IFRS 18, Part 2: SAP FI View, Adapting the Financial Statement Version (FSV)

Part 1 summarized what IFRS 18 changes: the income statement is split into operating, investing and financing categories, and an operating profit subtotal becomes mandatory.

Part 2 looks at SAP FI. In SAP the shape of the income statement is defined by the Financial Statement Version (FSV). This post reads the FSV of an S/4HANA sandbox as it is today and lists what has to change to present it the IFRS 18 way.

Example system: S/4HANA sandbox, company code CC10, chart of accounts COA1, financial statement version FSV1. It is a training system, not a real company.

1. What IFRS 18 requires in the income statement (summary)

Item Topic Detail
Three categories Operating, investing, financing Every income and expense item goes into one of the three categories. Income taxes and discontinued operations are shown separately.
Subtotal Operating profit or loss Income minus expenses in the operating category. Mandatory.
Subtotal Profit before financing and income taxes Operating profit plus the investing category. Also mandatory.
Classification Main business Gains or losses on disposal and impairment of assets used in the main business are operating. Interest income, dividends and results of associates are investing. Interest on borrowings is financing.
Effective date 1 January 2027 Annual periods beginning on or after this date. Because of comparatives, 2026 figures also have to be re-presented in the new format.

2. The income statement structure in the sandbox today (FSV1, as read from the system)

Item no. Item name Assigned G/L account range Detail
1 Fin. Statement Notes (sum of sub-items) Top item that holds the whole income statement. Items 8 to 15 are its children.
8 Sales 4010 to 4019 Revenue. Actual account: 4010 Sales-FG.
9 COGS 4020 to 4029 Cost of goods sold. Actual account: 4020 COGS-FG.
10 Price Difference 4030 to 4079 Price difference and inventory revaluation accounts: 4030 PD-FG, 4040 PD-SFG, 4050 PD-RM, 4060 UMB-RM, 4070 WIP-Inv Change.
11 Operating Expenses (sum of sub-items) Parent item for operating expenses. Items 12 to 14 are its children.
12 Factory Out 5010 to 5029 Production output accounts: 5010 FO-FG, 5020 FO-SFG.
13 Material Cost 5030 to 5059 Material consumption: 5030 Cost-RM, 5040 Cost-FG, 5050 Cost-SFG.
14 Expenses 5070 to 5099, 5210 to 5220, 6010 to 6020 Personnel, depreciation and other expenses: 5070 SAL, 5080 DEP, 5090 subcontracting, 5210 Building_Expense, 6010 Labor.
15 Temp 9010 to 9899 GR/IR and other temporary accounts. The disposal accounts 9140 Gain on Disposal and 9150 Loss on Disposal also fall into this range.
2 to 5 Not assigned / P+L result / Net result (automatic) Unassigned accounts and the period result, filled by SAP automatically.

3. A proposed FSV in the IFRS 18 shape

IFRS 18 category FSV item (proposed) Accounts Detail
Operating Revenue 4010 to 4019 The current Sales item, unchanged.
Operating Cost of sales 4020 to 4029 The current COGS item, unchanged.
Operating Price differences 4030 to 4079 The current Price Difference item. Whether to fold it into cost of sales or keep it separate is a company decision.
Operating Operating expenses 5010 to 6020 The current Operating Expenses item (Factory Out, Material Cost, Expenses).
Operating Gain or loss on disposal of PP&E 9140, 9150 Currently mixed into the Temp item. Under IFRS 18 the disposal result of assets used in the main business is operating, so these accounts move out of Temp into a new item under operating.
Subtotal Operating profit (sum of the items above) A parent item that groups the items above gives the subtotal automatically.
Investing Interest income, dividend income (no account yet) COA1 has no interest or dividend income account. Create one with FS00 and assign it here when needed.
Subtotal Profit before financing and income taxes (operating + investing) One more parent item that groups the operating profit item and the investing item.
Financing Interest expense (no account yet) COA1 has no interest-on-borrowings account either. Create and assign.
Income taxes Income tax expense (no account yet) No income tax account in the sandbox. In a real system the existing tax accounts are assigned to this item.

4. What to touch in SAP FI

Item Object Detail
FSV editing OB58 / Fiori app Financial statement versions are maintained in OB58 (GUI) or in the Fiori app Manage Financial Statement Versions. Copying the existing version to a new one (for example FSV2) keeps the current reports untouched for comparison.
Where the FSV is stored FAGL_011PC / FAGL_011ZC / FAGL_011QT In S/4HANA the FSV items (PC), account assignments (ZC) and item texts (QT) are stored in these tables. The figures above were read from them. The old tables T011P and T011Q are empty.
New accounts FS00 If there is no account for the investing, financing or income tax category, create it with FS00. In the sandbox the P&L accounts of COA1 use account groups AG10 (4010 to 9150) and AG90 (6020 to 6820).
Account type GLACCOUNT_TYPE SKA1 distinguishes P (primary cost element), N (non-operating P&L account) and S (secondary cost element). Secondary cost elements (8020 Activity Labor, 8080 IO Settlement and so on) net to zero inside the company and are not assigned in FSV1. That stays the same after the IFRS 18 change.
Functional area Functional Area Functional areas split expenses into manufacturing and selling/administration. The sandbox has two sets, FA10 (manufacturing) / FA20 (S&A) and JNCM / JNCS, and all 2026 postings use FA10 / FA20. Use this field to show expenses by function inside the operating category.
Standard reports F.01 / S_ALR_87012284 Once the FSV is changed, F.01 (RFBILA00) shows the new shape. Fiori analytical apps do not read a classic OB58 FSV directly; it has to be replicated to a runtime hierarchy, for example with Replicate Runtime Hierarchy (per SAP Learning material).
Custom report ZFI0030 (sandbox) The sandbox P&L tree report reads the FSV through the standard function module FI_IMPORT_BALANCE_SHEET_POS, so switching its version parameter to the new FSV gives the same structure.

5. Preparation checklist

No. Step Detail
1 Account classification table Assign every P&L account to operating, investing, financing or income taxes. This is an accounting decision.
2 Create a new FSV Copy the existing FSV and rebuild it with the IFRS 18 item structure. Keep the old version for comparison.
3 Find unassigned accounts Run F.01 with the new FSV and check that nothing lands in the Not assigned item.
4 Clean up functional areas If there are two sets of functional area values, consolidate them. Check the substitution rules and the functional area in cost center master data together.
5 2026 comparatives The first 2027 report must show 2026 in the new shape too, so run the 2026 postings through the new FSV.
6 MPM preparation If the company publishes adjusted operating profit or similar measures, prepare a table showing how they are derived from operating profit.

6. References

Source Document Link
This blog IFRS 18, Part 1 Operating, Investing and Financing Categories and the New Operating Profit
IFRS Foundation IFRS 18 standard page ifrs.org, IFRS 18
SAP Help Portal Manage Financial Statement Versions (OB58) help.sap.com

Korean version of this post: blog.naver.com/jeonnow/224414667616

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