BPC 10 NW Annual Plan Scenario 8151

DEMO SCRIPT (Internal Document)

Planning and Consolidation (NW)

Annual Plan Demo

Scenario ID: 8151

General Information Cross Industry

SAP BusinessObjects Planning and Consolidation 10, version for the Netweaver Platform

Authors Balaram Pattanaik

Thijs Jan Hansen

Roy Ostergren

Date Last Updated 01 May 2012

Scenario ID: 8151 2 ©SAP AG 2011 / INTERNAL

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Contents

1 Demo Script Overview ...................................................................................................................... 4

2 Demo Access and Information ......................................................................................................... 5

2.1 Demo Environment and Access .............................................................................................. 5

2.2 User Information ...................................................................................................................... 5

2.3 Used Solutions and Versions .................................................................................................. 5

3 Pre-Demo Steps & Recommendations ............................................................................................ 6

4 Demo Script ...................................................................................................................................... 7

4.1 Story flow ................................................................................................................................. 7

4.2 Step-by-Step Guide ................................................................................................................. 8

4.2.1 Initiate Budget & Set Targets ............................................................................................... 8

4.2.2 Revenue and Cost of Sales Planning ................................................................................ 16

4.2.3 HR Planning ....................................................................................................................... 24

4.2.4 Expense Planning .............................................................................................................. 27

4.2.5 Capital Expenditure Planning ............................................................................................ 29

4.2.6 Balance Sheet & Cash Flow Budget ................................................................................. 32

4.2.7 Consolidation & Review ..................................................................................................... 35

5 Appendix ........................................................................................................................................ 42

5.1 Document Update Notes ....................................................................................................... 42


1 Demo Script Overview

Demo description: This demo scenario showcases how SAP BusinessObjects Planning and Consolidation can help organizations streamline the planning process and reduce cycle time in creating and approving budgets. It also shows how the solution enables finance and line of-business managers to collaborate to align budgets.

Intended audience: Line of Business Finance

Business pain points: Accelerate cycle time for planning and budgeting and increase business user productivity

Improve the accuracy of planning and forecasting

Model potential business strategies and decide on a course of action that maximizes value creation

Value proposition: The SAP BusinessObjects Planning and Consolidation application, version for the SAP NetWeaver platform, brings order to business planning processes by helping you plan, budget, and forecast more effectively. With embedded support for financial consolidation, the software facilitates compliance with regulatory and financial reporting requirements.

Reduce cycle time in creating and approving budgets by enabling finance and line of-business managers to collaborate to align budgets

Improve planning and forecasting accuracy via a unified, agile solution that supports rapid re-forecasting and standard business processes

Increase business user productivity with native access to familiar tools such as Microsoft Office

Protagonists Corporate Business Controller responsible for the corporate budgeting process.

Local Financial Controller responsible for the subsidiary’s budget and aligning with line of business managers to align budgets.

Story flow summary This demo scenario is a deep dive into SAP BusinessObjects Planning and Consolidation, version for the SAP NetWeaver platform, and illustrates using the solution for a company’s Annual Budgeting process. The business process in this demo consists of 7 steps with various action items many companies might use to complete an annual or periodic budget. The steps and processes include:

Initiating a plan,

Revenue and Cost of sales planning,

HR planning

Expense planning,

Capital Expenditure,

Balance sheet,

Consolidation and review. See section 4.1 for a full description


2 Demo Access and Information

2.1 Demo Environment and Access

This demo scenario uses the component SAP BusinessObjects Planning and Consolidation

v.10.0, version for the Netweaver Platform.

Before starting the demo several pre-demo steps have to be completed.

Please refer to section 3 – Pre-demo Steps for more information.

To learn more also see next section.

2.2 User Information

User Password Component / Role

bpc01 sbo123 User for running the BPC NW demo scenario

bpc02-10 sbo123 For Shared Landscape: Users created in back-end NW system but not configured in BPC NW application.

2.3 Used Solutions and Versions

Software Component Release Service Pack

SBO Planning and Consolidation 10 SP05

EPM add-in 10 SP08 Patch 1


3 Pre-Demo Steps & Recommendations

Before a demo make sure you perform the following steps:

a) Logon to your image in your Demo Landscape

b) Make sure the BW system is started on the ABAP / SBO BI machine (see fact sheet).

c) Run the demo from the SBO EPM machine (see fact sheet)

d) On the Remote Desktop:

Click on the BPC NW – Web shortcut in Favorites

Logon with user bpc01 and password sbo123

Ensure that the Environment is set to: EPM10_DEMO_PL

e) Before starting the demo try to Cache the machine as much as possible. Refer to

section 7.1 Caching upon (re)starting a machine of the fact sheet for further

information.

f) Before a demo, make sure you launch the Excel and logon to a model (e.g. Financial).

g) In the current situation with BPC NW 10 SP05 it takes approximately 16 seconds to open the

BPF. First tests with SP06 show 10 seconds. It is recommended to open the Activity

Workspace before the demo and keeping it opened.

h) Please take notice of section 7 Appendix: BPC NW / EPM add-in Performance &

Recommendations of the fact sheet and the remarks on Time to open reports and forms:

Launch Excel and connect to a model just before a demo

When closing a report do not close Excel but stay connected to a Model

Launch Activities from the BPF Activities in EPM Pane (a.k.a. Action Pane). This only

applies to reports and templates within the same sub-activity / workspace.

Note: The script does not mention when to close the report. It is recommended to do

this before moving to the next report or form.

https://wiki.wdf.sap.corp/wiki/display/bobjdemo/Solution+-+EPM





4 Demo Script

4.1 Story flow

The business process in this demo consists of 7 steps with various action items many companies

might use to complete an annual or periodic budget. The steps and processes include:

Initiating a budget

The protagonist in this part of the demo scenario is a Corporate Business Controller responsible

for the corporate budgeting process. After a presentation of the Business Process Flow for the

Annual Budget the controller needs to perform certain action before releasing it to the budget

owners. In this step he will initiate the budget and copy a new version, review global rates, set and

allocate targets.

Revenue and Cost of sales planning

After initiating the budget the business unit manager for Italy starts with the 2nd budget cycle.

After reviewing the procedures and policies he starts by adjusting the sales planning. To meet

target he adds additional sales for a new product in 2010. After wards he checks the version

comparison to review the adjusted figures.

HR Planning

In this step the budget owner for Italy will adjust the HR Planning figures. Before entering

departmental employee information, he reviews the payroll related assumptions. Then he plans

the headcount at an employee level of detail. Many customers plan at a position or job code level

rather than going down to an employee level of detail. BPC can easily facilitate either process.

Expense budgeting

In this step of the budget process the Italy business unit manager will update the entered

expenses. It highlights many of BPC's spreading capabilities which enable budget owners to look

at an annualized amount, and allow users a variety of methods to spread annual amounts into the

months.

Capital Expenditure

In this step the Capital Expenditure budget will be updated. It highlight BPC's capability of

automatically calculating the depreciation expenses by capturing standard asset cost, the asset

life and the depreciation method depending on the asset class. This method allows the budget

administrator to control planned asset expenditures as well as ensure everyone is using consistent

accounting methods throughout the organization.

Balance sheet

This steps highlights BPC's capability of working Balance Sheet Drivers and capturing Balance

Sheet Rollforwards. It shows the impact on the Balance Sheet and that the Cash Flow logic is

inherent in the application, allowing easy, accurate cash flow development.

Consolidation and review

After having completed all the input for the budget this highlights some additional consolidation

tasks before finalizing the budget such as allocating the costs to products based on allocation

drivers.


4.2 Step-by-Step Guide

4.2.1 Initiate Budget & Set Targets

Clicks Screenshots Talking Points

1. On the Demo Image click on the BPC NW – Web

shortcut in Favorites


Ensure that the Environment is set to:

EPM10_DEMO_PL


Ensure that the environment it set to Your Newly

copied Environment as created in the pre-demo steps

Select the Home tab

Select the Start page in the action pane on left



2. In the left-hand menu click on Activities

In the Activities menu select Annual Budget

In the Details window select Overview

Due to the time open the Activity Workspace make sure

you do this before the demo and keep the workspace

open.

In this demo scenario we will look at an Annual Budget process.

Let‟s assume with are currently in October and we are going to

revise the initial version of next year‟s budget for one of the

business units or entities, in this case Italy.

Process-centric

Simplified guidance through a complex process

User acceptance significantly higher because of “guided”

navigation and familiar interfaces

We will do so using an Annual Budget activity we have created

and which is an example of how Planning and Consolidation will

provide you with the ability to embed your specific business

processes within the application.

Planning and Consolidation provides the ability for your

organization to streamline repeatable business processes. These

activities can be configured to give you control & consistency,

while giving users the benefit of being “guided” through the

business process instead of having to search for information or

go through an intensive training course.

3. In the left-hand menu click on Initiate Budget & Set

Targets.

In this scenario the Annual Budget consists of 7 steps or

processes. Users can clearly see the 7 steps of the annual

budget process and work their way through the steps in the

appropriate order.

We will start with initiating the budget and setting target. These

are activities performed at a centralized level – for example by a

controller responsible for the total company budget process.

Before releasing users to begin planning, you need to get the

budget ready. This may include creating a new budget version,

for example.



4. NOTE:

Before the demo make sure you have Excel open and are

connected to the FINANCIAL Model.

You do not need to actually run the copy process

because the data has already been copied.

This step is a discussion point. If you need to show

copying data, you can copy from Budgetv2 to Budgetv3.

Click Create New Budget version

This will open the data manager package in Excel.

Click Next in the first screens of the Copy package

Click on the Add button next to Category Source

Select BudgetV1 from the EPM – Member Selector

Select Member Only from a drop down list

Click on the arrow pointing form left to right

Click Ok

Do the same for Category Destination and select

BudgetV2 as the target.

Note: This step is already performed:

Click on Cancel to close the Data Manager Package.

Return to the Activities in BPC Web

Unified - Easily maintain the integrity of current data

versions while facilitating „what-if‟ scenarios because all data

is stored in a single repository

Familiar and Easy to Use - Creating Versions is very easy

to use

Owned and Managed by Business

Security controls ensure that as a user I can only write to

categories to which I have been given proper authority

Creating new versions is very easy in BPC. Users/administrators,

with appropriate security, can utilize an assistant to walk through

the process. New versions can be seeded based on existing

versions.

For example, let‟s say you need a new version for the budget

because you‟ve already completed one iteration of the budget

process. You want to retain the results of Version 1, but want

users to be able to make adjustments for Version 2.

In this case, you simply want to copy everything from BudgetV1

into BudgetV2.

You could further narrow the selection by selecting specific

Entities to copy. As you can see, this offers a high degree of

flexibility in defining what you want to copy. As you can see,

creating multiple versions of information is quite easy within the

application.

5. Click on Enter Currency Rates in the Excel EPM Pane Talking Point only

Close the report and Return to Activities in BPC Web

Unified - Currencies can be shared for all processes,

including actuals, budget, forecast, etc.

Application Intelligence - BPC delivers the flexibility to

define where currency rates come from: a source system or

service or direct input via an input schedule



Before you begin budgeting for the new version, you need to

collect currency rates. Currency rates can be imported from a

source system, downloaded from a web service, or directly input

in an input schedule, as you see here.

Most customers utilize two rate types: Average & End, although

additional rate types can also be defined for historical rates, etc.

Currency translations happen in real time as users are submitting

or importing data.

6. In the Activities click on Enter Human Capital Rates in

the Excel EPM Pane (HCM Model)

Talking point only

Application Intelligence - Global Rates can be defined and

applied across various business units, etc.

Driver based calculations are completed real-time as

information is being submitted to the application

In addition to currency rates, there are several other types of

global rates you may need to collect before the budget is open for

input. The first set of global rates is for the Human Capital

calculations. Within this input schedule, there are three types of

rates: % of Salary, Cost/Head ($/Head), and FICA Caps. In the

first view, we see the accounts that are calculated based on % of

Salary. Notice the % can vary across business unit and position,

offering a high degree of flexibility in the planning process. In this

case, these rates are controlled globally; however, you also have

the flexibility to allow local overrides, if desired. You will also see

later in the demonstration that end users have the ability to view

the global rates that were entered to better understand the final

budget.



7. Click the button Cost/Head Rates.

Familiar and easy to use - BPC utilizes Excel as a primary

mechanism for data collection, offering the full flexibility of native

Excel

In the second view, you see the accounts that are calculated

based on a cost/head. In this case, the cost/head will be entered

in the Local Currency of each Country, which allows greater

flexibility in defining regional differences. Again, notice the

cost/head can also vary based on position. Employees in a higher

job grade may receive a higher car allowance, for example, than

employees in a lower job grade. Also, some positions/business

units may not give a car allowance, as we see for the North

American companies.

8. Click the button FICA Caps


NOTE: FICA is not applicable for areas outside the US.

Delivered Application Intelligence

Out-of-box ability to allow for caps drives a more accurate,

detailed budget

Allows managers to easily account for frequent modifications

to caps

The final view allows FICA caps to be set. Again, these caps may

not apply to all countries or regions, so users have the flexibility of

defining the cap by business unit and by position. BPC

automatically calculates FICA as salaries change, new

employees are added, etc. As this cap changes from year to year,

it is easy to accommodate changing caps and still maintain

accuracy in the budgeting process.

9. In the Activities click on Enter Standard Capex Rates

the Excel EPM Pane (Capex model)

Talking Point only


Delivered Application Intelligence

Consistent cost assumptions create a more accurate,

realistic budget

Ensure compliance with corporate governances

Allow summary of common assets (Laptops, etc.) to help IT,

Facilities, HR, etc. plan appropriately

Often in a budget cycle, users in different parts of the

organizations make different assumptions. For example,



someone in the sales department plans to purchase 5 new

laptops at 5,000 each, while someone in Finance plans to

purchase 3 laptops at 2,000 each. By creating cost assumptions

for commonly purchased assets, you can ensure all users use the

same cost for equivalent assets. The other benefit is that you can

see the total number of laptops, for example, you expect to

purchase. This information may help IT or procurement negotiate

a better price for the year with preferred vendors, knowing they

can commit to a specified number of laptop purchases.

You may already capture this information somewhere in your

organization, such as a Fixed Asset system. You can easily

import the fixed assets assumptions in from the fixed asset

system as part of an automated process, rather than manually

entering the rates, as you see here.

10. In the the Excel EPM Pane > BPF click on Set Targets

Select the Direct Costs & Net Revenue amounts for

2012

In the EPM ribbon click on Planning and select Weight

Click the radio button next to By Percentage

In the Increase value to Allocate field, Enter 5

Click OK

Click Save Data on the EPM ribbon

Click YES, to send 2 records

Close the report.

Establish a Financial Foundation - Targets help drive

accountability by providing visibility in to required

spending/revenue to achieve company objectives

Unified - Unlike most Performance Management

Applications, targets/strategic plans are held in the same

unified application, making comparisons to budget, forecast,

actuals, etc. seamless

The first step to top down planning is to set the targets. As you

can see, the targets are set at a summarized level, including only

the key items from the Income Statement. We are going to input

targets for BestRun Corporation – the total consolidated entity in

the application, although this exercise could be completed at any

level. The level of detail is completely configurable to your

organization‟s requirements.

As you may recall from the Overview Demo, BPC provides users

the ability to Spread, Trend, and Weight data to assist in the

creation of forecasts or plans. In this case, let‟s say you want to

increase the Revenue & Direct Costs by 5%. You can easily

complete this exercise by using the Weight capability. Also, as we



have discussed, you can use native Excel capability to create

formulas, etc. to calculate values.

11. In the the Excel EPM Pane click on Allocate Targets

Enter 2012 in Year field and click on Next

Enter E00 in Entity field – Important: make sure you

enter in UPPER CASE

Click Finish

Click “OK” when prompted

Click View status in the Data Manager ribbon

In the Package Status windows check the box “Refresh

status every”

When the job status has changed to Succeeded click

Close


Familiar and Easy to Use - Assistant drives users through the

process of running an allocation, offering options, where

applicable

After setting the top level targets, you need to allocate these

down to the individual business units. You will recall that we input

a summarized income statement for the total company. Ideally,

you might like to allocate this to base level accounts, entities,

products, and departments, so users can easily compare

information as they complete the bottoms up budgeting process.

BPC delivers powerful allocation capability, providing a variety of

methods and a very flexible way of defining allocations. In this

case, the user has the ability to pick the entity and time for the

allocation. This allows different users to set targets at different

levels in the organization, then allocate as appropriate. You may

restrict the allocations to only specific users or administrators.

You also have the ability to schedule the allocations to be run on

a regular basis, if desired.

12. In the the Excel EPM Pane click on REPORT- Version

Comparison

Ensure the Context is set to the following value.

Establish a Financial Foundation - Allocation applies across

multiple dimensions, breaking back top down targets to all

dimensions (Account, Product, Department, etc.)



In the EPM Context set the Entity to Italy

Close all reports, keep Excel open, and return to BPC

Web.

After allocating the targets, let‟s return to the Version Comparison

report to see the results of the allocation. Notice the Net Revenue

target was broken down into 3 separate accounts that total the

target we input earlier.

Let‟s change the Entity to Italy. Users with access to only a

specific entity, such as Italy, can see their portion of the allocation

broken into a fine level of detail.


4.2.2 Revenue and Cost of Sales Planning


13. In the Activity workspace click on Revenue & COS

Click on Review Policies & Procedures which will

bring you to the Documents menu

In the right window click on Review Policies &

Procedures to open the PDF document.

Afterwards close the document.

Process-centric - Users have access to internal policies and

procedures. Users confirm that they have reviewed the Policies

and Procedures by completing this step

As the business unit manager for Italy, you are now ready to

begin entering information for BudgetV2. The first thing you may

need to do is review the Policies & Procedures. In this case, the

document is a document that has been posted by an

administrator that includes important information about the

Budget Process. You can view the calendar for important due

dates and review the revenue & expense guidance.

By including this information as part of the Business Process,

managers/administrators can ensure users have reviewed the

Policies & Procedures.

14. Return to the Revenue & CoS workspace by clicking on

the Overview tab

Notes: you may replace the Product 04 used in this step by

the new product you created in the Overview Demo

In the Revenue and CoS workspace click on Enter

Units and Rates

Unified - Power and benefit of a truly unified solution and one

point of maintenance updates everything in the application

As you saw earlier in the overview demo, maintenance changes,

such as the addition of a product line, automatically update

everywhere in the application. There is zero maintenance

required to update input templates and reports. As a user, you

can see there is a new product line available.



15. If you are skipping showing a report against a BW cube

skip to step 26

Before we update the Budget for Revenue & Cost of Sales I might want to view some Sales history that is stored in a BW cube. A powerful feature of the EPM Add-in for reporting is the ability to report against other data sources such as a BW cube. Let‟s create an ad-hoc report to view some sales order history.

16. Note: Reporting against BW cube is only available on LDL.

Add a Blank workbook to Excel

17. Click the Report Layout tab in the EPM Action Pane

Click the drop-down arrow next to the Active Connection

Choose Select Another Connection

Let‟s connect to the BW cube containing sales transaction history



18. Select Connection: BW Sales Cube Click OK

19. Login with: bpc01/sbo123

Security kicks in here to ensure the user has been granted access to this Cube‟s information.

20. In the EPM Excel ribbon. Click Open, Open Server Root Folder

Choose BW Sales Cube Report in the REPORTS\BUDGET folder

Now that we‟re connected to the BW Sales cube. Let‟s open a report displaying data from the cube.



21.

Double-click on Product Group A

This report can be drilled on by double-clicking dimension members.

22. Double-click on Customer Group 1

23. Double-click on Quarter 3



24. In the Context Bar click “Key Figures Sales Revenue” Choose Open Orders

Click Refresh

25. Click the Excel icon in the Windows Task Bar

Click EVDRE S01-REVENUECOS1 to go back to the Sales Forecast Input Schedule

26. Click Input Units button

Note: In the Input Units template do not input data on the

xxxx.TOTAL column else you will get a warning after save

the data.

Select the Jan 2012 cell for Product 04

In the EPM ribbon click on Planning and select Spread

You also see that the appropriate tasks, such as spreading,

trending, and weighting are automatically available in the EPM

Ribbon.

You plan to sell 500 units over the year; however you don‟t know

exactly how they will phase into the months. You could write an

Excel formula to do this, but you also have the ability to Spread

Data in the action pane. BPC provides this capability, such as

spreading, trending, and weighting, in addition to the native

capabilities of Excel.

You enter the amount to spread and the destination. Optionally, you can also enter weights. In this example, let‟s say you expect the seasonality to be the same as the Product 01. Notice BPC automatically generates the appropriate monthly values based on the input.



Type 500 in the Source Value field

Click in the Destination field and click on the select

cells icon.

Highlight January – December for the new Product 04

and press enter

Click in the Weights field and click on the select cells

icon.

Highlight January – December for the Product 01 and

press enter

Click on OK to close the spread dialog box. Note that the cells for January –December are populated with the sales unit values.

27. Click on the Input Rates button

Select the values for Product 01 from Jan till Dec

Right-click, select Paste in to the Product 04 for sales

revenue

In the EPM ribbon click on Planning and select Weight

Type 5 in the By Percentage box

Click OK

In the EPM ribbon click on the drop-down icon on the

Save button and select Save and Refresh Workbook

Data

Click Yes to send confirmation > 84 records will be

written to the database and Close the dialog Box.

Now you are ready to input rates for the new product line.

Let‟s say you expect the rates to be similar to the Product 1, so

you can simply copy and paste the rates into the new product

line.

After entering the rates, you are ready to send data to the

application. As you submit changes, the application automatically

calculates the accounts that are driven by sales units (revenue,

rebates, etc.).



28. After the confirmation click on Expand Workbook in the

EPM ribbon

Click on the View Amounts button

Real-time consolidation Data is automatically calculated,

translated, and consolidated when users submit information

You can now return to the report to see the direct profit for the

new product line, which was automatically calculated by

multiplying the units times the rates.

29. In the EPM Pane on the right, click REPORT – Product

Line KPI’s

In the EPM Context click on USD and select LC from

the member selector.

Go back to USD

Close the worksheet and select “No” when prompted to

save

Click Back to BPF (Action Pane). Click No if prompted to

save changes.

Note: Budget amounts are written in LC, while Targets are

only calculated in USD.

Unified - Changes update all areas of the solution – Minimal

maintenance and no technical expertise required

Familiar and Easy to Use - Excel-based allowing current

production reports to be easily replicated

Real-time Consolidation - Instant currency translation

WITHOUT having to run batch processes

Entering revenue & cost of sales information is part of a typical

planning process, but eventually you need to see the impact of

the modeling exercise in various analysis and production reports.

In this example, you see a budget package report that is broken

into sections for revenue and profitability analysis. Notice that the

new product line automatically appears in every section of the

report. But wait…the direct profit for your new product line is not

the same as what you just saw in the input schedule. As you can

see, we are viewing this information in USD. However, remember

we entered this information in Euro. To view the same report in

Euro, the local currency of Italy, you can change your point of

view to local currency. As you can see, currency was translated

real-time in the application, allowing you the ability to view fully

calculated, translated results immediately after modifying

information.



30. In the EPM Pane click on Report - Version

Comparison

Close Excel. Do not save any changes when prompted.

Return to the Activities in BPC Web.

Real-time Consolidation - Changes to units drive through to the

P&L, Balance Sheet & Cash Flow, allowing real-time what-if

modeling

As you saw in the KPI report, inputting units & Cost of Sales

information for the new product line automatically calculated the

revenue, rebates, materials, etc. However, wouldn‟t a change in

budgeted revenue also impact the balance sheet? Specifically

Accounts Receivable?

Let‟s go back to the Version Comparison report. As you can see,

not only has revenue and the cost of sales accounts updated, but

it has flowed all the way through to Net Income. Even better – you

can see that the Balance Sheet & Cash Flow have automatically

updated based on the change to units & rates, which flowed

through to the Balance Sheet/Cash Flow based on drivers you

will see later in the demonstration. Only BPC can deliver this

powerful, real-time modeling capability in a single, unified

application.


4.2.3 HR Planning


31. In the Activities click on HR Budget.

Click on Review HR Assumptions

Close the Excel Report. Click no when prompted to

save.

Unified - Disparate functions, such as HR Planning, Capital

Planning, etc. are unified in a single application to provide a

superior user experience

Process-centric - Common business processes, such as

HR Planning are packaged and delivered as application

functionality

Before entering departmental employee information, you may

want to review the payroll related assumptions. As you will recall,

these have already been input as global rates, but as a

departmental manager, you have the ability to review the rates to

better understand your final budget.

32. In the EPM Pane click on Enter Employee information

After reviewing the assumptions, you are ready to begin inputting

information for your employees. In this example, you are planning

for headcount at an employee level of detail. Many customers

plan at a position or job code level rather than going down to an

employee level of detail. BPC can easily facilitate either process.

In the first view, you see Exempt (Salaried) employees. As

discussed earlier, this information is typically pulled into BPC from

the payroll system to avoid having to re-key information.

In addition to the information loaded from the payroll system,

managers can also input additional information, such as a

proposed salary increase, promotions, transfers, terminations,

etc.



33. Note: the format of dates to enter depends on your

Regional Settings.

For employee Fabrizio Ciavarra:

select the Percent field and enter 10

Click Yes to the Invalid Percent Increase pop up

message that appears (this is not an error but an Excel

validation)

In the Explanation Field enter “Planned promotion”.

In the Promotion Filed enter 01/01/2012 ( January)

Select the New Position and select “A2-Area Sales

Director” from the drop down box

For employee Danielle Della Casa

select the Transfer Date and enter 4/1/2012 (April)

select General & Administrative as Department

Familiar and Easy to Use - Users are notified instantly when

they exceed a threshold or hit an exception, rather than having to

wait for a validation report

Process-centric - Business Process Menus deliver packaged

application functionality, such as headcount planning

As the manager, you know that Fabrizio Ciavarra was the top

regional sales manager in the business unit. To recognize

Fabrizio‟s efforts, you want to promote him to Area Sales Director

and give him a 10% salary increase. When you enter 10% in the

PCT increase column, you are directed to enter an explanation as

to why you want to exceed the promotion cap corporate has

instituted. As you can see, BPC facilitates cell level validation,

allowing users to be instantly notified when they enter something

incorrectly or trigger an exception. For the promotion, you can

enter the planned promotion date and the new position Fabrizio

will be taking. You also must enter an explanation for the

promotion, due to the salary increase that exceeded the

corporate maximum.

You also may need to transfer an employee out of the

department. You can easily do this by entering a transfer date

and selecting the department to which the employee will transfer.

34. Right click on New Hire 01

In the EPM context menu select EVDRE: Insert Member

Select EM_NH05 as Employee

Select HP0111 (B2 – Regional Sales Manager) as

Position

Click OK

Enter 6/1/2012 as the start date (June)

Enter 75000 as Annual Salary

In the EPM ribbon click Save Data > xx data records

and x comments are written to the database

Click Yes to the pop-up box

Familiar and Easy to Use - Users can easily add additional

employees by inserting new lines, rather than having a long list of

available positions to fill

After adjusting existing Exempt employees, you also may need to

add additional headcount. In many applications, this could be a

painful exercise because it can be difficult to get a new employee

to show up in the list. However, BPC allows users to insert new

rows, in this case representing a new employee and a pre-

defined position. The positions could also be free form text entry,

if desired.

Let‟s say you are planning for a regional expansion and need a

new Regional Sales Manager to support this expansion. You

select Regional Sales manager for my new employee and input a



Click Close to the successful send confirmation box

(Refresh Schedule Results)

Warning: Measured times ~ 60 seconds with default

script logic (similar to 7.5)

start date, say June 1, 2010. You can also enter salary

information for this new employee. As you can see, the input

schedule allows users to dynamically add new lines without

cluttering the schedule with a predefined list of open positions.

35. In the EPM Pane click on REPORT – Personal

Expenses

Real-time Consolidation - Real-time calculation, currency

translation, and consolidation WITHOUT having to run a batch

process

As we saw earlier with the revenue schedule, when information is

submitted to the application, it automatically calculates results.

For example, we have just updated annual salaries, added

employees, etc. How does this drive all the tax and benefit

accounts we reviewed earlier? As you can see,

headcount/salaries are driving a variety of headcount related

expenses, such as benefits, payroll taxes, etc., allowing you to

view fully burdened headcount expenses utilizing the global

assumptions we reviewed earlier. For the new employee you

added, you see that all the associated payroll lines have

automatically been calculated, allowing us to review total

departmental personnel expense.

36. In the EPM Pane click on REPORT- Employee Trend

Close Excel. Click No when prompted to save.

Return to the Activities in BPC Web

You may also want to review an Employee Trend to see how

Personnel Expense looks over time. Notice Danielle Della Casa

drops off in April, as a result of the transfer you entered earlier.


4.2.4 Expense Planning


37. Line Item Details have not been implemented at this time

In the Activities click on Expense Budget.

38. In the Activity Workspace click on Enter Expenses

For Supplies: enter 8%in the % Inc / Dec and select 4-

4-5 as the New Method

For Insurance: delete the % Inc / Dec value and Enter

300000 in the Annual Input

Click on Save Data in the EPM Ribbon

Line Item Details have not been implemented at this time

Establish a Financial Foundation

BPC delivers financial intelligence, allowing users to quickly

select methods, such as last year, growth, even, 4-4-5, etc.

Users/administrators can easily add additional methods to

the application

The next step in the budget process is entering expenses. Many

customers prefer to look at an annualized amount, and allow

users a variety of methods to spread annual amounts into the

months.

On the far left, you can see that last year‟s actual (or forecast) is

supplied as a basis. You can elect to increase/decrease last

year‟s amount by a percentage or input a new annual amount.

For example, let‟s say you plan to increase supplies by 8% and

want to spread that into the months based on last year actual. In

the list of methods, you can see a variety of provided methods

such as 4-4-5, calendar days, work days, even, growth and

decline.

You also just received a new insurance quote of 300,000 for next

year and need to update this line, too.

39. In the EPM Pane click on Report - Expense

Comparison

Real-time Consolidation

Modifications to data are immediately available for review,



Click USD in Current View (Action Pane)

Select LC

Click OK

Change back to USD

Click No when prompted to save changes

Close the Excel Report

due to SAP‟s real-time calculation, currency translation, and

consolidation

Users no longer have to wait for lengthy batch process to

run to review results

After inputting expenses, you want to review some reports before

moving on to the next step. The expense comparison report

demonstrates the real-time calculation & consolidation of the

application. For example, you are currently viewing USD. If you

change your view to Local Currency, you can clearly see the

impact of the changes made in the prior step.

After completing the expense section, you are ready to move on

to the Capital Expenditure budget.


4.2.5 Capital Expenditure Planning


40. In the Activities click on Capital Expenditure Budget.

Click on Review Capex Assumptions

Close the Report. Click no when prompted to save.

Familiar and Easy to Use - Users can review corporate/global

assumptions to better understand the final budget

Earlier, we input global assumptions for standard capital

expenditures. In this case, the budget manager does not have the

ability to change the assumptions, but may want to review them

to better understand the budget.

41. In the EPM Pane click on Enter Capital Expenditures

Enter 1 in January for quantity – PC Replacement >

select Enter

Process-centric

BPC delivers packaged application functionality, such as

capital expenditure planning

Rapid deployment using best practice methodologies

packaged in business process menus

In addition to capturing standard asset cost, BPC also stores

asset life and depreciation method depending on the asset class.

The depreciation expense is then calculated automatically. This

method allows the budget administrator to control planned asset

expenditures as well as ensure everyone is using consistent

accounting methods throughout the organization.

You plan to hire a new employee and can see that the PC for a

new employee has already been entered into the template.



Furthermore, you know that you plan to promote one of your staff.

Consequently, you would like to replace his desktop with a laptop

and his desk with new desk. You also have one additional laptop

you need to purchase for another employee.

The PC replacement is already in the schedule, so you can

simply enter a quantity of 1 in January.

42. Right click on PC-Replacement

Select Insert Member

Select “ID” in the View Members by box

Select PR0301 (Facility Repair) as Project

Select AS003 (Conference Tables) as Asset

Select Refresh Data from the EPM Add-in (to retrieve

the Standard Costs)

In February, Enter 5 for quantity.

In the EPM add-in click on Save Data

Confirm that 129 data items will be send; after saving

close the confirmation box.

If you need to add a new asset (or project in Other Assets),

simply right click to insert a new member, then select the project

and the asset. The selected asset drives the life assumptions and

standard costs. These are controlled centrally by an

administrator, For example, let‟s say you plan to repair

conference tables in February,. By entering to quantity in

February the standard expenditure will be calculated as well as

the monthly depreciation and therefor the cash out flow. As we

have discussed, BPC calculates depreciation, PPE balance, etc.

when the data is submitted, so users can immediately see the

impact of this change on the balance sheet.

43. In the EPM Pane click on REPORT - CapEx by Project

After completing the capex input, you may want to review a few

reports before moving on in the business process. The first report

summarizes capital expenditures by project. This allows you to

easily identify which projects are consuming budget dollars.



44. In the EPM Pane click on REPORT - CapEx by Asset

Class.

Establish a Financial Foundation - Both existing and new

assets easily reported to enable better decisions about where to

spend scarce resources

A second report shows total capital balances for both existing and

new assets. This analysis is important in the event we need to cut

capital expenditures as part of the budgeting process. You cannot

reduce existing asset balances, but may be able to forego

purchasing new assets. The existing asset balances are typically

imported from a fixed assets system.

45. In the EPM Pane click on REPORT - Version

Comparison

Note: at this moment there is an issue with the Balance

Sheet and Cash Flow logic. To be investigated.

Unified - Updates automatically update the balance sheet & cash

flow and Real-time consolidation provides immediate analysis

capability

Finally, before moving to the Balance Sheet & Cash Flow plan,

you may want to better understand the impact of the changes we

have made. Returning to the version comparison report, you see

the balance sheet & cash flow continue to update based on

detailed changes, such as capex.

Because BPC offers a unified, real-time application, users can

immediately consolidated results across all financials, including

the P&L, Balance Sheet, & Cash Flow.


4.2.6 Balance Sheet & Cash Flow Budget


46. In the Activities click on Capital Expenditure Budget.

Click on Enter Balance Sheet Drivers

Click on Inv Turns button to open the Inventory Turns

sheet.

Process-centric

Global business calculations are handled centrally in the

application rather than by individual users in the spreadsheet

Application intelligence is packaged to deliver best practice

approach to driver based Balance Sheet planning

As we have already seen, as users update units, costs,

expenses, etc. the results flow through not only the P&L, but also

the Balance Sheet & Cash Flow. How are these updates made

possible? We have already reviewed several examples of driver

based planning, including units * rates and HR drivers for payroll

taxes, benefits, etc. BPC can also leverage drivers for Balance

Sheet planning. Many customers utilize DSO & DPO

assumptions, for example, to drive Accounts Receivable &

Accounts Payable on the Balance Sheet. As you can see, the

assumption is broken down into two components: a target &

overdue assumption. Inventory Turns may also be input to drive

Inventory balances. The idea is to identify known relationships

between P&L accounts & the Balance Sheet so users don‟t have

to manually input every line of the Balance Sheet. This also helps

drive consistency in the process; if revenue changes, Accounts

Receivable will change appropriately without requiring a user to

remember to manually make this change.



47. In the EPM Pane click on Balance Sheet Rollforwards

Change Common Stock Buyback in June to -5550

Click Save Data (EPM add-in)

Click Yes to Send Confirmation: 1 data record will be

sent

Close the Save Result dialog box

In addition to Balance Sheet Drivers, it is also often important to

capture Balance Sheet Rollforwards. For example, you may know

we anticipate issuing or buying back common stock, and need to

plan accordingly. You can plan this level of detail using the

Rollforward Schedule.

48. In the EPM Pane click on REPORT - Balance Sheet

Note: there is an issue with the logic and Balance Sheet

impact. Avoid focusing on this.

After making the necessary adjustments to the balance sheet

drivers & rollforwards, you are ready to review the Balance Sheet.

You can see the impact of all the changes you have made to

BudgetV2 reflected in this comparison report.



49. In the EPM Pane click on Report - Cash Flow

Establish a Financial Foundation - Cash Flow logic inherent in

the application, allowing easy, accurate cash flow development

You also may want to review the Cash Flow statement at this

point. The Cash Flow is derived by measuring changes on the

Balance Sheet. You can immediately see the result of the cash

flow based on changes we have been making to BudgetV2.

50. In the EPM Pane click on REPORT - Version

Comparison

Finally, we return to the Version Comparison report, where we

started the demonstration today. Here, you can see a summary of

the financial impact of your changes to the BudgetV2.


4.2.7 Consolidation & Review


51. In the Activities click on Consolidation & Review.

Click on Click Report – Product Profitability

Unified - The same business rules can be leveraged anywhere in

the application. Allocations used in Consolidation can also be

leveraged for Budget or Forecast

After completing all the input for the budget, you may have some

additional consolidation tasks to complete before finalizing the

budget. For example, you collected input for expenses by entity

and department, but didn‟t specify the product line. However, one

of the required outputs from the budget process is the ability to

review product profitability reports. In order to accomplish this

objective, you will need to allocate the expenses to the individual

product lines. You saw an example of allocations earlier in the

demonstration when you allocated top level targets to the

business units. This time, you want to allocate expenses to

individual product lines, based on each product line‟s contribution

to revenue. In other words, if the X100 represents 30% of total

revenue, the X100 will receive 30% of the total expenses.

52. In the EPM Pane on the right, click on Process Allocations

In the Run Package dialog windows enter the values

EXACTLY (Upper Case) as follows:

Category: BUDGETV2

Entity: E0202

You process the allocation using the same method for the top

down allocation. When running the allocation, you will select the

Category, Entity, and Time periods. Remember, due to the unified

application, you have the ability to apply this same allocation

definition to actual, if desired.



Time: 2012

(click Next between every step and end with Finish)

Click on View Status and check the Refresh every 5

seconds option.

Once finished (60 – 90 sec) close the View Status

window to return to the Product Profitability Report.

53. Note: when opening the data manager package the EPM

context settings change. Therefore either:

Close the report and re-open it, or

Change the context to – see screenshot on the right

In the EPM ribbon click on refresh

In the EPM Context click on the AUDITP dimension and

click on Select Other Members

In the Member Selector expand the TotWithAlloc node

and Select TotWithAdj

Click OK and click Refresh in the EPM ribbon

Click on TotWithAdj in the EPM Context

Select “ProdAlloc” under TotWithAlloc node and click

Refresh in the EPM ribbon

Change Current View to TotWithAlloc and click

Refresh in the EPM ribbon.

Once the allocation has successfully run, you can review the

results. As you can see, the operating expenses have now been

fully allocated to the product lines. But what if you need to see

what the Income Statement looked like before we ran the

allocation? Is it too late to do this?

BPC separates allocation results into separate buckets so users

don‟t lose visibility into what was allocated. For example, you can

easily select the TotWithAdj data source to view pre-allocation

results. If you want to see what was recorded as part of the

allocation, you can change to the Product Allocation data source.

To review the post-allocation values, you return to TotWithAlloc.

This methodology of splitting allocated results into separate

buckets keeps complex allocations clean and gives users a better

understanding of allocated results.



54. In the EPM Pane click on Report – Allocated

Expenses

Close Excel. Click No if prompted to save changes.

Another report that is helpful is the Allocation Verification report.

This report compares the allocation result that is stored in the

database with the result calculated in Excel. This is an easy way

to check the results of the allocation to ensure everything

allocated correctly.

55. Click Report – Budget Package in the Action Pane within Excel

In the EPM ribbon click Book Publication, Publish

Books. Walk thru the Book Publish Wizards options.

The Wizard will output a Book containing the 4 reports

shown here.

The report package has multiple pages within

it. As I scroll across the different reports, I

can see we have an income statement,

balance sheet and full cash flow. As we moved

through the business process flow, we

completed all the tasks required to generate a

full set of financial statements for each entity,

and on a consolidated basis. This report

package would typically be published to an

html environment, where it is archived and

available to a wider audience, including

reporting entity, regional and corporate

managers.



56. To run the Wizard choose Publish Now, Next

57. Choose Publish to PDF format. Choose Single PDF



58. Give the Book a file name.

Publish the Book to the Public folder

Enter a filename -

Italy – 2013 Budget v2 Report Package

59. Choose BUDGET PACKAGE.xlt

After the wizard evaluates the packaging template, check the Budget Package



60. Click Next on the Summary

61. The Wizard takes about 45-50 seconds to process & output the Book.

Close Excel & return to the BPF



62. Click the Home tab in BPC Web

Click Library in the left navigation pane

Click on the Public folder

Click the on the Italy 2012 – Budget v2 Report Package book to open it

Note: If you did not run the wizard you can still show the audience a book. In the Public folder you will find the book – Great Britain 2012 – Budget v2 Report Package.

The book for Great Britain was also saved as a Favorite & appears on the Start Page.

Here you can see the Book has been published

to the library.

63. Talking point only: Work Status has not been implemented

in the model. Do not launch the Set Work Status.

Workflow - Work Status controls data and allows

locking/approval of data, providing strict control over data

After completing the allocations, you may want to view the Budget

Package, distribute reports, etc., similar to what you saw in the

overview demo. You also may need to update the status of the

budget to Submitted, locking the data from further revision. This

also signifies to the European manager that the data for Italy has

been finalized and is ready for review/approval. After updating the

status and completing the step, this business process is finished

for this region.


5 Appendix

5.1 Document Update Notes

Date Notes

11 March 2012 Initial version of the script

6 April 2012 Demo & script updated for reporting against BW cube, Book publishing, and other minor fixes

24 April 2012 Adjusted pre-demo steps and recommendations. Replace “open in Activities” by “open from EPM Pane” when the template or form is in the same sub-step.

BPC 10 NW Annual Plan Scenario 8151

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Transcript of BPC 10 NW Annual Plan Scenario 8151