What is reclassification in SAP FIN-SEM-BCS - Business Consolidation?

SAP Term: reclassification

• Component: FIN-SEM-BCS

• Component Name: Business Consolidation

• Description: A partial or full transfer of a trigger value with a reversed debit/credit sign from a source assignment such as an FS item to a target assignment. The trigger and source assignments are usually the same. The Consolidation system is capable of reclassifications to different posting levels. Hence, you can use reclassification to: adjust the reported financial data of the consolidation units to meet corporate policy requirements standardizing entries reclassify financial data that has already been consolidated. &EXAMPLE& Portions of the inventory in an individual financial statement might be viewed as being "Finished Goods," whereas, from the corporate group's standpoint, they are regarded as "Unfinished Goods." In this case, the "Finished Goods" must be reclassified as "Unfinished Goods."

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• Key Concepts: 
  Reclassification is a process in SAP Business Consolidation (FIN-SEM-BCS) that allows users to adjust the values of certain accounts in order to better reflect the actual financial situation of a company. This process is used to correct errors or discrepancies in the financial data, or to adjust the data to comply with certain accounting standards. 
  
  How to use it: 
  Reclassification can be done manually or automatically. To manually reclassify an account, users must first select the account they wish to reclassify and then enter the new values for that account. The system will then update the account with the new values. To automatically reclassify an account, users must first set up a rule that defines when and how the account should be reclassified. The system will then apply this rule whenever it detects a discrepancy in the financial data. 
  
  Tips & Tricks: 
  When manually reclassifying an account, it is important to double-check the new values before submitting them. This will help ensure that the data is accurate and up-to-date. Additionally, when setting up an automatic reclassification rule, it is important to make sure that the rule is specific enough so that it only applies when necessary. 
  
  Related Information: 
  Reclassification is closely related to other processes such as consolidation and currency translation. Consolidation is used to combine multiple accounts into one, while currency translation is used to convert financial data from one currency to another. Both of these processes can be used in conjunction with reclassification in order to ensure that the financial data is accurate and up-to-date.