SAP BPC NW 10.0 on HANA - Consolidation Business Rules- Implementation Guide

______________________________________________________________

Author: Chief Architect:

Murugesan Annamalai Jothi Periasamy

SAP Project Manager/Lead SAP EPM/HANA Community Service SAP HANA/EPM/BI/EIM Community Leader

SAP EPM/BPC Solutions Lead SAP BPC/BOBJ/BI/MDM Domain Champion

[email protected] 10/16/2013 [email protected], (916)-296-0228 - Cell

SAP BPC NW 10.0 on HANA | KNOWLEDGEBASE

(A SAP EPM & HANA Community Service)

Business Rules for Financial Close -

Implementation Guide

______________________________________________________________






CloneSkills, Inc., http://www.CloneSkills.com , [email protected] , 1.800.836.8959, Page - 2

Table of Contents

1. Executive Summary: ........................................................................................ 4

2. Key Assumptions:............................................................................................. 5

3. Business Rules Flow of Control:....................................................................... 6

4. Business Scenario: ........................................................................................... 8

4.1 Business Scenario – 1: ................................................................................... 9

5. Solutions Architecture: ................................................................................... 13

6. Solutions Building Blocks: .............................................................................. 17

7. Entity Structure: .............................................................................................. 20

8. Ownership Structure: ...................................................................................... 21

9. Business Rules: Configuration ....................................................................... 22

10. Relationship Among Business Rules: ........................................................... 26

10.1 Example: Relationship Among Business Rules .......................................... 27

11 Business Rules Tables .................................................................................. 28

11.1 Business Rules Table: Methods ................................................................. 28

11.1.1 Business Rules Table Columns: Methods ............................................... 29

11.2 Business Rules Table: Methods Based Multipliers ..................................... 30

11.2.1 Business Rules Table Columns: Methods Based Multipliers ................... 32

11.2.1.1 Example: BR in Action (Step By Step Execution) ................................. 34

11.3 Business Rules Table: Eliminations and Adjustments ................................ 38

11.3.1 Business Rules Table Columns: Eliminations and Adjustments .............. 42

11.4 Business Rules Table: Carry Forward ........................................................ 44

11.4.1 Business Rules Table Columns: Carry Forward ...................................... 45

11.5 Business Rules Table: Account Based Calculations ............................................. 47

11.5.1 Business Rules Table Columns: Account Based Calculations ................ 48

11.6 Business Rules Table: Intercompany Bookings ......................................... 50

11.6.1 Business Rules Table Columns: Intercompany Bookings ....................... 51

11.7 Business Rules Table: US Eliminations ..................................................... 53

11.7.1 Business Rules Table Columns: US Eliminations ................................... 54

11.8 Business Rules Table: Currency Translation ............................................. 55

11.8.1 Business Rules Table Columns: Currency Translation ........................... 56

12. Business Rules: Implementation .................................................................. 58

12.1 Business Scenario – 1: Implementation ..................................................... 58

12.2 Business Scenario – 2 & 3 : Implementation .............................................. 64

12.3 Business Scenario – 4: Implementation ..................................................... 82

12.4 Business Scenario – 5 : Implementation .................................................. 105

12.5 Business Scenario – 6: Implementation ................................................... 121

12.6 Business Scenario – 7 : Implementation .................................................. 172

______________________________________________________________







13. Appendix-A – Data Source File: ................................................................. 184

13. Appendix-A – Data Source File(Contd.): .................................................... 185






13. Appendix-B – Consolidated Balance Sheet ................................................ 191

14. Disclaimer: ................................................................................................. 192

15. SAP Community Contributors:.................................................................... 193

______________________________________________________________







1. Executive Summary:

The purpose of this article is to provide enough functional and technical details

to implement SAP BPC NW 10.0 business rules on a consolidation model.

Users will learn the business rules that are required to implement financial

close process solution. In this article we are explaining the mandatory required

steps to implement business rules in detail.

This document explains the [a] objective of each business rule, [b] educates

you to understand the table fields/columns for each business rule, [a] explains

the business purpose of each column in the business table and then [d]

explains the value stored in each column along with sample values. Ultimately

we are showing you to implement the business rules step by step.

In this article, we cover the following business rules on a SAP BPC NW 10.0

platform for a consolidation implementation:

� Methods

� Methods Based Multipliers

� Eliminations and Adjustments

� Carry Forward

� Account Based Calculations

� Intercompany Bookings

� Currency Translation

� Equity Pickup

� US Eliminations

______________________________________________________________







2. Key Assumptions:

Before we move further in this journey, It has been assumed that the user has basic knowledge and understanding on finical close process and also it’s enabling technologies such as SAP BPC NW 10.0 product.

______________________________________________________________







3. Business Rules Flow of Control:

Below diagram explains “how a business user able to interact with business rules, and perform their business functions using SAP BPC NW 10.0 out of the box business rules functionality” – How business rules work within business users? Note: There are other options to call or to make the business rules to interact with business users, here is a sample options to call/invoke a business rule from user perspective.

Figure: 1: Business rules control and information flow

______________________________________________________________







Based on the above diagram the following steps are explained to get a better view on the step by step approach to implement SAP BPC NW 10.0 business rules

� Step # 1: Business users launches EPM “add-in” excel

� Step # 2: Business users calls a specific data manager package via EPM “add-in” excel, the data manager package may be standard package or a custom package developed by customer

� Step # 3: The data manager package intern calls a “logic script” with a user prompt (note: the user prompts are optional).

� Step # 4: On prompt, the business users should be able to provide their

valid inputs to the respective prompt

� Step # 5: After accepting user inputs from the prompt, the “logic script” intern calls business rule with relevant parameters, the parameters are vary by business rules

� Step # 6:Now the business rule reference the business rule table for the associated context information’s, after reading the business rule table the business rule function will read the applicable data region from model

� Step # 7:Now the business rule will perform the following task, each business rules will have its own set of task based on the objective of the business rules and it’s table values

� Read model data based on the business rule table context

values/information � Apply business rules on the model data � Write the data back to model

______________________________________________________________







� Step # 8:Finally business users should be able to verify the outcome of the business rules execution via a custom report, or a custom data input form , or a SAP BW backend query, also through other options

4. Business Scenario:

CubeInsights, Inc. a Holding Company has legal subsidiaries in the United States, Canada, Germany, United Kingdom, Singapore and India, and not all of them are wholly owned. Besides that, these subsidiaries do make intercompany transactions which need to be eliminated during the consolidation/close process. The company does many acquisitions and divestitures during the year that has led to a complex and lengthy close process. To speed up the financial close process, the company has decided to automate their consolidation process using SAP BPC NW 10. SAP BPC NW 10 uses minimal programming to automate the consolidation process. The SAP BPC NW 10.0 software primarily uses predefined set of Business Rules to automate the consolidation process. Business Rules are table driven approach and it does not require complex programming/coding efforts to implement the consolidation process. SAP BPC implementation team decided to explore the business rules, instead custom coding and custom artefacts.

______________________________________________________________







4.1 Business Scenario – 1:

Below diagram explains a global company’s operating model, in this business

scenario we are using a global company called CubeInsights, Inc.

CubeInsights, Inc. offers pre-packaged industry analytics on a cloud platform,

and they are specializing in SAP HANA and HADOOP technology.

Figure: 2: CubeInsights operating model

______________________________________________________________







Figure: 3: CubeInsights subsidiaries and its ownership to parent company

� CubeInsights, Inc. Holding Company has subsidiaries in the following

countries: o United States o Canada o Germany o United Kingdom o Singapore o India

� Subsidiaries have the following entity structure:

o USA and Canadian entities are part of North America region. o German and UK entities are part of Europe region. o Singapore and Indian entities are part of Asia Pacific region. o North America, Europe and Asia Pacific regions are coming

under corporate headquarters.

______________________________________________________________







� The Holding Company has ownership in its’ subsidiaries as follows: o Has 80% stake in its US subsidiary. o Has 90% stake in its German subsidiary. o Has 80% stake in its Singapore subsidiary.

� Subsidiaries have ownership interest among themselves i.e.

subsidiaries have invested in other subsidiaries. o German subsidiary has 20% stake in UK subsidiary. o Singapore subsidiary has 80% stake in Indian subsidiary. o US subsidiary has 70% stake in Canadian subsidiary.

� The Holding Company is adopting the following accounting standards

when consolidating assets of its subsidiaries: o Equity method has to be followed for consolidation of

subsidiaries’ assets if the Holding Company is having less than 25% shares in its subsidiary.

o Proportionate method has to be followed for consolidation of subsidiaries’ assets if the Holding Company is having more than 25% shares but less than or equal to 50% shares in its subsidiary.

o Purchase/Full method has to be followed for consolidation of subsidiaries’ assets if the Holding Company is having more than 50% shares but less than or equal to 100% shares in its subsidiary.

� All the subsidiaries/entities have intercompany transactions (among themselves) i.e. they conduct transactions among themselves which need to be eliminated when their assets are consolidated with the Holding Company.

� The company prepares consolidated cash flow statement based on previous two months’ finance data.

______________________________________________________________







� The company carries forward every month’s net income from P& L statement to the next month’s opening balance in balance sheet.

� The Holding Company does the consolidation of subsidiaries’ assets based on its group’s currency - USD.

______________________________________________________________







5. Solutions Architecture:

The solution that we are demonstrating in this article makes use of SAP BW

system , our SAP BW system runs on SAP HANA in-memory database to

store, retrieve and process data in real-time. Our SAP BPC NW 10.0 system

runs on top of SAP BW.

The SAP BPC system provides various front end tools for business users to

perform planning, forecasting, consolidation, reporting and data management

functions, these font end tools are accessed via MS Office Tools and also a

web browser.

The financial data and also it’s supporting master (or dimension members)

data from various data sources and source systems can be extracted into

SAP HANA database either in real-time or in a near real-time mode as

needed.

Users can access the SAP BW system through SAP GUI – a Windows

desktop client, the SAP BW system enables users to review and manage the

collated data.

The following diagram explains our integrated consolidation solution reference

architecture, readers will learn and butter understand the various technologies

and its interfaces, including

� SAP HANA

� SAP BPC

� SAP BW

� SAP ECC

� SAP BusinessObjects

� Other Source Systems and Data Sources

______________________________________________________________







Figure – 4: Our solutions proven reference architecture

______________________________________________________________







5.1 Source Systems and Data Sources: Sample

Our solutions collect subsidiaries data from multiple systems and data sources,

including SAP GL system, Oracle GL systems and File systems. Following diagram

demonstrates our overall data flow between the source systems and the BPC

consolidation model

Figure – 4.1: Our solution source systems and data sources

______________________________________________________________







5.2: Real-Time Data Management:

We use the following technology capabilities to manage our consolidation solution

data management, data mapping, data conversion, data transformation and data

load process

Data Management Capabilities - Best Options

� #1 - SAP HANA Data Management Capabilities

� #2 - SAP BW - BI Content

� #3 - SAP BusinessObjects Data Services Capabilities

� #4 - SAP BPC Data Manager Capabilities

� #5 - SAP BW – Generic Extraction

�

Figure – 4.2: Our solution data management tools and functions

______________________________________________________________







6. Solutions Building Blocks: CubeInsights, Inc.’s

subsidiaries/entities are exporting their financial data to SAP BW. These data

are then transferred to SAP BPC cube. The Holding Company consolidates

subsidiaries’ financial data based on its accounting policy and reports the

consolidated data to Securities & Exchange Commission to comply with the

legal requirements.

# Solution Building Blocks System/Infrastructure Technical Details

1

Environment : ENV075_JUL08

An environment is a SAP BPC system artefact

An environment logically groups and organizes all the SAP BPC application components such as model, dimensions, logic, etc.

2

Model : CONSOLIDATION

Model is a SAP BPC system artefact. Model can be classified as a main model and supporting model.

A model is an SAP HANA optimized real-time info, and it holds the financial data for consolidation.

3

Model : IC_MATCHING

A model is an SAP HANA optimized real-time info, and it holds the IC data for IC matching & booking.

4

Model : OWNERSHIP

A model is an SAP HANA optimized real-time info, and it holds the Ownership data to be used for consolidation.

5

Model : RATES

A model is an SAP HANA optimized real-time info, and it holds the exchange rates data.

6

Dimensions : ACCOUNT, AUDITTRAIL, CATEGORY, ENTITY, FLOW, INTERCO, RPTCURRENCY, SCOPE, TIME, IC_AUDITTRAIL, O_ACCOUNT, INPUTCURRENCY, R_ACCOUNT, R_ENTITY

Dimension is a SAP BPC system artefact. Dimension can be of any type - . A,D,C,R,E,G,I,S,T& U.

A dimension is an SAP HANA optimized real-time info, and it holds master data such as ACCOUNT, AUDITTRAIL, etc....

7

Data Manager Packages, Scripts, Process Chains, Logic Scripts, Input Forms, Reports & Journal Templates

These are SAP BPC artefacts and used to automate running of tasks, apart from accepting the inputs from users and displaying the data to the users.

These are used to accept parameters from the users and then run logic scripts/BADIs using these parameters.

______________________________________________________________







8

Consolidation Monitor

Consolidation Monitor is an SAP BPC artefact and a new feature of SAP BPC 10.

Consolidation is used execute closing activities and monitor its status. It is also used to perform currency conversion and to set the work status for data segments.

9

Controls Monitor

Controls Monitor is an SAP BPC artefact and a new feature of SAP BPC 10.

Controls Monitor is used to run validations on data i.e. to validate the GL data.

10

Ownership Manager

Ownership Manager is an SAP BPC artefact and a new feature of SAP BPC 10.

Ownership Manager is used to create ownership structure and to accept ownership data from users. Also, it generates system proposals using the ownership data.

11

Business Rules – Methods

The Methods business rules are is a SAP BPC application artefact. Consolidation Methods definitions are stored in the BR table and are defined at the environment level.

Used to perform consolidation. (see below for more functional details)

12

Business Rules – Methods Based Multipliers

Methods Based Multipliers are a BR table and is an SAP BPC artefact. Methods based formulae are stored in this table at the environment level.

13

Business Rules – Eliminations and Adjustments

Elimination and Adjustments rules are defined at the model level and stored in this table.

14

Business Rules – Carry Forward

Carry Forward rules are defined at the model level and stored in this table.

15

Business Rules – Account Based Calculations

Account Based Calculations rules are defined at the model level and stored in this table.

16

Business Rules – Intercompany Bookings

Intercompany Bookings rules are defined at the model level and stored in this table.

17

Business Rules – US Eliminations

US Eliminations rules are defined at the model level and stored in this table.

18

Business Rules – Equity Pickup

Equity Pickup rules are defined at the model level and stored in this table.

19

Business Rules – Currency Translation

Currency Translation rules are defined at the model level and stored in this table.

Used to perform currency translation

______________________________________________________________







Assumptions (Out of Scope):

Since the scope of the article is specific to Business Rules alone, we will be

focussing only on business rules and the necessary components to implement

the business rules.

In this article, we won’t be able to explain the following key functions of

SAP BPC NW 10.0 as it’s out of scope for this article

� Journal Configuration

� Ownership Calculations

� Work Status Setup

� Business Process Flow

� Reports Generation

� Data Input Forms for Manual Data Management

� Security and Other SAP BPC NW 10.0 functions

� Without proper and quality data it’s practically impossible to implement any

business rules. Data plays a significant role in implementing business

rules, please make sure you have valid data sets before we go for any

implementation steps, data includes

� All dimension data

� All model (transaction or actuals) data

� Rate Data

� Ownership Data

� GL Posting Data

� Intercompany Data

� In this article we are not providing any sample data, it has been assumed

that the users are completely responsible for setting up their own data

� Please feel free to contact us for any help and support to implement any of

the above functions. As a community service we support you...

______________________________________________________________







7. Entity Structure:

The following diagram shows the entity structure of the Holding Company. US

and Canadian entities are part of North America region whereas Germany &

UK are part of Europe region. And, Singapore and India are coming under

Asia Pacific region. All the regions are coming under the Holding Company

which is at the top of the entity structure.

Figure – 5: Entity Structure

______________________________________________________________







8. Ownership Structure:

The following picture shows the Ownership structure for the Holding Company

– CubeInsights, Inc. The Holding Company has invested in its’ subsidiaries –

US, Singapore and Germany.

While US have invested in Canada with 70% stake and Singapore in India

with 80% stake, Germany has invested in UK with 20% stake. As for the

Holding Company, it has 80% stake in the US subsidiary, 80% stake in the

Singapore subsidiary and 90% stake in the German subsidiary.

The Holding Company uses this information to consolidate assets of its

subsidiaries and applies Purchase, Proportionate or Equity method

accordingly.

Figure – 6: Ownership Structure

______________________________________________________________







9. Business Rules: Configuration

The following table lists out the business rules along with their objectives and

sample scenarios:

BR # Business Rule Objective Sample Business Scenario 1

Methods

To define different consolidation methods based on the ownership control percentage

Business Scenario- 1: Equity, Proportionate & Purchase Methods � If the parent company has less than 25% control/stake

over the child/subsidiary, Equity method has to be used when consolidating financial assets of the parent and child.

� If the parent company has less than 50% control/stake

over the child/subsidiary, Proportionate method has to be used when consolidating financial assets of the parent and child.

� If the parent company has more than 50%

control/stake over the child/subsidiary, Purchase/Full method has to be used when consolidating financial assets of the parent and child.

2

Methods Based Multipliers

When consolidating financial assets using Purchase method, parent company’s investment in the subsidiary needs to be eliminated(i.e. zeroed). Formula defined under the Methods Based Multipliers section will be used to off-set the parent’s investment amount in the subsidiary. Off-setting of investments is done through formula defined under Methods Based Multipliers.

Business Scenario- 2 : Purchase Method � Parent Company – Holding company, has invested $

1,40,000 in its subsidiary – US. � Parent Company – Holding company, has invested $

1,30,000 in its subsidiary – SG. � Parent Company – Holding company, has invested $

1,30,000 in its subsidiary – DE(Germany). � Parent Company – SG, has invested $ 1,20,000 in its

subsidiary – IN(India). � Since Holding Company has more than 50%

stake/ownership in its subsidiaries – US, SG, DE and IN, Purchase method will be used to consolidate financial assets.

� Since purchase method is used for consolidation, parent company’s investment in the subsidiaries($5,20,000) will be off-set using formula defined under the Methods Based Multipliers section.

3

Elimination and Adjustments

To define the business rules to perform eliminations, adjustments, reclassifications and minority interest calculations.

Business Scenario- 3 : Purchase Method. � Parent Company – Holding company, has invested $

1,40,000 in its subsidiary – US. � Parent Company – Holding company, has invested $

1,30,000 in its subsidiary – SG.

______________________________________________________________







When consolidating financial assets using Purchase method, parent company’s investment in the subsidiary needs to be eliminated(i.e. zeroed). Elimination of investments is done through business rules defined under the Eliminations and Adjustments section.

� Parent Company – Holding company, has invested $ 1,30,000 in its subsidiary – DE(Germany).

� Parent Company – SG, has invested $ 1,20,000 in its subsidiary – IN(India).

� Since Holding Company has more than 50% stake/ownership in its subsidiaries – US, SG, DE and IN, Purchase method will be used to consolidate financial assets.

� Since purchase method is used for consolidation, parent company’s investment in the subsidiaries($5,20,000) will be eliminated using business rules defined under the Eliminations and Adjustments section.

4

Carry Forward

To define business rules to perform carry forward process to carry forward the closing balances for certain accounts for the current financial period to the next financial period.

Business Scenario- 4 : Closing Balances – Carry Forward � Closing balance for the Cash account for the period –

Dec, 2011, is $10,000.00 � Closing balance for the Machinery & Equipment

account for the period – Dec, 2011, is $20,000.00 � Closing balance for the Trade Receivables account for

the period – Dec, 2011, is $30,000.00 � Retained earnings for the current year - Dec, 2011, is

$10,00,0000.00

� Business Rules defined under the Carry Forward section will be used to carry forward the above closing balances for the period – Dec, 2011, to the opening balances for the next financial period – Jan, 2012.

5

Account Based Calculations

To define rules to perform account reclassifications, in particular when generating cash flow statements. To reclassify : � ‘ ANI Transfer’

account as ‘Net Income’ account

� ‘Depreciation-Machinery’ as ‘Add Back Depreciation’ account

Account based calculations rules will be used.

Business Scenario- 5 : Account Reclassification When generating cash flow statement, the company wants to reclassify the following accounts: � ‘ ANI Transfer’ account as ‘Net Income’ account � ‘Depreciation-Machinery’ as ‘Add Back Depreciation’

account Business Rules’ defined under the Carry Forward section, will be used to carry forward the above closing balances to the opening balances for the next financial period – Jan, 2012..

6

Intercompany Bookings

To define rules to book differences that arises

Business Scenario- 6 : IC Matching/Booking

______________________________________________________________







among intercompany transactions.

The entities – Holding Company, US, SG and IN, have the following intercompany transactions happened among them: � Holding Company has IC Receivables transactions

with US entity. � US entity has IC Payables transactions with the

Holding Company. � SG entity has IC Receivables transactions with India

entity. � India entity has IC Payables transactions with SG

entity. � Holding Company has IC Sales transactions with US

entity. � US entity has IC COGS transactions with the Holding � SG entity has IC Sales transactions with India entity. � India entity has IC COGS transactions with SG entity. Business Rules will be used to match these IC transactions, and to book the differences among them, if any.

7

Currency Translation

To define rules to perform currency translation from one currency to another currency. Some entities/companies may have their financial data in their local currency. But, they may have a requirement to see the data/report using their group/regional currency. Currency Translation rules perform this function.

Business Scenario- 9 : Currency Conversion from SGD to USD Singapore entity has its financial data in its local currency – Singapore Dollar. And, wants to see the data in US Dollar. The following data needs to be converted from local currency to US Dollar: � Accounts Receivable � Cash � Intercompany Receivables � Third Party Sales � Intercompany Sales � Material Cost Business Rules will be used to perform currency conversion from Singapore Dollar to US Dollar.

8

US Eliminations

To define rules to perform US eliminations for managerial accounting. US elimination rules can be run only thru the script and NOT through Consolidation Monitor.

In a managerial accounting scenario, � Group generates revenue by exchanging goods and

services among the subsidiaries/entities. � Group want to eliminate the revenue generated among

the subsidiaries. � US elimination BRs will be used to eliminate the

revenue generated among the subsidiaries.

9

Equity Pickup

A method of re-evaluating the investments owned by a holding company,

The Equity Pickup adjustment offsets the historical cost in local currency, showing the actual value of the equity owned.

______________________________________________________________







allowing the parent to realize changes in equity. This results in the holding company’s balance sheet showing the current value of the corresponding share in the equity of the subsidiary.

______________________________________________________________







10. Relationship Between Business Rules:

The following diagram shows the relationship among business rules.

� One ‘Elimination and Adjustments’ rule can have multiple ‘Methods

Based Multipliers’ rules.

� One ‘Methods Based Multipliers’ rule can have multiple ‘Methods’

rules.

Figure – 7: Relationship Among BRs

______________________________________________________________







10.1 Example: Relationship Among Business Rules

The following diagram shows the relationship among business rules with

sample data.

� One ‘Elimination and Adjustments’ rule[P2_ELCOI1] has multiple

‘Methods Based Multipliers’ rules[P2_RULE010 & P2_RULE060]

� One ‘Methods Based Multipliers’ rule [P2_RULE010] has multiple

‘Methods’ [100, 20,101 & 50].

Figure – 8: Relationship Among BRs - Example

______________________________________________________________







11 Business Rules Tables

11.1 Business Rules Table: Methods

The following picture shows the BR table meant for Methods:

Figure – 9: Methods Table

______________________________________________________________







11.1.1 Business Rules Table Columns: Methods

The following table shows columns, along with their objectives and sample

values, from Methods BR table:

BR # BR Table Column Column Objective Sample Values 1

Method Code

The Method code is a unique identifier arbitrarily defined between the value 1 and 98. The value 99 is a system reserved value representing all method code values. Method codes are referenced in the Ownership Manager as the Consolidation Methods assigned to specific Entities within a Group hierarchy.

� 20 � 50 � 100 � 101

2

Description

Description for the method code. This can be any text.

� 20 - Equity � 50 - Proportionate � 100 - Full � 101 - Holding

3

Method Type

Method Type assigns the appropriate consolidation logic to the method code with the following list of values:

D – (disposed at last year-end) E – (Equity) G – (Global) H – (Holding) L – (Leaving during the year) N – (New) P – (Proportionate)

4

Share Range

Share Range represents the share range for a given method. The consolidation method can be automatically derived by ownership calculations based on share range rules.

� 0.00<, <= 0.25 � 0.25<, <= 0.50 � 0.50<, <= 1.00

5

Applicable Percent Consolidation

Applicable Percent Consolidation holds the value (e.g. ‘100’) that needs to be copied to the Percent Consolidation (‘PCON’) as part of ownership calculations

� 30 � 50 � 100 � 100

______________________________________________________________







11.2 Business Rules Table: Methods Based Multipliers

Method Based Multipliers control how the amounts or the destination accounts should be calculated during the consolidation process. Method-based Multipliers are defined by a name (ID), a description, and a type (the type relates to the consolidation method(s) using the method-based multiplier). The calculation of consolidated data is controlled by which multiplier being used, the consolidation method assigned to the current entity, and its Intercompany partner (if applicable). The following picture shows the BR table(Header) meant for Methods Based

Multipliers:

Figure – 10: Methods Based Multipliers (Header)

The following picture shows the BR table (Details) meant for Methods Based

Multipliers:

______________________________________________________________







Figure – 11: Methods Based Multipliers (Details)

______________________________________________________________







11.2.1 Business Rules Table Columns: Methods Based

Multipliers


values, from Methods Based Multipliers BR table:

BR #

BR Table Column

Column Objective Sample Values

1

ID

To uniquely identify the BR table’s column entry

P2_RULE010

2

Description

Description can be any text.

P2_RULE010 multiplier for the methods – Equity, Proportionate & Full.

3

Entity Method

Entity Method column is used to specify a filter restriction. This Method-based Multiplier is only applied to data records where the Entity dimension member is assigned to Proportional (‘50’), Full (‘100’) and Holding (‘101’) Method Codes.

• 100 for Full method • 20 for Equity method • 50 for Proportionate method • 101 for Holding

4

IINTCO Method

INTCO Method column is also used to specify a filter restriction. This Method-based Multiplier is only applied to data records where the INTCO dimension member is assigned to Proportional (‘50’), Full (‘100’) and Holding (‘101’) Method Codes.

• 99 – Intercompany members with any method

• 20,100 – Intercompany members with 20 & 100 method codes

5

ALL Formula

“ALL Formula” column has a corresponding and matching column in the Business Rules configuration for “Eliminations and Adjustments”. In the “Eliminations and Adjustments” Business Rules configuration, the “ALL Formula” column contains one or many Account dimension members. The formula in the Method-based Multiplier is applied to the amounts stored on these Account dimension Members.

• 1 : Extract the singed data value as is(100%)

• POWN : Extract POWN% of signed data

• 1 – POWN : Extract (1 – POWN%) value of the signed data.

______________________________________________________________







6

Group Formula

Group Formula column has a corresponding and matching column in the Business Rules configuration for “Eliminations and Adjustments”. In the “Eliminations and Adjustments” Business Rules configuration. the “Group Formula” column contains one or many Account dimension members. The formula in the Method-based Multiplier is applied to the amounts stored on these Account dimension members. For consolidation of investments, the group column is used for group share interests calculation and postings to equity. For intercompany eliminations, this field is used for the offsetting clearing account. As a result, this formula is exactly the same as the “ALL Formula” column.

• 1 : Extract the singed data value as is(100%)


• 1 – POWN : Extract (1 – POWN%) value of the signed data.

7

Minority

‘ Minority’ column has a corresponding and matching column in the Business Rules Configuration for “Eliminations and Adjustments”. In the “Eliminations and Adjustments” Business Rules configuration. The “Minority” column contains one or many Account dimension members. The formula in the Method-based Multiplier is applied to the amounts stored on these Account dimension members.

• 1: Extract the singed data value as is (100%)


• 1 – POWN: Extract (1 – POWN %) value of the signed data.

8

Remark

To capture the remarks or documentation or User instructions

� Method code 100

______________________________________________________________







11.2.1.1 Example: BR in Action (Step By Step Execution)

The following steps show the BR executions while financial assets of two

entities are consolidated using Purchase/Full method.

� The following step shows how the parent’s investment made in the

subsidiary has been offset by using Purchase method as the Parent has

more than 50% stake in the subsidiary

� As per the parent entity’s accounting policy, parent’s investment (AST005)

in the subsidiary has to be eliminated i.e. zeroed when Purchase method is

applied for consolidation.

� When consolidation process is run from consolidation monitor or

through the script, the following steps are executed:

Step # Task 1

Data source (Appendix-A) is read for the account AST005 (Investment Account-Purchase), and the values for parent entity (Holding Company), subsidiary/INTCO (I_US) and signed data has been identified and recorded for subsequent processing.

2

For the investment account (Purchase), parent entity has been identified and recorded for subsequent processing (Holding Company). This parent entity has stake in the subsidiary (I_US).

3

For the investment account (Purchase), subsidiary/INTCO is noted (I_US) in the data source. This is the subsidiary wherein the parent (Holding Company) has stake.

4

Singed data (amount invested) is noted ($140000). This is the amount the parent has invested in the subsidiary. During consolidation, this amount will be adjusted depending on the control the parent exercises over the subsidiary.

5

Now, the system looks for the base level entity (Holding Company) within the Ownership hierarchy.

6

System looks for the base level entity (I_US) in the Ownership Hierarchy.

______________________________________________________________







7

And, then the system looks for the common parent for both entities – Holding Company and I_US. In this case, it is the top level entity – S_World.

8

Now, for the group – S_World, the system looks for ownership data with the Entity as Holding Company on the right hand side.

9

For the entity – Holding Company, current consolidation (101 - Holding) method has been identified and recorded.

9.1

System goes through the BR table for Elimination and Adjustments rules, and looks for record/rule with AST005 as Source account.

9.2

For the Source account – AST005, Destination account (AST005) is noted. This is the account to which, the final adjusted amount will be posted.

9.3

Multiplier ID has been identified and recorded (P2_RULE060). Formula in this rule will be applied to the amount read from the data source and the final amount will be posted under the Destination account.

10

System now goes through the Methods Based Multipliers BR table and looks for the record/rule corresponding to the ID: P2_RULE060. It then looks for a record with the entity method as 101. This is the entity method read at Step 9.

11

System looks for the column corresponding to the column noted in Step 9.2(Destination All Account) i.e. All Formula column.

12

For the entity method – 101, and Formula (1) under the All Formula is now identified and recorded for subsequent processing.

13

Signed data noted in Step 4($140000) is multiplied by the formula (1) and posted to the Destination account has been identified and recorded in Step 9.2(AST005). Steps 1 through 13 are applied to other records with AST005 as the accounts in the CSV file and amount is posted. And the final posted/offset amount is: $520,000.

______________________________________________________________







______________________________________________________________







Below screen image shows the steps that are explained in the above

table in a sequence, please follow the sequence number and then

compare the table above.

Figure – 12: Business Rules in Action

______________________________________________________________







11.3 Business Rules Table: Eliminations and Adjustments

The following picture shows the BR table (General section) meant for

Eliminations and Adjustments:

Figure – 13: Eliminations and Adjustments- General View

______________________________________________________________








values, from Eliminations and Adjustments BR table(General Section):

BR #

BR Table Column

Column Objective

Sample Values

1

ID

Logical ID used to identify the rule in the Elimination and Adjustments BR table.

� P2_ELCOI1 � P2_ELCOI2 � P2_ELCOI3

2

Description

Description of the logical ID, which is used to identify the rule in the Elimination and Adjustments BR table.

� P2_ELCOI1 � P2_ELCOI2 � P2_ELCOI3

3

Source Audit

Used to filter the data source records. If specified, BR will be applied to those records with that particular data source. If left blank, all the records will be processed and BRs will be applied accordingly.

� Journal � INPUT_DATA

4

Destination

Audit

Destination data source member. If specified, final amount to be adjusted/offset will be written under this data source. If not specified, final amount to be adjusted/offset will written under the Source data source.

� AJ_COI1 � AJ_COI2 � AJ_COI3

6

Group Type

Filter

The CONSO_TYPE property value from the Groups (Currency) dimension. If, for example, you have the GROUP GROUP1 with conso_type = A, all the Automatic Eliminations with Blank are available for all groups. The Automatic Eliminations with Group_filter member = A are available for GROUP1 and all groups with Group filter member = A.

� A - A

7

Entity

Property Filter

This field is only used for intercompany eliminations. If this field contains a value, the system looks for the existence of a corresponding PROPERTY in the ENTITY dimension, and only performs the elimination if the ENTITY. The INTCO partner has the same value in this property.

� OWNER � INTCO � HIR � CALC � CURRENCY � CONTROL_LEVEL

8

Adjustment

Type

Used to specify the adjustment type. This type can be Equity, Proportionate, New Company or Leaving method. Else, if adjustment type has to be other than these four,

� E – (Equity) � P –

(Proportionate)

______________________________________________________________







leave this field as blank. � N – (New Company)

� L – (Leaving Company)

9

Adjustment

Level

This field must contain an integer value ranging from 0 to 99 and can be used to order the sequence of execution of the various ELIM rules, if desired.

� 0 � 1 � 2 � 3

10

Other

Dimensions Filter

This field can be used to define a filter controlling the region where the elimination can be applied. It can contain the following values:

• Blank (No Filter)

• An expression defining one or more filters. These can be applied to any combination of the following information:

o The SIGNEDDATA amount (example: SIGNEDDATA> 10)

o Any ACCOUNT of the OWNERSHIP cube (example: METHOD = 85)

o Any ACCOUNT of the OWNERSHIP cube as defined in Prior period (example: PPOWN <>0, where PPOWN is Prior period’s POWN account)

o Any ACCOUNT of the OWNERSHIP cube as assigned to the INTER_COMPANY partner (example: I_POWN < POWN)

The filters can be concatenated with the AND operand. Alternatively, any valid SQL expression filtering the values in any desired way can be used. In this case the syntax must strictly comply with SQL requirements, for example single quotes around the members IDs.

� Blank(No Filter) � SINGEDDATA > 10 � METHOD = 101 � PPOWN <>0 � I_POWN < POWN

11

Force Destination Members

This field can be used to enforce the destination member of any dimension existing in the MAIN cube.

This field may contain the following values:

• Blank (No Change)

• An expression enforcing the value for one or more dimensions

______________________________________________________________







of the MAIN cube. Each dimension must be separated by a comma (example: CATEGORY=BUDGET, ENTITY= NewYorkBranch)

12

Ownership Filter

Filters the ownership value

For example, to apply a rule to only those entities whose ownership percentage in a group or scope is larger than 70%, you enter POWN > 0.7.

The following picture shows the BR table (Details section) meant for

Eliminations and Adjustments:

Figure – 14: Eliminations and Adjustments- Detail View

______________________________________________________________







11.3.1 Business Rules Table Columns: Eliminations and

Adjustments


values, from Eliminations and Adjustments BR table (Details Section):

BR #

BR Table Column

Column Objective

Sample Values

1

ID

Logical ID to identify the eliminations and adjustments rule

� ELIM_RULE1

2

Description

Description of the eliminations and adjustments rule

Rule to offset the investment made by the parent in the subsidiary.

3

Source Account

Select accounts to include. Use a base or parent member, or a TYPEELIM or DIMLIST property value

� AST001 � AST002 � AST003 � AST004 � AST005

4

Source Flow

Select flow members to include. Use a base or parent member, or a TYPEELIM or DIMLIST property value

� Balance � Increase � Opening � Decrease � Blank(all records will

be processed)

5

Reverse Sign

Reverse the sign of the data based on account type

� Checked or not

checked box

6

Destination All Account

Target account for the All Formula percentage in the Method - Based Multiplier table. Use a base or parent member, or a TYPEELIM or DIMLIST property value


7

Destination Group Account

Target account for the Group Formula percentage in the Method - Based Multiplier table. A base or parent Account, a TYPEELIM or DIMLIST

� AST001 � AST002 � AST003 � AST004

______________________________________________________________







property value in the account dimension � AST005

8

Destination Minority

Target account for Minority Formula percentage in the Method - Based Multiplier table. A base or parent Account, a TYPEELIM or DIMLIST property value in the account dimension


9

Destination Equity Account

Target account for the All Formula percentage in the Method - Based Multiplier table for the EquityMethod. A base or parent Account, a TYPEELIM or DIMLIST property value in the account dimension


10 Destination Flow

Target base level flow member

� Balance � Increase � Opening � Decrease � Blank(all records will

be processed)

11

Multiplier

The Rule ID from the Method - Based Multiplier table

� P2_RULE010 � P2_RULE020

12

Force Closing

If Y it generates an extra record on the closing flow, otherwise leave blank

� Checked � Unchecked

13

Swap Entity INTCO

If Y, it will swap the member of the Entity dimension with the intercompany member


14

Force INTCO Member

To hard code the target intercompany member instead of using the source


15

Periodic CALC

Can be used in a YTD Model (or an application) when the ownership percentage should be applied on the periodic values


16

Remark

Remark text about the rule.

Eliminations and adjustments rules.

______________________________________________________________







11.4 Business Rules Table: Carry Forward

The following picture shows the BR table meant for Carry Forward:

Figure – 15: Carry forward business rule

______________________________________________________________







11.4.1 Business Rules Table Columns: Carry Forward


values, from Carry Forward BR table:

BR #

BR Table Column

Column Objective

Sample Values

1

Source Account

To identify the base/parent level accounts to which the BRs are to be applied. This can also be DIMLIST property of accounts. DIMLIST allows accounts to be grouped and selected for BRs to be applied.

� BS111 � BS121 � BS122 � BS231

2

Source Flow

To identify the base/parent level Flow members for which, BRs are to be applied. This can also be DIMLIST property which allows Flow members to be grouped and selected for BRs to be applied.

� Balance � Opening � Increase � Decrease

3

Source Audit

To identify the base/parent level data source members for which, BRs are to be applied. This can also be DIMLIST property which allows data source members to be grouped and selected for BRs to be applied.

INPUT_DATA

4

Destination Account

The destination account - base level or parent. If blank, inherit from source.

� BS111 � BS121 � BS122 � BS231

5

Destination Flow

The destination flow - base level or parent. If blank, inherit from source.

� Balance � Opening � Increase � Decrease

6

Destination Audit

The destination data source - base level or parent. If blank, inherit from source.

� INPUT_DATA � ADJ_BCF

7

Reverse Sign

Reverse the sign of the source value based on an account type


______________________________________________________________







8

Audit Type

Select data source type to include: A - All, I - Input, M - Manual

� A – (All) � I – (Input) � M – (Manual

Journal)

9

Same Period

If selected, the source time period is the same as the destination. Otherwise, the source data is the last period of the prior year

� Checked (source

time period is same as destination time period)

� Unchecked(source data is the last data of the prior year)

10

Apply To YTD

In a periodic model, select to calculate the YTD value to copy

� Checked (to

calculate YTD value to copy)

� Unchecked

11

Remark

Remark text about the carry forward rule.

Remark text

______________________________________________________________







11.5 Business Rules Table: Account Based Calculations

The following picture shows the BR table meant for Account Based

Calculations:

Figure – 16: Account Based Calculations Business Rules

______________________________________________________________







11.5.1 Business Rules Table Columns: Account Based

Calculations


values, from Account Based Calculations BR table:

BR #

BR Table Column

Column Objective

Sample Values

1

ID

Logical ID used to identify the rule in the Account Based Calculations BR table.

CF

2

Description

Description of the logical ID, which is used to identify the rule in the Account Based Calculations BR table.

Cash Flow Calculations

3

Source Account

The source account base level, parent, or dim list property value

� PL700 � AST002 � LEQ002

4

Category

The source category - base level, parent, or DIMLIST property value

� Actual � Plan

5

Source Flow

The source flow base level, parent, or dim list property value

� � Balance � Opening

6

Source Audit

The source data source base level, parent, or dim list property value

� � TOTAL_ADJ � AJ_COI1 � AJ_COI2 � AJ_COI3

7 Destination Account

The destination account base level or parent. If blank, inherit from source.

� � CF101 � CF102 � CF103 � CF104

8

Destination Category

The destination category - base level, parent, or property value

� Actual � Plan

9

Destination Flow

The destination flow - base level or parent. If blank, inherit from source.

� Balance � Opening

The destination data source - base

� TOTAL_ADJ

______________________________________________________________







10 Destination Audit level or parent. If blank, inherit from source.

� AJ_COI1 � AJ_COI2 � AJ_COI3

11

Reverse Sign

Reverse the sign of the source value based on account type (ex: INC , EXP, AST, etc)


12

Source Period

If not specified, the source time period is the same as the destination. This could also be used in planning scenarios.

-1

13

Source Year

If not specified, the source year is the same as the destination. This could also be used in planning scenarios.

� 2011 � 2012

14

Force INTCO Member

To hard code the target intercompany member instead of using the source

� Checked or

Unchecked

15

Apply To YTD

In a periodic model, select to calculate the YTD value to copy. This could also be used in planning scenarios.

� Checked or

Unchecked

16

Level

This controls the sequence of execution for each row/rule.

� 0 � 1 � 2

17

Remark

Remark text

� Remark text

______________________________________________________________







11.6 Business Rules Table: Intercompany Bookings

The following picture shows the BR table meant for Intercompany Bookings:

Figure – 17: IC Bookings Business Rule

______________________________________________________________







11.6.1 Business Rules Table Columns: Intercompany

Booking


values, from Intercompany Bookings BR table:

BR #

BR Table Column

Column Objective

Sample Values

1

ID

Logical ID used to identify the rule in the Intercompany Bookings BR table.

BS_ACCT

2

Description

Description of the logical ID, which is used to identify the rule in the Intercompany Bookings BR table.

Parent Matching

3

Type

Determines whether the buyer or seller receives thedifference. • S - Seller: Buyer receives the difference • B - Buyer: Seller receives the difference • G - Greatest: Entity with the greatest amount receives the difference

S B G

4

Other Destination Dimension

Target dimension member other than account, flow, and intercompany.

Blank

5

Booking Destination

Target data source to which, the difference is to be posted.

ICDIFF

6

Max. Booking Amount

The limit of the balancing entry. Differences above this amount will not be posted.

100000

7

Debit Account Debit account for the difference ICDIFFERENCE

8

Debit INTCO Debit intercompany for the difference I_US

Credit Account Credit account for the difference LEQ008

______________________________________________________________







9 10

Credit Flow

Debit flow for the difference

Balance

11

Credit INTCO Credit intercompany for the difference I_US

12

Remark Remark text about the IC booking rule. Remark text

______________________________________________________________







11.7 Business Rules Table: US Eliminations

The following picture shows the BR table meant for US Eliminations:

Figure – 18:US Eliminations Business Rule

______________________________________________________________







11.7.1 Business Rules Table Columns: US Eliminations


values, from US Eliminations BR table:

BR #

BR Table Column

Column Objective

Sample Values

1

Elimination ID

ID used to identify the elimination rule.

ICELIM

2

Source Audit

This can be a base level or parent data source member. Dim list property can also be used to filter members.

INPUT_DATA

3

Destination Audit

The destination data source base level or parent. If blank, inherit from source.

US_ELIM

4

Remark

Remark text

US elimination

______________________________________________________________







11.8 Business Rules Table: Currency Translation

The following picture shows the BR table meant for Currency Translation:

Figure – 19: Currency Translation Business Rule

______________________________________________________________







11.8.1 Business Rules Table Columns: Currency

Translation


values, from Currency Translation BR table:

BR #

BR Table Column

Column Objective

Sample Values

1

ID

Rule ID

AVG

2

Description

Description of the rule.

Average Rate

3

Source Flow

The Source Flow column is used to restrict the currency translation of average rate to one or many Flow dimension members. In this exercise, the currency translation for ‘AVG’ rate types is restricted to closing balance (“Balance” source flow) records

Balance Opening Increase Other

4

Destination Account

The Destination Account column is used to specify which account to post the currency translation results to. When left blank the destination account is the same as the source account.

AST001 AST002 AST003 LEQ001 LEQ002 LEQ003

5 Destination Flow The Destination Flow column is used to specify which flow to post the currency translation results. When left blank the destination flow is the same as the source flow.

Balance Opening Increase Other

6

Formula

Formula. Formula syntax exists to perform mathematical operations. In this case, the first formula is simply to find the AVG rate type in the Rate Model and use it in the currency translation calculation to translate local currency records (reporting currency ‘LC’) into group and reporting currency records. The second formula, [COPYLC], copies the current records LC values for any Entity defined with a FX_TYPE property value of “US”.

[AVG] [COPYLC]

______________________________________________________________







7

Force Closing

The Force closing column will automatically carry forward the calculation into the closing flow. Since this rule only applies to the closing flow (i.e. Source Flow = ‘Balance’), this flag is left blank. Otherwise, records would double up.

Checked Unchecked

8

Periodic Calc

The Periodic Calc column is used to restrict the currency translation to a period movements instead of a year-to- date accumulated amounts within a Reporting Model that is defined with a “Data Entry Mode” as ‘YTD’.

Checked Unchecked

9

Entity FX Type

The Entity Fx Type column is used to restrict currency translation to a specific Entity based on the property “FX_TYPE” in the Entity dimension.

US

10

Remark

Remark text

Remark text

______________________________________________________________







12. Business Rules: Implementation

12.1 Business Scenario – 1: Implementation

Business Scenario - 1:

� If the parent company has less than 25% control/stake over the

child/subsidiary, Equity method has to be used when consolidating

financial assets of the parent and child.

� If the parent company has less than 50% control/stake over the

child/subsidiary, Proportionate method has to be used when

consolidating financial assets of the parent and child.

� If the parent company has more than 50% control/stake over the

child/subsidiary, Purchase/Full method has to be used when

consolidating financial assets of the parent and child.

Business Rules Implemented:

� Business Rules for Methods(BR #1) will be configured to implement the

above.

______________________________________________________________







[A]. Launch SAP BPC web admin. Interface.

______________________________________________________________







[B]. Go to Rules section.

______________________________________________________________







[C]. Select Business Rules link.

______________________________________________________________







[D]. Click Methods link.

______________________________________________________________







[E]. Enter the data as shown below and save the data.

______________________________________________________________







12.2 Business Scenario – 2 & 3 : Implementation

Business Scenario – 2 & 3:

� Parent Company – Holding company, has invested $ 1, 40,000 in its

subsidiary – US.


subsidiary – SG.


subsidiary – DE (Germany).

� Parent Company – SG has invested $ 1, 20,000 in its subsidiary – IN

(India).

� Since Holding Company has more than 50% stake/ownership in its

subsidiaries – US, SG, DE and IN, Purchase method will be used to

consolidate financial assets.

� Since purchase method is used for consolidation, parent company’s

investment in the subsidiaries ($5, 20,000) will be off-set using formula

defined under the Methods Based Multipliers section.


� Business Rules for Method Based Multipliers(BR #2) and Business

Rules for Elimination and Adjustments(BR #3) will be configured to

implement the above.

______________________________________________________________







[A]. Ensure that the data for Dec, 2011 is uploaded into SAP BPC server and

currency conversion is done on the data.

[B]. Go to Home workspace.

______________________________________________________________







[C]. Go to Ownership manager as shown below:

______________________________________________________________







[D]. Key-in Ownership data for the period – Dec, 2011, as shown below:

______________________________________________________________







[E]. Launch web admin interface.

______________________________________________________________







[F]. Go to Business Rules – Methods section as shown below:

______________________________________________________________







[G]. Create Methods data as shown below:

______________________________________________________________







[H]. Go to Methods Based Multipliers section.

______________________________________________________________







[I]. Create a rule under Methods Based Multipliers section as shown below:

______________________________________________________________







[J]. Go to Eliminations and Adjustments section.

______________________________________________________________







[K]. Create a rule under Eliminations and Adjustments as shown below:

______________________________________________________________







______________________________________________________________







[L]. Go to Home workspace.

______________________________________________________________







[M]. Click Consolidation Monitor.

______________________________________________________________







[N]. Specify the data context as shown below:

______________________________________________________________







[O]. Highlight the top level group and run Consolidation process.

______________________________________________________________







[P]. Click OK button on the following screen.

______________________________________________________________







[Q]. The following report shows the data after consolidation. In the report,

Investments made under Purchase method for all the entities have all been

off-set(highlighted in RED colour).

______________________________________________________________









� Closing balance for the Cash account for the period – Dec, 2011, is

$10,000.00

� Closing balance for the Machinery & Equipment account for the period

– Dec, 2011, is $20,000.00

� Closing balance for the Trade Receivables account for the period –

Dec, 2011, is $30,000.00

� Retained earnings for the current year - Dec, 2011, is $10,00,0000.00

� Business Rules defined under the Carry Forward section will be used to

carry forward the above closing balances for the period – Dec, 2011, to

the opening balances for the next financial period – Jan, 2012..


� Business Rules for Carry Forward (BR #4) will be configured to

implement the above.

______________________________________________________________







[A]. Launch SAP BPC web admin. interface.

______________________________________________________________







[B]. Create a model(BCF_DEMO) as shown below:

______________________________________________________________







[C].Go to Business Rules section in the web admin. interface as shown below:

______________________________________________________________







[D]. Highlight the model on the right hand side as shown below:

.

______________________________________________________________







[E]. Click the Add/Remove Rule Types button at the top.

______________________________________________________________







[F]. Enable the Carry-Forward rule as shown below:

______________________________________________________________







[G]. Go to BR section and click on the Carry- Forward link for the BCF_DEMO

model.

______________________________________________________________







[H]. Create business rules for Carry-Forward as shown below.

______________________________________________________________







[I]. Go to the Logic Scripts section now.

______________________________________________________________







[J]. Click on BCF_DEMO link as shown below:

______________________________________________________________







[K]. Create a logic script(if it does not exist) to call Carry-Forward BADI as

shown below.

______________________________________________________________







[L]. Go to Home workspace and launch Excel add-in for MS Office:

______________________________________________________________







[M]. In the Connection Manager window, choose the connection to

BCF_DEMO model and click OK button.

______________________________________________________________







[N]. Click on Data Manager menu.

______________________________________________________________







[O]. Click on Organize Package List.

______________________________________________________________







[P]. Create a DM package script which calls the Carry-Forward logic

script(COPY_OPENING_LGF).

______________________________________________________________







[Q].Click on EPM menu now.

______________________________________________________________







[R]. Create an input form to accept closing balances for the accounts BS122,

BS121, BS111, BS231 & BS232- .

______________________________________________________________







[S]. Key in the data in the input form and save it.

______________________________________________________________







[T]. Now, run the DM package with the following inputs.

______________________________________________________________







[U]. Click Finish button now.

______________________________________________________________







[V]. Carry-Forward BADI is run and balances are carried forward now.

Refresh the following INPUT form/report to see the carried-forward balances.

______________________________________________________________







12.4 Business Scenario – 5 : Implementation


� When generating cash flow statement, the company wants to reclassify

the following accounts:

o ‘ ANI Transfer’ account as ‘Net Income’ account

o ‘Depreciation-Machinery’ as ‘Add Back Depreciation’ account

� Business Rules’ defined under the Accounts Based Calculations

section, will be used to reclassify the above accounts.


� Business Rules for Account Based Calculations(BR #5) will be

configured to implement the above.

______________________________________________________________







[A]. Launch SAP BPC web admin. interface.

______________________________________________________________







[B]. Create a model(RECLASSIFY_DEMO) as shown below:

______________________________________________________________







[C]. For the model, enable the Account Based Calculations BR.

______________________________________________________________







[D]. Go to BR section and click on the Account Based Calculations link for the

RECLASSIFY_DEMO model.

______________________________________________________________







[E]. Create BRs for Account Based Calculations as shown below.

______________________________________________________________







[F]. Go to Logic Scripts section and click on RECLASSIFY_DEMO link.

______________________________________________________________







[G]. Create a logic script to call Account Based Calculations

BADI(CALCACCOUNT.LGF).

______________________________________________________________







[H]. Go to Home workspace and launch Excel add-in for MS OS Office.

______________________________________________________________







[I]. In the Connection Manager window, choose the connection to

RECLASSIFY_DEMO model.

______________________________________________________________







[J]. Click Data Manager menu and then click Organize Package List sub-

menu.

______________________________________________________________







[K]. Create a DM package script which calls the Account Based Calculations

logic script.

______________________________________________________________







[L]. Create an input form to accept data for the accounts 30527140,

39000000, CF901 & CF902.

______________________________________________________________







[M]. Key in the data in the input form as shown below and save it.

______________________________________________________________







[N]. Now, run the DM package with the following inputs.

______________________________________________________________







[O]. Refresh the input form to see the Account Based Calculations results.

______________________________________________________________








Business Scenario – 6 – IC Matching/Booking:

The entities – Holding Company, US, SG and IN, have the following

intercompany transactions happened among them:

� Holding Company has IC Receivables transactions with US entity.

� US entity has IC Payables transactions with the Holding Company.

� SG entity has IC Receivables transactions with India entity.

� India entity has IC Payables transactions with SG entity.

� Holding Company has IC Sales transactions with US entity.

� US entity has IC COGS transactions with the Holding

� SG entity has IC Sales transactions with India entity.

� India entity has IC COGS transactions with SG entity.

Business Rules will be used to match these IC transactions, and to book the

differences among them, if any.

______________________________________________________________







1) Create a model(Consolidation) of type – consolidation, as shown below:

______________________________________________________________







2) Create a model(IC_Matching) of type – Financial, as shown below:

______________________________________________________________







3) create a model(Rates) of type - Exchange Rates, as shown below:

______________________________________________________________







4) Create a model(Ownership) of type Ownership as shown below:

______________________________________________________________







5) Configure AUDITTRAIL DIM for consolidation model as follows:

______________________________________________________________







6) Create an input form to collect exchange rates data for Dec, 2011. We

will use this a little later.

______________________________________________________________







7) Create an input form to collect ownership data for all the entities for the

period - Dec 2011. We will use this a little later.

______________________________________________________________







8) Create a DM script, package and logic script to export IC transactions

from Consolidation to a separate model – IC_Matching. We run this a

little later.

______________________________________________________________







______________________________________________________________







9) Create a DM script, package and logic script to import booked IC

transactions back into Consolidation model. We will run this a little later.

______________________________________________________________







______________________________________________________________







10) Configure IC_AUDITTRAIL DIM as follows: This will be used by

the Consolidation model.

______________________________________________________________







11) Create a logic script to export IC transactions to a separate

model(IC_Matcing). We will use this a little later.

______________________________________________________________







12) Create a logic script to export IC transactions from IC_Matching

model into Consolidation model. We will use this a little later.

______________________________________________________________







13) Create BR to perform currency conversion on IC transactions

alone, within the IC_Matching model. We will use this a little later.

______________________________________________________________







______________________________________________________________







______________________________________________________________







14) Create BR to perform currency conversion on the GL

data(complete set). We will use this a little later.

______________________________________________________________







______________________________________________________________







______________________________________________________________







15) Create a DM package script, process chain and logic script to

match IC transactions.

______________________________________________________________







______________________________________________________________







16) Create a DM package script, process chain and logic script to

book IC transactions.

______________________________________________________________







______________________________________________________________







17) Create a report to review IC transactions within the IC_Matching

model. We will use this a little later.

______________________________________________________________







18) Create a report to verify currency conversion process after

currency conversion is performed on IC transactions. We will use this a

little later.

______________________________________________________________







19) Create a report to view matching IC transactions. We will use this

a little later.

______________________________________________________________







20) Create a report to view booked IC transactions. We will use this a

little later.

______________________________________________________________







21) Create a report to view data after group currency conversion is

performed on the GL data. We will use this a little later.

______________________________________________________________







22) Create a report to view consolidated report after regional

consolidation is done. We will use this a little later.

______________________________________________________________







23) Create a report showing consolidated BS statement after group

consolidation is performed. We will use this a little later.

______________________________________________________________







24) Upload the GL data shown below.

______________________________________________________________







25) Run DM package to import GL data into consolidation model.

______________________________________________________________







______________________________________________________________







______________________________________________________________







26) Collect exchange rates data for the period - Dec, 2011 through

the input form created(in step 6) earlier.

______________________________________________________________







27) Collect ownership data thru the input form created(in step 7)

earlier for the period – Dec, 2011.

______________________________________________________________







28) Generate consolidation methods based on ownership data

collected earlier(in step 27).

Note that the consolidation methods in the Current column will be used

for consolidation. For CA entity, Proportionate method will be used even

though the system suggested Full method. This is because the user

has manually changed, to Proportionate method, the system

suggested proposal.

______________________________________________________________







29) Run DM package(in step 8) to export IC transactions to a

separate model.

______________________________________________________________







______________________________________________________________







30) Review the IC transactions through the report(in step 17) created

earlier.

______________________________________________________________







31) Perform currency conversion on IC transactions as shown below

using BR created in step 13:

______________________________________________________________







______________________________________________________________







32) View the report (created in step 18) showing IC transactions

records after currency conversion is performed.

______________________________________________________________







33) Run DM package(created in step 15) which runs IC matching

process as shown below:

______________________________________________________________







______________________________________________________________







34) View the report(created in step 19) showing matching IC

transactions as shown below:

______________________________________________________________







35) Run DM package(created in step 16 ) which runs IC booking

process as shown below:

______________________________________________________________







36) View the report(created in step 20) showing booked IC

transactions as shown below:

______________________________________________________________







37) Run logic DM package(created in step 9) to export booked IC

transactions into consolidation model from IC_Matching model.

______________________________________________________________







12.6 Business Scenario – 7 : Implementation

Business Scenario – 7 – Currency Conversion :

Singapore entity has its financial data in its local currency – Singapore Dollar.

And, wants to see the data in US Dollar

The following data needs to be converted from local currency (SGD) to US

Dollar:

� Accounts Receivable

� Cash

� Intercompany Receivables

� Third Party Sales

� Intercompany Sales

� Material Cost

Business Rules will be used to perform currency conversion from Singapore

Dollar to US Dollar.

______________________________________________________________







1. Configure the following accounts in the Account DIM to make sure that

BS accounts are using CLOSING(CLO) conversion rate whereas PL

accounts are using AVERAGE(AVG) rate:

a. BS121

b. BS122

c. BS123

d. PL010

e. PL020

f. PL110

Similarly, configure the other accounts too.

______________________________________________________________







2. Create a model - CONVERSION_DEMO, of type Financial.:

______________________________________________________________







3. Create an input form to accept conversion rates for AVG and CLO rate

types.

______________________________________________________________







4. Create an input form to accept data for the accounts - BS121, BS122,

BS123, PL010, PL020 & PL110.

______________________________________________________________







5. Create a DM package, process chain and logic script to perform

currency conversion on the model - CONVERSION_DEMO. Create BRs

for currency conversion for the model – CONVERSION_DEMO

______________________________________________________________







______________________________________________________________







______________________________________________________________







6. Collect conversion rates for AVG and CLO.

______________________________________________________________







7. Collect data for the accounts - BS121, BS122, BS123, PL010, PL020 &

PL110 .

______________________________________________________________







8. Now, run the DM package created in step 5.

______________________________________________________________







9. Open an input form created in step 4 and refresh it. USD column shows

the converted data.

______________________________________________________________







13. Appendix-A – Data Source

Our solutions use many source systems and its data sources, including

� SAP ECC GL System

� Oracle GL System

� JDE GL System

� File

Our data management activities are carried out by using SAP HANA, SAP BW, SAP

BO Data Services and SAP BPC Data Manager Capabilities

Our data file layout – Sample

______________________________________________________________







13. Appendix-A – Data Source File (Contd.):


______________________________________________________________









______________________________________________________________









______________________________________________________________









______________________________________________________________








Our data file layout – Sample (Contd.)

______________________________________________________________








Our data file layout – Sample (Contd.)

______________________________________________________________







13. Appendix-B – Consolidated Balance Sheet

Our consolidation solutions creates many consolidated financial statements

and financial close packet reports, including

� Consolidated P&L

� Consolidated Balance Sheet

� Consolidated Cash Flow

� Consolidated GL Account Balance at Entity Level

� Cost Allocation at WBS Level

� Cost Allocation at Cost Center Level , etc

Consolidated Balance Sheet - Sample

______________________________________________________________







14. Disclaimer:

This article is a preliminary version and not subject to a license agreement or any other agreement with SAP®. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this preview is subject to change and may be changed by SAP at any time without notice. Either SAP or we assume no responsibility for errors or omissions in this document. Either SAP or we does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This preview is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. Either SAP or we shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected.

______________________________________________________________







15. SAP Community Contributors:

Author : Chief Architect :

Murugesan Annamalai Jothi Periasamy SAP Project Manager/ Lead SAP HANA/EPM/BI/EIM Community Leader

SAP EPM/BPC Solutions Lead SAP BPC/BOBJ/BI/MDM Domain Champion [email protected] [email protected], (916)-296 0228 - Cell

As always, we appreciate your help and support in growing SAP HANA/EPM/BI/EIM community. Don’t hesitate to contact us for on any of your needs, including: � SAP BPC NW 10.0 Design guidelines � SAP BPC NW 10.0 Leading practices � SAP BPC NW 10.0 “end-to-end” implementation

� Rolling Forecast � Planning � Budgeting � SKU-Level/Top-Down Planning � Consolidation / Financial Close � Analytics � Data Management � SAP HANA

� etc.

Education

SAP BPC NW 10.0 on HANA - Consolidation Business Rules- Implementation Guide