Equity Pick-Up Overview in SAP S/4HANA

What does equity pick-up (EPU) specifically require for parent units?

Which statement is true regarding the change of equity after acquisition?

Which countries require equity pick-up as an essential step for consolidation?

What is one of the steps included in the equity pick-up process flow for SAP S/4HANA Finance?

What happens to EPU entries during group reporting?

Equity Pick-Up (EPU) Overview

EPU is a regulatory requirement in some countries (e.g., China, Brazil) for reporting standalone financial statements of parent units.
EPU recalculates the parent company's investment to reflect equity changes post-acquisition.
Changes in equity, including income and reserves (or OCI) from direct subsidiaries, are reflected in parent unit books.
This includes the "pick-up" from the parent company's direct subsidiaries (a hierarchical step-by-step process).
In the USA, financial services and some regulated industries may be required to perform EPU based on regulator requests

EPU Process in SAP S/4HANA

Data collection involves general ledger (G/L) data, uploads, mappings/imports, and manual data entry.
Data population includes direct share percentages, net income calculations, and adjustments for posting level 10.
The system calculates EPU.
The system generates an Excel file for posting EPU entries to group reports.
EPU entries in group reports use a different document type to prevent consolidation.
Reports for group financial data include EPU entries but exclude EPU reversal entries.

This quiz explores the Equity Pick-Up (EPU) process and its regulatory implications in different countries, focusing on financial reporting for parent companies. You'll also learn how EPU is integrated within the SAP S/4HANA system, including data collection and calculations involved. Test your understanding of key concepts and processes related to EPU.