BCS/4HANA 3.0 - SAP

PUBLIC

Barbara Bremer, Radim Benek, Dr. Joachim Stelzer

SAP Application Innovation Services, Financials

February 2022

SAP BW/4HANA, Business Consolidation Add-On ( “BCS/4HANA“ )Release 3.0

2PUBLIC© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ

▪ is an add-on running on SAP’s strategic data warehousing solution – SAP BW/4HANA

▪ is the natural successor of SEM-BCS for consolidation ( group close ) in data warehousing

▪ has been initially released in year 2019, meanwhile 3 release versions have been delivered

▪ is now the innovation platform for BCS ( business consolidation )

▪ represents a viable option for installed base customers of SEM-BCS

▪ enables technology adoption of SAP BW/4HANA by BCS

▪ provides a functional scope significantly beyond SEM-BCS

▪ supports both greenfield implementations and various conversion paths from SEM-BCS

▪ follows the maintenance strategy of its underlying technology platform – SAP BW/4HANA

▪ is documented in the SAP Note 1330000

SAP BW/4HANA, business consolidation add-on ( “BCS/4HANA” )

https://launchpad.support.sap.com/#/notes/1330000



▪ BCS/4HANA 1.0

– now in customer-specific maintenance ( same as SAP BW/4HANA 1.0 )

▪ BCS/4HANA 2.0

– runs on SAP BW/4HANA 2.0

– generally available since July 2019

– functional enhancements in SP03 ( “feature package” )

– mainstream maintenance until end of year 2024 ( same as SAP BW/4HANA 2.0 )

▪ BCS/4HANA 3.0

– runs on SAP BW/4HANA 2021

– generally available since March 2022

– mainstream maintenance until end of year 2027 ( same as SAP BW/4HANA 2021 )

BCS/4HANA – Release Versions


▪ 1330000 ( release note for BCS/4HANA )

▪ 2805174 ( technical installation and upgrade to BCS/4HANA 2.0 )

▪ 3136125 ( technical installation and upgrade to BCS/4HANA 3.0 )

▪ 2651241 ( in-place conversion from SEM-BCS (SEM-BW) to BCS/4HANA )

▪ 2934843 ( remote conversion from SEM-BCS (SEM-BW) to BCS/4HANA )

▪ 3141133 ( migration of BW queries from SEM-BCS (SEM-BW) to BCS/4HANA )

BCS/4HANA – Important SAP Notes


New features in BCS/4HANA 3.0

▪ Upload and download of reclassification and allocation method settings

▪ Hierarchies for reporting on HANA data base

▪ Inter-profit elimination of transferred assets (IPA) in local currency

▪ User-exit in inter-unit elimination (IUE)

▪ Copy of automatic goodwill into planning version

▪ Deletion of preliminary workflow documents

▪ Usability improvements

– File export of validity of consolidation unit combinations

– File export of hit list of where-used check

– Transport of selected hierarchies

– Improved usability of single selections

– Sorting within validation methods

– Execution of task group with selection screen

BCS/4HANA 3.0 – Functional Scope


















Reclassification Method Settings


Upload / Download of Method Settings – Consolidation Workbench

Individual ( existing ) method

• Creation of download file

• Changes to existing method from file

Creation of new method from file


Reclassification Method Download File – Method Settings


Reclassification Method Download File – Parameters / Legend


Allocation Method Settings


Allocation Method Download File – Method Settings


















BCS reporting logic joins the physical transaction data ( records on totals data base ) with hierarchy information ( hierarchy structure, consolidation intervals, accounting techniques ). Execution of this “table join” can be pushed down to HANA DB.

In SEM-BCS, the pushdown of BCS reporting logic to HANA DB relies on “factor tables” which are

▪ generated tables per consolidation area in SEM-BCS

▪ filled by factors ( 0, 1, -1 ) precalculated from hierarchy information

▪ separate storages per posting level ( 10 = unit-based, 20 = two-sided, 30 = group-based )

In BCS/4HANA 3.0, the new concept of “reporting hierarchies” has been introduced. It replaces the “factor tables” by

▪ ADSO for consolidation groups ( hierarchy relations between parent groups and groups => for group-based postings )

▪ ADSO for consolidation units ( hierarchy relations between parent groups and units => for group-independent postings )

In a multi-level hierarchy, also indirect assignments are explicitly stored into these ADSO. Therefore, there is no need for “factors” ( 0, 1, -1 ), nor for separate storage of hierarchy information for two-sided eliminations – the latter results from the hierarchy information for reporting unit and partner unit.

The new concept of “reporting hierarchies” enables simplification and speed-up in evaluation of BCS reporting logic.

Reporting Hierarchies on HANA DB – Concept


Meta Data in BW/4HANA

▪ Create BW Source System ( with connection type “access to local HANA schema” )

▪ Include InfoObject 0FISCPER ( = 7-digit year / period ) into ADSO for totals records

▪ Create InfoObjects for “parent group” ( with reference to InfoObjects for “consolidation group” )

Data Basis in BCS/4HANA

▪ Assign fields for “parent group”, on tab “data model”

▪ Generate “InfoProvider for reporting hierarchies” in BW/4HANA, on tab “data streams”

Consolidation Area in BCS/4HANA

▪ Activate indicator “hierarchies for reporting”

=> triggers initial load of ADSO for organizational unit hierarchies ( upon confirmation by end user )

Define BW Query on “InfoProvider for reporting hierarchies” ( instead of “BAdI provider” )=> in multi-level group hierarchies, key figures in query must be defined with exception aggregation

“no aggregation along hierarchy”

Reporting Hierarchies on HANA DB – Setup and Query Definition


Reporting Hierarchies on HANA DB – Runtime of Query Execution


Reporting Hierarchies – Totals ADSO in BW/4HANA

InfoObject 0FISCPER ( = 7-digit year / period )

must be included into ADSO for totals records


Reporting Hierarchies – Data Basis, Totals ADSO

Field for 7-digit year / period

in ADSO for totals records

( not part of data model )


Reporting Hierarchies – InfoObject for “Parent Group” in BW/4HANA (1)

Reference to InfoObject

for consolidation group


Reporting Hierarchies – InfoObject for “Parent Group” in BW/4HANA (2)

Reference to InfoObject

for consolidation group

( 2nd matrix dimension )


Reporting Hierarchies – Data Basis, Parent Consolidation Group

Assignment of fields for

“Parent Consolidation Group”


Reporting Hierarchies – Data Basis, InfoProvider for Reporting Hierarchies

Generation of “InfoProvider for Reporting Hierarchies”

=> this causes generation of further objects in BW/4HANA

• ADSO for consolidation group hierarchies

• ADSO for consolidation unit hierarchies

• SAP HANA calculation view for reporting logic


Reporting Hierarchies – Consolidation Area, Indicator

Activation of indicator “Hierarchies for Reporting”

=> this causes appearance of popup to trigger initial load of ADSO

for organizational unit hierarchies ( -> see next page )


Reporting Hierarchies – Initial Load ( upon Activation in Consolidation Area )


Reporting Hierarchies – Explicit Load ( in “Tools” View of Workbench )

Consolidation workbench, “Tools” view, entry “Load Reporting Hierarchies”

=> explicit trigger for load of ADSO for organizational unit hierarchies


Reporting Hierarchies – Query Definition ( Additional Key Figures )


Reporting Hierarchies – Query Definition ( Formula for Additional Key Fig. )

1-to-1 assignment between original and additional key figure

=> no calculation


Reporting Hierarchies – Query Definition ( Exception Aggregation )


















Before BCS/4HANA 3.0, the “inter-profit elimination of transferred non-current assets” (IPA) only treats

group currency. Therefore, no currency translation (C/T) differences on depreciation adjustments are

posted at all.

In BCS/4HANA 3.0, the IPA functionality has been enhanced

▪ Data collection of additional financial data (AFD) for non-current assets and asset transfers

– End user maintains AFD in local currency only

– System performs C/T of AFD “on-the-fly” during data collection, from local into group currency

▪ System behaviour at runtime of IPA task

– Creation of AFD for consolidated non-current assets in local and group currency, C/T “on-the-fly”

– Deduction of C/T differences between non-current assets and consolidated assets

– Posting of this deduction for adjustment of C/T differences from local to group view

Inter-Profit Elimination of Transferred Assets (IPA) in Local Currency


External infrastructure

▪ Meta data in BW/4HANA

– New InfoObjects for fields for IPA in local currency ( local currency and C/T difference amounts )

▪ Data basis in BCS/4HANA

– Generation of fields for IPA in local currency into AFD streams

▪ Consolidation area

– Indicator for activation of “IPA in local currency”

Master data and customizing

▪ Type of assets / liabilities ( and master data of non-current assets )

– Posting accounts for C/T differences

▪ Master data of non-current assets

– Indicator for “asset in local currency”

▪ IPA task settings

– Exchange rate indicators and translation key

IPA in Local Currency – Setup


New InfoObjects in BW Content

▪ Characteristics

– 0BCS_ASTLC, 0BCS_ASTTLC

▪ Key figures for non-current assets

– 0BCS_LCVAD0, 0BCS_LCVAD1, 0BCS_LCVAD2

– 0BCS_LCVAN1, 0BCS_LCVAN2, 0BCS_LCVAN3, 0BCS_LCVAN4

– 0BCS_LCVAV1, 0BCS_LCVAV2

▪ Key figures for asset transfers

– 0BCS_LCRVN, 0BCS_LCCOGM, 0BCS_LCICRU, 0BCS_LCICAU

IPA in Local Currency – Meta Data in BW/4HANA


IPA in Local Currency – Data Basis, Data Stream Fields

Regeneration of data basis is required,

with inclusion of additional fields

for IPA data streams


IPA in Local Currency – Consolidation Area, Settings


IPA in Local Currency – Type of Assets / Liabilities, Posting Items for C/T

Posting items for C/T of non-current assets are defined in

• type of assets / liabilities ( globally )

• asset master data ( for individual asset )


IPA in Local Currency – Task Settings for Exchange Rate Indicators


IPA in LC ( Example Scenario ) – Asset Master Data

Sold Asset U Bought Asset V

Capitalization time 003 / 2020 006 / 2020 (*)

Begin of depreciation 003 / 2020 006 / 2020

Retirement time 006 / 2020 (*) 003 / 2021 (+)

Life time 100 periods 400 periods

(*) Asset transfer from U to V at beginning of period

(+) Sale of asset V to 3rd party at beginning of period


IPA in Local Currency – Asset Master Data

Sold asset Bought asset


IPA in LC ( Example Scenario ) – Exchange Rates ( Transfer Period )

Time 006 / 2020

Exch. Rate Indicator Source Currency Target Currency

X (B/S) 1 CHF 1,5 GBP

X (B/S) 1 GBP 3 USD

X (B/S) 1 CHF 4,5 USD

Y (I/S) 1 CHF 1,2 GBP

Y (I/S) 1 GBP 2 USD

Y (I/S) 1 CHF 2,4 USD


IPA in LC ( Example Scenario ) – Exchange Rates ( Subsequent Period )

Time 007 / 2020


X (B/S) 1 CHF 2,5 GBP

X (B/S) 1 GBP 4 USD

X (B/S) 1 CHF 10 USD

Y (I/S) 1 CHF 1,5 GBP

Y (I/S) 1 GBP 2,5 USD

Y (I/S) 1 CHF 3,75 USD


IPA in LC ( Example Scenario ) – Exchange Rates ( Subsequent Year )

Time 002 / 2021


X (B/S) 1 CHF 2 GBP

X (B/S) 1 GBP 3,5 USD

X (B/S) 1 CHF 7 USD

Y (B/S) 1 CHF 1,4 GBP

Y (B/S) 1 GBP 3 USD

Y (B/S) 1 CHF 4,2 USD


IPA in LC – Key Figures in Additional Financial Data for Transferred Assets

Key Figure Meaning

AP Acquisition value

L3 C/T difference of acquisition value in prior periods

V1 C/T difference of depreciation in I/S in prior periods

V3 Deviation of C/T differences ( B/S vs. I/S ) of depreciation in prior periods

BG Book value at beginning of current period

L4 C/T difference of acquisition value in current period

DN Ordinary depreciation in current period

V2 C/T difference of depreciation in I/S in current period

V4 Deviation of C/T differences ( B/S vs. I/S ) of depreciation in current period

EN Book value at end of current period


IPA in Local Currency – Non-Current Asset AFD ( Capitalization )

Asset transfer at time 006 / 2020


(*) key figure is maintained by end user


IPA in Local Currency – Non-Current Asset AFD ( Value Allowance )




IPA in Local Currency – Non-Current Asset AFD ( Value Changes in Period )



(*) key figures are maintained by end user


IPA in Local Currency – Asset Transfer AFD


(*) key figure is maintained by end user


Non-Current Asset AFD ( Local Currency of Buyer vs. Group Currency )

Key Figure 006 / 2020 007 / 2020

AP 2.000 CHF / 9.000 USD 2.000 CHF / 9.000 USD

L3

V1 5 CHF / 12 USD

V3 10,5 USD

BG 2.000 CHF / 9.000 USD 1.995 CHF / 8.977,5 USD

L4 11.000 USD

DN 5 CHF / 12 USD 5 CHF / 18,75 USD

V2 6,75 USD

V4 10,5 USD 52 USD

EN 1.995 CHF / 8.977,5 USD 1.990 CHF / 19.900 USD


Consolidated Asset AFD ( Local Currency of Seller vs. Group Currency )

Key Figure 006 / 2020 007 / 2020

AP 1.000 GBP / 3.000 USD 1.000 GBP / 3.000 USD

L3

V1 30 GBP / 60 USD 40 GBP / 80 USD

V3 30 USD 40 USD

BG 970 GBP / 2.910 USD 960 GBP / 2.880 USD

L4 1.000 USD

DN 10 GBP / 20 USD 10 GBP / 25 USD

V2 20 USD

V4 10 USD 35 USD

EN 960 GBP / 2.880 USD 950 GBP / 3.800 USD


IPA in LC ( Example Scenario ) – Depreciation Adjustment ( in Group Currency )

Key Figure 006 / 2020 007 / 2020

L4 -10.000 USD

DN 8 USD 6,25 USD

V2 13,25 USD

V4 -0,5 USD -17 USD


IPA in Local Currency – Posting of IPA Document ( Transfer Period )


IPA in Local Currency – Posting of IPA Document ( Subsequent Period )


















User-Exit in Inter-Unit Elimination (IUE) – Interface

New Enhancement Spot ( transaction SE18 )

for user-exit in inter-unit elimination (IUE)


User-Exit in Inter-Unit Elimination (IUE) – Method Parameters (1)


User-Exit in Inter-Unit Elimination (IUE) – Method Parameters (2)


















Copy of Automatic Goodwill – Copy Method for All Data Streams During BCF


Copy of Automatic Goodwill – Copy Method for Goodwill


Copy of Automatic Goodwill – Task for Balance Carry Forward

Assignment of copy method to balance carry forward task (BCF)

=> If version of BCF execution matches with target version in copy method:

Creation of opening balance in target ( planning ) version

by reading data in prior year from source ( actual ) version

• Totals

• Investment

• Equity


Copy of Automatic Goodwill into Planning Version – Version Combination

Setting for “Starting Year for Planning” in version combination

=> Impact of this setting in BCS/4HANA 2.0 vs. 3.0 => see next pages


The setup described on the previous pages causes that balance carry forward (BCF) reads prior year data from source version and writes carry forward results into target version.

This special logic applies if BCF task is executed

▪ in version combination which is specified as “target version” in copy method assigned to BCF task

▪ in “starting year for planning” which is specified in the executed ( target ) version combination

This special logic covers data streams for totals, investment and equity. However, goodwill is not covered ( because it is carried forward not by BCF, but by automatic consolidation of investments (C/I) ).

Copy method for goodwill only treats “manual goodwill” entries ( which were created by data collection ), but it generally discards “automatic goodwill” entries ( which were created by automatic C/I task ), for sake of avoiding interferences with automatic C/I processing.

Functional gap of discarding goodwill in setup of planning version causes incomplete postings for C/I in planning versions ( because “automatic goodwill” entries are missing therein ).

Setup of Planning Version in BCS/4HANA 2.0


The Functional gap of discarding “automatic goodwill” in setup of planning version is closed in

BCS/4HANA 3.0 by an enhancement in copy of goodwill:

Copy method for goodwill also treats “automatic goodwill” entries ( which were created by C/I task ),

if it is executed

▪ in version combination which is specified as “target version” in copy method assigned to BCF task

▪ in “starting year for planning” which is specified in the executed ( target ) version combination

▪ in first closing period of C/I task in the executed ( target ) version combination

With this functional enhancement, the “automatic goodwill” entries are available in the target version,

which ensures complete postings for C/I in planning versions.

Copy of Automatic Goodwill in BCS/4HANA 3.0


















Deletion of Preliminary Workflow Documents

View “Tools” of consolidation workbench (UCWB)

=> function “Analyze and Repair Data Streams”

=> new option

“Delete Preliminary Workflow Documents”

This option deletes preliminary documents

from ADSO for held and sample documents

which had been created therein when end user had

posted a manual document with workflow

Prerequisite for this deletion:

Workflow has already been approved

( and, therefore, “real” document has been posted )


















File Export of Validity of Consolidation Unit Combinations

New column for “Validity Interval”

in “Table Display” enables download

of validity settings into local file


File Export of Hit List of Where-Used Check – Download Option

New icon for download of hit list

of where-used check into excel file


File Export of Hit List of Where-Used Check – Download File


Transport of Selected Hierarchies

New option to restrict transport

to individual hierarchies


Usability of Single Selections – Option to Insert from Clipboard

New option to insert multiple rows

from clipboard


Sorting of Validation Rules within Validation Method

New option for sorting validation rules

within validation method


Execution of Task Group with Selection Screen

Option in consolidation monitor in context menu

of task group to “Execute with Selection Screen”

Thank you.

Contact information:

Dr. Joachim Stelzer

Chief Development Architect

SAP Application Innovation Services, Financials

E-Mail: [email protected]

mailto:[email protected]

© 2021 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of

SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its

distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or

warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.

The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty

statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional

warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or

any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,

and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and

functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason

without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or

functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they

should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered

trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names

mentioned are the trademarks of their respective companies.

See www.sap.com/trademark for additional trademark information and notices.

www.sap.com/contactsap

Follow us

http://www.sap.com/trademark

https://www.sap.com/registration/contact.html

https://www.linkedin.com/company/sap

https://www.youtube.com/user/SAP

https://twitter.com/sap

https://www.facebook.com/SAP