[
Learn how to gain enhanced analysis capability
with US Eliminations in SAP BPC
Paul Rafferty, eBay PayPal
Vish Arunachalam, Perceptive Technologies
[ Today’s speakers
Paul Rafferty
Vish Arunachalam
SAP Functional Lead
Principal, EPM AdvantageFinance
eBay PayPal
Perceptive Technologies
[email protected]
[email protected]
www.ebayinc.com
www.perceptinc.com
AdvantageFinance
Real Experience. Real Advantage.
2
[ 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
Real Experience. Real Advantage.
3
[ SAP Components & Application Integration
EPM Legal and Managerial
Consolidations BPC NW
Planning,
Analysis and
Reporting
BW- Data storage, Infoproviders,
Meta Data and Master Data
ECC - ERP
Real Experience. Real Advantage.
NonSAP Data
4
[ 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)
Real Experience. Real Advantage.
5
[ 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
Real Experience. Real Advantage.
6
[ 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
Real Experience. Real Advantage.
7
[ 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
Real Experience. Real Advantage.
8
[ Illustration: IC Elimination
Parent A
Elimination Entity A
Legal entity X
Legal entity Y
Legal entity M
Legal entity N
 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
Real Experience. Real Advantage.
9
[ 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
Note: A/c 122000 IC Accounts Receivable | A/c 250000 IC Accounts Payable
Real Experience. Real Advantage.
10
[ 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
Granularity is lost post IC elimination!
Real Experience. Real Advantage.
11
[ 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 there’s 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
 Don’t lose granularity post IC elimination!
Real Experience. Real Advantage.
12
[ Illustration: Intercompany Transaction - New
Entity
Datasource
Z
Legal
Entity
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
Period
Account
Trading Amount
Partner
$
Note: Data Model includes additional user defined dimension Z Legal Entity
Real Experience. Real Advantage.
13
[ Illustration: IC Elimination – New
Entity
Datasource
Z
Legal
Entity
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
Period
Trading
Account Partner
Amount
$
Note: To simplify scenario, the ELIMACC records are excluded in above table
Real Experience. Real Advantage.
14
[ Demo
BPC NW with
 Basic US elimination and
 US elimination with enhanced analysis enabled
Real Experience. Real Advantage.
15
[ Result when enhanced analysis is enabled
Result when enhanced analysis is not enabled
Note: Extract of BW Data in CPMB info cube shown to illustrate granularity of data under both scenarios
Real Experience. Real Advantage.
16
[ 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
Real Experience. Real Advantage.
17
[ 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
Real Experience. Real Advantage.
18
[ 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
Real Experience. Real Advantage.
19
[ Key Learnings
 Deficiency in data model could adversely impact close
process
 Facilitate reconciliation by addressing granularity of IC
Elimination data
 Don’t 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
Real Experience. Real Advantage.
20
[ Q&A
Real Experience. Real Advantage.
21
[ Thanks!
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
Real Experience. Real Advantage.
22
[
]
 Thank you for participating.
Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc
[
Real Experience. Real Advantage.
SESSION CODE:
4403
23