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In October last year, the 1610 S/4HANA release included as one of its main highlights the introduction of Real-time Consolidation, or RTC. Although the solution is in early adoption by customers, I have had the opportunity to work first hand deploying RTC in a central finance environment and will share what I’ve seen so far.

In a nutshell, RTC means that master data and transactional data can be accessed literally real-time from S/4HANA, thanks to a deeper integration between S/4HANA, BW and BPC. In an S/4HANA environment there is no need to have different clients anymore and BW/BPC is delivered as an add-on within S/4HANA, allowing this natural integration. The master data used in RTC is the same master data that is used in S/4HANA, with a few exceptions where consolidation specific fields are included in the RTC environment, such as Group and Audit Trail.

RTC has introduced a new table, ACDOCC – Consolidation Journal, which is a younger sister (or extension) of ACDOCA. It has a similar set of fields and common append structures. The extension of ACDOCC from ACDOCA guarantees, for example, that new fields such as COPA extension fields in ACDOCA are automatically replicated to ACDOCC. The consolidation journal allows for a significant level of detail with up to 100 characteristics able to be included (basically any characteristic available in the universal journal) and at the same time eliminates any redundancy that might exist between ACDOCA and ACDOCC. The field mapping from the universal journal (ACDOCA) to consolidation (ACDOCC) is configurable, and the depth of detail is entirely up to the requirements of each business.

Although master data is the same across S/4HANA and RTC, RTC leverages consolidation mapping for Account and Entity dimensions. In RTC the use of Group Chart of Accounts is mandatory, which facilitates the aggregation of Operational Chart of Accounts and harmonises subsidiaries at a Group level. The mapping from Operational Chart of Accounts to Group Chart of Accounts is done through the GL Account master. When configuring RTC it is possible to assign any organisational field or fields as the entity and associated intercompany partner. For example, the most common mapping for legal consolidation is Company Code and Company Code of Partner as the entity and intercompany fields, but there is also flexibility to define a combination of Controlling Area + Profit Centre, Cost Centre, Segments, for say, management consolidation. As long as the field exists in both Consolidation and the Universal Journal and has an associated trading partner field, it can be defined and leveraged to consolidate financial results. Furthermore, it is possible to create multiple RTC models within the same environment which allows consolidation under different views. For example, legal using company code or management using profit centre or business area or segment etc.

If any consolidating entity does not transact within the RTC SAP environment, the flexible upload functionality can be used to upload data directly to ACDOCC.

Some of the advantages RTC delivers over traditional consolidation processes include:

  • Common master data across RTC and S/4HANA, eliminating dual maintenance, conversion mappings and inconsistencies when loading data
  • Universal journal data is accessed real-time for consolidation, eliminating the requirement to replicate and load data therefore optimising the consolidation process
  • Ability to leverage S/4HANA to perform currency translation and intercompany matching across the universal journal – any possible adjustment can be done in the source before starting the consolidation process
  • Up to 100 dimension/attributes available for reporting consolidating results and analysing profitably and cost control across the business
  • Ability to run a preliminary version on actuals, making it easy, for example, to run consolidation before month end or even to simulate an organisational change or a business sale

When comparing specifically with traditional BPC some features / functions will remain the same:

  • Business rules maintenance remains the same as BPC Standard modelling, with rules being maintained in the BPC web administration view
  • The business rules available at RTC are:
    • Account Transformation
    • Intercompany Booking
    • Intercompany Eliminations and Adjustments
    • Balance Carry-Forward
  • The Consolidation Monitor accessed through BPC web
  • Ownership Manager accessed through BPC web

Some features / functions change in RTC going forward:

  • There are two options available for Currency Translation:
    • BPC Currency Translation – this requires an exchange rate cube in BW
    • S4HANA Currency Translation – this leverages the rates from the exchange rate table in S/4HANA
  • Even though Business rules are the same, in RTC they are not executed through a Data Manager Package, instead Task Sequences is triggered via the Consolidation Monitor
  • Reporting is performed via Analysis for Office
  • Introduction of the lock or unlock Data Submission functionality for Consolidation
  • Delta changes after data is submitted for consolidation can be reported in S/4HANA
  • Data can be locked and unlocked for data submission to consolidation run
  • Introduction of a document concept
  • Different from account model in traditional BPC consolidation in RTC is a multiple key figure model – Transaction, Local, Global and Group Currency values are saved in the same line in the Consolidation Journal. It is important to notice though, that only one key figured (Group Amount) is allowed in BPC for definitions of business rules and Journals)
  • Tighter integration of plan data (submission / transfer of plan data across to ACDOCC)
  • US elimination business rule
  • Validation at source
  • In RTC every posting creates a document and is assigned document number
  • Each consolidation task will have a different number ranges e.g. currency translation from 10000 to 29999, consolidation results from 30000 to 49999, etc
  • This is big shift from an account base model, used by classic BPC for example, where the update of a data region (Combination of the characteristics) means delta update – always within a single line in the data base
  • Although the data is always saved in documents in the consolidation journal and users can display them, reporting will be quite often at balance, an aggregated view by main financial characteristics: GL account, transaction type, consolidation entity, trading partner, period, currency and audit trail

The base release of RTC 1610 FPS00 is functional but there are inherent gaps that SAP addressed in FPS01 and it is the recommended version. In future releases SAP have included in their product roadmap:

  • This means that some validations performed at Consolidation level will be introduced at the Universal Journal level in S/4HANA, improving data quality and reducing re-work in the consolidation process caused by incorrect data entry at source
  • Real-time intercompany reconciliation
  • Enhanced visualisation with new capabilities in Fiori and BI tools
  • Soft-close support – ability to identify possible issues pre-month-end

As technology evolves, the way we do business will evolve also. RTC makes it possible to support business activities in real-time, whilst making an unprecedented depth of information available to users.

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20 Comments

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  1. rakesh kumar

    Hey Lucas,

    I was trying to setup a simple scenario referring to SAP standard content for Real Time Consolidation.

    I am actually stuck at creation of Composite provider by using the BW Modeling tool in HANA .This composite provider will lias with BW virtual provider and HANA views .

    First of all I am not able to see the package sap.erp.fin.rtc  in HANA side, though I was able to create a virtual provider referring to that package sap.erp.fin.rtc in BW side and I can find the package sap.erp.fin.rtc in BW side ).

    HOw did you copy the package sap.erp.fin.rtc to your custom package?? Is there some authorization missing for that?? Any guideline here would be good help.

    Thanks,

    Rakesh

    (0) 
    1. Lucas Gabriel Post author

       

      Your user in HANA is different from your user in S/4. Suggest asking the security/basis team taking a look.

      As per the package, you can create a HANA package and then just copy the relevant objects that you’re going to use such the Foundation view, master data views etc.

      (0) 
        1. rakesh kumar

          Account Hierarchy is created in S4 transaction FSE2 or you can navigate from RTCGLA. Now with RTC all master data modeling is S4 driven.

           

          Thanks

          Rakesh

          (0) 
  2. Rocio De Salvador

    Hello Lucas,

     

    Are there any guideline, step by step to setup a consolidation embedded model for financial?… in the standard BPC there are an environment Shell but embedded I can’t see any thing.

     

    Regards,

    Felipe

     

    (0) 
  3. Emael Narvaez

    what is the process of default logic setup to calculate the retained earning and automate calculate of net income while importing data into BPC 10.1 Embedded or RTC?

     

    (0) 
    1. Lucas Gabriel Post author

      No default logic in RTC. Actually no script logic in RTC.

      Anything you need that is not covered using the business rules, you’ll need to use a planning function (PAK).

       

      (0) 
  4. Kevin Hanlon

    Hi Lucas,

    Thanks for sharing this information.

    Do you know when RTC plans to introduce the US Elimination Business rule?

    This is a key concern of implementing since this is what is currently used.

    Regards,

    Kevin

    (0) 
    1. Lucas Gabriel Post author

      Hi Kevin,

      I’ve heard that US elim is SAP’s roadmap.

      At the moment we’re implementing Management consolidation with Elimination and Adjustments. The difference is that in mgt all consolidation entities have ownership @ 100%.

      Cheers,

      Lucas

      (0) 
      1. Kevin Hanlon

        Thanks for your reply Lucas. We also have everything at 100% ownership. Are you posting the consolidation entries to elimination entities? This is our current set up and am wondering if it’s possible to achieve that with the current release of embedded BPC on 1610. Or if we have to use the Scope dimension instead of Elimination Entities. From what I hear US eliminations for BPC 10.1 on S/4HANA will become available in the 1709 release.

         

        (0) 
        1. Lucas Gabriel Post author

          HI Kevin,

          We do not use elimination entities, but you can definitely achieve that using normal Elimination & adjust. business rule, by using the Entity property in the group dimension or Force Destination members in the business rule.

          (0) 
  5. John Leggio

    Thanks Lucas for this great blog.

    Two notes to help troubleshoot your RTC implementation are below:

    2492528 – A trouble-shooting tool for BPC task sequence at backend
    https://launchpad.support.sap.com/#/notes/2492528

    2393020 – Improvement of log for embedded consolidation
    https://launchpad.support.sap.com/#/notes/2393020

    And the RTC help can be found here:
    https://uacp.hana.ondemand.com/http.svc/rc/PRODUCTION/e0f3ad5789cfca02e10000000a4450e5/1610%20002/en-US/frameset.htm

    And this general note is great as well:
    2370324 – Real-Time Consolidation Related Information
    https://launchpad.support.sap.com/#/notes/2370324

    Thanks,

    (3) 
  6. Venkat Singanamala

    Hi Lucas

    Thanks for your information on RTC and other steps. It is really very helpful and good insight of S4HANA -RTC Combo.

    Looks like SAP is bringing back EC-CS Consolidation/FI-LC Consolidation along with Elimination entity concept as I have seen or implemented or migrated FI-LC to EC-CS  where the customer was using elimination entities.

    Thanks

    Venkat Singanamala

     

     

    (0) 
  7. Raja Anantha Narayanan

    Hello Lucas,

    Thanks for the blog!!!

    • Delta changes after data is submitted for consolidation can be reported in S/4HANA
    • Data can be locked and unlocked for data submission to consolidation run

     

    for the above points – If we re-run the consolidation process, for the delta changes alone currency translation, account based calculation and Consolidation happens ??

    Reality is team performs many iterations before submitting to Auditors.

    regards,

    Raja

     

    (0) 
  8. Mehmet Yatkin

    Hi Lucas,

    Thanks for the blog.

    One question on Group CoA; you mention that it is mandatory, yet in the below help document, it sounds more like optional – If your group chart of account is different with operational chart of account. Do you have experience on that? Or an official reference?

    Help document link.

    Path: Configuration of Real-Time Consolidation > Preparing Financial Accounting for Consolidation

    Thanks,

    Mehmet.

    (0) 

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