In this video, learn how SAP S/4HANA can help you perform intercompany elimination analysis.
Transcript:
In this video, we’re going to focus on several use cases to perform detailed analysis associated with the intercompany elimination or interunit elimination processes in SAP S/4HANA. We’ll be focusing on organizational units such as consolidation units, profit centers, and segments to support several reporting requirements where consolidated data needs to be reported with visibility of elimination entries correctly posted in the system to validate and sign off on consolidated data reporting for the specified period.
Let’s start with the first use case of interunit elimination between consolidation units and how it can support the overall consolidation reporting requirements of a corporate group.
In this use case, we’ll analyze the group data by using a combination of group view and hierarchy view with a consolidation group and a hierarchy, respectively. This way, you can support additional reporting requirements with a hierarchical consolidation view from a management point of view using hierarchies based on organization elements such as consolidation units, profit centers, and segments.
With the use of a consolidation group, you can generate your group report for the consolidated data based on a consolidation group. This means you can also include the postings that are posted only at the group-dependent posting levels such as 02, 12, 22, and 30.
With the use of a hierarchy such as a consolidation unit hierarchy, profit center hierarchy, or segment hierarchy, you can derive elimination members at report runtime.
With the combination of both a consolidation group and a hierarchy, you can generate a combined view of consolidation view along the respective hierarchy. For illustration purposes, we’ll use a consolidation group and a regional hierarchy defined for consolidation units in the North America region. In our example, all the consolidation units under the Consolidation Unit column and Partner Unit column are part of the consolidation group, and the hierarchy for region NA includes only three consolidation units: USC1, S914, and S915. The Country/Region column highlights the country to which the partner unit belongs, and amounts in group currency between consolidation units in North America and the partner units across the world are displayed for fiscal year period 12/2020.
With the use of a consolidation unit hierarchy, you’ll notice that additional derived dimension members with a suffix _ELIM are also available under Navigation Panel, Available Fields. These additional members provide elimination values at posting level 20 for two-sided elimination entries or 22 for two-sided elimination entries associated with consolidation group changes to support additional reporting requirements with this view. With a profit center hierarchy and segment hierarchy, you’ll be able to see Profit Center for Elimination and Segment for Elimination as additional dimensions in your list of available fields.
As highlighted under the Consolidation Unit for Elimination column, you’ll see two entries for the consolidation unit S914: one represents the total amounts of 200,000.00 EUR for Y1/S914, and the other represents the elimination entry of negative 66,666.66 euros for BRGROUP_ELIM. Similarly, you can also analyze other elimination entries associated with their respective consolidation units.
Additionally, to support the Consolidated Unit Eliminated view, you can include only two dimensions—Consolidation Unit and Consolidation Unit for Elimination—and save it as a bookmark for easy access. For illustrated purposes, we’ve saved this view under a bookmark named Consolidated Unit Eliminated View.
In this case, we’ll be using a segment hierarchy created using the Manage Global Hierarchies app. Once we have the segment hierarchy created and the relevant elimination entries between segment and partner segment are posted, you should be able to analyze and report that data using the Group Data Analysis app.
While working with this app, you must enter the Segment Hierarchy that was created using the Manage Global Hierarchies app as the input selection criteria for this use case. You can see that all the other input fields aren’t changed and are used as is from the previous use case.
To analyze group data in Group View and Hierarchy View, you need to make sure fields such as Consolidation Group and Segment Hierarchy are populated. This will make sure that the Segment Eliminated reporting dimension is available for you to select in your report layout along with Segment dimension and Fiscal Year Period. As illustrated in the app, segment eliminated reporting dimension VELOTICS_ELIM is highlighted for a transaction involving a segment and a partner segment.
In our example, segment elimination entries aren’t yet posted, thus the segment eliminated reporting dimension is shown with no value. A bookmark named Segment Eliminated View is saved that can be used to quickly populate all the input criteria, filters, and reporting dimensions. This helps you avoid having to create the reporting layout from scratch.