S/4HANA Finance for Group Reporting is a new SAP consolidation solution which is available for On-Premise use (Release 1809) or as a Cloud application (Release 1811). This product with strategic character combines all functionalities resp. advantages of SAP SEM-BCS and SAP BPC for consolidation.
With the “Single Source of Truth” concept in the form of the HANA database, a uniform basis has been created: The Universal Journal located in HANA (individual Financial Statement data or individual document table of financial accounting; ACDOCA) permanently corresponds with the consolidation data (ACDOCU) on the same platform.
The result is a comprehensive and direct real-time link between the central consolidation system and the operational accounts of the individual business units. In terms of technology, this represents a certain revolution:
In the case of the traditional downstream consolidation outside the operational pre-system (ERP), the data for each reporting event must be transferred to a separate consolidation system – and, if necessary, also be harmonized and validated partially with much effort.
By contrast, the consolidation is now carried out directly and continuously in the ERP system by using Continuous Accounting with SAP S/4HANA Finance for Group Reporting. This eliminates the need for complex data transfers while automated checks/validations (supported by interactive comments and reporting functions) are possible directly in the ERP system as well. The conversion of individual closing values from local or transaction currency to group currency is also carried out continuously and automatically – these data can be displayed in real time, too. Simultaneously, manual adjustment entries can also be carried out anytime.
Via integrative access to the full spectrum of accounting and controlling data, not only Legal Consolidation can be implemented conveniently as part of the closing processes – but also Management, Matrix or Capital Consolidation. Regarding the reconciliation between the accounting departments (Finance and Management), the effort is minimized considerably or eliminated completely: All financial data are based on identical account balances now.
At the same time, data redundancies are avoided reliably while data quality, loading and closing speed increase efficiently. Precise logging is ensured as well.
Thanks to the structural direct link between the consolidation table and the line-item table, you can switch from the consolidation level down to the individual document level at will – resulting in optimum transparency. Also in real time, Drag & Drop provides access to details (e. g. to cost centers) which cannot be displayed by default with conventional consolidation concepts. Business users can control the system by using stored specifications in the master data (analogous to SAP BPC).