Name: Advanced Valuation: Post B/S Reclassification - SAP S/4HANA Cloud Finance and Risk
Uploaded: 2022-12-20
Duration: 709 s
Description: Understand how the reclassification helps in making correction postings so that numbers get displayed properly on the financial statements.

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<div>Understand how the reclassification helps in making correction postings so that numbers get displayed properly on the financial statements.</div>

Advanced Valuation: Post B/S Reclassification - SAP S/4HANA Cloud Finance and Risk

Hello and welcome to this Microlearning for SAP S/4HANA Finance. My name is Mirella Vorsprach, and I’m a senior product specialist for Finance. In this video, you will learn how to setup and run a period-end closing to demonstrate the benefits of the next generation of B/S reclassification. First, I will introduce the status of the posting B/S reclassification, then explain the posting logic then configuration and process overview. Last but not least will show you the demo in the system. Post B/S Reclassification replaces the classical regrouping which is based on the ECC and S/4HANA OP and CE in the form of job entry in Schedule General Journal app. Beside to it, it is also supported to be created as a task in Advanced Financial Closing. The innovation highlights of posting B/S reclassification are where non-open items are supported, automation of payments related to payable and receivables, correction posting of original reconciliation accounts, accurately presenting financial statement according to different accounting principles, and unifying the customization and handling of advanced valuation runs. Scope of B/S reclassification are: for trade payables and receivables according to maturity by due date and reclassification for customers with credit balances and vendors with debit balances. In this part, the business case scenario, will reflect the concept of the booking and reclassification in the system considering the aging increments. Company A in US made a contract for 36.000 $ with Company B, where the invoice has been issues with due payment in 36 months. As a results of reclassification, the amount has been reposted to credit side of receivable domestic reconciliation account as source account and reposted to debit side on trade receivable domestic due > year with 12101000 as a target account. In other words, reclassification of debit balance from short-term receivable account to long-term receivable account. In this slide, you are seeing the overview of configuration spots that are required for the reclassification. Starting from activating the advanced valuation, to defining the aging increments to defining the reclassification rules where you define the rule first then define steps then assign the G/L accounts. Last but not least is to assign the reclassification rule to the accounting principles. Here is the whole process overview, where you define the financial statement in the Manage Global Hierarchies, then configuration in the system for defining the reclassification, then execute the job template post B/S reclassification in the Schedule General Ledger jobs. Then, last but not least check the results in results log and then in the financial statement report. In this slide, you are seeing the list of required spots in other to configure the reclassification for proper period-closing run. Now I will show you the demo in the system. For the configuration of reclassification of advanced valuation, here we go to the Manage Your Solution App. Then we type the advanced valuation in the search area. Then we start with maintaining the relevant steps required for running reclassification. Firstly, we activate the accounting principle in advanced valuation, as you see the US accounting principle is activated. Secondly, we need to define the aging increment which are needed for defining the reclassification rule. So, we will use the standard one “SGLOBRCL” which is splitted to the short-term till 12 months and long-term till 999 months. So, the first one is for current and another one is for a non-current. Thirdly, we go to define the reclassification rule, so here is the standard one “SBSR” which is delivered by SAP then you see the aging increment “SGLOBRCL” has been assigned to reclassify receivables and payables as for our example. Then in the table view below, the respective G/L accounts of source and target are maintained here reflecting the reposting for different cases. Last but not least, is to assign the defined rule to the respective accounting principle. So, for our example, you see that accounting principle USAP is assigned to SBSR. Now we go to the next part, for posting the invoice for the customer by receivable accountant. Firstly, we check the setting of the business partner, here we go to Maintain Business Partner, and we type our business partner, and we want to check whether this business partner is assigned to the reconciliation account “Receivable Domestic” as a source account. So, here we see that it is already assigned to 12100000. Under the business role of GL_Accountant, I am going to display the posted invoice. We can see the invoice with amount of 36.000 $ is posted to the debit side of the reconciliation account “Receivable Domestics” on the asset side. and for the sales revenue without the cost element account to post the revenue on this account. Now we are ready to run reclassification. So, I already created and ran the job template of post B/S reclassification in the Schedule General Ledger Jobs, here we go to see the results of reclassification in the functional currency. the document has been posted correcting the position of this invoice. To validate the results, here we go to Balance Sheet app. So, here is the source account which is the reconciliation account. Then we look for the posted invoice to the customer. Here you see the number 36.000$ on this account. Now, we want to check whether it is posted on the target account. which means after reclassification run, reclassified the invoice by maturity. And then this is our posted reclassification. And on the other hand, you can use the T-Account view in order to display the posted documents, so here you see the posted journal entry. with 36,000 $ on this account which has been posted on the debit side 36.000$ . And then in the  sales revenue without cost element on the credit side, generating the revenue after reclassification is had been reclassified from this source account to this target account. And for this one is just offsetting Key learning is to understand how the reclassification helps in making correction postings so that the numbers get displayed properly on the financial statements at the period-end close. This Microlearning relates to the scope item J58 in the best practice explorer as well as further detailed explained in the SAP blogs of Finance for SAP S/4HANA Cloud 2202. Please check out the offering of openSAP courses at open.sap.com and search or filter for your MOOCs of interest as well as our SAP learning journeys on help.sap.com/learningjourneys. Thank you and goodbye.