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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

[ Todays speakers
Paul Rafferty
SAP Functional Lead

Vish Arunachalam
Principal, EPM AdvantageFinance

eBay PayPal
prafferty@ebay.com

Perceptive Technologies
vish@perceptinc.com

www.ebayinc.com

www.perceptinc.com

AdvantageFinance

Real Experience. Real Advantage.

[ 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.

[ SAP Components & Application Integration

EPM Legal and Managerial Consolidations BPC NW
BW- Data storage, Infoproviders, Meta Data and Master Data

Planning, Analysis and Reporting

ECC - ERP

NonSAP Data

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)

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

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

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

Real Experience. Real Advantage.

[ 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.
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[ Illustration: IC Transaction Basic Design

Entity Datasource X Y M Y N INPUT INPUT INPUT INPUT INPUT Period 2011.SEP 2011.SEP 2011.SEP 2011.SEP 2011.SEP Account 122000 250000 122000 250000 122000 Trading Partner Y X Y M Y Amount $ 50000 -50000 23000 -23000 5000

INPUT

2011.SEP

250000

-5000

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

Real Experience. Real Advantage.

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[ Illustration: IC Elimination Basic Design

Entity Datasource A A A A ELIM ELIM ELIM ELIM Period 2011.SEP 2011.SEP 2011.SEP 2011.SEP Account 122000 250000 122000 250000 Trading Partner Y X M N Amount $ -78000 50000 23000 5000

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

Granularity is lost post IC elimination!

Real Experience. Real Advantage.

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[ 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 X Y M Y N Y Datasource INPUT INPUT INPUT INPUT INPUT INPUT Z Legal Entity X Y M Y N Y Period
2011.SEP 2011.SEP 2011.SEP 2011.SEP 2011.SEP 2011.SEP

Account 122000 250000 122000 250000 122000 250000

Trading Amount Partner $ Y X Y M Y N 50000 -50000 23000 -23000 5000 -5000

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

Real Experience. Real Advantage.

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[ Illustration: IC Elimination New

Entity A Datasource ELIM Z Legal Entity X Period
2011.SEP

Trading Account Partner 122000 Y

Amount $ -50000

A
A A A A

ELIM
ELIM ELIM ELIM ELIM

Y
M Y N Y

2011.SEP
2011.SEP 2011.SEP 2011.SEP 2011.SEP

250000
122000 250000 122000 250000

X
Y M Y N

50000
-23000 23000 -5000 5000

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

Real Experience. Real Advantage.

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[ Demo
BPC NW with Basic US elimination and US elimination with enhanced analysis enabled

Real Experience. Real Advantage.

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[ 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.
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[ 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.

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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

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
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

Real Experience. Real Advantage.

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[ Q&A

Real Experience. Real Advantage.

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[ Thanks!

Paul Rafferty
SAP Functional Lead, eBay PayPal
prafferty@ebay.com

Vish Arunachalam ACA

Principal, EPM AdvantageFinance , Perceptive Technologies
SAP Certified BPC Elite | linkedin.com/in/arunvis vish@perceptinc.com | www.perceptinc.com/adfin

Real Experience. Real Advantage.

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SESSION CODE: 4403

Real Experience. Real Advantage.