Sub Group visibility in Group Reporting - New Reporting Logic

You're thinking strategically! Yes, creating lower-level groups in SAP Group Reporting can provide the granular visibility you need. Here's how it works and why it can be beneficial:

Creating Lower-Level Groups

Even though the new logic in Group Reporting emphasizes dynamic consolidation based on ownership, you can still create groups for specific purposes. These groups act as "sub-consolidations" within your overall structure.

Example:

• Group C Subgroup: Create a consolidation group specifically for C and its direct subsidiaries (D, E, F).
• Group F Subgroup: Create another group for F and its subsidiaries (G, H, I, J, K).

Representing a Unit as a Parent

In this setup, you would treat units C and F as "parent units" within their respective subgroups. This means:

• C acts as the parent for D, E, and F within the "Group C Subgroup."
• F acts as the parent for G, H, I, J, and K within the "Group F Subgroup."

How it Works

1. Data Collection: Data is still collected at the individual unit level (B to N).
2. Subgroup Consolidation: You can run consolidation specifically for the "Group C Subgroup" or the "Group F Subgroup." This provides you with consolidated financials for these subsets of your organization.
3. Overall Consolidation: When you consolidate at the top level (unit A), the system will still consolidate the entire structure, but you have the added benefit of the subgroup results.

Benefits of this Approach

• Detailed Insights: Gain deeper insights into the performance of specific parts of your organization.
• Management Reporting: Create reports tailored to the needs of different management levels. For example, the manager responsible for C might only need to see the consolidated results of C, D, E, and F.
• Analysis and Comparisons: Compare the performance of different subgroups within your organization.
• Flexibility: Maintain flexibility to reorganize or restructure without disrupting your overall consolidation process.

Important Considerations:

• Group Structure Setup: Carefully define the units, ownership, and groups in your Group Reporting structure to ensure accurate consolidations.
• Eliminations: Pay attention to intercompany eliminations within subgroups and at the overall group level to avoid double-counting.
• Reporting Requirements: Align your group structure with your specific reporting needs and any regulatory requirements.

By strategically creating lower-level groups and representing units as parents within those subgroups, you can gain more granular visibility and control over your consolidated financial reporting in SAP Group Reporting.