SAP Group Reporting
SAP S/4HANA for Group Reporting is the new integrated consolidation solution – a global platform for the integration of the individual financial statements of the group companies, consolidation preparation, consolidation steps and reporting.
S/4HANA for Group Reporting (S/4GR) acts as SAP's new strategic consolidation solution. With this product, traditional consolidation solutions will be replaced in the next few years as part of the transition to SAP S/4HANA.
Group reporting is fully integrated with SAP S/4HANA; a separate consolidation solution – as with SAP SEM-BCS – is no longer necessary.
The solution is available in cloud and on-premise versions. In addition, the consolidation system can be used in hybrid landscapes.
After BDF has always provided consulting and implemented successful Group Consolidation solutions in SAP R/3, a promising solution in SAP S/4HANA is now available with S/4HANA Finance for Group Reporting (S/4GR).
Historically, we have dealt with the following solutions in SAP R/3:
- SEM BCS (Business Consolidation): A full-featured, BW-based application; Almost all consolidation steps, from adjustments to the individual financial statements to elimination of interim profit and capital consolidation, are supported. In this solution, the data of the individual financial statements is first loaded into BW in so-called info providers. The BCS application is then based on these information providers.
For customers who have successfully relied on SEM BCS so far and want to maintain this on S/4, this solution will continue to be available in the BCS/4HANA product. BCS has been in maintenance mode since 2011; This is now in place until 2040!
- EC-CS (Enterprise Controlling, Consolidation): This solution has been in use on an R/3 basis for 25 years now. EC-CS is directly integrated with SAP FI and the various FI ledgers. This is the main technological advantage of EC-CS over BCS. Thus, EC-CS also forms the technological basis for the development of S/4HANA Finance for Group Reporting (S/4GR).
In the case of a transition to S/4, there are therefore also migration paths from EC-CS to S/4GR and the possibility of parallel operation as part of the transition to S/4GR.
Enterprise Controlling Consolidation (EC-CS)
- EC-CS is SAP's consolidation solution in SAP ERP (until the end of 2027)
- EC-CS is currently (until the end of 2025) available in SAP S/4HANA
- EC-CS in SAP S/4HANA is part of the "Compatibility Scope"
EC-CS's right of use expires at the end of 2025
S/4HANA for Group Reporting (S/4GR)
- S/4GR is SAP's strategic consolidation solution in SAP S/4HANA
- Both solutions, EC-CS and S/4GR, offer tight integration between financial accounting and group financial statements
- Considering the same architectural paradigm of integration, EC-CS acts as the "core" of S/4GR
Various shared software objects between EC-CS and S/4GR
- Thanks to these similarities, the transition ("migration") from EC-CS to S/4GR is technically supported
Technical requirements: EC-CS runs on SAP S/4HANA
S/4GR provides a new and integrated consolidation solution for the preparation of consolidated financial statements and group reporting, which combines the functions and benefits of the previous solutions. A significant advantage is the use of the Universal Journal under S/4HANA as a "single point of truth" for data at the individual and group level.
Technically, consolidation is fully integrated under SAP S/4HANA: Consolidation (ACDOCU table) can access the data of the individual financial statements (ACDOCA table) immediately.
Basic functions of SAP S/4GR in the current edition:
- Direct data access to the individual financial statement data in Financial Accounting under S/4HANA
- Easy integration of non-SAP data
- Currency conversion
- Data Validation
- Intercompany reconciliation with drill-down capability
- Group Allocation
- Capital Consolidation
- Manual Postings of Group Documents
- Reporting integration with SAP Analytics Cloud (SAC)
The full use of the functions and processes of S/4GR is possible with the help of Fiori Apps; however, some functions can still be executed via SAP GUI.
A possible target architecture for SAP Group Reporting also includes other applications that are available under S/4 and can be connected. Among other things:
- ICMR (Intercompany Matching and Reconciliation);
ICMR provides a real-time solution that can be used to reconcile intra-group business transactions in a simpler and automated manner.
- SAP S/4HANA Advanced Financial Closing (AFC);
in particular, the ICMR component.
- Using the Group Reporting Data Collection App, data can be entered manually. In addition, these can be enriched or commented on by the companies.
- SAP Analytics Cloud enables real-time analysis of data, as well as dashboarding, planning, and forecasting.
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Sebastian Feldges / Thomas Dohmen