BPC440
SAP Business Planning and
Consolidation: Consolidation
.
.
PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
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Course Version: 18
Course Duration: 5 Day(s)
Material Number: 50159852
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Contents
vii
Course Overview
1
Unit 1:
3
19
31
41
Lesson: Describing SAP Business Planning and Consolidation
Lesson: Running Consolidation Tasks
Lesson: Implementing the BPC Standard Consolidation Solution
Unit 2:
43
67
81
103
113
Unit 3:
Unit 4:
Consolidations and Eliminations
Lesson: Translating Local Currency
Lesson: Configuring Intercompany Matching
Lesson: Using the Ownership Manager
Lesson: Configuring Integration Rules
Lesson: Eliminating Intercompany Transactions
Lesson: Configuring Intercompany US Elimination
Lesson: Designing Management, Matrix, and Multiple Accounting
Standards Solutions
Lesson: Describing Consolidation and Elimination Principles
Lesson: Consolidating Investments
Lesson: Describing Stage Consolidation
Lesson: Describing Scope Variation
Lesson: Configuring Equity Pickup: Optional
253
259
271
275
283
303
309
321
Data Collection and Preparation
Lesson: Collecting Data
Lesson: Creating Consolidation Logic
Lesson: Configuring Reclassification
Lesson: Configuring Balance Carryforward
Lesson: Managing Journals
181
195
205
219
231
243
247
301
Modeling Consolidation Structures and Reporting
Lesson: Configuring Environments and Dimensions
Lesson: Creating Models for Consolidation
Lesson: Creating a Report in the EPM Add-for Excel
Lesson: Options for Reporting BPC Standard Data
115
129
143
153
161
179
SAP Business Planning and Consolidation Overview
Unit 5:
Consolidation Process Monitoring
Lesson: Configuring Work Status
Lesson: Using the Controls Monitor to Validate Data
Lesson: Configuring Consolidation Business Process Flows
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Course Overview
TARGET AUDIENCE
This course is intended for the following audiences:
●
Business Analyst
●
Business Process Owner/Team Lead/Power User
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© Copyright. All rights reserved.
UNIT 1
SAP Business Planning and
Consolidation Overview
Lesson 1
Describing SAP Business Planning and Consolidation
3
Lesson 2
Running Consolidation Tasks
19
Lesson 3
Implementing the BPC Standard Consolidation Solution
31
UNIT OBJECTIVES
●
Describe the SAP Business Planning and Consolidation Solution
●
Run Consolidation Tasks
●
Describe the rapid deployment solution for IFRS and US GAAP
© Copyright. All rights reserved.
1
Unit 1: SAP Business Planning and Consolidation Overview
2
© Copyright. All rights reserved.
Unit 1
Lesson 1
Describing SAP Business Planning and
Consolidation
LESSON OVERVIEW
In this lesson, you will about the SAP Business Planning and Consolidation solution. The
lesson also provides you with an orientation to the terms and definitions for SAP Business
Planning and Consolidation.
Business Example
You are implementing SAP Business Planning and Consolidation to perform the financial
consolidation of your group.
Therefore, you need to familiarize yourself with the key terms, the architecture, and the
interfaces.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe the SAP Business Planning and Consolidation Solution
SAP Business Planning and Consolidation Overview
Business Example
Your organization wants to install the planning and consolidation application to streamline its
processes so that it can focus on profitable growth. For this reason, you require the following
knowledge about the application:
●
An understanding of the key terms and components.
●
An understanding of the features and benefits.
The Solutions that the Course Applies To
The BPC440 Standard Consolidation course is applicable to the following solutions:
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SAP Business Planning and Consolidation, version for SAP NetWeaver 10.0.
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SAP Business Planning and Consolidation, version for SAP NetWeaver 10.1.
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SAP Business Planning and Consolidation, version for SAP BW/4HANA 11.0.
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Unit 1: SAP Business Planning and Consolidation Overview
Figure 1: Describe the Course Landscape
Relevant SAP Solutions
Table 1: Relevant SAP Solution
Solution
Name and High-Level Description
General Availability (approx.)
BPC
SAP Business Planning and Consolidation (SAP 2007
BPC):
Planning and consolidation solution based on
BW.
ECC
SAP ERP Central Component (SAP ECC):
1975
Includes the General Ledger, for example. Originally it was called R1.
BW
SAP Business Warehouse (SAP BW):
1998
This is a data warehouse.
SAP HANA
SAP HANA database:
2010
High-Performance Analytic Appliance. Features
in-memory data.
BW powered by HANA
SAP BW powered by HANA:
2011
BW on HANA on the NetWeaver platform.
SAP S/4HANA
SAP S/4HANA:
2015
Re-engineered ECC on HANA.
BW/4HANA
SAP BW/4HANA:
2016
Streamlined BW on HANA. Not on the NetWeaver platform.
4
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Lesson: Describing SAP Business Planning and Consolidation
Solution
Name and High-Level Description
General Availability (approx.)
BPC/4HANA
SAP BPC/4HANA:
2017
SAP Business Planning and Consolidation 11.0,
version for SAP BW/4HANA.
Note:
SAP BPC applications include:
●
SAP Business Planning and Consolidation, version for the Microsoft platform.
●
SAP Business Planning and Consolidation, version for SAP NetWeaver.
●
SAP Business Planning and Consolidation, version for SAP BW/4HANA.
When SAP Business Planning and Consolidation, version for SAP NetWeaver, is
shipped with embedded BW under SAP S/4HANA, it is referred to as SAP
Business Planning and Consolidation, add-on for SAP S/4HANA.
Figure 2: SAP Consolidation Solutions
SAP has several successful consolidation solutions:
●
EC-CS: Enterprise Controlling Consolidations System is a solution that resided on the ECC
system.
●
BCS: Business Consolidation System is like EC-CS but resides on BW.
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BPC: Business Planning and Consolidation in this context resides on BW as well.
●
●
SAP S/4HANA RTC: Real-Time Consolidation is BPC Embedded Consolidation that resides
on SAP S/4HANA.
FC: Financial Consolidation is a standalone solution.
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Unit 1: SAP Business Planning and Consolidation Overview
Figure 3: SAP S/4HANA for Group Reporting
The SAP S/4HANA for Group Reporting solution is based primarily on EC-CS technology and
resides on the SAP S/4HANA system. There is the on-premise solution that became available
with the SAP S/4HANA 1809 Edition. There is also the SAP S/4HANA (Cloud) for Group
Reporting solution which became available in Q3 of 2017.
SAP S/4HANA for Group Reporting stands on the shoulders of consolidation solutions such
as EC-CS, and BPC.
Figure 4: BPC Releases
SAP Business Planning and Consolidation provides everything you need to meet your bottomup and top-down financial and operational planning requirements through a single application
and user interface. SAP Business Planning and Consolidation 11.0, version for SAP BW/
4HANA is a new product based on SAP BW/4HANA. The product supports the SAP HANA
6
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Lesson: Describing SAP Business Planning and Consolidation
database and uses SAPUI5 user interface technology. The SAPUI5 user interface is based on
standard HTML5, which provides all the benefits of HTML5 and supports languages such as
Hebrew and Arabic that are written and read from right to left. SAP BW/4HANA is a new,
next-generation data warehouse product that is optimized for the SAP HANA software,
delivering real-time, enterprise-wide analytics that minimize the movement of data and
connecting all the data in an organization into a single logical view.
SAP Business Planning and Consolidation 11.0, version for SAP BW/4HANA also introduces
the new Belize user interface that has a clean and consistent layout. Belize is the refined SAP
Fiori visual language whose calm color tones help users stay focused on daily business tasks
and content. With delightful visual details and typography, Belize conveys content with clarity
and makes the user experience richer.
Figure 5: BPC Model Types
In version 11.0, there are two main options, Standard and Embedded. Standard is similar to
what we knew as SAP Business Planning and Consolidation 10.0, which uses account-based
tables (one data column). In contrast, the Embedded model is based on SAP BW Integrated
Planning (multiple data column) tables. All of the functionality of SAP Integrated Business
Planning is already available in the embedded option. Most Standard SAP BPC features are
available in the Embedded option.
The decision about whether to use Standard or Embedded must be made based on the
business requirements for each customer’s planning scenario, but both models can be used
in parallel in one system, and the same license applies for both Standard and Embedded.
The SAP HANA software offers many advantages with regard to data acquisition. Smart Data
Access refers to accessing data virtually. The Enterprise Information Management solution
includes Smart Data Access as well as Smart Data Integration. The Operational Data
Provisioning is the new paradigm to load data into BW-related tables. Data lakes refer to
unstructured data such as twitter feeds.
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Unit 1: SAP Business Planning and Consolidation Overview
Figure 6: Planning and Consolidation Benefits
Data can be exported from BPC to SAP Analytics Cloud, so that advanced analysis and
forecasting tools can be used. Enhanced data can then be imported back into BPC.
SAP Business Planning and Consolidation provides everything you must meet your bottomup and top-down, financial and operational planning requirements, through a single
application and user interface.
SAP Business Planning and Consolidation 11.0, version for SAP BW/4HANA is a new product
based on SAP BW/4HANA. The product supports the SAP HANA database and uses SAPUI5
user interface technology. The SAPUI5 user interface is based on standard HTML5, which
provides all the benefits of HTML5, and supports languages such as Hebrew and Arabic,
which are written and read from right to left. SAP BW/4HANA is a new, next-generation data
warehouse product that is optimized for SAP HANA software. It delivers real-time, enterprisewide analytics that minimize the movement of data, and connects all data in an organization
into a single, logical view.
SAP Business Planning and Consolidation 11.0, version for SAP BW/4HANA also introduces
the new Belize user interface, which has a clean and consistent layout. Belize is the refined
SAP Fiori visual language, with calming color tones to help users stay focused on daily
business tasks and content. With delightful visual details and typography, Belize conveys
content with clarity and makes the user experience richer.
8
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Lesson: Describing SAP Business Planning and Consolidation
Figure 7: Plan, Execute, and Monitor
One of the most appealing features of BPC is that you can do so many activities from the
Excel interface, including reporting, analysis, planning, monitoring your process, and perform
data loads.
Other benefits of the planning and consolidation application are as follows:
●
Familiar and easy to use.
The application enables rapid adoption by leveraging native Microsoft Office tools and web
browsers.
●
Unified and easy to plan and consolidate.
A single environment reduces maintenance, improves data integrity, and simplifies
deployment.
●
Owned and managed by business users.
Business users manage processes, models, and reports, with less dependence on
information technology (IT).
●
Business process-centric.
Configurable Business Process Flows (BPFs) guide users and drive process consistency.
●
Open, adaptable application.
Extends the value of your investment in both SAP and non-SAP environments.
●
Tight Integration with SAP Analytics Cloud.
SAP Business Planning and Consolidation 11.0, version for SAP BW/4HANA (SAP BPC
11.0), is a flexible hybrid solution that can help customers in their adoption of the cloud. It
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Unit 1: SAP Business Planning and Consolidation Overview
combines planning capabilities from both worlds, with the advanced analytical features of
SAC.
Summary of BPC Consolidation Options
Table 2: Summary
Feature
BPC Standard
BPC Embedded/Repli- BPC Embedded/Real
cation
Time
Landscape
Not SAP S/4HANA
Not SAP S/4HANA
SAP S/4HANA
Database
SAP HANA or Traditional
SAP HANA only
SAP HANA only
Data Redundancy
More
More
Much Less
Extraction Transformation and
Loading (ETL) Engine
BPC Data Manager
BW Data Flows
BW Data Flows
Unlimited
Unlimited
Limited
BPC
Normal
Normal
Data Integration
Difficult
Easier
Easier
Mostly ECC Data
Doesn’t matter
Doesn’t matter
Important
Limited
Limited
Best Option
Consolidation Engine
BPC
BPC
BPC
Planning Engine
BPC
IP
IP
Soft Close / Simulation
N/A
N/A
Key Feature
Available
Planned
Planned
Unavailable
Unavailable
Available
Excel Add-In
EPM*
Analysis
Analysis
BW Queries
Not Required
Required
Required
IT Support
Less
More
More
EDW Enterprise
Data Warehouse
Namespace
SAPS/4HANA
Customer
Equity Pickup
SAP S/4HANA
Currency Translation
Others...
*EPM = Enterprise Performance Management.
The following is a list of comments about the content in the previous table.
●
10
Landscape: BPC Standard can be run on an SAP S/4HANA landscape. However, the EDW
limitation applies.
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Lesson: Describing SAP Business Planning and Consolidation
●
Database: Self-explanatory.
●
Data redundancy: The real-time option does not require any data loads.
●
●
●
●
●
●
●
●
●
●
●
●
●
Extraction Transformation and Loading (ETL): In BPC Standard, data loads are conducted
in the Microsoft Excel EPM add-in via the Data Manager. BW is a world-class ETL engine
with its data flows and process chains.
EDW: Enterprise Data Warehouse is limited in an SAP S/4HANA landscape. BW in this
case can only be used to load data volumes to around 20% of the size of the ECC-related
database.
BW Namespace: The BPC Standard BW objects have a prefix of /cpmb/.... For example, a
real-time InfoCube ID could be /CPMB/XXYYYABCD with similarly named characteristics.
In BW, delivered objects have an ID that begins with a number. For example,
0COSTCENTER is the technical name for cost center which is part of the 0CCA1 InfoCube.
It is easy to share or merge data from InfoCube 0CCA1 and 0CCA2, because of the
common naming convention.
Data Integration: Since BPC Standard uses a reserved/unique namespace, sharing data
with non-BPC Standard BW tables is much more difficult.
Mostly ECC Data: The RTC solution revolves around the ECC data structures, SAP S/
4HANA Finance, and so on.
SAP S/4HANA Customer: In this case, very little data replication is likely. Therefore, RTC
wins.
Consolidation Engine: All options use the same engine. This includes the business rules
and the consolidation components in the BPC Web Client, including the Consolidation
Monitor, Controls Monitor, Ownership Manager, and Journals.
Planning Engine: The BPC Standard planning engine consists of the script logic engine,
input forms, and the Data Manager. Data is only locked when saving data input or running
planning functions. Integrated Planning has its own formula builder called FOX code and
many other planning functions along with planning enabled queries for example. Data is
locked when viewing in write mode and therefore provides the ability to simulate. For
example, run a currency translation function in Analysis and, if you are only testing, you
can go back to the last saved state.
Soft Close / Simulation: RTC is the only scenario with this feature.
Equity Pickup: This is used mainly in the US to create standalone financial statements at
the entity level.
SAP S/4HANA Currency Translation: The benefits of currency translation in SAP S/
4HANA are that data quality can be improved as the controls are moved closer to the
source, and the group accountants’ work can be simplified. Additionally, currency
translation in SAP S/4HANA provides other technical benefits, such as pushing logic into
SAP HANA for performance and data traceability.
Excel Add-In: The Enterprise Performance add-in has baked-in functionality for BPC
Standard. It can only be used with BPC Embedded with permission from SAP.
IT Support: Since BPC Standard doesn't use IP, for example, and the BW objects are
created very easily from the BPC Web Client, less IT is required.
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Unit 1: SAP Business Planning and Consolidation Overview
●
BW Queries: These are required in Integration Planning to perform manual input planning.
BW Queries make up the OLAP layer of BW and provide a rich layer of reporting features
including variables, structures, and calculated key figures. They are maintained primarily
by IT or more technical business personnel.
The Value of Planning and Consolidation
The ease of use of SAP Planning and Consolidation has always been a key feature, along with
the fact that data is stored in a central database and not in local spreadsheets.
One of the most appealing features of BPC is that you can do so many activities from the
Excel interface including reporting, analysis, planning, and data loads.
Other benefits of the planning and consolidation application are as follows:
●
Familiar and easy to use
The application enables rapid adoption by leveraging native Microsoft Office tools and web
browsers.
●
Unified and easy to plan and consolidate
A single environment reduces maintenance, improves data integrity, and simplifies
deployment.
●
Owned and managed by business users
Business users manage processes, models, and reports, with less dependence on
information technology (IT).
●
Business process-centric
Configurable Business Process Flows (BPFs) guide the users and drive process
consistency.
●
Open, adaptable application
Extends the value of your investment in both SAP and non-SAP environments.
●
Tight Integration with SAP Analytics Cloud
With the new release of SAP Business Planning and Consolidation 11.0, version for SAP
BW/4HANA (SAP BPC 11.0), a much more flexible hybrid solution is offered to customers
on their journeys to cloud, combining planning capabilities from both worlds with
advanced analytics features of SAC.
SAP Business Planning and Consolidation Reporting Features
12
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On-demand reporting in Microsoft Excel and the Web.
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EPM add-in Member Recognition.
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Workbook and PDF emails.
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Publication, Distribution, and Collection.
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Dynamic formatting in Microsoft Excel.
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Report launch pads using Business Process Flows (BPFs).
●
Report on multiple sources in Microsoft Excel.
●
Rich set of EPM functions.
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Lesson: Describing SAP Business Planning and Consolidation
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Centrally stored comments for variance explanations.
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Easy-to-use EPM Local Member (formulas).
●
On-the-fly dimension member formulas.
●
Use Microsoft Excel macros, functions, and so on.
●
Report jumps.
●
●
Drill through to SAP Business Warehouse (BW) queries and SAP ERP Central Component
(ECC).
Use Analysis for Office to supplement the EPM add-in.
SAP Business Planning and Consolidation - Consolidation Features
●
Consolidation applications in the web client.
●
Intuitive maintenance of business rules in the web client.
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Excel based data manager consolidation tasks and data loads.
●
Lock data using work status.
●
Process control and Launchpads via Business Process Flows.
●
Balancing and reclassification using script logic.
●
Centrally stored comments for financial notes.
●
Automated entries for investment structure changes.
●
Equity Pick Up for standalone financial statements by entity.
The BPC Data Manager
●
Used for Data Loads such as flat file or table to table.
●
Used to run Planning Functions such as Copy, Delete, Move, and so on.
●
Used to run Script Logic files such as Allocations, Revaluations, and so on.
●
●
Used to run Business Rules such as Currency Translation, Reclassification, Eliminations,
and so on.
Accessed from the EPM Add-in.
BPC Script Logic
●
●
Used for balancing and reclassifications.
Used for Allocations, Revaluations, Calculating Labor Benefits, and other driver-based
examples.
●
Can be set to run all the time or in batch mode via Data Manager Packages.
●
Results are stored in the database.
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Unit 1: SAP Business Planning and Consolidation Overview
BPC Business Rules
●
●
Used for month end closing tasks such as:
-
Controls.
-
Reclassification.
-
Balance Carry Forward.
-
Currency Translation.
-
Intercompany Bookings.
-
Elimination and Adjustments.
-
US Eliminations.
-
Equity Pick Up.
Results are stored in the database.
BPC Data Audit
●
Used to record who changed what transaction data.
●
Activated by model, by category, for EPM manual input, for example.
●
Data audit logs are stored on the database.
Work Status
●
Used to control who can change transaction data in a model for a specific data region.
●
Analogous to ‘Close Period’.
●
Integrated with data controls and the consolidation monitor.
●
Can generate e-mails for work state changes.
●
Only assigned users (Owners for example) can ‘Approve’ their cost center, for example.
●
Typical work states include: Locked, In Process, Submitted, Approved.
Business Process Flows
From a process control perspective, business process flows (BPFs) allow users to define their
business processes in predefined sets of application tasks that can be used by different
departments within the organization; any of the available features within the Web and
Microsoft Office interfaces can be used by a business process flow.
Some users only want to work in Excel, so they can access their BPF activities via the File
menu for example.
You can access your BPF activities from the EPM Add-In if the BusinessObjects Planning and
Consolidation plug-in is installed. You can verify this through the Microsoft Excel menu File
→ About Analysis → Plug-ins.
The BPC plug-in is a component to SAP Analysis for Microsoft Office, as of version 2.3. The
plug-in supports only SAP Business Planning and Consolidation 10.1 Support Package 10,
14
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Lesson: Describing SAP Business Planning and Consolidation
version for SAP NetWeaver or higher. The plug-in is available in the interface as a pane named
Activity. This pane can be displayed for the Analysis and EPM tabs in the ribbon.
Figure 8: Open My Activities from the EPM Add-in
From the EPM add-in, you can access your BPC Environment and any associated BPF
activities that you are responsible for.
Figure 9: Launch an Activity from the EPM Add-in
You can perform all of your Microsoft Excel-based activities from the EPM add-in. The Activity
pane can be moved to the right for example. There are also tool tips if you hover (mouse over)
activities or the context, for example.
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Unit 1: SAP Business Planning and Consolidation Overview
Microsoft Excel Interface of the EPM Add–In
The Microsoft Excel interface of the EPM add-in is the primary Excel interface for BPC. It
contains many built-in features specifically for BPC reporting and planning.
The EPM add-in includes the data manager that is used to import data and run functions such
as, copy, delete, and move data.
Figure 10: The Microsoft Excel Interface of the EPM Add–In
The planning and consolidation application includes an add-in for Microsoft Office that
enables you to perform tasks related to EPM from your Microsoft Office applications. You can
use the Microsoft Excel interface of the EPM add-in to access data from multiple sources such
as Planning and Consolidation and SAP Business Warehouse.
The data retrieval options are the same, regardless of the source. However, the planning and
consolidation application has extra features, such as data input, Data Manager, planning, and
workbook collection.
The EPM data retrieval option allows you to perform the following tasks for example:
16
●
Create reports.
●
Analyze data.
●
Perform calculations and use charts.
●
Format data dynamically.
●
Print and share.
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Lesson: Describing SAP Business Planning and Consolidation
Figure 11: BPC High-Level Architecture
BPC dimensions and models can be loaded from a source system such as ECC. There is a
staging layer made up of normal BW tables. EPM Reports are built on the Models via the BPC
connection. And then, workbooks which contain the EPM Reports(s) are saved to the BPC
Server and are available to the users. While in the workbook, users can drill through into BW
Queries or to ECC.
BPC environments include dimensions that represent master data and models which
represent transaction data.
Table 3: Key Terms
The following table outlines the key terms for SAP BPC Standard:
Term
Definition
Dimensions
Master data such as companies and accounts.
Models
Contains transaction data such as expense values and exchange rates.
Environments
Contains dimensions and models.
BW
SAP Business Information Warehouse.
Properties
Related fields such as currency.
Dimension Members
Example: Company C1000.
Base Level Members
Members with no children.
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Unit 1: SAP Business Planning and Consolidation Overview
LESSON SUMMARY
You should now be able to:
●
18
Describe the SAP Business Planning and Consolidation Solution
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Unit 1
Lesson 2
Running Consolidation Tasks
LESSON OVERVIEW
In this lesson, you learn about the Consolidation Monitor, Controls Monitor, Journals, and
Ownership Manager from a user perspective.
Business Example
Now that your company or client has implemented SAP Planning and Consolidation version
for SAP NetWeaver, you need to learn how to work with the Consolidation Module workspace.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Run Consolidation Tasks
Use the BPC 11.0 Web Client
Figure 12: BPC Web Client
From the home page, you can access the menu selector, the settings, and you can view your
activities status.
Note:
The menu selector symbol on the upper left will display a system name of Open
Main Menu when you hover it on.
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19
Unit 1: SAP Business Planning and Consolidation Overview
Hint:
If you click on the My Activities Timeline pane, you can move it to a different
location on the page.
Figure 13: BPC Web Client Menu Selector
The menu selector is used to access the consolidation area, the administration screens, and
the system reports, for example.
Use the Library option to access web reports and input forms.
Figure 14: BPC Web Client Settings Menu
The settings menu is used to access your environments and can also be used to log on to the
EPM add-in, for example.
20
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Lesson: Running Consolidation Tasks
Figure 15: BPC Web Client Managing Environments
To create a new environment, for example, use the settings menu.
Run Consolidation Tasks
Those of you who have worked in corporate accounting or have implemented consolidation
systems may already have a really good idea of what the month-end process entails. For
those of you who do not have that background, we touch on a few of the basic concepts in the
overview of consolidation. Then, we discuss how consolidation is performed in Business
Planning and Consolidation (BPC).
In this section, we go over some of the fundamentals of consolidations. After that, we will
discuss the four major steps in the process and introduce the business rules.
Overview of Consolidation
The primary reason corporations need to consolidate their financials at month end is that
they are made up of multiple legal subsidiaries in one or more countries. For example, we
have a corporate holding company C9000 and they are based in the US.
This corporation operates in a few different countries in the Americas, Europe, and Asia
Pacific. Therefore, they use a few different local currencies and they may also use multiple
accounting standards such as US Generally Accepted Accounting Principles (GAAP) and
International Financial Reporting Standards (IFRS).
In addition, subsidiaries can have a variety of ownership relationships, such as a total
ownership like Japan (C9000 owns 100% of Japan) or the UK subsidiary, which has 80% of
its shares owned by Germany. In Europe for example, the financial statements at the group
level must reflect the fact that Germany has an ownership interest in UK’s equity.
Also, usually there are transactions between the subsidiaries, so each company could have
intercompany sales, Cost Of Goods Sold (COGS), and Intercompany Accounts Payable
(ICAP) and Receivables (AR) on their books.
Using this example as a backdrop, the goal of the consolidation process is to generate a set of
group financial statements in the group currency with values that reflect the group
accounting standards. Since this corporation is based in the US, the group currency will be
USD and US GAAP will be the set of standards to go by.
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Unit 1: SAP Business Planning and Consolidation Overview
The consolidated financial statements only reflect third-party transactions, and not
intercompany transactions. Thus, eliminate all intercompany sales, COGS, IC AP, IC AR, and
so on.
Consider a typical month-end close from a functional perspective. The following are the four
key steps when preparing for and executing consolidation:
1. Prepare
This step includes setting up the dimensions, loading the master data, creating the
business rules, and configuring the security to support the process of consolidation.
2. Collect
This step involves collecting data via manual entry, file uploads, Enterprise Resource
Planning (ERP) integration, and journal entries. Then the data is validated and currency
translation is performed.
3. Consolidate
This step involves running the eliminations, reclassification, and data validation.
4. Report
This step involves analyzing the data via Microsoft Excel, drilling through to BW Queries
and Electronic Customs Communication (ECC).
The following is a more detailed set of month-end activities:
Balance Carry Forward
The classic first step is to carry forward the closing balances from the prior year’s
balance sheet into the current year opening balances.
Import Actuals
Next, the current month’s financial data from the local subsidiaries is imported into BPC.
Controls
Controls are used to perform integrity checks, such as Assets = Liabilities and Owners
Equity, could be run at any point in the process.
Journal Entries
BPC Journals are available when top side entries are needed.
Reclassification
Reclassifications are used to automate periodic adjustments.
Ownership Data
The ownership methods and percentages are entered into the Ownership Model.
Currency Translation
Local currency is translated into other reporting currencies, if necessary.
IC Matching
IC AP/AR differences are identified and booked, if necessary.
IC Eliminations US Method
IC Revenue and COGS, for example, are eliminated.
InterCompany and Ownership eliminations
The Consolidation Monitor is used to run currency translation, intercompany
eliminations, and ownership eliminations.
Equity Pick Up
22
© Copyright. All rights reserved.
Lesson: Running Consolidation Tasks
The Equity Pick Up Monitor is used to create standalone entity-specific financial
statements.
Publish the Group Financials
The final set of financial statements are published.
Figure 16: The Consolidation Options in the BPC Web Client
Accountants can carry out consolidation activities from the BPC web client.
Figure 17: The Consolidation Monitor
The Consolidation Monitor is used to manage the consolidation progress for specific a
consolidation group, category, and period.
The Consolidation Monitor displays the Group/Entity hierarchy created in the Ownership
Manager for Consolidation type models.
Below you can see the monitor before any tasks have been run.
The context area displays the selected dimension members for time, category, and group.
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Unit 1: SAP Business Planning and Consolidation Overview
In the Consolidation Monitor you can do the following:
●
Display the Control Status, the results of the controls process.
●
Display the Work Status, the current work state such as locked or in process.
Display the Currency Translation and Consolidation status, these are the results of the
translate currency and the consolidate processes. The status can be either Done or To Be
Executed.
●
Display the Running Processes; this shows the execution status.
●
Reset the consolidation status
Incremental Versus Full Mode for Currency and Consolidation
Table 4: Incremental Versus Full Mode for Currency and Consolidation
The following table outlines the execution modes available for currency and consolidation:
Execution Mode
Result
Full
All entities are processed
Incremental
Only entities with changed transaction data are processed
You can perform a full consolidation, which processes all entities in the ownership-based
hierarchy, or you can perform an incremental consolidation, which processes only entities
with changed transaction data. Incremental consolidation reduces the impact on system
resources.
Time stamps are generated for entity, time, and category when currency and consolidation
are executed. When running in incremental mode, if the currency or consolidation time stamp
is before the data update time stamp of an entity, the program is triggered.
24
© Copyright. All rights reserved.
Lesson: Running Consolidation Tasks
Figure 18: Incremental Mode
Full consolidation should be run in the following cases:
1. Changes in the rate and ownership data
2. Changes in master data
3. Changes to the business rules
Figure 19: The Ownership Manager
The Ownership Manager is the primary user interface to define the group structure. The
corresponding data is recorded in the Ownership data table.
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25
Unit 1: SAP Business Planning and Consolidation Overview
For each entity consolidated in a group, the Ownership Model stores the method and the
different consolidation rates used.
Ownership investments structures are used to consolidate and report on consolidation
groups(scopes). The investment structure is stored as transaction data. It is not a
dimensional hierarchy.
Figure 20: The Controls Monitor
Controls are used to check for financial statement balancing, such as Assets = Liabilities and
Owner Equity. Controls can be run for loaded, translated, and consolidated data.
Controls are run on a selected entity or group of entities. The Controls Monitor displays the
structure of the group based on the hierarchy created in the Ownership Manager for
Consolidation type models.
The Controls Monitor consists of the following areas:
●
At the top, the context area:
This displays the selected dimension members: Time, Category, and Group. To modify the
dimension members displayed in the context area, click the linked members to display the
Member Selector dialog box.
Note:
Parent members can be selected for some dimensions if activated when
enabling controls.
●
●
26
In the middle, a list of control sets organized by entity, displaying the control status and
the number of blocking or warning controls
At the bottom is a detailed list of failed controls for selected members. Each time you
select a different member in the control set list, the list of failed controls is refreshed.
© Copyright. All rights reserved.
Lesson: Running Consolidation Tasks
Figure 21: The Journal Page
BPC Journal entries are used for accounting adjustments in BPC.
Journals Landing Page Features
●
List journal IDs
●
Select journals based on your context or advanced search criteria
●
Select columns to display
●
Manage journals (create, copy, and post)
Figure 22: Equity Pick Up Monitor
Equity Pick Up is normally run at the end of the consolidation process.
Month end closing tasks can be executed from the web client, Microsoft Excel, or both.
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Unit 1: SAP Business Planning and Consolidation Overview
Closing Tasks by Interface
Table 5: Where Closing Tasks are Run
Task
Web Client
Create a business process flow instance for the period.
x
Assign controls to the period.
x
Open the period via work status.
x
EPM add-in
x
Update dimensional data manually where needed:
For an acquisition: add to entity and interco dimensions.
x
Others.
x
Import data via data manager:
Dimensions.
x
Rate model.
x
Consolidation model.
x
Ownership Data:
Manually copy / update ownership data.
x
Equity Pick Up uses S_None only.
x
x
Run controls on loaded data.
x
Copy prior period journals if needed.
x
Journals on loaded data.
x
Run reclassifications.
x
Run currency translation.
x
Run controls on translated data.
x
Run inter company matching & booking.
x
x
Run consolidation (elimination & adjustments business rules).
x
x
Journals on consolidated data.
x
Run Controls on consolidated data.
x
Run Equity Pick-up.
x
x
Close the period via work status.
x
x
Note:
In the preceding table, some tasks may not be required based on your business
requirements. The order may vary as well.
28
© Copyright. All rights reserved.
Lesson: Running Consolidation Tasks
LESSON SUMMARY
You should now be able to:
●
Run Consolidation Tasks
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Unit 1: SAP Business Planning and Consolidation Overview
30
© Copyright. All rights reserved.
Unit 1
Lesson 3
Implementing the BPC Standard Consolidation
Solution
LESSON OVERVIEW
In this lesson, you will about the rapid deployment solution content for IFRS and US GAAP.
Business Example
To speed up your implementation project, you want to use the Rapid Deployment Solution
Content, and therefore you want to know what is included in this content.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe the rapid deployment solution for IFRS and US GAAP
Rapid Deployment Solution Content
Figure 23: SAP Financial Close and Disclosure Management Rapid Deployment Solution
Note:
The content also includes the BW configuration to convert ERP data before
loading into BPC.
SAP Financial Close and Disclosure Management rapid-deployment solution is a package
including best implementation practices and expert know-how.
It contains SAP Business Planning and Consolidation configuration, and documentation to
support the consolidation according to the International Financial Reporting Standards (IFRS)
and US Generally Accepted Accounting Principles (GAAP).
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Unit 1: SAP Business Planning and Consolidation Overview
Note:
Both types of content can also be used as a starting point to implement the
consolidation according to another accounting standard.
Location of Rapid Deployment Solution
Figure 24: SAP Financial Close and Disclosure Management Rapid-Deployment Location
SAP Financial Close and Disclosure Management rapid-deployment solution can be found on
SAP Service Marketplace: https://websmp105.sap-ag.de/public/rds-epm-fcdm.
Rapid Deployment Solution BPC Content
Table 6: Rapid Deployment Solution BPC Content
The following table outlines the Rapid Deployment Solution BPC Content:
32
Component
Description
Dimensions
A chart of accounts and a list of flows to produce the financial statements.
Consolidation methods
Holding, Full, Equity
Business Rules
Currency conversion, intercompany eliminations, investments elimination, consolidation of equity accounts, dividends elimination, goodwill adjustments
Controls
A complete set of controls to check the reported data
Input Forms
Forms to manually input a complete set of data
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Lesson: Implementing the BPC Standard Consolidation Solution
Component
Description
Reports
Financial statements: Balance Sheet, Profit and Loss,
Cash Flow Statement, Changes in Equity, Other Comprehensive Income
Analysis reports: more than 20 reports to analyze and
control data.
Business Process Flows
Two Process Templates to support the data collection and
the consolidation process
The content is delivered as a ZIP file you restore in your system using the UJBR transaction.
The environment delivered includes all the necessary BPC configuration.
Note:
The content also includes the transaction data of several consolidation examples.
You can use this data to familiarize yourself with the content.
Implementation Times
Figure 25: Implementation Times
The delivered content and the associated methodology change the implementation approach
and reduce timelines.
The typical tasks are as follows:
●
●
Activate content
Select options (such as add new accounts, create new dimension, define group hierarchy,
and design additional reports)
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33
Unit 1: SAP Business Planning and Consolidation Overview
●
Implement options
●
Test solution
●
Go live
Note:
When migrating to BPC, it is possible to cut over at year end or during interim
periods. In addtion, most customers also run a number of periods in parallel.
Rapid Deployment Solution Components
Figure 26: US GAAP Content
The following configuration approach is used in both US GAAP and IFRS content:
●
●
The chart of accounts is designed to produce the financial statements and can be easily
enhanced to fulfill customer requirements.
Where it is possible, the configuration is dynamic and based on dimension member
hierarchies or properties.
●
Adding a new account by copying an existing one is usually enough.
●
Script Logic is mostly defined with business rules.
In addition to the BPC configuration content, the documentation includes a Configuration
Guide that describes the delivered configuration, and Business Process Documentation.
34
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Lesson: Implementing the BPC Standard Consolidation Solution
IFRS Content
The figure, IFRS Content, shows the IFRS content available in SAP BPC.
Figure 27: IFRS Content
Project Considerations
The implementation steps are as follows:
●
●
Gather Business Requirements.
-
What are the source systems?
-
Is the incoming data YTD or Periodic?
-
What staging layers are needed in BW?
-
Is there a need to automate the accounting for investment structure changes?
-
Is only legal consolidation required or is management consolidation also needed?
-
Is Equity Pick Up required?
-
What types of intercompany eliminations are there?
-
What type of currency translation is needed?
-
What reclassifications are needed?
-
How many accounting standards are needed?
-
Are integration rules required?
Set Parameters in SPRO.
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Unit 1: SAP Business Planning and Consolidation Overview
Multi Level Controls.
-
Equity Pick Up.
●
Create Environment.
●
Maintain Dimensions.
●
Maintain Models.
-
Consolidation.
-
Ownership.
-
Rate.
-
InterCompany Matching(opt).
●
Set up Security
●
Set up Work Status
●
Set up data flows
●
Input / Import Initial Ownership Data.
●
Set up logic files for Consolidation Model.
●
36
-
-
Balance carry forward.
-
Reclassification.
-
Currency.
-
Consolidation (Curr and Elim&Adj BR).
-
Intercompany (US)Eliminations.
-
Intercompany Matching / Data.
-
Intercompany Booking.
-
Balancing Logic.
Configure Business Rules.
-
Balance carry forward.
-
Reclassification.
-
Currency.
-
Methods.
-
Multipliers.
-
Eliminations & Adjustments.
-
Intercompany (US)Eliminations.
-
Intercompany Booking.
-
Equity Pick Up.
© Copyright. All rights reserved.
Lesson: Implementing the BPC Standard Consolidation Solution
-
●
Controls.
Set up Data Manager Packages.
-
Balance carry forward.
-
Reclassification.
-
Currency.
-
Consolidation.
-
Intercompany (US)Eliminations.
-
Intercompany Matching / Data.
-
Intercompany Booking.
-
Equity Pick Up.
●
Create Workbooks and Input Forms.
●
Create Business Process Flows.
Figure 28: BPC Consolidation System Architecture
LESSON SUMMARY
You should now be able to:
●
Describe the rapid deployment solution for IFRS and US GAAP
© Copyright. All rights reserved.
37
Unit 1: SAP Business Planning and Consolidation Overview
38
© Copyright. All rights reserved.
Unit 1
Learning Assessment
1. Which of the following describes the BPC Standard Consolidation Solution?
Choose the correct answers.
X
A Consolidation applications in the web client.
X
B Real time.
X
C Balancing and reclassification using script logic.
X
D Analysis for Office.
2. The Consolidation Monitor displays which one of the following?
Choose the correct answer.
X
A The status of the ownership calculation.
X
B The status of the consolidation execution.
X
C The status of the business process flow steps.
X
D The status of the balance carry forward package.
3. The release of SAP Business Planning and Consolidation on SAP BW /4HANA provides
which of the following benefits?
Choose the correct answers.
X
A Better user adoption.
X
B Improved performance.
X
C The use of business process flows.
X
D More detailed analysis options.
© Copyright. All rights reserved.
39
Unit 1
Learning Assessment - Answers
1. Which of the following describes the BPC Standard Consolidation Solution?
Choose the correct answers.
X
A Consolidation applications in the web client.
X
B Real time.
X
C Balancing and reclassification using script logic.
X
D Analysis for Office.
That is correct. BPC Standard features consolidation applications in the web client. |
Balancing and reclassification are possible by using script logic.
2. The Consolidation Monitor displays which one of the following?
Choose the correct answer.
X
A The status of the ownership calculation.
X
B The status of the consolidation execution.
X
C The status of the business process flow steps.
X
D The status of the balance carry forward package.
That is correct. The status of the consolidation execution as well as the currency
execution appears in the Consolidation Monitor.
3. The release of SAP Business Planning and Consolidation on SAP BW /4HANA provides
which of the following benefits?
Choose the correct answers.
X
A Better user adoption.
X
B Improved performance.
X
C The use of business process flows.
X
D More detailed analysis options.
That is correct. The release of SAP Business Planning and Consolidation on SAP BW /
4HANA provides better user adoption, improved performance, and more detailed analysis
options. The use of business process flows was available in earlier releases.
40
© Copyright. All rights reserved.
UNIT 2
Modeling Consolidation
Structures and Reporting
Lesson 1
Configuring Environments and Dimensions
43
Lesson 2
Creating Models for Consolidation
67
Lesson 3
Creating a Report in the EPM Add-for Excel
81
Lesson 4
Options for Reporting BPC Standard Data
103
UNIT OBJECTIVES
●
Describe BPC environments
●
Design and maintain dimensions
●
Design models for consolidation
●
Explain the EPM add-in components
●
Format Financial Statements
●
Discuss Report Options for BPC Transaction Data
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41
Unit 2: Modeling Consolidation Structures and Reporting
42
© Copyright. All rights reserved.
Unit 2
Lesson 1
Configuring Environments and Dimensions
LESSON OVERVIEW
In this lesson, you learn how to use master data in consolidation scenarios.
Business Example
You are in the build phase of your project and you need to start work on the dimensions,
properties, and hierarchies.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe BPC environments
●
Design and maintain dimensions
Environments
The starting point in any project is to create the environment. Environments have the
following properties:
●
An environment consists primarily of models and dimensions.
●
Dimensions can be used by any model within an environment.
●
The delivered and installed environment is called the EnvironmentShell.
●
The EnvironmentShell has four models, each with their own associated templates and
packages.
Note:
The International Financial Reporting Standards (IFRS) content and the United
States Generally Accepted Accounting Principles (US GAAP) environments are
also part of the delivered content.
The EnvironmentShell environment contains the following delivered models. These models
contain the functionality needed to start building your own functioning environment.
Delivered Models
●
Consolidation
The consolidation model contains income statement and balance sheet data.
●
Ownership
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Unit 2: Modeling Consolidation Structures and Reporting
The ownership model is a supporting model for a consolidation reporting model. It stores
group structure information, such as groups, sub groups, entities, consolidation methods,
and ownership percentages.
●
Planning
The planning model is a multi-currency financial model. By default, it is designed to
accommodate currency translation.
●
Rate
The rate model, which stores the exchange rates, is assigned to the financial and
consolidation models as a supporting model.
Note:
If you need to build more complex environments, for example, for legal reporting,
you can build an environment using the components included within
EnvironmentShell and then add your own if needed.
To Create an Environment
1. Log on to the BPC web client.
2. To access your existing environment, on the upper right, choose
(Settings)
3. In the dialog, choose Manage All Environments.
4. Highlight an existing environment and choose Copy.
5. In the resulting dialog, deselect the three options:
a)
(Data in Models) - copies the transaction data.
b)
(Web Documents) - copies the Web Client Library, which includes Web reports
and input forms.
c)
(Documents)- copies attachments such as Microsoft Word and Excel documents.
Note:
Master data is always copied.
6. Choose Copy.
7. After a few minutes, when the process if complete, choose Close.
8. Highlight the new environment and choose Connect.
Dimensions for Consolidation
Dimensions represent the master data. In this lesson, we focus on master data is used for
consolidation.
44
© Copyright. All rights reserved.
Lesson: Configuring Environments and Dimensions
In BPC, the dimension types are used to identify the role of each dimension in the
consolidation engine. The entity dimension is used to determine local currency for example.
Dimensions for Consolidation - Key Points
●
You can use delivered dimensions or create your own.
●
Dimension types are used to specify the role it performs in the system processing.
●
Dimensional data includes the member IDs, descriptions, properties, and hierarchies.
●
BPC master data can be automatically replicated from BW, flat files, and can also be
maintained manually.
●
Descriptions are language-dependent.
●
Attributes are time independent.
●
Hierarchies can be time-dependent or independent.
●
Properties are heavily used by the consolidation engine.
●
The system proposes properties needed for consolidation, ownership, or rates.
●
Referential integrity is available for property value validation.
●
Dimension member formulas can be used to calculate ratios for example.
Figure 29: Accessing Dimensions
A dimension is a collection of related members, which represents one aspect of a business,
for example, accounts, products, or currency. You manage dimensions by defining members,
creating hierarchies, and assigning properties. The dimensions can be added to one or more
models in an environment.
To manage dimensions, on the Administration page, choose Dimensions and Models
→ Dimensions. This opens the main overview page that contains the list of all the dimensions
in the environment.
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Unit 2: Modeling Consolidation Structures and Reporting
The header of the list contains the dimension ID, its description, the type of dimension, and
the status. There are normally two statuses:
●
Needs to be processed = yellow icon
●
Processed = green icon
You use dimension types to organize data within models based on the type of information
involved. An environment can have multiple dimensions of one type. Each model within the
environment, however, can have only one of each of the required types except for userdefined dimensions. For example, the environment might contain the entity dimensions
EntityB and EntityF, with the Budgeting model using EntityB and the Forecasting model using
EntityF.
Table 7: Dimension Types
The following are the different types of dimensions available:
Dimension Type Type
Definition
Account
A
Contains your chart of accounts.
Audit *
D
Identifies the origin of values such as input, manual journal entries, and elimination.
Category
C
Contains the versions of data you track, such as actual, budget,
and so on.
Currency
R
Contains the currencies in which your company does business.
Entity
E
Contains the business entities that are included in the consolidation process. For legal consolidation, this would be a legal subsidiary. For management consolidation, this could be a business unit
or a profit center.
Scope*
G
Contains consolidation group members. Elimination entries are
made at group level using these base level members. Referred to
as Scope in the EnvironmentShell.
Intercompany
I
Contains the intercompany IDs for the entities (for example, trading partner).
Subtables
S
Referred to as the flow dimension. Used in consolidation to track
the opening balance, additions, reductions, and so on.
Time
T
Contains the time periods for which you want to store data.
User-defined
U
Additional dimensions for analysis purposes.
Measures
This dimension is added by the system and appears in the EPM
add-in to report on period or year-to-date data, for example.
* Audit was referred to as DataSource in prior releases.
* Scope was referred to as Group in prior releases.
Each dimension member has a set of related fields called dimension properties.
●
46
Dimension properties are used for the following:
© Copyright. All rights reserved.
Lesson: Configuring Environments and Dimensions
●
-
Data selection in reports, input forms, and calculations.
-
Display specific data, such as the property value, in reports and input forms.
Properties are created in the following ways:
-
System default based on the dimension type.
-
User defined.
-
Required if used for consolidation, rate, or ownership models.
When creating a new dimension, or changing an existing one, you can add your own
properties by selecting New Property. Depending on the dimension type and model, the
system requires certain properties to be used.
Referential Integrity is used to validate property values against members of a different
dimension.
Allow Member Formulas allows you to use dimension member formulas.
Figure 30: Creating a New Dimension
You add dimensions to an environment to make them available for use by its models. You can
create a new dimension or copy an existing dimension. You can create a new dimension on
the Administration page by choosing Dimensions and Models → Dimensions → New
Dimension, and then entering the required data.
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47
Unit 2: Modeling Consolidation Structures and Reporting
Figure 31: Modeling Options Vary by Dimension Type
Depending on the dimension type, system requires certain properties. For example, currency
is required for an Entity type dimension and account type is required for an account
dimension. Also, when adding properties, the system proposes which properties are needed,
depending how the dimension is used.
For online help for Dimension Properties, see https://help.sap.com/viewer/
d1711b4a86b447c38415629229003c02/11.0.2/en-US/
9a8d067646bb40448c06bbd14a1609f8.html
When New Property is selected, an empty line appears at the bottom where the administrator
can enter the property ID, name, and number of characters.
Properties define the behavior of members within the dimension. By assigning properties to
dimensions, you can implement powerful features in your reporting, member lookup,
formulas, data manager selections, and so on. You can filter on properties in many places in
the system.
For example, if you want to be able to select entities by geographic region, you simply add a
REGION property, and enter a region value for each entity. Then, you can filter and sort by
region, apply account logic by region, or define a report format based on region. The system
requires various properties depending on the dimension. You can also assign additional
properties for your business needs. Many of the properties are generic, such as ID and
description, while others can be unique to a dimension, such as scaling (used in EPM
formatting sheets to display values in thousands or millions).
When New Property is selected, an empty line appears at the bottom where the administrator
can enter the property ID, name, and number of characters.
Properties define the behavior of members within the dimension. By assigning properties to
dimensions, you can implement powerful features in your reporting, member lookup,
48
© Copyright. All rights reserved.
Lesson: Configuring Environments and Dimensions
formulas, data manager selections, and so on. You can filter on properties in many places in
the system.
For example, if you want to be able to select entities by geographic region, you simply add a
REGION property, and enter a region value for each entity. Then, you can filter and sort by
region, apply account logic by region, or define a report format based on region. The system
requires various properties depending on the dimension. You can also assign additional
properties for your business needs. Many of the properties are generic, such as ID and
description, while others can be unique to a dimension, such as scaling (used in EPM
formatting sheets to display values in thousands or millions).
Dimension Features
You can perform the following activities when working with dimensions:
●
Adding properties to dimensions.
●
Adding properties to dimensions in Consolidation, Ownership, and Rates models.
●
Modifying dimension properties.
You can modify a property that is not a system-generated property. You edit and change a
property directly in the property list. You cannot change a property ID after you have saved
it. However, you can change a property name and the number of characters, but you
cannot reduce the length previously specified.
●
Adding property values.
●
Removing dimension properties.
You cannot delete a system-generated property.
When you add a property to a dimension, you must specify the following:
●
An ID for the property, which has the following properties:
-
The ID is not case-sensitive but is displayed in the case it is typed.
-
The ID must be unique (regardless of case) within a dimension.
-
The maximum length of an ID is 20 characters.
-
The permitted characters are: A-Z, a-z, 0-9, _ ,-,.
-
-
The ID cannot start with a number as a first character.
-
The ID cannot be the same ID as that of a system-generated property.
-
The ID cannot contain the string of characters “PARENTH”.
-
●
●
An ID cannot contain the following invalid characters: single quotation mark ('), double
quotation mark ("), backslash (\), ampersand (&), dash (-).
The ID cannot be the same ID as one of the special properties described in the table,
Reserved IDs.
A name for the property. The maximum length for a property name is 40 characters.
A number of characters whereby the maximum length for values of the property. This
must be an integer greater than zero.
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Unit 2: Modeling Consolidation Structures and Reporting
When you add a property to a dimension Consolidation, Ownership, and Rates Models, you
can add the set of predefined and required properties for the following dimension types:
Account, Category, Audit, Entity, Time, and Currency.
If there is already a property with the same ID as one of the required properties, the system
handles this as follows:
●
●
●
The corresponding property is not added to the dimension.
If the number of characters of the existing property is greater than expected, the system
does not change it.
If the number of characters is smaller, it is updated with the default value specified for this
property in the set of predefined properties. A message is displayed at the end of the
process to inform you if the system did not add some of the properties because they
already exist, and if the system changed the number of characters.
System-Generated Properties
Table 8: System-Generated Properties
System-Generated Properties are generated for all dimension types but are not displayed in
the list of properties for a dimension in the BPC Web Client.
Property
Description
DESCRIPTION
Display name of the dimension.
This appears in the language specified in the preferences settings.
CALC
Indicates whether the member is calculated using a formula, or is at a
parent level.
The property values can be viewed in the Member Selector in the
EPM add-in.
HIR
Stores the hierarchy IDs associated with the member. For example,
H1;H2.
Referencing Dimensions Perform Property Validation
●
●
●
An account dimension can only use a rate type, such as AVG, if the rate exists in the
referenced dimension.
An entity dimension can only use a currency, such as EUR, if the currency exists in the
referenced dimension.
An intercompany dimension member can only be linked to an entity member if it exists in
the referenced dimension.
Table 9: Referencing Dimensions
The following are the only four dimension types that can be referenced:
50
Dimension
Ref Type
Property
Validation
A - Account
Account
Rate Type
End, Avg rates, and so on,
C - Category
Time
Year
See note
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Lesson: Configuring Environments and Dimensions
Dimension
Ref Type
Property
Validation
E - Entity
Currency
Currency
Local Currency
I - Inter Company
Entity
Entity
Trading Partner
Note:
Category is referenced to the time dimension. For example, if planning on
category member Plan2012, the system can be set up so that values could not be
entered for 2013.
The Account Dimension
Figure 32: Account Dimension
Note:
Apply Hierarchy Order allows you to display the members in order based on a
hierarchy.
Display allows you to switch to the technical name or description of properties.
Export to CSV allows you to download the members.
The Account type dimension contains the chart of accounts.
The properties for account type dimensions are defined as follows:
Account Dimension Properties
●
ACCTYPE is required for account type dimensions and is used to control sign display and
aggregation behavior in reporting.
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Unit 2: Modeling Consolidation Structures and Reporting
●
●
●
●
●
DIMLIST# properties are used as selection criteria in business rules.
ELIMACC is used in the US Elimination process to identify offset accounts and also to
select accounts in the Eliminations and Adjustments business rule by entering
PROP(ELIMACC).
GROUP is used to classify accounts, such as Profit & Loss (PL) or Balance Sheet (BS)
accounts.
IS_INPUT is used for report filtering.
RATETYPE is required in input forms, and is used to assign the currency conversion rule to
apply to the account, for example, AVG (average rate), END (ending rate) and HIST
(historical conversion).
●
SCALING is used to display values in thousands, for example, in formula-based reports.
●
TYPELIM is used as selection criteria in business rules.
The ACCTYPE property is added automatically by the system when creating an account type
dimension.
ACCTYPE Property Uses
●
Controls the value sign-in input forms and reports.
●
Prevents aggregation over time when using the measure (quarter/year-to-date).
Table 10: ACCTYPE Property
The following table outlines the ACCTYPE reporting logic:
ACCTYPE
Description
Sign in Database
Sign in Report
Aggregation Using Periodic
Measure
AST
Assets
+
+
No
LEQ
Liability and
Equity
-
+
No
INC
Income
-
+
Yes
EXP
Expense
+
+
Yes
Note:
The ACCTYPE property of a parent member also influences the value display in
the report even though no value is stored on the database for the parent member.
The sign of the ACCTYPE property is the default sign. But each account can store
positive or negative values.
52
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Lesson: Configuring Environments and Dimensions
Figure 33: The Account Dimension Structure
Note:
Allowing member formulas permits the use of a dimension member formula such
as Gross Margin %.
When creating an account type dimension, the system requires the TYPELIM property for
consolidation models for example.
Required Properties by Dimension Type and Model Type
Table 11: Required Properties by Dimension Type and Model Type
The following table includes the other properties that are required depending on the model
type:
Dimension Type
Consolidation
Ownership
Account
TYPELIM
IS_INPUT
Audit
COPYOPENING
Rate
DATASRC_STAGE
DATASRC_TYPE
DIMLIST
IS_CONSOL
IS_CONVERTED
OPENING_DATASRC
Category
CATEGORY_FOR_OPE
FX_DIFFERENCE_ONLY
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Unit 2: Modeling Consolidation Structures and Reporting
Dimension Type
Consolidation
Ownership
Rate
FX_SOURCE_CATEGORY
OPENING_PERIOD
OPENING_YEAR
OWN_CATEGORY
OWN_PERIOD
OWN_YEAR
RATE_CATEGORY
RATE_PERIOD
RATE_YEAR
STARTMNTH
Currency
CURRENCY_TYPE
Entity
ELIM, FX_TYPE, INTCO
Time
MONTHNUM
MD (Multiply - Divide)
Hint:
Direct rates are designated with an M while indirect rates use a D.
Note:
The definition of these properties is provided in the following lessons.
Subtables Type (Flow) Dimension
The flow dimension is used as follows:
54
●
Track opening, increase, decrease, closing balances for balance sheet accounts.
●
Cash flow reporting and planning.
●
Currency translation calculations.
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Lesson: Configuring Environments and Dimensions
Figure 34: The Flow Dimension
The flow dimension is used to break down the account activity. For example, some accounts,
such as fixed assets, use a flow dimension to identify opening, additions, deletions, transfers,
and ending balances.
Note:
You must define a member to record the closing balance. The value of the
member should equal the sum of the other flows (opening balance, additions, and
decreases).
The subtable type dimension is important for writing business rules that require different logic
depending on the flow type. Consolidated reports, such as cash flow statements and changes
in equity, also require the flow details.
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Unit 2: Modeling Consolidation Structures and Reporting
Flow Type Property
Figure 35: Flow Type Property
Note:
The flow type property is required in this dimension. You need to have one
member (and only one) with the opening flow type, and one with the closing flow
type. Other FLOWTYPE values are used in variation scope scenarios.
Flow Dimension Properties
Flow type: this is used to designate the opening and closing flows for example.
●
●
●
Scaling: this is used to format values in thousands for example.
Dimlist: this is a customer defined property that can be used for logic calls for example. In
class, we are using dimlist_var and dimlist_conv.
Maintaining Consolidation Dimensions
Entity Type Dimension
The entity dimension defines the organizational structure of the business units for your
model. Any dimension that is assigned the E type is an entity dimension. The entity dimension
contains the business units that are used to drive the business process.
For legal consolidation, in most cases, this will be the legal entity. In management
consolidation scenarios, the entity is defined as profit centers or segments. Legal and
management consolidations can be combined in a so-called matrix consolidation. In this case,
the entity is the combination of the company and, for example, the segment.
56
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Lesson: Configuring Environments and Dimensions
Figure 36: Entity Dimension
The properties for entity type dimensions are defined as follows:
●
●
●
CURRENCY is a required property and is used to store the local or functional currency for
each entity.
ELIM is used by US eliminations to identify, with a Y value, the entity where the eliminations
must be recorded.
FX_TYPE can be used to select entity-specific currency translation parameters in the
business rule tables via the Entity FX Type column.
●
INTCO is used identity the trading partner ID.
●
OWNER is used, for example, to store the user ID for work status activity.
●
REVIEWER is used, for example, to store the user ID for business process flow reviewers.
●
CONTROL_LEVEL is used to assign a specific set of control rules to the entity.
Note:
It is not necessary to assign currencies to parent members such as COFFEE or
SBU. This would not affect currency conversion.
Intercompany Type Dimension
The Intercompany dimension defines members for intercompany data to perform
intercompany elimination.
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Unit 2: Modeling Consolidation Structures and Reporting
Figure 37: Intercompany Type Dimension
ENTITY is a required property in the Intercompany type dimension. It is used to link the
related entity member. Intercompany usually references the entity dimension.
Options for Intercompany Type Dimensions
Note:
In the following table, when using option 1, you can first load trial balance on
I_NONE, and then load or input intercompany amounts on intercompany
members. (in case you do not have the intercompany details in the trial balance).
It also makes it possible to display all accounts in the same report. This is why we
use the "force intco member" in the currency and elimination business rules.
In option 1 I_NONE represents the trial balance, and the intercompany details are
"just" additional details to automate the elimination. In option 2 I_NONE
represents the third party, I_ALL represents the trial balance.
Option 1 is often used to ease the data collection process: you first load the trial
balance on I_NONE, and then you input manually details on I_XXX members (or
import them). This is because the intercompany details are not always fully
available in the source system.
Table 12: Intercompany Type Dimension — Option 1
I_NONE corresponds to the total amount (internal + external).
I_ALL corresponds to the internal amount only (with interco details).
58
ACCOUNT
INTERCO
AMOUNT
Sales
I_NONE
Sales
I_AR
100
Sales
I_CN
30
1000
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Lesson: Configuring Environments and Dimensions
ACCOUNT
INTERCO
Sales
I_ALL
AMOUNT
130
Table 13: Intercompany Type Dimension — Option 2
I_NONE corresponds to the third parties(external) amount only.
I_ALL corresponds to the total of both internal and external.
ACCOUNT
INTERCO
AMOUNT
Sales
I_NONE
870
Sales
I_AR
100
Sales
I_CN
30
Sales
I_ALL
1000
Category Type Dimension
The category type dimension is used to store different versions of data as follows:
●
Actual, Budget, Forecast
●
IFRS, USGAAP
●
Draft, Final, Published
●
Simulations
The properties for the category type dimension are defined as follows:
●
●
●
●
CATEGORY_FOR_OPE is used by the balance carryforward program to use a source
version that is different from the target.
FX_DIFFERENCE_ONLY, FX_SOURCE_CATEGORY, RATE_CATEGORY, RATE_PERIOD ,
RATE_YEAR, and STARTMTH are used for currency translation simulations.
OPENING_PERIOD is used to specify a month different to the default opening period (last
month of the prior year).
YEAR is used in planning scenarios to control user input to the appropriate time frame
based on the version. If YEAR is not used, any category member can be used for any time
member.
Note:
Category is referred to as Version in other SAP systems.
Group Type Dimension
The group dimension is mandatory in the consolidation and ownership type models.
Dimensional hierarchies are used to do roll ups. The Investment structure is not stored as a
dimensional hierarchy. It is stored as transaction data in the ownership model.
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Unit 2: Modeling Consolidation Structures and Reporting
The group type dimension is used to store data at the group level. This important dimension
stores consolidation group members, as follows:
●
One member is needed for each consolidation group, and one member is needed to input
the data before consolidation (for example, S_NONE).
●
When consolidation is executed, the system writes to the consolidation group IDs.
●
Consolidated statements are produced for each group.
Figure 38: Group Type Dimension
The properties for the group type dimension are defined as follows:
●
●
●
●
●
60
CURRENCY_TYPE is used to identify whether a group member corresponds to the local
currency amounts (N), or is a group where the amounts must be converted into group
currency (G).
GROUP_CURRENCY is used to identify the currencies written to when running conversion.
STORE_GROUP_CURR if set to N, currency translation results are written to group
members (CURRENCY_TYPE=G) only.
DATASRC_LEVEL is used to control the recording of elimination entries to higher-level
groups on a separated audit trail.
STORE_ENTITY can be used to aggregate consolidated amounts on a single entity
member to improve reporting performance.
●
ENTITY is used to identify the aggregation entity when STORE_ENTITY=Y.
●
STAGE_ONLY is used to control the aggregation of data in the case of multi-level groups.
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Lesson: Configuring Environments and Dimensions
●
●
PARENT_GROUP is used to create the group hierarchy in the ownership manager. This
property is specified in the ownership model setting: Parent/Child Property Used for the
Hierarchy of Groups.
CONSO_TYPE is used to assign a set of adjustments and eliminations rules to a specific
group.
Audit Type Dimension
The audit type dimension tracks the origin of data such as input, adjustments, and
eliminations.
Figure 39: Audit Type Dimension
The properties for the audit type dimension are defined as follows:
●
●
●
COPYOPENING uses value of Y to include it in balance carryforward.
DATASRC_STAGE is for multilevel staged consolidation, posting will be written to the
member value stored in this property.
DATASRC_TYPE is used to identify M - Manual, A - Automatic, L- Level Based, and I - Input
members. Only A - Automatic can be used in business rules.
●
DIMLIST can be used as a selection criterion in business rules.
●
ENABLEJRN can be used to limit dimension members in journal entries.
●
IS_CONSOL is used to identify members to include in elimination runs.
●
IS_CONVERTED is used to identify members to include in currency translation.
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Unit 2: Modeling Consolidation Structures and Reporting
●
OPENING_DATASRC can be used to identify a member for balance carryforward, if
different from the source. For example, use a unique member to write the results of
balance carryforward to such as BCF_OPENING.
Time Dimension
The time dimension defines whether you will use a monthly fiscal calendar or a different fiscal
calendar.
Figure 40: Time Dimension
The properties for the time type dimensions are defined as follows:
●
●
LEVEL is used to designate the time granularity such as month, quarter, and year.
MONTHNUM is used to identify the first month of the fiscal year as 1 for January, 2 for
February, and so on. If the first period of the fiscal calendar is April, then its MONTHNUM is
1, and so on.
●
PERIOD is used for reporting purposes.
●
TIMEID is a numeric ID for identifying the time member, for example, 20150100.
●
YEAR is used for reporting.
Hierarchies
Hierarchies are used for roll ups and expansions during reporting and also for data selections.
62
●
Hierarchies can be defined for any dimension.
●
Hierarchies can be loaded automatically, or can be added manually.
●
Hierarchies are used for rollups, expansions, and member selections.
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Lesson: Configuring Environments and Dimensions
Figure 41: Account Hierarchy
It is natural to have hierarchies for dimensions such as entity where the need for roll-ups is
common.
Hierarchies also allow the use of multiple views from one dimension. For example, an entity
dimension can be used to view data by company code, plant, or region. Hierarchies are stored
as SAP BW Hierarchies.
Time-Dependent Hierarchy
It is possible to define, for a given dimension, that the hierarchy is time-dependent.
Positioning of Time-Dependent Hierarchies
●
The business requirement calls for parent/child relationships that are date-dependent.
●
Only one target hierarchy is to be used.
●
For example, a regional type reorganization occurs, and you need to roll up the data before
instead of after the change.
●
The types of groups are identical (a regional roll-up instead of product line roll-up).
●
Users in the EPM add-in can simply select a drop-down for key date.
●
The data flow requires time-dependent data.
●
Time-dependent hierarchies should be compared to the option of multiple hierarchies
before implementing.
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Unit 2: Modeling Consolidation Structures and Reporting
Figure 42: Time-Dependent Hierarchy Example
Dimension referencing is used to validate property values against other dimension members.
A member in one dimension is a property value in another. For example, an entity can only
have a local currency such as EUR if it exists in the referenced currency dimension.
When entering members into a dimension, they can either be saved or they can be saved and
processed. The save option can be thought of as a temporary way to save the data but it
cannot be used unless it is processed.
64
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Lesson: Configuring Environments and Dimensions
Figure 43: Save and Process a Dimension
The Environment can be taken offline during processing. Offline mode makes the models
unavailable for data input but users can still report in read mode.
Dimension Members Used in Class
Table 14: Dimension Members Used in Class
The following table outlines the dimension members used in class:
Dimension Name
Dimension Type
Dimension Member
ACCOUNT
A
Sales, Cash, Balance Sheet, Profit and Loss
AUDITTRAIL
D
Input, Local adjustments, Eliminations
CATEGORY
C
Actual, Budget
CURRENCY
R
Local currency, USD, EUR, CNY, CAD
ENTITY
E
Germany, France, Brazil, China, US
FLOW
S
Opening balance, Increase, decrease
FXRATE
A
Average, Closing
INTERCO
I
I_US, I_FR, I_DE
OWNACCOUNT
A
Consolidation methods and rates
SCOPE
G
World, Europe, Asia, America
TIME
T
2018.12
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Unit 2: Modeling Consolidation Structures and Reporting
LESSON SUMMARY
You should now be able to:
66
●
Describe BPC environments
●
Design and maintain dimensions
© Copyright. All rights reserved.
Unit 2
Lesson 2
Creating Models for Consolidation
LESSON OVERVIEW
In this lesson, you learn about model types, and how to create models.
Business Example
You are designing your consolidation landscape and need to know how to configure the
models.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Design models for consolidation
Models for Consolidation
The following are the key points to note about Models for Consolidation:
●
Models represent transaction data tables.
●
A model consists of a homogeneous set of dimensions.
●
●
●
●
●
●
●
In general, the consolidation engine can be used for either consolidation type models or
finance type models.
For complex consolidation with mixed ownership, use the consolidation, rate, and
ownership models. In this example:
-
The consolidation model would store the financial data.
-
The ownership model would store the ownership investment structure.
-
The rate model would store the exchange rate data.
For simpler consolidation scenarios with 100% ownership, for example, you could use the
finance and rate models.
Consolidation type models can use all of the business rules and the Consolidation Monitor.
Finance type models cannot use the Consolidation Monitor, but it can use all of the
business rules except for Elimination and Adjustments.
You can use delivered models or create your own.
The consolidation engine can be used for either consolidation type models or finance type
models.
●
Most models consist of 10–15 dimensions.
●
Every model type requires category, account, time, and entity. Some require more.
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Unit 2: Modeling Consolidation Structures and Reporting
●
A model can only include one of any dimension type except for user defined.
●
Models can be updated via:
-
Manual input.
-
BPC Journal entries.
-
Data manager Imports from BW sources.
-
Data manager Imports from flat files.
●
The data in models is easily protected via BPC data access profiles.
●
Creating a model is easy, knowing how the model fits in to overall design is more involved.
Note:
It is also possible to load a BPC data table via a BW data transfer process, but it
would have to set to load mode, thereby preventing BPC writing activities.
Creating a New Model
Figure 44: Accessing Models
Models are maintained in the BPC web client. Go to the menu selector
and choose
Administration → Models and Dimensions → Models.
68
© Copyright. All rights reserved.
Lesson: Creating Models for Consolidation
Figure 45: Step 1: ID and Description
When you choose the New button on the toolbar, a six-step wizard opens to create a model.
The first step asks for the ID and description of the model.
You can decide whether or not you want to create a new model that is based on a blank or an
existing model.
Creating a model based on a blank model means that no reports, input forms, or data
manager packages, for example, will be copied from a source model.
Figure 46: Step 2: Source Model
You can also create a model using an existing model. Select An Existing Model and then select
the model to use as a source.
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69
Unit 2: Modeling Consolidation Structures and Reporting
If you decide in favor of this variant, the source dimensions are offered as dimensions for the
new model for you to retain or not.
Figure 47: Creating Models Step 3
A financial type model could be used for a simple financial close, for example, when all legal
subsidiaries are 100% owned (this is a general guideline.)
A consolidation type model could be used for a complex financial close, for example when
there are many different ownership percentages for the legal subsidiaries (this is a general
guideline.)
To use the large key figure setting, set the global parameter ENABLE_LARGE_KEY_FIGURE in
SPRO to a value of X.
Activate Large Key Figure Support in the SAP Reference IMG: https://help.sap.com/viewer/
d1711b4a86b447c38415629229003c02/11.0.4/en-US/
01794043d54544b4a1b5077252245699.html
Data Entry Mode
70
●
Both periodic and year-to-date (YTD) data entry (and storage) mode is supported.
●
The decision criteria include:
-
How have you stored consolidation data in the past?
-
Is the source YTD or periodic?
-
Do you need to plan on income statement data (periodic in nature)?
© Copyright. All rights reserved.
Lesson: Creating Models for Consolidation
●
●
●
●
You can report on the data as periodic, quarter-to-date (QTD), and YTD whether the data
entry mode is periodic or YTD.
When reporting on a YTD model, periodic income statement values are calculated by
taking the difference between the current period and the last period (formulas in the
measures dimension are used).
When reporting on a periodic model, YTD income statement values are calculated by
summing the periods (formulas in the measures dimension are used).
If YTD data storage is used:
Note:
This is a flexible solution, exceptions to these guidelines are possible.
-
-
-
-
●
Data loads will be cumulative and will therefore automatically include previous period
restatements.
Journal entries may need to be copied from one month to the next. Auto reverse will not
be needed.
Balance carry forward is run every month. The opening balance is the same for all
months.
You can use periodic calc to capture the periodic impact in the currency and elimination
adjustment business rules.
If periodic data storage is used:
-
-
-
Data loads will be periodic and will, therefore, not include prior previous restatements.
Journal entries will not need to be copied from one month to the next, but auto reverse
may be needed.
Balance carry forward is run once per year.
Figure 48: Example of a YTD Model
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Unit 2: Modeling Consolidation Structures and Reporting
The account type property and the formulas for the measures dimension are used to control
sign display and aggregation over time.
Figure 49: Example of a Periodic Model
Asset, liability, and owners equity accounts are not affected by the periodic vs. YTD setting,
because they are point in time values as defined via the AST and LEQ account types.
Types of Models
Table 15: Reporting Models
The following table describes the different types of reporting models and lists the required
dimensions for each:
Reporting
Model Types
Description
Required Dimensions
Standard
Use this model type for planning primarily.
Account (A)
No Business Rules.
Category (C)
Entity (E)
Time (T)
Financial
Perform management and simple consolidation.
Account (A)
Supports business rules: currency conversion, ac- Category (C)
count transformation, intercompany bookings, US
Entity (E)
eliminations, carry-forward rules, controls.
Time (T)
Choose an associated rate model.
Currency (R)
72
© Copyright. All rights reserved.
Lesson: Creating Models for Consolidation
Reporting
Model Types
Description
Required Dimensions
Consolidation
Complicated legal consolidation functions incorporate complex organizational structures involving full ownership, partial ownership, minority
ownership, and consolidation methods.
Account (A)
Must reference an ownership model and an exchange rates model.
Time (T)
Supports all business rules: currency conversion,
account transformation, intercompany bookings,
US eliminations, carry-forward rules, controls,
eliminations, and adjustments.
Group (G)
Category (C)
Entity (E)
Audit (D)
Intercompany (I)
Subtables (S)
Currency (R)
Note:
Because all six model types can be reported on in the EPM add-in, the term
Reporting Model should be interpreted to mean that the main purpose is reporting
on planning and consolidation data.
Table 16: Driver and Rate Models
The following table describes the dimension types required when creating the relevant model
type.
Driver and Rate
Model Types
Description
Required Dimensions
Exchange Rate
Supporting model for financial and
consolidation reporting. Models store
exchange rates that support currency
conversion.
Account (A)
Category (C)
Entity (E)
Time dimension must be identical in all Time (T)
models using the Exchange Rate Mod- Currency (R)
el.
Category member IDs must be the
same for all models using the Exchange Rate model.
Must include a currency dimension detailing the exchange rates by each input currency.
The currency dimension in a rate model does not need to have the REPORTING property.
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Unit 2: Modeling Consolidation Structures and Reporting
Driver and Rate
Model Types
Description
Required Dimensions
Ownership
Supporting model for a consolidation
model.
Account (A)
Stores information such as consolidation methods, ownership percentages,
and investment structure relationships.
Category (C)
Entity (E)
Time (T)
Intercompany (I)
Group (G)
Generic
Store cost driver information.
Account (A)
Category (C)
Entity (E)
Time (T)
Drivers and rates models support reporting models by storing data, such as currency
exchange rates and ownership percentages. You can report on drivers and rates model data.
You cannot define business rules for these model types.
Figure 50: Step 4: Dimensions
You cannot include multiple dimensions of the same type in a model. The only exception are
user-defined dimensions, because the system enumerates them such as U1, U2, and so on.
74
© Copyright. All rights reserved.
Lesson: Creating Models for Consolidation
When creating a new model, you have to ensure that all of the required dimension types are
added once to the model. Only dimensions that have at least one value can be included in a
model.
A status panel at the bottom of the wizard gives the information about the missing dimension
types.
Among the selected dimensions, you can also set the secured dimensions, because the data
security concept is initiated in the model. When defining the data access profile, we refer to
the secured dimensions of the relevant model and define the data access to the member of
the secured dimensions.
Figure 51: Step 5: Copy from Source
If you have selected An Existing Model in Step 2, you can flag the upper selections. You can
then copy the following objects in Step 5:
●
Data Manager Packages (all model types).
●
Journal Templates (if it exists in source model).
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Unit 2: Modeling Consolidation Structures and Reporting
Figure 52: Step 6: Review and Create
This step enables you to review the configuration of the model. It is possible to return and
change some settings or to press Create to confirm the model.
General Settings of a Model
Figure 53: Edit Model - General Settings for the Rate Model
Table 17: Edit Model - General Settings
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Option
Description
Large Key Figure
Supports up to 24 digits before and 7 digits after the decimal
point.
Normal Key Figure
Supports up to 13 digits before and 7 digits after the decimal
point.
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Lesson: Creating Models for Consolidation
Option
Description
Work Status; Data Audit;
Journal Template
Reflect whether they have been activated in features.
Enable Comments
Allows, for example, the use comments for variance explanations and planning assumptions.
Comment length
255 is the default, 1332 is the maximum.
Use as Source of Data
Generates a corresponding VirtualProvider to share data to
external systems in 10.x.
Generates a corresponding BAdI Provider to share data to
external systems in 11.0.
You can edit and modify the model by selecting it from the list of models. This opens a page to
view and manage the structure of the model’s dimensions, its type, and other general settings
and properties.
Features Used with a Model
Once a model is created, you can view the settings that are being used including whether work
status, data auditing, and journal template are on or off. You can also enable comments and
use the model as a source of data for external applications.
Additionally, you can add a description for the model. The model type and the data entry
mode cannot be changed once the model is saved.
Table 18: Features used with a Model
Feature
Description
Work Status
Set to On if the work status and data locking settings are enabled for the model.
Data Audit
Set to On if the data audit features are enabled for the model.
Journal Templates
Only relevant for reporting models. This is set to On if there is
a journal template specified for the model.
Enable Comments
Select this option to use the comments in the input reports.
Use as Source of Data
Use the Use as Source of Data for External Applications
checkbox to make data within the model available for evaluation through SAP Process Control. This flag allows external
applications to use this model as the source of data.
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Figure 54: Ownership Model in Edit Mode
Figure 55: Consolidation Model in Edit Mode
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Lesson: Creating Models for Consolidation
Figure 56: Consolidation Models and Dimensions
In a complex ownership scenario, for example, the consolidation type model is implemented.
It is referenced to both the rate and ownership model. All three models must use the same
time and category dimensions.
The consolidation and ownership models must use the same entity, interco, and scope
dimensions.
The consolidation and rate models can use the same currency dimension.
User-defined dimensions can be added to the consolidation model for management
consolidation purposes.
LESSON SUMMARY
You should now be able to:
●
Design models for consolidation
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Unit 2
Lesson 3
Creating a Report in the EPM Add-for Excel
LESSON OVERVIEW
This lesson shows you how to connect to the Microsoft Excel Interface of the EPM add-in, use
the EPM Context Bar, set user options, and work with reports and input schedules.
Business Example
To analyze consolidated figures, you want to use EPM Add-in reports.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain the EPM add-in components
●
Format Financial Statements
Using the EPM add-in for Consolidation
The following are the key points to note about the EPM add-in:
●
The EPM add-in is the main Microsoft Excel user interface for reporting and analysis.
●
The EPM add-in contains built in features for BPC.
●
The EPM add-in uses the account type property for sign display and balance sheet
aggregation over time.
●
The data manager is used to run month end closing tasks.
●
The EPM formatting sheet provides plenty of options to create financial statements.
●
Workbooks can be distributed and published in PDF format.
If you are already logged into the Web Client, you can simply launch the EPM add-in without
any additional logins.
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Figure 57: Connect to the EPM Add-in from Native Excel
Most users access the EPM add-in by going directly into Microsoft Excel.
The EPM tab is broken down into task groups, such as Reports and Data Analysis. Most of the
activities can also be carried out with buttons and VBA code.
The EPM add-in for Microsoft Office contains an EPM tab with a ribbon. The EPM tab is the
main entry point for performing reporting and data input actions. You can access the Hot
Keys by pressing the Alt key.
Figure 58: The Data Manager Tab
The Data Manager tab can be used to run jobs in BPC including data loads as well as planning
function-related.
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Figure 59: The EPM Context
You can move, resize, and hide the EPM context bar and the EPM pane. The first time you use
the EPM add-in, you need to choose the Show Pane & Context button on the EPM tab to
display the EPM context bar and the EPM pane. By default, the EPM context bar is displayed
horizontally, below the ribbon, and the EPM pane appears vertically on the right of the
window.
The EPM Context contains all model dimensions and the system provided measures
dimension. The measures dimension can be used to do periodic, QTD, and YTD reporting.
Key Date is used to select time-dependent parent child assignments.
Selection is by drop-down or entering members (if you turn on Enable Manual Entry of
Members in User Options).
Figure 60: The EPM Pane
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The EPM pane is displayed by default vertically on the right side of the window. This pane
includes the following areas: the active connection; information about the selected report,
including the connection used by the report, the name of the report, all the dimensions
available, the page axis dimensions, the row axis dimensions, and the column axis
dimensions.
You can hide the pane by deselecting the Display EPM Pane option in EPMOptionsUser
Options. Selecting the title bar of the pane and using drag and drop, you can move the pane to
the left side of the window or anywhere else in the window.
Only the most important options are discussed in the following sections. A link is also
provided later to the online help for Sheet and User options.
Figure 61: Sheet Options General Tab
The sheet options apply to the current worksheet.
Expand: This option controls what scope of member expansion occurs when you perform an
expand on a member.
Use as Input Form: If you want to enter and save data, select the option, then perform a
refresh on the sheet. You can then enter data and save it to the server.
Worksheet Type: You can disconnect a worksheet by selecting Start of the navigation path
Excel Worksheet Next navigation step Worksheet Type End of the navigation path in the EPM
Pane. Consequently, the checkbox corresponding to the current sheet is unchecked in the
Report Connections dialog box. This option is only available for stand-alone (without Analysis)
installs of the EPM add-in.
No Data and Zero Values: You can select options that deal with rows or columns that contain
no data or zero values in the reports.
Show as Microsoft Excel Comments: The Show as Microsoft Excel Comments option enables
you to display comments as standard Microsoft Office Excel comments: a small red triangle in
the corner of a cell indicates that the cell has a comment attached to it. When you rest the
pointer over the red triangle, the comment is displayed in a tooltip.
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Figure 62: Sheet Options Formatting Tab
Auto Fit Column Width: When the Auto Fit Column Width option is selected, the application
automatically changes the width of all columns of the report so that they fit the contents after
any refresh operation. This is equivalent to selecting all the columns containing the report and
double-clicking the right boundary of the Microsoft Excel column header after each EPM addin operation. This feature can be beneficial when you are doing on-demand analysis.
Use Excel Cell References: If you need to improve refresh performances, you can select Use
Excel Cell References. When selecting this option, inside a block, the first occurrence of a
header is identified as an EPMOlapMember; the other occurrences of the header use
Microsoft Excel cell references and references the cell that contains the first occurrence of
the header.
Display Dimension Names: You can choose to display the names of the dimensions used in the
row and column axis of all the reports of the current worksheet.
Apply Dynamic Formatting: You can apply a specific dynamic formatting to the current sheet.
To do so, select the Apply Dynamic Formatting option. The Default Formatting Sheet
dropdown list is made available. Select one of the dynamic formatting sheets you have
defined, in order to apply it to the reports of the current sheet.
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Figure 63: Sheet Options Refresh and Protection Tab
Keep Formula on Data: You can enter a formula in a cell that already contains data. When you
perform a refresh, the formula is removed. If you want the formulas entered on data to remain
after a refresh, select the Keep Formula on Data option.
Restore Dynamic Selection on Refresh after Navigation: When you expand or collapse, the
dynamic selection is automatically broken. For example, you perform a dynamic selection and
select the member Europe with the Member and Children relationship. When you perform a
collapse on one of its children in your report, the selection becomes static (you can check this
by opening the Member Selector).
You can use Protection to prevent users from changing worksheets and inputting data for
example.
Figure 64: User Option Navigation and Server Tab
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Expand/Collapse on Single Member: Use this option, for example, when you have two
dimensions in the rows and when you expand the inner dimension the system will only expand
for one outside dimension (Expand/Collapse on Single Member selected), or for all outside
dimension members (Expand/Collapse on Single Member not selected). If you have a report
with Entity as the first dimension and Account as the second dimension, then Entity is
considered to be the Outside dimension and Account is the Inner dimension.
Refresh Charts Automatically: To dynamically refresh the charts when performing actions in
the report, such as expand or collapse, select the Refresh Charts Automatically option.
Refresh on Context Change: Use this option to refresh the report whenever you change the
EPM Context.
The Server tab is used to reference the Enterprise server if you need to publish and EPM
workbook to the BI Launchpad for example.
Figure 65: User Option Display Tab
Context Bar and Pane: You can control whether the EPM Context / Pane appear or not.
Display Context inside EPM Pane: The EPM Context bar is displayed by default horizontally
and below the ribbon. The bar displays the dimensions that are included in the current cube/
model and the members that are used in the currently displayed report (or the saved
members in an offline report). You can hide the bar by deselecting the Display EPM Context
Bar option in EPM - User Options. This bar can also be displayed inside the EPM pane by
selecting the Display Context inside EPM Pane option. You can also move the bar into and
back from the pane, using the mouse move pointer.
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Figure 66: User Option Others Tab
Enable Manual Entry of Members: You can select other members from the EPM Context bar.
The data displayed changes to reflect the new context settings. To select another member for
a dimension, select a dimension dropdown list, then select Select Other Members. The
Member Selector opens and you can make your selection. You can also enter the complete ID
of a dimension member directly in the EPM Context bar dropdown lists provided that the
option is selected in the User Options. This option in not selected by default. When the option
is selected, the name of the dimension and the color are not displayed anymore in dropdown
lists. Note that the dropdown lists are not case-sensitive.
Use EPMMemberID in EPM formulas: You can also specify that for each EPM function formula
that you create, when you reference a cell that contains an EPMOlapMemberO member, the
"EPMMemberID" function is automatically added. For example, if you reference cell A6, when
this option is selected, A6 is automatically replaced by EPMMemberID(A6) if A6 contains an
EPMOlapMemberO function.
Figure 67: Context Options
Show Dimension Name: Dimension and member name display. By default, in the EPM Context
bar, the name of the dimension and the name of the member are displayed. If you want only
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Lesson: Creating a Report in the EPM Add-for Excel
the member name and not the dimension name to be displayed, you can deselect the Show
Dimension Name option.
Figure 68: Command Display Option
The Command Display can be used to display or hide task groups in the EPM add-in.
Help Links:
●
Sheet Options: https://help.sap.com/viewer/46f83019d80d4a0787baa7e49f3f95af/
2.4.4.0/en-US/f9c14e1d6faf1014878bae8cb0e91070.html
●
User Options: https://help.sap.com/viewer/46f83019d80d4a0787baa7e49f3f95af/
2.4.4.0/en-US/f9c23e516faf1014878bae8cb0e91070.html
By default, the member taken into account for a dimension is the one defined in the EPM
Context bar, with the member and children relationship. Once you add a dimension to an axis
section, you can select another member or relationship for the dimension by choosing the
dimension name that appears as a link. The EPM - Member Selector window opens, and you
can select the member and relationship for which you want the report to display.
Table 19: Elements of Member Selector Wizard
Element
Description
Hierarchy or list display
Allows you to choose how you would like to view the members.
Member filtering by properties
Filter members by property value.
Member search
Searches for a specific member.
Display
Allows you to define the display of member names. You choose
ID, Description, or ID – Description.
Non Contextual Relationship
Selects all members, all base level, insert blank member, select
via dimension property.
Display properties
Displays the properties of a selected member.
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Element
Description
Merge Members
When merging multiple filters, for example, an AND operator is
triggered. Unmerged filters perform an OR operation.
Sort or Group Members
by Property
Sorts and members, groups members by property, inserts a local member before or after the group, allows input of text for
subtotals, generates local member formulas.
Options
For the member selected and the relationship, you can choose
hierarchy levels and static vs. dynamic.
Add Members
Adds selected members and their relationship to the Member
Relationship.
Selected members
Helps you to select and sequence the members of the currently
selected dimension to appear in your report.
Figure 69: Member Selector Options
Dynamic selections are most commonly used because new children in a node are
automatically included. Static selections are used when a fixed set of members is needed.
Member Selection via Properties
Here is an example of how to use member properties: Members are selected if the HLEVEL is
2 or the Calc member flag is Y.
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Figure 70: Example of Member Selection via Properties
You can filter on one or more properties at a time.
Merged vs. Unmerged Filters
Figure 71: Merged vs. Unmerged Filter Selections
When using multiple filters, you can carry an OR statement to select members from both
filters. Ex: members that are parents OR in hierarchy level 2.
When using multiple filters, you can carry an AND statement to select members in common
between two filters. Ex: members that are parents AND in hierarchy level 2. The AND
statement returns the intersection between the two filters.
Local Members
The key features of local members are as follows:
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●
Used for variances, ratios, EPM, and Microsoft Excel functions.
●
Dynamic.
●
Results are not stored in database.
●
Great end-user option for calculations.
●
Just enter a formula in a cell and it is dynamically internalized into the report.
●
If needed, maintain in the EPM Report.
Local Member Variance Example
Figure 72: Local Member Definition
The figure, Local Member Definition, shows the properties of the local member that the
system creates.
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Figure 73: ROA Local Member Formula
In the preceding example, the Yr/Yr local member is using cell referencing. This prevents it
from repeating after every dimension array in the columns. The ROA local formula and Yr/Yr
intersect in cell H11. In this case, the Yr/Yr calculation takes precedence. For Yr/Yr, Apply to
rows as priority is not selected.
You can create local members for which the formulas use Microsoft Excel cell references and
not EPM keywords. Select the Use Excel Cell References option in the Local Members tab of
the Report Editor. The formulas of local members that are repeated adjust and behave
according to the Microsoft Excel relative references feature.
Format Financial Statements
The key features of EPM formatting are as follows:
●
●
The EPM formatting sheet contains the styles that you can use as your corporate
template.
The formatting sheet is then dynamically applied to either the Sheet Options or to the
Report Options.
●
You can copy formatting sheets to other workbooks.
●
Hierarchy formatting.
●
Odd/even row formatting.
●
Conditional formatting.
●
Lock cells dynamically.
●
The system-generated workbook templates have formatting sheets that you can copy.
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Figure 74: A Sample Delivered Formatting Sheet
The easiest way to format a report is to simply copy an existing format sheet from another
workbook, such as one of the delivered templates.
Figure 75: The Dynamic Formatting Template
Select View Formats to create the EPMFormattingSheet and also to hide it/display it.
Dynamic formatting is defined in a dedicated sheet. You can define rules to apply formats to
the hierarchy levels, types of members, odd or even rows, or columns and page axis
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dimensions. Because the EPM formatting sheet is a Microsoft Excel sheet, you can copy and
change it to apply it to other reports and worksheets.
There are several sections in the EPM formatting sheet.
EPM Formatting Sheet Sections
●
Hierarchy Level Formatting
●
Dimension Member/Property Formatting
●
Row and Column Banding (Odd/Even Rows)
●
Page Axis Formatting
Figure 76: Hierarchy Formatting
You can format different hierarchy levels to improve the readability of the data.
The first node of a hierarchy has level 1, the next lowest node or member has level 2, and so
on.
Table 20: Formatting Options
Formatting Option
Description
Section checkboxes Enables you to apply the sections (such as Hierarchy Level Formatting) styles to the reports.
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Formatting Option
Description
Priority to Column
Enables you to specify which one of the defined formats for rows or
Format or Priority to columns to apply first if there are conflicts.
Row Format
For example, if you choose Priority to Column Format, the column section is displayed below the row section and the precedence rules apply, whichever is the lower style wins.
Structure Levels
Apply formatting to explicit hierarchy levels, for example, hierarchy
level 3 is gray.
Relative Level
Apply formatting dynamically, for example, whatever is the third hierarchy level displayed, make it yellow, or, if you have Time below Category in the columns, Category is the Outer dimension.
Inner or Outer Dimension
The Inner dimension is the one closest to the data. The Outer dimension is the furthest from the data.
Formatting for data
and header
Allows you to use the standard Microsoft Excel cell formatting features in the Data and Header columns to define the formatting.
Use
By double-clicking the Use cell, you can select which format settings
to apply such as Number Format, Pattern, or Size.
Cell Protection
Allows you to unlock or lock cells as required.
To unlock cells, right-click the data cell and choose EPM → Lock Selected Cells..
Figure 77: Odd and Even Row Simple Example
The Row and Column Banding section can be used for Odd / Even row formatting.
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Figure 78: Dimension Member/Property Formatting Section
The Dimension Member/Property Formatting section is used primarily for Inputable,
Changed, Local, as well as members specifically selected or selected via properties.
Figure 79: Formatting Sheet – The USE Column
The Use column is important when you need to specifically apply a certain style. For example,
if a format lower in the format sheet overrides a style higher up in the format sheet, then you
will need to restrict which styles apply for the lower format.
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Figure 80: Precedence Rules
The Precedence Rule: When there is a formatting conflict, the lower one wins.
Hierarchy Level Formatting
You can define the following formatting options in the Hierarchy Level Formatting section:
●
●
Specify and format Base Level and Default Formats for Parents.
Apply level-specific formatting, for example, for level using Structure Levels or Relative
Levels format option.
●
Add or delete levels.
●
Choose dimensions, such as Inner or Outer Dimension.
●
●
Formatting on Structure Levels refers to the levels of the hierarchy as defined in the
source.
Formatting on Relative Levels refers to the levels that the report displays.
For example, if Quarter is the second level of the hierarchy as defined in the source
connection, but it is the first level displayed in the report, then first level format is applied.
Also, if you choose Relative Levels, a Start Formatting checkbox from the lower-level
displays. This checkbox enables you to invert the level order so that the lowest level is
displayed at the top.
If a row or column axis contains more than one dimension, you can specify the dimension
to which you want to apply the defined format. The Inner Dimension is the last dimension
and the Outer Dimension is the first dimension in the axis.
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Formatting
You can apply formatting to the following items:
●
Custom members (this only applies to BW connections)
●
Calculated members
●
Local members
●
Inputable members
●
Changed members
●
Specific members
●
Blank members
●
Property of a member
Figure 81: Member Property Formatting
The figure, Member Property Formatting, shows formatting based on a member property in
the EPM formatting sheet.
You can delete member property formatting by using the Remove button (to the right of the
formatting cell).
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Figure 82: Dynamic Cell Locking
The lock cell feature also resolves the Microsoft Excel pop-up warning, Unlock formula...
The figure, Dynamic Cell Locking, shows dynamic cell locking by using the formatting sheet to
prevent manual override of cell values.
Note:
By selecting Data Validation, you can apply the Excel Data Validation feature to a
worksheet. For example, you could build a rule that prevents users from entering
budget values that are greater than 110% of actual.
For the Lock Selected Cells feature to work, Cell Protection must be turned on.
Table 21: Formatting Sections
Formatting Section
Description
Row and Column Banding
Applies alternating styles (for example, even rows green,
odd rows yellow)
Applies the defined format to data or headers
Applies the defined format to rows or columns
Page Axis Formatting
100
Allows formatting for all dimensions of the page axis
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Lesson: Creating a Report in the EPM Add-for Excel
Sample Reports
Figure 83: Sample Balance Sheet Workbook
In the exercises, you will be using provided workbooks. In most of the workbooks, not all
dimensions are displayed in the EPM Context. To access this setting, go to: EPM Tab →
Options → Context Options. In the Context tab, you can see the Worksheet Hide/Lock
options, in the Workbook context level, you can access the Hide/Lock/Prompt options.
Figure 84: Formatted Balance Sheet
To display the EPM context members, use this function:
=EPMFullContext("","|")
To display the refresh time, you can use this syntax and function:
="Refreshed: " & EPMRefreshTime()
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Using the Group Hierarchy Setting
Figure 85: Ownership Based Hierarchy Report
In the preceding report, the following settings were made:
●
Owner-based hierarchy was turned on in the user options.
●
Scope and entity were added to rows.
●
The scope dimension has sort and subtotaling (local member in the rows) turned on.
●
The local member (total by scope) is formatted with a light gray.
●
There are extra rows inserted below the totals.
LESSON SUMMARY
You should now be able to:
102
●
Explain the EPM add-in components
●
Format Financial Statements
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Unit 2
Lesson 4
Options for Reporting BPC Standard Data
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Discuss Report Options for BPC Transaction Data
Run a BW Query in Analysis On BPC Standard Transaction Data
Positioning Analysis for Office
●
For BPC Standard, the EPM add-in is the primary Excel-based reporting tool.
●
However, in some instances it may add value to use other reporting applications to analyze
BPC Standard transaction data.
●
Analysis does not have the built-in filtering aka EPM Context.
●
Hierarchies can be accessed via drag and drop and have expansion symbols(+).
●
●
BW Queries and Analysis do not utilize the BPC reporting logic via the Account Type
property.
Properties can be used like dimensions in the report axis.
Note:
BPC Dimensions are called Characteristics in BW. BPC Properties are referred to
as Attributes in BW.
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Figure 86: BPC Standard Reporting Options
In a typical data flow, ECC transaction data is loaded into a Source Data staging table. It is
then imported into Transaction Data Model- related tables. In BPC Standard, a
CompositeProvider is automatically created for every model to serve as part of the virtual
reporting layer. If needed, a BW Query can be created on the CompositeProvider to meet
additional reporting requirements.
The Query can be consumed in a variety of BI Suite reporting tools such as SAP Analysis for
Microsoft Office, SAP Crystal Reports, SAP BusinessObjects Web Intelligence, SAP Lumira,
and Design Studio (SAP Lumira, designer edition).
Also, when using a Workbook in the EPM add-in, you can drill through to an ECC Web GUI or a
BW Query web report.
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Figure 87: BW Query Example for BPC Standard
BW Queries are created in SAP HANA studio by using the BW Modeling perspective. When
BW Queries are created on BPC Standard CompositeProviders, you will notice the unique (/
cpmb/...) namespace that is unique to BPC Standard.
There are four key points when using BW Queries on BPC Standard CompositeProviders:
1. You can use BPC attributes as both Display and Navigation Attributes. (Display Attributes
are only used for viewing purposes while Navigational Attributes can be to select
Dimension members.)
2. When using BW Queries on BPC Standard CompositeProviders, the Account Type
Property is not taken into account. That means that the AST and LEQ account values will
be negative and that the AST and LEQ type accounts can have their values aggregated
over time depending on how the query is designed.
3. You can change the dimension name if needed.
4. You can set default properties, such as Key or Name display, which can be changed by the
workbook user.
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Figure 88: Analysis Workbook with a Hierarchy and Filter
After inserting the BW Query into Analysis for Microsoft Excel, you can then easily change the
initial result set in many ways ... including the addition of dimensional hierarchies into the
rows and adding filters into the workbook.
Display attributes are only used for viewing purposes while navigational attributes can be
used to select Dimension members. In the preceding image at the top, accounts are in the
rows and the account type attribute is being displayed.
In the lower example, the account dimension is not in the rows, however, the account type
navigational attribute is in the rows. (Navigational attributes behave just like normal
characteristics.)
Figure 89: Analysis Workbook with a Waterfall Chart
You can use a data grid in conjunction with a variety of charts including the Waterfall chart.
A waterfall chart is a specialized type of bar chart. Typically, it can be used to show how an
initial value is affected by a series of intermediate positive or negative values. The start and
end values are always displayed in a column as totals. The individual interim values are not
displayed as subtotals, but as delta values. In Analysis, the crosstab values of the first key
figure are drawn into the waterfall chart cell by cell from top to bottom. Total rows in the
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crosstab are always ignored. The start and end column are displayed in gray color, negative
delta values in red, and positive delta values in green. The hierarchy nodes should be
expanded upwards. Expanded nodes are displayed as columns and are also displayed in gray
color.
Analysis for Microsoft Excel workbooks can be saved to the Enterprise Server or to BW. In
BW, you can save the workbook to either My Documents or to a BW Role.
LESSON SUMMARY
You should now be able to:
●
Discuss Report Options for BPC Transaction Data
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Unit 2
Learning Assessment
1. Which of the following are dimension types?
Choose the correct answers.
X
A Account.
X
B Audit.
X
C Flow Type.
X
D Time.
2. What is one of the main uses of the Financial model type?
Choose the correct answer.
X
A Planning and reporting with no currency translation.
X
B Planning and reporting with currency translation
X
C Consolidation with minority interest calculation.
X
D Consolidation with goodwill calculation.
3. EPM Reports have which of the following features?
Choose the correct answers.
X
A Multiple models.
X
B One or more dimensions in an axis.
X
C One or more properties in an axis.
X
D One connection.
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Unit 2: Learning Assessment
4. Which of the following describes Analysis for Office?
Choose the correct answers.
110
X
A Data import capability.
X
B Analysis does not have the built-in filtering aka EPM Context.
X
C Built in BPC features.
X
D Properties can be used like dimensions in the report axis.
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Unit 2
Learning Assessment - Answers
1. Which of the following are dimension types?
Choose the correct answers.
X
A Account.
X
B Audit.
X
C Flow Type.
X
D Time.
Correct: Account, audit, and time are valid dimension types.
2. What is one of the main uses of the Financial model type?
Choose the correct answer.
X
A Planning and reporting with no currency translation.
X
B Planning and reporting with currency translation
X
C Consolidation with minority interest calculation.
X
D Consolidation with goodwill calculation.
Correct: You can plan, report, run currency translation with a Finance model.
3. EPM Reports have which of the following features?
Choose the correct answers.
X
A Multiple models.
X
B One or more dimensions in an axis.
X
C One or more properties in an axis.
X
D One connection.
That is correct. Only one model per report, and only one connection per report.
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Unit 2: Learning Assessment - Answers
4. Which of the following describes Analysis for Office?
Choose the correct answers.
X
A Data import capability.
X
B Analysis does not have the built-in filtering aka EPM Context.
X
C Built in BPC features.
X
D Properties can be used like dimensions in the report axis.
That is correct. Analysis does not have the built-in filtering aka EPM Context. | Properties
can used like dimensions in the report axis.
112
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UNIT 3
Data Collection and Preparation
Lesson 1
Collecting Data
115
Lesson 2
Creating Consolidation Logic
129
Lesson 3
Configuring Reclassification
143
Lesson 4
Configuring Balance Carryforward
153
Lesson 5
Managing Journals
161
UNIT OBJECTIVES
●
Explain the data requirements for consolidation
●
Import data
●
Explain calculation options
●
Explain how script logic is used for consolidation
●
Use Script Logic for Regrouping
●
Explain Reclassification
●
Configure Reclassification
●
Run Reclassification Business Rules
●
Maintain Data Manager Packages for Reclassification
●
Explain balance carryforward
●
Outline the components for balance carryforward
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Unit 3: Data Collection and Preparation
114
●
Configure the balance carryforward business rule
●
Run balance carryforward
●
Manage BPC Journal Entries
●
Manage a journal template
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Unit 3
Lesson 1
Collecting Data
LESSON OVERVIEW
In this lesson, you learn how to import flat file and InfoProvider data.
Business Example
As you put your implementation plan together, one of the most important parts of the project
is to decide how and where the data will be reported to the consolidation model.
You need to know how the flat file process works, and how to import data from one SAP BW
InfoProvider, because some of your data may come from ECC via InfoCubes.
You also want to learn about input forms to input data.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain the data requirements for consolidation
●
Import data
Data Loads for Consolidation
Regardless of where your raw data will come from, the following list needs to be considered
when evaluating source data.
Consolidation Data Requirements
●
What are the different data sources?
●
Does a trading partner for intercompany transactions exist?
●
Are values for the flow details available?
●
Are there values for every dimension in every record?
●
Do all the entities use the same data collection method?
●
Do we need to convert data (for example, accounts) before loading?
●
Is the source data periodic or year-to-date?
Typical Process Steps
●
Load ECC master data to BW.
●
Import master data IDs, properties, and hierarchies from ECC.
●
Import master data via flat file if needed.
●
Load ECC transaction data to BW.
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Unit 3: Data Collection and Preparation
●
Import transaction data from BW to BPC.
●
Import transaction data from flat file to BPC, if needed.
Positioning the Data Manager
●
●
The data manager has packages which are jobs that are used to import, move, copy,
transform, manipulate, and clear data from the EPM add-in.
Provides basic extraction, transformation, and loading (ETL) operations for advanced
business users.
●
Allows you to modify package prompts and script logic files, for example.
●
Data Manager packages are created against delivered BW process chains.
●
Packages can be bundled into package links.
●
Packages and package links can be executed from BW process chains.
Data Manager Tab
The Data Manager is integrated with the Microsoft Excel interface.
Figure 90: Data Manager Tab
The Data Manager is a Planning and Consolidation module that helps you move data into the
system, copy, or move data within and between models, and export data from a model for use
in an external tool. In addition, the Data Manager supports mapping and complex
transformations of data. The Data Manager also allows you to export transactional and
master data to a file that you can use in an external system.
Two ribbons are available in the Data Manager tab, as follows:
116
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Lesson: Collecting Data
●
Connection
The Connection ribbon is the place where you define the web service connection to reach
Data Manager features.
You can set up system logic to work together with packages in the Data Manager. When
you import data, most packages automatically run default logic, which is contained in the
default.lgf file, for your application. You can also include logic files in packages, or you can
prompt users for logic files that they would like to use.
●
Data Manager Group
The Data Manager Group is where you can perform all SAP Business Planning and
Consolidation Access data manager tasks:
-
Run package or package links
-
View package, package link, and schedule status
-
Upload flat file data
-
Download flat file data
-
Preview flat file data
-
Organize packages, package links, delta initialization
-
Create and manage transformation files
-
Create and manage conversion files
The More button allows you to either clear the prompt values or change the dedicated
connection for Data Manager.
The Main Import Data Manager Packages
●
●
●
●
●
Import Master Data Attrib and Hier Flat File: import IDs, properties, text, and hierarchy
data via flat file.
BPC: Import Transaction Data from Flat File (Aggrgt Ovrwrt): import flat file transaction
data and sum data if duplicate keys exist.
BPC: Import Master Data Attributes/Texts from BW InfoObject: import IDs, properties,
text, and hierarchy data from BW characteristics.
BPC: Import Master Data Hierarchies from BW InfoObject: import hierarchy data from BW
characteristics.
BPC: Import Transaction Data from BW InfoProvider (Delta): import transaction data from
BW InfoProviders.
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Unit 3: Data Collection and Preparation
Import Load Ready Data
Figure 91: Flat File Import
Flat file import via a business user is frequently used, and will familiarize you with the
mechanics of data imports.
To import a file, the file must reside on the server. The Upload function allows you to move
files from your local machine or directory to the Data Files folder on the server.
After a file is uploaded, it can be previewed, as shown in the figure, Flat File Preview.
Figure 92: Flat File Preview
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Lesson: Collecting Data
Only base level members can be imported. In a load ready file, LEQ and INC accounts are
negative. There are no blanks in the file.
Steps to Import Flat File Transaction Data
1. Upload the flat file on to the server and preview it if needed.
2. Run the flat file import Data Manager package.
3. Select the flat file.
4. Select the transformation file.
5. Choose the update method.
6. Choose to run default logic or not.
●
Default logic can include balancing algorithms.
●
This is typically selected.
7. Choose to check work status or not.
●
If the period is closed, the import fails if you select Yes.
●
If the period is closed, you can choose to bypass it.
8. If necessary, select a key date.
9. Run, Schedule, or Run & Schedule the package.
10. Check the status.
Figure 93: Flat File Transaction Data Import: Data Manager Prompts
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Unit 3: Data Collection and Preparation
After the flat file is created in the source system, it must be uploaded to the server.
A data manager package is used to execute the import.
Check the Status
Figure 94: Data Manager Log for a Flat File Import
Data manager logs are very useful for validation and troubleshooting.
Update Options
●
●
●
●
After importing transaction data, there are normally subsequent updates in the source
system that also need to be imported.
When importing transaction data multiple times, there is always a concern regarding
duplication.
When using a delta data manager package, duplication is never an issue.
For example, after importing the May flat file on June 1st, you receive the adjusted file on
June 2nd with all of the same records with two exceptions:
1. Actual Benefits have increased from 1500 to 1600.
2. There is a new record for Actual Direct Labor for 160.
●
There are two main options:
1. Run a clear package for May.
2. Import the flat file transaction data so that Actual Benefits are increased by 100 and a
new record for Actual Direct Labor for 160 is inserted.
Table 22: Merge, Replace, Append
In the following example, you have this dataset in the model:
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Lesson: Collecting Data
Accounts
Category
Signed Data
Benefits
Actual
1500
OtherExp
Actual
500
Salary
Actual
250
Benefits
Budget
15
OtherExp
Budget
20
Benefits
Budget
30
This is the new file, with the following records:
Benefits
Actual
1600
DirectLabor
Actual
160
Merge Option
The merge option does not delete anything from the existing data set, and new records are
merged into the existing records.
Table 23: Example of Merge
In SAP Business Planning and Consolidation, using the Merge option, the reported output (net
effect) would be as follows:
Accounts
Category
Signed Data
Benefits
Actual
1600
OtherExp
Actual
500
DirectLabor
Actual
160
Salary
Actual
250
Benefits
Budget
15
OtherExp
Budget
20
Benefits
Budget
30
Replace and Clear Option
In the Replace and Clear scenario, the system checks to see if records have been loaded
previously for up to four dimensions: Audit Source, Time, Category, and Entity.
Table 24: Example of Replace and Clear
Using the Replace and Clear option, the reporting output (the net effect) would be as follows:
Accounts
Category
Signed Data
Benefits
Actual
1600
DirectLabor
Actual
160
Benefits
Budget
15
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Unit 3: Data Collection and Preparation
Accounts
Category
Signed Data
OtherExp
Budget
20
Benefits
Budget
30
Append Option
Table 25: Example of Append
Using the Append capabilities, the result would be as follows:
Accounts
Category
Signed Data
Benefits
Actual
3100
OtherExp
Actual
500
DirectLabor
Actual
160
Salary
Actual
250
Benefits
Budget
15
OtherExp
Budget
20
Benefits
Budget
30
Transform and Import Transaction Data
Transformation Files: Overview
●
●
●
Required for import and export packages.
The transformation file allows you to set up the rules for reading data from an external
source and put it in the proper form for your system database.
Transformation files are Microsoft Excel files that contain one worksheet, named
Instructions, with the following sections:
-
Options: includes flat file parameters and data sign change, for example.
-
Mapping: specifies the logic to map source columns to dimensions.
-
Conversion: if needed, defines which conversion sheet to use for a specific dimension.
Transformation Files: Options
The Options section includes the following default commands:
●
●
●
122
FORMAT = DELIMITED: There is no default, so this option must be defined. Delimited
means that there is a special character between each column of data, defined by the
Delimiter option. Fixed means that the data is in a fixed field format.
HEADER = YES: If YES, then your input file contains one header row that defines the fields.
DELIMITER: This can be COMMA, SPACE, or TAB. The default is a comma. If the FORMAT
option is set to DELIMITED, this option defines the single character that is the delimiter
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Lesson: Collecting Data
between columns. Use the keywords SPACE or TAB if space or tab-delimited delimiter is
used.
●
●
●
●
●
AMOUNTDECIMALPOINT = .: Define which character to use for decimals.
SKIP = 0: Number of lines to skip at the top of a data file. If your data file has a header, set
this value so that those lines are skipped during transformation. SKIPIF = NULL will skip a
record if it is null.
SKIPIF = : Used to skip comment lines in the source file.
VALIDATERECORDS=YES: If YES, validate the mapping and that members exist, and map
data in the proper order.
CREDITPOSITIVE=NO: If NO, all amounts referring to an ACCOUNT type (LEQ, INC) will
have their signs reversed.
●
MAXREJECTCOUNT=: The number of bad records before the entire load fails.
●
ROUNDAMOUNT= : Specify number of characters to round to during the import.
Transformation Files: Mapping
●
●
●
●
●
●
If the flat file is missing the header row, specify which column the dimension is in, for
example: Account = *COL(1).
If the flat file uses a different name (like Acc) to the dimension name (Account). For
example: Account = Acc.
If the source does not contain a dimension member, assign a constant value. For example:
FLOW = *NEWCOL(END).
Perform If / Then / Else logic. For example: CURRENCY = *IF(0OBJ_CURR =*STR() THEN
*STR(USD);0OBJ_CURR).
Parse and concatenate. For example, this is a concatenation: COSTCTR = *STR(CC_)+
0CO_AREA+0COSTCENTER.
For InfoProvider imports, specify the target and source mapping. For example: Entity =
0COMP_CODE.
Transformation File: Conversion Section
The *CONVERSION section of the transformation file defines which conversion sheet to
use with which dimension.
●
●
●
Syntax if conversion file sheet name is CONVERSION: Dimension Name =
WorkbookName.xls
Syntax if conversion file sheet name is ABC: Dimension Name = WorkbookName.xls!ABC
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Unit 3: Data Collection and Preparation
Figure 95: Transformation File Example
Transformation File: Parsing
Table 26: Transformation File - Parsing
The following table outlines some mapping examples:
124
Mapping Examples
Explanation
ACCOUNT = *COL(3)
The ACCOUNT is mapped to the third
column in the file
ACCOUNT = *COL(3,1,4)
The ACCOUNT is mapped to the digits
1:4 in the third column in the file
TIME=*COL(1)+*STR(.)+*COL(2)
The TIME is mapped to the concatenation of column 1 and 2, separated with
a "."
AUDITTRAIL=*NEWCOL(INPUT)
The AUDITTRAIL is not in the file and
its value is fixed to "INPUT"
FLOW=*IF(*COL(3,1:1)=*STR(3) THEN
*STR(F_TEC);*STR(F_END))
The FLOW is fixed to "F_TEC" when
the first digit of the ACCOUNT (in column 3) is "3", otherwise it is fixed to
"F_END"
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Lesson: Collecting Data
Transformation File Simulation
●
●
Optional.
All import packages can be simulated via the Validate and Process Transformation File
menu command.
●
Useful for new data flows and for debugging if necessary.
●
The dialog can remain open while performing trouble shooting or testing.
Note:
Use the Output File option to see the transformed data.
For more about data transformations, see https://help.sap.com/viewer/
ec68e48b18a44a49abb12b8ee8ae306f/10.0.32/en-US/
f9c2f4df6faf1014878bae8cb0e91070.html
Conversion Files
●
Optional.
●
Conversion files have three columns by definition:
1. External: The EXTERNAL column must contain the member names as found in the
source file.
2. Internal: INTERNAL column must specify the way the corresponding external names
should be written in the destination table.
3. Formula: This can be used to mark up values during import. For example, Value*1.20
would mark up incoming values by 20%.
●
Used to convert external / incoming data to internal data.
●
Use the Validate Process Conversion File menu command to save the file and validate it.
●
Conversion files are processed after transformation files.
●
Turn off MemberRecognition so that the system does not insert the EPMOLAPMember
function into the conversion file.
●
The default sheet name is CONVERSION.
●
You can have multiple sheets per conversion file.
●
Conversion files are assigned to the appropriate dimension in the transformation file.
The following is an example for entity:
External
Internal
Result
CHINA
CN
Convert CHINA to CN
The following is an example for account:
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Unit 3: Data Collection and Preparation
External
Internal
Result
000000311*
3110
Aggregate all 000000311x account into 3110.
000000????
????
Remove the leading zeroes.
Figure 96: Flat File Simulation
While the transformation file is open, you can run it in simulation mode. You can:
126
●
View the log.
●
View the output file.
●
View the rejected list, if any.
●
Save the log and/or output to Microsoft Excel, for example.
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Lesson: Collecting Data
Figure 97: China Flat File Preview
In the course example, the incoming data file has the following issues:
●
There is no header row.
●
The file contains China but it needs to be converted to CN.
●
Year and period are in different columns.
●
The accounts have six preceding zeroes that need to be parsed.
●
Multiple sales accounts (311*) are aggregated into a single account 3110.
Figure 98: China Flat File Summary
Data Import from SAP Business Warehouse (BW) InfoProviders
The data flow for the InfoProvider import is shown in the figure, InfoProvider Data Import
Scenario.
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Unit 3: Data Collection and Preparation
Figure 99: InfoProvider Data Import Scenario
You can load data into BPC from a BW InfoProvider, and benefit then from the Extraction
Load and Transform (ETL) capabilities of BW. Using the BW Business Content to load data
from SAP solutions (for example, ERP New GL) is also a great advantage.
The staging cube displayed in the figure, Info Provider Data Import Scenario, is optional. Its
main advantages are to prepare the data to the BPC format and therefore simplify the BPC
transformation.
The data load process from the source system to the BPC Model can be executed in FULL
mode or in DELTA mode. Delta mode can be used, for example, during the accounting closing
process, when accountants are posting late adjustments. Instead of loading all the data again,
you only need to load the data changed from the last data load.
The mapping section is used to assign the source characteristics to the target dimensions.
Conversion files and Transformation files are used also when you load data from an
InfoProvider.
In the mapping section of the Transformation file, you assign the characteristics of the source
InfoProvider to the target dimensions in your model.
LESSON SUMMARY
You should now be able to:
128
●
Explain the data requirements for consolidation
●
Import data
© Copyright. All rights reserved.
Unit 3
Lesson 2
Creating Consolidation Logic
LESSON OVERVIEW
In this lesson, you work with logics to define and execute script logic for Consolidation.
Business Example
You are implementing SAP Planning and Consolidation and you need to know how to use logic
to carry out consolidation tasks and to perform real time calculation for the Net Income and
the Balance Sheet Variation.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain calculation options
●
Explain how script logic is used for consolidation
●
Use Script Logic for Regrouping
Calculation Options
Positioning Script Logic
●
●
Advanced business users can program calculations without knowing ABAP or SAP HANA
SQL.
Script logic has all of the typical programming features such as: lookups, includes,
variables, loops, debugging, and scoping.
●
Script logic results are written to the database.
●
Script logic calculations can be triggered when data is written to the database.
●
Script logic can be run in batch mode via data manager packages.
●
Script logic files can contain both script and MDX syntax.
●
●
In general, MDX is slower than script which is slower than ABAP which is slower than SAP
HANA SQL.
How to best learn script logic: follow the lecture and labs in this class and then apply what
you learn to logic used in implementations.
Logic scripts are used for any kind of business calculations that must be performed on base
level members (that is, before aggregations). You can use MDX or SQL syntax. MDX logic has
an intuitive and easy-to-master syntax. However, experience has shown that, while that MDX
queries deliver easily, they have poor performance and do not scale well. It is also possible to
link to ABAP from the Logic Script editor. Logic Script statements are case insensitive.
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Unit 3: Data Collection and Preparation
Benefits related to Script Logic include the following:
Purpose of Script Logic
SAP Business Planning and Consolidation, version for NetWeaver, recognizes that each
business has their own unique view of what is important to their enterprise. Script logic allows
the development of unique calculations and data movements to occur that can be tailored for
the specific business requirement.
Advanced programming skills are not a prerequisite, and once the basics are understood,
programming in script logic can be intuitive and easily accomplished.
How Script Logic Works
When the logic module is started, the system performs the following:
●
●
Read a specific data selection from the model.
Apply a set of user-defined formulas, which is stored in a logic file, to the data read from
the model.
●
Calculate any new or modified records and their values.
●
Write results directly to the database as base member data.
There are multiple ways to perform calculations in SAP Business Planning and Consolidation.
The tables, Calculation Options: Results in Database, and Calculation Options: Results Not in
Database, present a high-level summary of where calculations can be performed, and how to
position local members.
Table 27: Calculation Options: Results in Database
Calculation Type
Options
Use Case Example
Script logic
Real time
Driver-based formulas
Batch Mode
Allocations
Month end closing tasks
Currency translation
Business rules
IC eliminations
Ownership eliminations
Balance carry forward
Reclassification
Matching
Calculation Options: Results Not in Database
Table 28: Calculation Options: Results Not in Database
Calculation Type
Options
Use Case Example
Microsoft Excel
Local member formulas
ROA, Variances
Native Microsoft Excel
Net present value
formulas or functions
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Lesson: Creating Consolidation Logic
Calculation Type
Options
Use Case Example
Dimension member formulas
Calculate a dimension member
Gross margin %
Logic processing can be broken down into three main components, as follows:
Logic Processing Components
1. Scoping:
What records will the script logic file read from the model?
2. Body or Code:
What do I want to do with the scoped records?
3. Write the results to the database.
Script Logic is similar to any programming syntax. It includes loops, local variables, global
variables, expressions, lookups, and system reserved words.
Script Logic Basics
1. Two forward slash characters (//) are used for comments.
2. An asterisk (*) in the first position, with no spaces before or after, signals executable code.
3. If performing multiplication, spaces before and after the asterisk (*) are allowed.
4. Spaces before and after the equals (=) sign are allowed.
5. Script in the default logic file is executed when data is written to the database.
6. Journal entry logic is contained in the file Journal.LGF.
7. Compiled logic is recorded in LGX files.
8. Logic Scripts are defined within each model.
9. Cross model calculations are available for models within the same environment.
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Unit 3: Data Collection and Preparation
Accessing Script Logic Files
Figure 100: Accessing Script Logic Files
To create a script logic file, go to the Administration page in the Web Client. In the Rules area,
choose Logic Scripts. Go to the scripts for the model and choose New. Enter a file name and
choose Create.
The Script Logic User Interface
Figure 101: The Script Logic User Interface
The logic script editor has features such as drag and drop and autocomplete, which makes it
easy to use. Enter an asterisk (*) to see a drop-down.
You can enter code manually, or you can paste code. During development, code can be saved
even if it is not complete, so that you can save your code as you work. When you save the
code, it validates it.
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Lesson: Creating Consolidation Logic
Default Logic is Triggered When Data is Saved to the Database
Figure 102: Default Logic is Triggered When Data is Saved to the Database
In the preceding figure, an example using multi dimensional expression (MDX) syntax is
shown. MDX syntax uses square brackets [] in the statements. Since labor is being calculated,
it is preceded by # (this is an MDX requirement).
Using Includes
●
Logic files can be included in other logic files including the default logic file.
●
Using includes in the default logic file makes it easier to manage.
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Unit 3: Data Collection and Preparation
Figure 103: Include a Logic File in the Default Logic File
To execute logic on a real-time basis, simply place it in the default logic file or reference
another logic file with an *INCLUDE statement. Any code or included files in the default logic
file are executed when data is saved to the database.
Note:
The logic editor may not display the character in the first position (in this release).
Also, when accessing a logic file, it may be necessary to click in the workspace in
order to display the existing code.
Key Points
The following are the key points to note about script logic:
●
Script logic results are written to the database.
●
Any code in the default logic file is executed when data is written to the database.
●
Script logic can also be run via data manager packages.
●
MDX syntax uses [].
●
Script syntax is preceded with a *.
Logic for Business Rules
Script logic is defined within each Model and is used to calculate data. Calculations defined for
a specific member ID create base level data in the model.
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Lesson: Creating Consolidation Logic
Figure 104: Using Logic to Run Business Rules
In the figure, Using Logic to Run Business Rules, the following steps occur:
1. The user runs the Balance Carryforward package.
2. This package script executes the BALANCE_CARRYFORWARD.LGF Logic Script.
3. The BALANCE_CARRYFORWARD.LGF Logic Script executes the business rules.
4. The Carry Forward rule creates the opening balances for the balance sheet.
Note:
All models include at least the C-Category, A-Account, T-Time, and E-Entity
dimension types.
Purpose of Each Logic File
Table 29: Purpose of Each Logic File
The logic described in the following table is delivered with SAP Business and Planning and
Consolidation:
File
Purpose
Calcaccount.lgf
Execute account-based calculation rules to calculate, for example, the
cash flow statement or other reclassifications.
Consolidation.lgf
Execute Eliminations and Adjustments rules to eliminate, for example,
intercompany accounts, investments, or record minority interests.
Copy_Opening.lgf Execute carry-forward rules to carry over closing balances.
Default.lgf
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Logic included here is executed every time data is written to the Model
via manual input, consolidation runs, or via the Data Manager.
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Unit 3: Data Collection and Preparation
File
Purpose
Fxtrans.lgf
Execute currency translation rules to convert local currencies to group
currencies.
ICBooking.lgf
Execute the intercompany bookings rules to correct intercompany differences.
ICData.lgf
Copy and combine intercompany data from entities and from their partners for the intercompany reconciliation.
ICElim.lgf
Execute US elimination rules.
Journal.lgf
Any logic included here is executed every time data is written to the
Model via a journal entry.
Consolidation.lgf logic is used only by a consolidation Data Manager package, not the
Consolidate function in the Consolidation Monitor.
Note:
The logic file names are not fixed and can be changed in the package definition.
One logic file can include several calculations, such as currency conversion and
consolidation.
Sample Logic for Balance Carry Forward
// Copying Opening balance
*RUN_PROGRAM COPYOPENING
CATEGORY = %CATEGORY_SET%
CURRENCY = %CURRENCY_SET%
TID_RA = %TIME_SET%
OTHER = [ENTITY = %ENTITY_SET%]
*ENDRUN_PROGRAM
The balance carry forward file runs the COPYOPENING delivered program. It also has
prompts for four dimensions. The corresponding data manager package would also have four
prompts.
Sample Logic for Consolidation
// Running currency conversion
*RUN_PROGRAM CURR_CONVERSION
CATEGORY = %CATEGORY_SET%
GROUP = %SCOPE_SET%
TID_RA = %TIME_SET%
*ENDRUN_PROGRAM
// Running consolidation
*RUN_PROGRAM CONSOLIDATION
CATEGORY = %CATEGORY_SET%
GROUP = %SCOPE_SET%
TID_RA = %TIME_SET%
*ENDRUN_PROGRAM
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Lesson: Creating Consolidation Logic
●
●
●
●
●
●
The Consolidation file runs the CURR_CONVERSION and CONSOLIDATION delivered
programs.
Therefore, this file runs not only currency translation but also consolidation.
The currency translation script is booking records to the group dimension which is then
used by the consolidation program.
The consolidation program runs the Eliminations and Adjustments business rules.
The logic file has prompts for three dimensions. The corresponding data manager package
would also have three prompts.
When translation and/or consolidation is run from the consolidation monitor, no script
files are used.
Default Logic Script for Balancing
As data is imported into the model, there is usually a need to keep the Income Statement and
Balance Sheet in balance. For example, Annual Net Income should equal Retained Earning
(Net Income). The net income is a flow used to break down the total balance of retained
earnings.
Figure 105: Net Income Calculation
Script logic can be used to balance the income statement to the balance sheet by calculating
net income and booking it to retained earnings.
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Figure 106: Logic Script Editor
Table 30: Default Logic Example for the Net Income Calculation
The following table outlines the default logic example for the net income calculation:
Logic script lines
Explanation
*XDIM_MEMBERSET T_ACCOUNT=BAS(TIS)
All base members below the TIS in the
parent (Total Income Statement) are
selected.
*WHEN T_ACCOUNT.ACCTYPE
The calculation depends on the account type (ACCTYPE).
*IS INC
For income accounts (INC).
*REC(FACTOR=1,T_ACCOUNT=2312,T_FLOW=F_ANI)
The net income is recorded with the
same sign (FACTOR=1) on the Retained earning account (2312) and
flow F_ANI.
*IS EXP
For expense accounts (EXP).
*REC(FACTOR=-1,T_ACCOUNT=2312,T_FLOW=F_ANI)
The net income is recorded with a reverse sign (FACTOR=-1) on the Retained earning account (2312) for flow
F_ANI.
*ENDWHEN
Net Variation Calculation
In the figure, Net Variation Calculation, the example shows that the net variation is calculated
as follows: closing balance minus the opening balance or other flows. The following are the
possible outcomes:
●
138
For the Property Plant and Equipment account, the flow values must be adjusted to make
the net variation equal zero (assuming this is the business requirement).
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Lesson: Creating Consolidation Logic
●
For the cash account, the detailed flow schedule is not required in this example.
Figure 107: Net Variation Calculation
Table 31: Default Logic Example for the Net Variation Calculation
The following table outlines the default logic example for the net variation calculation:
Logic script lines
Explanation
*XDIM_MEMBERSET T_ACCOUNT=BAS(TBS)
All base members below the TBS parent
(Balance Sheet) are selected.
*XDIM_MEMBERSET T_FLOW=<ALL>
All flow members are selected.
*WHEN T_FLOW.DIMLIST_VAR
The calculation depends on the flow DIMLIST_VAR property.
*IS BAL
For the closing balance flow (BAL).
*REC(FACTOR=1,T_FLOW=F_VAR)
The variation is flow calculated with the
same sign (FACTOR=1).
*IS_MOV
For the other movement flows (MOV)
*REC(FACTOR=–1,T_FLOW=F_VAR)
The variation is flow calculated with a reverse sign (FACTOR=–1).
*ENDWHEN
Hint:
A good way to test the default logic is to use a simple input template. Because
the default logic is run on a real-time basis, whenever data is entered, the results
are updated immediately.
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Note:
You can also use logic that only applies to incoming data via journal entries by
adding script to a file named JOURNAL.LGF. Additionally, whenever the
JOURNAL.LGF file is used, the logic in the DEFAULT.LGF logic file is not called for
journal entries.
Create Script Logic for Regrouping
Use case:
●
The reclassification business rule does not have the option to use a threshold as a trigger.
●
Script logic can be triggered if cash is negative for example.
●
This may be needed for non-SAP data.
Regrouping Script Logic
Figure 108: Regrouping Logic File
The code performs the following:
●
●
Row 8–12: The data region to be read from is defined.
●
Row 14–15: For the asset reclass accounts.
●
●
●
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Row 1–2: look-up accounts with a ASSET/LIAB_RECLASS property value of Y and assign
them to the local variables: ASSET/LIAB_ACCTS.
Row 18: If the asset account is < 0, multiply x-1 and record the value to the same account
and the LC_ADJ_A audit.
Row 19: If the asset account is < 0, multiply x 1 and record the value to the reclass account
and the RECLASS audit.
Row 23: For the liability reclass accounts.
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Lesson: Creating Consolidation Logic
●
●
●
Row 24: If the liability account is < 0, multiply x-1 and record the value to the same account
and the LC_ADJ_A audit.
Row 19: If the liability account is < 0, multiply x 1 and record the value to the reclass
account and the RECLASS audit.
Row 20: Since there is a *WHEN statement, there must be an *ENDWHEN.
Regrouping Test Results
Figure 109: Regrouping Result
LESSON SUMMARY
You should now be able to:
●
Explain calculation options
●
Explain how script logic is used for consolidation
●
Use Script Logic for Regrouping
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142
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Unit 3
Lesson 3
Configuring Reclassification
LESSON OVERVIEW
In this lesson, you learn how to set up reclassification.
Business Example
You are looking for a way to automate cash flow calculations and automatic adjustments.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain Reclassification
●
Configure Reclassification
●
Run Reclassification Business Rules
●
Maintain Data Manager Packages for Reclassification
Reclassification Business Rule Overview
The following are the key points to note about Reclassification:
●
Use to perform simple cash flow calculations.
●
Calculate annual net income and post to retained earnings.
●
Transfer subsidiary finished goods inventory into corporate work in process inventory.
●
Automate manual journal entries.
●
You can run different reclasses for different purposes by using multiple rule IDs.
●
Also referred to as: account based calculation rules and calc account.
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Figure 110: Net Income Calculation
Components of Reclassification
Account-based calculations are executed using a Data Manager Package.
The package runs a logic script that executes the business rules.
The package includes prompts for the following dimensions:
●
Category
●
Time
●
Entity
●
Currency
The script logic file includes the identifier for each Account-based Calculation business rule.
Note:
Account Based rules can be included in the DEFAULT or the JOURNAL script logic
files for real-time calculations.
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Lesson: Configuring Reclassification
Figure 111: Account-Based Calculation Logic
Figure 112: Reclassification Component Diagram
Reclassification Components:
●
●
●
The reclassification script logic file including:
-
The CALC_ACCOUNT program
-
Dimension member prompts
-
CALC ID of the business rule
The account-based calculation business rule
-
Rule ID
-
Source and destination members, and so on
The reclassification data manager package.
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-
Dimension member prompts
-
Link to the script logic file
-
The /CPMB/RUNCALCACCOUNT process chain in BW
Account-Based Calculation Rules
Account transformation reads and aggregates the values posted to specific combinations of
accounts, flows, and audits. It then posts the aggregated amount under an alternate
destination account, flow and audit combination.
The account transformation business rule inverts the sign when posting calculated amounts if
appropriate. This rule can also use reference data in other periods and years to determine
amounts to post, and it supports year-to-date calculations in period-based models.
Figure 113: Account-Based Rules
In the example shown in the figure, Account-Based Rules, it is required, from the group
perspective, to reclassify extraordinary expenses and income in the non-operating section of
the Profit and Loss statement.
The first rule reverses the value of the account 3320 - Extraordinary item. Because the
destination account is not defined, it is the same as the source account.
The second rule records the value from the account 3320 - Extraordinary item to the account
3220 - Other non operating.
Account-Based Calculation: Business Rule Fields
Table 32: Account-Based Calculation: Business Rule Fields
The following table outlines the account-based calculation business rule fields:
146
Field
Definition
ID
Identifier used in the logic file to call the business rule
Source Account
The source account base level, parent, or dimlist property value.
Category
The source category base level, parent, or dimlist property value.
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Lesson: Configuring Reclassification
Field
Definition
Source Flow
The source flow base level, parent, or dimlist property value.
Source Audit
The source audit base level, parent, or dimlist property value.
Destination Account
The destination account base level or parent. If blank, inherit from
source.
Destination Category
The destination category base level, parent, or property value.
Destination Flow
The destination flow base level or parent. If blank, inherit from
source.
Destination Audit
The destination audit base level or parent. If blank, inherit from
source.
Reverse Sign
Reverse the sign of the source value.
Source Period
If not specified, the source time period is the same as the destination. This could also be used in planning scenarios.
Source Year
If not specified, the source year is the same as the destination.
This could also be used in planning scenarios.
Force Intco Member
Use an intercompany member different from the source data record.
Apply to YTD
In a periodic model, select to calculate the YTD value to copy. This
could also be used in planning scenarios.
Level
This controls the sequence of execution for each row.
Remark
Description of that row’s calculation
Note:
Dimlist is a dimension property used as a grouping mechanism for business rule
member selections.
Annual Net Income to Retained Earnings Reclassification Example
In the example shown in the figure, Account Based Rules To Calculate The Net Income, the
Net Income account (2312) is calculated in two steps:
●
The flow F_ANI is calculated from the profit and loss accounts
●
The flow F_END is calculated as the sum of all flows.
Because the result of the first step is needed as source data for the second step, two business
rule IDs are created and executed subsequently.
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Figure 114: Account Based Rules To Calculate The Net Income
Note:
You can use the level to determine the sequence of execution and thereby use
only one rule to perform two calculations, one after the other as long as the scope
is the same. Otherwise, when the data scoping is different between the two rules,
for example the intero=I_NONE in one and the second run is a valid interco, two
different rules/script logic/data manager packages would be used.
Maintain Data Manager Packages for Consolidation
Note:
When you create a model by copying from an existing model, the data manager
packages will be copied.
A package is a job that runs a BW process chain to copy data or import data into a model for
example. Typically, three package groups are used in the Data Manager:
●
Data Management
●
Financial Processes
●
System Administration
Data Manager Packages are technically process chains. A process chain is a sequence of
processes such as:
1. Start: the start process is typically scheduled to run periodically.
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Lesson: Configuring Reclassification
2. Load data from ECC or other source system.
3. Import data into a model.
Organize Package List
Figure 115: Organize Package List
To add a package to a model, use the following steps:
1. In the Data Manager tab, choose Organize Package List.
2. From the Package drop-down choose Add Package.
3. Use the Select button to choose a process chain.
4. Select the task type user or admin package and choose Add.
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Data Manager Package Configuration
Figure 116: Package Configuration Options
You can configure packages to meet various business needs:
●
Change the instructions that appear in the dialogs.
●
Modify the dimension member prompts.
●
Attach custom script logic files.
●
150
If the type is set to selectinput, the member selector will default to list view and you will be
able to select Member only without switching to the hierarchy view.
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Lesson: Configuring Reclassification
Predefined Constants: https://help.sap.com/viewer/
ec68e48b18a44a49abb12b8ee8ae306f/10.0.32/en-US/
f9c5f6066faf1014878bae8cb0e91070.html
Prompt Commands: https://help.sap.com/viewer/ec68e48b18a44a49abb12b8ee8ae306f/
10.0.32/en-US/f9c605866faf1014878bae8cb0e91070.html
INFO Instructions: https://help.sap.com/viewer/ec68e48b18a44a49abb12b8ee8ae306f/
10.0.32/en-US/f9c305956faf1014878bae8cb0e91070.html
LESSON SUMMARY
You should now be able to:
●
Explain Reclassification
●
Configure Reclassification
●
Run Reclassification Business Rules
●
Maintain Data Manager Packages for Reclassification
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Unit 3
Lesson 4
Configuring Balance Carryforward
LESSON OVERVIEW
In this lesson, you learn how to set up balance carryforward.
Business Example
You are preparing for the closing activities and so you are interested in the business rule for
balance carryforward.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain balance carryforward
●
Outline the components for balance carryforward
●
Configure the balance carryforward business rule
●
Run balance carryforward
Balance Carryforward Overview
The following are the key points to note about Balance Carryforward (BCF):
●
The closing balance of one year equals the opening balance of the following year from a
traditional perspective.
●
BCF is executed with a data manager package.
●
BCF does not carry forward audit ID values with an Automatic data source type.
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Figure 117: Copy Year End Balances
Copy Opening - Roll Up
Balance carryforward can also be used to perform roll ups of prior year values.
Figure 118: Copy Opening - Roll Up
Balance Carryforward Components
Balance Carryforward Package Prompts
Balance Carryforward is executed using a Data Manager Package. The package runs a logic
script that executes the business rule.
The package includes prompts for the following dimensions:
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Lesson: Configuring Balance Carryforward
●
Category
●
Time
●
Entity
●
Currency
The logic file is used to call the delivered Business Add-In and to provide prompts to the Data
Manager package.
Figure 119: Balance Carry Forward Logic
Because historical currency conversions use the AS_IS formula, we need to carry forward the
group currencies (USD for example). This selection will be made in the data manager
package.
Balance Carryforward Dimensional Data
There are supporting properties for the Flow, Audit, and Category dimensions.
The following is a supporting property in the Flow dimension:
Supporting Properties in the Flow Dimension
●
FLOW_TYPE
One member is given the value of OPENING and another will have the property value of
CLOSING.
The FLOW_TYPE property is used by the consolidation to carry forward the eliminations
and adjustments from the previous year.
Supporting Properties in the Audit Dimension
●
COPYOPENING
Use values of Y or N to include or exclude audit members in the Copy Opening process.
●
OPENING_DATASRC
Specific destination audit to which the opening balance should be written. If blank, they are
written to the same audit.
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Note:
The balance carryforward only copies the opening balances as found in the Audit
dimension members flagged as I (Input) and M (Manual) in the DATASRC_TYPE
property but not the A (Automatic) members.
This means that the procedure will only carry forward the Input balances and
Manual adjustments. The consolidation process will carry forward the Automatic
values.
Supporting Properties in the Category Dimension
●
CATEGORY_FOR_OPE
Blank or category from which to read the opening balances from (for example to use
Estimates as opening for a Budget Category). If blank, the balances are taken from the
same category.
●
OPENING_YEAR
Blank or year from which to read the opening balances from (absolute value, such as 2006
or an offset value, such as -2 or +3). If blank, the balances are taken over from the last
year.
●
OPENING_PERIOD
Blank or specific period from which to read the opening balances from (an absolute value
like MAR, or relative value, such as -1, +4). If blank, the balances are taken from the last
period of the prior year.
Balance Carryforward Business Rule
Figure 120: Balance Carry Forward Rule
The rule in the figure, Balance Carry Forward Rules, selects the ending balance (F_END) of all
balance sheet accounts (TBS) and copies it to the opening balance (F_OPE).
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Lesson: Configuring Balance Carryforward
Note:
Leave the destination audit blank in order to keep the audit id the same from
source to target because we want to keep all data sources the same as the
previous year.
Table 33: Balance Carry Forward Rule Fields
The following table outlines the balance carry forward rule fields:
Field
Definition
Source Account
The source account base level, parent, or dimlist property value
Source Flow
The source flow base level, parent, or dimlist property value
Source Audit
The source audit base level, parent, or dimlist property value
Destination Account
The destination account base level or parent. If blank, inherit from
source
Destination Flow
The destination flow base level or parent. If blank, inherit from source
Destination Audit
The destination audit base level or parent. If blank, inherit from source
Reverse Sign
Reverse the sign of the source value
Audit Type
Select data source type to include: A - All, I - Input, M - Manual
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
Apply to YTD
In a periodic model, select to calculate the YTD value to copy. This
could also be used in planning scenarios.
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Opening Balances
Figure 121: Opening Balances
How Often to Run BCF
●
In a YTD Model:
-
-
-
●
Balance Carry Forward (BCF) is run every month.
Consequently, the opening balance is the same every month (the opening balance for
every month will be equal to the prior year end's closing balance.
In a YTD model, each period is independent. For example, the consolidated statement
for march only selects March data in the database (not Jan plus Feb plus Mar), so
opening balance is needed for each month.
-
The investment/equity opening balances need to be populated every month.
-
Opening balances that are created via BCF are part of flow balancing.
In a periodic model:
-
BCF is run once per year.
-
Use the YTD measure in reports for the YTD reports.
-
The investment/equity opening balances need to be populated every month.
Note:
Based on project specific requirements, solutions may be developed that are
different than the preceding guidelines.
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Lesson: Configuring Balance Carryforward
LESSON SUMMARY
You should now be able to:
●
Explain balance carryforward
●
Outline the components for balance carryforward
●
Configure the balance carryforward business rule
●
Run balance carryforward
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Unit 3
Lesson 5
Managing Journals
LESSON OVERVIEW
In this lesson, you learn about scenarios for using journals, how to set them up, how to control
them, and how to post journals.
Note:
Now that we have loaded the general ledger data, we may need to post adjusting
entries such as when subsidiaries report finished goods inventory but from a
group perspective, it is a work in progress.
Be prepared to discuss the pros and cons of creating adjusting entries in Business
Planning and Consolidation. Some customers are familiar with some
standardizing entries, while others want to do those in the source system and load
to Business Planning and Consolidation.
Business Example
You need to create top side group level adjusting entries during your closing process, and so
you are interested in the capability of journals and the associated control mechanisms.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Manage BPC Journal Entries
●
Manage a journal template
Journals Overview
●
Top side entries.
●
Correct errors from source systems - only if absolutely necessary.
●
Elimination entries.
●
Consolidation adjustment entries.
●
In 10.x, each Model can only have one journal template.
●
In 11.0, each Model can only have multiple journal templates.
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Note:
Some customers are okay with a reasonable number of standardizing entries in
the Planning and Consolidation solution against a unique data source for clarity.
If there was an error in the source system, most people would like to make that fix
in the source and load that corrected data again.
Other companies do not want any journal entries in this system because it makes
reconciliation more difficult since the source system will remain unchanged.
Journal Posting
After the template is created and security is in place, journals can be used. A journal posting
updates the InfoCube and the Journal detail table.
Figure 122: Journal Overview
Note:
See the upcoming procedure To Look up Journal Detail Tables on how to look up
the generated journal table. Also, the Ujj_jrnl table contains the user, timestamp,
and other detailed information.
Journals can be used to adjust imported data as well as data after eliminations. For each
journal several detail rows can be saved. To provide this functionality, a set of internal tables
is used.
The aggregated figure per journal ID are stored in the Model. This means that detailed journal
information is stored in system tables, and aggregated totals of these journals are stored in
the cube.
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Note:
Data manager packages do not create journal entries in the Business Planning and
Consolidation application. For example, when you run the eliminations package,
no journal entry is created, although records are inserted into the InfoCube. A log
is stored in the data manager and you can also use the data audit reports.
Journals Page
Journal activity takes place exclusively in the Web interface. The journal page displays existing
journals based on your context selections.
Figure 123: Journals Page
Table 34: Journal Page Options
The Journals Page includes the following options:
Option
Action
Model
Select the model to work in.
Context dimensions
Select members to filter the list of existing journals. Only the journal header dimensions are included in the context.
New journal
Create new journal.
Copy to
Copy an existing journal to a different destination.
Post/Unpost
Post or unpost a journal and update the values in the cube.
Report
Create a report with the selected journals.
Lock/Unlock
Lock or unlock the journal to prevent the unposting of it.
Advanced Functions
In the Journal Header, shown in the figure, Journal Structure, the following options allow you
to perform advanced functions:
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Unit 3: Data Collection and Preparation
●
Balanced
This option allows you to require that journals are balanced upon posting.
●
Reopen in Next Period
This option allows you to reopen (copy) the journal in a subsequent time period.
●
Auto Reverse
This option allows you to reverse the credit or debit value in the journal entry in the next
time period.
●
Multiple Headers
Use this option, for example, to post multiple periods in one journal ID.
●
Multiple Values
Use this option, for example, to post different values per month.
Note:
The Auto Reverse option sets up a new journal with saved status; it does not create
postings.
Figure 124: Journal Structure
You can create a journal for multiple periods at one time. Each period could also have a
different value by currency for example.
Copy Journal To
Journals can be copied to a different destination, or to the next period.
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Note:
When using a Model in YTD Data Entry Mode, it may be necessary to copy journals
from month to month if the adjusting entry applies to every month.
This is because, for YTD models, reports do not add data from prior periods to
display YTD data.
As a result, journal values in January, for example, would not appear in a February
YTD report.
Figure 125: Copy Journal To
Journal Control Options
Table 35: How to Control Journal Activity
The following table outlines to control journal activity:
The Control
How it Works
Limit which dimension members can be The ENABLEJRN dimension property with a value
posted to
of Y
Lock a data intersection for Journals
Work status with a work state of Locked for the
Journal Interface
Journal security tasks
Assign journal tasks to users / teams
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The Control
How it Works
Balance by entity and / or currency
Activate the Balanced by Entity and Balanced by
Currency parameters in the journal template
Journal Security Tasks and What They Allow
●
Manage
- Create and maintain journal templates
- Clear journal tables
- Create journals
●
Edit - Create or modify journal entries
●
Post - Post journal entries
●
View - View journal entries
●
UnPost - Unpost journal entries
●
Lock / UnLock - Lock and unlock journal entries
●
ReOpen - Reopen journal entries
Journal Report
The figure, Journals List, shows how, on the Journals Page, you can view a list of journals and
their status.
Note:
Group ID is used when creating multi period journals for example.
Figure 126: Journals List
Journal Query
By default, the Journal Page displays journals according to your Context selections by default.
You can, however, change your filter criteria by using the advanced query, such as Created By
Me or Created Today.
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Lesson: Managing Journals
Figure 127: Journal Query
The Advanced Query allows you to select journals on multiple criteria.
By choosing one or more journals and Report, you can view the header and line item data for a
journal.
Journal Entry Report
You can generate and print reports based on journal entries. These reports, which are webbased, represent an audit trail of all journal entries. The printed journal entry report contains
all postings for the selected journal entry or entries.
Figure 128: Journals Report
The following information displays for auditing purposes:
●
Model - Model that the journal is posted in
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●
ID - The journal ID
●
Status - The current status of the journal entry.
Statuses include Saved, Posted, Unposted, and New.
●
Created By - Who created the journal
●
Modified On - When the journal was modified
●
Posted On - When the journal was posted
●
Original ID - If a journal entry is reopened, the old journal ID is the ID of the original entry.
●
Group ID - Taken from the first journal ID in the Group.
●
Description - The journal header description
●
Dimensions and Members - Dimensions and members in the header
Advanced Posting Options
You can post a journal for multiple months at a time. To do this, select Multiple Values.
When you select the Multiple Values checkbox, the associated dimensions member lookup
becomes available.
Note:
With Multiple Values, you can use different values per month.
Figure 129: Journal Multiple Posting
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Lesson: Managing Journals
You can also post a journal for multiple dimension member values at a time.
To do this, use the Multiple Headers checkbox.
When you select the Multiple Headers checkbox, the associated Dimensions member lookup
then becomes available.
Prerequisites for Reopening Journal Entries
You can reopen one or more journal entries from a previous period, and post them to another
set of accounts for the following period.
To reopen journals, these are the prerequisites:
●
The administrator has customized the reopen translation table. The translation table
defines the source and destination accounts for the reopening of journals. You define
translations on accounts and define criteria on other dimensions.
Caution:
The translation table referred to above is not for currency translation. It is a
mapping table with source and target members IDs.
●
The system is set to allow for reopening of journals using the Allow Journals to be
Reopened journal parameter.
●
The selected source journal entries are posted to the database.
●
The Reopen in Next Period option is selected in the journal entry.
To use reopening, the Account Group and the Source and Target dimensions must be
specified.
Note:
There are four account types: AST, EXP, INC, and LEQ. Each row must include
one.
The Filtering Property returns a list of accounts to which the reopen rule is applied.
Journal Logic Script
Figure 130: Journal Logic Script
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Unit 3: Data Collection and Preparation
The figure, Journal Logic Script, shows an example of the Journal.lgf logic script that executes
Account-based Calculations for the Net Income and the Ending balance.
Note:
The NETINCOME reclass calculates the net income flow for retained earnings. The
JRN_ENDING reclass balances the balance sheet flows.
Journal Templates
Note:
In 10.x, each Model can only have one journal template.
In 11.0, each Model can only have multiple journal templates.
On the Administration page, you can manage journal templates and journal parameters.
Figure 131: Journal Administration
Table 36: Journal Administration Options
The following table outlines journal administration options:
170
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Lesson: Managing Journals
Option
Actions
Journal Template
Select and sort dimensions for the header and the row details.
Define additional properties and their values.
Define reopening rules.
Journal Parameters *
Enforce balanced journals
Allow journals to be reopened.
Restrict the number of displayed journals.
Delete Journals *
Delete the journal detail table contents.
* Per journal template in 11.0. Per Model in 10.x.
Journals Header
When creating a new template, you must choose which dimensions to keep in the header
versus the row detail.
Note:
The account and flow dimension must always be in the Detail Column.
Figure 132: Journal Header
The following three journal model parameters are available:
1. Enforce Balanced Journals
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Unit 3: Data Collection and Preparation
Select this parameter to specify that journals must be balanced when they are posted.
2. Allow Journals to be Reopened
Select this parameter to allow users to reopen journals. If selected, the Reopen button
appears in the toolbar in the Journals page of Consolidation Central.
3. Restrict the number of displayed journals
This option limits the lines in the journals list to improve the performance.
Additional Properties
Additional properties can be added to your template.
Use the Text type to record textual information with the journal detail data.
Note:
If you use the Text type, then you will need to Add / Maintain Values. For example,
use an additional property of Reason for Journal, and values such as management
review, late adjustments, auditors, and recommendation.
Use the Date type to record a date in the journal detail data.
Note:
You can then record an approval date.
The system does not require additional header items, but your business process
may. If they are present in your journal entry form, they are not required to post a
journal entry.
Figure 133: Journal Additional Properties
Changes in the Journal Template
If you need to change a template, you can do so without clearing the detail table except if you
need to move dimensions from the line items to the header.
Table 37: Changing Journal Templates
The following table outlines changes to journal templates:
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Lesson: Managing Journals
Change
Impact on Journal Detail Table
Balancing parameters
None
ReOpen parameter
None
Move dimensions from the header to line
items
None
Move dimensions from the line items to the
header
Must be deleted
Change reopen rules
None
To Look up Journal Detail Tables
1. In the BW server, run transaction SE38.
2. Enter the program, UJ0_GET_GEN_TABNAME.
3. Choose F8.
4. Enter your environment and model.
5. Choose F8.
You can now see your journal details.
To Upload Journals
In scenarios where you need to book numerous journal entries, you can upload them with the
following procedure.
1. Post at least one journal entry in the system.
2. In the Data Manager, choose Organize package list.
3. Right-click the yellow area and navigate to Add package → Select → Business Planning
and Consolidation: Other Function → BPC: Export Journal.
4. Add the BPC: Export Journal package to your model.
5. Use the same process to add the BPC: Restore Journal package to your model.
6. To generate the flat file, execute the package BPC: Export Journal.
7. Insert new journal IDs into the flat file.
8. Execute the package BPC: Restore Journal to upload the new journals.
The InfoCube and journal detail tables are updated.
LESSON SUMMARY
You should now be able to:
●
Manage BPC Journal Entries
●
Manage a journal template
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174
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Unit 3
Learning Assessment
1. Which of the following components are mandatory to load data?
Choose the correct answers.
X
A A Data Manager Package.
X
B A Transformation file.
X
C A Conversion file.
X
D A Script Logic file.
2. Which of the following is the correct purpose of the Consolidation.lgf logic script?
Choose the correct answer.
X
A Execute carry-forward rules to carry over closing balances.
X
B Execute US elimination rules.
X
C Execute Eliminations and Adjustments rules to eliminate, for example,
intercompany accounts, investments, or record minority interests.
X
D Execute the intercompany bookings rules to correct intercompany differences.
3. Which of the following is not a Reclassification business rule field?
Choose the correct answer.
X
A Category.
X
B Flow.
X
C Entity.
X
D Audit.
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Unit 3: Learning Assessment
4. Which of the following are options to run BCF?
Choose the correct answers.
X
A Control monitor.
X
B Consolidation monitor.
X
C Data Manager package link.
X
D Data Manager package.
5. Which of the following are options when using journals.
Choose the correct answers.
176
X
A Multiple periods.
X
B Multiple models.
X
C Multiple values.
X
D Multiple templates.
© Copyright. All rights reserved.
Unit 3
Learning Assessment - Answers
1. Which of the following components are mandatory to load data?
Choose the correct answers.
X
A A Data Manager Package.
X
B A Transformation file.
X
C A Conversion file.
X
D A Script Logic file.
Correct: A package and transformation are required to import data.
2. Which of the following is the correct purpose of the Consolidation.lgf logic script?
Choose the correct answer.
X
A Execute carry-forward rules to carry over closing balances.
X
B Execute US elimination rules.
X
C Execute Eliminations and Adjustments rules to eliminate, for example,
intercompany accounts, investments, or record minority interests.
X
D Execute the intercompany bookings rules to correct intercompany differences.
Correct. The purpose of the Consolidation.lgf logic script is to execute Eliminations and
Adjustments rules to eliminate, for example, intercompany accounts, investments, or
record minority interests.
3. Which of the following is not a Reclassification business rule field?
Choose the correct answer.
X
A Category.
X
B Flow.
X
C Entity.
X
D Audit.
Correct: Category, flow and audit are Reclassification business rule fields.
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Unit 3: Learning Assessment - Answers
4. Which of the following are options to run BCF?
Choose the correct answers.
X
A Control monitor.
X
B Consolidation monitor.
X
C Data Manager package link.
X
D Data Manager package.
Correct: You can run BCF with either a Data Manager package or link.
5. Which of the following are options when using journals.
Choose the correct answers.
X
A Multiple periods.
X
B Multiple models.
X
C Multiple values.
X
D Multiple templates.
Correct: You can post multiple periods at once with multiple values by category for
example. You can use multiple journal templates per model.
178
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UNIT 4
Consolidations and
Eliminations
Lesson 1
Translating Local Currency
181
Lesson 2
Configuring Intercompany Matching
195
Lesson 3
Using the Ownership Manager
205
Lesson 4
Configuring Integration Rules
219
Lesson 5
Eliminating Intercompany Transactions
231
Lesson 6
Configuring Intercompany US Elimination
243
Lesson 7
Designing Management, Matrix, and Multiple Accounting Standards Solutions
247
Lesson 8
Describing Consolidation and Elimination Principles
253
Lesson 9
Consolidating Investments
259
Lesson 10
Describing Stage Consolidation
271
Lesson 11
Describing Scope Variation
275
Lesson 12
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Unit 4: Consolidations and Eliminations
Configuring Equity Pickup: Optional
283
UNIT OBJECTIVES
180
●
Describe the concepts of currency translation
●
Configure currency translation rules
●
Run currency translation
●
Describe intercompany matching
●
Configure intercompany matching
●
Configure intercompany bookings
●
Create ownership data in the Ownership Manager
●
Calculate ownership data
●
Set up integration rules
●
Create business rules for intercompany receivables and payables elimination
●
Create business rules for intercompany sales and cost of sales elimination
●
Configure US Intercompany Elimination
●
Explain the Options for Multiple Accounting Standards
●
Discuss Management Consolidation
●
Configure Matrix Consolidation
●
Describe consolidation and elimination principles
●
Eliminate investment accounts
●
Consolidate equity accounts
●
Eliminate dividends
●
Describe stage consolidation
●
Describe Scope Variation
●
Configure equity pickup
© Copyright. All rights reserved.
Unit 4
Lesson 1
Translating Local Currency
LESSON OVERVIEW
In this lesson, you learn the business reasons and setup for currency translation.
Business Example
Financial data reported by consolidation units is usually transferred to corporate in local
currency. You need to translate this data to group currency before you can create
consolidated financial statements.
Note:
Currency Translation is also designated Currency Conversion. Both terms can be
used.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe the concepts of currency translation
●
Configure currency translation rules
●
Run currency translation
Currency Translation Overview
The following are the key points regarding currency translation:
●
BPC currency translation is a flexible solution.
●
Subsidiaries usually feed their trial balances to corporate in local currency.
●
Currency translation converts local currency values into group currency and the original
local currency values are unchanged.
●
Subsidiaries could also feed local currency and/or group currency values as well.
●
Some companies only have one currency so no currency calculations are required.
●
Various exchange rates are stored in the Rate Model by month and by category.
●
Different exchange rates (average, end, historical) need to be applied to different
accounts.
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Unit 4: Consolidations and Eliminations
Note:
In this section the standard currency translation, using business rules is
described.
A currency translation using script logic can address very specific scenarios, like
translating the transaction currency to the local currency. This is not described
here.
Figure 134: Currency Translation Key Points
The figure, Currency Translation Key Points, shows that after currency translation, new
records are created in group currencies.
Note:
1000 * .8 = 800
800 / 1.2 = 667
The default currency translation supplied with the product for multi-currency
models performs a cross rate translation. It multiplies the amount in local
currency by the ratio between the destination and source currency rates. This
allows the model to use only one rate table for translating any source currency
into any destination currency.
Common Principles of Currency Translation
Table 38: Currency Translation Principles
The following table outlines the principles of currency translation:
Set of accounts
Set of flows
Balance sheet accounts Opening
(excluding Investments
and Equity)
182
Movements
Translation methods
The opening balance is translated using the
closing rate of the previous year
The movements of the period are translated using the average rate
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Lesson: Translating Local Currency
Set of accounts
Investments and Equity
account
Profit and Loss accounts
Set of flows
Translation methods
Ending
The ending balance is translated using the
ending rate
Currency Difference
The currency difference is recorded on a
CTA flow on the original account or CTA
flow and CTA account.
Opening
The opening balance remains unchanged
from the previous year
Movements
The movements of the period are translated using the average rate
Ending
The ending balance (historical) is the sum
of the opening balance and the movements
Currency Difference
The currency difference is recorded in a
specific account in the Retained Earnings
Ending
Translation using the average rate
Note:
Other requirements may differ from the basic principles described here.
Currency Translation Example
Figure 135: Currency Translation Example
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Unit 4: Consolidations and Eliminations
The default translation reads all values in local currency (currency = LC), applies the desired
exchange rate according to the applicable rate model, and writes the results in the
appropriate reporting currency (USD, EUR, and so on).
Currency Translation Process
The overall logic of the currency translation is as follows:
1. For a given record, the source currency is determined by the CURRENCY property of the
entity.
2. The destination currency is determined by the user selection, or by the
GROUP_CURRENCY property of the selected group.
3. The currency translation rule is determined based on the RATETYPE property of the
account, and the flow of the source record.
4. Based on the selected currency translation rules, the system determines the logic to
apply, and the exchange rates from the rate model to use.
5. The system calculates the target currency values and creates the appropriate records in
the consolidation model.
Currency Related Properties
●
●
●
●
The source data record is translated only if the audit member has the property
IS_CONVERTED=Y.
The currency translation rules can also be selected using the FX_TYPE property of the
entity.
The rates can be used to multiply or to divide, depending on the MD property of the
currency dimension.
The rates can be selected in the Rate model for a different Tine / Category combination,
depending on the properties RATE_CATEGORY, RATE_YEAR, RATE_PERIOD of the
category.
Currency Translation Run Options
Table 39: Running Currency Translation
The following table outlines when and how to run currency translation:
When
How
In Batch Mode.
Consolidation Monitor.
No
Data Manager.
Yes
Default Logic is executed for each
data submission.
Yes
On a real time basis.
Does it use Script Logic?
The following are examples of when the batch mode option would be useful:
184
●
Run at the end of day after all data is collected.
●
After data imports.
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Lesson: Translating Local Currency
●
●
Run after rate updates.
As part of a standard consolidation cycle, once data for all reporting units has been
submitted and validated.
Executing currency translation on a real time basis may be applicable when you need to
report on multiple currencies right after a data import. Real time execution could impact the
performance of data submissions.
Components of Currency Translation Rules
Figure 136: Currency Translation Rule
This rule selects data on all accounts with the account type property AVG.
Currency Business Rule Fields
●
ID:
The ID is the rate type. It is used to select accounts for translation.
●
Description:
Description of the rule.
●
The source flow:
A valid base level or parent member ID from the flow dimension or several flow members
as identified by their dimlist/typelim properties.
●
Destination account:
The account that stores the translated value. If empty, it is the same as the source account
member.
●
Destination flow:
The flow member that stores the translated value. If empty, then it is the same as the
source member.
●
Formula:
The formula to apply to the source value. This field can contain a member of the account
type dimension in the rate model (for example, AVG, END), or system reserved words such
as OPEEND, COPYLC, and AS_IS.
●
Force closing:
If checked, the system will also write a value into the closing balance in an additional
record.
●
Periodic Calc:
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Unit 4: Consolidations and Eliminations
This field can be used in a YTD Model when the currency translation should be performed
on the monthly value only. If the box is checked, the difference between current period and
prior period amounts is applied to the rate specified in the FORMULA column.
●
Entity Fx Type:
This field can be used to enforce a given set of rules for specific Entities. If this field has a
value, the rule will only be applied to the Entities having a matching value in the property
named FX_TYPE.
●
Remarks:
Comments.
Currency Translation Keywords
Currency translation keywords are used in the currency business rule formula field to select
rates for the calculation.
Table 40: Currency Translation Keywords
Keyword
Description
END
Use the rate of the corresponding member ID of the account-type dimension in the rate model (END, AVG).
END-AVG
Use the difference between two rates.
OPEEND
Use the rate of member END from the last period of the prior year.
COPYLC
Copy the local currency value to the group currency.
AS_IS
Leave unchanged values already in the target currency.
Note:
You cannot use a difference between a rate and another keyword, for example,
END-AS_IS
Logic File Component
When currency translation is run via the data manager, a logic script is executed.
Note:
When currency translation is run from the Consolidation Monitor, the program is
read directly and the logic script is not used.
The logic script in the figure, CURR_CONVERSION Logic Script, runs the program
CURR_CONVERSION, which executes the Currency Translation rules.
186
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Lesson: Translating Local Currency
Figure 137: CURR_CONVERSION Logic Script
Consolidation Model Components
Table 41: Consolidation Model Dimensions - Focus on Currency Translation
The following table shows the dimension properties that are important for currency
translation:
Dimension Type
Important Currency Related Requirements
Entity
The required property is CURRENCY, which stores the local currency of
the entity.
The property FX_TYPE allows you to filter the business rules depending
on this property.
Group
The required properties are as follows:
●
●
Category
CURRENCY_TYPE whose values are G for group currency or N for
non-group currency
GROUP_CURRENCY whose values are the group currency(s) such as
USD
This same category dimension must also be used in the rate model.
The properties RATE_CATEGORY, RATE_YEAR, and RATE_PERIOD can
be used to select the rate from a different category and time combination.
Currency
The required properties are as follows:
●
●
Account
RATETYPE assigns the account to a currency translation rule.
The required property is as follows:
●
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CURRENCY_TYPE whose values are T for transaction currency, R for
Reporting, and L for local currency.
The required property is as follows:
●
Flow
REPORTING whose values are Y or blank.
FLOWTYPE. The member with the property CLOSING is used when
the option FORCE_CLOSING is selected in the currency translation
rules.
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Dimension Type
Important Currency Related Requirements
Time
The required properties are as follows:
●
YEAR with values like 2018 and 2019.
●
PERIOD with values like JAN, FEB, ... DEC, Q1, Q2, Q3, Q4, TOTAL.
●
TIMEID with values like 201801, 201802 ... 201812.
●
MONTHNUM with values like 1, 2 ... 12.
The same time dimension must also be used in the Rate Model.
AUDIT
The required properties are as follows:
●
●
DATASRC_TYPE whose values are I – Input, M – Manual Adjustment,
A – Eliminations and Adjustments.
IS_CONVERTED whose values include: N – these members are ignored in the conversion, Y (or blank) – these members are converted
from LC into the desired currency, and G - these members are entered in a reporting currency are translated to group currency.
Note:
The system does not translate accounts with a rate type that is not a part of the
currency translation business rule. Accounts with a blank rate type are translated
with a factor 1.
Figure 138: Currency Component Diagram with the Data Manager
Currency Components When Using the Data Manager
●
188
The Currency script logic file including:
© Copyright. All rights reserved.
Lesson: Translating Local Currency
●
●
-
The CURR_CONVERSION program
-
Dimension member prompts
-
Incremental Mode: blank = Full, X = Incremental
The Currency business rule:
-
Rule ID: This is the rate type value
-
Source and destination members, and so on
The Currency data manager package:
-
Dimension member prompts
-
Link to the script logic file
-
The /CPMB/FX_RESTATMENT process chain in BW
Figure 139: Currency Component Diagram with the Consolidation Monitor
Currency Components When Using the Consolidation Monitor
●
●
The Currency business rule:
-
Rule ID: This is the rate type value
-
Source and destination members and so on
Consolidation monitor:
-
When running Translate Currency for a scope member such as World, the prompts
include:
■
Category
■
Time
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Unit 4: Consolidations and Eliminations
-
■
Scope
■
Entity: the global entity in the rate model contains the exchange rates
■
Post Logic Script: Choose None or select a file for a reclass for example
■
Execution Mode: Choose Full if there have been any rate, master data, or
configuration changes. Choose Incremental if the one change is the data in the
consolidation model.
When running Translate Currency for an entity member such as ZA, the prompts
include:
■
Category
■
Time
■
Entity
■
Currency
■
Post Logic Script: Choose None or select a file for a reclass for example.
■
Execution Mode: Choose Full if there have been any rate, master data, or
configuration changes. Choose Incremental if the one change is the data in the
consolidation model.
Note:
The consolidation monitor calls the currency program directly without using any
script logic files.
Rate Model Component
The Rate model stores rates by month and category. Rates can be input using an input form
or loaded using data manager package. Rates can also be stored by entity.
You have at least seven decimals at your disposal.
190
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Lesson: Translating Local Currency
Figure 140: Exchange Rates
Table 42: Rate Model Dimensions
The following table outlines Rate model dimensions:
Dimension Type
Important Currency Related Requirements
Category
The same category dimension must also be used in the consolidation
model.
Currency
Currency members must have an M or D (Multiply Divide) property value.
M is for direct rates and D is for indirect rates.
Entity
At a minimum the GLOBAL member must be stored in this dimension.
Additional entity members can be added to store entity specific rates.
Account
Members such as END, and AVG, are also rate type values in the consolidation model’s account dimension.
Time
The same time dimension must also be used in the consolidation model.
Currency Translation of a Balance Sheet Account
The figure, Currency Translation Results for a Fixed Assets Account, shows an example of
currency translation for one asset account and one entity.
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Unit 4: Consolidations and Eliminations
Figure 141: Currency Translation Results for a Fixed Assets Account
Currency Translation Rules for Balance Sheet Accounts
The figure, Currency Translation Rules for Balance Sheet Accounts, shows the business rule
to translate a balance sheet account such as inventory.
Figure 142: Currency Translation Rules for Balance Sheet Accounts
The rules in the figure, Currency Translation Rules for Balance Sheet Accounts, can be
described as follows:
Row 1: The opening balance is translated using the ending rate of the previous period
(OPEEND).
Note:
Flows here are selected by using a property (OPE) and not the IDs.
Row 2: The currency difference originated from the opening balance is calculated (ending rate
– opening rate) and recorded on the same account with the flow F_CTA.
Row 3: The other flows (selected with the property value AVG) are translated using the
average rate.
Row 4: The currency differences originated by the other flows are calculated (ending rate –
average rate) and recorded on the same account with the flow F_CTA.
192
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Lesson: Translating Local Currency
Row 5: The ending balance is translated using the ending rate.
LESSON SUMMARY
You should now be able to:
●
Describe the concepts of currency translation
●
Configure currency translation rules
●
Run currency translation
© Copyright. All rights reserved.
193
Unit 4: Consolidations and Eliminations
194
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Unit 4
Lesson 2
Configuring Intercompany Matching
LESSON OVERVIEW
In this lesson, you learn the business reasons and setup for intercompany matching.
Business Example
During the close, your company has been struggling with differences in the intercompany
Accounts Receivable/Accounts Payable elimination. One of the problems is that accountants
in one area do not have access to the data for the other entities with which they conduct
internal business.
By using Intercompany Matching, you arrange the data of your entity with the data of its
partners to report the intercompany differences.
You can also use the Intercompany Booking to adjust the reported intercompany data.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe intercompany matching
●
Configure intercompany matching
●
Configure intercompany bookings
Intercompany Matching Overview
The following are the key points to note about intercompany matching:
●
Intercompany differences frequently occur due to timing, currency, and many other
reasons.
●
Ideally the variances can be resolved at the source.
●
BPC provides the following process:
-
Import the data.
-
Run currency translation.
-
Matching:
-
■
Aggregate intercompany differences between the trading partners and book
additional data records in unique audit IDs such as My Liability and Their Asset to be
used in reconciliation reports.
■
Correct the data in the source system and import the adjustments if possible.
If necessary, run Booking
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Unit 4: Consolidations and Eliminations
This will force-balance the data if it is under the customer defined threshold.
-
Run Eliminations
Intercompany Matching
Figure 143: Intercompany Data Overview
The Intercompany Matching (ICDATA) copies records from the entity and their partners to
each entity. Audit Trail identifies where the data is coming from (My / Their).
Note:
Ideally, if these differences can be resolved in the source system before the data is
imported into the SAP Business Planning and Consolidation InfoCube, the
matching process could be eliminated.
Intercompany Matching can be executed in the Consolidation Model or in a
separate model.
Guidelines for Deciding the Number of Matching Models
Caution:
The criteria below should be considered in making this decision. These are some
of the guidelines to help you make the decision, not necessarily hard and fast
rules.
Table 43: Decision Criteria for a Number of Models to use for Matching
The following table outlines the decision criteria for a number of models to use for matching:
Decision Criteria
The Matching Model has different dimensions than the
Consolidation Model
X
You want to secure data using the Audit Dimension
X
An additional Model to maintain
196
Solution: Use
Two Models
Solution: Use
One Model
X
© Copyright. All rights reserved.
Lesson: Configuring Intercompany Matching
Decision Criteria
Solution: Use
Two Models
Solution: Use
One Model
The adjusting entries would need to be imported into the
Consolidation Model
You want to do Matching in a Model with fewer records
X
X
Currency translation configuration and execution is per
Model
X
Note:
If you do matching in the Consolidation Model and you secure data via audit, then
your security schema may be more complex and difficult to manage.
Data Flow Process with Separate Model for Matching
1. Import all of the data into the Consolidation Model.
2. Copy intercompany data to the Matching Model.
3. Carry out the Matching process, as follows:
●
●
●
Run Currency translation
Run ICData to copy the data into unique data source members to facilitate the
reconciliation
Run ICBooking to generate the balancing entries
4. Import the balancing entries from the Matching Model into the Consolidation Model.
5. Run Consolidation in the Consolidation Model.
Components for Intercompany Matching
●
●
●
A logic file.
-
Program: ICDATA.
-
Dimension member prompts.
A Data Manager Package.
-
Process chain: /CPMB/ICDATA.
-
Dimension member prompts.
-
The matching logic file.
Members of the Audit dimension
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Unit 4: Consolidations and Eliminations
Note:
There is no business rule for ICData.
The figure, Intercompany Matching Logic, shows a logic script that runs the program ICDATA,
which copies the intercompany data from the entity and its partners.
Figure 144: Intercompany Matching Logic
Dimensions in Intercompany Matching
The following dimensions are used in intercompany matching:
●
●
The model must include an Intercompany dimension of type I.
The intercompany dimension must include the property ENTITY, whose values are Entity
names.
The incoming data has an audit member of INPUT.
The ICDATA program copies from the INPUT audit into the Credit and Debit members based
on the IC_ORIGINE property of the audit dimension, and the ACCTYPE property of the
account dimension.
198
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Lesson: Configuring Intercompany Matching
Figure 145: Audit Members for Intercompany Matching
The ICDATA package copies the data to unique Audit members to make reconciliation easier.
Intercompany Matching Results
The figure, Intercompany Matching Results, show the intercompany matching results in the
balance sheet.
Figure 146: Intercompany Matching Results
In the preceding figure, Brazil and US match but Canada and Brazil have differences as do
Canada and France.
Intercompany Booking Overview
Intercompany Booking Components
●
A logic file.
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●
-
Program: ICBOOKING.
-
Dimension member prompts.
A Data Manager Package.
-
Process chain: /CPMB/ICBOOKING.
-
Dimension member prompts.
-
The booking logic file.
●
Members of the Audit dimension
●
The Intercompany Bookings business rule.
-
ID = the parent intercompany account ID.
-
Type: this identifies who receives the difference.
-
Max booking amount.
-
Member assignments.
The figure, Intercompany Booking Logic, shows the logic script that runs the program
ICBOOKING, which executes the Intercompany Booking Rules.
Figure 147: Intercompany Booking Logic
Intercompany Booking Rule
The figure, Intercompany Booking Rule, shows an S - Seller rule that will post intercompany
differences to the buyer.
Note:
Seller rules assume that the Seller is correct and therefore the adjustment of the
difference goes to the buyer.
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Lesson: Configuring Intercompany Matching
Figure 148: Intercompany Booking Rule
The rule in the figure, Intercompany Booking Rule, defines that the difference on the
Receivables and Payables (TIC1) must be adjusted, up to 100.000, on the buyer (since the
seller is correct), on the Audit IC_ADJ, on accounts 2111 (credit) against the dummy account
XTEC.
Note:
In this scenario, we only adjust the intercompany details and no offsetting entry is
needed. This is the reason why a dummy account is used.
Table 44: Intercompany Bookings Business Rule Fields
The following table outlines the intercompany bookings business rule fields:
Field
Definition
ID
The parent of the accounts to include in the processing.
Description
Description of the rule.
Type
Determines whether the buyer or seller receives the difference.
●
S - Seller: Buyer receives the difference
●
B - Buyer: Seller receives the difference
●
G - Greatest: Entity with the greatest amount receives the difference
Other Destination Dimension
Target dimension member other than account, flow, and intercompany.
Booking Destination Audit
The Audit member where the intercompany booking is recorded.
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Field
Definition
Max Booking Amount
The limit of the balancing entry. Differences above this amount
will not post.
Debit Account
Debit account for the difference
Debit Flow
Debit flow for the difference
Debit Intco
Debit intercompany for the difference
Credit Account
Credit account for the difference
Credit Flow
Credit flow for the difference
Credit Intco
Credit intercompany for the difference
Intercompany Booking Results
Figure 149: Intercompany Booking Results
The way intercompany adjustments are booked depends on the following business
requirements:
1. Only the adjustments of the intercompany amounts (not I_NONE) are needed, with no
offsetting entry
2. The adjustments of the intercompany amounts is booked against the external account
First option: the requirement is to only adjust the intercompany details, not the trial balance
(I_NONE), we do not need an offset, but the rule required it.
Second option, we could think that when we increase the intercompany amount, we must
reduce the "external" amount (if we have specific external account).
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Lesson: Configuring Intercompany Matching
LESSON SUMMARY
You should now be able to:
●
Describe intercompany matching
●
Configure intercompany matching
●
Configure intercompany bookings
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Unit 4: Consolidations and Eliminations
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Unit 4
Lesson 3
Using the Ownership Manager
LESSON OVERVIEW
In this lesson, you learn about using the Ownership Manager.
Business Example
One of the first steps in the consolidation process is to define the structure of the group being
consolidated, which also includes the consolidation methods and rates. For this purpose, you
need to use the Ownership Manager.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Create ownership data in the Ownership Manager
●
Calculate ownership data
Ownership Model Key Points
●
Ownership structures are stored as transaction data.
●
The data is used to identify:
-
The parent of each group.
-
The companies that a legal entity (for example) owns and what percentage.
-
The accounting approach for each entity:
■
If they are owned > 50%, they are identified as a purchase subsidiary in general.
■
If they are owned < 50%, they are identified as an equity subsidiary in general.
●
The data is stored by month and category.
●
The key dimension is the group dimension.
●
-
Group is also known as consolidation group.
-
Group is also known as scope ... as in scope of ownership.
-
Financial data is reported by group for example.
The structure can have multiple groups such as World, America, Europe, Asia/Pacific or
only one group in a flat structure.
●
Ownership data could come from the legal department for example.
●
Ownership data can be managed via:
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Unit 4: Consolidations and Eliminations
-
Ownership Manager.
-
Flat file import.
-
Input forms.
Figure 150: Consolidation Scope
The Ownership Model is designed to store the structure of the group and entity information
needed for the consolidation.
Ownership Model Dimensions
The Ownership Model includes the following dimension types:
●
Category (C)
●
Time (T)
●
Group (scope) (G)
●
Entity (E)
●
Intercompany (I)
●
Ownership Account (A)
The group structure can evolve over time. This is why it is stored by Time. To foresee the
group changes, or to perform scope simulation, the group structure is also stored by category
(Actual, Budget, Simulation...).
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Lesson: Using the Ownership Manager
Note:
The Ownership Model setting: Non Interco Member in Ownership must be
assigned a member such as I_NONE.
The Ownership Model setting: Parent / Child Property Used for the Hierarchy of
Groups contains the property: PARENT_GROUP of the group type dimension. The
values in the PARENT_GROUP property will be used to form the group hierarchy
for the Ownership Manager.
Ownership Account Dimension
Figure 151: Ownership Account Dimension
Required Members in The Ownership Account Dimension
●
PGROUP: This is used to sort entities inside a group.
●
METHOD: The consolidation method of an entity.
●
POWN: The percentage of ownership (how much they are owned by the group).
●
PCON: The percentage of consolidation.
This represents the percentage of an entity’s values that consolidate to its group.
●
PCTRL: The percentage of control (how much they are controlled by the group).
This represents the percentage of an entity that other entities own directly or indirectly. It
can be used to determine the consolidation method.
●
METHOD_SYS: This stores the consolidation methods generated by the system.
●
POWN_SYS: This stores the percentage of ownership generated by the system.
●
PCON_SYS: This stores the percentage of consolidation generated by the system.
●
PCTRL_SYS: This stores the percentage of control generated by the system.
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Note:
Depending on your requirements, not all the members in the preceding list are
mandatory. For example, you define the _SYS members only when you want to
use the Ownership calculation.
The _SYS members are only needed when you want to use the Ownership
calculation.
PCON can be used to reduce the number of business rules by applying it to both
equity and purchase subsidiaries. For example, NCI (non-controlling interest) for a
purchase subsidiary is equal to Equity * (1–POWN). However, equity subsidiaries
don’t have any NCI. Therefore, if you use a PCON value of 100 for a purchase sub
and pcon=pown for an equity sub, you can use the same rule for both. In the
example below, assume that the investee’s equity is $150, the percentage owned
for the investor is 80%, and the equity sub is only owned 35%.
●
●
Purchase sub’s NCI: Equity * (pcon-pown) ... for example, Equity $150*(100–
80)=30 NCI.
Equity sub’s NCI: Equity * (pcon-pown) ... for example, Equity $150*(35–35)=0
NCI.
Group Dimension
Figure 152: The Group Dimension
The Group type dimension is key for consolidation. Consolidated statements can be
calculated for each Group.
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Lesson: Using the Ownership Manager
Group Dimension Properties
Table 45: Group Dimension Properties
Property
Property Description
CONSO_TYPE
Used to filter by group members in the Elimination
and Adjustment Rule in the Group Type Filter header
field.
CURRENCY_TYPE
Used to identify whether a group member should be
valued at the G (Group) currency or N (Local) currency.
DATASRC_LEVEL
Used to control the recording of elimination entries
to higher level groups.
STORE_ENTITY
Used to record consolidated data on an aggregation
entity.
ENTITY
Used to identify the entity member that will be used
to aggregate the individual entities at group level to
improve reporting performance. If this is filled with a
valid entity member, and the Store_Entity property is
set to Y, the consolidated data of the group is also recorded on this entity.
GROUP_CURRENCY
Contains the currency or currencies for each group.
PARENT_GROUP
Used to link a sub group with its upper group.
STAGE_ONLY
Used to record, on the aggregation entity, only the
stage value (group value - sub group value).
STORE_GROUP_CURR
If set to N, currency translation results will only be
written to group members.
Consolidation Methods
The following are the key points to note about consolidation method codes:
●
●
Method codes are freely defined integers used to assign ownership roles to entities.
Method codes are like aliases. They are used to avoid hard coding entity IDs into the
business rules.
●
The integers are 2 or 3 digits such as 10, 20, 30, or 100, 101, 102.
●
You can use any integer except for 99 which is reserved as a wildcard that selects all (*).
●
The most common method codes are:
●
-
10: Used to designate the parent / holding of a group.
-
20: Used to designate a purchase subsidiary in a group.
-
30: Used to designate an equity subsidiary in a group.
The term purchase method is also known as global and full.
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Methods
Figure 153: Consolidation Methods
Methods are assigned to entities. You use the methods in the business rules to apply specific
calculations to those entities assigned to this method.
The Full method is also referred to as the Global and Purchase method.
Note:
Method IDs must be integers.
Table 46: Method Codes
210
Code
Description
H - Holding
Use to designate the parent of a group.
E - Equity
For equity elimination. The subsidiary's balance sheet is eliminated
without any account assignment.
G - Global
Use for the purchase method, dividend eliminations, intercompany
AP/AR.
P - Proportionate
For proportionate eliminations. Eliminate the subsidiary's balance
sheet item without any account assignment.
N - New
Used to identify new acquisitions to trigger initial investment and equity eliminations.
L - Leaving
Can be used to automate adjusting entries for divestitures for the closing balances.
D - Disposed
Can be used to automate adjusting entries for divestitures during for
the opening balances.
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Lesson: Using the Ownership Manager
Methods are assigned to entities. You use the methods in the Business Rules to apply specific
calculations to those entities assigned to this method.
Note:
Share range and applicable percent consolidation are relatively not important
because the ownership calculation is rarely used.
Ownership Manager
Figure 154: Ownership Data
For each entity consolidated in a group, the Ownership Model stores the method and the
different consolidation rates used.
Note:
The Ownership Model can also store the direct ownership between entities,
independently of any group perspective. This data can be used for the Ownership
calculation.
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Unit 4: Consolidations and Eliminations
Ownership Manager Overview
Figure 155: Ownership Manager
The Ownership Manager enables you to create and manage the structure of the group in the
form of an ownership-based hierarchy used for performing consolidation.
An ownership based hierarchy combines Group and Entity members, where entities can be
assigned to groups by CATEGORY and TIME.
Groups are nodes, and entities are base level members. Ownership based hierarchies are
used to consolidate and report on hierarchies that cannot be managed by a dimensional
hierarchy.
Key Features of the Ownership Manager
●
Graphical ownership relationships based on data stored in the Ownership Model.
●
Data is stored by category and period.
●
212
Easy input of Methods and percentages (drop down list, percentages, upwards
inheritance).
●
Ownership calculations are run from the Ownership Manager.
●
Security tasks available: View, Edit, Run Ownership Calculations.
●
Copy from one period / category to another
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Lesson: Using the Ownership Manager
Fields and Functions in the Ownership Manager
Table 47: Ownership Manager Navigation in Display
Functions in the Ownership Manager
Definition
Model
Select the Consolidation Model (that the ownership model is assigned to)
Context Menu
Make the Category, Time, and Group selections.
Add/Remove/Cut/
Paste
Add, Remove, Cut, or Paste entities in the selected group.
Up and Down arrows
Move up or down the entities.
Show Description
Displays the descriptions of the group and entities, if selected.
Update Ownership Up- Copies the method and rates input on one entity for a sub group to
wards
the upper groups, if selected.
Show Empty
Shows records with empty values, if selected.
No. of Decimal Places
Select 0 to 5.
Save
Save data.
Copy To
Copy data to a different category / time.
Calculate
Calculates the Ownership .
Ownership Data Copy
The following are the key points to note about ownership data:
●
Ownership data is written to the database around the project start-up such as for 2019.01.
●
It is then copied from 2019.01 to 2019.02–12 for example.
●
Ownership data is persistently stored each month.
From the Ownership Manager, you can copy the Ownership data to different category and
time members.
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Figure 156: Copy Ownership Data
One Entity With Multiple Parents
Figure 157: Entity with Multiple Upper Groups
Each entity can be consolidated in multiple sub groups and upper groups. for each group
where the entity is consolidated, different methods and rates can be used.
When the same method and rates must be used for all groups, an automatic copy from the
lower to the upper level is possible my marking the Update Ownership Upwards option.
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Lesson: Using the Ownership Manager
Ownership Calculation
The following are the key points to note about ownership calculation:
●
For a group, it is possible to calculate the consolidation method and consolidation rates of
the entities.
●
The percent control and the percent ownership is the basis for this calculation.
●
The source data is initially recorded against the S_None scope member ID.
Figure 158: Sample Data for Ownership Calculation
Calculation of Ownership Data
Figure 159: Calculation of Ownership Data
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Unit 4: Consolidations and Eliminations
Ownership calculation can be performed using the Direct share method or the Group share
method.
Example for the entity ARGENTINA:
●
●
Direct share method: 85% = 80% (owned by BRAZIL) + 5 % (owned by US).
Group share method: 77% = (80% (owned by BRAZIL) x 90 % (BRAZIL owned by US)) + 5
% (owned by US).
Ownership Calculation Example
Figure 160: Ownership Calculation Example
Ownership Calculation Preliminary Steps and Options
Options Used to Calculate Ownership
●
Calculate ultimate % Ownership and Control through - Calculates the Group's percentage
of ownership (POWN) and control (PCON) of each entity.
Choose one of the following methods:
-
-
●
216
Direct share method: The Direct percentage of ownership that a holding entity holds in a
subsidiary.
Group share method: The Group percentage of ownership that a holding entity holds in
a subsidiary.
Calculate method or % consolidation or both based on previous calculation - Use the
previously calculated Ultimate Ownership % to derive the method or percentage of
consolidation.
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Lesson: Using the Ownership Manager
●
Update Method - Select to update the ownership method
●
Update % Consolidation - Select to update the % Consolidation
●
Overwrite current ownership values with calculated values - Select to update the %
Ownership and Consolidation
The following list outlines the options used to calculate ownership:
Ownership Calculation Configuration
Figure 161: Ownership Calculation Configuration
To calculate the applicable method, share ranges must be assigned to the methods. The
control rate is evaluated in these share ranges to select the method.
The consolidation rate is updated based on the value (example: 100) or a specific rate id
(example: PCTRL).
LESSON SUMMARY
You should now be able to:
●
Create ownership data in the Ownership Manager
●
Calculate ownership data
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Unit 4
Lesson 4
Configuring Integration Rules
LESSON OVERVIEW
In this lesson, you learn about using the integration rules.
Business Example
To build the group financial statements, the data reported by entities must be integrated to
the group. You want to use the integration rules for this purpose, and therefore you need to
understand how it is set-up.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Set up integration rules
Integration Rules Overview
The following are the key points to note about integration rules:
●
Integration rules are optional.
●
When Integration rules are on:
●
-
Currency translation records data against the s_none scope.
-
Consolidation records data against the valid scopes for parent and purchase subs.
-
Elimination entities are not booked.
When Integration rules are off:
-
●
●
Currency translation records data against s_none and the valid scopes for parent,
purchase, and equity subs.
-
Consolidation records data against the valid scopes for parent and purchase subs.
-
Records for equity subs are reversed.
-
Elimination entities may be booked.
Implementation steps:
-
Activate Integration Rules for the consolidation model.
-
Create a method based multiplier for integration.
-
Create an elimination and adjustment rule for integration.
Integration rules are triggered when running Consolidate from the consolidation monitor or
running the consolidation data manager package.
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Unit 4: Consolidations and Eliminations
Figure 162: Integration Rules Overview
Integration rules copy the reported data (recorded on the « not consolidated » group
member) to the groups where the entity is consolidated.
For entities consolidated using the equity method, the reported financial statements are not
integrated.
Integration rules copy the data already converted in the group currency. This means that the
currency conversion is a pre-requisite to the integration.
Figure 163: Activation of Integration Rules
After creating the model, go to edit mode and turn on Integration Rules.
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Lesson: Configuring Integration Rules
Multipliers and Elimination Adjustment Rules for Integration
Table 48: Elimination Components
The following components play an important role in intercompany eliminations:
Component
Description / Example
Scope/Group members
Groups needed for consolidated financial statements.
World, America, Europe, Asia/Pacific.
Entity and Interco members
Legal entities and trading partners.
US, I_US, BR, I_BR.
Ownership data
What entities are parents vs. subsidiaries, in what
groups, and the percentage of ownership and consolidation.
US (100%) and Brazil (80%) are consolidated using
Full or Holding method in groups World and America.
Account members
The chart of accounts.
IC Receivables, IC Payables, IC Balancing, Investments, Equity, Goodwill, Minority Interest.
Account properties
Dynamic selections and lookups.
TYPELIM and DIMLIST for account selection. ELIMACC for dynamic lookups of offset accounts.
Method
Alias used for dynamic entity and interco assignments.
Holding 10, Full/Purchase 20.
Method Based Multiplier
Dynamically determine who and how much.
When entity and interco are consolidated using Holding or Full method, what percentage to apply.
Eliminations and Adjustments Rules
Dynamically determine account assignments and
source and target data.
Receivables and payables accounts are eliminated
against the AR/AP balancing account.
Consolidation Monitor
Web client used to run and monitor consolidation
tasks.
Execute Currency Translation.
Data Manager
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Use data manager packages to run month end closing
jobs such as currency translation and eliminations.
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Unit 4: Consolidations and Eliminations
Elimination Business Rules Overview
Figure 164: Elimination Business Rules
BPC Standard has delivered business rules in the US GAAP and IFRS starter kits that you can
use as reference.
Methods
Note:
The Methods section was also included in the ownership lesson. It is included here
again for continuity.
Figure 165: Consolidation Methods
Methods are assigned to entities. You use the methods in the business rules to apply specific
calculations to those entities assigned to this method.
The Full method is also referred to as the Global and Purchase method.
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Lesson: Configuring Integration Rules
Note:
Method IDs must be integers.
Table 49: Method Codes
Code
Description
H - Holding
Use to designate the parent of a group.
E - Equity
For equity elimination. The subsidiary's balance sheet is eliminated
without any account assignment.
G - Global
Use for the purchase method, dividend eliminations, intercompany
AP/AR.
P - Proportionate
For proportionate eliminations. Eliminate the subsidiary's balance
sheet item without any account assignment.
N - New
Used to identify new acquisitions to trigger initial investment and equity eliminations.
L - Leaving
Can be used to automate adjusting entries for divestitures for the closing balances.
D - Disposed
Can be used to automate adjusting entries for divestitures during for
the opening balances.
Ownership Manager
Figure 166: Investment Data in the Ownership Manager
The ownership manager is used to manage the ownership investment structure (this is not a
dimensional hierarchy). Entities are included in consolidation groups. Each group has a
parent. The subsidiaries in each group are either purchase or equity subs, for example.
The general rules are:
●
If the percentage of ownership is greater than 50%, then the purchase method is used.
●
If the percentage of ownership is less than 50%, the equity method is used.
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Unit 4: Consolidations and Eliminations
●
If the percentage of ownership is less than 20%, entities are not included in the ownership
investment structure.
Method-Based Multiplier
Figure 167: Method-Based Multiplier for Integration
The Entity Method is set to 10 and 20 which are the parent and purchase subs. Equity subs are
not selected in an integration rule since they are not consolidated.
The value 99 in the Intco Method field is used as a wildcard to select intcos with any method.
For an integration rule, the multiplier used must always be set to 99.
Eliminations and Adjustments Rules for Integration
Figure 168: Eliminations and Adjustments Rules Header for Integration
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Lesson: Configuring Integration Rules
Once the use of integration rules is activated in a model, the available adjustment types for
the elimination and adjustments rules are:
●
Blank (empty) for the standard eliminations and adjustments
●
I for the integration rules
In the General tab, the following selection options are available:
●
Source and Destination Audit: Using members or property.
●
Group Type Property: Using the CONSO_TYPE property.
●
●
●
Entity Property Filter: By selecting the property for which both Entity and Interco must
have the same value.
Adjustment Type: This controls the sequence of processing.
Other Dimension Filter: Using any other dimension (for example, Profit Center =PC1) or the
values sign (for example, SIGNEDDATA>0).
●
Force Destination Members: Write records into additional dimension member IDs.
●
Ownership Filter: Using the Ownership data (for example, PPCON=0).
Note:
If integration rules are turned off, the Adjustment Type field has four options:
●
●
●
Blank: use this setting for intercompany elimination for example.
Equity: use this option to eliminate an equity sub’s balance sheet items without
any account assignment.
Proportionate: use this option to eliminate proportionate sub’s balance sheet
items without any account assignment.
●
New Company: use this option for a new acquisition.
●
Leaving Company: use this option for a divestiture.
Note:
PPCON = prior period percent consolidation value. The keyword SIGNEDDATA is
not available for the Other Dimension filter.
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Unit 4: Consolidations and Eliminations
Figure 169: Eliminations and Adjustments Rules Details for Integration
In the preceding figure, the ending balance of the Total Income Statement (TIS) is integrated.
The Total Balance Sheet (TBS) opening plus change flows (F_TOT) are also integrated and
the ending flow is also recorded simultaneously via the Force Close selection.
In the Details tab, four destination accounts can be defined as follows:
●
All
●
Group
●
Minority
●
Equity
All and Equity are recorded with an inverse sign.
Group and Minority are recorded with the same sign as the source account.
Equity replaces the All account when the entity is consolidated using the Equity method.
It is possible to dynamically define the destination account using a property value of the
source account, for example, PROP(ELIMACC).
The Force Closing option is used to record the elimination on the closing flow.
The Swap Entity Intco is used to book values from the parent’s account to the subsidiary’s
account for example.
Use Periodic Calc to record the period value.
The Force Intco Member option is used to record the elimination on the I_None member.
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Lesson: Configuring Integration Rules
Figure 170: How the Eliminations and Adjustments and Multiplier Work Together for Integration
In the preceding figure, you can see that the multiplier All Formula value will be applied to the
account in the elimination adjustment rule Destination All Account field.
For example, 100% of the values will be booked to the TBS (Total Balance Sheet Accounts) in
valid scope IDs.
The Closing Process with Integration
Figure 171: Consolidation Methodology Integration
When using integration rules, the month-end closing process includes the following key steps:
●
Collect: import data from the source systems.
●
Restate: book journals and run reclassifications.
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Unit 4: Consolidations and Eliminations
●
●
Convert: run currency translation. When using integration rules, s_none is booked.
When running Consolidate from the consolidation monitor or when running the
Consolidation data manager package, the following processes will be triggered:
-
Integrate: parent and purchase sub values are recorded against valid group IDs.
-
Eliminate: intercompany transactions are eliminated.
-
Minority interest: consolidation of investment entries are generated.
Business Rules for Integration
Figure 172: Integration Rules Activation
Once the use of integration rules is activated in a model, the available adjustment types for
the elimination and adjustments rules are:
228
●
Blank (empty) for the standard eliminations and adjustments
●
I for the integration rules
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Lesson: Configuring Integration Rules
Integration Rules Results
Figure 173: Integration Rules Results
The report in the figure, Integration Rules Results, shows the integration of the entity Canada
to the groups:
●
●
●
Reported data is recorded on S_NONE.
No data is integrated on the group AMERICA, because Canada is consolidated using the
At-Equity method in this group.
Data is integrated to the group WORLD, because Canada is consolidated using the
Purchase method in this group.
LESSON SUMMARY
You should now be able to:
●
Set up integration rules
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Unit 4: Consolidations and Eliminations
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Unit 4
Lesson 5
Eliminating Intercompany Transactions
LESSON OVERVIEW
In this lesson, you learn about eliminating Intercompany transactions..
Business Example
After the integration of the reported data, you must eliminate the intercompany operations
and therefore you need to understand the configuration to automate this.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Create business rules for intercompany receivables and payables elimination
●
Create business rules for intercompany sales and cost of sales elimination
Intercompany Eliminations Overview
The following are the key points to note about Intercompany Eliminations:
●
●
●
●
Intercompany transactions are eliminated after the values are recorded against the group
currency.
Intercompany activity may include:
-
Intercompany accounts payable and accounts receivable.
-
Intercompany loans and interest.
-
Intercompany revenue and cost of goods sold.
-
Intercompany dividends.
Intercompany transactions are eliminated via the Elimination Adjustment or the US
Elimination rules. In this lesson, the Elimination Adjustment rule is being discussed.
The Elimination Adjustment rule is triggered when running Consolidate from the
consolidation monitor or when running the Consolidation data manager package.
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Unit 4: Consolidations and Eliminations
Intercompany Eliminations - Key Points
Figure 174: Elimination of Intercompany Payables and Receivables
Intercompany differences should be minor at this stage since intercompany matching has
already been performed.
Intercompany Elimination
Figure 175: Intercompany Elimination
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Lesson: Eliminating Intercompany Transactions
Intercompany operations between US and Canada are not eliminated because Canada is an
Equity subsidiary.
Intercompany operations are only eliminated when the Entity and the Interco are
consolidated in the same group using the Holding or Purchase methods. When using the
Equity method, the accounts are not integrated to the Groups and, therefore, cannot be
eliminated.
Intercompany Elimination does not require specific intercompany accounts because the
internal criteria used is based on the Intercompany dimension.
AP AR Elimination Components
Table 50: Elimination Components
The following components are used when eliminating intercompany transactions:
Component
Description / Example
Group members
AMERICA, WORLD
Entity and Interco members
US, I_US
BRAZIL, I_BRAZIL
Ownership data
US and BRAZIL are consolidated using Full or Holding method in groups AMERICA and WORLD
Account members
Receivables
Payables
IC Balancing AP/AR
Account property
TYPELIM=AR_AP
Method
Holding, Full
Method-based Multiplier
When entity and interco are consolidated using
Holding or Full method
Eliminations and Adjustments Rules
Receivables and Payables accounts are eliminated
against the AR/AP balancing account
Logic Script and Data Manager Package
Needed to run the Consolidation from the EPM
add-in
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Unit 4: Consolidations and Eliminations
Intercompany Receivables and Payables Elimination Concept
Figure 176: Intercompany Receivables and Payables Elimination Concept
The figure, Intercompany Receivables and Payables Elimination, shows how one Elimination
rule will create elimination data records.
Using a balancing account is not mandatory, but it has the following advantages:
234
●
The elimination booking is balanced for each entity.
●
The balancing account shows, at group level, the intercompany difference.
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Lesson: Eliminating Intercompany Transactions
Intercompany Receivables and Payables Elimination Multiplier
Figure 177: Method Based Multiplier for AP AR
Intercompany Receivables and Payables Elimination Adjustment Rule Header
Figure 178: Eliminations and Adjustment Rule – Header for AP AR
In the General tab, the following selection options are available:
●
Source and Destination Audit: Using members or property.
●
Group Type Property: Using the CONSO_TYPE property.
●
Entity Property Filter: By selecting the property for which both Entity and Interco must
have the same value.
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Unit 4: Consolidations and Eliminations
●
●
Adjustment Type: This controls the sequence of processing.
Other Dimension Filter: Using any other dimension (for example, PRODUCT=P1) or the
values sign (for example, SIGNEDDATA>0).
●
Force Destination Members: Write records into additional dimension member IDs.
●
Ownership Filter: Using the Ownership data (for example, PPCON=0).
Note:
PPCON = prior period PCON value. The keyword SIGNEDDATA is not available for
the Other Dimension filter.
Intercompany Receivables and Payables Elimination Adjustment Rule Details
Figure 179: Eliminations and Adjustment Rule – Details for AP AR
In the Details tab, four destination accounts can be defined as follows:
All and Equity are recorded with an inverse sign.
Group and Minority are recorded with the same sign as the source account.
Equity replaces the All account when the entity is consolidated using the Equity method.
It is possible to dynamically define the destination account using a property value of the
source account, for example, PROP(ELIMACC).
The Force Closing option is used to record the elimination on the closing flow.
The Swap Entity Intoc is used to book values from the parent’s account to the subsidiary’s
account for example.
Use Periodic Calc to record the period value.
The Force INTCO Member option is used to record the elimination on the I_NONE member.
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Lesson: Eliminating Intercompany Transactions
Eliminations Adjustments and Multiplier Integration
Figure 180: How the Eliminations and Adjustments and Multiplier Work Together for AP AR
The multiplier provides the percentage to apply for the three main destination accounts.
Figure 181: Intercompany Receivables and Payables Elimination Summary
In the preceding figure, you can see how the methods, multiplier, and elimination table all
work together.
Force close is being used to record values to the ending flow at the same time as the source
flows.
Force Intco Member is being used to book values to the I_None intercompany ID.
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Unit 4: Consolidations and Eliminations
Figure 182: Intercompany AP AR Elimination Result
Intercompany Sales and Cost of Sales Elimination
The following are the key points to note about Intercompany Sales and Cost of Sales
Eliminations:
●
In most cases for intercompany sales, there is no trading partner on COGS.
●
Approach:
●
-
Use the seller’s revenue to eliminate the buyers cost.
-
To do this, turn on Swap Entity Intco in the elimination adjustment rule.
Using same components as Intercompany accounts payable / receivable elimination:
Methods, Multipliers, Elimination Adjustment rules etc.
Figure 183: Elimination of Intercompany Sales and Cost of Sales
In most cases for intercompany sales, there is no trading partner on COGS; just on the sales
since that comes from the invoice and COGS does not. So a lot of companies do a single-sided
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Lesson: Eliminating Intercompany Transactions
elimination and run it to COGS. However, what they do depends on their elimination strategy
and whether they sell internally.
Instead of using the two-sided approach described for the elimination of intercompany
receivables and payables, it is possible to simplify the elimination by using a one sided
approach as follows:
●
Only intercompany Sales are reported with a detail by intercompany.
●
Cost of Sales account is reported without intercompany details.
●
●
●
The elimination is triggered by the Sales account and posted on both Sales and Cost of
Sales accounts.
The elimination is booked on both entities, and is balanced thanks to the balancing
account.
The balancing account always shows zero balance and, therefore, cannot be used to
match intercompany accounts.
This scenario is commonly used when the Cost of Sales account is calculated (Quantity Sold x
Unit Cost) and therefore does not include any intercompany information.
Note:
Intercompany Sales and Cost of Sales can also be eliminated using the two-sided
approach.
Internal Provisions can be eliminated using the one sided approach.
For example, Allowance for bad debt ... If I foresee that my customer might not
pay me, I will book a provision (P&L: Provision cost, B/S: AR Provision). When they
pay me, I reverse the provision.
Intercompany Sales and Cost of Sales Elimination
In the figure, Intercompany Sales and Cost of Sales Elimination, the elimination rules only
selects the Sales account, and the eliminations on both the Sales and Cost of Sales accounts.
The Cost of Sales account is eliminated on the intercompany entity.
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Unit 4: Consolidations and Eliminations
Figure 184: Intercompany Sales and Cost of Sales Elimination
Eliminations and Adjustments Rules
Figure 185: Eliminations and Adjustments Rules
The first row eliminates the Sales account on itself, with an offsetting entry on the balancing
account (defined in the ELIMACC property of the Sales account).
The second row records an elimination on the Cost of Sales account against the balancing
account, on the intercompany entity (option Swap Entity / Interco).
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Lesson: Eliminating Intercompany Transactions
Elimination Results
Figure 186: Elimination Results
The elimination is balanced and has no effect on the Net Income.
Note:
The balancing account shows zero because these results are for the group and not
for an individual entity.
LESSON SUMMARY
You should now be able to:
●
Create business rules for intercompany receivables and payables elimination
●
Create business rules for intercompany sales and cost of sales elimination
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Unit 4: Consolidations and Eliminations
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Unit 4
Lesson 6
Configuring Intercompany US Elimination
LESSON OVERVIEW
In this lesson, you learn about configuring US Elimination.
Business Example
In addition to the eliminations configured for the group consolidation, you want to know more
about the simplified US eliminations to eliminate intercompany operations using the entity
hierarchy.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Configure US Intercompany Elimination
Intercompany US Elimination Overview
●
US eliminations is not just for US companies.
●
US eliminations can be used for Intercompany or Intracompany eliminations.
●
●
US eliminations is a simplified way to eliminate intercompany transactions between
entities with a common parent.
US Eliminations does not use the Methods, Multiplier, or Eliminations and Adjustment
rules.
●
US Eliminations can be used in a Financial or Consolidation model.
●
US Eliminations records elimination records to elimination entities.
●
The Ownership Model is not used.
●
US Eliminations cannot be executed from the Consolidation Monitor.
●
Eliminations are executed in group currency only.
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Unit 4: Consolidations and Eliminations
Figure 187: US Eliminations Overview
The following list outlines the transactions eliminated in the figure, US Eliminations Overview:
●
Transactions between US and Brazil are eliminated on AMERICA_ELIM.
●
Transactions between US and China are eliminated on WORLD_ELIM.
US Elimination Components
The following are required to use US Eliminations:
244
●
Elimination entities for each parent entity (defined with the ELIM property)
●
Elimination account to offset the elimination entry (defined with the ELIMACC property)
●
US Eliminations Rules to define the source and destination Audit Trail
●
Logic Script and Data Manager Package to run the eliminations
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Lesson: Configuring Intercompany US Elimination
Master Data
Figure 188: Dimensions Properties for US Eliminations
US Elimination Business Rule
In the US Elimination Rules, you define the source and the destination Audit.
The accounts to eliminate are not selected in the business rules since they are selected by
dimension property.
Figure 189: US Eliminations Business Rules
This business rule has five fields:
1. Entity Dimension: For intercompany eliminations, choose entity.
2. Trading Partner Dimension: For intercompany eliminations, choose interco.
3. Elimination ID - This is user defined.
4. Source Audit - This can be a base level or parent member.
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Unit 4: Consolidations and Eliminations
You can also filter via the DIMLIST property. (i.e. select source audit members via their
dimlist property values)
5. Destination Audit - This must be a base level.
Note:
Source audit can be only of type I (input) or M (manual journals).
US Elimination Results
Figure 190: US Elimination Results
The figure, US Elimination Results, shows that the eliminations are recorded on the
elimination entity (SO_ELI), which is aggregated in the SODA parent member.
Note:
The amount eliminated does not necessary equal the reported amount on the
Input audit because the Input column includes external sales.
LESSON SUMMARY
You should now be able to:
●
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Configure US Intercompany Elimination
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Unit 4
Lesson 7
Designing Management, Matrix, and Multiple
Accounting Standards Solutions
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Explain the Options for Multiple Accounting Standards
●
Discuss Management Consolidation
●
Configure Matrix Consolidation
Options for Multiple Accounting Standards
Figure 191: Multiple Accounting Standards
When multiple accounting standard are needed for the consolidation, different options may
be implemented depending on the requirements.
The two options described in the preceding figure are common approaches, other alternatives
are also possible such as using different models, using different charts of accounts, and so on.
If the source is the new general ledger, the leading ledger and others can be used by BPC.
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Unit 4: Consolidations and Eliminations
Management Consolidation
There are a few key points that differentiate legal from management consolidation.
Note:
There can be significant variation in how the management consolidation solution
is configured. In the following lesson, we take a general approach that may vary
from how you would implement it due to different requirements. These concepts
apply to both the replicated and real-time scenarios.
Legal Consolidation
●
The summarization of the financial statements of a parent company and those of its legal
subsidiaries.
●
The focus is on external reporting of actual data.
●
In SAP ECC, the legal entity is usually represented by the company code.
●
All financial data are included: Balance Sheet, Income Statement, Cash Flow, and so on.
●
Intercompany eliminations.
●
Standardized approach.
Management Consolidation
●
●
●
The summarization of the financial statements:
-
Of a parent profit center, for example, and those of its children.
-
Of legal subsidiaries grouped by line of business, for example.
The focus is on internal reporting for plan and actual data.
In SAP ECC, the management entity is usually represented by Profit Center, Segment,
Business Area, and so on.
●
The main interest is on the income statement.
●
Intracompany eliminations.
●
Dynamic approach.
Note:
The term matrix consolidation refers to the concept of preparing legal and
management consolidated data simultaneously.
248
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Lesson: Designing Management, Matrix, and Multiple Accounting Standards Solutions
Figure 192: Legal vs. Management Consolidation Approach
A common scenario is to have a legal consolidation (consolidation of companies) and a
management consolidation (consolidation of profit centers, segments). Different
implementation options are possible depending on your requirements.
Both consolidations can be implemented in the same model using the same entity dimension,
or in two separate models, using different entity dimensions. Two models might also be
needed when one consolidation model is defined with the periodic data entry mode, and the
second with the year-to-date data entry mode.
When only one model is used for both consolidations, it is possible to use two category
members to separate both consolidations. This might be needed, for example, when the legal
consolidation is yearly and the management consolidation is monthly (consolidation once a
year only (because it is legally required), but they have a monthly management consolidation
to measure their performance).
A matrix consolidation can also be implemented by combining in the entity dimension,
members of company together with profit centers. This option is the most complete one
because it combines both views with one data set only. However, it is more complex regarding
data collection, as all data must be recorded on a company and Profit Center combination,
and intercompany data must be reported on the combination of Intercompany Company and
Intercompany Profit Center.
Matrix Consolidation Using the US Elimination Rule
The following are the key points to note about matrix consolidation using the US Elimination
rule:
●
●
●
The term matrix consolidation refers to the concept of preparing legal and management
consolidated data simultaneously.
The US Elimination rule can by used by any country. It was intended for simpler scenarios
originally, but has now been adapted for IntraCompany Eliminations.
The US Elimination rule can be used for:
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Unit 4: Consolidations and Eliminations
●
-
Intercompany eliminations using entity and interco.
-
Intracompany eliminations using segment and partner segment for example.
In this lesson, the focus is on Intracompany eliminations.
Figure 193: US Matrix Elimination Model
The model being used for this test has the same dimensions as the consolidation model,
except it also includes the segment and partner segment dimensions.
Figure 194: US Matrix Elimination Dimensions
In this scenario, we use the same entity and intco dimensions as we did in the consolidation
model.
In the segment dimension, only one elimination segment can be selected.
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Lesson: Designing Management, Matrix, and Multiple Accounting Standards Solutions
Figure 195: US Matrix Elimination Components
The components for US Matrix Eliminations are:
●
Model
●
Segment and partner segment dimensions
●
Logic file: this is the same logic that you would use for intercompany US Eliminations
●
●
US Elimination business rule: with entity set to segment and trading partner set to partner
segment
Data manager package
Figure 196: US Matrix Elimination Results
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Unit 4: Consolidations and Eliminations
LESSON SUMMARY
You should now be able to:
252
●
Explain the Options for Multiple Accounting Standards
●
Discuss Management Consolidation
●
Configure Matrix Consolidation
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Unit 4
Lesson 8
Describing Consolidation and Elimination
Principles
LESSON OVERVIEW
In this lesson, you learn about Consolidation and Elimination Principles.
Business Example
Your corporation has many subsidiaries and you need to produce consolidated financial
statements. Eliminations of intercompany balances, eliminations of investments, and
calculation of minority interests make the process complex, so you want to automate this
process as much as possible.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe consolidation and elimination principles
Consolidation and Elimination Principles Overview
Consolidation is a combination of financial items (balance sheet, profit and loss) from several
entities (the parent and the subsidiaries) into one (the group).
Figure 197: Consolidation Overview
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Unit 4: Consolidations and Eliminations
Consolidation Methodology Overview
The methodology of consolidation is to collect, convert, restate, integrate individual financial
statements, eliminate internal operations (such as sales, receivables, and dividends), and
book minority interests and other group adjustments.
Figure 198: Consolidation Methodology
The figure, Consolidation Methodology, shows that the sets of data are not the same from the
beginning to the end of the consolidation process. For example:
●
Entities usually report their financial data in Local Currency (LC), without group
assignment (S_NONE).
●
Local restatements are usually booked on a different Audit trail (RESTAT).
●
Currency conversion translates data from LC to the group currency (USD).
●
After restatement and conversion, entity data is integrated to the group (WORLD).
●
Eliminations are recorded on a different Audit Trail (ICELIM).
●
Group adjustments and booking of the minority interest is done by a different Audit trail
(EQUITY).
Note:
This is a typical business example. The members ID and the overall picture can be
implemented in another way.
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Lesson: Describing Consolidation and Elimination Principles
Key Terms
●
●
●
Parent (holding) - The consolidating entity.
Purchase (full) Method - Generally used if ownership is greater than 50%. This is used
when the parent unit of a consolidation group exercises a dominating influence over an
investee.
Equity Method - Generally used when ownership is less than 50% and higher than 20%.
Financial data of an equity unit is not taken into account in the consolidated financial
statements. Only changes in the equity of the company are considered; this affects the
investment value stated in the consolidated balance sheet.
Note:
If ownership is less than 20%, the sub is not in the investment structure and is
not eliminated. In some cases, manual adjustments can be used to make
adjustments to related parties type accounts.
●
Investor - The buyer.
●
Investee - The company being purchased.
●
Direct Share - The percentage (%) ownership between the investor and the investee.
●
●
●
Group Share - The total percentage (%) ownership between the higher-level holding and
the investee. This includes indirect ownership like:
-
Company A owns 80% of company B
-
Company B owns 90% of company C
-
The group share for the company C in this case is 72% (80% x 90%)
Minority Interest - The percentage (%) portion of the investee not owned by the parent.
Goodwill - The difference between the purchase price and the book value of the investee's
equity.
Purchase and Equity Methods
Table 51: Consolidation Methods
The following table outlines some consolidation scenarios:
Scenario
Parent (holding)
Purchase (full)
Equity
Individual statements are aggregated
Yes
Yes
No
Internal Operations are eliminated (3)
Yes
Yes
No (1)
Investments in consolidated entities are
eliminated
Yes
Yes
No
Equity accounts are eliminated and Minority interests are posted
No
Yes
No (2)
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Unit 4: Consolidations and Eliminations
Scenario
Parent (holding)
Purchase (full)
Equity
Changes in the Equity are reflected on
the investments values
No
No
Yes
(1 ) - Investments in consolidated entities are eliminated. However, internal operations with an
effect to the Net Income (internal provisions, dividends…) are eliminated with a subsidiary
consolidated using At-Equity method.
(2) - Minority Interest can be posted for an At-Equity subsidiary when the holding is not
owned at 100%. (For example: Company A is consolidated with full method for 80%.
Company A owns company B for 30%. Company B is consolidated using equity method for
30% (PCON) and 24%(POWN). If B has a net income of 1000, 240 will be recorded in the
group retained earnings (minority= 60).)
(3) Internal operations: intercompany AP AR for example.
Note:
Proportional Method is not mentioned here, but can be implemented.
Holding is the method of the consolidating company. There is only one company consolidated
using the Holding method in a group. Nevertheless, it is possible to have many companies in
the group that hold investments in other subsidiaries. In this case, the consolidating company
uses the Holding method, and others use the Purchase or At-Equity method.
Using the Purchase method, the financial statements are fully (100%) aggregated. Internal
operations are eliminated and Minority Interests are booked.
Using the At-Equity method, the financial statements are not aggregated. Instead, the
investment value of the holding is adjusted to reflect the group share in the equity of the
subsidiary.
Purchase Method Example
In this section, you learn the accounting entries for the Purchase Method.
Note:
The following examples are conceptual illustrations and do not reflect your exact
accounting practice.
When a subsidiary is first acquired, the purchase method eliminates the investment against
the equity of the subsidiary with the difference going to goodwill. Minority interest is also
recorded.
After the subsidiary is first acquired, the parent and minority share of the subsidiary's
earnings is determined. For example, if you own 80% of a subsidiary, you claim 80% of their
annual net income while the minority share is 20%.
In the following example, a German company acquired a French company for 50,000. The
aggregated amounts cannot be reported because they include values for both the parent and
the subsidiary. Therefore, the values that are in common are eliminated to produce the Group
results.
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Lesson: Describing Consolidation and Elimination Principles
Only 80% of the subsidiary is owned in this example so there was a premium paid which is
booked as goodwill and minority interest is also booked for the 20%. Goodwill of 40,000 is
based on the parent's share of the subsidiary’s equity, which is 40,000 (.8 times 50,000) for
which they paid 80,000.
Figure 199: COI Example — Purchase Method 80% @ 80,000
Equity Method Example
In this section, you learn the accounting entries for the Equity Method.
In the following example, a German company purchased 30% of a French company for
20,000. The net effect will be to debit Goodwill for 5,000 and a credit to the investment
account by 5,000. France has equity of 50,000 of which 15,000 belongs to Germany and
since they paid 20,000, there is 5,000 of Goodwill.
Figure 200: Equity Method Concept
Note:
In some cases, the subsidiary's cash and equity would not appear in the Investor's
books.
LESSON SUMMARY
You should now be able to:
●
Describe consolidation and elimination principles
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Unit 4: Consolidations and Eliminations
258
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Unit 4
Lesson 9
Consolidating Investments
LESSON OVERVIEW
In this lesson, you learn about consolidating using the Purchase Method.
Business Example
Many subsidiaries in your group are owned by more than 50% and are therefore consolidated
using the Purchase method. You need to understand how the Purchase method can be
configured.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Eliminate investment accounts
●
Consolidate equity accounts
●
Eliminate dividends
Purchase Method Investment Elimination
The following are the key points to note about the purchase method:
●
●
●
The Purchase (full/global) method typically applies to subsidiaries owned by more than
50%.
The investment value in the holding company is eliminated.
The investment value in the holding company is booked against the purchase sub so they
can be used for further calculations.
●
The equity (Common Stock and Additional Paid-in Capital) is eliminated.
●
Goodwill is recorded.
●
Minority interest / non controlling interest is booked.
Note:
In this lesson, consolidation is run several times so that the impact is clear. Once
the testing is complete, then all consolidation and elimination values are booked at
one time.
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Unit 4: Consolidations and Eliminations
Figure 201: Purchase Method Before Eliminations
Now that currency translation has been run, the purchase method elimination can be
executed. The method codes are already in place so now the multipliers and elimination
adjustment rules are needed.
Investment Elimination for the Parent
Figure 202: Investment Elimination Multiplier and Elimination Rule
The IF20 multiplier is set up as follows:
260
●
Type: The type is blank in this case.
●
Entity Method: Select holding (10) and purchase(20) sub values.
●
Intco Method: Select related purchase(20) sub values.
© Copyright. All rights reserved.
Lesson: Consolidating Investments
●
All Formula: 100%
●
Group Formula: POWN.
●
Minority Formula: 1–POWN.
The Investments elimination adjustment rule is set up as follows:
●
Header: The destination audit is Investments.
●
Details:
-
Source Account: Values for the accounts with the Invest property are selected.
-
Source Flow: Opening and change flows are included.
-
Destination All Account: The credit accounts are the same as the source.
-
Destination Group Account: The 122B balancing account will receive the debit.
-
Destination Minority Account: The 122B balancing account will receive the debit.
-
Multiplier: IF20 is being used.
-
Force Close: The closing flow is being recorded simultaneously as the source flows.
-
Force Intco Member: The I_None member will be booked along with the valid Intco
members.
Figure 203: Investment Elimination Executed from Consolidation Monitor
Consolidation can be run for any group.
Incremental Consolidation should only be selected when the only change is that there are new
data records.
Full Consolidation should be run when there are master data changes, configuration changes,
or exchange rate changes.
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Unit 4: Consolidations and Eliminations
Figure 204: Investment Elimination Result for Parent
Normally, all eliminations would be executed at one time however, for clarity they are broken
down to the atomic level in this lesson.
Investment Elimination Result for Subsidiary
Figure 205: Investment Elimination Result for Subsidiary
The Investments elimination adjustment rule is set up as follows:
●
Header: Destination audit is Investments.
●
Details:
-
Source Account: Values for the accounts with the Invest property are selected.
-
Source Flow: Opening and change flows are included.
-
262
Reverse Sign: Since the source accounts and the target accounts have a different
natural sign, their values are reversed.
© Copyright. All rights reserved.
Lesson: Consolidating Investments
-
Destination All Account: The 122B balancing account will receive the credit.
-
Destination Group Account: The 2312 retained earnings account will receive a debit.
-
Destination Group Account: The 2410 minority account will receive a debit.
-
Multiplier: IF20 is being used.
-
Force Close: The closing flow is being recorded simultaneously as the source flows.
-
-
Swap Entity Intco: Since the parent source values are being used, the entity must be
swapped to write the values to the subsidiary.
Force Intco Member: The I_None member will be booked along with the valid Intco
members.
The equity entries will be addressed after you configure the investment elimination.
Purchase Method Equity Consolidation
The following are the key points to note about equity consolidation:
●
The Investment elimination has already been completed.
-
-
●
The investment value in the holding company is eliminated.
The investment value in the holding company is booked against the purchase sub so
they can be used for further calculations.
Now the equity accounts need to be consolidated.
-
The equity (Common Stock and Additional Paid-in Capital) is eliminated.
-
Goodwill is recorded.
-
Minority interest / non controlling interest is booked.
Figure 206: Equity Elimination Multiplier and Elimination Rule
The F020 multiplier is set up as follows:
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263
Unit 4: Consolidations and Eliminations
●
Type: The type is blank in this case.
●
Entity Method: Select Purchase(20) sub values.
●
Intco Method: Select all (99) related sub values.
●
All Formula: 100%
●
Group Formula: POWN.
●
Minority Formula: 1–POWN.
Note:
Together, the group and minority formula makes up 100%.
The Equity elimination adjustment rule is set up as follows:
●
Header: The destination audit is Equity.
●
Details:
-
Source Account: Values for the accounts with the Equity property (Equity and
Additional Paid in Capital accounts) are selected.
-
Source Flow: Opening and change flows are included via the F_Tot parent.
-
Destination All Account: The credit accounts are the same as the source.
-
Destination Group Account: The 2312 retained earnings account will receive a debit.
-
Destination Minority Account: The 2410 minority account will receive a debit.
-
Multiplier: F020 is being used.
-
Force Close: The closing flow is being recorded simultaneously as the source flows.
In row 1 of the elimination and adjustment rule, equity is eliminated against the Retained
Earnings (2312) and Minority Interest (2410).
Figure 207: Equity Elimination Result
Four entries were made:
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Lesson: Consolidating Investments
1. Common Stock: 100% of the 16,200 was eliminated.
2. Additional Paid in Capital: 100% of the 2,370 was eliminated.
3. Non Controlling Interest: The 1,857 = .1(1–POWN) x (16,200 + 2370).
4. Retained Earnings: 16,713 = .9(POWN) x (16,200 + 2370).
The sum of the four entries is to 0 (-16200 + -2370 + 1857 + 16713).
Therefore, the Common Stock and Additional Paid-in Capital are eliminated against Retained
Earnings and Minority Interest.
Note:
CTA = Currency Translation Adjustment.
Figure 208: Retaining Earnings and CTA Multiplier and Elimination Rule
The F030 multiplier is set up as follows:
●
Type: The type is blank in this case.
●
Entity Method: Select Purchase(20) sub values.
●
Intco Method: Select all (99) related sub values.
●
All Formula: 1–POWN.
●
Group Formula:
●
Minority Formula: 1–POWN.
The Equity elimination adjustment rule is set up as follows:
●
Header: The destination audit is Equity.
●
Details:
-
Source Account: Values for the accounts with the RE_CTA (Retained Earnings and
Currency Translation Adjustment accounts) property are selected.
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Unit 4: Consolidations and Eliminations
-
Source Flow: Opening and change flows are included.
-
Destination All Account: The credit accounts are the same as the source.
-
Destination Group Account:
-
Destination Minority Account: The 2410 minority account will receive a debit.
-
Multiplier: F030 is being used.
-
Force Close: The closing flow is being recorded simultaneously as the source flows.
In row 2, Retained Earnings and CTA are reduced for the Minority Share.
Figure 209: Retaining Earnings and CTA Result
Three entries were made:
1. Foreign Currency Translation Adjustment: –497 = .1(1–POWN) x 4,965. (The all account
creates a credit).
2. Non Controlling Interest: The 3,476 = 1,857 from the Equity elimination + .1(1–POWN) x
(4,965 + 11,200).
3. Retained Earnings: 15,591 = 16,713 from the Equity elimination + .1(1–POWN) x (11,220).
Retained Earnings of the current year are deducted of the Minority Share.
Note:
Additional accounts may exist in the equity section and they would follow, in most
cases, the described behavior. However, different approaches or methods can
also be configured.
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Lesson: Consolidating Investments
Figure 210: Update to Subsidiary Net Income Result
Net Income: 1,122 = .1(1–POWN) x 11,220.
The Equity elimination adjustment rule is set up as follows:
●
Header: The destination audit is Equity.
●
Details:
-
Source Account: Retained Earnings is selected.
-
Source Flow: The annual net income flow is included.
-
Destination All Account:
-
Destination Group Account:
-
Destination Minority Account: The 3900 net income account will receive a debit.
-
Destination Flow: The ending flow will be booked.
-
Multiplier: F030 is being used.
In row 3, minority Interest in the Net Income (Retained Earnings with flow F_ANI) is also
booked in the Profit and Loss Statement.
Goodwill Calculation
●
The goodwill in this case is reflected in two amounts: (-4,469 CTA +23,189 RE) = 18,721.
●
The sub’s total equity = 34,755 (16,200 + 2,370 + 4,965 + 11,220).
●
Goodwill = Investment 50,000 – (Equity 34,755 x .9 Pown) = 18,721.
Purchase Method - Summary
●
The investment value in the holding company is eliminated.
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Unit 4: Consolidations and Eliminations
●
The investment value in the holding company is booked against the purchase sub so they
can be used for further calculations.
●
The equity (Common Stock and Additional Paid-in Capital) is eliminated.
●
Goodwill is recorded.
●
Minority interest / non controlling interest is booked.
Dividend Eliminations
Figure 211: Purchase Method - Dividends Elimination
The example in the figure, Purchase Method - Dividends Elimination, shows the subsidiary is
owned by 80% and pays a dividend of 100. The financial income in the holding must be
eliminated. This elimination has an effect to the Net Income.
The dividend paid to the minority interest, initially reported on the Retained Earnings account
by the subsidiary is reclassified as minority interest in the subsidiary accounts.
The elimination is triggered by the Dividends (income) account reported by the holding. The
minority share in the dividends, paid by the subsidiary, is booked to the minority interest.
Note:
When the holding is not consolidated using 100%, Minority Interests are also
booked in the Balance Sheet (B/S) and in the Profit and Loss statement (P&L).
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Lesson: Consolidating Investments
Rules for Dividend Elimination
Figure 212: Rules for Dividends Elimination
●
●
●
Rule 1, dividend Income is eliminated, and the Minority Interest in the Profit & Loss is
adjusted on account 3900 when the holding is not consolidated using 100%.
Rule 2, the effect to the Net Income is booked in the Retained Earnings (account 2312) and
Minority Interest (2410) on flow F_ANI.
Rule 3, in the Retained Earnings account, the dividends paid (flow F_DIV) is eliminated.
Note:
In this scenario, all the elimination is booked in the holding entity.
LESSON SUMMARY
You should now be able to:
●
Eliminate investment accounts
●
Consolidate equity accounts
●
Eliminate dividends
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Unit 4
Lesson 10
Describing Stage Consolidation
LESSON OVERVIEW
In this lesson, you learn about stage consolidation.
Business Example
You need to report financial statements by segments. In these reports, it is needed to show
the eliminations within each segment but also the eliminations between segments. You want
to learn about the Stage consolidation since this feature can help to produce segment
reporting.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe stage consolidation
Stage Consolidation
●
●
In a decentralized consolidation scenario: when sub groups are responsible for their own
consolidation, and upper groups are only interested in the eliminations recorded on their
own level.
In a segment reporting scenario: groups represent segments. Segment reporting must
show the following:
-
-
The different segments of the group including the eliminations between entities of each
segment.
The eliminations between segments.
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Unit 4: Consolidations and Eliminations
Figure 213: Stage Consolidation Overview
Note:
In the figure Stage Consolidation Overview 22,375 is the elimination amount
between America and Asia 4,155 within America and Asia.
Stage consolidation is an option to record automatic eliminations of the sub groups into a
separate Audit member.
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Lesson: Describing Stage Consolidation
Stage Consolidation Dimension Properties
Figure 214: Stage Consolidation Dimension Properties
Stage consolidation is activated by setting the following relevant dimension properties:
●
Group-type dimension - DATASRC_LEVEL=Y
●
Audit-type dimension - DATASRC_TYPE=L
Note:
It is also possible to assign, for each automatic audit member, a specific target
audit member by using the DATASRC_STAGE property.
LESSON SUMMARY
You should now be able to:
●
Describe stage consolidation
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Unit 4: Consolidations and Eliminations
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Unit 4
Lesson 11
Describing Scope Variation
LESSON OVERVIEW
In this lesson, you learn about scope variation.
Business Example
Acquisitions and sales of companies are common activities in your group. To produce the
financial statements, these changes must be clearly identified. Therefore, you want to know
how these scope variations can be tracked in the system.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe Scope Variation
Scope Variation Overview
The following are the key points to note about scope variation:
●
●
●
Scope variation is used to automate accounting entries for changes to the investment
structure.
These changes include:
-
Acquisitions.
-
Increase in share.
-
Method changes.
-
Divestitures.
The flow dimension has special member IDs that are used to capture the financial impact.
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Unit 4: Consolidations and Eliminations
Figure 215: Scope Variations Overview
The group structure may change over time because of acquisitions or sales of shares. These
scope changes are reflected in the Ownership Manager.
The effect of group structure changes must be isolated on specific flows in order to produce
consistent consolidated reports, such as the Statement of Cash Flow or the Statement of
Changes in Equity.
The merger of two entities is also a variation scope scenario.
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Lesson: Describing Scope Variation
Scope Variations - Flow Analysis (Incoming)
Figure 216: Scope Variations - Flow Analysis (Incoming)
When a new entity is acquired, the impact of the acquisition on the balance sheet accounts
must be recorded on a specific flow. The data is copied by the consolidation engine for
entities that are marked as 'new' or otherwise because the system checks opening balance
versus closing balance of previous year automatically.
This is automatically calculated by the consolidation program.
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Unit 4: Consolidations and Eliminations
Scope Variations - Flow Analysis (Percentage)
Figure 217: Scope Variations - Flow Analysis (Percentage)
When additional shares are acquired, the ownership rate is increasing. The impact on the
group retained earnings and the minority interest retained earnings must be recorded on a
specific flow.
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Lesson: Describing Scope Variation
Scope Variations - Flow Analysis (Leaving)
Figure 218: Scope Variations - Flow Analysis (Leaving)
When an entity is divested from the group structure, its balance sheet balances must be
suppressed in the group statements. This is calculated automatically using a specific flow.
Note:
The calculation applies to the data reported by the entity (INPUT) but also applies
to the automatic eliminations. For example, the intercompany eliminations
recorded last year end must be reversed using the relevant flow.
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Unit 4: Consolidations and Eliminations
Scope Variation Logic
Figure 219: Scope Variations - Built in Calculation Logic
Some variation scope scenarios (New, Method or Rate change) can be calculated
automatically only by comparing the ownership structure (ownership data) between the prior
year and the current year.
When a company leaves the group, it is necessary to assign it a method defined with the
method type Leaving.
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Lesson: Describing Scope Variation
Scope Variation in Business Rules
Figure 220: Scope Variations - Business Rules
Business rules (Methods, Method-based Multipliers, Eliminations, and Adjustments) are used
to calculate more complex scenarios like:
●
NEW: incoming at the beginning or at the end of the period
●
LEAVING: outgoing at the beginning or at the end of the period
Depending on your requirements, you may need to calculate more complex variation scope
scenarios. You can achieve this by combining the following business rules: Methods, Methodbased Multipliers, Elimination and Adjustments.
In the figure, Scope Variations - Business Rules, two different methods are created for the
companies (Purchase or Full method) leaving the group:
●
28 – Full divested during the year
●
29 – Full divested last year end
The following multipliers are also defined with these methods:
●
I000 includes 10-Holding, 20-Full and 28-Full divested during the year
●
F008 includes only 28-Full divested during the year
●
F009 includes only 29-Full divested last year end
The integration rules are defined as follows:
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Unit 4: Consolidations and Eliminations
●
●
●
●
Rule 1, closing balances (F_TOT) are integrated for 20-Full and 28-Full divested during the
year
Rule 2, closing balances (F_TOT) are reversed on flow F_SCO (Outgoing) for 28-Full
divested during the year
Rule 3, opening balances (F_OPE) are integrated for 29-Full divested last year end
Rule 4, opening balances (F_OPE) are reversed on flow F_SCO for 29-Full divested last
year end
Scope Variations - Flow Dimension
Figure 221: Scope Variations - Flow Dimension
The consolidation logic is able to calculate scope variations on specific flow members
because a specific FLOW_TYPE property is assigned to each member indicating where to
record the scope variation.
It is mandatory that the following values are assigned to one (and only one) member:
OPENING, CLOSING, VARSCP.
If the values VARSCPNEW, VARSCPLEAV, VARSCPPERC, and VARSCPMETH are not
assigned to a member, the consolidation logic will record the corresponding variation scope
(New, Leaving, Percentage, or Method change) on the flow member assigned to VARSCP.
LESSON SUMMARY
You should now be able to:
●
282
Describe Scope Variation
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Unit 4
Lesson 12
Configuring Equity Pickup: Optional
LESSON OVERVIEW
In this lesson, you learn about configuring equity pickup.
Business Example
In your group, a US company must publish the Federal Reserves reporting, so you need to
learn more about this function.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Configure equity pickup
Equity Pickup Overview
The following are the key points to note about equity pick up:
●
Equity Pick Up (EPU) is only needed if standalone parent-only financial statements are
required.
●
Designed to fulfill specific reporting requirements in the US.
●
EPU Reports are independent from the standard consolidated statements.
●
EPU is run after all other closing tasks are complete.
●
Uses direct ownership rates.
●
Equity Pick Up can be run from the EPU Monitor or using Data Manager Package.
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Unit 4: Consolidations and Eliminations
Equity Pickup Components
Figure 222: Equity Pick Up Components
You can activate the Equity Pick Up component in SAP Netweaver as follows:
1. Access the Implementation Guide using the transaction code SPRO.
2. Choose the SAP Reference IMG.
3. Select: Planning and Consolidation → Configuration Parameters → Set Global Parameters.
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Lesson: Configuring Equity Pickup: Optional
Equity Pickup Business Rules
Figure 223: Equity Pick Up Rules-General
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Unit 4: Consolidations and Eliminations
Figure 224: Equity Pick Up Rules-Controlling
The equity Pick Up Rule is defined on three different tabs:
General tab:
●
●
●
●
Destination Audit: a base member to record the Equity Pick Up results. The
destination audit member must not be included in the consolidation hierarchy of Audit
because the Equity Pick Up results are independent from the consolidated figures.
Ownership Account: the member where the direct ownership is input to calculate the
Equity Pick Up. The value on this member determines the scenario. A value larger than
50% indicates a controlling scenario. A value larger than 20% and lower than 50%
indicates a non-controlling scenario. A value lower than 20 % is ignored.
Controlling Parent ID and Non-Controlling Parent ID: optional, can be used to override
the Ownership account mentioned above.
●
Periodic calc: use to trigger periodic calculation.
●
Read Non-Intco member only: used to select data only, for example, on I_NONE.
●
Other Dimensions Filter: to select data on other dimensions.
●
Force Destination Members: to record the results on specific dimension members.
●
Net Income: to select, using account and flow dimensions, the Net Income values.
●
286
Source Audit: a base or parent member to select the source data for the Equity Pick
Up.
Other Comprehensive Income: to select, using account and flow dimensions, the Other
comprehensive Income.
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Lesson: Configuring Equity Pickup: Optional
Controlling and Non-Controlling Tabs
You define here the destination accounts and flows, and the options to record the Equity
Pick Up results for the Net Income and for the Other Comprehensive Income.
Note:
Equity Pick Up resulting from the Net Income is recorded on the Balance Sheet
and also on the Profit and Loss.
Minority Interests are only recorded in the Controlling scenario.
Equity Pick Up Monitor
Figure 225: Equity Pick Up Monitor
In the context of the Equity Pickup Monitor, an entity must be selected. The entities owned by
the selected entity appear in the rows, and the Equity Pick Up can be executed for these
companies.
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Unit 4: Consolidations and Eliminations
Equity Pick Up Results
Figure 226: Equity Pick Up Results
The Equity Pick Up Audit Report shows the source and destination data. It also indicates if a
Controlling or Non-controlling scenario applies to the entity.
When a subsidiary also has ownership in other subsidiaries, the source data can include
Equity Pick Up calculated at this level. This is because the Equity Pick Up is also calculated at
this level. In the Equity Pick Up Audit Report you can use the link to drill into the subsidiary
Equity Pick Up.
Equity Pick Up in EPM Report
Figure 227: Equity Pick Up in EPM Report
288
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Lesson: Configuring Equity Pickup: Optional
Equity Pick Up results can also be viewed by using an EPM report. You can here combine the
input data and the Equity Pick Up results, or report only on the EPU results.
Note:
Remember, Equity Pick Up results are recorded on the non-consolidated group
member (example: S_None).
LESSON SUMMARY
You should now be able to:
●
Configure equity pickup
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Unit 4
Learning Assessment
1. You use currency translation rules to translate the source currency (local currency) into a
target currency. Which of the following statements are correct?
Choose the correct answers.
X
A The source currency (GBP, CNY…) is recorded on the CURRENCY dimension of the
data records.
X
B The source currency is defined in the CURRENCY property of the entity members.
X
C The target currency is selected when you run the currency translation.
X
D The target currency is defined in the GROUP_CURRENCY property of the group
member.
2. Intercompany booking is conducted after which of the following events?
Choose the correct answer.
X
A After the intercompany Matching.
X
B After intercompany eliminations.
X
C After equity pick up.
X
D After consolidation.
3. What is the Ownership Model is designed to store?
Choose the correct answer.
X
A The corporate investment structure.
X
B The entity dimensional hierarchy.
X
C The investment amounts in group currency at the day of acquisition.
X
D The mapping of entity to intco member IDs.
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Unit 4: Learning Assessment
4. Integration rules are used to:
Choose the correct answers.
X
A Eliminate via elimination entities.
X
B Record data by scope when running consolidation.
X
C Reduce data volumes.
X
D Record data by scope when running translation.
5. Which of the following can be used to eliminate Intercompany activities?
Choose the correct answers.
X
A US Elimination.
X
B Booking.
X
C Elimination and Adjustment.
X
D Multipliers
X
E Matching.
6. US Eliminations can be used when:
Choose the correct answers.
X
A You need to record elimination entries by elimination entity.
X
B You need to record elimination entries by scope.
X
C You need to record elimination entries by segment and trading partner.
X
D You need to record elimination entries by entity and trading partner.
7. You need to explain management consolidation to your co-worker. What can you say to
them?
Choose the correct answers.
292
X
A Management consolidation focuses on the income statement.
X
B Management consolidation focuses on the balance sheet.
X
C Management consolidation focuses on intercompany eliminations.
X
D Management consolidation focuses on intracompany eliminations.
© Copyright. All rights reserved.
Unit 4: Learning Assessment
8. The purchase method can be described as follows:
Choose the correct answers.
X
A The parent owns greater than 50% of the subsidiary.
X
B The parent owns less than 50% of the subsidiary.
X
C Minority interest may be calculated.
X
D Goodwill may be recorded.
9. To run the investment elimination, you need to assign which method to the parent?
Choose the correct answers.
X
A 10.
X
B 20.
X
C 30.
X
D 99.
10. Stage consolidation is activated by setting which of the following dimension properties?
Choose the correct answers.
X
A Group-type dimension - DATASRC_LEVEL=Y
X
B Group-type dimension - DATASRC_LEVEL=N
X
C Audit-type dimension - DATASRC_TYPE=L
X
D Audit-type dimension - DATASRC_TYPE=T
11. Scope variation has which of the following features:
Choose the correct answers.
X
A Automatic generation of postings for new acquisitions and divestitures.
X
B Calculation of group ownership percentages.
X
C Scope data manager package.
X
D Transparency of financial impacts in special flow members.
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Unit 4: Learning Assessment
12. Equity Pick Up is:
Choose the correct answers.
294
X
A Used to generate standalone entity specific financial statements.
X
B Used to generate standalone elimination entity specific financial statements.
X
C Run before consolidation.
X
D Run after consolidation.
© Copyright. All rights reserved.
Unit 4
Learning Assessment - Answers
1. You use currency translation rules to translate the source currency (local currency) into a
target currency. Which of the following statements are correct?
Choose the correct answers.
X
A The source currency (GBP, CNY…) is recorded on the CURRENCY dimension of the
data records.
X
B The source currency is defined in the CURRENCY property of the entity members.
X
C The target currency is selected when you run the currency translation.
X
D The target currency is defined in the GROUP_CURRENCY property of the group
member.
Correct: The source currency is defined in the CURRENCY property of the entity
members. | The target currency is can be selected when you run the currency translation
if you use the data manager package for example. | The target currency is defined in the
GROUP_CURRENCY property of the group member when you translate a group from the
consolidation monitor for example.
2. Intercompany booking is conducted after which of the following events?
Choose the correct answer.
X
A After the intercompany Matching.
X
B After intercompany eliminations.
X
C After equity pick up.
X
D After consolidation.
Correct: Booking is run after Matching.
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Unit 4: Learning Assessment - Answers
3. What is the Ownership Model is designed to store?
Choose the correct answer.
X
A The corporate investment structure.
X
B The entity dimensional hierarchy.
X
C The investment amounts in group currency at the day of acquisition.
X
D The mapping of entity to intco member IDs.
Correct: The Ownership Model is designed to store he corporate investment structure.
4. Integration rules are used to:
Choose the correct answers.
X
A Eliminate via elimination entities.
X
B Record data by scope when running consolidation.
X
C Reduce data volumes.
X
D Record data by scope when running translation.
Correct: Integration rules are used to record data by scope when running consolidation
and reduce data volumes.
5. Which of the following can be used to eliminate Intercompany activities?
Choose the correct answers.
X
A US Elimination.
X
B Booking.
X
C Elimination and Adjustment.
X
D Multipliers
X
E Matching.
Correct: The US Elimination rule, the Elimination and Adjustment rule, and the Multipliers
can be used for eliminations.
296
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Unit 4: Learning Assessment - Answers
6. US Eliminations can be used when:
Choose the correct answers.
X
A You need to record elimination entries by elimination entity.
X
B You need to record elimination entries by scope.
X
C You need to record elimination entries by segment and trading partner.
X
D You need to record elimination entries by entity and trading partner.
Correct: US Eliminations does record elimination entries by elimination entities, segment
and trading partner, and entity and trading partner.
7. You need to explain management consolidation to your co-worker. What can you say to
them?
Choose the correct answers.
X
A Management consolidation focuses on the income statement.
X
B Management consolidation focuses on the balance sheet.
X
C Management consolidation focuses on intercompany eliminations.
X
D Management consolidation focuses on intracompany eliminations.
Correct: Management consolidation focuses on the income statement and intracompany
eliminations.
8. The purchase method can be described as follows:
Choose the correct answers.
X
A The parent owns greater than 50% of the subsidiary.
X
B The parent owns less than 50% of the subsidiary.
X
C Minority interest may be calculated.
X
D Goodwill may be recorded.
Correct: The purchase method is used when ownership is over 50% and minority interest
and goodwill can be calculated.
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Unit 4: Learning Assessment - Answers
9. To run the investment elimination, you need to assign which method to the parent?
Choose the correct answers.
X
A 10.
X
B 20.
X
C 30.
X
D 99.
Correct: 10 is assigned to the parent of the group.
10. Stage consolidation is activated by setting which of the following dimension properties?
Choose the correct answers.
X
A Group-type dimension - DATASRC_LEVEL=Y
X
B Group-type dimension - DATASRC_LEVEL=N
X
C Audit-type dimension - DATASRC_TYPE=L
X
D Audit-type dimension - DATASRC_TYPE=T
Correct: To perform stage consolidation, you need to set the Group-type dimension
DATASRC_LEVEL property to Y and the Audit-type dimension - DATASRC_TYPE property
to L.
11. Scope variation has which of the following features:
Choose the correct answers.
X
A Automatic generation of postings for new acquisitions and divestitures.
X
B Calculation of group ownership percentages.
X
C Scope data manager package.
X
D Transparency of financial impacts in special flow members.
Correct: Scope variation is used for automatic generation of postings for new acquisitions
and divestitures and transparency of financial impacts in special flow members and it
records the the financial impact in special flow members ... making them transparent.
298
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Unit 4: Learning Assessment - Answers
12. Equity Pick Up is:
Choose the correct answers.
X
A Used to generate standalone entity specific financial statements.
X
B Used to generate standalone elimination entity specific financial statements.
X
C Run before consolidation.
X
D Run after consolidation.
Correct: EPU is used to generate standalone entity specific financial statements and it is
run after all other closing tasks are complete.
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Unit 4: Learning Assessment - Answers
300
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UNIT 5
Consolidation Process
Monitoring
Lesson 1
Configuring Work Status
303
Lesson 2
Using the Controls Monitor to Validate Data
309
Lesson 3
Configuring Consolidation Business Process Flows
321
UNIT OBJECTIVES
●
Configure work status
●
Describe controls
●
Execute controls
●
Configure controls
●
Use business process flows
●
Configure business process flows
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Unit 5: Consolidation Process Monitoring
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Unit 5
Lesson 1
Configuring Work Status
LESSON OVERVIEW
In this lesson, you learn about work status and security.
Business Example
As several users will be contributing to the consolidation process, you need to know how you
can lock data against changes, and also define the security to grant access to the users.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Configure work status
Work Status
The following are the key points to note about Work Status:
●
Work Status is used primarily to control changes to data in a Model.
●
Work Status is similar to the concept of closing the period.
●
●
Example: when the work state is set to Approved for 2018.12 / US / Actual, no more data
changes are allowed.
Work States such as In Process, Submitted, and Approved are defined at the Environment
level.
●
Work State dimensions (such as Time, Entity, Category) are configured by Model.
●
Owners or Managers can change work states.
●
●
●
●
Owners are determined from dimensions that have the owner property and a hierarchy (or
the parent group property).
Teams are typically used as owners.
Owners of the parent are managers of the child. For example, if user1 is the owner of
Europe, then user1 is the manager of Germany.
Work status is integrated with consolidation:
-
●
Work states cannot be changed for a data region unless controls have passed. (if
controls use work state dimensions)
-
Work status can be changed from the consolidation monitor.
-
The context dimensions for controls can be the same as the work state dimensions.
Work states can be set from:
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-
Consolidation monitor.
-
EPM add-in.
-
Business Process Flows.
-
Web reports / input forms.
Work Status Activities
The figure, Work Status Activities, shows an example of the allowed activities for owners and
managers.
Figure 228: Work Status Activities
Work states are used to control who can perform what activities as well as who can change
the work state for a given data region.
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Lesson: Configuring Work Status
Work Status Configuration
Figure 229: Configure Work States for the Environment
The work state options are defined as follows:
●
All - all users are allowed to perform the activity
●
None - users are Locked out of that activity
●
Owner - only the Owner can perform the activity
●
Manager - only the Manager can perform the activity
The Work status interfaces are the methods that users can save data or documents to the
database. They are defined as follows:
●
Data Manager - running Data Manager packages
●
Journals - posting journal entries
●
Manual Entry - manually entering data in Web or EPM input forms
●
Documents - posting document attachments
●
Comments - saving comments to the database
Status Controlled By determines who can change the work state.
For the Owner dimension, you need to define the hierarchy (or use the parent group property
in the scope dimension) that will be used for the Owner and Manager relationship.
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Figure 230: Configure Work Status for a Consolidation Model
If the business requirement is use owners assigned to the scopes, then the scope dimension
can be used as the owner dimension and entity is included in the other dimensions.
If the business requirement is use owners assigned to the entities, then the entity dimension
can be used as the owner dimension and scope is included in the other dimensions.
Work status data can be deleted for a model by disabling work status.
Figure 231: Configure the Scope Dimension to be used for Work Status
To use a team as the owner, it must be enclosed in square brackets: [Team name].
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Lesson: Configuring Work Status
Figure 232: Setting Work Status from the Consolidation Monitor
Figure 233: Work Status Report
Work status reports can be run from the BPC web client: Go to Open Main Menu
→
System Reports → Other → Work Status.
LESSON SUMMARY
You should now be able to:
●
Configure work status
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Unit 5
Lesson 2
Using the Controls Monitor to Validate Data
LESSON OVERVIEW
In this lesson, you learn how to configure Controls and use the Controls Monitor to validate
data.
Business Example
You need to perform user defined checks after data has been written to the database to help
ensure the completeness and accuracy of the data.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Describe controls
●
Execute controls
●
Configure controls
Controls Overview
Controls can be enforced (blocking controls) or just displayed as warnings, to inform users of
potential problems.
Controls - Key Points
●
●
Controls can be used to evaluate existing data such as:
-
Assets = Liabilities + Owners Equity.
-
Net income = retained earnings.
-
Clearing accounts = 0.
-
Accounts payable > 10% of cash.
-
...
Controls are an essential part of every consolidation model and they might also be useful
in planning or reporting models.
●
You run controls and check the controls results in the Control Monitor.
●
The status of controls also appears in the consolidation monitor.
●
●
Controls can be of blocking or warning type, and can be dismissed if the user has the right
to do so.
Work status cannot be changed unless blocking type controls have passed. (if controls use
work status dimensions)
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●
●
Controls are assigned via controls sets to category and time combinations to allow
different controls by month for example.
You can run the same controls for all entities or select which control to run for specific
entities.
Running Controls Steps
Running Controls could include the following steps
●
Run Controls.
●
Review the controls results.
●
Correct the data.
●
Re-run Controls.
●
Change the Work state to the next level (for example, submitted).
Note:
Work Status can be used to prevent changes to data for a selected data region.
Possible work states could include:
●
Unlocked
●
Submitted
●
Approved
Controls Monitor
The following are the key points to note about the Controls Monitor:
●
The Controls Monitor enables you to:
-
Run controls.
-
Open controls results.
●
Controls are run on a selected entity or group of entities.
●
Controls can be run on:
●
-
Loaded data: in LC by entity.
-
Translated data: in GC by entity.
-
Consolidated data: In GC by group/scope.
The Controls Monitor structure can be:
-
-
310
Group Hierarchy: this is the investment ownership structure maintained in the
ownership manager.
Entity Hierarchy: this is the entity dimensional hierarchy.
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Lesson: Using the Controls Monitor to Validate Data
Figure 234: Control Monitor
The figure, Control Monitor, shows how the control monitor is split into the following areas:
●
At the top, the context area
This displays the selected dimension members: Time, Category, Entity, and any other
dimension used as a driving dimension in the work status definition or in the controls
enablement for the model. To modify the dimension members displayed in the context
area, click the linked members to display the Member Selector dialog box.
Note:
Parent members can be selected for some dimensions, if activated when
enabling controls.
●
●
In the middle, a list of control sets organized by entity, displaying the control status and
the number of blocking or warning controls
At the bottom is a detailed list of failed controls for selected members. Each time you
select a different member in the control set list, the list of failed controls is refreshed.
Prerequisites To Use Controls
1. You have been assigned the Display Controls security task.
2. Work status is turned on.
3. Controls have been configured and enabled.
Controls Context
The selection of the context will define which Category, Time, and Groups/Entities are
displayed in the Control Monitor.
The third selection box will display as follows:
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●
●
For a Consolidation type model, display the Group type dimension (user selects a group
and will get all the sub-groups and entities displayed, according to the definition in the
Ownership Manager). Alternatively, select the entity dimensional hierarchy to be able to
access the entity groups and entities.
For a Financial type model, display the Entity type dimension (user selects an Entity and
will get the selected Entity and all its descendants, according to the hierarchy of the Entity
dimension).
Figure 235: Controls Context
Control Results
From the Controls Monitor the user can choose Open Control Results for a group or base level
member.
The dimensions in the controls context is determined when enabling controls. If needed,
some dimensions can be set to allow selection by node.
This view contains the detail about all the controls, as follows:
●
●
A drilldown can be done on a control by clicking the triangle on the left of the control.
The breakdown members indicate which member of the breakdown dimension is
displayed.
●
The Equation and Result columns show the calculations that are performed and the result.
●
The Threshold column indicates the threshold that was defined for that period.
●
The Type column indicates whether the control is Blocking or Warning.
●
The Status column indicates if the control has passed, failed, or has been dismissed.
Note:
You can decide the execution level for each control rule. This is activated initially in
the implementation guide (SPRO transaction code) in the BPC Global Parameters.
Set the parameter ENABLE_CTRL_ON_DIFF_LEVELS to X and then select which
level to allow on each control. The drop down to select each level will also appear
in the controls monitor.
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Figure 236: Controls Results
The following Status Types are available:
●
To be executed: Control needs to be run (has not been executed yet or data has changed
since last execution)
●
Passed: Control passed successfully
●
Failed: Data needs to be corrected
●
Dismissed: Control was forced to pass
●
Not Applicable: Control has not been executed
Note:
Status for groups are calculated on the fly, the group will always show the lowest
status of all its children.
Control Results and Document Link
It is very easy to see the data comparison performed by the control as well as the difference
and the status.
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Figure 237: Control Results and Document link
To assist with the root cause analysis, you can easily launch the Excel Interface of the EPM
add-in or web reports.
Possible Documents
Use Hypertext to launch any of the following documents:
●
EPM Excel Input Form.
●
EPM Excel Report.
●
Web Input Form.
Note:
When either an Excel Report or Excel Input Schedule is chosen, a separate session
is opened in the Excel Interface of the EPM add-in.
Block Dismissal
There may be cases were blocking controls need to be passed, although the data test is
failing.
For example, when there are some last minute corrections and the figures need to be
published, although all the controls are not passed. For this exceptional case, there is the
possibility to force a control to pass by dismissing it.
A blocking control that has failed can be forced to pass, by highlighting the control in Control
Results and clicking the Dismiss block button.
The status would then be Dismissed and the work state can be advanced.
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Note:
You can only perform this action if you have the Dismiss Blocking Controls task
profile.
Control Components
To use controls, the Entity dimension requires two properties, CONTROL_LEVEL and
CTRL_CURRENCY_NOT_LC.
CONTROL_LEVEL is the level of control that should be applied. There are five possible levels,
as follows:
1. Basic
If an entity is assigned the Basic control level, only Basic controls will be executed for that
entity.
2. Standard
If an entity is assigned the Standard control level, both Basic as well as Standard controls
will be executed for that entity.
3. Advanced
If an entity is assigned the Advanced control level, Basic, Standard, as well as Advanced
controls will be executed for that entity.
4. Comprehensive
If an entity is assigned the Comprehensive control level, Basic, Standard, Advanced, as
well as Comprehensive controls will be executed for that entity.
Note:
If blank, the default is 4 - Comprehensive.
CTRL_CURRENCY_NOT_LC is used to bypass controls in Local Currency (if data is imported
in reporting currency), as follows:
●
If N is selected, then LC is used.
●
If Y is selected the Reporting Currency, based on the Currency property value, is used.
If blank the default is N.
Note:
The CTRL_CURRENCY_NOT_LC is only valid for the Loaded data execution level.
Steps Required to Configure Controls
●
Assign Security Tasks for Controls.
●
Maintain the values for the two control properties in the Entity dimension.
●
Enable Work Status for the Model.
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●
Enable Controls by Model.
●
Create Individual Controls.
●
Create Control Sets.
●
Assign Control Sets to Category and Time.
Control Configuration
In administration, you enable the control for a model. You can select the dimensions that are
relevant for the context of the control, or derive these dimensions from the Work Status
settings.
Typical dimensions selected for controls include: Category, Time, Entity. In some cases,
Currency can also be selected to run the control, for example, in local currency and in group
currencies. You can also include the Group dimension to control data before and after
consolidation.
If the control context is not derived from work status, then the integration between controls
and work status is broken. Therefore in this case, a user can change the work status of an
entity even though its control status is failed or has not been executed.
Figure 238: Enable Controls for a Model
Control Business Rule
The figure, Control Rules, shows the layout of the Control screen.
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Lesson: Using the Controls Monitor to Validate Data
Figure 239: Control Rules
The Control rule in the figure, Control Rules, checks that the Assets (account T100) equals
the Liabilities and Equity (account T200). The control applies to INPUT Audit, the F_END flow
and the I_NONE intercompany member.
In the header there are settings that control all of the line items for the rule such as whether it
is a blocking rule or not.
Definition of Control Field Header
Table 52: Control Field Header Definitions
The following table outlines the control field header definitions:
Field
Definition
ID
ID of the control.
Rule Type
Standard or Customized (by implementing the
UJCTRL_RUN_CONTROL enhancement).
Description
Description of the control.
Type
Warning or Blocking. All blocking controls must pass before the work status can be changed.
Execution Level
Controls can be executed for Loaded, Translated, and
Consolidated data.
Equation Type
Type of comparison using the equal, different, larger, and
smaller operators.
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Field
Definition
Breakdown Dimension(s)
Select up to two additional dimensions to break down the
control.
Control Level
Level of this control, linked to the Control_Level property
of the Entity dimension.
Threshold Level - in Value
In absolute value.
Threshold Level - in Percentage
In percentage
Threshold Level - Reference
Percentages refers to the value from the upper or lower
panel
Note:
When a breakdown dimension is chosen, the control will be executed separately
for each member of the breakdown dimension.
In an example of a breakdown by Audit on the parent RESTATED, the control will
be executed for each child such as INPUT and LC_ADJ_M.
For a breakdown dimension, the same member must be specified in the top and
bottom level of the control.
Upper and Lower Level Field Definitions
Table 53: Upper Level Field Definitions
The following table outlines the upper level field definitions:
Fields
Definition
Sign
+ or -
Account
Member from the Account dimension (parent or base level)
Flow
Member from the Flow dimension (parent or base level)
InterCompany
Member from the Intercompany dimension (parent or
base level)
Audit
Member from the Audit dimension (parent or base level)
Multiply
Select multiply or divide (for the value specified)
Value
Value to multiply or divide by
Table 54: Lower Level Field Definitions
The following table outlines the lower level field definitions:
318
Fields
Definition
Sign
+ or -
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Lesson: Using the Controls Monitor to Validate Data
Fields
Definition
Year Offset
To use a different year. Values can be a year for example
(2010) or an offset (+1,-1)
Period
To use a different period. Values can be a period value or
an offset (+1,-1)
Remaining fields are the same as in the upper level
Link to Documents
Document links can be provided for each Control. These will appear as hypertext links for ease
of access to root cause data.
Figure 240: Link to Documents
Thresholds
Tolerance Threshold can be defined in value or in percentage. When using percentage, you
can define whether the reference is the data selected in the upper panel or in the lower panel.
In some cases, you may want to use a control that tests for accounts payable for example to
be less than 10% of Cash.
Control Sets and Control Assignments
Controls are assigned to Control Sets and then Control Sets are assigned to time and category
members.
By assigning control sets to category and time you can use different controls, for example, for
yearly closing compared to monthly closing.
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Figure 241: Control Set and Control Assignments
Security Tasks for Controls
The following are several security tasks that control user activity:
●
View Controls - Access Controls Monitor in read only mode.
●
Run Controls - Access Controls Monitor and run control calculations.
●
View Controls definition - View Control Manager definitions.
●
Edit Controls definition - Configure controls in Administration.
●
Dismiss Blocking Controls - Force failing controls to Dismissed status.
●
Reset Control Dismissal - Reset a Dismissed control status to its previous status.
LESSON SUMMARY
You should now be able to:
320
●
Describe controls
●
Execute controls
●
Configure controls
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Unit 5
Lesson 3
Configuring Consolidation Business Process
Flows
LESSON OVERVIEW
In this lesson, you learn about configuring consolidation Business Process Flows.
Business Example
To ease the consolidation process for the users, and also to monitor the process, you need to
implement a Business Process Flow.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●
Use business process flows
●
Configure business process flows
Business Process Flow Overview
The following are the key points to note about Business Process Flows
●
Business Process Flows are also referred to as BPFs.
●
Main use cases:
-
-
Status, tracking, and coordination device.
■
Applicable for larger more complex organizations.
■
Owners can either complete their task or submit to a reviewer for approval.
■
Work status can be automatically set when completing a BPF step for example.
Provide a launchpad to access reports and activities.
■
Ease of access to activities via hyperlinks.
■
Position related links together.
●
Good for new employees since the process is visible.
●
Users see activities when they are the owner.
●
Includes work status integration.
●
Users can complete their activities without using BPF process steps.
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Figure 242: Business Process Flows Overview
Users see their assigned tasks from:
●
The web client home page My Activities Timeline ... if deadlines have been set.
●
The web client: go to Open Main Menu
→ My Activities.
On the Process Monitor page, the process owner can monitor the progress of his processes.
Business Process Flows: Key Terms
Table 55: Key Terms
322
Term
Description
Process template
A sequential grouping of activities to complete a
business process.
Activities
The activities that the user can perform in a business process.
Activity context
The dimension members for which an activity is executed.
Process instance
An iteration of a business process flow template
that is in active use.
Process monitor
The users who can monitor the instances of a process template.
Process owner
The user selected in an instance to monitor the
process instance.
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Lesson: Configuring Consolidation Business Process Flows
Term
Description
Performer
The users or team assigned to an entity member.
Reviewer
The users or team assigned to an entity member.
Reviewers can approve or reject submitted activities.
Workspace
A tab in the Web Interface with links to activities.
Hyperlink
A link in a workspace that contains actions such as
Upload File.
Sample Activities
Figure 243: Sample Activities
On the My Activities screen, the upper area includes all processes in which you are involved.
The lower area renders the activities for that process.
If you are responsible for several entities, you have one activity for each entity.
When you select an activity, you see the workspace that includes hyperlinks. The hyperlinks
guide you to the context and interface needed to perform the task.
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Activity Statuses
Figure 244: Activity Statuses
Table 56: Activity Statuses
Activities can have the following statuses:
Status
Description
Open - To perform
Waiting for completion or waiting to be submitted
Submitted – To review
Action has been submitted and the activity is waiting
for review
Completed
Activity is fully completed
Reopen
Completed activity has been reopened
Pending
Activity is waiting for a predecessor activity to be completed
Rejected – To perform
A reviewer has rejected an activity, the activity is open
again for user action
Delayed
Completion of the activity has been delayed due to the
predecessor activity being reopened
Note:
The Performer of an activity is the person responsible for completing the activity.
The Reviewer is the person who must verify the actions taken by the Performer in
a particular activity context. Performers and reviewers can be individuals or made
up of a team. Two or more users can select the same activity concurrently, as
multiple users may be involved in the completion of one activity.
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Lesson: Configuring Consolidation Business Process Flows
Process Templates
Figure 245: Process Template
Table 57: Process Settings Tab Fields
The following table lists the fields and corresponding definitions of the Process Settings tab:
Field
Definition
Name
Provides the name of the process
Description
Provides a brief description of the process
Model
Contains the dimensions that can be used by the process instance
and by the activity context
Identity Dimensions
Dimensions which identify the Process Instances
Process Monitors
User, or team of users, who can monitor the process
A process template describes a regular activity, such as local accountants reporting financial
data to the group. The process template contains general settings and the activities.
Note:
●
●
Separate templates would be needed when you have two totally different
processes. For example, a corporation may have one planning business
process flow and one monthly closing business process flow.
The model in the process template is needed to select the identity dimension,
but a process template can include activities in different models.
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Process Template Components
In the figure, Process Template Components, you can see how the business process flow
components are related.
Figure 246: Process Template Components
The Process Settings contain the general properties of the template.
The action groups are contained in the workspace for each activity.
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Activities in a Process Template
Figure 247: Activities
The activity settings provide instructions to the users and also control the behavior of the
activity.
The activities will be used to track the progress of the process.
Table 58: Activity Fields
The following table outlines the activity fields:
Field
Definition
Name
Provides a title for the activity.
Description
Provides an instruction of what is to be done in the activity.
Opening Criteria
Choose either All activity contexts or Matched activity contexts.
Allow Reopen
Allows authorized users to reopen an activity, select the Yes radio button.
Driving dimension
This dimension is used to determine the granularity of the activity and
to determine the Performers. For example, if you want to run an activity once per region, use the Entity dimension because it has a hierarchy
by region.
Members
Select the members of the Driving Dimension. For example, choose the
AMERICA parent so that its children (US, CA, BR, AR, and so on) will
determine the granularity of the activity.
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Field
Definition
Performer
Select the property that defines the performer for each member of the
Driving Dimension. You can select the Owner property or any other
property for this.
Require Reviewer
Requires that a reviewer must approve or reject the action. When a review is required, you can define that the reviewer will use the same
Workspace as the Performer, or a different one.
Reviewer
Select the property that defines the Reviewer for each member of the
Driving Dimension. You can select the Reviewer property or any other
property.
Opening Criteria allows you to either force all the participants (activity regions) of an activity
to be completed before anyone can proceed, or allow a participant (activity region) to
proceed to the next activity, even if everyone is not yet complete.
Workspaces and Action Groups
Figure 248: Workspaces
Workspaces will contain the groups of related actions for the users. For example, after the
local entities have reported their data, they may need to record local adjustments. They might
use different options such as posting a manual journal or running an automatic adjustment
package.
There are three ways to add contents to the Activity Workspace:
1. New Content.
You can embed existing web contents (Report, Input form) into the Activity Workspace.
2. Add New Worksheet.
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Using this, you can create a new web report or input form from scratch.
3. Add New Action Group.
Actions
Actions contain the target context, and related actions. For each action, you guide the user
through the process by defining the Target Action and the Target Context.
Figure 249: Actions
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Process Instances
Figure 250: Process Instance
Once an Instance has been created, you can start, suspend, reset, resume, and archive the
Instance.
The following are the steps included in the Wizard when you create an instance:
1. Select the Process.
The related activities appear on the right.
2. Select the Owner.
The Owner can finalize the instance.
3. Select the Context.
Choose the members for the Instance Context, such as Actual 2018.12.
4. Check Assignments.
Maintain the Performer and Reviewer assignments.
5. Set the Timeline.
Start with or without deadlines.
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Note:
The instance takes a snapshot of the template. If you make changes to the
template, only new instances created after that point will include the revisions.
After an instance is created, the following activities are available:
●
Start
To start a process Instance.
●
Suspend / resume
Suspended instances are not available to users.
●
Change Assignment
Process Owner, Activity Owners, and Reviewers can be changed by selecting the Change
Assignment option.
●
Reset
To reset an instance back to the first activity.
●
Archive
To archive finalized or inactive instances. An archived process instance is not available for
users.
●
Finalize
You can finalize a process instance if you are the process instance owner.
Note:
Archived instances can be reported on if Audit of Business Process Flow Activity is
turned on.
LESSON SUMMARY
You should now be able to:
●
Use business process flows
●
Configure business process flows
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Unit 5
Learning Assessment
1. Work status can be set with which of the following methods?
Choose the correct answers.
X
A Based on a status change of a BPF step.
X
B Running a data manager package.
X
C The Save Data drop-down in the EPM add-in.
X
D The set work status security task.
2. You have defined Controls rules. Some controls should only apply to the holding
companies, and not to the subsidiaries. What is the correct way to set this up?
Choose the correct answer.
X
A Create two Control Sets and assign them to the entities.
X
B In the upper and lower panels of the Control Rules, select the entity by using a
DIMLIST property.
X
C Define for this control a Control Level linked to the CONTROL_LEVEL property of
the holding entity.
X
D Dismiss the controls for the subsidiaries.
3. Which of the following are required to use a BPF template?
Choose the correct answers.
X
A Approve.
X
B Deploy.
X
C Complete.
X
D Submit.
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Unit 5: Learning Assessment
4. Which of the following are required to use a BPF template?
Choose the correct answers.
334
X
A Approve.
X
B Deploy.
X
C Complete.
X
D Submit.
© Copyright. All rights reserved.
Unit 5
Learning Assessment - Answers
1. Work status can be set with which of the following methods?
Choose the correct answers.
X
A Based on a status change of a BPF step.
X
B Running a data manager package.
X
C The Save Data drop-down in the EPM add-in.
X
D The set work status security task.
That is correct. You can automatically change work status based on a status change of a
BPF step. The Save Data drop-down in the EPM add-in can also be used to change the
work status.
2. You have defined Controls rules. Some controls should only apply to the holding
companies, and not to the subsidiaries. What is the correct way to set this up?
Choose the correct answer.
X
A Create two Control Sets and assign them to the entities.
X
B In the upper and lower panels of the Control Rules, select the entity by using a
DIMLIST property.
X
C Define for this control a Control Level linked to the CONTROL_LEVEL property of
the holding entity.
X
D Dismiss the controls for the subsidiaries.
That is correct: Define for this control a Control Level linked to the CONTROL_LEVEL
property of the holding entity.
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Unit 5: Learning Assessment - Answers
3. Which of the following are required to use a BPF template?
Choose the correct answers.
X
A Approve.
X
B Deploy.
X
C Complete.
X
D Submit.
That is correct. A BPF template must be deployed to use it in an instance.
4. Which of the following are required to use a BPF template?
Choose the correct answers.
X
A Approve.
X
B Deploy.
X
C Complete.
X
D Submit.
That is correct. A BPF template must be deployed to use it in an instance.
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