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Overview
• The TELUS solution – Background– Alignment of the Product and
Revenue Account Hierarchies– Enhancements– Derivation Strategy– Revenue Interface– Reconciliation
I found the
difference!
Who Cares?
We have apassion for growth
Reconciliation by Company Code.
Reconciliation by Profit Center
Reconciliation by Revenue Account
Finance, Regulatory, and Marketing all provide evidence to the regulator.
How we got here
The numbers are all different!!!!
Which figure is correct?
We have the courage to innovate
Billed vs Earned View,
Product Definition,
Customer Definition,
Timing.
Why can’t there be a central source for all revenue information?
A Central Source of Revenue Information
Integration of Management and Financial Reporting.
We believe in spirited teamwork
PCA and PA Reporting
GL Revenue Account Structure
GL Revenue Account Structure
Product Hierarchy
Product Hierarchy level 1 to 3
EPP1 – Categorization of Portfolio Groups based on service capability or functionality.
Portfolio Group (EPP2) – Categorizations of Portfolio Sub-Groups that differentiates functionally within EPP1, while still aligning with external financial reporting structures.
Portfolio Sub-Group (EPP3) – Categorizations of Product Portfolios as viewed by Telecommunications/IT sectors industry analysts
Product Hierarchy level 4 to 6
Portfolio – A grouping of Product Families with similar application or functionality
Family – A product/service managed by a Product Manager and recognizable by a customer.
Line – A sub-Family definition of a product/service specific to that product/service.
Product Hierarchy - Materials
Material Code/Product – 2 material types in SAP
•SAP inventory or billing materials
•SAP materials representing external non-SAP billing system codes
Material Master
Material Master
Portfolio/Family/Line
Data Model
Enterprise Product Primeship
Portfolio Group
Portfolio Sub Group
Portfolio
Family
Line
Material
Revenue AccountRevenue Account
Regulatory GroupingsRegulatory Groupings
Master Data Maintenance• Corporate Marketing maintains the
Product and Customer Hierarchies and maintains the Material Master for products and services billed outside of SAP.
• Corporate Accounting maintains the Revenue Account , the Revenue Account Hierarchy, the relationship between the Product Hierarchy and the Revenue Accounts.
• Supply maintains the Material Master for SAP Inventory and Billing.
Revenue Interfaces
Create MIC Download
Revenue InterfacesRevenue Interfaces
Revenue Items
Revenue Items
MIC Table
Mass MarketBilling
Systems
Mass MarketBilling
Systems
SAP FI/PCA
SAP COPA
SAPMaterialMasterSAP Derivation Tables
Data Warehouse
Direct FI Entries
Pulled from FI into COPA
Direct FI Entries Edited
Derivation Strategy
Derivation Strategy
Consolidated Settlement
– In the TELUS configuration an object can be posted to by Direct FI entries and SD Orders and subsequently settled to COPA as a single line item. This typically occurs for SM Orders, Internal Orders and Revenue Projects.
– In these cases the link between the Revenue Account used in the posting to the object is lost when settlement to COPA takes place.
Split program
• For each object with consolidated settlement.– Reverse the associated PA Posting.– Repost the PA entries with one line for each
PCA Revenue Account posting .
Reconciliation formula
• Unsettled Amounts– PA will be understated in the current period
and overstated in the subsequent period.– In order for revenue to reconcile by
Revenue Account all revenue objects must be settled in the current period.
– In order for revenue to reconcile by CC, TP, PC, and Plant the unsettled amounts must be posted to a WIP Offset Account.
Reconciliation formula
+ PCA Amount + Previous WIP amount+ Previous Unsettled Amount - Current WIP Amount- Current Unsettled Amount+ PA Amount
PCA – PA Variance 000
1,000,000 - cr 100,000 + dr 100,000 - cr 300,000 + dr 300,000 - cr1,000,000 + cr
Reconciliation formula
+ PCA Amount* + Previous WIP amount+ Previous Unsettled Amount - Current WIP Amount- Current Unsettled Amount+ PA Amount
PCA – PA Variance
1,000,000 - cr 100,000 + dr 100,000 - cr 300,000 + dr 320,000 - cr1,000,000 + cr 20,000 - cr
* Includes all the Revenue Accounts including the WIP Offset Account
Reconciliation Errors
• Unsettled Objects
• Consolidated Settlement
• Direct FI Postings with no valid object
• PCA Only re-postings
• PA Only postings.
• Changes
Correction Process – COPA Only
Account based COPA
• Ensures postings are made to FI and PA at the same time.
• Intended for reconciliation to a highly aggregated level.
• Supports reconciliation by Cost Element rather than Revenue Account.– Secondary Cost Elements are used for
settlements.
Reconciliation System Design
Reconciliation Data Base
BSEG GLPCA CE1….
Recon Tools - Summary
Recon Tools by Account
Recon Tools PC/Act
Reconciliation Details
The Detail Analysis Tool retrieves data directly from BSEG, GLPCA, and CE1….
Reconciliation Details
SAP Development Request
• Include the revenue account in cost based COPA.
• Include a partner revenue account for header level settlement.
– Normalize the PA segments so there is a PA line item for each PCA revenue line item.
We embrace change and initiate opportunity
ASUG Support
– Through the Finance Influence Council submit your request for an enhancement to R3 to include the Revenue Account in Cost Based COPA.
Thank you for attending!Please remember to complete and return your evaluation form following this session.
Session Code: 1711
