Preface

19

Who Should Read This Book

21

How to Use This Book

21

Structure of the Book

22

Dedication

24

Acknowledgments

24

1 Financial Reporting

27

1.1 Today’s Financial Reporting Requirements

27

1.1.1 Financial Reporting

28

1.1.2 Management Reporting

30

1.1.3 Cohesive Narrative for Reporting

30

1.2 Reporting with SAP S/4HANA

32

1.2.1 Financial Data Architecture before SAP S/4HANA

32

1.2.2 Financial Data Architecture with SAP S/4HANA

33

1.2.3 Reporting Strategy

35

1.2.4 Finance Code Block

36

1.3 Reporting and Analytics Architecture

45

1.3.1 SAP Fiori Launchpad

46

1.3.2 SAP S/4HANA Embedded Analytics

49

1.3.3 SAP BusinessObjects BI Suite

57

1.3.4 SAP Analytics Cloud

60

1.3.5 Data Warehousing with SAP BW/4HANA

61

1.3.6 SAP Data Warehouse Cloud

62

1.3.7 Align Reporting to Roles

62

1.4 Summary

63

2 General Ledger Reporting

65

2.1 General Ledger Reporting Requirements

66

2.2 Designing for General Ledger Reporting

68

2.2.1 Master Data Governance

69

2.2.2 Harmonizing and Unifying the Chart of Accounts

71

2.2.3 Standardizing the Financial Reporting Structure

83

2.2.4 Complying with International Accounting Standards

87

2.2.5 Improving the Intercompany Process

94

2.2.6 Automating Accrual Transactions

101

2.3 Financial Statement Basics

103

2.3.1 Income Statement

103

2.3.2 Balance Sheet

106

2.3.3 Cash Flow Statements

107

2.3.4 Notes to the Financial Statements

108

2.3.5 Financial Ratios

109

2.4 Key Reports for General Ledger Accounting

113

2.4.1 Balance Sheet and Income Statement

113

2.4.2 Cash Flow Statement

116

2.4.3 General Ledger Overview

118

2.4.4 General Ledger Account Balances

119

2.4.5 Manage Journal Entries

121

2.4.6 Journal Entry Analyzer

122

2.4.7 Audit Journal

123

2.5 Key SAP GUI Reports for General Ledger Accounting

124

2.5.1 Classic Financial Statement Report

125

2.5.2 Cash Flow Statements

127

2.6 Summary

127

3 Segment Reporting

129

3.1 Segment Reporting Requirements

130

3.2 Designing for Segment Reporting

130

3.2.1 Determining the Right Segment Reporting Solution

131

3.2.2 Splitting and Having Balanced Books on Segment Reporting Objects

138

3.2.3 Capturing All Transactions with Segment Information

142

3.2.4 Universal Allocations

144

3.2.5 Rationalizing the Number of Profit Centers

146

3.3 Key Reports for Segment Reporting

147

3.3.1 Trial Balance

148

3.3.2 Segmented Financial Statements

150

3.4 Key SAP GUI Reports for Segment Reporting

154

3.4.1 Profit Center and Segment Reporting in the General Ledger

154

3.4.2 Account Balances and Transaction Figures

156

3.4.3 G/L Account Line Item Browser

159

3.4.4 Old Line-Item and Balance Display Reports

162

3.5 Summary

164

4 Tax Reporting

165

4.1 Tax Reporting Requirements

166

4.1.1 Indirect Tax Reporting

166

4.1.2 Direct Tax Reporting

167

4.2 Designing Tax Reporting

170

4.2.1 Developing a Common Approach for Tax Calculation and Tax Determination

172

4.2.2 Integration of All Tax Requirements into the Design

175

4.2.3 Automation of Tax Determination and Calculation

179

4.2.4 Built-in System Controls

182

4.2.5 Capturing Tax-Exempt Transactions

184

4.2.6 Tax Data Granularity

185

4.2.7 Transfer Pricing

188

4.2.8 Meeting of Data Retention and Archiving Requirements for Tax Reporting

189

4.3 SAP Solutions for Global Tax Management and Reporting

192

4.3.1 SAP Tax Compliance

193

4.3.2 SAP S/4HANA for Advanced Compliance Reporting

194

4.3.3 SAP Localization Hub, Tax Service

201

4.3.4 SAP Document Compliance

201

4.4 Key SAP GUI Reports for Tax Reporting

202

4.4.1 General Sales and Purchase Tax Reporting

202

4.4.2 Deferred Tax Reporting

209

4.4.3 EC Sales Tax List

210

4.4.4 Withholding Tax Reporting

213

4.4.5 Sales and Use Tax Reporting

218

4.5 Summary

220

5 Accounts Payable Reporting

223

5.1 Accounts Payable Reporting Requirements

224

5.2 Designing Accounts Payable Reporting

225

5.2.1 Business Partners Management

226

5.2.2 Invoice Processing

231

5.2.3 Good Receipt/Invoice Receipt Reconciliation

232

5.2.4 Payment Processing

233

5.3 Accounts Payable Reports

234

5.3.1 Accounts Payable Overview

235

5.3.2 Days Payable Outstanding

237

5.3.3 Aging Analysis

239

5.3.4 Display Supplier Balances

240

5.3.5 Manage Supplier Line Items

241

5.3.6 Display Item Change Log

242

5.3.7 Invoice Processing Analysis

242

5.3.8 Supplier Payment Analysis

244

5.3.9 Future Payables

245

5.4 Key SAP GUI Reports for Accounts Payable

246

5.4.1 Vendor Master Data Reports

247

5.4.2 Vendor Line Item Reports

252

5.4.3 Vendor Account Balances Reports

261

5.4.4 Vendor Payment Transaction Reports

263

5.4.5 Country-Specific AP Reports

264

5.5 Summary

265

6 Accounts Receivable Reporting

267

6.1 Accounts Receivable Reporting Requirements

268

6.2 Designing Accounts Receivable Reporting

269

6.2.1 Business Partner (Customer) in SAP S/4HANA

269

6.2.2 Automate Collection Management

274

6.2.3 Improve Dispute Management

275

6.2.4 Credit Management

275

6.3 Accounts Receivable Analytics Apps

276

6.3.1 Accounts Receivable Overview

277

6.3.2 Days Sales Outstanding

278

6.3.3 Total Receivables

280

6.3.4 Overdue Receivables by Risk Class

281

6.3.5 Display Customer Balances

283

6.3.6 Manage Customer Line Items

284

6.3.7 Days Beyond Terms

284

6.3.8 Future Receivables

285

6.4 Key SAP GUI Reports for Accounts Receivable

286

6.4.1 Customer Master Data Reports

287

6.4.2 Customer Line Item Reports

293

6.4.3 Customer Account Balances Reports

300

6.4.4 Country-Specific Accounts Receivable Reports

302

6.5 Summary

303

7 Asset Lifecycle Reporting

305

7.1 Asset Reporting Requirements

306

7.2 Designing Asset Reporting

306

7.3 Asset Reporting Architecture

308

7.3.1 Asset Accounting Foundation

308

7.3.2 Parallel Accounting in Asset Accounting

311

7.3.3 Integrating Capital and Investment Management

312

7.3.4 Design Considerations for Asset Master Data Management

314

7.3.5 Asset Transfer Process

317

7.3.6 Contract and Lease Management

318

7.4 Asset Reporting in SAP S/4HANA

319

7.4.1 Asset Accounting Overview

320

7.4.2 Asset Master Worklist

322

7.4.3 Manage Fixed Assets

324

7.4.4 Asset Values

326

7.4.5 Asset Balances

329

7.4.6 Asset History Sheet

332

7.4.7 Asset Transactions

333

7.4.8 Depreciation Lists

334

7.4.9 Contract and Lease Management Reports

335

7.5 Key SAP GUI Reports for Asset Accounting

337

7.5.1 Investment Management Information System

337

7.5.2 Asset Accounting Information System

339

7.5.3 Lease Accounting Information System

348

7.6 Summary

350

8 Cash Management Reporting

351

8.1 Cash Management Reporting Requirements

352

8.2 Designing Cash Management Reporting

353

8.2.1 New Data Architecture for Cash Management

356

8.2.2 Streamlining and Standardizing Bank General Ledger Accounts

358

8.2.3 Integrating Cash Data with Cash Management in SAP S/4HANA

360

8.2.4 Centralizing Cash Management

367

8.2.5 Centralizing Cash with SAP In-House Cash

368

8.2.6 Improving Payments with Advanced Payment Management

371

8.3 Bank Relationship Management Reporting

375

8.3.1 Manage Banks Basics

376

8.3.2 Manage Banks

377

8.3.3 Manage Bank Accounts

379

8.3.4 Manage Bank Account Hierarchies

381

8.3.5 Maintain Payment Approver

382

8.3.6 Bank Relationship Overview

383

8.4 Cash Operation Reporting

384

8.4.1 Automating Bank Reconciliation

385

8.4.2 Bank Statement Monitor

388

8.4.3 Cash Position

390

8.4.4 Cash Flow Analyzer

391

8.4.5 Check Cash Flow Item

395

8.4.6 Make Bank Transfers and Track Bank Transfers

397

8.4.7 Payment Statistics

398

8.5 Liquidity Management Reports

399

8.5.1 Actual Cash Flow

400

8.5.2 Cash Flow Detailed Analysis

401

8.5.3 Liquidity Forecast

401

8.5.4 Liquidity Planning

402

8.5.5 Treasury Executive Dashboard

406

8.6 Summary

408

9 Treasury and Risk Management

411

9.1 Treasury and Risk Management Reporting Requirements

412

9.2 Designing Reports for Treasury and Risk Management

414

9.3 Transaction Manager Reporting

415

9.3.1 Master Data

416

9.3.2 Transaction and Position Management Process

418

9.3.3 Position Management

423

9.4 Hedge Management and Accounting Reporting

424

9.4.1 Hedge Management Requirements

425

9.4.2 Exposure Management

427

9.4.3 Hedge Management

428

9.4.4 Hedge Accounting

432

9.4.5 Mark-to-Market Valuation

434

9.5 Risk Management Reporting

438

9.5.1 Analyze NPV

440

9.5.2 Sensitivity Key Figures

442

9.5.3 Calculate Market Risk Key Figures

442

9.6 Treasury Reporting

443

9.6.1 Treasury Key Performance Indicators and Overview Reports

443

9.6.2 Treasury Position Value and Analysis

445

9.6.3 Display Treasury Position Flows

446

9.6.4 Review Balance Sheet FX Risk

447

9.7 Key SAP GUI Reports for Treasury and Risk Management

447

9.7.1 Transaction Manager Reporting

447

9.7.2 Market Risk Analysis

453

9.7.3 Treasury Executive Dashboards

454

9.8 Summary

457

10 Overhead Cost Controlling Reporting

459

10.1 Management Accounting Reporting Requirements

460

10.2 Overhead Cost Controlling Reporting Architecture

462

10.3 Designing for Management Accounting Reporting

464

10.3.1 Management Accounting Organizational Structure

465

10.3.2 Unified Master Data

468

10.3.3 Manage Flexible Hierarchies

472

10.3.4 Integrated Planning

474

10.4 Overhead Cost Management Reporting

478

10.4.1 Cost Center Analytical Reports

479

10.4.2 Functional Area Analytical Reports

485

10.4.3 Internal Order Analytical Reports

489

10.4.4 Projects Analytical Reports

493

10.5 Key SAP GUI Reports for Overhead Cost Controlling

498

10.5.1 Cost Center Accounting Reports

498

10.5.2 Internal Order Reports

502

10.5.3 Project System Reports

504

10.6 Summary

509

11 Product Cost Reporting

511

11.1 Product Costing Reporting Requirements

512

11.2 Designing for Product Costing Reporting

513

11.2.1 Product Cost Planning

514

11.2.2 Production Execution

517

11.2.3 Period-End Closing

518

11.2.4 Actual Costing

518

11.3 Product Costing Reporting

519

11.3.1 Manage Costing Runs

519

11.3.2 Product Cost Planning Apps

526

11.3.3 Production Order Costing Apps

528

11.3.4 Actual Costing Cockpit

541

11.4 Key SAP GUI Reports for Product Cost Reporting

546

11.4.1 Product Cost Planning

547

11.4.2 Cost Object Controlling

549

11.4.3 Actual Costing

551

11.5 Summary

551

12 Margin Analysis

553

12.1 Margin Analysis Reporting Requirements

554

12.2 Designing for Margin Analysis

555

12.3 Margin Analysis Reporting Architecture

560

12.3.1 Master Data

560

12.3.2 Sales and Profitability Planning

563

12.3.3 Margin Analysis Data Flow

564

12.4 Sales Accounting and Revenue Recognition

569

12.4.1 Process Overview

569

12.4.2 Revenue Recognition Overview

575

12.4.3 Disaggregation of Revenue

576

12.4.4 Sales Accounting Overview

577

12.5 Margin Analysis Reports

579

12.5.1 Market Segment Reports

579

12.5.2 Display Line Items – Margin Analysis

582

12.5.3 Product Profitability

583

12.5.4 Sales Volume – Profit Margin

585

12.5.5 Revenue Variance

586

12.5.6 Predictive Accounting Apps

586

12.5.7 Realignment Results – Profitability Analysis

588

12.6 Key SAP GUI Reports

590

12.6.1 Classic Line-item Reports

590

12.6.2 Pivot Browser for Profitability Analysis Line Items

592

12.7 Summary

595

13 Group Reporting

597

13.1 Group Reporting Requirements

597

13.2 SAP’s Group Reporting Evolution

598

13.3 Group Reporting Architecture

601

13.4 Designing for Group Reporting

602

13.4.1 Group Reporting Master Data

603

13.4.2 Shared Code Block

611

13.4.3 Preparing Data

611

13.4.4 Executing Consolidation Tasks

614

13.4.5 Group Reporting Process Automation

617

13.5 Consolidation Reporting and Analytics

618

13.5.1 The New Reporting Logic

620

13.5.2 Data Analysis Apps

620

13.5.3 Income Statements

622

13.5.4 Statement of Changes in Equity

623

13.5.5 Consolidated Balance Sheet

623

13.5.6 Cash Flow Statement

626

13.6 Summary

627

14 Central Finance

629

14.1 What Is Central Finance?

630

14.2 When Should You Consider Implementing Central Finance?

632

14.3 Central Finance Road Map Considerations

633

14.3.1 Foundation Phase

633

14.3.2 Global Management Reporting and Profitability Analysis

634

14.3.3 Accounts Receivable and Accounts Payable Reporting and Analysis

634

14.3.4 Central Processing

635

14.4 Key Design Considerations for Central Finance

635

14.4.1 Data Considerations for Central Finance

636

14.4.2 Central Processing

643

14.4.3 Extended Central Processing for Collections, Disputes, and Credit Management

648

14.4.4 Treasury in Central Finance

650

14.4.5 Period-End Close in Central Finance

654

14.4.6 Group Reporting with Central Finance

654

14.5 Central Finance Technical Reports

657

14.6 Summary

660

15 Reporting with SAP Analytics Cloud

661

15.1 What Is SAP Analytics Cloud?

662

15.2 SAP Digital Boardroom and Standard Business Intelligence Content

665

15.2.1 Finance: Live Data Based on Semantic Tags Dashboard

666

15.2.2 Financial Performance

672

15.2.3 Third Party Content Example

675

15.2.4 Sector-Specific Content and Custom Analytic Reports

676

15.3 SAP Analytics Cloud and the Enterprise Financial Reporting Strategy

677

15.4 Extended Planning and Analysis with SAP Analytics Cloud

680

15.4.1 Challenges with Traditional Financial Planning and Analysis

681

15.4.2 Organizational Requirements to Implement Extended Planning and Analysis

683

15.5 SAP Analytics Cloud in Action

687

15.5.1 Identify

688

15.5.2 Determine

688

15.5.3 Model

689

15.6 Summary

691