SAP Custom Development - SAP Help Portal investment planning Based on the capital investments managed in the direct portfolio and assuming certain general external conditions, it is

© 2012 SAP AGDietmar-Hopp-Allee 16

D-69190 Walldorf

SAP Custom Development

User Guide

Version Status Date

November 19, 2012

Customer

User Guide Customer

© 2012 SAP AGDietmar-Hopp-Allee. 16D-69190 Walldorf

Title:Version:Date: November 19, 2012

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User Guide Customer

Contents

1 Overview ........................................................................................................ 51.1 Prerequisites .............................................................................................................. 5

1.2 Prior Knowledge ........................................................................................................ 5

1.3 Logon and Local Authorizations ................................................................................. 5

1.3.1 Authorizations ....................................................................................................... 5

1.3.2 Special Notes........................................................................................................ 5

1.4 Glossary .................................................................................................................... 5

2 General Overview.......................................................................................... 62.1 Introduction ................................................................................................................ 6

2.2 Details ....................................................................................................................... 6

3 Settings for Scenarios and Sample Assets ................................................ 73.1 Define Planning Scenarios ......................................................................................... 7

3.1.1 Introduction ........................................................................................................... 7

3.1.2 Details and Execution ........................................................................................... 7

4 Definition of Exceptions for Simulated Valuation .................................... 114.1 Exclude Positions from Planning Functions .............................................................. 11

4.1.1 Introduction ......................................................................................................... 11

4.1.2 Details and Execution ......................................................................................... 11

4.2 Assign Alternative Position Management Procedure................................................. 15

4.2.1 Introduction ......................................................................................................... 15


4.3 Different Valuation from Nominal Value .................................................................... 17

4.3.1 Introduction ......................................................................................................... 17


5 Generation and Calculation in the Planning and Projection Solution .... 195.1 Generate Market Data Shifts .................................................................................... 19

5.1.1 Introduction ......................................................................................................... 19


5.2 Create Sample Assets ............................................................................................. 20

5.2.1 Introduction ......................................................................................................... 20


5.3 Virtual Interest Fixing ............................................................................................... 22

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5.3.1 Introduction ......................................................................................................... 22


5.4 Virtual Accrual/Deferral ............................................................................................ 24

5.4.1 Introduction ......................................................................................................... 24


5.5 Calculation of Scenario-Dependent Key Figures....................................................... 25

5.5.1 Introduction ......................................................................................................... 25


5.6 Calculation of Planning/Projection Key Figures ........................................................ 26

5.6.1 Introduction ......................................................................................................... 26


6 Checking of Settings and Results of Planning and Projection ............... 276.1 Market Data Shifts ................................................................................................... 27

6.1.1 Check/Comment on Shift Rules........................................................................... 27

6.1.2 Maintain Market Data Shifts ................................................................................ 27

6.2 Key Figure Validation and Calculation Result Logging .............................................. 29

6.2.1 Analysis of Simulated Key Figures ...................................................................... 29

6.2.2 Calculation Result Logging .................................................................................. 30

7 Reorganization of Planning and Projection Calculation Runs................ 317.1 Delete Scenario Data ............................................................................................... 31

7.1.1 Introduction ......................................................................................................... 31


7.2 Delete Sample Assets .............................................................................................. 32

7.2.1 Introduction ......................................................................................................... 32


8 Extraction of Planning Key Figures to the SAP BW System ................... 338.1 Extraction of Planning Values for Subledger Positions .............................................. 33

8.2 Extraction of Planning Values for Sample Assets ..................................................... 33

8.3 Extraction of Planning Hierarchy .............................................................................. 33

9 Planning and Projection in the SAP BW System ..................................... 34

10 Configuration and Customer-Specific Adjustments ................................ 39

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1 Overview

1.1 PrerequisitesThe following prerequisites must be met before you can start working with the capital investmentplanning solution from SAP.

EA-FINSERVE 605 software component is installed.

SAP_BW 700 software component is installed.

1.2 Prior KnowledgeThis guide assumes that you have a certain degree of familiarity with the terminology and features ofthe capital investment planning solution.

In this guide you will find all of the information you need to execute the capital investment planningsolution from SAP and use it efficiently. We recommend that you use this guide together with thesolution.

1.3 Logon and Local Authorizations

1.3.1 AuthorizationsNot relevant.

1.3.2 Special NotesGraphics are used in this guide to demonstrate various details. The details shown in the graphics maydiffer from the details on your user interface. This guide may also describe work areas and functionsto which you do not have access. Note that your access depends on your individual authorization.

This document was created from the perspective of the capital investment planning solution andrefers to the characteristics and functions of this application.

1.4 Glossary

Term Definition

Capital investment planning Based on the capital investments managed in the direct portfolioand assuming certain general external conditions, it is possible toforecast the net earnings for the next X years (long-termperspective).This generally means that you can create a sound revenue forecastfor the selected planning time frame based on the current actualposition and control parameters to be set externally.

Projection Based on the capital investments managed in the direct portfolioand assuming certain general external conditions, it is possible toforecast the net earnings for the current year (short-termperspective).This generally means that you can create a sound revenue forecastfor the current fiscal year based on the current actual position andcontrol parameters to be set externally.

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Sample asset (SA) Sample assets represent synthetic positions (such as stocks,bonds, fixed-term deposits, and so on) that are used asreinvestment vehicles. The aim of planning is to determine whatcash will become available in future periods (such as income frominterest, dividends, repayments, and so on) and to reinvest it on aperiod basis.

2 General Overview

2.1 IntroductionThe following section describes how the subfunctions required for the capital investment planningsolution are organized. These subfunctions are mainly reports and transactions that can be groupedtogether under a user role and that can also be supplemented by customer-specific subfunctions ifrequired. The user role delivered is /TCIP/PLFC, which includes the activities described below.

2.2 DetailsNavigation on the user interface of the capital investment planning solution from SAP follows thechronological sequence of the functions specified in the structure below (from top to bottom). Therespective SAP transactions are given in parentheses.

The SAP solution capital investment planning consists of the following activities:

1. Functions for configuring scenarios and sample assets

Define Planning Scenarios (transaction /TCIP/SCENARIO_3)

2. Functions for defining exceptions for simulated valuation (optional)

Exclude Positions from Planning Functions (transaction /TCIP/SIM_VAL6)

Assign Alternative Position Management Procedure (transaction /TCIP/SIM_VAL5)

Different Valuation from Nominal Value (transaction /TCIP/SIM_VAL7)

3. Functions for generating and calculating data in the planning and projection solution

Generate Market Data Shifts (transaction /TCIP/SCENARIO_5)

Create Sample Assets (transaction /TCIP/MASSET_2)

Virtual Interest Fixing (transaction /TCIP/SIM_VAL3)

Virtual Accrual/Deferral (transaction /TCIP/SIM_VAL4)

Calculation of Scenario-Dependent Key Figures (transaction /TCIP/SIM_VAL1)

Calculation of Planning and Projection Key Figures (transaction /TCIP/SIM_VAL2)

4. Functions for checking the settings and results of planning and projection (optional)a. Market data shifts

Check/Comment on Shift Rules (transaction /TCIP/SCENARIO_4)

Maintain Market Data Shifts (transaction JBR0)

b. Key figure results and log file

Key Figure Analysis (transaction /TCIP/GENERAL_5)

Result Logging (transaction /TCIP/GENERAL_3)

5. Functions for reorganizing planning and projection calculation runs (optional)

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Delete Scenario Data (transaction /TCIP/GENERAL_6)

Delete Sample Assets (transaction /TCIP/MASSET_7)

3 Settings for Scenarios and Sample Assets

3.1 Define Planning Scenarios

3.1.1 IntroductionYou can use the Define Planning Scenarios function to define planning scenarios that includeassumptions for future periods. To call the function, use transaction /TCIP/SCENARIO_3.

3.1.2 Details and ExecutionIn the Define Planning Scenarios function, you first define a planning scenario in which you enterassumptions for future periods.

Indicate whether the planning scenario is relevant for planning and/or projection.

Create a version and define the planning scenario by assigning the relevant planning horizons.

Enter your respective assumptions or expectations for the planning horizons regarding developmentsin foreign exchange, interest, securities, and indexes.

Proceed as follows:

1. You first define the scenario abstractly. You can define scenarios differently across differentplanning periods; you can therefore create different versions of a scenario that aresemantically identical.

Fig. 1: Define Planning Scenario

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2. For each version, define the market price parameters for each planning interval.


3. Assign the horizon-dependent market price parameter for each risk factor.

Foreign exchange

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Interest


Securities


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Index


Configure the settings for each scenario using the view cluster displayed above.

Define sample assets

Sample assets represent synthetic positions (such as stocks, bonds, fixed-term deposits,and so on) that are used as reinvestment vehicles. The aim of planning is to determinewhat cash will become available in future periods (such as income from interest, dividends,repayments, and so on) and to reinvest it on a period basis. At this point in the application,you decide at which node of the planning hierarchy (here a portfolio hierarchy) cash is tobe reinvested and in what type of instrument. You also configure the following settings foreach hierarchy node:

- Valuation rule

- Interest frequency

- Full term of the sample asset

- Base reference interest rate

- Interest calculation method

Fig. 8: Define Sample Assets

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4 Definition of Exceptions for Simulated Valuation

4.1 Exclude Positions from Planning Functions

4.1.1 IntroductionWith this function, you can exclude particular capital investments from the planning application. To callthe function, use transaction /TCIP/SIM_VAL6.

4.1.2 Details and ExecutionIf you want to exclude particular capital investments from the planning application, you can usetransaction /TCIP/SIM_VAL6 to exclude positions from individual planning subfunctions (such asmarket value calculation). You configure the required settings as follows using the derivation tool forprofitability analysis (CO-PA).

The planning solution provides a set of source fields and a target field for defining a derivation rule.The derivation rule maps the source fields to the target field, on which the evaluation using theplanning tool is based.

To exclude positions from planning functions, proceed as follows:

1. Call transaction /TCIP/SIM_VAL6.2. Choose Display/Change.3. Choose Create Step.4. Select the Derivation Rule radio button.5. Choose Continue.

Fig. 9: Exclude Positions from Planning FunctionsTo create or change the derivation rule, first select the source and target fields that you want toinclude in the rule:

a. Choose a step text.b. In the Source Fields list, select the values (for example, planning scenario) that you

want to map to the target field.c. In the Target Field, choose EXCLUDE, for example.

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Fig. 10: Exclude Positions from Planning FunctionsChoose Maintain Rule Values and select the required rule values for the derivation rule.

Example

For all holdings, simulated valuation should not be carried out for the International Financial ReportingStandards (IFRS) valuation area (VA) since reporting is carried out at the nominal value.

Before you define a derivation rule, first select the following source fields.

You map these source fields to the EXCLUDE target field:

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Fig. 11: Define Derivation Rule for Exceptions for Simulated ValuationWhen you have specified the source and target fields, you can define the rule.

Choose Maintain Rule Values and select the required entries:

Fig. 12: Define Derivation Rule for Exceptions for Simulated Valuation

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Fig. 13: Define Derivation Rule for Exceptions for Simulated ValuationThe system evaluates the rules defined here and takes them into account when determining planningkey figures.

You can also change the assignment using transaction /TCIP/SIM_VAL6. Choose the Move radiobutton and proceed as described above.

Fig. 14: Exclude Positions from Planning Functions

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4.2 Assign Alternative Position Management Procedure

4.2.1 IntroductionThis function enables you to valuate certain securities using a procedure that differs from the standardapproach; in other words, to use a different position management procedure for the valuation.

4.2.2 Details and ExecutionAs part of simulated valuation, the accounting valuation of Treasury Ledger (TRL) positions andsample assets is carried out using the valuation framework in Investment Management (IM). Theposition management procedure, which contains the individual valuation steps and the assignedvaluation rules, is the basis for the simulated valuation.

Real TRL subledger positions and CML (corporate mortgage loan) contracts are valuated using thesame basic valuation method as that used for the real accounting valuation in the subledger. This isessential to ensure that the valuation results can be compared.

For sample assets, the underlying position management procedure is derived by means of therespective assigned International Securities Identification Number (ISIN) and the product type derivedfrom this.

You can also valuate certain securities using a procedure that differs from this standard approach; inother words, you can use a different position management procedure for the valuation.

To do this, you can configure settings in the derivation tool for profitability analysis (CO-PA) thatenable you to define an alternative position management procedure based on a number of influencingfactors. These settings are then taken into account during the simulated valuation. In other words, theprocedure determined here overrides the standard position management procedure.

To configure the settings for an alternative position management procedure, proceed as follows:

Call transaction /TCIP/SIM_VAL5.

Carry out the same sequence of steps as described in 4.1.2 Details and Execution.

Fig. 15: Assign Alternative Position Management ProcedureSelect the source and target fields that you want to include in the derivation rule.


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Fig. 16: Assign Alternative Position Management Procedure

Define the settings for the derivation rule.


You can also change the assignment as required using transaction /TCIP/SIM_VAL5. Choose theMove radio button and proceed as described above.

Fig. 17: Assign Alternative Position Management Procedure

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4.3 Different Valuation from Nominal Value

4.3.1 IntroductionThis function enables you to valuate certain securities using a procedure that differs from the standardapproach; in other words, to carry out a valuation that differs from the nominal value.

4.3.2 Details and ExecutionIf you want to valuate particular capital investments without using the nominal value, you canconfigure the necessary setting using transaction /TCIP/SIM_VAL7 (Different Valuation from NominalValue).

You configure the settings as described in previous steps by using the derivation tool for profitabilityanalysis (CO-PA).

To configure the settings for a valuation that is different from the nominal value, proceed as follows:

Call transaction /TCIP/SIM_VAL7.


Fig. 18: Different Valuation from Nominal Value

Select the source and target fields that you want to include in the derivation rule.


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Define the settings for the derivation rule.


You can also change the assignment as required using transaction /TCIP/SIM_VAL7. Choose theMove radio button and proceed as described above.


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5 Generation and Calculation in the Planning andProjection Solution

5.1 Generate Market Data Shifts

5.1.1 IntroductionThis function enables you to create market data shifts automatically. Simulated market values aredetermined subsequently for each scenario and planning interval on the basis of these market datashifts.

5.1.2 Details and ExecutionExecute this report for the respective Planning Scenario using the appropriate Valid from date and theevaluation type for market risk analysis (MRA Evaluation Type). To call the report, use transaction/TCIP/SCENARIO_5.

Fig. 21: Generate Market Data Shifts

NoteThe Valid from date must always be the same as or after the first version date of the definedscenario.

ExampleIf the date of the first version of the planning scenario is 30.09.2012, the date you choosehere must be 30.09.2012 or a later date.

The same applies to all the calculation steps described in 5.2, 5.3, 5.4, 5.5, and 5.6.

CautionNote that the date you choose must be homogeneous.

The report updates the scenario settings made in 3.1 Define Planning Scenarios (shifts in foreignexchange rate, interest rate, and security prices) in the standard transaction.

The following example shows the underlying logic:

By scenario (for example, ID 100)

By version (for example, 30.09.2012)

Per period (for example, current year = 3 periods/following year = 12 periods/years 2-5 =4 periods) => 19 periods

The generation report for standard market data shifts therefore generates 19 standard shiftsaccording to the scenario ID, version date, and the periods included.

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5.2 Create Sample Assets

5.2.1 IntroductionThis function enables you to create sample assets whose content has been described usingtransaction /TCIP/SCENARIO_3 (see 3.1 Define Planning Scenarios).

5.2.2 Details and ExecutionYou can use this report to create sample assets that you have already described using transaction/TCIP/SCENARIO_3 (see 3.1 Define Planning Scenarios).

To call the report, use transaction /TCIP/MASSET_2.

The following screen appears:

Fig. 22: Create Sample Assets

The sample assets for each hierarchy node (see 3.1 Define Planning Scenarios) are multiplied outalong the timeline specified by the scenario period.

The sample assets are created by scenario (or horizon if applicable) and key date. The key date heremeans the planning key date.

If you select the Individual SA Selection checkbox, a maintenance dialog appears in which you canexplicitly further restrict the sample assets to be created.

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Fig. 23: Create Sample AssetsBy selecting the checkboxes (in the Selection column), you ensure that only the assets selected hereare created.

If you select the Delete All checkbox, all selected sample assets are deleted.

If you select the Delete Selected S. Assets Only checkbox or the Individual SA Selection checkbox, adownstream selection dialog appears in which you can restrict the sample assets to be created.However, in contrast to the Individual SA Selection checkbox, existing sample assets that aresemantically identical to the selected sample assets are deleted beforehand in order to excludeduplicates.

NoteUse the Delete Selected S. Assets Only checkbox during adjustment runs for sample assetsthat have already been created.

When the program is executed, the system first checks whether you have selected either of the twodeletion options by selecting the checkboxes. If you have selected the Delete All option, all sampleassets based on your selection criteria are deleted.

NoteBecause sample assets have been created from a technical perspective as risk objects, makesure that you delete only those risk objects that were originally created by the planningapplication.

Risk objects are created depending on the product type; in other words, the import structures for therisk object are filled depending on the context for each product type.

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5.3 Virtual Interest Fixing

5.3.1 IntroductionIn virtual interest fixing, variable-rate interest flows that have not yet been fixed undergo virtualinterest fixing so that their contribution is taken into account for the scenario-dependent result.

5.3.2 Details and ExecutionAmong the positions to be taken into account as part of capital investment planning, there may alsobe positions with variable interest conditions. In this context, variable means that the interest flows ofthis position are based on a particular reference interest rate (such as the 3 month Euribor). To, inturn, enable a future cash flow to be calculated, the interest rate has to be fixed on a specific date atthe start of the calculation period. This means that the market rate of the reference interest rate (suchas the 3 month Euribor) that is valid on that date is used as the fixing interest rate. The future cashflow is then calculated on the basis of the interest rate, the interest calculation method (360/360, forexample), and the interest calculation period (for example, 10.03.XXXX to 10.06.XXXX).

All cash flows with a due date after the planning key date and a fixing date before the planning keydate are already fixed since this fixing is ensured operationally. However, for all flows whose due dateand fixing date are both after the planning key date, the currently valid market interest rate andpotential future developments of the interest rate are unknown.

Fig. 24: Virtual Interest Fixing

To obtain the most complete picture of future periods for all positions, it is essential that positions withvariable interest rates are fixed virtually. This naturally raises the question of what interest rate shouldbe set. To decide this, you need to determine which planning key figures will be influenced by avirtually fixed interest rate.

The result of interest fixing influences the following key figures:

1. Future cash flows in nominal amounts in individual planning periods.

2. These future cash flows, in turn, influence the amount of future reinvestment flows.

3. The interest amount also influences the regular accounting result in the form of interestrevenues and interest expenses to be accrued/deferred. Accrual/deferral must also be period-based.

4. Future realized interest revenues and expenses also result from virtual interest fixing andthese, in turn, influence own key figures and regular revenue.

5. Virtually fixed interest amounts also influence the market value calculation for individualproducts.

To perform virtual interest fixing, proceed as follows:

Call transaction /TCIP/SIM_VAL3. The following screen appears, on which you make the requiredentries.

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Fig. 25: Virtual Interest Fixing

In virtual interest fixing, variable-rate interest flows that have not yet been fixed undergo virtualinterest fixing so that their contribution is taken into account for the scenario-dependent result.

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5.4 Virtual Accrual/Deferral

5.4.1 IntroductionThis function enables you to accrue/defer the virtual interest fixing flows and thereby create a period-specific statement for the respective planning period (horizon).

5.4.2 Details and ExecutionTo obtain correctly accrued/deferred accounting valuation results, it is important to distribute interestrevenues according to their period assignment; in other words, to accrue/defer them.

The system uses this report to carry out accrual/deferral for the virtually fixed interest rates and savesthe results.

To call the report for virtual accrual/deferral, use transaction /TCIP/SIM_VAL4.

Fig. 26: Virtual Accrual/Deferral

NoteMake sure that the key date is identical to the date chosen in the previous steps.

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5.5 Calculation of Scenario-Dependent Key Figures

5.5.1 IntroductionThis function enables you to calculate a market value in future periods for positions.

5.5.2 Details and ExecutionExecute this report to first calculate a market value for future period ends for all positions (actualpositions and sample assets) for each scenario based on the selected key date. This market value isused as a basis for the simulated valuation in the next step.

Basic key figures such as accrual/deferral results are also determined. To call this report, usetransaction /TCIP/SIM_VAL1.

Fig. 27: Calculation of Scenario-Dependent Key Figures

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5.6 Calculation of Planning/Projection Key Figures

5.6.1 IntroductionThis function enables you to perform a simulated valuation of all positions in future periods.

5.6.2 Details and ExecutionThis report performs a simulated valuation of all positions in future periods based on the period-specific market values determined in the previous step. This valuation is performed according to thesame principles as the real accounting valuation of actual positions. Actual positions and sampleassets are both valuated according to parallel valuation areas in the future periods of a scenario.

To call this report, use transaction /TCIP/SIM_VAL2.

Fig. 28: Simulated Valuation

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6 Checking of Settings and Results of Planning andProjection

6.1 Market Data Shifts

6.1.1 Check/Comment on Shift Rules

6.1.1.1 Introduction

Based on the settings described in 3.1 Define Planning Scenarios, corresponding market data shiftsare created automatically based on the respective planning interval.

6.1.1.2 Details and Execution

This report enables you to check the assignment of the created market data shifts and to adjust themif required. Manual changes are generally not necessary here.

To call the report, use transaction /TCIP/SCENARIO_4.

Fig. 29: Check/Comment on Shift Rules

6.1.2 Maintain Market Data Shifts


This function enables you to generate rules for market data shifts.


The rules for market data shifts are generated automatically using the report Pl./Pr.: Generate MDShift Tables. To call the report, use transaction /TCIP/SCENARIO_5.

You can view the generated rules in the SAP standard context using the transaction JBR0 (MaintainMarket Data Shifts).

Example

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Fig. 30: Generation of Market Data Shift Rules

The following values are always encrypted in the shift text:

Scenario

Horizon

Version

The shift rules are required downstream for the simulated valuation of market values.

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6.2 Key Figure Validation and Calculation Result Logging

6.2.1 Analysis of Simulated Key Figures


This function enables you to validate and check all results generated by various subfunctions of theplanning solution.

6.2.1.2 Details and ExecutionExecute the report Planning/Projection: Analysis of Simulated Key Figures to validate and check allresults generated by the various subfunctions of the planning solution. The set of calculated keyfigures is displayed for each planning interval.

To call the report, use transaction /TCIP/GENERAL_5.

Fig. 31: Analysis of Simulated Key FiguresMake the desired selection and choose Execute. Double-click to go to the detail view of the simulatedmarket value determination. The system displays the simulated market values (on which thesimulated valuation is based) by horizon.

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6.2.2 Calculation Result Logging

6.2.2.1 IntroductionThis function enables you to display log data.


You can display the results of the planning and projection calculation runs using the reportPlanning/Projection: Display Log Data.

To call the report, use transaction /TCIP/GENERAL_3.

You can display the log data separately for each product group.

Fig. 32: Display Log Data

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7 Reorganization of Planning and Projection CalculationRuns

7.1 Delete Scenario Data

7.1.1 IntroductionThis function enables you to delete scenario data.

7.1.2 Details and ExecutionYou can use the report Plan./Proj.: Selective Deletion of Data from Planning/Projection, for example,to delete the virtual interest fixing for a planning scenario for a particular key date.

To call this report, use transaction /TCIP/GENERAL_6.

You can delete the following data:

- Virtual interest fixing

- Simulated accrual/deferral for virtual interest fixing

- Market values and interest accrual/deferral

- Simulated valuation

Before you start the update run, you can perform a test run.

Fig. 33: Test Run for Deletion of Data from Planning and Projection Solution

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7.2 Delete Sample Assets

7.2.1 IntroductionThis function enables you to delete sample assets.

7.2.2 Details and ExecutionYou can delete sample assets for a particular scenario using the report "Planning/Projection: DeleteSample Assets".

To call the report, use transaction /TCIP/MASSET_7.

Fig. 34: Delete Sample Assets

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8 Extraction of Planning Key Figures to the SAP BWSystemWithin the planning application, the ERP system functions as a central computational kernel toprovide all of the key figures required for planning and projection (abbreviated as Pl./Pr. in thesystem). The actual planning and projection takes place in the SAP BW system on the basis of planvalues provided by means of extractors.

8.1 Extraction of Planning Values for Subledger PositionsThe simulated planning key figures that result from the following planning functions are transferred tothe BW system using the /TCIP/NB_FLOWS DataSource.

Simulated, scenario-dependent market value determination

Simulated accrual/deferral

Simulated valuation

8.2 Extraction of Planning Values for Sample AssetsThe simulated planning key figures that result from the following planning functions are transferred tothe BW system using the /TCIP/MA_FLOWS DataSource.

Simulated, scenario-dependent market value determination

Simulated virtual accrual/deferral

Simulated valuation

The header data for the sample assets is transferred to the BW system using the /TCIP/MA_ATTRDataSource.

8.3 Extraction of Planning HierarchyThe extraction of the planning hierarchy is triggered from the BW system. From a technicalperspective, this involves the RFC-enabled function module /TCIP/EXTRACT_PL_HIER_ATTR thatpresents financial objects from the ERP system in the hierarchy structure required for the BW system.Which data is to be extracted depends mainly on the planning hierarchy characteristics that youdefine.

The customer-specific derivation logic of the financial objects for the various nodes of the planninghierarchy therefore needs to be implemented using the Business Add-In (BAdI)/TCIP/BI_EXTRACT_HIER_BADI. The corresponding BAdI implementation is called within thefunction module.

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9 Planning and Projection in the SAP BW SystemBecause user interfaces must be designed according to the specific needs of the customer, they arenot delivered as part of the capital investment planning solution.

However, the logic that underlies the planning and projection function and that has to be integrated ona customer-specific basis as part of the project is still described here.

The central planning function in the capital investment planning solution is the planning and projectionalgorithm (Pl./Pr.algorithm).

The basic idea behind the planning and projection algorithm is to clear any cash flow surpluses ordeficits that arise by reinvesting in a sample asset or by using the sample asset as a financing sourceand is therefore based on the Complete Financial Budget.

The level at which this clearing takes place is determined by the following factors:

Budget category (node in the position hierarchy that contains assets)

Calendar month

Scenario

The cash flow for this level depends on the following elements:

Cash flow from assets in the position

Cash flow from the position developments entered by the user at budget category level

Cash flow from automatic reinvestments or financing from sample assets

The planning and projection algorithm runs as follows:

Note

For the sake of simplicity, the scenario is not considered in the description. In the rest of the points,only one scenario is considered.

1. The months that are relevant for the projection or planning are determined.

For projection, this includes all months between the projection key date and the end of theyear. For planning, this includes all months between the start of the following year (as viewedfrom the planning key date) and the end of the planning horizon (currently five years).

2. For each level (identified by month and budget category), the following logic is processedwhereby the levels are processed in an ascending monthly sequence:

a. Determination of cash flow balance from assets in the position, sample assets, andmanually entered developments in the cash flow position.

b. If this balance is not equal to zero, the system searches for the sample asset relevant forthe level. If no sample asset is found, the calculation terminates at this point with acorresponding error message.

c. The values of the sample asset found (cash flow values and associated accountingvalues) are scaled. For this, a factor is generated for the month being examined from theCash Flow balance (with no reinvestment) and the cash flow from reinvestment insample assets. All values of the sample asset are multiplied by this factor.

d. The scaled values of the sample asset are transferred to the other levels according totheir chronological assignment. During this process, the accounting values of a sampleasset are also taken into account in addition to its cash flows.The values are stored in the sample asset of the budget categories that is intended forreinvestments. To identify individual reinvestments, the counter in the "ReinvestmentCycle" characteristic is increased by 1 for each reinvestment.

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The following example is provided to clarify this process further:

Beispiel

In the year 201X, there is a single asset in the position. This asset results in a revenueposting of 30 that is relevant for payment in the month 09.201X. The book value of this assetin 12.201X is expected to be 1000. A position increase of 20 is also planned for 09.201x. Thiscan be represented as follows for the relevant budget category:

Key Figure/Month 09.201X 10.201X 11.201X 12.201X

Cash flow (from assets in position) 30

Cash flow (from position developments) 20

Cash flow (balance with noreinvestment)

50 0 0 0

Cash flow (reinvestment) -

Cash flow (total balance) -50 0 0 0

Revenue (from assets in position) 50

Revenue (from reinvestments) -

Revenue (total) 50

Book value (from assets in position) 1000

Book value (from reinvestments) -

Book value (total) 1000

In this case, the cash flow (total balance) for 09.201X is negative. A sample asset is found forthis level (budget category/month) that has the following information (displayed here for theprojection time frame only):


Cash flow (investment amount) -10

Cash flow (revenue) 1

Revenue 1

Book value 9

A factor of 5 and the following overview are generated for the required reinvestment amountof -50:



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Cash flow (revenue) 5

Revenue 5

Book value 45

The sample asset is inserted into the budget category in this form:




Cash flow (balance with no reinvestment) 50 0 0 0

Cash flow (reinvestment) -50 5

Cash flow (total balance) 0 0 -5 0


Revenue (from reinvestments) - 5

Revenue (total) 50 5


Book value (from reinvestments) 45


The cash flow for the month 09.201X is now cleared. Since the cash flow is cleared, noactivities are required for 10.201X either. A cash flow balance of -5 has arisen in 11.201X as aresult of the revenue payment for the sample asset created. This must be neutralized. Thesystem searches for another suitable sample asset for this purpose. Here is the scaledrepresentation:



Cash flow (revenue)

Revenue

Book value 5

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When the second sample asset is taken into account, the budget category now looks asfollows:




Cash flow (balance with no reinvestment) 50 0 0 0

Cash flow (reinvestment) -50

Cash flow (total balance) 0 0 0 0


Revenue (from reinvestments) - 5

Revenue (total) 50 5


Book value (from reinvestments) 50


The projection finishes here since the cash flow for 12.201X is cleared. The evaluationproduces the following projection result:

Key Figure Total From Position From Reinvestment

Revenue 55 50 5Book value 1050 1000 50

The example above explains the general procedure for the planning and projection algorithm. Thefollowing notes provide more details:

1. The level of granularity (with reference to the key figures displayed) at which the algorithmdescribed above works depends on the key figure category. If the revenue is split intoordinary and extraordinary components, for example, the planning and projection algorithmalso delivers a result at this level. Corresponding sample asset values must of course beprovided for this.The example above was intentionally kept simple.

2. Cash flows, revenues, and so on are recorded in the system with their dates. However, for thesake of simplicity (especially for the required sample assets), we assume that the cash flowsare cleared on a monthly rather than a daily basis.

3. Each individual reinvestment can be traced (expanded and reported) in the planning andprojection dataset. The "Reinvestment" characteristic of the data model is used for this. Forreasons of clarity, this was not visualized in the representation provided in the example.

4. The clearing described above is based on values in local currency only. Position currencyinformation is also included statistically (if it exists).

5. In phase 1 of the project, sample assets are also used for position reductions. We assumethat the required amount can be "financed" using the conditions reflected in the sample asset.

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To ensure that the most realistic model possible is developed, the search algorithm for findinga sample asset then distinguishes between investments and divestments.

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10 Configuration and Customer-Specific AdjustmentsFor all information regarding configuration, see the Configuration Guide for the capital investmentplanning solution. For more information, see SAP Service Marketplace at http://service.sap.comSAP Support Portal Software Downloads Installations and Upgrades A – Z Index C CAPITAL INVEST. PLANNING CAPITAL INVEST. PLANNING 1.0.

http://service.sap.com/

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SAP Custom Development - SAP Help Portal investment planning Based on the capital investments managed in the direct portfolio and assuming certain general external conditions, it is