Group Reporting - ACDOCU data flow -a brief

In SAP S/4HANA Group Reporting, the consolidation process involves multiple steps to bring together financial data from different entities within a group for the purpose of creating consolidated financial statements. The ACDOCU table is the main repository where consolidation entries are stored. Here's a breakdown of the Group Reporting consolidation process and the stages when entries are created in the ACDOCU table:

1. Data Collection and Reporting Preparation

• Local Data Preparation: The first step involves collecting and preparing financial data from individual entities within the group. The data is typically sourced from ACDOCA (Universal Journal) and mapped to the Group Reporting data model (ACDOCU).
• Loading Data to ACDOCU: Financial data (actuals or planned) is uploaded into ACDOCU from ACDOCA through predefined mappings. During this step:
  • Trial Balances from each entity are uploaded to ACDOCU.
  • Entries in ACDOCU are typically created using mapping rules from financial and non-financial data (e.g., inventory, fixed assets).

ACDOCU Entry Creation:

• Entries related to trial balance data for each consolidation unit are created here.
• Data fields in ACDOCU are populated with reporting and consolidation unit, consolidation chart of accounts, transaction currency, and other dimensions relevant for consolidation.

2. Intercompany Reconciliation

• Eliminating Intercompany Transactions: Intercompany receivables, payables, revenues, and expenses between group entities are identified and reconciled.
• Posting of Adjustments: Any differences found in the intercompany reconciliation are adjusted by posting consolidation adjustments.

ACDOCU Entry Creation:

• During the reconciliation and elimination process, SAP creates elimination entries (debits and credits) in ACDOCU for intercompany transactions. These are posted with a specific document type related to eliminations.
• Typical entries here include elimination of intercompany payables/receivables and intercompany sales/costs of goods sold (COGS).

3. Currency Translation

• Foreign Currency Translation: Financial statements of subsidiaries in different currencies are translated into the group's reporting currency. This is done based on the exchange rates maintained in SAP.
• Consolidation Entries for FX Translation: When translating foreign currencies, translation differences between local and reporting currencies are posted as gain or loss.

ACDOCU Entry Creation:

• During the currency translation step, SAP posts adjustments into ACDOCU related to translation differences. These entries are marked with specific document types (e.g., currency conversion adjustments).
• Foreign exchange gains and losses are posted here.

4. Elimination of Investments

• Investment Elimination: If one entity within the group holds an equity investment in another, the investment is eliminated as part of the consolidation process. This prevents double-counting equity.
• Goodwill Calculation: In case of full consolidation, goodwill or excess value adjustments may be calculated and posted.

ACDOCU Entry Creation:

• SAP posts eliminations of the investment in ACDOCU. These are matched with corresponding equity adjustments to reflect the elimination of investment balances.
• Entries related to non-controlling interests (NCI) and goodwill adjustments are created during this step.

5. Consolidation of Net Income and Retained Earnings

• Profit and Loss Consolidation: The group's income statement (profit and loss) from each entity is consolidated, and any internal profits are eliminated (e.g., internal sales profits).
• Retained Earnings Calculation: Retained earnings are updated to reflect the group's consolidated net income.

ACDOCU Entry Creation:

• Entries in ACDOCU are created to consolidate net income, dividends, and internal profits.
• Adjustments to retained earnings are posted, reflecting the cumulative impact of consolidation adjustments on retained earnings.

6. Consolidation Adjustments and Reporting

• Manual Adjustments: Some consolidation adjustments (e.g., corrections, reclassifications) are posted manually if required.
• Consolidated Financial Statements: The final consolidated financial statements (balance sheet, income statement) are generated using the ACDOCU data.

ACDOCU Entry Creation:

• Manual or automated consolidation adjustments are posted here.
• These entries are typically identified by custom document types for reporting or auditing purposes.

7. Data Release and Reporting

• Release of Data: After all consolidation steps are complete, the consolidated data in ACDOCU is locked and released for reporting.
• Final Consolidated Reports: SAP generates group-level financial reports, including consolidated balance sheets, income statements, and cash flow statements based on the data in ACDOCU.

Detailed Value Movements in ACDOCU

• Balance Sheet Items: Entries for assets, liabilities, and equity from each unit's trial balance, translated to the group currency.
• Income Statement Items: Revenue and expense items, including adjustments for intercompany eliminations and currency translation.
• Elimination Entries: Intercompany transactions, including payables/receivables and internal sales/COGS, are eliminated, and the corresponding entries are posted in ACDOCU.
• Translation Differences: Foreign currency translation adjustments are posted, affecting the consolidated financials.
• Investment and Equity Adjustments: Elimination of investment balances and adjustments to equity positions, such as non-controlling interests, are reflected in the ACDOCU table.
• Goodwill and NCI: Goodwill, non-controlling interest adjustments, and retained earnings entries are also created during the consolidation process.

The final entries posted in ACDOCU allow for the generation of consolidated financial reports that reflect the true financial position and performance of the group.