What steps should a financial analyst take to create a consolidated financial report in SAP Analytics Cloud?

Creating a consolidated financial report in SAP Analytics Cloud requires several considerations to ensure accuracy and clarity in presenting financial information from multiple sources. Applying currency conversion is a critical step in this process because financial data often comes from various regions that may use different currencies.

By applying currency conversion, the financial analyst ensures that all values are presented in a consistent currency, allowing for an accurate comparison of financial performance across different units or divisions of a company. This step is essential for obtaining a true picture of financial standing and ensuring that reported figures are meaningful and reliable for stakeholders.

While implementing cross-model data access, standardizing data formats, and using calculated columns for adjustments are all important elements in data handling and reporting, they serve different purposes in the context of financial analysis. Cross-model data access facilitates integration of data from different models, standardizing data formats helps ensure data integrity, and calculated columns allow for applying various adjustments needed for analysis. However, without first addressing currency discrepancies, the consolidated report may not accurately reflect the financial realities, making currency conversion a foundational step for effective financial reporting in a multinational context.