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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
www.ebayinc.com
Vish Arunachalam Principal, EPM AdvantageFinance
Perceptive Technologies
www.perceptinc.com
AdvantageFinance
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Real Experience. Real Advantage.
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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
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Real Experience. Real Advantage.
[ 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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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 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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Real Experience. Real Advantage.
[ 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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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 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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Real Experience. Real Advantage.
[ 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
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Real Experience. Real Advantage.
[ 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!
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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 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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Real Experience. Real Advantage.
[ 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
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Real Experience. Real Advantage.
[ 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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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
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Real Experience. Real Advantage.
[ 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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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 will allow retention of granularity at Elimination Entity, Trading
Partner and User Defined Entity
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Real Experience. Real Advantage.
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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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Real Experience. Real Advantage.
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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
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Real Experience. Real Advantage.
[ Q&A
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Real Experience. Real Advantage.
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Paul Rafferty SAP Functional Lead, eBay PayPal
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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Real Experience. Real Advantage.
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[
] Thank you for participating.
SESSION CODE:
4403
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