Global Settings for SAP S/4HANA Group Reporting

Group reporting is an integral part of SAP S/4HANA Finance, and similar to other financial modules, it needs to be set up as Customizing in the SAP Implementation Guide (IMG).

The figure below shows the group reporting Customizing menu in the overall IMG structure.

The SAP S/4HANA for Group Reporting node consists of various subsections for configurations and master data for consolidations. Transaction CXE9N is used frequently to provide direct access and a cleaner view of group reporting-specific Customizing tasks without actually navigating the entire IMG menu.

For the initial setup, going to SAP S/4HANA for Group Reporting > Global Settings for Consolidation > Initialize Settings generates standard settings that are mandatory for group reporting configuration when customers don’t want to use the standard SAP Best Practices content delivered by SAP. As shown in the next figure, consolidation can be executed in two modes: select Test Run to simulate the execution in test mode, or deselect it to fill the tables with initial settings.

In addition, you’ll see the Source Release option on this screen, which is relevant for upgrade scenarios only, identifying the preupgrade version of SAP S/4HANA. Selecting a value for this option causes the system to only initialize the settings higher than the selected version, ensuring a delta update to initialization. No selection in this field occurs when initialization is being done for the first time. There is a different source release (for different scenarios of upgrade) that can be selected depending on the current version of group reporting from which the initialization has to be picked up. An option to overwrite existing settings as part of initialization is also supported. This is helpful to start from scratch and update the settings as if they were installed for the first time.

You can set global parameters by navigating to Set Global Parameters (or by executing Transaction CXGP, or by going to the Set Global Parameters app), which is required for nearly all configuration activities or subsequent steps of the consolidation process. The following fields are available to set the context or scope, as shown here:

• Group/Cons. Unit: Optional fields to set the consolidation group and unit, respectively.
• Version: Sets of financial data undergoing consolidations such as actuals or budget.
• Fiscal Year/Period: Time period identifying the consolidation period.
• COA: Group reporting chart of accounts and superordinate characteristics of FS items in group reporting. As part of standard business content, SAP provides Y1 as the chart of accounts.

Once parameters are set, you can also navigate to SAP S/4HANA for Group Reporting > Global Settings for Consolidation > Check Global System Settings in the IMG. Let’s walk through each setting, as shown in the next figure.

• From Year for LIs in SAP S/4HANA: Sets the fiscal year starting when the group reporting table ACDOCU updates the data. It’s an initial setting and can’t be updated once saved.
• From Year for New Group Report Logic: Provides a starting year for the new group reporting logic to be effective. The logic contains various delivered functions that support consolidations. As an example, the following apps are now deprecated (as of SAP S/4HANA release 2023), which worked with old reporting logic. These are replaced with a single versatile SAP Fiori app, Group Data Analysis, using new reporting logic.
  • Data Analysis - Reporting Logic (W0056)
  • Consolidated Balance Sheet (W0059)
  • Consolidated Balance Sheet - By Movements (W0060)
  • Consolidated Balance Sheet - By Subgroups (W0061)
  • Consolidated Balance Sheet - Year Comparison (W0062)
  • Consolidated P&L by Function (W0067)
  • Consolidated P&L by Nature (W0070)
  • Interunit Reconciliation - Group View (W0099)
  • Interunit Reconciliation - Unit View (W0103)
  • Cash Flow Statement (W0104)

Note: New reporting logic was introduced starting in SAP S/4HANA release 1909 and onward. Customers upgrading from older releases to 1909 or later must use this setting to set a cutoff between the reporting logic for the system to support old and new reporting logic while reporting financials. New SAP Fiori tiles are available for reporting and are only usable for years when new reporting logic is enabled. The old SAP Fiori tiles can be used before the year in the From Year for New Group Report Logic setting (see figure above).

• From Year for Preparation Ledger: Provides a starting year for the integration of group reporting with financial accounting using the preparation ledger.
• Reclassification: Sel. Object in Trigger: If selected, allows the use of selection objects supporting complex combinations. If not selected, the trigger and percentage settings are specified in individual methods.
• Validation in SAP S/4HANA: Uses group reporting validation functions. If not selected, the system uses the conventional (Enterprise Controlling – Consolidation System [EC-CS]) validations. Once the option is activated, the system enables the following SAP Fiori apps:
  • Define Validation Rules: To define an SAP Fiori-based ruleset for data in consolidations.
  • Define Validation Methods: To group rulesets under a single method that can later be assigned to consolidations units.
  • Assign Validation Methods: To assign validation methods to individual consolidation units.
• Breakdown Category: Sel.Obj. in Max.Sel.: Provides the flexibility of using selection objects for complex criteria based on breakdown categories.
• Currency Translation: Selection Object: Allows the use of a selection object for complex selection. If not selected, the source data region becomes specific to the method.
• Use Item Role Attribute: Used during the configuration of automatic postings of items such as net income or deferred taxes.
• Group Currency is Leading Allowed: Allows for choosing group currency as the leading currency during data collection from the general ledger. If you don’t set this indicator, the local currency is automatically used as the leading currency during data collection.

Editor’s note: This post has been adapted from a section of the book Group Reporting with SAP S/4HANA: The Financial Consolidation Guide by Eric Ryan, Thiagu Bala, Satyendra Raghav, Azharuddin Mohammed, and Sumit Kukreja.