Group Structure in Group Reporting

Group Structure in SAP Group Reporting (New Logic)

SAP Group Reporting offers a powerful solution for consolidated financial reporting, especially for complex corporate structures. Let's break down how to handle your multi-layered group in SAP Group Reporting using the new logic.

Understanding Your Structure

Your company has a classic parent-child ownership structure with multiple layers:

• A (Parent Company)
  • B (Subsidiary)
  • C (Subsidiary)
    • D (Subsidiary)
    • E (Subsidiary)
    • F (Subsidiary)
      • G (Subsidiary)
      • H (Subsidiary)
      • I (Subsidiary)
      • J (Subsidiary)
      • K (Subsidiary)
        • L (Subsidiary)
        • M (Subsidiary)
        • N (Subsidiary)

1. Units in Group Reporting

In SAP Group Reporting, each company in your structure will be represented as a consolidation unit. You'll need to create units for A, B, C, D, E, F, G, H, I, J, K, L, M, and N.

Important Considerations for Units:

• Attributes: Each unit needs attributes like company code, chart of accounts, fiscal year variant, and currency.
• Ownership: You'll define the ownership relationships between these units (e.g., A owns 100% of B and C). This is crucial for consolidation.
• Reporting Dimension: Assign your units to a reporting dimension (e.g., "Legal Entities"). This helps in organizing and filtering data.

2. Consolidation Groups

Consolidation groups in the new logic of Group Reporting are dynamic. They are defined based on ownership, allowing for flexible reporting. You don't necessarily need to create static consolidation groups for each level of your hierarchy.

How it Works:

• Top-Down Consolidation: When you consolidate, the system automatically determines the subsidiaries based on the ownership you've defined in the units.
• Example: If you initiate consolidation for unit A, the system will consolidate B, C, and all their subsidiaries down to L, M, and N.

3. Consolidation Process

Here's a simplified consolidation process in Group Reporting (new logic):

• Data Collection: Financial data from each subsidiary (units B to N) is collected. This can be done through manual uploads, SAP S/4HANA integration, or other data sources.
• Data Validation: Perform data validation checks to ensure data accuracy and consistency.
• Currency Translation: Translate the financial data of subsidiaries into the reporting currency of the parent company (A).
• Intercompany Eliminations: Eliminate intercompany transactions between your subsidiaries (e.g., sales from B to C) to avoid double-counting.
• Consolidation of Investments: Consolidate the investments of the parent company in its subsidiaries.
• Group Financial Statements: Generate consolidated financial statements (balance sheet, income statement, cash flow statement) for the entire group.

Key Advantages of the New Logic:

• Flexibility: Easily adapt to changes in your group structure (e.g., acquisitions, divestitures).
• Simplified Maintenance: No need to constantly update static consolidation groups.
• Improved Performance: Optimized consolidation process.

Important Notes:

• Master Data Governance: Accurate and up-to-date master data (units, ownership) is essential.
• Consolidation Rules: Define specific consolidation rules (e.g., for equity method, joint ventures) if applicable.
• Reporting Features: Utilize Group Reporting's reporting capabilities to create various reports and analyses.

By following these steps and leveraging the new logic in SAP Group Reporting, you can effectively manage the consolidation process for your complex group structure.