Learn how to gain enhanced analysis capabilitywith US Eliminations in SAP BPC
Paul Rafferty, eBay PayPalVish Arunachalam, Perceptive Technologies
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Real Experience. Real Advantage.
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Todays speakers
Paul RaffertySAP Functional Lead
eBay [email protected]
Vish ArunachalamPrincipal, EPM AdvantageFinance
Perceptive [email protected]
AdvantageFinance
Real Experience. Real Advantage.
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Learning Points
Learn what it takes to enable enhanced analysiscapability with US eliminations in BPC
Get real-world tips and lessons learned with designing USEliminations in BPC
Understand typical challenges faced during intercompanyelimination analysis while using US eliminations in BPC
Real Experience. Real Advantage.
[ SAP Components & Application Integration
EPM Legal and ManagerialConsolidations BPC NW
BW- Data storage, Infoproviders,Meta Data and Master Data
ECC - ERP NonSAP Data
Planning,Analysis and
Reporting
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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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Real Experience. Real Advantage.
[ Intercompany US Elimination: Basics When reporting the financial results of a group of entities,
BPC identifies Intercompany activities and balances andposts entries so these activities and balances are fullyeliminated when looking at the overall results for thegroup
Intercompany elimination entries should be reflected onlyin groups in which both the entity and the partner entityare part of the group
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Real Experience. Real Advantage.
[ US Eliminations BPC US Elimination process addresses simple
intercompany requirements in financial application, wherea full legal consolidation application is not required
Multiple lower level legal entities related data is eliminatedat first common parent
Consolidation Task US widely used IntercompanyElimination uses: Process Chain /CPMB/IC_ELIMINAT ION Script Logic ICELIM.LGF Business Rule Table US Elimination
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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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Real Experience. Real Advantage.
[ Illustration: IC Elimination
All eliminations between X, Y, M and N are eliminated atElimination Entity A
Reconciliation is a challenge when too many children roll upunder a single parent elimination entity
Parent AElimination Entity A
Legal entity X
Legal entity Y
Legal entity M
Legal entity N
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Real Experience. Real Advantage.
[ Illustration: IC Transaction Basic Design
Entity Datasource Period AccountTradingPartner
Amount$
X INPUT 2011.SEP 122000 Y 50000Y INPUT 2011.SEP 250000 X -50000M INPUT 2011.SEP 122000 Y 23000Y INPUT 2011.SEP 250000 M -23000N INPUT 2011.SEP 122000 Y 5000Y INPUT 2011.SEP 250000 N -5000
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Note: A/c 122000 IC Accounts Receivable | A/c 250000 IC Accounts Payable
Real Experience. Real Advantage.
[ Illustration: IC Elimination Basic Design
Entity Datasource Period AccountTradingPartner
Amount$
A ELIM 2011.SEP 122000 Y -78000A ELIM 2011.SEP 250000 X 50000A ELIM 2011.SEP 122000 M 23000A 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!
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 theres an additional user defined dimension for Entity,
data is aggregated by Elimination entity, Trading Partnerand also by the additional user defined dimension forEntity
A simple additional dimension in data model savestremendous effort later on during reporting design andanalysis
Dont lose granularity post IC elimination!
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Real Experience. Real Advantage.
[ Illustration: Intercompany Transaction - New
Entity DatasourceZ
LegalEntity
Period AccountTradingPartner
Amount$
X INPUT X 2011.SEP 122000 Y 50000Y INPUT Y 2011.SEP 250000 X -50000M INPUT M 2011.SEP 122000 Y 23000Y 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
Real Experience. Real Advantage.
[ Illustration: IC Elimination New
Entity DatasourceZ
LegalEntity
Period AccountTradingPartner
Amount$
A ELIM X 2011.SEP 122000 Y -50000A ELIM Y 2011.SEP 250000 X 50000A ELIM M 2011.SEP 122000 Y -23000A ELIM Y 2011.SEP 250000 M 23000A ELIM N 2011.SEP 122000 Y -5000A ELIM Y 2011.SEP 250000 N 5000
Note: To simplify scenario, the ELIMACC records are excluded in above table
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Real Experience. Real Advantage.
[ Demo
BPC NW with Basic US elimination and US elimination with enhanced analysis enabled
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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
Real Experience. Real Advantage.
[ Enhanced Analysis works with managerialconsolidation too! User defined dimension can be added in similar manner
for managerial consolidation too
Additional user defined dimension can be added for profitcenter or segment or any such managerial entity, asapplicable
Ensure that the desired data granularity for elimination isachieved by calibrating data model to suit analysis needs
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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 willallow retention of granularity at Elimination Entity, TradingPartner and User Defined Entity
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Real Experience. Real Advantage.
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Best Practices
IC Reconciliation is often a pain in close process, addressthis upfront
Consider post IC elimination review and analysis processand pain areas as critical input for designing optimal datamodel for BPC consolidation
Check dimensions required for Consolidation (Legal andManagement) What views of data do you need supported at the underlying
ledger? Consider system performance implications with adding
dimensions? Activate required dimensions on day one, becomes really
complicated later
Real Experience. Real Advantage.
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Key Learnings
Deficiency in data model could adversely impact closeprocess
Facilitate reconciliation by addressing granularity of ICElimination data
Dont lose granularity post IC elimination. More detailand granularity is appropriate
Optimal data model for consolidation will minimizereporting and analysis challenges during financial close
Real Experience. Real Advantage.
[ Q&A
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Real Experience. Real Advantage.
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Paul RaffertySAP Functional Lead, eBay [email protected]
Vish Arunachalam ACAPrincipal, EPM AdvantageFinance , Perceptive TechnologiesSAP Certified BPC Elite | linkedin.com/in/[email protected] | www.perceptinc.com/adfin
Thanks!
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Real Experience. Real Advantage.
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