SAP business planning & consolidation
overview
31st July, 2015
Agenda
Key financial terms
Financial statements
SAP BPC objects
Business planning process in BPC
Financial consolidation in BPC
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SAP Business Planning and Consolidation Overview
Key financial terms
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SAP Business Planning and Consolidation Overview
General ledger
Complete record of all business transactions of a company, and is used to aggregate
information into the financial statements of the company.
Comprised of all the individual accounts (represented by GL codes) needed to record
the assets, liabilities, equity, revenue, expense, gain, and loss transactions of a
business
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SAP Business Planning and Consolidation Overview
Legal entity
An organizational unit for which financial statements must be created.
Example of Legal entities structure
ABC Tech
INDIA
ABC
UK
ABC
UAE
ABC
Germa
ny
ABC
Canada
ABC
Service
s Ltd,
India
AB
C
BV,
NL
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Proyec
ta
ABC
Ins.
Tech
UK
ABC AG
Switzerl
and
ABC
Media
Tech.
JV
60%
Own
ABC
Singap
ore
ABC
USA
NSS
India
ABC
Healthcar
e
Technolog
ies Inc.
ABC
Japan
ABC
Austral
ia
SAP Business Planning and Consolidation Overview
ABC
GIS
India
ABC
Manila
Branch
HK
Branch
Types of accounts
Assets
Items of value owned by a company (ex: Cash, Inventory, etc.)
Liabilities
Obligations of the company to transfer something of value (an asset ) to another party; Acts as a
source of fund for the company (ex: Loans, Bonds, etc)
Equity
Owner's value in an asset or group of assets. Value of the assets contributed by the owners
Equity = Assets - Liabilities
(Also known as Net Worth, Capital & Shareholders Equity)
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SAP Business Planning and Consolidation Overview
Types of accounts
Revenue
Money the company earns from its sales of products or services, and interest and dividends
earned from marketable securities
Expenses
Money the company spends to produce the goods or services that it sells (e.g. office supplies,
utilities, advertising)
Profit (or Loss) = Revenue Expenses
(Also known as Net Income and Bottom Line)
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SAP Business Planning and Consolidation Overview
Debit (Dr) / Credit (Cr) entries
Debits and Credits are entries made in account ledgers to record changes in value resulting from
business transactions.
A debit is an accounting entry that either increases an asset or expense account, or decreases a
liability or equity account. It is positioned to the left in an accounting entry.
A credit is an accounting entry that either increases a liability or equity account, or decreases an
asset or expense account.
Example : The owner brings cash from his personal account into the business
Cash (an asset) is increased thus debit Cash
Owner capital (an equity) is increased thus credit Owners' Capital
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SAP Business Planning and Consolidation Overview
Trial balance
Report run at the end of an accounting period, listing the ending balance in each account
Primarily used to ensure that the total of all debits equals the total of all credits
Acts as the first step in the preparation of financial statements. It is a working paper that
accountants use as a basis while preparing financial statements.
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SAP Business Planning and Consolidation Overview
Financial statements
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SAP Business Planning and Consolidation Overview
Balance sheet
A statement of the assets, liabilities, and capital of a business or other organization at a particular
point in time
Also known as statement of financial position
Gives the snapshot of a companys financial condition
A standard company balance sheet has three parts: assets, liabilities, and equity
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SAP Business Planning and Consolidation Overview
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SAP Business Planning and Consolidation Overview
Income (P&L) statement
A financial statement that summarizes the revenues, costs and expenses incurred during a specific
period of time - usually a fiscal quarter or year.
Also known as statement of financial performance or statement of operations;
Shows managers and investors whether the company made or lost money during the period being
reported.
A standard company income statement is divided into two parts : income & expenses
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SAP Business Planning and Consolidation Overview
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SAP Business Planning and Consolidation Overview
Cash flow statement
A statement that provides aggregate data regarding all cash inflows a company receives from both
its ongoing operations and external investment sources, as well as all cash outflows that pay for
business activities and investments during a given period
Also known as statement of cash flows and is concerned with the flow of cash in and out of the
business
Shows how changes in balance sheet accounts and income affect cash and cash equivalents, and
breaks the analysis down to operating, investing and financing activities
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SAP Business Planning and Consolidation Overview
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SAP Business Planning and Consolidation Overview
Schedule VI reports
Designed by Ministry of Corporate Affairs; Applicable for all Balance Sheet made after 31st March,
2011
Amalgamation of Balance Sheet, P&L Statement, Cash Flow Statement and various notes to
accounts required to support the numbers in these financial statements
Usually published at the end of financial year by every listed company while declaring their year end
results
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SAP Business Planning and Consolidation Overview
SAP BPC objects
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SAP Business Planning and Consolidation Overview
Environment
Starting point to build models in SAP BPC
Group of models; Set of dimensions that may be shared amongst its models
Functional area designed to include the models associated with a business process
(Planning/Consolidation)
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SAP Business Planning and Consolidation Overview
Model
A functional unit used for a particular purpose
Example : A model for sales applications and another model for head-count planning.
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SAP Business Planning and Consolidation Overview
Dimensions
Dimensions represent the master, text, and hierarchy data for each of the business entities (e.g.,
accounts, company codes, and categories).
Are required for mapping the complete data from backend (usually ECC) in BPC cubes
Dimension properties
Provide additional meaning to the dimension
Example: an account dimension can include an account type property to indicate the type of
account (whether it is an income account or an expense account).
Can be used as selection/filter criteria while reporting
Dimension members
Each dimension member record represents master, text, and hierarchy data associated with
the key of a dimension.
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SAP Business Planning and Consolidation Overview
Rules
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SAP Business Planning and Consolidation Overview
Business planning process in BPC
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SAP Business Planning and Consolidation Overview
Planning across different lines of
business
Finance
Financial Planning
Financial Budgeting
Enterprise Strategy
Management
Profitability and Costing
Analysis
Human Capital
Compensation Planning
Strategic Workforce
Planning
Operations
Supply Network Planning
Production Planning and
Detailed Scheduling
Corporate
Strategy
Capital Expenditure
Planning
Maintenance
Budgeting
Investment Planning
Sales & Marketing
Sales Order Management
MRP/Resource Planning
Resources
Key Performance Indicators
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Trade Promotion
Management
Global ATP/CTP
Campaign Management
APO/NW BW
Trade Fund Management
SAP Business Planning and Consolidation Solution Overview
Business planning process
Opening Activities
Load previous year actuals data
Upload current rates
Perform Business Planning
Revenue Planning
Quantity planning
Rate Planning
Direct cost planning Linked to the quantity to be produced
Indirect/Operational cost(OPEX) not linked directly to the production
Capital expenditure planning (Capex)
Human resource expenses planning
Headcount planning opening balance, recruitment, attrition
Payroll cost planning
Currency Conversion
Generate Financial Statements
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Consolidation Tool s overview for Infosys
Planning process & BPC objects
Opening Activities
Load previous year actuals data
Upload current rates
Perform Business Planning
Revenue Planning
Quantity planning
Rate Planning
Direct cost planning Linked to the
quantity to be produced
Indirect/Operational cost(OPEX) not
linked directly to the production
Capital expenditure planning (Capex)
Human resource expenses planning
Headcount planning opening
balance, recruitment, attrition
Payroll cost planning
Currency Conversion
Generate Financial Statements
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Flat File Load / data extract from BW
In Rates Model; Flat File Load / Input
template
Presentation title
User input through Input templates
Perform calculations using logic
scripts / member formulas / BADIs
Currency Conversion Business Rule
EPM reports
Business planning activities affect on financial
statements
ABC Company
Statement of Profit & Loss
Revenues
Cost of Sales
Gross Margin
Expense
Planning
Module
$5,000
3,000
2,000
Module
Operating
400
Payroll
300
SG&A
250
Depreciation
50
Operating Profit
1,000
Operational
Headcount
S&OP
Planning
Module
Application
Interest Expense
Net Income
IT/ Project
Planning
Module
50
$950
Liquidity
Planning
application
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Sales
Planning
SAP Business Planning and Consolidation Solution Overview
B
Capital
Planning
Module
Financial consolidation
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SAP Business Planning and Consolidation Overview
Financial consolidation & reporting in a
business
Group Financial
Consolidation
Financial
Management
review
Data submission
to GROUP
rs
e
d
ol
h
areControlling
Sh
tive ent
u
ec em
x
E nag
Internal Audit
Ma
External
Financial
reporting
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dit ators
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Consolidations
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NC
A
IN
GL
AR
Sales
ry
a
i
sid
b
Su A
Local Close
cycle
Presentation title
GL
AR
Sales
ry
a
i
sid
b
Su B2
Intercompan
y
Reconciliatio
n
Financial consolidation process
Opening Activities
Carry Forward Balance
Currency rates
Update Ownership
Data collection
Load SAP Data
Load non SAP Data
Input Notes to Account Data
Report Individual Schedule VI Financial statements
Group Level Activities
Run Currency conversion
Run Controls
Run Consolidation
Submit Journal Entries
Review, Finalize consolidation
Publish Final books of account
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SAP Business Planning and Consolidation Overview
Consolidation process & BPC objects
Opening Activities
Carry Forward Balance
Currency rates
Update Ownership
Data collection
Load SAP Data
Load non SAP Data
Input Notes to Account Data
Report Individual Schedule VI Financial
statements
Group Level Activities
Run Currency conversion
Run Controls
Run Consolidation
Submit Journal Entries
Review, Finalize consolidation
Publish Final books of account
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Carry Forward Business Rule
In Rates Model; Flat File Load / Input template
In Ownership Cube; Flat File Load & Ownership Manager
Flat File Load / data extract from BW
Flat File Load / Input Template
Input Template
EPM 10 reports
Currency Conversion business rule
Validations/Controls in Controls Monitor
Elimination Business rule; Through DMP or Consol Monitor
Journal Entries
Presentation title
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SAP Business Planning and Consolidation Overview
Thanks
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SAP Business Planning and Consolidation Overview
