SAP Presentation

Learn how to gain enhanced analysis capability

with US Eliminations in SAP BPC

Paul Rafferty, eBay PayPal Vish Arunachalam, Perceptive Technologies

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Real Experience. Real Advantage.

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Todays speakers

Paul Rafferty SAP Functional Lead

eBay PayPal

[email protected]

www.ebayinc.com

Vish Arunachalam Principal, EPM AdvantageFinance

Perceptive Technologies

[email protected]

www.perceptinc.com

AdvantageFinance


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Learning Points

Learn what it takes to enable enhanced analysis capability with US eliminations in BPC

Get real-world tips and lessons learned with designing US Eliminations in BPC

Understand typical challenges faced during intercompany elimination analysis while using US eliminations in BPC


[ SAP Components & Application Integration

EPM Legal and Managerial Consolidations BPC NW

BW- Data storage, Infoproviders,

Meta Data and Master Data

ECC - ERP NonSAP Data

Planning, Analysis and

Reporting

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[ 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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[ Intercompany US Elimination: Basics

When reporting the financial results of a group of entities, BPC identifies Intercompany activities and balances and

posts entries so these activities and balances are fully

eliminated when looking at the overall results for the

group

Intercompany elimination entries should be reflected only in groups in which both the entity and the partner entity

are part of the group

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[ US Eliminations

BPC US Elimination process addresses simple intercompany requirements in financial application, where

a full legal consolidation application is not required

Multiple lower level legal entities related data is eliminated at first common parent

Consolidation Task US widely used Intercompany Elimination uses:

Process Chain /CPMB/IC_ELIMINAT ION

Script Logic ICELIM.LGF

Business Rule Table US Elimination

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[ 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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[ Illustration: IC Elimination

All eliminations between X, Y, M and N are eliminated at Elimination Entity A

Reconciliation is a challenge when too many children roll up under a single parent elimination entity

Parent A

Elimination Entity A

Legal entity X

Legal entity Y

Legal entity M

Legal entity N

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[ Illustration: IC Transaction Basic Design

Entity

Datasource

Period

Account

Trading

Partner

Amount

$

X INPUT 2011.SEP 122000 Y 50000

Y INPUT 2011.SEP 250000 X -50000

M INPUT 2011.SEP 122000 Y 23000

Y INPUT 2011.SEP 250000 M -23000

N INPUT 2011.SEP 122000 Y 5000

Y INPUT 2011.SEP 250000 N -5000

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Note: A/c 122000 IC Accounts Receivable | A/c 250000 IC Accounts Payable


[ Illustration: IC Elimination Basic Design

Entity

Datasource

Period

Account

Trading

Partner

Amount

$

A ELIM 2011.SEP 122000 Y -78000

A ELIM 2011.SEP 250000 X 50000

A ELIM 2011.SEP 122000 M 23000

A ELIM 2011.SEP 250000 N 5000

Note: To simplify scenario, the ELIMACC records are excluded in above table

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Granularity is lost post IC elimination!


[ 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 Partner

and also by the additional user defined dimension for

Entity

A simple additional dimension in data model saves tremendous effort later on during reporting design and

analysis

Dont lose granularity post IC elimination!

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[ Illustration: Intercompany Transaction - New

Entity

Datasource

Z

Legal

Entity

Period

Account

Trading

Partner

Amount

$

X INPUT X 2011.SEP 122000 Y 50000

Y INPUT Y 2011.SEP 250000 X -50000

M INPUT M 2011.SEP 122000 Y 23000

Y INPUT Y 2011.SEP 250000 M -23000

N INPUT N 2011.SEP 122000 Y 5000

Y INPUT Y 2011.SEP 250000 N -5000

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Note: Data Model includes additional user defined dimension Z Legal Entity


[ Illustration: IC Elimination New

Entity

Datasource

Z

Legal

Entity

Period

Account

Trading

Partner

Amount

$

A ELIM X 2011.SEP 122000 Y -50000

A ELIM Y 2011.SEP 250000 X 50000

A ELIM M 2011.SEP 122000 Y -23000

A ELIM Y 2011.SEP 250000 M 23000

A ELIM N 2011.SEP 122000 Y -5000

A ELIM Y 2011.SEP 250000 N 5000

Note: To simplify scenario, the ELIMACC records are excluded in above table

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[ Demo

BPC NW with

Basic US elimination and

US elimination with enhanced analysis enabled

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[ 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


[ Enhanced Analysis works with managerial consolidation too!

User defined dimension can be added in similar manner for managerial consolidation too

Additional user defined dimension can be added for profit center or segment or any such managerial entity, as

applicable

Ensure that the desired data granularity for elimination is achieved by calibrating data model to suit analysis needs

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[ This can be achieved in EPM BPC 10 too!

US Elimination in BPC 10 works in similar manner

Adding additional user defined dimension for Entity will allow retention of granularity at Elimination Entity, Trading

Partner and User Defined Entity

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Best Practices

IC Reconciliation is often a challenge in close process, address this upfront

Consider post IC elimination review and analysis process and pain areas as critical input for designing optimal data

model for BPC consolidation

Consider all possible dimensions required for Consolidation (Legal and Management)

What views of data do you need supported at the underlying ledger?

Consider system performance implications with adding dimensions?

Define and activate all potentially required dimensions on day one to avoid complex and costly changes later


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Key Learnings

Deficiency in data model could adversely impact close process

Facilitate reconciliation by addressing granularity of IC Elimination data

Dont lose granularity post IC elimination. More detail and granularity is appropriate

Optimal data model for consolidation will minimize reporting and analysis challenges during financial close


[ Q&A

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[

Paul Rafferty SAP Functional Lead, eBay PayPal

[email protected]

Vish Arunachalam ACA Principal, EPM AdvantageFinance , Perceptive Technologies

SAP Certified BPC Elite | linkedin.com/in/arunvis

[email protected] | www.perceptinc.com/adfin

Thanks!

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