Education and training program in the hospital APR.pptx
4403 asug sap_presentation
1. Learn how to gain enhanced analysis capability
with US Eliminations in SAP BPC
Paul Rafferty, eBay PayPal
Vish Arunachalam, Perceptive Technologies
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2. Real Experience. Real Advantage.
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2
Today’s speakers
Paul Rafferty
SAP Functional Lead
eBay PayPal
prafferty@ebay.com
www.ebayinc.com
Vish Arunachalam
Principal, EPM AdvantageFinance
Perceptive Technologies
vish@perceptinc.com
www.perceptinc.com
AdvantageFinance
3. Real Experience. Real Advantage.
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3
Learning Points
Learn what it takes to enable enhanced analysis
capability with US eliminations in BPC
Get real-world tips and lessons learned with designing US
Eliminations in BPC
Understand typical challenges faced during intercompany
elimination analysis while using US eliminations in BPC
4. Real Experience. Real Advantage.
[ SAP Components & Application Integration
EPM Legal and Managerial
Consolidations BPC NW
BW- Data storage, Infoproviders,
Meta Data and Master Data
ECC - ERP NonSAP Data
Planning,
Analysis and
Reporting
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5. Real Experience. Real Advantage.
[ BPC NW Implementation Highlights
Legal consolidation primarily company code based
Managerial and Segment reporting handled using profit centers
Reduced IC Elim accounts with uniformity across company codes
Currency translation for FASB 52 compliance handled in SAP ECC
All reported data and master data loaded from ECC via BW to BPC
Provided enhanced journal posting capability (multi-currency/ledger)
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6. Real Experience. Real Advantage.
[ Intercompany US Elimination: Basics
When reporting the financial results of a group of entities,
BPC identifies Intercompany activities and balances and
posts entries so these activities and balances are fully
eliminated when looking at the overall results for the
group
Intercompany elimination entries should be reflected only
in groups in which both the entity and the partner entity
are part of the group
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7. Real Experience. Real Advantage.
[ US Eliminations
BPC US Elimination process addresses simple
intercompany requirements in financial application, where
a full legal consolidation application is not required
Multiple lower level legal entities related data is eliminated
at first common parent
Consolidation Task “US widely used Intercompany
Elimination” uses:
Process Chain /CPMB/IC_ELIMINAT ION
Script Logic ICELIM.LGF
Business Rule Table US Elimination
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8. Real Experience. Real Advantage.
[ US Eliminations - Prerequisites
The application must include a dimension of type I,
Intercompany
The Intercompany dimension must include the property
ENTITY, whose values are entity names
The account dimension must include the property
ELIMACC, whose values are account names
The entity dimension must include the property ELIM,
whose values are Y or blank.
The appropriate business rule table and DTS must be set
up
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9. Real Experience. Real Advantage.
[ Illustration: IC Elimination
All eliminations between X, Y, M and N are eliminated at
Elimination Entity A
Reconciliation is a challenge when too many children roll up
under a single parent elimination entity
Parent A
Elimination Entity A
Legal entity X
Legal entity Y
Legal entity M
Legal entity N
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10. Real Experience. Real Advantage.
[ Illustration: IC Transaction – Basic Design
Entity Datasource Period Account
Trading
Partner
Amount
$
X INPUT 2011.SEP 122000 Y 50000
Y INPUT 2011.SEP 250000 X -50000
M INPUT 2011.SEP 122000 Y 23000
Y INPUT 2011.SEP 250000 M -23000
N INPUT 2011.SEP 122000 Y 5000
Y INPUT 2011.SEP 250000 N -5000
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Note: A/c 122000 IC Accounts Receivable | A/c 250000 IC Accounts Payable
11. Real Experience. Real Advantage.
[ Illustration: IC Elimination – Basic Design
Entity Datasource Period Account
Trading
Partner
Amount
$
A ELIM 2011.SEP 122000 Y -78000
A ELIM 2011.SEP 250000 X 50000
A ELIM 2011.SEP 122000 M 23000
A ELIM 2011.SEP 250000 N 5000
Note: To simplify scenario, the ELIMACC records are excluded in above table
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Granularity is lost post IC elimination!
12. Real Experience. Real Advantage.
[ New approach to IC Elimination
In the Financial Application data model, add an additional
user defined dimension for Entity
Normally when eliminations happen, the granularity is
retained at Elimination Entity and Trading Partner
As there’s an additional user defined dimension for Entity,
data is aggregated by Elimination entity, Trading Partner
and also by the additional user defined dimension for
Entity
A simple additional dimension in data model saves
tremendous effort later on during reporting design and
analysis
Don’t lose granularity post IC elimination!
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13. Real Experience. Real Advantage.
[ Illustration: Intercompany Transaction - New
Entity Datasource
Z
Legal
Entity
Period Account
Trading
Partner
Amount
$
X INPUT X 2011.SEP 122000 Y 50000
Y INPUT Y 2011.SEP 250000 X -50000
M INPUT M 2011.SEP 122000 Y 23000
Y INPUT Y 2011.SEP 250000 M -23000
N INPUT N 2011.SEP 122000 Y 5000
Y INPUT Y 2011.SEP 250000 N -5000
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Note: Data Model includes additional user defined dimension Z Legal Entity
14. Real Experience. Real Advantage.
[ Illustration: IC Elimination – New
Entity Datasource
Z
Legal
Entity
Period Account
Trading
Partner
Amount
$
A ELIM X 2011.SEP 122000 Y -50000
A ELIM Y 2011.SEP 250000 X 50000
A ELIM M 2011.SEP 122000 Y -23000
A ELIM Y 2011.SEP 250000 M 23000
A ELIM N 2011.SEP 122000 Y -5000
A ELIM Y 2011.SEP 250000 N 5000
Note: To simplify scenario, the ELIMACC records are excluded in above table
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15. Real Experience. Real Advantage.
[ Demo
BPC NW with
Basic US elimination and
US elimination with enhanced analysis enabled
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16. Real Experience. Real Advantage.
[ Result when enhanced analysis is enabled
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Result when enhanced analysis is not enabled
Note: Extract of BW Data in CPMB info cube shown to illustrate granularity of data under both scenarios
17. Real Experience. Real Advantage.
[ Enhanced Analysis works with managerial
consolidation too!
User defined dimension can be added in similar manner
for managerial consolidation too
Additional user defined dimension can be added for profit
center or segment or any such managerial entity, as
applicable
Ensure that the desired data granularity for elimination is
achieved by calibrating data model to suit analysis needs
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18. Real Experience. Real Advantage.
[ This can be achieved in EPM BPC 10 too!
US Elimination in BPC 10 works in similar manner
Adding additional user defined dimension for Entity will
allow retention of granularity at Elimination Entity, Trading
Partner and User Defined Entity
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19. Real Experience. Real Advantage.
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Best Practices
IC Reconciliation is often a challenge in close process,
address this upfront
Consider post IC elimination review and analysis process
and pain areas as critical input for designing optimal data
model for BPC consolidation
Consider all possible dimensions required for
Consolidation (Legal and Management)
What views of data do you need supported at the underlying
ledger?
Consider system performance implications with adding
dimensions?
Define and activate all potentially required dimensions on
day one to avoid complex and costly changes later
20. Real Experience. Real Advantage.
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Key Learnings
Deficiency in data model could adversely impact close
process
Facilitate reconciliation by addressing granularity of IC
Elimination data
Don’t lose granularity post IC elimination. More detail
and granularity is appropriate
Optimal data model for consolidation will minimize
reporting and analysis challenges during financial close
22. Real Experience. Real Advantage.
[
Paul Rafferty
SAP Functional Lead, eBay PayPal
prafferty@ebay.com
Vish Arunachalam ACA
Principal, EPM AdvantageFinance , Perceptive Technologies
SAP Certified BPC Elite | linkedin.com/in/arunvis
vish@perceptinc.com | www.perceptinc.com/adfin
Thanks!
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23. Real Experience. Real Advantage.
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[
] Thank you for participating.
SESSION CODE:
4403
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