About semantic tags

[yahaha]

Hi Dear experts,

Regarding the scope of semantic tags, we would like to inquire about the following:
① What functionalities can be achieved by configuring semantic tags in accounting items? 

② Does the FX semantic tag have other applications besides selecting accounts subject to foreign currency valuation? (★Is it safe to remove accounts not requiring foreign exchange valuation?)

Please suggest.

Thank you very much.Best Regards!

SAP S/4HANA Cloud Public Edition Finance 

[Jeremy_Deo]

Hello dear user,

And thank you for asking your questions in the SAP Community blog.

Here are some elements to directly answer your questions :

1.What functionalities can be achieved by configuring semantic tags in accounting items?

Semantic tags in SAP S/4HANA Cloud are used to classify G/L accounts based on financial reporting and operational requirements. Configuring them allows for:

Global Reporting Harmonization: enables consistent reporting across company codes and charts of accounts.

Mapping to Financial Statements: useful for generating reports like balance sheets, P&L, and statutory financials.

Integration with SAP Group Reporting: semantic tags help align operational G/Ls with consolidation charts for group-level reporting.

Scenario-Specific Selection: for example, accounts tagged with “FX” are automatically selected in foreign currency valuation processes.

2.Does the FX (Foreign Exchange) semantic tag have other applications besides selecting accounts for foreign currency valuation?

The FX semantic tag identifies accounts to be included in foreign currency valuation jobs.

Yes, it has a key operational purpose: only accounts with the FX tag are considered during currency valuation (e.g., during month-end).

If a G/L account doesn't require FX valuation, you can remove the FX tag safely. However, do so only after confirming that the account won’t be subject to valuation in future transactions.

If you need more details about the Semantic Tags, here’s a further information on it following the link below :

Semantic Tags

I hope this will help answer your questions.

Best regards,

Jeremy