S/4 Finance for Group Reporting

In a complex, globalized world, globally active companies - especially corporations - need to consolidate their financial data efficiently and transparently. At the same time, the framework conditions are constantly changing. The changes brought about by globalization and digitalization as well as the increasing requirements of legislators and capital markets are forcing companies to act more flexibly and quickly. For the finance sector, this means that the ability to react quickly and precisely to changes is crucial.

This is where S/4 Finance for Group Reporting comes into play, helping companies to optimize their financial processes in the area of group reporting and make well-founded decisions. SAP has long provided tools for consolidation and reporting, such as SAP Business Planning and Consolidation (SAP BPC), SAP Enterprise Controlling Consolidation System (SAP EC-CS) and SAP Strategic Enterprise Management Business Consolidation (SAP SEM-BCS).

Why change?

However, the most important reason for the timely switch to S/4 Finance for Group Reporting is the expiry of mainstream maintenance (end of maintenance) for the classic SAP solutions for financial consolidation by the end of 2027. Companies should therefore consider S/4 Finance for Group Reporting in good time and make the switch in order to avoid risks and problems in operational processes. S/4 Finance for Group Reporting is a strategic consolidation solution that is already integrated into S/4 and, according to SAP, accelerates closing processes by up to 50 percent by replacing manual processes with automated workflows and consolidating data from the Universal Journal in real time. The solution was specially developed for companies that manage several subsidiaries, branches or profit centers, which ideally - but not necessarily - also prepare their individual financial statements in the same S/4 system. It makes it possible to consolidate and analyze financial data in real time.

This is crucial for companies that operate in a globalized economy, react quickly to changes and must always prepare legally compliant, auditable consolidated financial statements. A major advantage of Group Reporting is the possibility of real-time consolidation, as every accounting document from a subsidiary is immediately visible at Group level and can be further processed and evaluated at this level in the sense of "real-time reporting". In contrast to traditional systems, where the individual financial statement data must first be summarized and processed, the solution enables direct access to the data of the group companies' financial processes. This enables managers to identify and correct errors or inconsistencies at an early stage, resulting in a faster closing process - a decisive factor for the "continuous close" strategy.

SAP S/4 Hana for Group Reporting is a global platform from data collection to reporting.

"Golden Record" reality

Group Reporting supports companies in strengthening their competitiveness through agility and fast, consistent reporting by integrating data from different sources and creating a "single source of truth". The solution is particularly suitable for companies with complex structures such as multiple legal entities or profit centers. The optional Group Reporting component "Data Collection", which is based on the BTP, enables seamless integration of individual financial statement data from subsidiaries that are not located in the (same) S/4 system as Group Reporting and possibly not even in an SAP system, but in a non-SAP system.

Data Collection allows users to create their own data collection interface with the desired dimensions and then release it for decentralized data collection in all systems. The data collected in this way can be transferred to consolidation using a separate data monitor task. In addition to this pure individual financial statement data, notes, information and ESG reports can also be recorded in this component and integrated into the consolidated financial statements. Furthermore, by connecting to the SAP Analytics Cloud, companies can analyze data in real time, carry out planning and forecasts or use new technologies such as machine learning. The SAP Analysis for Microsoft Office plug-in can also be connected. This tool automatically retrieves the data from the S/4 system and thus provides intuitive and multidimensional data analysis in MS Office.

Outlook: AI integration

S/4 Finance for Group Reporting is embedded in SAP's AI-first strategy. With Joule, SAP will provide agents for various tasks in the future. In the area of Group Reporting, an agent for supporting the specialist department with automatic posting to the correct items in the event of a merger would be conceivable. But this is just one example; there are numerous other use cases for such agents within Group Reporting.

Conclusion

Group Reporting optimizes financial processes, accelerates decision-making and creates the basis for data-driven corporate management through efficient data consolidation.

Group Reporting

Efficiency increaseThe automation of consolidation processes saves time and money. This is rounded off by the optional connection to SAP Disclosure Management for accelerated, collaborative creation of the group annual report.

Real-time analyticsS/4 with Embedded Analytics as the basis and integration into the SAP Analytics Cloud and SAP Analysis for Office enables financial analysis from individual financial statements to consolidated financial statements in real time.

Plan consolidation and simulationsGroup Reporting not only analyzes past data, but also simulates future what-if scenarios. The integration with financial planning in SAC also provides additional benefits here.

ComplianceEach step in the consolidation process is posted with supporting documents, which increases the transparency and traceability of the financial data. In addition, all common consolidation methods such as at-equity, proportionate and full consolidation are mapped.

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