassifications

Selection Objects

Selection Objects – Key Points

  • A selection object groups a range of consolidation master data, typically the FS items, by using various filter criteria.

  • The defined selections can be reused in consolidation-related settings, such as:

    • Validation rules

    • Reclassification methods

    • Currency translation methods

    • Breakdown categories

  • Instead of hard coding FS items in, for example, reclassification methods, Selection Objects are used.

    This helps to de-couple master data from configured objects, e.g., methods do not have to be changed and transported if a new FS item assignment is needed.

  • Selection Objects are re-usable. This lowers the cost of maintenance.

  • Delivered selection objects cannot be changed, but customers can create their own.

The figure explains in which configuration objects Selection Objects can be used and gives an example how a Selection Object can be set up. In the set up values, hierarchy nodes, attributes and boolean logic can be used.

Reclassifications

Country-specific accounting standards do not comply with the group policy. To ensure that the local close complies with the group accounting principles, an adjustment posting automatically executed on a regular basis is required. This will transform the reported financial data into standardized data.

Technically, this transfer is set up with the help of a reclassification rule which is embedded in a reclassification method.

This figure explains how a Reclassification Method has to be assigned to a task in the Data Monitor. This has the advantage that you can check the status.

The figure above explains how a reclassification method with one or several reclassification rules (sequence numbers) is assigned to the data monitor. The same approach also applies for the consolidation monitor.

In the Data Monitor, you can only use reclassifications for the following posting levels:

  • 01 – Manual correction of reported data

  • 10 – Manual standardizing

  • 0C – Manual correction of universal journal.

In the Consolidation Monitor, you can use reclassifications for the following posting levels:

  • 01 – Adjustments to Reported Data

  • 10 – Standardizing Entry

  • 20 – Two-sided Elimination Entry

  • 30 – Consolidation Entry.

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