BPC Consolidation
Transcript of BPC Consolidation
S S Reddy / SAP EPM Solution Advisor Project Management Office ,June 2013
SAP EPM Consolidation
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Agenda
• SAP Business Planning and Consolidation Vision
• SAP Business Planning and Consolidation Suite
• SAP Business Planning and Consolidation Types
• SAP Business Planning and Consolidation Deployment Services
• Questions & Answers
SAP BPC Consolidation
Business consolidations are usually the process of combining multiple business Segmentation or two organizations (merger) into a single business operation. Consolidations may result in a completely new entity being created, or an increase in the size of current business facilities. Organizations may also go through a merger and acquisition process, which is a different form of business consolidation. Mergers occur when one company buys another in an attempt to consolidate market share and increase ROI.
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SAP BPC Consolidation mission
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New challenges with the BPC Consolidation …
Business Cases Challenges Operation Case Challenges• Application portfolio consolidation(Group Entities)• Custom application development• Extend the business value of IT consolidation platform investments• Enable new/enhance incumbent shared business services• Complexity to Improve user experience quality and consistency• Seamlessly integrate mobility, social, cloud-based Business features (Ecommerce)
• Centralize service Business Process• Post-acquisition standardization• Break down silos between teams• Global consistency/ improve localization• Reduce cost & complexity• Increase visibility into business services• Infrastructure consolidation & relationships between CIs• Improve resource management
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Lacking of Key Business Challenges- Consolidation Execution not aligned with Strategy (Flexibility)
Strategy not communicated clearly (Decision) Individual objectives not aligned with strategy Poor measurement, and no corrective actions
Ineffective Decision Making Processes(Stake Holder ) Decisions delayed, or made on ‘gut feel’ only Key stakeholders not involved –Challenges in Product Solid information only available to small ‘elite’
Increasingly Complex Operational Environment Lack of insight into customer behavior and trends( Invention) Opportunities frequently missed ( SWOT & PEST )
SOX-Compliance Requirements Ownership for transparency(Internal/External Business owners ) Increasing criticality of trustworthy Business data (Subsidiaries)
Budget Constraints(New Business Merge’s/Acquisition) Need to do more with less, and need to justify expenditures
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EPM Report Structures
SAP Financial Consolidation Team Structure
EPM Architect
EPM Solution Architects
BPC Administrator
BusinessKey Users
Business Key Users
BusinessKey Users
IT PROCESS BusinessP
roje
ct M
atu
rit y
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Technical Flow of SAP BPC Financial Consolidation Process
DATA VALIDATION , SEGEMENT OF BUSINESS REPORTING
CONSOLIDATION PREPARATION
DATA LOADING
CURRENCY TRANSLATION
RUN LEGAL CONSOLIDATION
CONSOL USERCONSOL MGRCORP ACCCORP ERP-BW
CONSOL USERCORP ERP-BW
CONSOL USER
CONSOL USER
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SAP BPC Consolidation Preparation (Legal/Statutory)
1. Master Data Maintenance : Maintain legal entity Maintain GL account mapping Maintain ownership Maintain currency exchange rate
2. Monthly consolidation : Load financial data from non-SAP source Load financial data from SAP ECC 6.0 source Load financial data from SAP R/3 4.6 source Perform BPC consolidation
SAP BusinessObjects Planning Consolidation Suite
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SAP BPC Consolidation Methods - IFRS Rules Consolidation Methods Currency Conversion • Full Consolidation 1.Balance Sheet Closing Position at Closing rate•Proportionate Consolidation (Equity at Historical Value) •Equity Method 2. Balance sheet movements at average rate
Scope Changes 3. Income Statement at Average rate Acquisitions & Loss of Control Equity Transactions Step Acquisitions Internal Merges
Automatic adjustments (With associated audit IDs)• Elimination of Intercompany reciprocal operations & Internal Dividends (ELIM,DIV)• Goodwill booking( on the basis of manual declaration) (GW,FGW)• Elimination of Investments in Subsidiaries( INV)• Calculation of the currency translation adjustments (CTA)• Calculation of non-Controlling interest(NCI)
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ELIMINATING ENTRIES First Subsequent Period (Equity Method)
Impact of current equity method entries Ignore any impairment of goodwill
Assignment of income to no controlling interest
Investment account – Stockholders’ equity of subsidiary Including identification of non controlling interest Identification of differentialAllocation of differentialDepreciation/amortization of appropriate differentials Impairment of goodwill
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Execute Copy Opening of balances(f00/f99)
Opening BalancesDM Package – EPM Excel
Execute the Package
BPC Consolidation
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WORKFLOW
SYSTEM
EXT
Import Data from BPC BW Staging Cube to BPC
Error?
Execute Legal Consolidation
Legal ConsolidationDM Package EPM Package
Execute the Package
Subsidiaries/Group Finance Subsidiaries/
Group Finance
Update GL Mapping
Multi Cube
Load Transaction Data from BW InfoProvider
Execute Currency Translation
FX RestatementDM Package EPM Excel
Execute the Package
Group Finance /IT Support
Yes
No
IT-BW team
Posting of Journals
Journals-BPC Web
Input Template/ Journals
End
Subsidiaries/Group Finance
Subsidiaries/Group Finance
BPC Consolidation Flow
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Temp. Cube
Mapped Cubewith custom queries
SAP BW
Mapped Cube
SAP BPC
Data Flow From Source to BPC
SAP 4.6C
SAP ECC6
Non SAP
Currency conversation
ICMatching
IC Elimination
Legal /Statutory Report
Reports
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Magnus Consulting 16
Consolidation Checklist Time Users
1.1 Ownership Percentage - per approved Ownership Maintenance form
Monthly Corp Acct
1.2 GL Accounts Mapping- per approved GCOA Maintenance form
Monthly Corp Acct
1.3 Currency Translation Rate Monthly Corp Acct
1.4 Opening Balance- to be uploaded in SAP BPC for new fiscal year
Yearly Corp Acct
1.5 Maintain Cut-off date for Consol run Yearly Corp AcctCorp ERP-BW
1.6 Prepare TB Template - for non-SAP & SAP (non-LC) entities
Monthly Consol User/Mgr
1.7 Accounting System Migration• Non-SAP to SAP ECC6• SAP 4.6 to SAP ECC6
As required (must cutoff at month-end)
Corp AcctConsol User/MgrCorp ERP-BWMagnus
1.8 SAP BPC & BW user maintenance As required Corp ERPCorp Acct
SAP EPM CONSOLIDATION(Legal/ Management) PREPARATION
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Key Tasks after Go Live
Level 1: Corporate Accounts Team
SAP BW Maintenance:-Provide the closing dates for fiscal periods of 2014 to Corporate IT Team to schedule the batch jobs based on the closing dates-Approve and communicate to Corporate IT Team to maintain the GL account mapping in BW-Approve and communicate to Corporate IT Team to maintain the legal entities in BW-Approve and communicate to Corporate IT Team to maintain the user ids and authorization profiles.
SAP BPC Maintenance:-Approve and communicate to BPC users for changes in Group GL accounts-Maintain new or changes (Merge/Delete) in the Group GL accounts-Maintain new or changes in the legal entities-Maintain the consolidation group -Maintain foreign currency exchange rates-Maintain intercompany processes change-Approve and communicate to Corporate IT Team to maintain the user ids and authorization profiles.
Level 2: Corporate IT Team
SAP BW Maintenance:-Maintain new or changes in GCOA/GL account mapping -Maintain new or changes in legal entities-Transport configuration changes from SAP BW DEV to PRD-Create and monitor ad-hoc schedule for specific batch uploads for data transfer from SAP ECC6.0, 4.6C and non-SAP systems (including Financial data)-Create and monitor ad-hoc requests (e.g. during quarterly closing) for specific batch transfer from SAP BW to BPC-Troubleshoot errors in batch uploads -Maintain user ids and profiles for authorization-Install SAP EPM Bex Analyzer in users’ desktops to access the SAP BW queries.SAP BPC Maintenance:-Transport configuration changes from SAP BPC DEV to PRD-Troubleshoot errors in batch uploads -Maintain user ids and authorization profiles-Install SAP BPC client in users’ desktops to access the SAP BPC.
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Roles Workflow SAP BW System
Consol Manager/User
Corp Accounts
Corp ERP-BW
Data Loading in SAP ECC ---BW
Monthly 18
BW Upload Text FileData upload &
Verification
Display query in
BeX Analyzer
TB template
Monitor data loading Display query in
BeX Analyzer
SAP 4.6C
SAP ECC
TB Data
source?
BW Data Extraction
(Schedule job)
Non-SAP enities
SAP entities
Error Handling Error notification
User manual• BW Upload Text File
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BPC Logon & Navigation
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Financial Consolidation----Run Legal ConsolidationRoles Workflow SAP BPC System SAP BW System
Consol Manager/User
Corp Accounts
Corp ERP
Perform Legal Consolidation
Notify Corp Accts the status of consol
run
Verify the consol results
Execute Currency
Translation
Run Legal Consolidation
Journal Posting for adjustment
Execute BPC Reports
Execute BPC ReportsUser manual• Execute currency translation• Run legal consolidation• Journal entry• Execute BPC report
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SAP BPC –Financial Consolidation /Forecast Strategy
Working Approach :-Forecast Prototype • Provide a monthly input interface per indicator • Closed periods are loaded by actual values, these periods are not editable • For non closed periods, forecast can be provided • Manage a validation process between hierarchical levels Functions input help : o Loading file o Automatic Initialization from previous forecast or updated budget o Automatic distribution based on updated budget data weight
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SAP EPM Consolidation- Task Execution ( Reports )
• The business process to consolidate the financial statements of group company and its subsidiaries.
• The financial operations in group company maintains the foreign currency rates, ownership information, and copy the opening balance from last period to current period.
• The financial operations in subsidiaries upload financial statements, including balance sheet, income statement, and statement of stockholder’s equity. The financial specialists in subsidiaries also input the intercompany transaction data.
• After data is submitted, the financial managers in subsidiaries approve data and set work status to approved.
• Financial specialist in group company runs the foreign currency translation. The intercompany transaction data will be reviewed in IC Matching application. Journal entries need to be entered if any adjustment entries are required.
• In group company run consolidation (Logics) , then check the consolidation working sheet, he also built/use the validation report to review consolidation result.(Review the consolidated balance sheet, income statement).
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Financial Consolidation Benefits –SAP BPC
Consolidate data quickly from multiple general ledgers
Consolidate data from various business perspectives and by multiple structure versions (Current year, previous year, proposed)
Carry out automated adjustments including minority, inter-company, recurring, etc.
Review results with and without adjustments( F00/F99/F15) .
Synchronized income statement, balance sheet, and cash flow statements.
Upload financial statements of subsidiaries
Input intercompany transaction data
Run foreign currency translation
Review intercompany transaction data through ICMatching application
Run consolidation program and confirm consolidation working sheet
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Contact information:
S S Reddy SAP EPM Solution [email protected]
Thank you…!!!