BPC Consolidation

S S Reddy / SAP EPM Solution Advisor
Project Management Office ,June 2013
SAP EPM Consolidation

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2
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.

SAP BPC Consolidation mission

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

6© 2013 SAP AG or an SAP affiliate company. All rights reserved.
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

EPM Report
Structures
SAP Financial Consolidation Team Structure
EPM Architect
EPM Solution
Architects
BPC
Administrator
Business
Key Users
Business
Key Users
Business
Key Users
IT PROCESS Business

Technical Flow of SAP BPC Financial Consolidation Process

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

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)

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 differential
 Allocation of differential
 Depreciation/amortization of appropriate differentials
 Impairment of goodwill

Execute Copy
Opening of
balances(f00/f99)
Opening Balances
DM Package – EPM Excel
Execute the Package
BPC Consolidation
14
W
O
R
K
F
L
O
W
S
Y
S
T
E
M
E
X
T
Import Data from
BPC BW Staging
Cube to BPC
Err
or?
Execute Legal
Consolidation
Legal Consolidation
DM 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 Restatement
DM 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/Gr
oup Finance
Subsidiaries/G
roup Finance
BPC Consolidation Flow

15
Temp. Cube
Mapped Cube
with 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

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 Acct
Corp 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 Acct
Consol User/Mgr
Corp ERP-BW
Magnus
1.8 SAP BPC & BW user maintenance As required Corp ERP
Corp Acct
SAP EPM CONSOLIDATION(Legal/ Management) PREPARATION

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
maintain the legal entities in BW
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
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.

Roles Workflow SAP BW System
Consol
Manager/
User
Corp Accounts
Corp ERP-BW
Data Loading in SAP ECC ---BW
Monthly 18
BW Upload
Text File
Data 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

BPC Logon & Navigation

Financial Consolidation----Run Legal Consolidation
Roles 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 Reports
User manual
• Execute currency translation
• Run legal consolidation
• Journal entry
• Execute BPC report

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

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).

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

Contact information:
S S Reddy
SAP EPM Solution Advisor
Indelasasi@gmail.com
Thank you…!!!

BPC Consolidation

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