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How to flexibly calculate Annual Net Income in SAP S/4HANA for group reporting using SAP Group Reporting Data Collection

Outline

SAP S/4HANA for group reporting provides standard Annual Net Income (ANI) calculation capabilities.

When the Calculate Net Income task is run in the Data Monitor for a consolidation unit, the system automatically calculates and posts net income to selected financial statement items in the balance sheet and in the income statement of this consolidation unit. This balances the Balance Sheet and the Income Statement to zero by explicitly posting a net income/profit on both statements.

However, for certain uses cases, the Calculate Net Income task in the Data Monitor doesn’t provide enough flexibility.

  • Net income calculation is not authorized to be run if the reported trail balance in local currency is not equal to 0. The net income is only posted if the net income in the balance sheet equals the net income in the income statement. Otherwise, the Calculate Net Income task in the Data Monitor generates an error message. Even immaterial imbalances cannot be managed with this task.
  • The Calculate Net Income task only considers a limited set of dimensions such as FS Item, Subitem, Profit Center and Segment. You might require the possibility to include additional dimensions, standard ones such as Functional Area, Partner, as well as your own custom fields, too. You may want to decide to handle the Balance Sheet differently than the Income Statement with this regard.

SAP Group Reporting Data Collection (GRDC) allows you to meet just these requirements by replacing the standard task of annual net income calculation by a mapping job.

In this blog, we provide an example of data mapping

  • calculating profit and net income
  • accepting differences in local currency (LC) and group currency (GC)
  • keeping Profit Center and partner detail in profit row
  • clearing Profit Center and partner detail in net income row

In GRDC Data Mapping, create your mapping definition

As shown in the screenshot above, you must select the data on Consolidation Group equal to empty. This is to avoid selecting redundant data with reporting logic for consolidation group derivation

You also must specify that the Currency Translation Indicator equals 0. Otherwise, you may run into cycle dependencies between GRDC mapping and currency translation, especially if you produce group currency net income calculations.

Specify Posting Level “00” to select all reported data for your consolidation unit before consolidation.

In GRDC Data Mapping, upload your mapping file

Create your mapping file in Excel and upload your definition to GRDC Data Mapping.

The mapping file includes 3 rules.

  • The first rule reads Profit & Loss FS items and posts them on Net Income in Profit & Loss, keeping Profit Center and Functional Area.

  • The second rule reads Profit & Loss FS items and posts them on Net Income in the balance sheet, clearing Profit Center and Functional Area.

  • The third rule reads all FS items and posts the balance on Difference (238100), clearing Profit Center and Functional Area.

In GRDC Data Mapping, create and run your mapping job

The Data Mapping job calculates the net income for the income statement on financial statement item 799000 Net Income, and for the balance sheet on financial statement item 317000 Net Income.

For the income statement account, the Controlling Area and Profit Center details are kept.

The Data Mapping job calculates the net income based on the Profit and Loss accounts with codes “4”, “5”, “6”, and “7”.

If there is a difference between the net income of the income statement and the net income of the balance sheet, i.e. the received trial balances do not balance to zero, the difference is posted to financial statement item 283100 Other Liabilities, Non-Current. If the book balances, this value is 0.

In S/4HANA for group reporting, visualize the results

The following source data exists before running your Data Mapping job.

Your Data Mapping job then generates the following data.

The annual net income is calculated, and the difference is posted on a specific FS item 283100.

Wrap up

We hope this blog will help you leverage the data mapping capabilities of SAP Group Reporting Data Collection if you need to calculate Annual Net Income in SAP S/4HANA for group reporting. Using Data Mapping, you can calculate Annual Net income even for immaterial imbalances, including additional dimensions, standard ones such as  Functional Area, Partner, Profit Center as well as your own custom fields.

Feel free to react on our blog by posting comments on our SAP Group Reporting Data Collection tag. You can also get more information on our next-generation consolidation software here:

 

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