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Lesson 1 of 6

Consolidation in SAP S/4HANA: Group Reporting overview

11 min

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A single company code closes its books in the general ledger. A group of companies needs one more step: consolidation, which adds up the reported figures of every legal entity, translates them into the group currency and removes everything the group did with itself. In SAP S/4HANA that step is SAP S/4HANA Finance for group reporting, usually just called Group Reporting. It runs inside the same SAP S/4HANA system as the general ledger, reads the Universal Journal directly and writes its own consolidation journal.

This course follows Contoso Motor Co. through the move. Contoso's group is small but complete: Contoso Motor Co. (company code 1710, USD), Contoso Parts Distribution LLC (1810, USD) and, after the acquisition, Alternadores del Norte S.A. de C.V. (1910, MXN). In ECC, Contoso consolidated in SAP Business Planning and Consolidation 10.1 for NetWeaver, a separate BW-based system fed by extracts. The course data assumes that Group Reporting replaces it after the conversion, with a parallel run over two quarter-ends before BPC is switched off. Dan, the finance process owner, signs the group close.

Two journals, one system

Accounting documents live in the Universal Journal, table ACDOCA. Group Reporting keeps consolidation postings in a separate table, ACDOCU: reported data copied or uploaded per consolidation unit, plus every adjustment, translation and elimination posted on top. Plan data in ACDOCP can be released into ACDOCU too, which is how group plan and actual comparisons work. Because the consolidation journal is separate, a consolidation entry never changes a company code's books, and a late general ledger correction has to be released again before the group sees it.

Three ways into the consolidation journal: released actuals, released plan data and uploads from units outside SAP S/4HANA.
The Sign-Off Table · thesignofftable.com/academy/sap-fin-308

The master data you must know

ObjectWhat it isContoso example (illustrative course data)
Consolidation versionSeparates data sets, such as actual and plan, and controls which settings applyActual version Y10 from SAP best-practice content; verify the IDs in your system
Consolidation ledgerHolds the group currencyGroup currency USD
Consolidation chart of accounts and FS itemsThe group chart; G/L accounts map to financial statement (FS) itemsRevenue, inventory, intercompany receivables and payables, equity, CTA
Breakdown categories and subitemsExtra detail an FS item must carry, such as partner unit or transaction type for asset and equity movementsIntercompany receivables require a partner unit
Consolidation unitThe legal entity being consolidated; usually one per company code1710, 1810, 1910
Consolidation groupA set of units consolidated together, with a method per unitCMC_GROUP: all three units, full consolidation
Document type and posting levelHow each entry was made and at which stage00 reported, 10 standardizing, 20 eliminations, 30 group-level entries

Group Reporting master data with Contoso values.

The posting level is the column auditors love, because it says where a number came from. Level 00 is reported data, 01 holds adjustments to reported data, 10 holds standardizing entries made centrally, 20 holds two-sided eliminations between units, and 30 holds group-level entries such as consolidation of investments. Levels 02, 12 and 22 appear when units join or leave a group. A group balance sheet that is filtered by posting level shows the audit trail from the local books to the consolidated figure.

Every consolidation journal line carries a version, unit, FS item and posting level; the FS item's breakdown category decides which extra fields are mandatory.
The Sign-Off Table · thesignofftable.com/academy/sap-fin-308

The two monitors

The close runs as tasks in two monitors. The Data Monitor works per consolidation unit: release or upload reported data, check the data with validations, post manual adjustments, translate currency, calculate net income. The Consolidation Monitor works per consolidation group: interunit eliminations, reclassifications, consolidation of investments and group validations. In SAP GUI on-premise, transaction CXCD opens the Data Monitor and CX20 the Consolidation Monitor; most users run the Fiori apps of the same names. Each task has a status per unit and period, and a completed task is blocked so nobody changes data underneath later steps.

  1. Release reported dataData Monitor: copy period balances from ACDOCA (1710, 1810) or upload them (non-integrated units)
  2. Validate reported dataValidation rules flag missing partner units, unbalanced data or unexpected signs
  3. Adjust and translateLocal adjustments on level 01, then currency translation of 1910 MXN into USD
  4. Block the Data MonitorCompleted tasks are blocked so eliminations work on stable data
  5. Consolidation MonitorInterunit eliminations, reclassifications, consolidation of investments
  6. Report and signGroup balance sheet and income statement, reviewed by posting level, signed by Dan
The order of a Group Reporting period close at Contoso.
The Sign-Off Table · thesignofftable.com/academy/sap-fin-308

What would you do?

In the first parallel quarter, Dan sees that the group balance sheet in Group Reporting shows 1810's inventory USD 8,400 lower than the 1810 trial balance in the general ledger. The general ledger was corrected by a late posting on the second working day. What is the most likely cause?

What goes wrong in testing

SymptomUsual causeTest that catches it
A G/L account balance is missing from the groupNew G/L account not mapped to an FS itemCompare level 00 with the trial balance account by account, not only in total
Group report shows old figures after a correctionRelease task ran before the correction and was blockedRecord the release timestamp; rerun after late postings
Plan and actual cannot be comparedPlan released to the wrong consolidation versionReport by version before testing plan/actual variance
Auditor cannot trace an amountManual entries posted with a document type on the wrong levelReport every group journal by document type and posting level

Typical Group Reporting master data and process defects in a test close.

Most of these defects come from treating Group Reporting as a reporting layer instead of a ledger with its own controls. Test it like a ledger: every amount has a source, a document type, a posting level and a user, and the totals tie out at each step.

Key points
  • Group Reporting runs in SAP S/4HANA and writes its own journal, ACDOCU, next to ACDOCA.
  • Consolidation units, groups, FS items, breakdown categories and posting levels are the core master data.
  • The Data Monitor works per unit; the Consolidation Monitor works per group. Completed tasks are blocked.
  • Posting levels 00, 01, 10, 20 and 30 form the audit trail from local books to consolidated figures.

Check your understanding · not graded

Lesson check

  1. 1. Which table holds Group Reporting's consolidation journal?

  2. 2. Which posting level holds two-sided interunit eliminations?

  3. 3. What is the main difference between the Data Monitor and the Consolidation Monitor?

  4. 4. Why are Data Monitor tasks blocked once they are complete?