Name: Why YPS2 Financial Statement Version is Important in SAP S/4HANA Cloud - SAP S/4HANA Cloud Finance and Risk
Uploaded: 2023-2-1
Duration: 504 s

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<div><div><div>This video will describe the financial statement version, YPS2, and how it can be leveraged as part of the provided best practice content from S/4HANA Cloud. <br><br>First off, you'll receive general background information of financial statement versions to define what they are and how they are used. Afterwards, you'll learn specifically about the YPS2 financial statement version and the essential aspects to know during your implementation and ongoing operations to make the best use of it. This will be demonstrated via a system demo.  <br></div></div></div>

Why YPS2 Financial Statement Version is Important in SAP S/4HANA Cloud - SAP S/4HANA Cloud Finance and Risk

Hello and welcome to this microlearning for SAP S/4HANA Cloud for Finance. My name is Johannes Haselmayer and I work as a consultant in the S/4HANA Cloud MEE team. In this video, we will talk about the financial statement version, YPS2, and how it can be leveraged as part of the provided best practice content from S/4HANA Cloud. The agenda will be split into three parts today. First, we will look at some general background information of financial statement versions to define what they are and how they are used. Afterwards, we'll specifically talk about YPS2 financial statement version and explain what you need to do during your implementation and ongoing operations to make the best use of pre-delivered YPS2. This will also be demonstrated via an example in the system directly. Let's start with some generic information about financial statement versions. With S/4HANA Cloud, you are using the pre-delivered chart of accounts, which is a list of GL accounts that usually is adapted during an implementation. Some GL accounts need to be blocked, others need to be renamed or renumbered, new GL accounts need to be created. Without financial statement versions, the chart of accounts is just an unsorted list of accounts that is not created in a specific order. This is where the financial statement version comes into play. The necessity to structure the GL accounts in a specific way according to legal regulations or other custom requirements to put them into a hierarchical arrangement is met by the financial statement version. Doing so, the financial statement version can be used to generate financial statements, but it might also be used as a basis for planning or to fulfill other internal or custom reporting requirements. With S/4HANA Cloud, specific financial statement versions are pre-delivered and supposed to be leveraged to not build up a new financial statement version from scratch. they can be copied into the Manage Global Hierarchies application, which makes changes in the assignment of GL accounts easy using the drag-and-drop functionality. With YPS2 financial statement versions, things are a bit different. To explain, let's first have a look at where YPS2 is used by default. The main important usage area of YPS2 is a couple of standard reports, like project profitability, the EPPM projects, or purchase order commitment reports, that we deliver out of the box. The important point is that in those reports, YPS2 is hard-coded in the backend. So to make the reports show the correct figures, you need to assign all of your GL accounts to YPS2 financial statement version, which can only be edited in the Manage Financial Statement Versions application. We'll see later with an example what this exactly means. An additional fact to mention is that YPS2 also has semantic tags assigned to it, which are used in some standard reports. These explanations lead to two call-to-actions for customers. First, you need to review the assignment of financial statement version nodes to semantic tags to make sure you know which GL accounts will be part of which semantic tag. And second, you need to maintain all the GL accounts which you create additionally under the correct YPS2 financial statement version node to ensure you can leverage the functionality of the standard reports. After explaining what you need to be aware of during YPS2 usage, I would now like to show an example of how the YPS2 assignment makes a difference in the relevant reports in the system. The example that we will look at is a revenue recognition report of a customer project. As we can see in the display line items in general ledger application, we already have times and an invoice posted against the project. The invoice was posted to a new revenue account, an account which is not a standard account. What we need to check now is whether the posted figures that we see in the display line items in General Ledger Application are also displayed in the Revenue Recognition Monitor. In the revenue recognition monitor, we can see the actual cost posted via the timesheet of the consultant, but surprisingly, the billed revenue amount is zero, even though we have posted an invoice already, as we saw before. To be able to see the correct figures here, we need to ask ourselves what the technical background of this report is. In this case, the report shows semantic tags which are assigned to YPS2 financial statement version nodes. So let's check in the customizing area of our system which financial statement version node is assigned to the billed revenue semantic tag. The 102659 configuration step assign semantic tags to financial statement version has the information which we are looking for. Now we need to navigate to the configuration step and search for the semantic tag billed revenue. What we can see now is that the financial statement item 10 is assigned to the respective semantic tag. This means that the account to which we have posted the customer invoice needs to be assigned to the financial statement item 10 of the financial statement version, YPS2. The assignment of GL accounts to financial statement version nodes is performed in the Manage Financial Statement Versions application. We navigate to the financial statement items of YPS2, but unfortunately we cannot find the IDs of the items there. To know which financial statement version node has the ID 10, we need to make the item keys visible via the change settings functionality. Finally, we can see that the Revenue Billed node is the one which is assigned to the Billed Revenue semantic tag. As we can see as well, the GL account which we have used in billing is not assigned to this financial statement version node. To make the report show the correct figures, we will assign the account to the financial statement version node via Assign Accounts. After saving and activating the financial statement version, we can navigate back to the revenue recognition report to check if it displays the correct figures now. On the event-based revenue recognition projects application, we will do a quick refresh of the page. Afterwards, we can see that the billed revenue amount is now 800 and the other KPIs have also been adapted accordingly. Of course, this is just one example where YPS2 is used in reporting, but the steps that we have done now work accordingly in the other areas such as EPPM project budget as well. This concludes the demo, back to the presentation. Let's summarize the key learnings. You have understood the general background why financial statement versions exist and how they are used. Furthermore, you are aware where YPS2 is used as a default financial statement version, and you know what you need to do during your project to make use of standard reporting functionality. For more knowledge on SAP S/4HANA Cloud, please check out the offering of openSAP courses and learning journeys on the respective websites. Thanks and goodbye.