Data Analytics in SAP S/4HANA Group Reporting

Data Analytics in SAP S/4HANA Group Reporting

The sources discuss the "Analytics" section of SAP S/4HANA Group Reporting, focusing on the tools and functionalities that enable users to analyze consolidated financial data effectively. The section covers various aspects of data analysis, including analytical apps, reporting logic changes, report customization options, and common issues users might encounter.

Analytical Apps and Reports

The sources mention several analytical apps used for analyzing group financial data:

• Consolidated Balance Sheet: This app provides a consolidated view of the balance sheet for the selected consolidation group.
• Consolidated P&L Statements by Nature of Expense: This app displays the consolidated profit and loss statement categorized by the nature of expenses. Note that this app is deprecated in SAP S/4HANA 2022 and will be removed in SAP S/4HANA 2023.
• Data Analysis - Reporting Logic: This app is based on the old reporting logic and is only applicable to customers using releases older than SAP S/4HANA 1909 who have not migrated to the new reporting logic.
• Rule-Based Reports: Similar to the Data Analysis app, this app is also based on the old reporting logic and is deprecated in SAP S/4HANA 2022, slated for removal in SAP S/4HANA 2023.
• Group Data Analysis: This app replaces the older apps (Data Analysis and Rule-Based Reports) for customers with an initial release of 1909 or higher. It is based on the new reporting logic.
• Group Data Analysis - With Reporting Rules: This app is also based on the new reporting logic and offers advanced analysis capabilities by incorporating reporting rules.
• Group Financial Statement Review Booklet: This app provides a comprehensive overview of the consolidated financial statements.
• Review Booklet Base App: This app serves as the foundation for the Group Financial Statement Review Booklet.
• Interunit Reconciliation apps: These apps help analyze interunit transactions and identify discrepancies between consolidation units.

Reporting Logic Transition

A significant change discussed in the sources is the transition from the old reporting logic to a new reporting logic in SAP S/4HANA 1909. This impacts various analytical apps and reporting functionalities. For example, the Local Reports are removed due to this change, and users are advised to utilize the Group Data Analysis app instead.

Customizing Analytical Queries

The sources highlight the capability to create custom analytical queries in SAP S/4HANA Group Reporting. These queries offer flexibility in terms of reporting measures and dimensions, allowing users to tailor the analysis to their specific needs. For instance, the sources provide a guide on creating a custom analytical query with a quarter-to-date (QTD) reporting measure for SAP S/4HANA 1809.

Common Issues and Solutions

The sources address several common issues users might encounter when working with analytical apps:

• Missing data in Consolidated Balance Sheet: This issue arises when global parameters are not maintained correctly. The sources suggest using the Set Global Parameters app to define parameters like the Ledger, which are necessary for the report to execute correctly.
• Irrelevant FS items in balance sheet and P&L statements: By default, the system displays unassigned FS items under the REST_H hierarchy node. To avoid this, users can specify the top node of the desired FS item hierarchy in the prompts or filter the report to display only the relevant FS items.
• Inconsistent consolidation unit display in Interunit Reconciliation apps: While the order of consolidation units defined in the prompts does not impact the calculated key figures, it can cause confusion in the display. The sources recommend specifying the leading consolidation unit and consolidation unit 2 in alphabetical order to maintain consistency.
• Missing consolidation unit hierarchies in Interunit Reconciliation app: This issue occurs when the desired consolidation unit hierarchy is not saved in the correct structure version. Ensure that the appropriate structure version is assigned to the consolidation version using transactions CXB1 and CX1X.
• Errors in SAP Analytics Cloud apps with default parameters: Some SAP Analytics Cloud apps require mandatory parameters, and using default values can lead to errors. The workaround involves removing default parameters and providing appropriate values based on the system configuration.
• Displaying subitem categories with blank subitems: This requires creating two reporting rules: one to display all data records and another to display only records with filled subitem categories and subitems. The second rule uses a reversed sign to effectively show only entries with blank subitems for specific subitem categories.
• Inconsistent text display for FS items: The sources explain that the medium text from the FS item master data is displayed as the long text in analytical UIs, and the short text is displayed as the medium text. This is due to compatibility considerations to avoid affecting existing queries and user variants.
• Error in Group Data Analysis app due to missing fiscal year: The "No value could be determined for variable !CDS_P_P_FISCALYEAR" error in the Group Data Analysis app arises when the fiscal year parameter is not defined. Users should define the fiscal year and other necessary parameters using the Set Global Parameters app or transaction CXGP.

Choosing the Right CDS View for Analytical Queries

• For OP 2022 and 2023, the recommended CDS views are:
  • I_CnsldtnGrpJrnlItemC
  • I_CnsldtnRuleBsdGrpJrnlItemC
• For OP 2021 and 2020, the recommended CDS views are:
  • I_MatrixConsolidationRptEnhcdC
  • I_MatrixConsolidationReportC

The sources emphasize the importance of understanding the different analytical tools, reporting logic changes, and customization options available in SAP S/4HANA Group Reporting. By addressing common issues and leveraging the system's functionalities effectively, users can gain valuable insights from their consolidated financial data.

Data Validation in SAP S/4HANA Group Reporting

Data Validation in SAP S/4HANA Group Reporting

The sources explain that data validation in SAP S/4HANA Group Reporting is an essential process for ensuring data accuracy and consistency. The sources focus on data validation within the "Validation" section, which addresses common challenges and issues users might encounter when working with validation apps or tasks in the system.

Validation Rules and Methods

Validation rules are the criteria used to check the data, while validation methods are collections of rules that are applied together. The sources highlight the importance of activating predefined or imported validation rules and methods for them to function correctly. This can be done through the Import/Export Validation Settings app (or Import and Export Validation Rules and Methods app or transaction code VECIE for releases prior to S/4HANA 1909 FPS00).

Common Issues

• Incomplete amount calculation: For releases prior to S/4HANA OP 1909 FPS00, ensure that the ALPHA conversion routine is considered for relevant fields when defining validation rules, especially when dealing with numeric and alphanumeric values. The ALPHA conversion routine handles leading zeroes and wildcard characters to ensure that all relevant values are included in the calculation.
• System dump error after upgrade: After upgrading to S/4HANA 2020 FPS01, users might encounter system dump errors when running validation tasks. This is due to the introduction of multiple group-by fields in validation rules, which causes incompatibility. To resolve this, activate all existing validation rules using the Schedule Mass Activation Jobs - Rules, Methods, and Selections app.
• System dump error during execution: System dump errors during validation task execution can also occur due to changes in the configuration content. To address this, activate the relevant validation method using the Schedule Mass Activation Jobs - Rules, Methods, and Selections app, creating an immediate job run for activation.

Optimizing Validation Performance

The sources provide some tips on how to optimize system performance, especially when dealing with a large number of validation rules:

• Minimize rules and operands: Keep the number of rules in each method and operands in each rule to a minimum.
• Simplify filter conditions: Use direct input values in filter conditions instead of field attributes and hierarchies, as the latter consumes more memory.
• Use "group-by" fields: When similar rules apply to the same dimension, consider using "group-by" fields in the rule definition to reduce redundancy.
• Implement note 3082123: Apply SAP Note 3082123 to support up to 3000 validation rules in one method, thus improving system performance. However, note that even with this note, processing a large volume of data with many validation rules can still lead to memory issues.

The sources emphasize the need to carefully design and implement validation rules and methods to ensure data quality and maintain optimal system performance in SAP S/4HANA Group Reporting.

Group Reporting in SAP S/4HANA Finance - a brief

Group Reporting in SAP S/4HANA Finance

The sources provide an overview of Group Reporting in SAP S/4HANA Finance, including prerequisites, data upload, documentation, frequently asked questions (FAQs), validation, analytics, monitor tasks, data volume and granularity, and usage of Group Reporting Preparation Ledger (GRPL).

Prerequisites for Implementing Group Reporting

• It is recommended to install SAP Best Practices (BP) configuration content (scope item 1SG) to gain a configuration starting point for Group Reporting.
• Alternatively, run an initialization program to create the minimum system settings needed.
• If scope item XX_1SG_OP is installed before FI Accounting Best Practices content (scope item J58, building block J02), an error message will display. This can be skipped, but operational chart of accounts YCOA from FI Accounting Best Practices is required for integration.

Flexible Upload of Financial Data

• Use the provided flexible upload template file and replace the sample data with your own.
• Use upload method SRD1 (with Tab as the field separator) or SRD2 (with semicolon as the field separator).
• For values starting with "0" in Excel, add an apostrophe before the value to prevent the leading "0" from disappearing.
• The "ledger" column is no longer needed for SAP S/4HANA on-premise 2020 FPS 01.
• For SAP S/4HANA on-premise 1809 and its feature packages, the SRD1 upload method needs correction.
• Do not create your own upload method or change settings other than the field separator.
• If you run the initialization program without installing SAP Best Practices content, customize the upload method in transaction CXCC.

Documentation and Guides

• Product documentation is available at https://help.sap.com/S4_OP_GR.
• Various guides and documents are available for different SAP S/4HANA On-Premise releases.

FAQs

The sources provide answers to common questions about Group Reporting, covering topics such as interunit reconciliation, FS item mapping, consolidation of data with different ledgers, data release from the universal journal, source for currency key figures, data deletion, flexible upload errors, data migration from old to new reporting logic, API setup, document number handling in elimination tasks, transport of changed objects, scope item activation, hybrid system usage, hierarchy changes, reactivation of scope item 1SG after release upgrade, investment percentage carryforward, activity-based Consolidation of Investment (C/I), flexible upload limitations, and consolidation version usage.

Validation

• For releases prior to S/4HANA OP 1909 FPS00, consider the ALPHA conversion routine for numeric and alphanumeric values in validation rules.
• From S/4HANA OP 1909 FPS00 onwards, leading zeroes in filter conditions only return exact matches.
• Activate predefined/imported validation rules and methods using the Import/Export Validation Settings app.
• After upgrading to S/4HANA 2020 FPS01, activate existing validation rules using the Schedule Mass Activation Jobs app.
• Activate relevant validation methods using the Schedule Mass Activation Jobs app to resolve system dump errors during validation task execution.

Optimizing Validation Performance

• Minimize the number of rules, operands, and filter conditions.
• Use direct input values instead of field attributes and hierarchies.
• Employ "group-by" fields for similar rules applied to the same dimension.
• Apply note 3082123 to support up to 3000 validation rules per method (depending on the product version).

Analytics

• Maintain global parameters using the Set Global Parameters app for reports to execute correctly.
• Suppress unassigned FS item nodes in analytical reports by specifying the top node of the FS item hierarchy or using filters within the report.
• Due to the new reporting logic introduced in S/4HANA 1909, Local Reports were removed, and the Group Data Analysis app should be used instead.
• In Interunit Reconciliation apps, the order of consolidation units in the Prompts does not affect the key figures, which are based on transaction data.
• Ensure that the desired consolidation unit hierarchy is saved in the correct structure version for accurate reporting.
• Resolve errors in SAP Analytics Cloud apps by removing default parameter values and providing appropriate values.
• Display subitem categories with blank subitems by creating two reporting rules: one for all data records and another for records with filled subitem categories and subitems.
• The long text/description of FS items cannot be exposed to Analytics; the medium text is used as the long text and the short text as the medium text.
• Select values for parameters in the Set Global Parameters app before using the Group Data Analysis app.

Monitor Tasks

• Reset the status of the Release Universal Journals task if the data transfer method is changed after the Data Monitor was initially called.
• The trading partner is transferred to the partner unit field if the FS item has a breakdown category with Partner Unit assigned.
• In release 1809, manually refresh the status of validation tasks.
• The balance carryforward task appears in each period until it is run in update mode.

Data Volume and Data Granularity

• Analyze the granularity of data transferred from ACDOCA to ACDOCU to avoid unnecessary information and improve performance.
• Reduce data volume by excluding characteristics not required for consolidation.
• Refer to KBA Note 3000108 for more information.

Usage of Group Reporting Preparation Ledger (GRPL)

• GRPL enables tighter integration with accounting from SAP S/4HANA 2021 FSP01 onwards.
• Refer to the documentation, how-to guides, and notes mentioned for information on GRPL activation and transition.
• SAP recommends transitioning to GRPL at the end/beginning of the year.

Impact of Large Number of Validation Rules

• After applying note 3082123, a validation method can handle up to 3000 rules.
• A high number of rules can impact performance, potentially exceeding available memory.
• Mitigate the risk by minimizing rules and operands, using value fields in conditions, and employing "group-by" fields.
• Implement note 3082123 to enhance performance.

Consolidation Methods in Group Reporting

In SAP Group Reporting, the Consolidation Method defines how different entities within a group are consolidated based on the share of ownership. Different methods are applied depending on the relationship between the parent and subsidiary entities, the percentage of control or influence, and specific business requirements. Here's a detailed guide on each consolidation method, including examples:

1. Parent (Direct Share) (00)

• Description: This method consolidates a subsidiary based on the direct ownership percentage that the parent company holds.
• Use Case: Used when the parent directly owns a certain percentage of the subsidiary.
• Example: If Company A owns 80% of Company B directly, only this 80% ownership will be considered in the consolidation entries. This method focuses strictly on direct share without aggregating any indirect ownership from sub-subsidiaries.

2. Parent (Group Share) (01)

• Description: Consolidation is performed using the group share or the percentage of ownership that the group as a whole has in a subsidiary, rather than only the parent company's direct share.
• Use Case: Used when ownership is assessed at the group level, especially when there are multiple layers of ownership within the group.
• Example: Suppose Company A owns 60% of Company B, and Company B owns 50% of Company C. The group share in Company C (for Company A) is 30% (60% * 50%), which is consolidated accordingly.

3. Purchase Method (Direct Share) (10)

• Description: This method applies to acquisitions and accounts for any goodwill or acquisition-related adjustments based on the parent's direct share of the subsidiary.
• Use Case: When a parent company directly acquires a portion of a subsidiary and needs to recognize goodwill in the local currency.
• Example: Company X acquires a 75% direct stake in Company Y. The purchase price paid over the book value creates goodwill, which is calculated based on the 75% ownership.

4. Purchase Method with Goodwill in Local Currency (Direct Share) (12)

• Description: Similar to the Purchase Method (Direct Share) but specifically designed to handle goodwill calculations in the subsidiary's local currency.
• Use Case: Useful in cases where currency impacts are significant, and goodwill should be recognized in the subsidiary's functional currency.
• Example: If Company M acquires an 80% direct interest in Company N (a foreign entity), goodwill is recorded in Company N's local currency, which might differ from Company M's currency.

5. Purchase Method (Group Share) (11)

• Description: This method is based on the group share ownership percentage, taking into account multiple layers of ownership.
• Use Case: When acquisition adjustments and goodwill need to reflect the entire group's ownership percentage in the subsidiary.
• Example: If Company A owns 60% of Company B and Company B owns 40% of Company C, then the group share for Company C is 24% (60% * 40%), and goodwill is calculated accordingly.

6. Equity Method (Direct Share) (20)

• Description: This method is typically applied for associates or joint ventures where the parent has significant influence but not full control, calculated by the direct share.
• Use Case: Common for associates where the parent owns 20-50% of voting power.
• Example: Company X has a 25% stake in Company Y and exerts significant influence. Under the equity method, Company X's share of Company Y's net income will be reported proportionately (25%) in its financial statements.

7. Equity Method (Group Share) (21)

• Description: Similar to Equity Method (Direct Share), but considers the group's total share in an associate or joint venture.
• Use Case: Applied when indirect ownership is also factored in to reflect group share rather than just direct investment.
• Example: If Company A owns 30% of Company B, and Company B holds 20% of Company C, the group share for Company C is 6% (30% * 20%) under the Equity Method (Group Share).

8. Equity Method with Goodwill in Local Currency (Direct Share) (22)

• Description: Applies the equity method based on the direct share and accounts for goodwill in the local currency of the associate or joint venture.
• Use Case: Used when the investment in an associate includes a premium over book value, and goodwill needs to be recorded in the associate's currency.
• Example: If Company Z has a 40% direct share in Company W, any premium paid by Company Z will create goodwill, which is then recorded in Company W's local currency.

Consolidation Method in SAP Group Reporting and how to set up in Flat structure in New logic

In SAP Group Reporting, the Consolidation Method determines how the financial data of a subsidiary is incorporated into the consolidated financial statements of the parent company. This is a key setting within the Consolidation Group Structure.

Traditional Consolidation Methods:

• Full Consolidation: The most common method. The subsidiary's entire financial statements are included in the consolidated statements after eliminating intercompany transactions.
• Equity Method: Used for investments where the parent has significant influence but not control. The parent's share of the subsidiary's net income is recognized on the parent's income statement.
• Cost Method: Used for investments where the parent has little or no influence. The investment is recorded at cost and adjusted only for impairment.

Setting up Consolidation Methods in a Flat Structure (New Logic):

In Group Reporting's new logic, a flat structure implies a simplified approach where all consolidation units report directly to the parent. Here's how to set up consolidation methods:

1. Define Consolidation Units: Use the "Define Consolidation Units" app to create entries for the parent company and each subsidiary.
2. Create Consolidation Group: In the "Manage Consolidation Groups" app, define a consolidation group and assign a unique ID.
3. Assign Consolidation Units: In the "Assign Consolidation Units to Consolidation Groups" app, assign the parent and subsidiaries to the group.
4. Specify Consolidation Method: During the assignment process, you'll assign a consolidation method to each subsidiary. This defines how their financials will be incorporated.

Key Considerations:

• Ownership Percentage: The ownership percentage plays a crucial role in determining the appropriate consolidation method. Full consolidation is typically used for majority ownership.
• Reporting Requirements: Legal and regulatory reporting requirements influence the choice of consolidation method.
• Intercompany Eliminations: Regardless of the method, ensure proper elimination of intercompany transactions to avoid double-counting.

Using the "Consolidation Monitor" App:

The "Consolidation Monitor" app provides a centralized platform to:

• Execute Consolidation: Run consolidation processes for specific periods.
• Monitor Status: Track the progress of consolidation runs.
• Analyze Results: Review consolidated financial statements and identify potential issues.

By correctly setting up consolidation methods in a flat structure, you can ensure accurate and compliant consolidated financial reporting in SAP Group Reporting.

SAP Group Reporting Group flat structure and how to organize multi level Consolidation

In SAP Group Reporting, the group structure is managed as a flat list of consolidation units. This means there's no inherent hierarchical relationship between the units within the structure itself.

This might seem counterintuitive when dealing with multi-level consolidations, where you have parent companies, subsidiaries, and potentially even sub-subsidiaries. However, SAP Group Reporting achieves this through the concept of consolidation groups.

Here's how it works:

1. Consolidation Units: Each company in your group is represented as a consolidation unit in the system.
2. Consolidation Groups: You create consolidation groups to represent different levels of consolidation. For example, you might have a group for the top level (parent company), another for a regional subsidiary, and so on.
3. Assignment: You assign each consolidation unit to the appropriate consolidation group(s). This is how you establish the relationships for multi-level consolidation.

Example:

Imagine a structure with:

• Parent Company A
• Subsidiary B (owned by A)
• Subsidiary C (owned by A)
• Sub-subsidiary D (owned by B)

You would create:

• Consolidation Units: A, B, C, D
• Consolidation Groups:
  • Group 1: Top Level (A)
  • Group 2: Subsidiaries (B, C)
  • Group 3: Sub-subsidiary (D)

Then, you would assign the units to the groups:

• A to Group 1
• B to Group 2
• C to Group 2
• D to Group 3

When you run consolidation for Group 2, it will consolidate the results of B and C. When you run consolidation for Group 1, it will consolidate the results of Group 2 (which already includes B and C) and A.

Key Takeaways:

• The flat structure simplifies management and provides flexibility.
• Consolidation groups are used to define the hierarchical relationships for consolidation.
• You can assign a unit to multiple groups if needed (for example, if a unit needs to be consolidated at different levels).

This approach allows for complex multi-level consolidations while maintaining a simple and efficient structure within SAP Group Reporting.

Understanding SAP Group Reporting and the Flat List of Consolidation Groups

Understanding SAP Group Reporting and the Flat List of Consolidation Groups

SAP's S/4HANA Group Reporting tool enables streamlined financial consolidation and reporting, crucial for organizations with complex corporate structures. With the release of SAP Note 2946165, SAP introduced a flat list of consolidation groups within the Data / Consolidation Monitor app. This article explains the setup and usage of consolidation groups within SAP S/4HANA's Group Reporting, including hierarchical configurations, reporting, and execution of automated tasks.

Environment and Prerequisites

SAP Note 2946165 is applicable for:

• SAP S/4HANA 1909 and higher
• SAP S/4HANA Cloud Public Edition 1902 and higher

Introduction to Consolidation Groups in the Data / Consolidation Monitor

The flat list feature simplifies visibility across all consolidation groups, essential for managing intricate structures with multiple subgroups. With a streamlined, centralized view, users can easily navigate and control consolidation processes across diverse organizational entities.

Using Hierarchies in Group Reporting

Hierarchy Creation: Users can set up a hierarchy in Manage Global Hierarchies and link it to the Group Data Analysis app for reporting purposes. This hierarchy enables users to view and analyze consolidated financial data across different group structures and hierarchy levels.

Structure and Configuration of Consolidation Groups

To represent consolidation structures effectively, SAP allows for multiple levels in the hierarchy.

Example 1: Simple Top Group and Subgroup Structure

1. Top Group (TOPGR): Includes consolidation units A and B.
2. Subgroup (SUBGR): Includes consolidation units A and C.

In the Manage Group Structure app, configure:

• TOPGR containing units A, B, and C.
• SUBGR containing units A and C.

This setup helps in consolidating data for different groups, streamlining the representation of shared units within each group.

Configuring Complex Hierarchies

A more complex legal consolidation hierarchy might have multiple levels. Consider the following example:

Example 2: Nested Hierarchy with Multiple Subgroups

• Top Group (TOPGR): Parent unit (PU)
• Subgroup 1 (SUBGR1): Includes units CU1 and CU2
  • Subgroup 11 (SUBGR11): Nested within SUBGR1, includes units CU3 and CU4

The hierarchical setup in the Manage Group Structure app would require:

• TOPGR to include PU, CU1, CU2, CU3, and CU4.
• SUBGR1 to include CU1, CU2, CU3, and CU4.
• SUBGR11 to include CU3 and CU4.

This structure enables a single consolidation version, representing each layer of hierarchy for a cohesive view of group relationships and reporting.

Managing Parallel Legal Consolidation Group Structures

In scenarios where two separate legal consolidation structures exist, such as those with shared consolidation units, each structure requires a distinct consolidation version to avoid overlapping data.

Example 3: Parallel Legal Structures

• Version A:

  • ATOPGR: Parent unit (PU), includes CU1, CU2, CU3, CU4.
  • ASUBGR1: Includes CU1, CU2, CU3, CU4.
  • ASUBGR11: Includes CU3 and CU4.

• Version B:

  • BTOPGR: Parent unit (PU2), includes CU1, CU2, CU3, CU4.
  • BSUBGR1: Includes CU1, CU3.
  • BSUBGR11: Includes CU2 and CU4.

These versions provide flexibility in managing parallel consolidation groups, allowing for accurate representation of financial data across distinct organizational structures.

Streamlining Tasks with Consolidation Monitor Automation

The Consolidation Monitor app provides an automated way to execute consolidation tasks for all groups in one go. Accessing More -> Tasks -> Execute All ConsGrps allows users to run consolidation tasks across all configured groups, a valuable feature for improving efficiency in group data consolidation and reducing manual intervention.

Conclusion

SAP Note 2946165's flat list of consolidation groups and enhanced structure management tools support finance teams in efficiently organizing and reporting on complex consolidation hierarchies. By leveraging the hierarchy capabilities, automated tasks, and flexible configurations, SAP S/4HANA Group Reporting enables organizations to maintain accurate, efficient financial consolidation across even the most complex business structures.