Free SAP C_S4FCC_2021 Practice Exam with Questions & Answers | Set: 2

According to the SAP S/4HANA Finance for Group Reporting Associates documents1, a consolidation ledger must be configured in order to release plan data into SAP S/4HANA Finance for group reporting. A consolidation ledger is a data container that stores the plan data for a specific consolidation scenario and fiscal year variant. A consolidation ledger can have multiple versions to store different versions of plan data.

In order to use intercompany eliminations that are integrated with SAP Intercompany Matching and Reconciliation, you must create an elimination method and activate an intercompany hierarchy. The elimination method defines the rules for eliminating intercompany transactions, while the intercompany hierarchy organizes the consolidation units involved in intercompany transactions.

Breakdown categories control subitem field values when posting to SAP S/4HANA Finance for group reporting. Subitems are used to provide additional granularity and detail in financial reporting. (Reference: https://help.sap.com/viewer/0fa849c634132a6c3d6f3508c54a3/1809.002/en-US/0b3dbd7c0e264b62a7e2d2a1e7d31fbc.html)

According to the Breakdown Categories document1, breakdown categories classify subassignments that are required for Financial Statement (FS) items to perform consolidation tasks. The following breakdown category fields are supported1:

• Partner Unit
• Subitem Category
• Subitem
• Transaction Currency
• Unit of Measure

For each FS item, the breakdown category determines which subassignments must be entered1. For example, if an FS item is assigned with breakdown category 1A10, the data records of this FS item must have a subitem category value of 1 (Transaction Type) and a subitem value from the selection S-BC-TT-011.

Posting levels are used to identify the origin of values in the consolidation process. They help to differentiate between values coming from different sources, such as data entry, data import, or manual postings.

SAP Group Reporting Data Collection updates the ACDOCC (Consolidation Staging) table. This table is used to store data that is collected from various source systems for consolidation purposes. Reference: https://help.sap.com/viewer/df185fd53bb645b1bd99284ee4e4a750/2020.002/en-US/4c1d8f4f16564f249c0e0d4a8e45d9f9.html

A reconciliation case in SAP Intercompany Matching and Reconciliation is used to select matching methods. Matching methods define the criteria for matching intercompany transactions, ensuring that the transactions are accurately reconciled and eliminating discrepancies between the financial statements of different entities within a group.

There are 3 elimination entities generated. The elimination entities are created at the lowest common parent level in the hierarchy where intercompany transactions occur. In this case, E1 is the parent of C1 and C2, E2 is the parent of C3 and C4, and E3 is the parent of C5. Thus, three elimination entities are generated.

According to the SAP S/4HANA Finance for Group Reporting Associates documents1, the tasks that must be run before the activity based investment & equity elimination are:

• Calculate net income: This task calculates the net income of each consolidation unit based on their income statement items. The net income is used to determine the share of profit or loss of each parent unit in their subsidiaries.
• Calculate group share: This task calculates the group share percentage of each parent unit in their subsidiaries based on their ownership percentage and consolidation method. The group share percentage is used to determine the amount of investment and equity elimination.

According to the SAP S/4HANA Finance for Group Reporting Associates documents1, FS item types that you can use in SAP S/4HANA Finance for group reporting are:

• Balance sheet: An FS item type that represents a balance sheet item, such as assets, liabilities or equity. Balance sheet items are carried forward from one period to another and are translated using historical or current rates depending on their balance type.
• Profit & Loss: An FS item type that represents an income statement item, such as revenue, expense or net income. Profit & loss items are not carried forward from one period to another and are translated using average or current rates depending on their balance type.
• Statistical: An FS item type that represents a statistical item, such as variances or differences between debit and credit balances. Statistical items do not affect the balance sheet total or net income and are not translated.

if the balance sheet in SAP S/4HANA Finance for group reporting is out of balance, when data validation is run, the result is that the variance will be posted to a statistical financial statement item. A statistical financial statement item is a special type of FS item that is used to store variances or differences between debit and credit balances. A statistical financial statement item does not affect the balance sheet total or net income.