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  • 1. BI 211 Leverage SAP BW-BPS Innovatively toReplace Pervasive Spreadsheet Applications
  • 2. Leverage SAP BW-BPS Innovatively toReplace Pervasive Spreadsheet Applications Venu Kumar Nalabothula MBA, CISA, CIA, PMP Information Systems Manager Miller Brewing Company E-Mail: vnalabothula@mbco.com
  • 3. Agenda About Miller Brewing Company Pervasive Excel Spreadsheet Applications – Microsoft Excel for Business Planning – Excel Spreadsheet Challenges – Miller Marketing Spend Tracking Challenges in the past – Miller Excel Checkbook overview Miller ―Checkbook‖ Spend Tracking/Consolidation requirements Innovative usage of SAP BW-BPS – BW-BPS Overview – BW-BPS Planning – Checkbook Application Overview – BW-BPS Analytical Reports – BW- BPS Security Considerations – BW- BPS Application Performance Suggested Strategy for replacing Critical Spreadsheets Questions  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 3
  • 4. About Miller Brewing Company A Dynamic Brewer, Employer and Partner  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 4
  • 5. Miller Brewing Company - Building Great Brands  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 5
  • 6. Miller Brewing Company - Part of a Global Brewing Force SABMiller is a leading global brewery with 149.1 million barrels in the fiscal year ending March 31, 2006 Europe Number of breweries: 19 Brands include: Dorada, North America Dreher, Pilsner Urquell, Peroni Number of breweries: 8 Nastro Azzurro, Šariš, Tri Brands include: Miller Lite, Bogatyrya, Tyskie, Ursus Miller Genuine Draft, Miller High Life, Milwaukee’s Best Africa and Asia Number of breweries: 76 Number of sorghum breweries: 29 Number of bottling plants: 17 Brands include: Chibuku (sorghum), Eagle (sorghum), Central America Kilimanjaro, Mosi, Haywards, Number of breweries: 2 Snow, St Louis, Coca-Cola, Fanta Number of bottling plants: 5 Brands include: Pilsener, South America Bahia, Suprema, Port Royal, Number of breweries: 15 South Africa Cristal (bottled water) Number of bottling plants: 9 Number of breweries: 7 Brands include: Aguila, Number of bottling plants: 10 Cristal, Pilsener, Atlas Brands include: Carling Black Label, Castle Lager, Castle Lite, Castle Milk Stout, Sterling Light, Redd’s, Brutal Fruit, Appeltiser  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 6
  • 7. Microsoft Excel for Business Planning Pros Cons Very user friendly Lack of controls Flexible and easy to learn Error rates 70-90% Platform for powerful models Inappropriate for storing data Pivot Tables ―One of the biggest holes in compliance: business-critical Excellent for personal use information held on spreadsheets,‖ Keith Bishop, Qtier 2005“Spreadsheet: No better than manual records for statutory reporting andSarbanes-Oxley compliance. Consider migrating to formal IT controlenvironment.” PWC  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 7
  • 8. Excel Spreadsheet Challenges WHY?? “…the Company concluded the severance error was the result of a failure in the operation of controls surrounding the preparation and review of spreadsheets that include new or changed formulas and concluded this situation constitutes a “material weakness,”  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 8
  • 9. Excel Spreadsheet Challenges – Contd.  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 9
  • 10. Miller Marketing Spend Tracking Challenges in the pastLack of real-time visibility into spending throughout the enterprise Reports are outdated before they arriveDifficult to see expenditures by Internal Orders, budget etc. About 300+ spreadsheets in multiple market areasInformation needed for decisions not readily available Takes too much time and effort to consolidate spreadsheets and create reportsFinance staff’s time may not be utilized to their best advantage Valuable time spent on spreadsheet maintenance and manipulation, not on value-added analysisDifficult to maintain confidentiality of the data Numerous spreadsheets need to be secured With the right information, the right decisions can be made  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 10
  • 11. Miller Excel “Checkbook” Overview (past) Checkbook is a collection of Internal Orders (IOs) assigned to a given individual budget owner.  It is a way of tracking and maintaining IO-level budget spending with sight to spending at the plan version level. Budget Owner : Budget owner/assignees are responsible for entering and updating entries in a checkbook. A budget owner may have multiple checkbooks but there is only one budget owner per checkbook. Budget owner to approve items for accrual in SAP. Sales Finance Accountant : Updates the checkbook as needed after it has been approved by the Budget Owner. Noon of 3rd workday – Sales Finance Accountant enters manual accrual entries in SAP R/3 Miller had to manage about 300+ spreadsheets (past)  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 11
  • 12. Miller “Checkbook” Spend Tracking/Consolidation requirements Roll-up capabilities by Market Area, Region & US in near real-time mode? Need for centralized built-in security? No need for 300+ copies of same spreadsheet? No need to secure 300+ folders/ 1000+ passwords / various folder permissions? Ability to access and collaborate from remote locations ? Improved usability (Web based) ? Powerful audit mechanism – tracks changes by User ID? Tracks status of updates every month? Possible to automate booking of Financial Journal Entries to SAP? Archiving of the Historical data? Centralized adjustments & rollout of changes vs. sending 360 copies of the spreadsheet to all market areas?  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 12
  • 13. BW- BPS (Business Planning and Simulation) at a GlanceModeling Planning Planning Planning Coordination Functions Interfaces Applications Investment CFO Planner Business Planning and Simulation Cost Center Sales Manager Manager BW Cubes  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 13
  • 14. BW-BPS Planning Building Blocks Data Model Cube Design, Planning levels and Packages, Plan/Actual comparison, Integration Business Logic Balance Sheet, P&L,Cash Flow, Contribution Margin, Internal Rate of Return, Depreciation methods, Key Figures (EVA,ROI, Working capital,...), Net Present Value,... Best use of Planning Functions Using the right generic core functions New application specific functions (Depreciation, Offset entry, Scoring, Time lag, Valuation,...) User Interface Using the right generic core interface (Excel InPlace, Web Interface Builder, Excel in Web) New application specific interface (SAPGUI) Reporting / Roles Queries, Web Reports, Portal Content  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 14
  • 15. BW-BPS Modeling: BW InfoCube The SAP BW Infocube is the base for North planning data Region Mid West MGD South Miller Chill Brand Lite Chicago Dallas New York Sales Office1 Selection Sales Office Chicago North Region Mid West Brand Miller Lite Characteristics Region Mid West MGD Volume xx,xxx Bbls Miller Chill South Revenue xxx,xxx US$ Lite ……. Key Figures Chicago Dallas New York Sales Office  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 15
  • 16. BW-BPS Planning FunctionsFunctions for Functions for Data Functions forSimulation Conversion/ Individual Management Calculations• Multiple Versions • Currency translation • Formulas• Planning Sequence • Unit conversion (Rolling Forecast, • Copy Validation,..)• Forecast • Delete • User-Exits• Excel Capabilities • RepostFunctions for Basic FunctionsAllocation • Manual Planning• Top down • Attach Documents Distribution• Bottom-Up• Allocations  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 16
  • 17. BW-BPS Checkbook Application Overview SAP Portal System / Process Administrators BW-BPS / Portal Maintain Maintain Maintain Maintain Users & Authorization BPS Portal roles to checkbook variables roles Administrators Maintain Maintain Regional Checkbook Cost element hierarchy hierarchy Checkbook reporting Review & Approve the Owners Budget Update Checkbook Checkbook entries entries Sales Financial Initiate Accountant Review & automatic Challenge for approval accruals process  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 17
  • 18. BW-BPS Checkbook - Adding ExpensesUsers can enter the data on the screen one row/cell at a time into the Checkbook Application. 4) Click Save 2) Type or select 3) Type an Amount values for each field 1) Insert one or more lines  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 18
  • 19. BW-BPS Leveraging Embedded Excel User InterfaceUsers can upload their entries from an Excel Spreadsheet into the Checkbook Application.Please see the white space with row numbers, where the users can paste their data from Excel.  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 19
  • 20. BW-BPS Checkbook Fiscal Year / Period SummarySummary of plan & actual by monthIncludes givebacks and transfers (Adjustments) in Adjusted Total  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 20
  • 21. BW-BPS Checkbook Month End Process No later than Noon of 2nd workday - Budget Owner must have approved the checkbook for accrual (Note: Budget Owner can approve whenever entries are complete for the month) Noon of 3rd workday – Sales Finance Accountant must have sent checkbooks to SAP ECC (R/3) for month end Fiscal Close processCheckbook Application demonstrating segregation of duties Maintenance Month End Process Budget Owner Update status Add expenses and date of Run Checkbook Entries Approve for Yes to checkbook expenses as Accrual Report accurate? Accrual needed No Review Checkbook Update (Run Checkbook Entries Yes SFA Send to R3 entries Accrual Report, accurate? Review & Challenge) No SAP R/3 Post Accrual Journal Entry & Notify SFA  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 21
  • 22. BW-BPS Checkbook Review - Accrual ReportSelect Checkbook Accrual Report (Budget Owner & Accountant normally run this report).Select Node to report on: Click Selection button for Order/ Hierarchy Node. Expand hierarchy to see Market Area, DMA or Checkbook. Click Node Name.Type fiscal year (yyyy).Click Execute button.  Check that information is accurate  If desired, print and/or Export to Excel  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 22
  • 23. BW-BPS Checkbook – Review & Approve for AccrualClick Approve to Accrual when ready to send accruals to Finance for month-end processingData associated with Process Code 0 is displayed. After approval, Process Code is changed to 1.Checkbook line items move from Budget Owner tab to SFAcct tab.After approval no line items are shown in Budget owner’s Tab as process code is changed to 1.  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 23
  • 24. BW-BPS Checkbook - SFAcct Review & UpdatePeriodically run Checkbook Status Report (10) to determinewhich checkbooks are ready for reviewFor approved checkbooks, run Checkbook Accrual Report (8) &reviewIf needed, in Checkbook Maintenance – Expenses SFAcct tab,update line items – include a comment saying what was changedand whyData associated with Process Code 1 is displayed.The SFA enters the accrual Posting date, and Clicks Send Accrual to R/3, when he/she is ready tosend accruals to SAP for month-end processing  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 24
  • 25. BW-BPS Checkbook - Send Accrual to SAP ECC (R/3)Enter Accrual Posting Date & click Send Accrual to ECC(R/3)Message log shows SAP ECC (R/3) Journal entry….#Expense lines collapsed & frozen – Avoiding double-posting to SAP ECC (R/3)After accrual processing, Checkbook line items move to Fully processed State (Process Code is changed to 2)The checkbook line items are no longer maintainable, until the month end process is completed  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 25
  • 26. BW-BPS Analytical Reports BW-BPS Reports replaced and enhanced ALL existing Excel reports. Note: The users could not readily generate consolidated reports using Excel in the past.1. Actual Spent vs Budget Compares actual spent to budget with sight to givebacks & Fiscal Year Report transfers for a given Plan version and fiscal year. Compares actual spent to budget with sight to givebacks & transfers2. Actual Spent vs Budget for a calendar year. For budget data, PF3 plan version is used for Calendar YTD Report January - March, and the selected plan version data is used for the other 9 months.3. Total Spent vs Budget Compares total spent to budget with sight to givebacks & transfers for a given Plan version and fiscal year, Fiscal Year Report Compares total spent to budget with sight to givebacks &4. Total Spent vs Budget transfers for a given Plan version and calendar period. For Calendar YTD Report budget data, PF3 plan version is used for January - March, and the selected plan version is used for the other 9 months.5. Checkbook Detail Report Shows checkbook detail based on selection criteria used to limit the rows returned. No budget data is included.6. Checkbook Budget Fiscal Provides breakout of Actual Spent by status code and Total Spent compared to budget for a given Plan version and fiscal year with sight Year Detail Report to givebacks & transfers.  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 26
  • 27. BW-BPS Analytical Reports Contd.7. Checkbook Budget Provides breakout of Actual Spent by status code and Total Spent compared to budget for a given Plan version and Calendar YTD Detail calendar year with sight to givebacks & transfers. Report Shows only the checkbook expenses that will be accrued and8. Checkbook Accrual posted to SAP – those with a status code of "A" or "PV”. Report9. Distributor Spent Provides distributor allocation detail at the IO level within a Summary Report given checkbook for the selected Plan version and fiscal year.10. Checkbook Status Report Shows the status of each checkbook indicating if it has been approved for accrual or sent to SAP for posting.11. Plan Version Summary Compares each plan version by month with sight to givebacks and Report transfers. Provides monthly summary of current fiscal year planned and actual12. Fiscal Year/Period spending against all IOs in checkbook with site to givebacks and Summary Report transfers. Same as the Fiscal Year/Period Summary tab – but can be used regardless of the number of IOs in the Checkbook.  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 27
  • 28. BW-BPS Security utilizing BPS VariablesBPS Variable Security : User XXYY has access to two checkbooks.By creating BPS variables to control Checkbook level security we had to create only 7 BW-BPS Roles.Checkbook Administrators would be able to manage security, rather than SAP Security team  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 28
  • 29. BW-BPS Security using PFCG Sample Security Roles created for the application  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 29
  • 30. BW-BPS leveraging BPS capabilities for AuditingWhen the checkbook owner approves the data for the month, a snapshot of the data is copied into the Audit Cube.Further, when SFA sends the accrual to SAP ECC, a snapshot of the data is copied into the Audit Cube.Date approved and the User ID of the approver are captured in the Audit Cube  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 30
  • 31. BW-BPS Application PerformanceApply OSS Note: 990000 BW-BPS Performance Monitoring and Analysis***(Very important – for Easy Performance Analysis)***  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 31
  • 32. BW-BPS Application PerformanceAnalysis of Planning functions  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 32
  • 33. BW-BPS Application PerformanceAnalysis of Fox Formulas  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 33
  • 34. Advantages of BW-BPS Checkbook Solution vs. Excel Challenges Roll-up capabilities by Market Area, Region & US in real-time mode Centralized built-in security No need for 300+ copies of same spreadsheet No need to secure 300+ folders/ 1000+ passwords / various folder permissions Improved usability (Web based) Powerful audit mechanism – tracks changes by User ID Automated re-allocation by distribution Possible to automate booking of Financial Journal Entries to SAP Tracks status of updates every month Built in BW Archiving Functionality Centralized rollout of changes vs. sending 300 copies of the spreadsheet   SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 34
  • 35. BW-BPS Planning Applications for Finance and Marketing  Critical spreadsheet consolidation  Accrual tracking Systems  Compensation Planning application  Head-count Planning application  Top-down Planning applications  Bottom-up planning applications  Cash forecasting systems  Month-end close systems  Expense tracking systems  Budget tracking systems  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 35
  • 36. Suggested long term strategy for replacing critical Spreadsheets – Consistent with your company’s SAP strategyIn the long term leveraging Excel for Departmental/Enterprise applications will be very costly and less reliablecompared to the implementation of an integrated solution leveraging tools like BW-BPS *** for SOX compliance. ***from NW2004s onwards leverage End User BI Integrated Planning capabilitiesTo Be powered by IS Leverage BW-BPS *** for Planning & Critical Spreadsheet consolidation Ensure SOX controls in place for critical spreadsheets As Is Development, maintenance and support of multiple Excel spreadsheets for Marketing / Sales / Finance and other divisions  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 36
  • 37. Questions Q&A  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 37
  • 38. Further Information SAP Public Web: SAP Developer Network (SDN): www.sdn.sap.com Business Process Expert (BPX) Community: www.bpx.sap.com Americas’ SAP Users’ Group (ASUG) www.asug.com Related SAP Education and Certification Opportunities http://www.sap.com/education/ Related Workshops/Lectures at SAP TechEd ’07 BI 212, SAP NetWeaver BI – Integrated Planning Implementation Experience , Lecture BI 250, Building Powerful Planning Applications with SAP NetWeaver BI Integrated Planning, Hands-on BI 220, Tips and Tricks Using SAP NetWeaver BI Integrated Planning for Cost Center Planning / Forecasting , Lecture  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 38
  • 39. ASUG and SAP: Partners in EducationASUG, the Americas’ SAP Users’ Group, is the world’s largest, customer-run community of SAPprofessionals and partners, with 45,000 individual members and 1,800 companies represented. ASUGdelivers the highest value to member companies, allowing them to maximize their SAP investments.Some highlighted benefits include: – Access to a year-round community for SAP customers and partners – Diverse mix of educational topics and events through a variety of formats – Exclusive opportunity to influence SAP future product direction – Unparalleled networking opportunities with a dynamic professional network – Unprecedented partnership with SAP – Access to ASUG Groups and ChaptersTo learn more about ASUG, visit the ASUG booth in the SDN Clubhouse, or visit our Web site atwww.asug.com.  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 39
  • 40. Q&A THANK YOU FOR YOUR ATTENTION !QUESTIONS – SUGGESTIONS – DISCUSSION please contact: vnalabothula@mbco.com  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 40
  • 41. Feedback Please complete your session evaluation. Be courteous — deposit your trash,and do not take the handouts for the following session. Thank You !  SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 41