SAP FICO Module - Week 3, session 2.pdf

VERSIONS OF FINANCIAL STATEMENTS Financial Statement Versions in SAP Financial statement versions helps to group all the related accounts to get the Balance sheet and Income statement for the purpose of reporting. SAP systems uses the financial statement version (FSV) that assigned to the company c...

VERSIONS OF FINANCIAL STATEMENTS Financial Statement Versions in SAP Financial statement versions helps to group all the related accounts to get the Balance sheet and Income statement for the purpose of reporting. SAP systems uses the financial statement version (FSV) that assigned to the company code when creating the balance sheet and P&L reports. You can maintain financial statement versions as per organization requirements. SAP systems has come with standard financial statement version for all countries. So you can use those standard version if your business requirements are limited or you can create new FSV as per business requirements. The following SAP FICO training tutorials guides how to maintain financial statement versions in SAP Fico step by step. You can maintain the financial statement versions by using the following navigation method. SAP Implementation Guide >> Financial Accounting >> General Ledger Accounting >> Business Transactions >> Closing >> Document >> Define Financial Statement Versions. What are the configuration to be done before creating Financial Statement Versions Chart of Accounts (COA) General Ledger Accounts Financial Statement Version configuration Steps Step 1: – Enter transaction code “OB58” in the SAP command field and press enter. Step 2: – On change view “Financial Statement Versions” Overview screen, a list of standard versions are displayed. Here you can create new versions by copying from existing standard version or creating new version with your own settings. Click on “New entries” to maintain new FSV. Step 3: – On new entries screen, update the following details. Fin. Stmt.Version: – Enter the new four digits key that identifies the financial statement versions in SAP. Name: – Update the descriptive name of the FSV. Maint. language: – Update the language key, in which language your financial statement to be maintain. Item Keys Auto: – Item keys are linked to financial statement items in the FSV. This indicator determines the item keys to be assign automatically or manually. Its recommended to check this option so that item keys are assign automatically. Chart of Accounts: – Enter the COA that you want tag to financial statement version. Group Account number: – Select this indicator to assign account number from the group char of accounts. This configuration is valid only if we are using consolidation functionality. Fun.area.perm.:– Select this indicator to use the functional area organizational elements. It helps to maintain alternative group costs. Step 4: – Click on “Fin.statement items” to configure the financial statement items. On create items, add all the asset items for commercial balance sheet(here we are maintaining item for asset). Press enter to continue. Double click on “No text Exist” and maintain the details of asset text like start name, end of group and item. Financial Statement Version (FSV) General Ledger Accounts used to generate financial statements as per the terms and conditions. Financial Statement Version (FSV) is a tree that organizes and groups general ledger accounts. Financial statement versions are used to create the financial statements for General Ledger accounting planning. Multiple financial statement versions can be defined to generate financial statements in different formats. Create Financial Statement Versions: - Below process is to create Financial Statement Version TFSV (Test Financial Statement Version). Step-1: Enter the transaction code OB58 in the SAP command field and click Enter to continue. (OR) Enter the transaction code SPRO in the SAP command field and click Enter to continue. Click on SAP Reference IMG Step-2: In the next screen, click on New Entries Step-3: In the next screen, provide the below details. Fin. Stmt. Version. Description of the financial statement version. Maint. Language. Item Keys auto is the keys of financial statement items are assigned manually or automatically during the financial statement versions definition. Charts of Accounts, All Accounts can be assigned when the financial statement decided based in the charts of Accounts. If the chart of Accounts specified, account from specified chart of accounts. Otherwise multiple chart of accounts. Group Account Number Fun. Area Parameter – used to assign functional areas or accounts in the financial statement version. Step-4: Once all the details entered, click on Save button to save the details. Step-5: It prompt for the Change Request. Create/Select the change request and Click on right mark to proceed. Step-6: Status bar displays the below message once the financial statement version created successfully. Editing Financial Statement Version: - Below process is to add Financial Statement items to TFSV (Test Financial Statement Version). Step-1: After the Financial Statement Version is saved, click on Financial statement items button to edit its structure Step-2: Next screen displays the Financial Statement Version structure. Click on Create Items button to add items. Step-3: Enter the items, click on tick mark to proceed. Step-4: Next, select the item and click on Assign Accounts. Step-5: Enter the accounts and click on tick mark. Step-6: Click on Save button to save the financial statement versions structure. Step-7: It prompt for the Change Request. Create/Select the change request and Click on right mark to proceed. Step-8: Status bar displays the below message once the financial statement version saved successfully. Consolidation Versions Overview A consolidation version identifies a separate data area in the consolidation database. Versions make it possible to consolidate different sets of financial data or consolidate in different group currencies. For example, you might have separate parallel versions to fulfill different reporting needs, such as actuals data for publishing official reports, planning and forecast data for internal evaluation, restated reporting data for a restatement, and simulation data for a simulation scenario. Settings You can change certain settings for the preset versions by using the Define Versions configuration activity. However, to create a new version, you need to first copy from an existing version by using the Create Version from Reference Version configuration activity and then modifying certain settings of the new version. When you create a new version, you can use one of the multiple template consolidation versions that are preset in the system. These template consolidation versions include actuals (Y10 and Y20), budget (YB*), year-end forecast (YF*), actuals using budget exchange rates (Y11), and actuals using simulated exchange rates (Y12). Note Certain settings can only be set once when you create the version in the Create Version from Reference Version configuration activity. Afterwards, you can no longer change these settings in the Define Versions configuration activity. These settings are the following: Version Type Reference Version Group Currency Run Mode Allow LC, TC, Qty. Changes Fiscal Year Variant Version Types The following version types are available: Standard version: The standard version is a version that does not have a reference version. It leads the execution of tasks for the extension versions that reference it if those versions are defined with the Automatic Run run mode. For these extensions versions, the task status of the standard version also applies. A standard version can store data in local currency (LC), group currency (GC), transaction currency (TC), and quantity (Qty). Group currency extension version: The group currency extension version has a reference version but it has a different group currency than the reference version. This reference version must be a standard version. By default, the group currency extension version only stores data in group currency. However, you can select the option Allow LC, TC, Qty. Changes when creating a group currency extension version to allow it to store data in local currency, transaction currency, and quantity as well as in group currency. Extension version: The extension version has a reference version but it has the same group currency as the reference version. It, for example, translates financial data using a different translation approach, such as using budget rates. This reference version can be a standard version or an extension version. From a technical perspective, it carries only the delta amount to the reference version. By default, the extension version only stores data in group currency. However, you can select the option Allow LC, TC, Qty. Changes when creating an extension version to allow it to store data in local currency, transaction currency, and quantity as well as in group currency. Note You can only assign one group currency to one version, and the tax rate needs to be the same for related version types. Reference Versions The reference version is the version that a group currency extension version or extension version relies on to produce different consolidation values. For example, these values can be in different currencies, with restated reported data, or for a simulation scenario. Note For more information on the role that reference versions play in multiple group currencies as well as in restatement and simulation, see Multiple Group Currencies and Restatement and Simulation. A reference version can be a standard version, group currency extension version, or extension version. Example Multiple Group Currencies You want to consolidate financial statements in currencies EUR, USD, and CNY. The GC extension versions Y12 and Y13 use the reference version Y11, where local currency values are stored. Additionally, you want to consolidate financial statements in EUR using the exchange rate from the budget. In this case, Y14 is an extension version. The GC extension versions and the extension version are run synchronously with the standard version. Version Reference Group Rates Version Run Mode Stores Amounts Version Currency Type Y11 - EUR Standard Standard Manual LC, TC, Full rate Run Qty, GC Y12 Y11 USD Standard GC Automatic GC Delta rate extension Run Y13 Y11 CNY Standard GC Automatic GC Delta rate extension Run Y14 Y11 EUR Budget Extension Automatic GC Delta rate Run Example Restatement Due to an IFRS change and a management reorganization, you need to restate financial statements that have already been published in the standard version Z11. For the restatement due to the IFRS change, you create extension version Z12 with Z11 as the reference version because you want to restate the statements from version Z11. For the restatement due to the management reorganization, you create extension version Z13 with Z12 as the reference version so that Z13 can also access the data from both Z12 and Z11. This access to data is possible because extension versions can access the data from all versions beneath them in the version stack. For more information, see Version Stack. With these separate versions in place, you can restate and consolidate the financial statements in each version independently from the other versions. Also, since the restatements occur in their own separate extension versions, all the data from the standard version Z11 is secured and remains unchanged. Version Reference Group Rates Version Run Mode Stores Amounts Version Currency Type Z11 - EUR Standard Standard Manual LC, TC, Full rate Run Qty, GC Z12 Z11 EUR Standard Extension Manual LC, TC, Delta rate Run Qty, GC Z13 Z12 EUR Standard Extension Manual LC, TC, Delta rate Run Qty, GC Source Ledger and Group Reporting Preparation Ledger Depending on the From Year for Group Reporting Preparation Ledger that you've maintained in the Check Global System Settings configuration activity, you must maintain either a Source Ledger or a Group Reporting Preparation Ledger. If you're working in a year before this from year, then you must maintain a Source Ledger for the version. If you're working in a year as of this from year, then you must maintain a Group Reporting Preparation Ledger for the version. If you select Use Plan Data Integration, then you must make sure you also maintain a Source Ledger. Note In the new reporting logic, a standard version and its related extension versions must all have the identical setting for Use Plan Data Integration. In other words, if you select Use Plan Data Integration, then it must be selected for the standard version and its related extension versions. If you don't select this setting, then it must not be selected for the standard version and its related extension versions. Fiscal Year Variant You must assign the same FYV to all versions that have the same special versions with reference to time-dependent settings, for example, for attributes, data entry, or tax rate. You also need to assign the same fiscal year variant to the standard version and the extension version that refer to the standard version. SAP recommends that you use the same FYV in all versions. Do not use the FYV to define various valid periods in different versions related to each other. This would significantly increase the complexity of your comparison reporting and other system tasks (for example, data copy). You should, for example, use the same FYV (here, with 12 periods) for monthly (management) reporting and for quarterly financial reporting. For more information, see Fiscal Year Variant. Note In the new reporting logic, a standard version and its related extension versions must have the same fiscal year variant. Special Versions For each consolidation version, you assign special versions. By assigning special versions to consolidation versions, you enable the reuse of settings maintained for a special version among the different consolidation versions. In other words, you only need to enter the control parameters once in a special version. Then, these settings are reflected in all the consolidation versions to which the special version is assigned. For example, consolidation versions for actuals data and planning data can share all special version settings except that for Exchange Rates. In this case, you can assign different Exchange Rates special versions to each consolidation version. When you perform a task in a consolidation version, the system reads the special versions that are relevant for that task and that are assigned to that consolidation version. The following special versions are available: Data Entry: Controls the assignment of validation methods to consolidation units and the assignment of the document types to the data collection tasks. Consolidation Group Attribute: Controls the assignment of version- dependent attributes to consolidation groups. Structure: Controls the assignment of consolidation units to consolidation groups as well as consolidation relevant settings for consolidation units, such as the period of the first consolidation, the period of the divestiture, and the consolidation method. Consolidation Unit Attribute: Controls the assignment of version- dependent attributes to consolidation units, for example, universal journal integration, source fields for local and group currency, upload method, currency translation method, and tax rate.  Exchange Rates: Controls the assignment of exchange rate type to exchange rate indicator. Reclassification and Elimination: Controls the assignment of method and document type to task. FS Item Attribute: Controls the time and version dependency of FS item attributes. Reporting Rules: Controls the assignment of reporting rule variants to consolidation version. For more information, see Assign Reporting Rules to Versions. FS Group Items: Controls the mapping relationship between financial statement (FS) items and general ledger accounts. For more information, see Assign FS Item Mappings to Periods and Versions. Note The settings for certain special versions must be identical for a standard version and its related extension versions. The settings for the Consolidation Group Attribute special version must always be identical for these versions. If an extension version uses the Automatic Run run mode, the settings for the Structure special version must also be identical for this extension version and its related standard version. Note If you're using the old reporting logic, then some of the settings for consolidation versions may differ.