openSAP SAP S/4HANA Embedded Analytics Week 3 Unit 1

00:00:05 Hello, and welcome to unit one with the topic Embedded Analytics for Finance.

00:00:10 My name is Thomas Lauff, and I'm a product owner for S/4HANA Finance in the area of analytics.

00:00:17 I present to you today the new multi-dimension credit reporting app, Year to Date Balances,

00:00:23 the new, state-of-the-art app to calculate balances on any dimension of the universal journal entry.

00:00:31 This app was initially shipped with cloud edition and will be also available with on-premise edition

00:00:42 The Year-to-Date Balances app is an internal accounting report

00:00:46 showing the debit and credit balances of all general ledger accounts at a point in time.

00:00:52 It is typically used to check that total debits and total credits match each other.

00:00:59 With this app, you can display balances for certain dimensions of the universal journal entry

00:01:04 for a specific fiscal year. You can choose any beginning and any end date

00:01:10 within a fiscal year to calculate those balances. Let's have a look at the features of this app.

00:01:20 I will demo this directly in the system. The Year-to-Date Balance app is like the Trial Balance app

00:01:28 assigned to the GL account business role. It belongs to the reporting business catalog.

00:01:34 After opening this app, via a click on the Fiori launchpad, you see that some fields of the smart filter bar are prefilled.

00:01:45 Like the ledger, with the leading ledger information. The ledger fiscal year, with the current fiscal year.

00:01:51 And all closed fiscal year period. But you have also other options to select timeframes,

00:01:58 like the posting date or the fiscal quarter. My example shows a year-to-date balance scenario.

00:02:09 For this, I remove first of all the information of the fiscal period field

00:02:14 and choose then, via the posting date field and the defined condition, the first day of the fiscal year until today.

00:02:41 I'm only interested in the results of the company code 1010. The results in company code currency

00:02:53 are now shown grouped by company code and GL account. System shown now, the debit amount, the credit amount,

00:03:15 and amount in company code currency per default. If you are interested in a hierarchy representation,

00:03:30 you can choose via right-mouse click on the GL account dimension the hierarchy.

00:03:36 In my example, I choose the hierarchy 1110. Data is shown now in hierarchy.

00:03:52 Initially, you see the top level of the hierarchy. If you click on the plus symbol,

00:03:59 the branches of that node will be displayed. Via clicking on the right-mouse click,

00:04:08 you can disable this hierarchy again. Via a click on the navigation panel, you see the complete list

00:04:26 of the supported dimensions and measures. As I have filtered the result list by company code,

00:04:33 I remove this from the result list. Now I'm interested in different currencies.

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00:04:43 I want to add the global currency in my business scenario. For this, I open the measures tree

00:04:53 and add the amounts in global currency. Now you can see the results of the amount in company currency,

00:05:08 in addition to the amounts in global currency. In comparison to the Year-to-Date Balance app,

00:05:24 the Trial Balance app calculates, in addition to debt, the opening and accumulated balances.

00:05:33 Another difference is that the Trial Balance app supports also gross over year selection.

00:05:43 In my business example, I'm especially interested in certain bank accounts.

00:05:49 For this, I'm entering in the free text here the bank string and select my GL accounts

00:05:58 I'm interested in for my representation. Now, only the values for my bank accounts are shown.

00:06:16 In my navigation panel, I can see that this app supports

00:06:21 a lot of dimensions and measures. All of them you can use to calculate balances in any combination.

00:06:41 By selecting the period dimension, you can see a breakdown by GL account and period.

00:07:25 In my next step, I will remove all measures apart from the amount in global currency.

00:07:55 Via the graphical display functionality, you can see how the amounts are distributed

00:08:02 on the periods in a graphical way. You have the option to choose different chart types

00:08:21 to represent your measures. The Query Information tab provides you

00:08:29 some technical information and variables and filters that you have applied.

00:08:46 Via right-mouse click on a measure, you can define additional rules to specify

00:08:51 which values should be displayed. For example, you can select the top-10 amounts in global currency.

00:09:33 With the manage exception features, you can define rules to graphically display measures

00:09:40 according to business needs. For example, you can define a rule to display values above $10,000 as green

00:09:51 and below $10,000 as red. Now, the values are shown according to your alert rules in a colored way.

00:10:25 You can also create snapshot via download to an Excel or a PDF file.

00:10:35 All filters and defined rules are used to create this snapshot. In your first page you see some technical information,

00:10:45 and as you can see here, exactly the same settings that you applied

00:10:53 as a rule are taken over in the PDF file. In this unit, you learned about the capabilities

00:11:00 of the new app, Year-to-Date Balances. The key feature of this app is to show the debit and credit amount in the respective currency

00:11:14 for a chosen combination of dimensions of the selected timeframe. Split balances, for example, by company code and segment,

00:11:22 profit center, cost center, and so on. This app support also different hierarchies,

00:11:30 like the hierarchy of the GL account or, for example, the profit-center hierarchy.

00:11:35 You can show here the value in all currencies of the system, displaying balances according to different time dimension,

00:11:44 depending on how fine granularly you want to show the data. On this app, depending on your authorization,

00:11:52 you can, for example, navigate also to other apps. And last but not least, create snapshot,

00:12:01 the results to Excel or PDF. And with that, I would like to finish this unit.

00:12:08 Year-to Date-Balance is a performance- optimized report to calculate debit and credit balances

00:12:15 on any dimension in finance in any currency. Thank you very much for the participation.

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Week 3 Unit 2

00:00:05 Hello, and welcome to unit two in course week three. I'll present you now the topic,

00:00:11 embedded analytics examples in procurement. My name is Christine Hofmann.

00:00:15 I'm part of the engineering organization of S/4HANA sourcing and procurement,

00:00:20 responsible for the topic analytics. So, I'll first show you some examples on slides,

00:00:26 and then I'll go into the system and do a demo. So let's start.

00:00:31 So, I think you might know this slide already, right? So these are basically the Fiori artifacts

00:00:36 that are provided to show analytical content. So, we have smart business KPIs,

00:00:42 we have overview pages, we have analytical list pages,

00:00:46 we have in-app analytics and also machine learning capabilities, we have multidimensional reports,

00:00:52 and we have the integration capability to SAP Analytics Cloud. Be it either as a predefined content

00:00:58 in SAP Analytics Cloud enterprise edition, or be it embedded in S/4 directly.

00:01:03 So in the area of procurement, we adopt all of these technologies in our portfolio.

00:01:08 So we have examples for all of these areas, and I'll show you now what that looks like.

00:01:14 So let's start with the smart business KPIs. So, you know, smart business KPIs are analytical apps

00:01:19 that access the database tables of S/4 and show then in real time the analytical content

00:01:27 visualized in various chart types that are available, and also across multiple input parameters and filters and dimensions.

00:01:38 So, we predefine the chart types and the input parameters, but, of course, the user has the capability

00:01:46 to adopt and change according to his needs or her needs. So change the chart type,

00:01:53 filtering based on responsibility, be it on a specific dimension like material group or supplier,

00:02:00 and then save this as their own tile to the Fiori launchpad. And then I have the real dataset that is, you know,

00:02:05 according to my needs. So looking at the coverage in procurement,

00:02:09 you'll see in bold, you know, almost, I would say all business objects that we offer in procurement,

00:02:15 we have KPIs also for those. So starting on the left corner, upper corner,

00:02:21 you see that we have, I would say contracts.

00:02:25 So like typical KPI for contract consumption off contract spend,

00:02:29 then we continue with purchase order, scheduling agreement, and RFQs,

00:02:33 with overdue purchase order items. Then the purchase order spend report.

00:02:39 Continuing with invoices, where we also have examples for non-managed spend, our invoices without a purchase order reference.

00:02:48 Then we continue with, you know, KPIs going across procurement documents.

00:02:54 Then we also have the supplier evaluation capabilities that you see here. Hard facts that are measured and scored in real time,

00:03:03 showing up in operational supplier evaluation and also including questionnaires

00:03:08 and user-defined criteria, going into an overall supplier evaluation.

00:03:13 I will show that also later on in the system. And on, on the right-hand side,

00:03:17 you see also examples for purchase requisitions. This is maybe also to, I would say,

00:03:21 monitor the efficiency of your procurement organization, saying what kind of workflow approval cycle times I have, what is the average.

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00:03:32 What is the cycle time between purchase requisition and purchase order until it's really sent out to the supplier?

00:03:38 Or I measure also higher or lower touch rates for my purchase requisition. And finally, last but not least,

00:03:45 we also offer analytical capabilities for the central procurement,

00:03:50 like the contract consumption or the global spend, in case we have a central procurement solution in place.

00:03:56 Then move on to the next examples. So, these are in the area of analytical list pages.

00:04:03 So where the smart business KPIs are more, you know, I would say on a strategic level,

00:04:08 aggregating across various dimensions. Here in the analytical list pages,

00:04:13 I really look into the items. I want to monitor my items.

00:04:18 And you see when you look at the list that we cover almost all procurement documents, if not all, that are existing,

00:04:27 in order to monitor if I have a business-critical situation. And we're doing this by buying specific procurement type.

00:04:37 So let's say in the area of purchase order items, I monitor there, do I have overdue items

00:04:46 which have maybe not been delivered? Or in the area of contracts I look whether there's a close contract consumption

00:04:55 that I want to resolve. Or in purchase requisitions is maybe not even a follow on document created,

00:05:03 but it's close to the desired delivery date. So tailored to the specific needs

00:05:10 of that single document, I would say, you can resolve those and see those in these ALP apps.

00:05:18 You see, we have a table result below, but in the middle section,

00:05:22 this is a chart section and also on top you have a visual filter.

00:05:27 And that is a little bit easier navigation. You can click on a specific pie chart section,

00:05:33 and then this, of course, I would say influences the chart section

00:05:38 as well as the table result. So that is a little bit another navigation than using F4 helps.

00:05:46 All right, so these analytical list pages in the area of procurement. Then in the middle, you see the in-app help.

00:05:51 So where we have enabled this, for example, in the supplier object page,

00:05:56 where we not only show the master data details like generic data, address data, banking information,

00:06:03 what kind of materials are delivered. So also analytical content is displayed in this object page.

00:06:10 Be it purchase order spend trend, supplier evaluation scores,

00:06:14 off-contract spend, or the requisition item types, is that a supplier that has mainly free texts items against it?

00:06:22 So that is the in-app analytics. Then on the right-hand side,

00:06:25 you see the procurement overview page, right, where we have multiple cards

00:06:30 Looking at transactional data, but also analytical data. And then these are a little bit bigger, right,

00:06:37 than the Fiori tiles in the Fiori launchpad. So you would click on the card

00:06:42 and then you will be navigated to the underlying KPI. So you could see immediately

00:06:46 if there's maybe a drop in supplier relation score that you want to evaluate, and then you would click on that card

00:06:53 and you'll be navigated to the underlying KPI. And of course, also the beauty here,

00:06:57 is in the procurement overview page, is that you can provide a filter on top.

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00:07:02 And then all cards react on that specific filter. For instance, if you are responsible for a specific material group

00:07:10 and then all cards react on this. Alright, then move ahead to the SAP Analytics Cloud portfolio.

00:07:16 So first, here you see examples, what we deliver is predefined content

00:07:21 in SAP Analytics Cloud, enterprise edition. So if you have an SAP Analytics Cloud solution in place,

00:07:29 and you want to enable this predefined content, you connect it to your SAP system,

00:07:35 and then you would see the analytical content visualized as user stories in your SAC solution.

00:07:42 So here, for example, for purchasing spend, service spend, off-contract spend.

00:07:48 Also central procurement, where we have the contract consumption. Another example, though,

00:07:54 is that it's not in an enterprise standalone edition, but it is embedded in S/4.

00:08:00 So when the user logs into the S/4 system, in his Fiori launchpad he would see a tile

00:08:07 called Purchasing Spend Dashboard. He would click on that tile and then embed it in S/4.

00:08:14 The user would see the analytical visualization of SAP Analytics Cloud. So basically, predefined charts

00:08:23 for purchase order spend, and all next to each other with a global filter on top as well,

00:08:30 and also with filtering capabilities by chart, and that is embedded in your S/4.

00:08:37 So, there is no separate browser window or no, you know, other solution that you have to go to.

00:08:42 It's embedded in S/4. So that's out of the box, I would say,

00:08:47 available for S/4HANA cloud customers, for S/4HANA on premise.

00:08:52 That would mean that the S/4HANA on-premise customers would have to have a license for SAP Analytics Cloud

00:08:57 in order to connect SAP Analytics Cloud to your S/4 on premise. And then there are technical capabilities to also visualize

00:09:05 the SAP Analytics Cloud user stories in S/4 on premise. All right.

00:09:12 So those were the examples on slides that I wanted to give you. Now I want to go into the system and show you directly,

00:09:19 based on an example from supplier evaluation, what KPIs would look like.

00:09:24 So, what kind of drill-down capabilities exist, what kind of cross navigation between KPIs are there,

00:09:32 and also what I would say insight to action capabilities exist when going from a KPI to a transactional app.

00:09:41 All right, then let's go into the system. All right, so what you see here is an S/4 system.

00:09:48 So I logged in as a purchaser, and based on the role, I have the business catalog groups that you see here

00:09:55 and I have scrolled already to the business catalog for supplier evaluation.

00:10:01 So, first there are some Fiori apps related to supplier evaluation that, you know, you need in order to do a questionnaire.

00:10:09 So that's more the soft facts. And then we have some transactional apps

00:10:12 related to weighting and scoring, to adjust the score, to persist the score,

00:10:17 to create your own criteria for supplier evaluation, and also the output. And what you see here on the, on the bottom line,

00:10:24 on the second line, is really the smart business KPIs. So we have here, the comparison visualization.

00:10:32 You see here, they have by time, by quantity, by quality inspection lot,

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00:10:36 by quality notification, by price, ending up in the operational supplier evaluation.

00:10:43 And the customer can define their own user defined criteria to influence the overall supplier evaluation score,

00:10:50 together with the questionnaire score. And you see also here an example of what I said before.

00:10:56 So users can create their own tile and assign it then to the business catalog group.

00:11:02 So I did that for the operation and supplier evaluation because I picked some suppliers before already.

00:11:11 Let's see, let me see here. Exactly.

00:11:14 Some suppliers, these are default input parameters, like currency and the timeframe for which I want to calculate my scores.

00:11:22 So you see here, on the right-hand side, the measures of the simple criteria.

00:11:28 And here on the left-hand side, you see the dimensions by which you can, you know,

00:11:33 evaluate these supplier evaluation scores. So I select this, you see the single criteria,

00:11:40 again price, time variance, quantity variance, inspection lot, and quality notifications.

00:11:46 And also what kind of, I would say, number of purchase order items and POs are created against that supplier.

00:11:52 So to also see the relevance or significance that I have with that supplier. And also if you see something alarming,

00:12:00 maybe a low score that you want to evaluate and want to see, okay, why it happened, for instance, click on the supplier,

00:12:09 and then you can drill down into another view. Say it, for instance, by material group.

00:12:15 So if you want to see, hmm, was that now an overall score? Okay, but what is it by material group?

00:12:21 Is there maybe a drop in a specific material group? Or how is the score, you know, behaving,

00:12:27 I would say, across the material groups. All right, so that is one opportunity that you have.

00:12:33 Another opportunity, for instance, if you want to see a trendline.

00:12:37 So you will see, okay, was there a change across the months? Was it maybe a drop?

00:12:42 Or it was lower than last year or last month. Then you would see it here the trend, you know.

00:12:48 So that means, in that system, we have data since April this year.

00:12:53 We evaluate the purchase orders and goods received that are existing in the system,

00:12:58 and we see and compare purchase order delivery date, for instance, with the goods received date,

00:13:04 when looking here at the time variance score, which has a huge drop.

00:13:09 So then, I would say maybe let's evaluate and have a closer look a little bit at that specific KPI.

00:13:15 The other ones are there, I would say, on a similar line and not a huge drop, but let's see what happened in time variance, you know.

00:13:23 So then I click on that, Show Mini Tiles,

00:13:30 to take over the filtering that I have done already here for my further evaluation.

00:13:36 So let's go into the Supplier Evaluation by Time now. So I switched the KPI, took over the input parameters that were before already in place.

00:13:48 Plus also the selection that I have done within the previous app. So I see then here again, the measures,

00:13:55 the time variances that you see, and also the score, which is pretty low,

00:14:02 and a variance here is a minus, which means that obviously it has been delivered earlier than actually requested.

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00:14:11 So again, go here into the document view, for instance. And here, again, you see then even more details.

00:14:18 You see by purchase order and by purchase order item, what kind of score this purchase order item, you know,

00:14:26 has contributed to the overall score of that. And that is really to identify patterns

00:14:34 in my purchase orders, be it across materials, or be it, you know, for a specific supplier that I want to evaluate.

00:14:42 So I see here what causes that lower score. So, for instance, I click here,

00:14:48 but I want not to do any further drill-down. No, I would like to see the purchase order you know, for that specific item.

00:14:57 In order to see some more details, what was it, that item, what material was it?

00:15:05 Can I maybe get some more information out of the purchase order? And can trigger some action there by contacting the supplier, or things like that.

00:15:13 So you go directly, taking over the selection from the KPI and you see then the detail of the items,

00:15:20 what kinds of materials it was, and that you see. Okay.

00:15:25 So we can then also navigate to the purchase order header here. And what I also wanted to show you here, as an example,

00:15:33 what I told you before that we have this embedded analytics

00:15:38 in our supplier object page, for instance. What I said before, this is the usual,

00:15:43 I would say master data, you know, like for the supplier, be it general information, company data, bank account,

00:15:50 materials that the supplier's delivering to, what kind of purchasing organizations are associated with this.

00:15:59 And then, also I have analytical capabilities here showing the purchasing spend,

00:16:06 the trend that, you know, since June was ongoing to this year. And then we have also other capabilities here,

00:16:19 like purchase contracts, we see here, that almost all of the purchase orders were not posted against the contract.

00:16:29 This is also something you might want to evaluate. What kind of supplier invoices

00:16:33 with what kind of amount have been posted against this supplier. And also some evaluation scores, we see here the item times,

00:16:44 it took a couple of seconds to come up. So this is an example for that embedded analytics.

00:16:51 If you want to have a cross view of your supplier into the specific areas that you see here.

00:16:58 All right. And then you can navigate back from where you have been.

00:17:06 Starting your analysis on that is a KPI again. So, going to the Home screen again.

00:17:13 So yeah, that was an example on how you do a drill down in KPIs,

00:17:19 how you can, you know, I would say drill down within a KPI by, you know,

00:17:24 selecting a thing and taking over to the next dimension. Taking over even to another KPI this filtering to further analyze the details.

00:17:35 And then can also go to the transactional apps. All right, okay.

00:17:41 So these were the exploration capabilities. So let's also have a look at the Purchasing Spend Dashboard

00:17:47 that I showed you before on the slides. So yeah, as I said,

00:17:57 we have embedded SAC capabilities. So that's exactly that embedded SAC content

00:18:04 that is predefined with, you know, having KPIs on top. What is my purchase order spend by quarter?

00:18:12 What is, you know, in the trend line? What is my details in the various, you know, months,

00:18:19 also by supplier, by the specific dimension? And also seeing what it was last year

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00:18:25 in order to do a comparison. You can also go for instance, to the next section for details,

00:18:32 and can do there also linked analysis if I want to see, okay, what is my purchase order net amount for trading materials?

00:18:41 Who's delivering trading materials? And then also the other charts would react accordingly.

00:18:47 All right. Okay, so yeah,

00:18:50 not only purchasing spend, but also off-contract spend we analyze here,

00:18:54 or compliance with, you know, delivery that you have maintained in the purchase order,

00:19:02 but not, you know, if used for the supplier master. All right, so that is what I wanted to show you in the system.

00:19:11 So let's go back to the slides. So, you have seen the examples.

00:19:19 How we visualize supplier relation content using smart business KPIs, doing the drill-down between the KPIs,

00:19:26 and also embedded analytics in supplier object page, as well as the purchasing spend dashboard.

00:19:34 So let's come to my last slide. So what are the key takeaways,

00:19:39 what I want you to take out of the session? So you've seen the coverage

00:19:45 of analytical capabilities in the area of procurement, real-time KPIs,

00:19:50 we monitor a business critical situation with analytical list pages. We offer cross navigation between analytical apps and transactional apps.

00:19:59 We offer SAP Analytics Cloud content, be it in the enterprise edition or embedded.

00:20:04 And also, another topic that we have not talked about so far is that we also offer, technically,

00:20:11 a performance optimization when defining so- called reporting currencies. Then during runtime, the purchase documents,

00:20:21 like purchase orders, are already converted into that reporting currency so that we save the currency conversion time

00:20:30 during the execution of the KPI. So that is also what we have in place.

00:20:35 So these are the key takeaways that I want you to take with you.

00:20:39 And thank you very much for listening. And stay tuned for the next unit.

00:20:48 And yeah, I wish you a nice rest of the day. Thank you very much.

00:20:51 Bye bye.

9

Week 3 Unit 3

00:00:07 Hello, and welcome back to our openSAP course on embedded analytics. My name is

Sreedhar Muthuramalingam

00:00:15 and I drive product management for S/4HANA analytics. So far, we have covered a lot on embedded analytics

00:00:24 and its content that we deliver along with it. We are currently in unit three of week three.

00:00:30 So far this week, you must have seen pre-delivered content that was delivered with finance and procurement.

00:00:36 Also, you must have seen the different tools that we used to deliver this content.

00:00:41 Today I want to drive through the sales and distribution content that we delivered in the order-to-cash area.

00:00:50 Let's jump right in. So with the finance and procurement content,

00:00:55 you must have seen various tools being used. With order to cash,

00:01:00 I wanted to cover one more area that is one of the key areas

00:01:04 where we deliver dashboards as part of the embedded analytics offering. Here, dashboards are powered by SAP Analytics Cloud

00:01:13 and they come with the S/4HANA Cloud license directly. And with S/4HANA on premise it's a little different.

00:01:21 But I will take you through those in a second. So here is a reference architecture

00:01:27 that you want to take a look at. I will not be diving deep into it

00:01:31 but this is for your reference for future use. But in the visualization area

00:01:36 you could see, in the Fiori UI itself, we do have the dashboards that are now available.

00:01:42 Of course, they're embedded for the S/4HANA Cloud instance. For on-premise, it's deeply integrated.

00:01:50 What's the difference? For S/4HANA Cloud customers,

00:01:55 we deliver an OEM version of SAP Analytics Cloud that is a pre-configured tenant

00:02:02 that is automatically configured for you and delivered when you get the S/4HANA license.

00:02:08 Now, this OEM license is specific only to live connection that you can connect directly to the native S/4HANA Cloud system.

00:02:18 We have content that's pre-delivered along with it. The content itself, along with the capability of being able to create dashboards

00:02:29 is on the Fiori UI launchpad directly. This also helps you to seamlessly navigate

00:02:36 from the actual dashboards into the S/4HANA Cloud transactions that you're looking at.

00:02:43 So this is available for S/4HANA Cloud customers. For on-premise customers,

00:02:49 there is an extra requirement of getting a full license of S/4HANA Analytics Cloud.

00:02:54 When I say full license, obviously this comes with more,

00:02:58 which is the live connection, the replication connection, which is used more for planning,

00:03:04 and then also the smart features that come along with it. But here in this case,

00:03:09 you will have to get a specific separate license for S/4HANA Analytics Cloud also. With this, what you can do is you can create the dashboards on SAP Analytics Cloud

00:03:20 and then embed those dashboards into the Fiori UI launchpad itself.

00:03:26 So you can now click on the Fiori UI launchpad on the dashboards that you've created,

00:03:31 and you could directly access them. So that's the key difference between on-premise and cloud customers,

00:03:36 the way they access the SAP Analytics Cloud dashboard. Today we are going to look at specifically a case

00:03:43 of content that we built for SAP Analytics Cloud based on S/4HANA Cloud

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00:03:49 that was created directly on the Fiori UI launchpad. We have a lot of content that's being delivered along with this,

00:03:57 from finance to treasury to procurement, produce, and order to cash,

00:04:03 which is in the sales and distribution area. I wanted to discuss today specifically

00:04:07 on the Order to Cash Dashboard. Let's dive right into the Order to Cash Dashboard.

00:04:13 This dashboard provides deep insights into the sales volume, profit margins,

00:04:19 and the incoming orders, both sales and service orders,

00:04:23 based on different dimensions, namely sales org, or sold-to party, and other dimensions that you configure them with.

00:04:31 Let's jump right into it and take a look at these dashboards in the system itself.

00:04:38 Here you see, now we are in the Fiori launchpad and you see a lot of tiles here that are available.

00:04:45 So you could go ahead and search for this dashboard specifically that you're looking at.

00:04:50 In this case, we are looking at the Order to Cash Dashboard. So, Order to Cash Dashboard,

00:04:57 you can see that available right there. So you directly jump into this dashboard

00:05:02 and then you have the Order to Cash Dashboard that's available for you. Now, this Order to Cash Dashboard comes with three stories or pages.

00:05:11 On the top, you can see we have a page on sales volume, one for profit margin, and the other for incoming order.

00:05:18 Now, let's look at the Sales Volume page itself. The Sales Volume page enables you to see at a glance

00:05:25 how your sales volume has developed over time and where you can increase it. You could also see the open orders, open deliveries,

00:05:34 and open billing requests by sales organization. And also, you could see the credit memos

00:05:40 that result from cancellations or returns and analyze what is that causing the problem in terms of returns.

00:05:49 So you have this tab that covers extensively the sales volume analysis itself. Here also you could see the top five open orders associated with this

00:06:02 and you could also explore the other details of it. Now, in terms of dimensions,

00:06:07 you could look at by sales org, or sales office, or customer group,

00:06:11 sold-to party, product group, and product and look at the sales volume based on the dimension that you want to look at.

00:06:18 Next page that is available is the Profit Margin page. This page enables you to analyze your sales volume

00:06:25 and profit margin over time by sales org. For example, you can see whether the profit margin

00:06:32 is low for a particular sales organization. And then you can start analyzing them deeply.

00:06:37 So here, again, you also have the top customers that are listed. For example, here you can see the top-five customers based

00:06:48 on sales volume by sold-to party. You could also see their profit margins for the top-five customers.

00:06:56 And you could also see the net sales for the top-five customers. This gives you an extensive analysis of the profit margins,

00:07:03 and for you to be able to analyze where the profits are going up and down. And then you have the Incoming Orders page

00:07:17 where you can analyze the incoming orders and compare incoming sales and service orders

00:07:22 by dimensions, such as sales org. You could also here look at the incoming sales orders by sold-to party,

00:07:30 which is the top-five customers that are available and you could analyze them

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00:07:37 and see what the details around the top-five customers are. So earlier, we talked about being able

00:07:43 to navigate seamlessly from the dashboard into the actual transaction.

00:07:50 For example, now here, we can take a look at what the corresponding sales org is.

00:07:56 Let's go into the Profit Margin page here. As you can see, when we navigate from pages,

00:08:01 the refresh is instant, and you're able to access the data right away.

00:08:05 Now we can go and jump right into the sales org that is related to this.

00:08:11 So we want to take a look at what the sale org is and get all the details around it,

00:08:17 and also get the customer number for the intercompany billing associated to that sales org.

00:08:21 So we were analyzing the sales org for US, which was the 1710.

00:08:26 You have all the details on there. Now, from here, you can go back into the actual dashboard itself.

00:08:32 So this dashboard has been built and grafted in such a way that you can get all the details in one screen available for you

00:08:42 so that you can do the transaction analysis, as well as having a dashboard view for their executors.

00:08:48 So it's as simple as that. From the Fiori launchpad,

00:08:52 you can go directly into the dashboard, look at all the details,

00:08:55 and also look at the transactions, and come back. So as I said, multiple page view allows you

00:09:01 to be able to look at the stories in different angles. In this case, you have three main stories

00:09:07 that I covered that give you the sales volume, the profit margin, and also the details of the incoming orders.

00:09:14 So that's what I wanted to show you today and let's go back to our presentation.

00:09:21 Also with this, we have listed to you the top key figures that are available with this dashboard.

00:09:27 We have sales volume, credit memos, cancellation,

00:09:30 profit margins, net sales, and all the details around the open sales orders and the service orders.

00:09:36 You have the definitions available for you to take a look. Now, with this dashboard,

00:09:41 not all organizations might be able to invoke them as is but we give you the capability to be able to go and analyze them

00:09:48 and see if this fits into your organization and then adapt them accordingly.

00:09:52 It might not be all the key figures that you want. Maybe you need more key figures.

00:09:57 But at least you have a great starting point and you could use this dashboard

00:10:01 as a launchpad to start creating more details around what you actually require in your organization.

00:10:07 So that's what we wanted to discuss about today. Finally, I also wanted to give a few takeaways with this.

00:10:17 As I said before, we have this pre-delivered content to help customers to be able to seamlessly move

00:10:26 to the cloud from where they are today. This content helps you to have a great jumpstart,

00:10:32 an instant start into analytics if you don't want to reinvent the wheel

00:10:37 and see what's available directly off the bat. So great place to take advantage of.

00:10:43 As I had said before, the content that's delivered

00:10:46 with the SAP Analytics Cloud OEM version is directly available on the SAP Analytics Cloud content library,

00:10:53 and you'll be able to access them directly. So that's what I wanted to cover today.

00:10:57 Thank you very much for your attention. We still have a lot of additional information available

00:11:03 for you over the course. Thank you very much for listening.

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00:11:06 Have a great day. Thank you.

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Week 3 Unit 4

00:00:06 Hello. My name is Mark P. Burke

00:00:09 and I am a product manager with SAP S/4HANA Cloud. I'm coming to you from Paulo Alto, California.

00:00:16 And welcome to unit four, Introduction to Cloud-Based Planning

00:00:21 with SAP S/4HANA Cloud. Let's go ahead and get started.

00:00:27 SAP Analytics Cloud is the single platform for use with planning, analysis, prediction, and reporting by SAP.

00:00:37 You're going to hear about how we fit planning into these processes as part of this session.

00:00:45 Now, the planning component shares much of the infrastructure

00:00:49 of analysis and prediction. We have data connectivity to data sources,

00:00:54 both SAP and non-SAP. We leverage visualizations and stories

00:00:59 to show dashboards relating to actuals, plans, and budgets.

00:01:05 We collaborate around our analysis, but we also collaborate around our plans.

00:01:11 We also leverage administration and security to make sure the data's secure,

00:01:16 and also, auditing and monitoring to let us know who made the change to a plan

00:01:21 during our planning process. Now, as you start using SAP Analytics Cloud,

00:01:29 you'll see that many of the tasks that might have been handled in S/4HANA

00:01:33 and SAP S/4HANA in the past are now taking place in SAP Analytics Cloud.

00:01:39 So, for instance, the analysis of your actuals, because you can visualize them and look at trends

00:01:44 and even run some prediction, but that analysis of your actuals takes place in SAP Analytics Cloud.

00:01:50 Then you perform your planning and budgeting, which is actually the users inputting

00:01:55 or deriving data for plan and budget right inside SAP Analytics Cloud.

00:02:02 After they are done, they can now look at variance analysis down the road,

00:02:06 which compares, how's my latest actual, compared to my plan? How does my latest actual compare to my budget?

00:02:13 How does my latest budget compare to my prior plan? From all this, they'll use SAP Analytics Cloud

00:02:20 to drive insight to action. If they're reviewing actuals,

00:02:25 for instance, year over year revenue growth, they may take one action.

00:02:29 If they're reviewing actual versus plan variance, and see a shortfall in revenue projections,

00:02:36 compared to what they expected, then you'll actually take action there.

00:02:42 So having this all in one tool leads to this one system of truth for your end user.

00:02:50 Now when it comes to building planning solutions within SAP Analytics Cloud,

00:02:54 we start on the left-hand side with a data source. In this workshop, we're going to be talking about

00:03:01 SAP S/4HANA as the data source. Many customers will have other data sources,

00:03:09 but in this case, we're going to talk about specifically financial planning and analysis

00:03:14 for the SAP S/4HANA customer. On the right-hand side is SAP Analytics Cloud,

00:03:20 and the administrator of the tool and the designer of the solution

00:03:25 will actually decide which master data to bring into SAP Analytics Cloud

00:03:30 and which transaction data. Master data, like a cost center,

00:03:33 would be the cost center master data table that exists inside of SAP S/4HANA.

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00:03:41 For transaction data, it might be three years of P and L data to bring into SAP Analytics Cloud.

00:03:49 You will make the choice as the customer or partner. Now, what SAP does to accelerate your adoption

00:03:59 and help you with creating this solution within SAP Analytics Cloud,

00:04:04 is that we've actually predelivered content in the area of planning for the SAP S/4HANA Cloud customer.

00:04:12 What that means is that you have content available to you in SAC that you can actually download

00:04:18 and put into and transfer into your own instance of SAC. Taking advantage of content that's been built by SAP internally

00:04:28 using feedback from customers and history from customers and partners,

00:04:33 and even some of our own internal knowledge. Now, this content is available in many forms with planning.

00:04:41 There is content available to SAP S/4HANA customers and there's planning that's available

00:04:46 to non-SAP S/4HANA customers. In the area of content for SAP S/4HANA customers,

00:04:54 there are a couple of choices. In this workshop, we are going to learn about

00:04:58 SAP financial planning analysis for SAP S/4HANA. Okay, so, now, how do you get that content?

00:05:08 Similar to how you get to content in the analysis space, you will actually import the data

00:05:13 from the business content network. The business content network is provided for free

00:05:20 to SAP Analytics Cloud customers. The navigation steps are here.

00:05:24 You will go into that, and you will actually see the content and you will be able to import it.

00:05:32 Now, what is content? In general, content in this area has a planning component,

00:05:39 allowing the setting up of schedules and processes and calculations, to help you do your planning,

00:05:45 all based on the experience of someone attaching to an SAP S/4HANA system.

00:05:53 It also covers analysis, so it can actually show you how to do year over year analysis of your actuals,

00:05:58 how to do actual versus planned analysis. And ultimately, the integration.

00:06:04 How do you connect this system the best-practice way, from SAP Analytics Cloud,

00:06:11 to SAP S/4HANA Cloud? And so, we're going to be walking you through packages

00:06:16 that actually do this planning, analysis, and integration based on different business scenarios within SAP Analytics Cloud.

00:06:28 Now, the scenario that we're going to introduce you to is financial planning analysis for SAP S/4HANA.

00:06:33 This can be adopted to both cloud and non-cloud customers, whether you're using S/4HANA directly in the cloud,

00:06:40 or in any type of hosted or other scenario. We're going to introduce you to a model at the top here.

00:06:48 It has the financial planning and analysis, it includes a P and L, a balance sheet, and a cash flow.

00:06:54 That's going to come forward in workshop five. We're also going to introduce you to workforce planning, sales planning,

00:07:03 and in the future there's going to be capital expense planning and strategic financial planning.

00:07:09 But you're going to see in the follow-on sessions, an introduction and deep dive

00:07:12 into P and L balance sheet cash flow, which is this top-level model

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00:07:16 which includes financial planning and analysis, and then the work force and the sales planning.

00:07:21 And we're going to introduce you to these as content that you can download,

00:07:25 and then you can actually leverage it into your process either as a starting point for your planning process

00:07:31 or as a reference point. The difference is, a starting point means

00:07:35 you want to download this content and make it your own immediately

00:07:39 and start with this content. A reference point means maybe your industry

00:07:44 or your customer or your scenario is much more complex, or much more simple,

00:07:50 and you'd rather just review this content and borrow techniques from here

00:07:55 into your own implementation and build it on your own. Either way, this content is valuable as a starting point

00:08:02 or as this reference point. So let's now go through what you learned in this session.

00:08:09 First of all, SAP Analytics Cloud is the preferred financial planning analysis solution

00:08:13 for SAP customers. There have been historical tools on the market.

00:08:21 Those are now being replaced by SAP Analytics Cloud both for cloud scenarios and non-cloud scenarios.

00:08:28 You can actually integrate SAP Analytics Cloud to SAP S/4HANA. And you can also have a choice to do that to cloud

00:08:36 and on-premise sources, but also to third-party sources.

00:08:41 The other key point is that we have business content available in this area

00:08:45 to help you accelerate your adoption of SAP Analytics Cloud to the SAP S/4HANA Cloud scenario.

00:08:53 And remember, that content can be used as a starting point, or as a reference point.

00:09:00 And then please understand that as an SAP customer, you have several different types of business content

00:09:08 that you can actually tap into. There's content for S/4HANA scenarios

00:09:14 and for non-S/4HANA scenarios. But also, within SAP S/4HANA,

00:09:18 you also have content that can be adopted based on your specific business scenario.

00:09:27 So that's it for this unit. Unit five is coming up next.

00:09:32 I look forward to seeing you then. Thank you very much.

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Week 3 Unit 5.1

00:00:05 Hello, this is Mark P Burke. I'm back here.

00:00:09 Here we are on unit five. Welcome back.

00:00:12 I am a product manager in SAP S/4HANA Cloud and coming to you from Palo Alto, California.

00:00:19 And our unit five offering here is financial planning and analysis for SAP S/4HANA

00:00:27 using SAP Analytics Cloud. So today we're going to learn about the flagship offering

00:00:33 within SAP Analytics Cloud that connects to SAP S/4HANA and allows you to do planning.

00:00:41 So let's go ahead and get started. If you recall in the prior session

00:00:45 we talked about business content being available for SAP Analytics Cloud for SAP S/4HANA customers.

00:00:54 What you have here is financial planning and analysis for SAP S/4HANA that's made up of planning, analysis,

00:01:02 and the integration between SAP S/4HANA and SAP Analytics Cloud.

00:01:09 SAP Analytics Cloud acts as the planning engine, also for analysis,

00:01:14 connects back to SAP S/4HANA, brings forward your actuals into SAP Analytics Cloud,

00:01:20 and then allows you to perform analysis of those actuals, which sets the stage

00:01:25 for you to complete your planning and budgeting. Basically you are leveraging that infrastructure

00:01:32 that you have on SAP S/4HANA during your planning process. That includes master data, that includes transaction data,

00:01:40 and then ultimately the processes for planning and analysis are based off the principles that are available

00:01:47 and structures that are available back in SAP S/4HANA. So, on the left-hand side here, when it comes to planning,

00:01:55 we're going to do planning in this particular solution that allows for a profit and loss plan,

00:02:01 a balance sheet plan, and a cashflow plan. And what this solution shows you

00:02:06 as an SAP S/4HANA Cloud or S/4HANA customer, it shows you how to perform planning

00:02:12 to allow you to do P and L, balance sheet, and cash flow. Now, be aware that P and L planning

00:02:18 is based off of a combination of cost center planning and profit center planning,

00:02:24 what we consider here a baseline cost center and profit center plan.

00:02:28 When it comes to balance sheet planning, it includes planning for assets directly

00:02:33 or planning the change in assets based on the accounts. And then when it comes to cashflow planning,

00:02:39 we're talking about the indirect cashflow method, a method which means that we look at the change

00:02:44 in balances on the balance sheet and reflect those in the cashflow statement.

00:02:48 So, those three things become available in this best practice,

00:02:52 financial planning and analysis for SAP S/4HANA. Now, on the analysis side,

00:02:58 we're setting you up to be able to do planning and analysis together.

00:03:02 The analysis might be on your actuals, which let you look at maybe year-over-year expense growth,

00:03:09 but then after you complete your planning inside of SAP Analytics Cloud,

00:03:12 you can also look at the variance analysis between actuals and plan,

00:03:18 or maybe you want to look at the variance analysis between this year's actuals and last year's actuals.

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00:03:24 And then you maybe want to compare what is my latest forecast or plan,

00:03:28 how does that compare to my budget? Now, with all that, on the right-hand side,

00:03:32 we have the integration. And in this solution, we show you the best practice way

00:03:37 to connect SAP Analytics Cloud to SAP S/4HANA Cloud. And so, when those two are connected,

00:03:44 you can replicate data from S/4HANA Cloud into SAP Analytics Cloud, which creates a set of actuals

00:03:51 that you can use for analysis, and then that infrastructure creates your ability

00:03:57 to set up a cost center plan, a profit center plan, which makes up your P and L plan,

00:04:01 and then your balance sheet plan and your cashflow plan. Now, if all of these principles are new to you,

00:04:08 then you are probably new to SAP S/4HANA Cloud and maybe even new to some of the finance.

00:04:14 But for those that are looking at planning for their overall company against the profit and loss,

00:04:19 the balance sheet, and the cashflow, and then those looking to leverage their investment

00:04:24 in SAP S/4HANA Cloud, this solution is for you. Now, you're going to find in some of the future sessions

00:04:31 that we talk about workforce planning and sales planning. Those are submodels underneath this master model here.

00:04:38 So we're going to be spending our time here at the top level. Think of this as being at the top where the P and L,

00:04:44 the balance sheet, and the cashflow are reflected. And then down below,

00:04:48 we'll have the workforce plan and the sales plan, and in the future release, capital plan,

00:04:53 to support this overall effort. But what you're getting with a solution in business content is this scenario that,

00:05:00 "Hey, I'm an SAP S/4HANA customer. I would like to perform planning in SAP Analytics Cloud

00:05:08 and I would like to perform it against the P and L, the balance sheet, and/or the cashflow."

00:05:14 If you do, if that's your requirements and you're on SAP S/4HANA Cloud,

00:05:18 this content is likely for you. So what does that mean?

00:05:22 What does content really mean? Here is a diagram that reflects the content

00:05:27 as delivered in SAP Analytics Cloud. At the bottom here, you are going to see a data source.

00:05:34 This is a data source which is ultimately a CDS view that then has what's called an OData service on top of it,

00:05:42 which allows for the data to be pulled out of SAP S/4HANA and imported into SAP Analytics Cloud.

00:05:51 Now, what is that data? That data is your master data tables

00:05:54 and then your actual transaction data. You can then perform your planning

00:05:58 inside of SAP Analytics Cloud, do some reporting and analysis,

00:06:02 and you can even return plan data back into SAP S/4HANA. But at the bottom here is this data source,

00:06:09 and then we have what's called a model. You're going to learn what a model is

00:06:12 when I show you the demo here because we have a model

00:06:14 that's called a financial planning model. And what that is is that's a structure, that's a database.

00:06:19 We pre-deliver as part of our content so that you can import it and get a head start as an SAP S/4HANA customer

00:06:26 on your planning using SAP Analytics Cloud. We've even enabled it for currency

00:06:31 so that if you're a multicurrency customer, you can actually enable very easily currency.

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00:06:37 You're not required to use currency conversion but there's a capability to use that.

00:06:42 Now, at the top of this here, we have now some stories. Stories are similar to Excel workbooks.

00:06:48 There is a story called the overview story which is a dashboard, it's our visualizations.

00:06:53 There's a story for reporting, which is our tabular views, which help you look at tabular data.

00:06:58 And then there's some stories that have the word "input" in them and those are our input stories.

00:07:03 That's where you perform your planning and that's where you actually input data

00:07:07 and create your plan data. So, for example, you might input in a cash balance in order

00:07:16 as part of your balance sheet forecast, which will lead to a cashflow forecast.

00:07:20 And so that's your ability to change. And that's what's very unique about planning

00:07:24 when compared to analytics for the rest of this openSAP course.

00:07:27 When we're talking about planning, we're talking about creating and calculating

00:07:32 and actually storing data that comes from the end user. It is basically a read-write database.

00:07:38 Many of the analytics solutions in SAP Analytics Cloud, including live feeds, live links to SAP S/4HANA,

00:07:47 those are all read only. You read data and you analyze it.

00:07:51 Here in a planning solution, you are actually reading data, you're replicating it in

00:07:56 so it actually forms a data structure, a data store. And then in the planning process,

00:08:01 you're actually creating more data likely in a new version called forecast or budget or plan.

00:08:06 And so at the bottom here, this data source is how we connect to the data.

00:08:10 The model is how we actually store it in our new SAP Analytics Cloud instance in our model here,

00:08:17 and then through these stories, this is how we view it and this is how we change it.

00:08:22 Now, in the middle here are a bunch of calculations. These calculations are used in the planning process.

00:08:28 For an example, you might have a price and you might have a quantity.

00:08:33 You want to multiply one by the other and create revenue. These calculations are pre-delivered as part of this content.

00:08:40 So now, when you go back to this slide and say, we have planning and analysis and integration,

00:08:44 what does that mean? Well, the integration.

00:08:47 Let's look at the bottom here. The integration is connecting this model that we deliver,

00:08:51 in SAP Analytics Cloud to this OData service

00:08:56 that is actually allowing that data to be received by SAP Analytics Cloud.

00:09:00 That's the integration point. Now, we come back and say, well, I want to do analysis.

00:09:04 Well, that's being handled by the overview story, which is some dashboards,

00:09:09 and then also by the reporting story, which is some tabular views.

00:09:12 Be aware in your implementation, you can combine dashboards and tabular views,

00:09:18 which are reports, into the same story. But in this case for the ease of adoption,

00:09:24 the ease of consumption by the customers, we've separated dashboard stories

00:09:29 from tabular report stories simply to let you understand and see those all in one place

00:09:35 so that when you do your evaluation, if you want to use this content,

00:09:38 that you can understand what views we have that are dashboards, which views that we have are reports,

00:09:44 and you can decide to mix and merge those into a single story if you want.

00:09:49 Now, when we come to planning, the planning is a combination in this structure here.

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00:09:56 It's a combination of the user inputting data and then using calculations to create other data.

00:10:01 Again, the example we just talked about a few minutes ago. I'm inputting a price, I'm inputting a quantity,

00:10:08 100 units at $3 each, let's say, and then using a calculation, I'm calculating that that's now $300 in revenue.

00:10:16 The user supplies two inputs, but then the output that's created within the database

00:10:21 is the $300 value which comes against revenue. And so what you have here now

00:10:27 is you integrate to SAP S/4HANA. And by the way,

00:10:30 you can actually integrate to other third-party sources, now SAP and non-SAP.

00:10:36 You're not required only to integrate to SAP S/4HANA. And by the way, you could integrate

00:10:41 to more than one instance of SAP S/4HANA. If you're a new cloud customer,

00:10:45 you could actually implement and connect to SAP S/4HANA. You could connect to SAP S/4HANA Cloud,

00:10:52 and maybe even a third ERP. One thing that the planning models and these type of models

00:10:57 do in SAP Analytics Cloud is they are data source neutral. They let you combine data sources.

00:11:03 That's often a situation in planning scenario because you have multiple ERPs out there,

00:11:08 but you just want to plan one business, or you're making an acquisition or have made an acquisition

00:11:13 and now you have your new acquisition on a different ERP, temporarily even.

00:11:17 You can import their data, you can bring it in side by side with your own data,

00:11:21 create a total revenue, a history made up of your existing business

00:11:27 plus your new business that you just acquired. And you can bring it together so that when you go to plan

00:11:31 your future business, you treat it as one. And so all these things, you can see the mapping here.

00:11:36 The planning is the input forms and the calculations. The analysis comes from the import of actuals

00:11:44 and also your ability to see stories that have dashboards, like the overview story, and then the report story.

00:11:50 And then finally, the integration, which allows you to connect SAP Analytics Cloud

00:11:58 to SAP S/4HANA. So now, I know that's a lot.

00:12:02 Now we're actually going to see the actual each of these objects. We're going to see what a model looks like.

00:12:09 We're going to see what a story looks like, a dashboard story, a tabular reporting story,

00:12:14 and then an input story, and then you're going to get a feel for that.

00:12:17 And then we're actually going to browse the model and we're going to show you all this.

00:12:23 So, first of all, let's talk about a model. What is a model?

00:12:26 In SAP S/4HANA Cloud, there are many, many dimensions that you could choose to actually perform your planning.

00:12:33 In the case of P and L and balance sheet and cashflow planning, the most common dimensions that are kind of focused...

00:12:42 We know a lot of this from the BW world. We know a lot of this from customer experience.

00:12:46 The key dimensions that are often used to perform P and L, balance sheet, and cashflow

00:12:52 are the company code, the cost center, the profit center, and the account.

00:12:57 And also we've added functional area to show that we can also do functional area.

00:13:01 These are the key dimensions. Now, in other forms of planning,

00:13:04 including headcount planning and sales planning, you are going to need other dimensions.

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00:13:08 But in this case, we have narrowed down a model, which is a subset of data, down to these key dimensions,

00:13:16 added a few others, including audit trail and flow, and then the default ones for time and version.

00:13:23 And time and version are dimensions that are required pretty much in a planning process.

00:13:28 Time helps you keep track of what month you're in, what quarter you're in, what year you're in,

00:13:32 and version helps separate actual from plan from forecast. And then of course, we have currency conversion enabled,

00:13:40 but you can choose just one currency and just flow through one currency if you want,

00:13:45 but there is a capability to do multicurrency. Now with all this, we've made some changes in the data

00:13:51 from what you see in SAP S/4HANA. For instance, we have analytically valid sign treatment.

00:13:57 That means that revenues will be displayed in standard ways of many worldwide adoptions.

00:14:02 That means that revenue will display as a positive, but even expense will display as a positive.

00:14:07 And then the net will actually, if you're making income, revenue minus expense,

00:14:12 it will also display as a positive. This is some of the standards around the world

00:14:16 that may not be in place in your SAP S/4HANA accounting system

00:14:23 because it might be showing native signs, but what you're going to do here is see analytically correct sign treatment.

00:14:28 And then ultimately, you're going to hear more and more about the new model in SAP Analytics Cloud,

00:14:35 this new advanced model. We are using the account model,

00:14:38 which is the original model here. And because based on the timing of this openSAP

00:14:44 we are actually in the process of evaluating this new model and how to actually structure our model in here.

00:14:50 But this model that you are going to see today is using the account model process.

00:14:55 But the key to understand here is, when designing a planning solution inside of SAP Analytics Cloud,

00:15:01 you really are narrowing down all the dimensions that you have available. This is not a data warehouse.

00:15:08 You do not want your planning tool to be a data warehouse. You want to really focus it.

00:15:13 In this case, our scenario is we are an SAP S/4HANA Cloud customer, I want to perform P and L, balance sheet, and cashflow planning,

00:15:22 and with that, I'm going to narrow my results that I bring into SAP Analytics Cloud from S/4HANA.

00:15:29 I'm going to limit that to company code, cost center, profit center, functional area, and account,

00:15:34 and then I'm going to perform my planning. Knowing that, as I go to something else like the workforce planning,

00:15:40 I likely will introduce something like job and location. When I introduce sales planning,

00:15:46 I will introduce something like customer and product. But for right now, in a high level at the top of the pyramid type of thing,

00:15:53 I'm going to focus on these dimensions, this becomes a subset of what's available

00:15:58 in your SAP S/4HANA system.

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Week 3 Unit 5.2

00:00:05 So, let's go ahead and go to our demo. So before even opening the demo in the system,

00:00:10 I want to show you SAP Best Practices Explorer, where this particular solution is explained.

00:00:16 We have the SAP Financial Planning Analysis for SAP S/4HANA Cloud best practice item. This scope item describes a piece of content that exists

00:00:26 within SAP Analytics Cloud business content network. I'm going to show you the business content network here in a moment,

00:00:33 but from here, you'll be able to read about the business benefits, about the software product version,

00:00:38 and about some of the key process flows. Okay.

00:00:41 And you'll also be able to see some of the guides, the test script ultimately ends up like a user guide.

00:00:48 And then you'll also have some guides that show you how to import data, sorry, how to import the model,

00:00:56 how to import data, and then finally, how to retract data back to the plan

00:01:00 with these guides that actually you can download and take a look at.

00:01:05 You can review these guides and also this page,

00:01:09 without being an SAP Analytics Cloud customer. But when you become an SAP Analytics Cloud customer,

00:01:14 you'll have access to the business content network, and you can follow this guide on how to import this model

00:01:21 into your environment. And really what it is is that we have these models,

00:01:26 through the business content network available on an internal tenant of SAP Analytics Cloud,

00:01:32 and you're able to transfer those into your tenant of SAP Analytics Cloud. And then you can start doing modifications.

00:01:39 And remember in the last session we talked about, you can use that as a starting point,

00:01:43 but often what customers do is they use this as a reference point. And now you have a fully working model with many examples,

00:01:50 really implementable examples of how to use this solution. So this Best Practices Explorer becomes a way

00:01:57 for us to share with you the best practices. And so that's your explanation of Best Practices Explorer.

00:02:07 Now, as we go into SAP Analytics Cloud, this might be your first time seeing SAP Analytics Cloud.

00:02:13 So I've logged in now, and I've got my own tenant.

00:02:16 By "tenant" I mean that when I log in, I have access to the files and I can share them within my company.

00:02:23 It is fully cloud-based, so there is no footprint on your desktop.

00:02:26 It is fully cloud-based. Now I wanted to show you the business content network,

00:02:31 because as I come into here, and I select down to here, to the Content Network,

00:02:39 I can now go to Business Content and you will see a laundry list of different pieces of content available to you.

00:02:46 And so you get to really understand these, and you can understand which ones you want to acquire.

00:02:51 So you as a customer can go into here and say, look at all these different pieces of content.

00:02:57 And what I have here, what I'm going to focus on right now, is coming to Financial Planning and Analysis for SAP S/4HANA.

00:03:03 I can click on that and I can open it. And what you're seeing here is now the ability that I can

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00:03:09 actually import this into my own tenant. So here I can read about all the different components of it.

00:03:16 And then I can also go into Import Options and I can choose which objects

00:03:20 and which pieces I wish to import into my SAP Analytics Cloud tenant. And so you'll actually be able to import this.

00:03:28 And you'll see it comes shipped with dimensions, it comes shipped with connections,

00:03:33 it comes shipped with data actions, which are the calculations,

00:03:36 and all these are the technical objects. Now, normally a user would not be doing this.

00:03:41 This is really a business administrator that's in charge of the SAP Analytics Cloud tenant,

00:03:47 somewhere between the finance organization that's running the planning process and the IT people,

00:03:53 it's somebody that's IT savvy, but probably finance trained,

00:03:57 and they are going to import this content and start using it as either a starting point or as a reference point.

00:04:04 And so you can go ahead and hit Import this based on these options. Again, there's guides,

00:04:08 and there's also videos on this that show you how to import this.

00:04:11 This is the same way that you're going to import content, whether you're looking at analytics,

00:04:15 whether you're looking at planning, and so on. And so what you have is this ability to import this content.

00:04:22 Now, when you import this content, what are you left with? You're left with, first of all, a model.

00:04:28 And let's go ahead and just see, you know, what the physical objects look like.

00:04:32 So, first of all, we're going to talk about a model. What is a model?

00:04:36 A model is a physical data store. It's often referred to as a planning model

00:04:42 because this becomes a read-write model that exists in SAP Analytics Cloud.

00:04:46 Without any integration point, a model will be empty.

00:04:49 It will not have any transaction data, but the tables might be full of master data.

00:04:55 We ship with sample master data and sample transaction data. So that allows you to see this model and actually view it.

00:05:03 And you can even mess around with it without breaking anything. And then, when you go to implement,

00:05:09 you can either build your own model and just kind of mimic this, or use this as your starting point -

00:05:13 we give you some instructions in the Best Practices Explorer guides on how to start creating your own model.

00:05:19 And here, this model then can be cleared out and you can start with that.

00:05:23 We will start seeing the dimensions that we talked about, where we have cost center

00:05:27 and functional area and profit center. And then we have a flow dimension that we've added,

00:05:32 also trading partner, company code, and G/L account.

00:05:36 Now each of these dimensions end up having master data attached to them,

00:05:41 and they are a reflection of the master data that's in S/4HANA Cloud. So when we talk about integration, what does that mean?

00:05:49 One of the integration points to our SAP S/4HANA system is to pull across the master data.

00:05:54 And a master data is almost like a spreadsheet of all the values that are available to me. And that includes the member ID, the description,

00:06:03 any type of hierarchy node that you might have, but also there might be other attributes.

00:06:08 And we bring across some attributes here, like what company code does this cost center belong to?

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00:06:14 What profit center does it belong to? What currency is its default currency?

00:06:20 And as you get more and more close to SAP S/4HANA, you'll understand these things.

00:06:24 But think of master data as ultimately the metadata that's actually just going to control your processes.

00:06:31 If you need to plan against a cost center, the cost center needs to be here.

00:06:35 If you want to review actuals against a real cost center, the cost center needs to be here.

00:06:39 But this has no impact on really the transaction data. This is a table standalone cost center

00:06:45 that actually can be shared with other models. So you could have a cost center model like we do here,

00:06:50 shared in this model, with the same master data table,

00:06:54 it could be shared into the workforce planning model because we need cost centers there too.

00:06:57 So it's like a single point of maintenance connected, in SAP Analytics Cloud,

00:07:01 connected to SAP S/4HANA, maybe on a once-a-month basis you resynchronize this and pull it in.

00:07:07 You can actually now, also in a planning process, which is an important thing,

00:07:11 propose a couple of things. You could propose new cost centers

00:07:15 before they exist back in your ERP. You could also restructure cost centers,

00:07:21 for instance, create a different hierarchy, like the hierarchy structure here,

00:07:25 that allows you to propose a cost center hierarchy

00:07:31 that you might want to restructure your business. And then you'll be able to view the hierarchies and so on.

00:07:37 Where I was going to show you the hierarchy, as an example, is if I go into the account dimension here,

00:07:41 and the accounts is probably one of the more complex dimensions here, but this includes a number of accounts that come from

00:07:49 SAP S/4HANA, and some accounts that exist within the planning process

00:07:54 that I've created just within SAP Analytics Cloud. But you'll see here as I come down, I have, you know,

00:08:00 all my bank accounts, and so on, that are set up in SAP S/4HANA.

00:08:04 And then I have some attributes that we've either added, we've either extracted from SAP S/4HANA,

00:08:10 or supplemented here as part of the process, and you just follow the guides for that.

00:08:15 And you have all these different attributes. But one thing I was going to show you here

00:08:19 is the ability to now view a hierarchy. And I can now go to the hierarchy management.

00:08:24 And now the hierarchy allows me to reflect, okay, now there's an aggregation of current assets, as an example,

00:08:31 made up of cash and equivalents, accounts receivable, inventories, notes receivable, and other current assets.

00:08:36 And maintaining this and changing this is actually drag and drop, but be aware, you are not directly in SAP S/4HANA,

00:08:44 there's the pro and con of that. Right now, you've replicated this over,

00:08:47 this is now standalone. If you start restructuring this,

00:08:50 which sometimes you need to as part of a planning process to maybe propose a new account structure

00:08:55 or to propose a new organizational structure, once you do this,

00:08:59 you can get it all approved here, but then you will transfer that and really have that,

00:09:04 those decisions put back into your ERP system, using the front end of SAP S/4HANA

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00:09:09 to make those structural changes. And so you have this ability to manage hierarchies,

00:09:14 to manage descriptions here. You can get them approved here and then put them through

00:09:18 your master data process in your ERP to get them reflected. And so now I've looked at the hierarchy and I can come back.

00:09:27 So, the whole idea here is that you have a model and a model is including a set of dimensions.

00:09:35 Here I have the, remember we talked about the objects in PowerPoint?

00:09:39 You saw there was a model at the bottom. Then there were three stories.

00:09:42 Here's my three stories right now, okay. And I can take away a couple of these here,

00:09:48 and you'll start seeing, a little bit.

00:09:55 You'll see some naming conventions that are familiar from the slide. And now you'll see that we have this model here,

00:10:02 and then we have the reporting story, the overview story, and the input story. So these are like files that exist in your SAP Analytics Cloud.

00:10:09 When you import our content, you're going to get the model and the three stories.

00:10:13 And then the three stories have a bunch of tabs. And you're going to see those here in a moment.

00:10:16 So what you're seeing now is that we've just explored the model.

00:10:19 The model is made up of dimensions. And then once the dimensions are in place,

00:10:24 we then import transaction data, which comes in against the combination of these dimensions.

00:10:29 So we bring in actuals against the actual version, by account, by cost center, by profit center,

00:10:35 by trading partner, flow, and by company code. We bring that in against an element of time, for instance the month.

00:10:42 And so I now have January sales and so on. And so you now have that import taking place here, okay.

00:10:50 And that actually creates the data store. Now as we go into this and we go beyond the model,

00:10:57 let's start looking at the stories.

25

Week 3 Unit 5.3

00:00:06 Now as we go into this and we go beyond the model, let's start looking at the stories.

00:00:10 So the first story you're probably interested in, and I wish I had a little bit better data here,

00:00:15 is some visualization stories. Some of my data is getting moved around based on some testing we're doing, and so on,

00:00:21 and just some of the demos that we do. But here you're seeing a lot of variation.

00:00:25 You're seeing how we can show results over time, revenue by profit center, broken out by time.

00:00:32 And then also variance to the plan. You're seeing some operating income numbers here

00:00:38 with the value, also showing how we did versus last year versus plan,

00:00:44 revenue last year versus plan, expense last year versus plan.

00:00:48 There's some data, some data challenges here that I'm having just from an internal standpoint,

00:00:54 that things are getting moved around as people do more and more demos. And then we have the expense by cost center, actual and variance to last year,

00:01:02 operating income, revenue, and expense, actual and variance to plan. And so these dashboards are kind of a cookie cutter.

00:01:09 Most people doing analysis of plan data want to know variance to last year, variance to plan.

00:01:18 And we deliver this and you'll actually be able to modify this and control this, similar to how you're doing your analytics.

00:01:25 Now, as we go into the next level, you can see some of the tabular.

00:01:31 So you've seen some of the visualizations, some of the tabular.

00:01:33 Again, you'll be able to combine these. We kind of deliver this way just so they're together.

00:01:37 Now in the tabular view, we are able to bring together an income statement,

00:01:42 represented here by net income, a balance sheet statement,

00:01:45 and a cashflow statement into one view. This is something you can't really do very well inside of SAP S/4HANA.

00:01:52 So what you have here now is the ability to actually look at these three financial statements in one report,

00:01:57 reducing your maintenance. You could look at it for actuals.

00:02:00 You can flip over and look to your plan, and then you can also look at your budget,

00:02:05 just by clicking the button. We give you a couple of options here about how time is handled.

00:02:10 You can use a slider to reflect time, if you want to go shorter or longer periods,

00:02:15 or you can use a dropdown to really just reflect what start period you want and what end.

00:02:20 Probably in your implementation, you'll pick one or the other.

00:02:23 We're just showing you examples here, but you can see that very quickly,

00:02:26 I can change time, I can change version. Plus I have the ability to span this to see net income - which is P and L -

00:02:35 balance sheet, and cashflow in one view. That's a big bonus over maybe what you used to be able to do

00:02:42 in some of the ERP-based reporting. But remember also, if we had brought in more than one ERP here,

00:02:50 which is what we are telling you you can do, if you brought in more than one instance here,

00:02:55 meaning multiple ERPs, maybe an acquired ERP company, plus your original, plus cloud, and on-premise, and so on,

00:03:01 you can bring that together and merge here and see it all as one number. It can aggregate into one number.

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00:03:06 And so this is your ability to see data across multiple sources, and multiple ERPs,

00:03:12 which is very advantageous in the planning process, because you might want to plan that as one number going forward,

00:03:17 especially if you just made an acquisition. But in other tabs, we have KPIs.

00:03:24 And KPIs I like to define as, KPIs are not just calculations,

00:03:28 but sometimes you're just controlling the order of things. Hey, I'd like to see revenue, net revenue, COGS,

00:03:33 maybe depreciation in this order, but also there's calculations like gross margin percentage,

00:03:38 return on sales, where now you're making a calculation.

00:03:41 And again, you can span between actual budget and plan,

00:03:44 and you can also go into any of these time sliders that we talked about, okay?

00:03:51 There's no reason why this financial KPI has to be on its own report. We like it here.

00:03:56 It could be stacked under the three financial statements we saw on the prior page. So you have lots of variability here.

00:04:01 The structure here is very clean, that you have this structure in the account dimension that has P and L,

00:04:05 balance sheet, cashflow, and then underneath that the KPIs. And now you can actually control things.

00:04:10 You can see things naturally, the way that they kind of are in S/4, but then through the KPI report

00:04:15 control the order and the calculations, and add some calculations.

00:04:20 And the advantage of these calculations is I can define something like gross margin percentage one time in this model,

00:04:26 and then it can be used... which is, by the way,

00:04:28 gross margin percentage is pretty much your gross margin in currency, dollars, let's just say, divided by your revenue.

00:04:35 You can define that one time included in a KPI report for now actuals and plan, and also for budget, or any forecast,

00:04:44 but then any story that needs to pick up whether it's a graphic or a report or whatever,

00:04:48 can use that single calculation throughout. You don't have to keep creating that calculation over and over.

00:04:54 So a real advantage to that. And now as you go into this,

00:04:58 you will see the next one is the trend.

00:05:04 The trend is just a way for you to dice and slice. We kind of try to teach people that,

00:05:09 use your financial statement report, which was the first tab, as kind of a starting point

00:05:14 as kind of a way that you tie out data. Then you use the trend report to kind of slice and dice

00:05:18 and tear up your data. We will always have this control total

00:05:21 sitting on the first tab. So you can quickly toggle back to the financial statements.

00:05:25 After the slice step I would say, in this case, I believe this is operating expense for the trend report.

00:05:31 You now can actually slice and dice this. And then you can actually have this confirm that the

00:05:37 expenses that you have diced and sliced are still tying to the financial statement,

00:05:41 because maybe you've put a lot of filters on it. You kind of want to know where you are.

00:05:44 You're going to see that there's filters up here for company code,

00:05:47 these dropdowns - this is all standard SAC features. You can choose which company code you want to be in,

00:05:52 which will drive currency in this case, which cost center and which cost center group you want to be in.

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00:05:56 You'll see the hierarchies here. You can go ahead and trickle down to these hierarchies.

00:06:01 You'll see that we're using something as a consistent, as a best practice to show you how...

00:06:06 We're using these dynamic titles that right now this is filtered on operating expense,

00:06:10 and that you are actually going to see that operating expenses here. You'll see that it's on version Actual,

00:06:15 but as we change this to Budget, it will become version Budget,

00:06:18 so that the titles on your reports are dynamic. These are things you may not know how to do when you

00:06:23 open up SAP Analytics Cloud the first time, but by watching this and kind of stealing ideas from this,

00:06:28 this becomes a reference point to say, hey, how did those guys at SAP - and gals -

00:06:34 how do they make this dynamic? And the inclusion of dynamic text.

00:06:37 We kind of show you the capabilities, along with the dynamic time sliders, whether you like the sliders or the dropdowns,

00:06:43 pick which one you like and save the story, and now it's yours, as your brand.

00:06:47 And obviously you're probably going to be putting your own logo on here too. And so now we've got financial statement, KPI,

00:06:54 and then kind of our most complex tabular report is really this variance analysis, but it's very important because this allows you,

00:07:01 as an end user, to select a version and a time period, and then another version and a time period to compare to.

00:07:08 And sometimes you're going to compare actual to budget in this case, maybe for January 2019 to December 2019 for both, so you've aligned that.

00:07:17 And now what I'm pretty much doing is saying, how did my budget in 2019 - again, with this dynamic text, by the way -

00:07:24 how did that compare between budget and actual? And so you now have this comparison of actual and budget.

00:07:35 But you can also very quickly change this over to, well now let me compare my actual in 2019

00:07:42 to my actuals in 2018. And maybe you want to see what your variance there is.

00:07:47 And let's see if I have data in 2018 still, hopefully I still do - yes, I do.

00:07:52 And I'll come here to December. So I quickly, just with a couple of clicks of the...

00:07:57 And that's why I like the drop downs for this particular case... You'll now see that now I'm comparing 2019 actuals

00:08:04 to 2018 actuals. So think about that,

00:08:06 the requirement for variance analysis, hey, your boss says, "I want you to do year-over-year analysis on actuals,

00:08:11 but I also want you to keep tabs on actual versus plan." Well, I've actually been able to do that.

00:08:16 I've compared now year-over-year analysis for actuals. And a moment ago,

00:08:20 I was comparing current year actuals to budget, using the same report, just with a couple clicks of the buttons here.

00:08:26 This is a very different experience than you have in SAP S/4HANA - the data here in this account model has been structured in a way

00:08:34 where you have all the P and Ls, balance sheet, cashflow, and the KPIs in a single structure, along with a reporting like this

00:08:41 that allows you to do variance analysis with just a couple of clicks.

00:08:44 You've jumped from looking at the variance between actual and plan to the growth rate of actuals year over year, just with a mouse click.

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00:08:53 And even if you're using touchscreen, you could just be touching these things and changing it,

00:08:57 and you have a lot of variation. And so the capability of doing these visualizations,

00:09:03 with better data, by the way, you're going to have your own data in here,

00:09:06 I have some sample data in here, and then this ability to actually see these stories tabular.

00:09:13 And then the final step that I just wanted to show you in this solution is really what you came here for,

00:09:18 which was for the planning, right? Now think about this - in planning,

00:09:21 a key part of planning is being able to understand your current status. What are my actuals telling me?

00:09:27 Looking at trend analysis, which we have a trend report for,

00:09:31 looking at KPIs. How are they comparing to my prior year?

00:09:35 How are they comparing to my current budget? And then when you complete a budget,

00:09:40 how am I comparing budget between plan, and budget between forecast - however you wish to define it.

00:09:45 We define budget and plan and forecast as anything that's forward-looking beyond actuals. You as customers are each going to have industries

00:09:53 that have different definitions of those. But really, we talk about those in this solution

00:09:58 as being kind of the same thing, but you decide whether you want to call it actual, plan, or budget.

00:10:02 You'll have the ability to do that through the naming.

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Week 3 Unit 5.4

00:00:04 And then the final step that I just wanted to show you in this solution is really what you came

here for,

00:00:09 which was for the planning, right? Now think about this - in planning,

00:00:12 a key part of planning is being able to understand your current status. What are my actuals telling me?

00:00:18 Looking at trend analysis, which we have a trend report for,

00:00:22 looking at KPIs. How are they comparing to my prior year?

00:00:26 How are they comparing to my current budget? And then when you complete a budget,

00:00:31 how am I comparing budget between plan, and budget between forecast - however you wish to define it.

00:00:36 We define budget and plan and forecast as anything that's forward-looking beyond actuals. You as customers are each going to have industries

00:00:44 that have different definitions of those. But really, we talk about those in this solution

00:00:49 as being kind of the same thing, but you decide whether you want to call it actual, plan, or budget.

00:00:54 You'll have the ability to do that through the naming. Now as you come into the input forms,

00:00:58 the input forms are a little bit more structured. You actually have less variability as a user.

00:01:04 You are able to select, for instance, in a cost center planning process.

00:01:08 Here I am on cost center planning input. I'm able to select a cost center or a trading partner.

00:01:12 I start getting presented things here, that then has actuals in these black bars above,

00:01:18 and we show you how to do this. This is called the rolling forecast template.

00:01:21 This allows you to actually roll forward data. It's not just a fixed structure.

00:01:25 You're going to be able to dynamically roll this forward. Right now I have actuals to December 2019.

00:01:31 I'm planning the year 2020. You can see that I don't have any employee expense here,

00:01:35 but in my employee expenses, there is some breakdown -

00:01:39 I can always drill through to here, this originated. I have payroll and benefits.

00:01:43 It looks like I'm missing some office expense. This is again a sample dataset

00:01:47 for these purposes, for this view.

00:01:52 This all originates, these actuals originate from SAP S/4HANA, and then I can come here and say,

00:01:57 well, if my trend right here is about 65,000 a month in employee expense,

00:02:02 I could probably rely, and I could type right in here. Kind of just like a spreadsheet.

00:02:06 I can type in a value here, and you'll see that it updates the total.

00:02:13 And now I could say, well, it is 65,000 a month for the next, you know, 12 months - however I want to do it.

00:02:20 I'm just going to show you. So this is an example where I'm just putting in a value directly.

00:02:24 Now if you think about employee expense, which is made up of salary and benefits and bonus and all that,

00:02:28 you really have more detail to do here. But what you can do is, in this case, that you can set a high-level target,

00:02:34 the CFO might come in here, maybe the finance organization, maybe even one level below.

00:02:39 They can set targets this way and say, well, if your, you know, current... no more hiring...

00:02:44 Your expense was at about 65,000 in employee expense in December.

00:02:48 We're now just going to make it that going forward, try to target to that.

00:02:52 But we can introduce in the next session, and the next one or the next two sessions

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00:02:55 is workforce planning. That'll actually show you how we can build up this number.

00:02:59 This is kind of a top-down bill saying I'm targeting 65,000, maybe just based on a trend.

00:03:04 But the real way to plan workforce, for instance, for employee expense, is to identify the number of people,

00:03:09 their salary, estimate of benefits, rate benefit, a bonus rate, office expense, and travel.

00:03:16 Maybe travel varies based on a per person. We're going to show you that, but in this case,

00:03:20 it's a high-level, top-level push down. And so what you have is in that cost center input

00:03:26 is the ability to do that. Now you can disaggregate, you can actually change data.

00:03:30 So you see on this building expense, I can say that's 300,000 and I could now say,

00:03:35 let's see if there's any supporting data under there. I'll remind myself if there is.

00:03:39 It's all under one, let's see on other operating expense, what do we have here?

00:03:43 We have a couple of advertising and property sales. I can actually change, so if that's it 34,496

00:03:49 split between 21 and 12, let's just say I wanted to bump that up to

00:03:53 I can go right here into the node and type that, and it'll disaggregate that number now proportionally.

00:04:00 Now the other thing I can do is I could put a lock on one number, and then change it,

00:04:04 and then only the other number will change. Other numbers will change.

00:04:07 You can see I'm going to put in an aggregate and then start putting in a lock.

00:04:10 These are standard SAC features that are available too. Just wanted to explain.

00:04:14 But I can also come here and say, that's 38,316, I want to put that up by 10%.

00:04:21 And I can just type that in, right into the cell. And it'll now bump up that number by 10%

00:04:26 and disaggregate it, and now it changes the total, okay? And so you have all of these capabilities to do.

00:04:34 These are standard SAC features, but I just kind of wanted to show you some of the things. So for cost center input planning,

00:04:39 it's really done for expense planning against the major groups of employee expense,

00:04:44 periodic building expense. Let me bring this back up.

00:04:48 Against the cost center, obviously. But you have the employee expense,

00:04:52 the building expense, and I'll bring this one up, depreciation. And what we do

00:04:56 is we have a model for planning employee expense called the workforce planning.

00:05:00 We then have a model ready to come on the market for capital planning, which handles your building and your depreciation.

00:05:05 So that's going to be coming out in our capital model soon. And then as we go to the next sheet,

00:05:11 which is profit center planning, profit center planning is for your revenue

00:05:15 and your cost of goods sold. In the case of like manufacturing, it's pretty easy, it's like

00:05:20 you're talking about planning product revenue, customer revenue,

00:05:23 but then the direct cost of goods sold that comes with it. This might even apply and even high-tech here,

00:05:29 whether it's some type of tablet that you're manufacturing, and now you're selling it. And then what is the standard cost for that?

00:05:36 And really this all assumes that this is at standard cost because production planning is much more detailed

00:05:42 and much more industry specific. But now we have this

00:05:46 profit center planning, all based on how SAP S/4HANA works, where you do

00:05:50 cost center planning against the cost center. Now you do your sales planning

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00:05:54 against revenue profit centers, along with the COGS. We have this done at a high level, without the customer and product detail,

00:06:01 without the quantities, because that's one of the places that you do to set targets.

00:06:06 And this model here now becomes a place that you can do your input of your profit center,

00:06:11 and you're going against profit centers rather than cost centers.

00:06:15 So here I'm identifying the difference between a bike parts business versus a bicycle business,

00:06:20 that maybe is being broken down by company code because you have it in different parts of the world.

00:06:26 And now I'm separating bicycles from bike parts as profit centers, and I'm really focusing on...

00:06:31 Maybe my core business is selling bikes, but I'd make a lot of side money on my bike parts.

00:06:36 So that's how I have my profit centers set up. Then as customers and products and so on get sold...

00:06:41 Products gets sold to customers, they all roll up into either a bike part business or a bicycle business.

00:06:46 I probably have some compensation tied to these because profit centers often drive compensation plans.

00:06:51 And now you have... But what you have here now is an ability to actually

00:06:56 show how to do profit center planning, you know, at an aggregate level, kind of this baseline

00:07:01 without a whole lot of allocations, but you can use this disaggregation

00:07:04 to actually set a revenue target, there you can say, well, 2.3 million is not enough.

00:07:09 Let's make that at the top level, based on my discussion with the CFO,

00:07:14 let's make it a 3 million dollar revenue target in the first year of plan, and then it disaggregates down.

00:07:19 Now you know what that split might need to be between gross revenue and sales deductions based on history.

00:07:25 And then you could also see if it has any change, if you want to make any change to cost of goods sold.

00:07:30 So, with the detailed profit center planning that you might do, the detailed profit center planning is going to come from the

00:07:38 sales planning process that we'll be introducing you to in one of the next sessions, okay?

00:07:44 Now, balance sheet, balance sheet after you've done your P and L,

00:07:47 which is made up of cost center and profit center plans. And by the way, as you do your cost center planning,

00:07:53 it derives, using SAP rules,

00:07:58 it derives right in SAP Analytics Cloud the profit center it belongs to, so that your entire P and L

00:08:04 in the end is available by profit center and company code, because you're going to put in your expenses by cost center

00:08:10 and it'll derive a profit center. And derive, so D-E-R-I-V-E.

00:08:15 And then you'll have that and get your profit center. Then you're putting in your revenue and your COGS

00:08:19 directly against the profit center so that 100% of your P and L will be available by

00:08:22 profit center and company code. Then only your expenses will be available by cost center.

00:08:26 But the profit center becomes kind of a key thing that brings everything together, along with the company code, which, by the way,

00:08:32 company code in this model, drives what currency you're going to plan in, and so

00:08:40 company code currency is very important. But now as we go to balance sheet planning

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00:08:44 and we see a balance sheet, you now have this balance sheet plan which allows you, in this case,

00:08:50 to input the change in a balance sheet. So I could come down here and say,

00:08:54 here I had an investment of 990,000 into an asset.

00:09:02 I can come in here and extend it to say I'm now going to invest another 550. And what I'm doing here is I'm actually

00:09:08 inputting the change in the balance sheet account in this period.

00:09:12 What it's going to do is look at the opening balance of that, add the 550, and then the balance sheet, it'll create a new ending balance

00:09:19 made up of opening balance plus the change in the current period. And so that's considered what's called carryforward,

00:09:26 and now you have this carryforward process. So some accounts you're going to plan

00:09:30 the change in the balance sheet, and then some accounts you're going to plan

00:09:33 the ending balance sheet. And so now you have the ability in this solution

00:09:39 to pick some accounts to plan the change, some the ending. And this is balance sheet accounting -

00:09:44 not often rolled out worldwide, it's often done maybe controlled by certain groups,

00:09:48 maybe the corporate FP and A group - but it's an important part of this because

00:09:52 as you're doing your profit and loss planning, keeping an eye on your balance sheet plan

00:09:57 ultimately is a requirement to be able to get to an indirect cashflow. And so what happens here is that

00:10:03 as you're making your changes in your balance sheet here, and you're actually calculating,

00:10:09 it's either inputting the change or in the case of putting in an ending balance

00:10:12 and calculating the change, then you are going to now have this

00:10:17 cashflow statement that will come out that will say the change in accounts receivable

00:10:26 has this impact on cash based on how the difference between accounts receivable,

00:10:31 between the ending and opening balance on the balance sheet. And so you kind of have to understand the financial principle of how

00:10:38 an indirect cashflow statement works, but an indirect cashflow statement looks at the change

00:10:42 in balances on a balance sheet in order to estimate the cashflow impact.

00:10:49 And so you have this ability to cycle through this and you can input some accounts the change in balance sheet, some the ending.

00:10:56 And then we wanted to show you driver-based planning here too. We give you an example of that.

00:11:00 Driver-based planning is my ability to input data for plan that really maybe is not financial,

00:11:06 but ends up with a financial plan. So in this case,

00:11:09 I could look at something like days sales outstanding. We learned this from some of the big drink manufacturers,

00:11:14 software manufacturers in the US, the way that they estimate accounts receivable,

00:11:20 how much will our customers owe us, is they look at how many days' worth of sales are on my books in accounts receivable at the end of the month?

00:11:29 And now what does accounts receivable mean? Accounts receivable means customers owe me this much money.

00:11:34 If you divide that by the sales in your month, you can kind of say that, well,

00:11:38 if I have a million dollars in my balance at the end of the month in accounts receivable,

00:11:43 and I have, let's say, five million in sales in the month, then about 20% of my revenue goes uncollected.

00:11:51 And then you can see what's that on a per-day basis, using a 30-day month.

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00:11:55 And now you can put that here, in this case it's 33 days' worth of sales. If that means that...

00:12:00 33 days means I have a little over one month worth of sales in my accounts receivable.

00:12:06 And so what can a customer do about that to get their accounts receivable down? Well, they could start calling their customers, send a letter,

00:12:13 they could hire telephone agents to actually call these customers, and reduce it. And it's part of their planning process.

00:12:21 You can say, starting in June, we're going to really make an effort to get our day sales outstanding down,

00:12:26 which is ultimately deriving our accounts receivable, and we're going to bring it down, let's say, to 25 days.

00:12:33 And by putting in this driver and maybe carrying it forward and knowing that you're going to take an action,

00:12:38 it's this insight to action I know that my accounts receivable balance is getting higher.

00:12:42 We're now going to actively send out a letter that says, please pay us by this amount

00:12:46 or we're going to send you to collections. Then we can start seeing that our

00:12:49 day sales outstanding goes down. We actually publish this data into our database.

00:12:55 And that's one of the actions that you take as a planner inside of SAP Analytics Cloud.

00:13:00 And now that it's published a calculation that we've created in the background,

00:13:04 we'll actually now say, now on accounts receivable will only be 25 days' worth of sales.

00:13:09 And so we'll actually see our accounts receivable balance go down. So if you remember back when we were talking about,

00:13:14 looking at the PowerPoint, we talked about how there are stories. Now we had,

00:13:19 we have the model and then we had the dashboard story, we had the tabular story,

00:13:25 and then we had now these input stories. And the input stories are really the nuts and bolts of a planning

00:13:31 where I'm collecting data from the planner. And I'm either making a calculation and creating more data

00:13:37 off of what they created, in this case... I'm inputting day sales outstanding

00:13:41 and then it's going to derive, it's going to calculate a balance sheet accounts receivable balance.

00:13:48 It's helping me play on my balance sheet, but it's really hard to predict

00:13:52 what your accounts receivable is going to be, but it's a little bit easier to say that we could increase collections

00:13:57 by reducing the count of sales that are on the books. So now we have that, and we have these calculations, so

00:14:07 this combination of all these things becomes this best practice content, where we have, yes we have a model,

00:14:12 we have some dashboards, we have some reports, we have these planning inputs stories, and then we have,

00:14:16 what do we have? We have some calculations. And those calculations, just so you know,

00:14:20 if we were to take a look at those, if I now browse and I go into

00:14:26 Data Actions, which are these calculations. And data actions now have, and I can...

00:14:31 I can pull these up. Data actions are a bit of script,

00:14:34 often called logic that actually allow us to do calculations.

00:14:41 And if I come down here, and let's go to here.

00:14:48 There's some modules and these are executed. And this code now runs, and actually think about it,

00:14:54 the simplest one I could think of is that it creates data off of other data is that here, you know,

00:14:59 this is now taking an opening balance, looking at the previous balance, and adding it

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00:15:04 to actually do carryforward. So it's actually doing a carryforward calculation.

00:15:07 That has to do with, I've just planned... What did we show earlier? Property and plan?

00:15:12 I just added a five million dollar asset. I had 10 million at the beginning of the month.

00:15:17 Now I just added five million. That means my ending balance needs to be...

00:15:21 15 million, right? 10 plus 5 is 15. So this does that carryforward.

00:15:25 It looks at the prior balance, it was 10. It looks at my change, that was five.

00:15:32 And now it calculates and stores an ending balance, which is 15, and then it takes that 15, and the next month,

00:15:38 that's the new opening balance, and so this carryforward. And so we actually have this carryforward logic,

00:15:43 and we have these types of things built for you. This is an example,

00:15:46 even if you don't want to use this script exactly, that by downloading this content,

00:15:50 when you go to do it as a reference point, even if it's not going to be your starting point,

00:15:54 you can beg, borrow, and steal from here. Look at this content, look at this, this code,

00:16:00 and you can actually just drop it into your system and leverage it because we've already kind of had

00:16:06 some of this key scenario solved. And it does not require code to do calculations on reports.

00:16:12 It does not require code to do... because you can do model-based calculations by the way.

00:16:19 And then to actually write these reports. The one place it takes this little bit of code is that

00:16:24 if you want to create data within the database, which is the planning database,

00:16:28 based off other planning inputs, then there's a little bit of what's called script.

00:16:33 It's almost like a macro in Excel that actually creates data, that populates data for you, so

00:16:39 it's as if you input the data yourself. So again, in the example of carryforward, I put in one number,

00:16:46 then the system looks at the prior number, takes the number that I just put in,

00:16:50 and then creates an ending balance. That's now doing that on my behalf.

00:16:54 So I don't have to keep doing that or creating, you know, copying in my Excel formula,

00:16:58 keep all these formulas, no. The calculation is kind of going to roll forward on its own.

00:17:02 So that's pretty much what you're seeing, and you've now seen a demonstration of

00:17:09 the business content import. You've now seen a demonstration of the modeling.

00:17:14 You've now seen the dashboards. You've now seen the reports.

00:17:18 And you've now seen the input forms and you're getting a feel, and then ultimately the calculations.

00:17:23 When you say, what do I get when I import content? You can now say, I am getting this model.

00:17:28 I'm getting three report styles, and including an input, and then I'm getting a baseline calculation.

00:17:33 So if we go back to the presentation, you will see that in this we have now seen

00:17:40 the model itself. We have seen the overview, which is the dashboard,

00:17:44 we've seen the reports, which were the tabulars, and we've seen the inputs, which is what you just did for planning.

00:17:49 And now you have these calculations behind the scene here with a sneak peek at those.

00:17:55 We also have a reference point to that Best Practices Explorer right here. And within your analysis here,

00:18:03 just be aware, as you look at this design of this model, you'll now see a link to this scope item 2FM.

00:18:09 This is a hierarchy that we've created inside of S/4HANA to help with your account groupings.

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00:18:15 And so if you're a new SAP S/4HANA Cloud customer, you can actually implement scope item 2FM,

00:18:21 which will help take the 900 accounts that come with SAP S/4HANA and put a structure on them that that'll be friendly to financial planning and analysis.

00:18:29 You'll find some of the other hierarchies that exist inside of S/4HANA are really legal based.

00:18:34 And what you're seeing here is that you're going to see that these are more friendly to FP and A.

00:18:43 So it has a grouping of travel, a grouping of office, employee expenses,

00:18:46 a grouping is defined. Some of those things you saw.

00:18:48 So that way, what you just saw now is not a demo. This is a solution that's on the market.

00:18:53 You can import, by the way, at no cost, the content itself is free.

00:18:57 Leverage this hierarchy structure in accounts, bring it over, and that's going to help you adopt this content faster,

00:19:04 plus you'll be able to take advantage of the work that we've done to take 900 accounts

00:19:09 and put a friendly financial planning analysis spin on them, using scope item 2FM,

00:19:14 which ultimately creates a financial services version. So let's go through after this demo,

00:19:22 let's go ahead and after the demo and go to key takeaways here. What you were looking at today is the flagship model.

00:19:29 At the top of the pyramid, if you go to the prior week, you'll see that pyramid,

00:19:33 and that pyramid explains to you how financial planning and analysis for SAP S/4HANA Cloud is ultimately the top of the pyramid.

00:19:40 It integrates to both SAP S/4HANA, cloud and on-premise and hosted solutions.

00:19:47 This flagship model is considered to have best practices. Where do we get these best practices?

00:19:52 We get them from partners, we get them from customers,

00:19:55 and we get them from our own internal insight. And we get them from experience,

00:19:59 from consultants and customers that are implementing just like you. Why not take advantage of that experience?

00:20:05 And that design that we've actually delivered is for the SAP S/4HANA customer. If you're looking at SAP Analytics Cloud for a non-SAP S/4HANA Cloud,

00:20:14 this solution probably is not for you. And it's free but you're willing to download and take a look at it,

00:20:19 but it's really being focused on you. And you can see the care and the thought

00:20:25 and really experience that's behind here to show you how to do P and L, balance sheet, and cashflow reporting

00:20:32 in an SAP S/4HANA sense, inside of SAP Analytics Cloud. And then finally, this entire solution really can do

00:20:40 baseline cost center and profit center planning, plus balance sheet and cashflow.

00:20:45 Those are the requirements it's meeting. In other solutions, you are going to see that we are

00:20:51 going to do sales planning and workforce planning. But if you're looking for some of these core things,

00:20:55 I suggest you look at this, you can also contact us. You can also look for a blog online

00:21:01 that explains some of this. And SAP will support your adoption of this.

00:21:06 So if you have questions on it, you can ask. And so that's our key takeaways for this.

00:21:12 I really appreciate your time. This was an introductory session to help you understand

00:21:19 what is content, what are the pieces of this content? And I really appreciate you

00:21:25 sticking around here for session five, and I will see you again in the next session, which is session six.

00:21:33 My name is Mark Burke, again from Palo Alto, California. Thank you very much.

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00:21:38 Have a good day.

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Week 3 Unit 6

00:00:05 Hello and welcome back to our session, unit six for sales planning for SAP S/4HANA using

SAP Analytics Cloud.

00:00:15 My name is Mark P Burke. I am a product manager for SAP S/4HANA Cloud

00:00:21 and I'm coming to you from Palo Alto, California. And I welcome you to this session on unit six.

00:00:27 You'll remember in unit five, we talked about financial planning and analysis

00:00:31 for SAP S/4HANA Cloud. That is our flagship for the overall planning process

00:00:37 of financial planning for SAP S/4HANA customers. It's at the top of the pyramid there,

00:00:42 and right below there now is the sales planning model, which we're going to introduce you to today in this session.

00:00:48 And the sales planning model is a supplementary model that supports the overall planning process,

00:00:53 allowing you to do sales planning by customer and product in more detail

00:00:59 than you can up in the financial planning process, and it supports your sales planners.

00:01:04 So let's go ahead and get started, thank you. Now, similar to financial planning and analysis,

00:01:09 we have sales planning for SAP S/4HANA Cloud, which is made up of the planning, analysis and integration components.

00:01:17 There's content here that now is shaped around how sales are recorded in SAP S/4HANA

00:01:23 and allows you now to analyze those sales and then go forward and plan, forecast, and budget them.

00:01:30 It also handles the integration between SAP Analytics Cloud and SAP S/4HANA Cloud.

00:01:37 Now, when we talk about sales planning, the definition really is you have a price for a product,

00:01:42 you have a quantity that you wish to sell, and then you multiply the price times the quantity

00:01:48 to get revenue, okay? And then you actually have the ability

00:01:52 when you're set pricing to have a gross price, and then make adjustments to it

00:01:56 so you can have a net price. So if you put something on sale,

00:01:59 some type of trade promotion or a two for one sale, you can actually have a gross price and a net price.

00:02:05 The difference there is sales discounts. Then you subtract out a cost of goods sold at a standard.

00:02:11 This is not the place where you actually develop the standard,

00:02:14 but this is where you reflect the standard so that sales planner can understand

00:02:18 that as they set pricing, they will also have an impact of the cost of the product

00:02:23 to see what's called the gross margin. So if you want to kind of equip...

00:02:27 What the equal to sales planning is is gross margin planning, which is gross sales, less your discounts,

00:02:36 comes to your net price, less your cost of goods sold leads to your gross margin.

00:02:40 And all of that is driven by volume because one of the analysis components you're going to have

00:02:45 is that when you see revenue growth, is it because we sold more

00:02:49 or is it because we increased price? And you'll be breaking that down.

00:02:53 And that's a key part of understanding your sales process and this model, this environment will help you do that.

00:03:00 So you have a model based on the sales data in SAP S/4HANA, which includes now customer and product, and also plant.

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00:03:09 And those three components together will help derive a profit center.

00:03:13 And then you will actually then have your volume in here. And you'll be able to see if I change my volume,

00:03:20 what happens to my revenue? If I change my price, what happens to my revenue?

00:03:24 If, as I plan my revenue, what is my gross margin after I subtract cost of goods sold?

00:03:30 So you have these levers that you can control. You're going to be looking at your actual sales

00:03:34 and you're going to be planning your future sales, and you're going to be comparing actual to plan, and so on.

00:03:40 So you have this and you can see those components of planning, analysis, and integration.

00:03:45 Now, the way that we deliver this in content is parallel, is very similar to how we do this

00:03:50 with financial planning and analysis. This is a supporting model in that process,

00:03:54 and it's shaped to work hand in hand with that top-level model.

00:03:58 And so you have this data source, which is a very similar data source

00:04:02 to the financial planning data, but now the sales planning data comes out.

00:04:06 We introduce customer and product and plant in a model called the sales planning model.

00:04:11 And we also enable currency ANA, just like we do up in the financial planning model.

00:04:16 We have three stories that are unique to the sales planning process,

00:04:19 but they are shaped the same way. We have an overview story,

00:04:22 which includes visualizations and dashboards, a reporting story, which includes the tabular reports,

00:04:28 and then we have an input story, which is where the planner actually does their inputs - at what prices,

00:04:35 what quantities, and then ultimately, they can reflect what the total revenue is in their plan.

00:04:41 And so then we have these calculations. So the kind of calculations we need is that, yes,

00:04:45 the planner inputs price, then they also input quantity. Then we need to multiply price times quantity

00:04:51 to get to revenue. So these calculations here in the middle

00:04:54 actually do many of those calculations, okay? And so now how do we shape this model?

00:05:00 This model is shaped, it looks very similar to the financial planning model,

00:05:04 but you're going to notice some small differences, including the introduction of the customer dimension,

00:05:09 the product dimension, and the plant dimension. We do not use functional area here

00:05:13 because what we can do is after doing our planning in the customer model, we can go ahead and push it up

00:05:18 into the financial planning model, leave the customer and product and plant behind,

00:05:23 put it into the financial planning model, and then we can actually derive functional area

00:05:26 at that point if we want, because we really don't need it

00:05:29 as part of the sales planning process. So these models are meant to integrate to each other,

00:05:34 where you're passing data in SAP Analytics Cloud from one model to the other,

00:05:38 leaving detail behind based on this. And refer back to the graphic

00:05:43 in the first unit of financial planning, which will show you how these models

00:05:47 all relate to each other, okay? And now we also have time and version - and version, remember,

00:05:53 is how we keep track between actuals and plan. So let's go ahead and see our demo of sales planning.

00:06:01 So before we go to that, we'll remind you that there's the SAP Best Practices Explorer,

00:06:04 which is a publicly available page that explains scope item 4DP for sales planning

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00:06:11 for SAP S/4HANA, and it actually shows the business benefits, what versions you need, key process flows covered.

00:06:18 And again, critical to this is the documentation, which is our test script, which also acts as a user guide,

00:06:23 but also how to import this model into your environment. So using the same guide that showed you

00:06:29 how to import this model for financial planning, and then how do you import the actual sales data into your model?

00:06:36 And we show you that step by step. And so you have these guides for implementation, okay?

00:06:41 Now, is this a unique model? Yes, this is a unique model.

00:06:45 We actually deliver a sales planning model that is independent of the financial planning model,

00:06:51 but they are integrated and meant to integrate. And they share some dimensions,

00:06:55 for instance, the company code dimension that's in the financial planning model

00:06:59 that you saw in the prior unit is the same company code dimension

00:07:02 that we're using here in the sales planning model. So we actually,

00:07:05 once you update one company code in the dimension, it'll actually update both models with that master data.

00:07:12 And now let's remind ourselves of how we get to content. So let's talk about sales planning content.

00:07:18 Now in that sales planning content, I will go to here, I will open, I'm in SAP Analytics Cloud now,

00:07:25 and I'll go to the Content Network, and I will go ahead and I will select...

00:07:31 I can come to here and I can search if I want, and I could say "sales", okay?

00:07:36 And you'll see then Sales Planning for SAP S/4HANA Cloud. I can click on that.

00:07:42 And this is very similar, just using a different model for the financial planning,

00:07:45 you'll see what the sales planning is all about. Again, talking about plan and price and cost of goods sold,

00:07:51 and then you'll see the import options. And then you can select what you wish to import

00:07:55 and then click this button, and that will transfer this content

00:07:58 from an internal SAP instance to your customer instance or partner instance,

00:08:03 and you'll be able to use this content. So that's how you acquire it.

00:08:06 And we have a guide on that page that's referenced in this documentation

00:08:11 that will actually explain that to you. Now, what is in the sales planning model?

00:08:15 So you look at the sales planning model. It's going to look very much like the financial planning model,

00:08:19 except we've shifted some of the dimensions around. We have shared a company code dimension.

00:08:24 You don't see cost center here because cost center dimension, as an example, it's not used in sales planning.

00:08:30 And the definition of sales planning is pretty much gross revenue, less sales discounts

00:08:36 equals net revenue. So then you're planning net revenue,

00:08:38 and then you subtract out standard costs of goods sold to get to a gross margin.

00:08:43 So often, the word that's used to help with sales planning, it's gross margin planning at a standard costs of goods sold.

00:08:51 This is not the place where you develop that cost of goods sold. This is where you actually just utilize it

00:08:55 as part of the sales planning process. It's an input to the process,

00:08:59 and the planner gets to see what the gross margin is when they actually plan the revenue.

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00:09:05 And that's kind of a standard for salespeople to be able to have a standard cost of goods sold

00:09:09 that's nice and static during the sales planning process. It says that, if I'm selling tablets for $600,

00:09:16 then I'm going to be hit with a $200 cost of goods sold, which means my gross margin is $400.

00:09:22 They'll be able to see that in this model because we're going to track the price,

00:09:25 we're going to track the quantity, and get to the revenue. And then we're going to put in a standard cost of goods sold,

00:09:30 which will then reflect the gross margin in reporting. And so this model is made up of these dimensions.

00:09:36 And then we import in transaction data, which is your sales data,

00:09:40 how much have you sold, to what customers, against what products, against a certain company code,

00:09:45 and then in what currency, and you'll have that. And then remember the three objects

00:09:50 that we deliver - overview, which is dashboards, reports, which are tabular,

00:09:54 and then inputs, that are the way that you input the data. And so what we have is an overview,

00:10:00 which lets you do dashboarding. That dashboarding can let you look at pricing.

00:10:04 It could look at, first of all, net revenue and volume, which are the key things.

00:10:07 Net revenue is gross revenue, maybe $5 per unit, less any discounts, maybe you take a dollar off,

00:10:14 just really charge $4 to the customer because it's on sale. And that net revenue then reflects it.

00:10:19 And then you have the volume, and now you have multiple units of measures,

00:10:23 so you have standard units of measure. And so we now have the ability to look at revenue

00:10:28 and volume and gross margin, which is pretty much revenue less cost of goods sold.

00:10:34 And then you have variance to last year, variance to plan, and then you want to compare actual to plan.

00:10:41 And then when you start getting into sales trending, and so on, you can use something.

00:10:44 This sample data is awful flat, but I can come into here and I can right-click

00:10:50 and I can use some of the SAC features here to do like smart insights.

00:10:54 And I can go into here and immediately an algorithm will run, and it'll actually start drawing out some conclusions

00:11:00 from that data series. And you can kind of see, here we are the bike company

00:11:04 about how tricycle tires are driving business versus some of the other things.

00:11:09 And so you have this ability to use some of these smart insights

00:11:12 simply by getting your data, again, this could be against multiple sources,

00:11:16 into the system, and then really analyzing this data before you start your plan.

00:11:21 Now, these are some of the visualizations that are delivered. Then we can go back to our tabular.

00:11:25 You may recognize these formats from financial planning analysis,

00:11:29 actually, these are meant to work together. You now have something here that shows the volume,

00:11:34 which is how many units did I sell, then the gross margin,

00:11:37 which lets me drill into components of the gross margin, which include the net revenue, which is made up of sales,

00:11:44 gross revenue, less sales deductions. And then I have gross margin per unit.

00:11:49 That gross margin per unit is pretty much how much money am I making on the bottom line when I sell a unit

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00:11:56 less whatever it costs me to make that unit, but before any overhead allocation and before allocations.

00:12:01 This is all pre-allocation numbers, and this is telling me that I'm making about $30 per piece

00:12:07 off of 7,362 pieces. That's generating, ultimately $221,000 in gross margin.

00:12:15 And then made up of these revenue and COGS (cost of goods sold) because revenue minus COGS equals gross margin.

00:12:23 So you're able to see these trends. You can look at those, you have a trend report.

00:12:28 Remember this report that we have in financial planning analysis is very valuable. Here's where you can actually look at...

00:12:33 I can look at actual versus plan. This is my ability to compare actual to plan.

00:12:37 That's one of the requirements for planning. But also, I can easily configure this

00:12:41 to be actuals to actuals and look at year over year. So just made before I start my planning process,

00:12:46 I want to see, well, how does 2020 compare to 2019 in actuals so I can understand my growth rates

00:12:52 so that I can also use some of those similar growth rates for the rest of this year, maybe into next year.

00:12:57 So this ability to actually, in one report, do your variance analysis,

00:13:01 actual versus plan, actual versus forecast, maybe forecast versus budget,

00:13:05 but you could then also do this actual versus actual, okay? So that's kind of your reporting.

00:13:10 You've seen the monitoring, the reporting, and now the input forms.

00:13:13 So what are the things that the user needs to input in the sales planning process,

00:13:17 and what is it that's unique about this compared to financial planning and analysis? You may remember in financial planning analysis,

00:13:23 we had a profit center planning process that lets you plan gross margin,

00:13:27 but you really just did it by profit center and by time - that was as much detail as you could have.

00:13:33 That's a great thing for reporting. And it's also a great thing for setting targets,

00:13:38 maybe the CFO is setting a profit center target. But now you come into here.

00:13:41 It's kind of the nitty-gritty detail of sales planning. I need to know what product I'm planning,

00:13:48 what customers I'm planning, and then, because customers like maybe a big warehouse store

00:13:53 will have a lower price than maybe your corner grocery store

00:13:57 on a small street in a town, which will have a different price. So you actually are planning by customer and by product.

00:14:04 We're introducing plant or the distribution point here because that's what comes through on S/4HANA,

00:14:11 is that it requires customer, product, and some type of distribution or plant

00:14:15 to understand what profit center that data belongs to. And that's one of the things we want to do here,

00:14:20 is derive profit center from this input so that we could actually feed this data

00:14:24 up in the financial planning process against the profit center.

00:14:27 And so you have your actuals here with the black bars. You can look at your pricing trends,

00:14:31 and then you can come in here and say, well, I want to go ahead and change this to a $700 price

00:14:36 as of January. This is a rolling period.

00:14:39 I can go ahead and copy that across. And then I can start putting that in.

00:14:43 Now, that's one of my inputs, which is price, okay? And as I do those - I'll these exit out of that right now -

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00:14:52 as I make those changes with price, I can also then go change my volume.

00:14:59 And you could make these into one schedule if you wanted to plan price and volume together,

00:15:03 because they do go hand in hand. If you increase your price,

00:15:05 you're likely going to reduce some of your quantities. But now I can go in here and make this similar change

00:15:09 to my quantity. I could look at my trend and carry that trend forward,

00:15:13 which is what we do, pretty much pre-populate for you. And then you could actually,

00:15:18 you could apply some growth rates to this and build it up. And then you have the option to review sales deductions,

00:15:24 and this is all on a percentage basis. So this is like a 15% off.

00:15:28 This means that my bike is set, the price is set at one level,

00:15:33 but then I offer a 15% discount, maybe for a certain customer or a certain segment or a certain region.

00:15:40 Then these are all on a percentage basis. And then these will then,

00:15:43 all the calculations in the background will apply this. And then you'll have your cost of goods sold.

00:15:47 This can usually be an input to the process, meaning that it's been developed by the manufacturing group

00:15:52 down the supply chain. They're supplying a standard cost of goods sold

00:15:55 that's been signed off. And now you're supplying this to the sales planning process.

00:15:59 There is the ability to do a "what if" here, what if you change, but in general,

00:16:02 sales planners do need the sales, the cost of goods sold

00:16:07 as part of their sales planning process, but they do not actually change this

00:16:10 in the sales planning process, but this allows us to actually review it

00:16:15 and then that'll help us ultimately to do our gross margin reporting.

00:16:18 Here, you can see a little P and L. And we're doing a lot of this to show

00:16:22 the gross margin dollars and then putting it on a per unit basis.

00:16:26 And now what will happen as you get to more complex scenarios is you'll have different units of measure.

00:16:31 If you're a soft drink manufacturer, you might have sixpacks and two liters,

00:16:35 and you need to put everything into gallons, for instance, or into liters, or into quarts, or whatever it is.

00:16:40 And so this view would actually keep everything at its base unit, but then we can have something called a standard unit P and L,

00:16:47 which puts everything onto the same unit. You control what the conversion factors are,

00:16:51 just like you do on currency. And now you'll be able to put your units

00:16:55 onto a common unit of measure that helps you with analysis. And so all of this comes together through this model

00:17:04 and shows you how to do this. And so remember, now we have the model,

00:17:08 we deliver the dashboard, we deliver the tabular reports, and then we have these input forms,

00:17:15 and then finally, we have those calculations. And I just want to pull up one of these calculations.

00:17:19 We go to Data Actions here, and I'll go ahead and leave this data behind.

00:17:24 And if we go to the data action here, maybe I'll pull up sales,

00:17:27 I can open up one of these that says calculate plan. And you'll see there's a variety of calculations

00:17:32 that are taking place here, including let me calculate my plan revenue.

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00:17:36 So I'll come to here. And if I calculate my planned revenue,

00:17:39 I will see that I am looking up the price and I'm looking up the volume

00:17:45 and I'm multiplying that and I'm posting it to a revenue account. And that revenue account

00:17:49 is a revenue account that's used in S/4 to record revenue for your actuals.

00:17:54 So one of the things that's happening here is that we're making the full loops,

00:17:57 that you actually have the ability to plan your price, plan your volume,

00:18:02 and then posting it to an S/4-based revenue account so that when your actuals come through,

00:18:08 we can compare at the account level or more at the aggregate gross revenue level,

00:18:13 net revenue level, whatever you want. We compare actual to plan by putting the plan on the same basis as the actuals,

00:18:22 as the same storage on the same GL account. And so that's a critical part

00:18:26 of being able to do the variance analysis. So we've thought of all these things for you.

00:18:30 And as we go back to the presentation here, let's go through some of the key things.

00:18:37 So sales planning for SAP S/4HANA is a supporting model.

00:18:41 It doesn't replace the financial planning model you saw in the prior session. It sits right under it.

00:18:46 And it is an optional piece that you can implement. If you want to do high-level profit center planning,

00:18:51 you can do that in FP and A, but when you want to do detailed sales planning,

00:18:54 you come down and implement this model. It is a standalone model,

00:18:58 but it is integrated and meant to pass data up into the financial planning model.

00:19:03 We actually show you how to do that and actually deliver the data actions to do that.

00:19:09 The supporting model is based on best practices, based on SAP S/4HANA.

00:19:13 The design is based on planning requirements, general worldwide planning requirements,

00:19:19 which is usually, you want to plan price, you want to plan gross price,

00:19:23 you want to plan some discounts. You want to plan trade promotions,

00:19:27 and then you want to include the standard cost of goods sold, and then you want your planners to be reviewed

00:19:33 and really drive gross margin before any overheads and before any allocations.

00:19:38 And that's what this is about. And then the components

00:19:41 that we do include are price, quantity, and standard COGS, and then the key dimensions are customer and product.

00:19:47 But remember, we throw a plant or distribution point in there pretty much to allow for the regional derivation of profit center

00:19:54 because profit center requires that dimension in order to do derivation in actuals.

00:20:00 So we need it in the planning process to do the same here. And so what you have

00:20:04 is a fully fleshed out sales planning process here, delivered in a model that can help you plan your business.

00:20:14 Now that's our conclusion here of unit six. I look forward to seeing you in the next unit on workforce planning,

00:20:23 which is another component, in unit seven. Thank you very much for your time.

00:20:27 Talk to you soon.

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Week 3 Unit 7

00:00:05 Hello, this is Mark Burke and welcome back. I'm in Palo Alto, California,

00:00:10 and we're going to go ahead and cover unit seven, the last unit of the week,

00:00:16 workforce planning for SAP S/4HANA using SAP Analytics Cloud.

00:00:22 So thank you for coming back. Let's talk about workforce planning.

00:00:26 You've already seen sessions on financial planning and analysis.

00:00:30 You've seen a session on sales planning, and now we're introducing the next module,

00:00:34 which is the last one of the week, workforce planning. And workforce planning is unique in this case,

00:00:39 in that we are not only connecting to SAP S/4HANA Cloud, but we're also connecting to the HR system,

00:00:47 SAP SuccessFactors. Why do we do that?

00:00:51 We need to get accurate headcount information and the latest salary from SuccessFactors,

00:00:57 which is pretty much the HR solution from SAP in the cloud. Now this SAP Analytics Cloud model that we're building around workforce planning

00:01:08 integrates to those two pieces. So we pull data from S/4HANA,

00:01:11 mostly financial data related to salaries and employee-related expenses,

00:01:16 and then we also pull data from SuccessFactors, bring it into SAP Analytics Cloud,

00:01:20 and then create a singular workforce planning experience using that combined data.

00:01:26 So this is a good example of combining data for use in SAP Analytics Cloud

00:01:31 from two different data sources. Now, one of the prerequisites for this

00:01:35 is that SAP S/4HANA and SAP SuccessFactors are already integrated to each other at your customer.

00:01:40 They should be sharing cost centers. They should be, the payroll from SuccessFactors

00:01:46 or whatever source should be feeding into your financials, and we should have a like set of company codes,

00:01:52 cost centers, and accounts even. And so if you have that,

00:01:56 then SAP Analytics Cloud can consume that data and bring it together.

00:01:59 And be aware, if you have a scenario where you don't have all that implemented,

00:02:03 you could still download this content and look at some of the methods and techniques we use to do headcount planning.

00:02:09 And so now we have a headcount planning model that brings in data from two sources.

00:02:16 And then we have... The things that it plans for employee-related expense

00:02:20 include salary and wages. We have bonus, we have benefits,

00:02:24 but then we have things like travel and office expense that actually are related to the number of employees.

00:02:31 And so once you plan five new people, your travel budget will go up unless you want to make some adjustment to it.

00:02:38 And then again, the integration part of this, and first of all, the planning and analysis go together.

00:02:44 But then the integration part of this is bringing together that little bit more,

00:02:48 a different scenario that you're bringing in, two data sources into one version,

00:02:52 one model in SAP Analytics Cloud. But be aware this model,

00:02:56 similar to the sales planning model, is a sub-model underneath financial planning analysis,

00:03:01 and it actually feeds its data up into financial planning and analysis.

00:03:06 Now, two new dimensions are introduced here, job and location.

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00:03:11 Job represents a job classification in SuccessFactors, and location could be something like a city,

00:03:18 or it could be an office building, based on how you set up SuccessFactors, okay?

00:03:23 But those two dimensions, job and location, are not in SAP S/4HANA,

00:03:27 and so this melding of data comes together to actually bring it together here, okay?

00:03:33 And so you're now planning your headcount. "Hey, how many people do I have?"

00:03:38 And then the expenses that have to do with those people. And it's setting this up to do both analysis

00:03:43 and the planning for that, understanding what is your headcount growth in your actuals,

00:03:47 understanding what is your employee expense growth in your actuals, but also performing some planning, and then turning around

00:03:53 and doing variants of actuals to plan. And again, how do we deliver that?

00:03:57 We deliver that very similarly to how we did sales planning and financial planning analysis, as the sub- model.

00:04:04 One unique thing is at the bottom here, we have two data sources.

00:04:07 We have SuccessFactors and we have SAP S/4HANA, but we still have one model

00:04:13 with currency conversion enabled. So one workforce planning model.

00:04:17 And then on top of that, we have four stories we deliver. There's one extra story here,

00:04:21 and I'll explain that here in a minute. But one of our stories is the overview,

00:04:25 that actually shows you the dashboards. One of the stories is reports,

00:04:30 that shows you the tabular views that we're used to from the other two applications.

00:04:33 And then we have an input story, which is where you input your data.

00:04:37 But then we have this new position input story, which is a supplement to the input story,

00:04:41 really to cover a place where you, when you're hiring somebody into a new location,

00:04:47 or a new role, and that role or that location has never existed before.

00:04:51 For instance, you're opening an office in South Africa for the first time,

00:04:56 then you want to use this new position form to really create that for the first time,

00:05:01 because there's some extra requirements when you're adding in a new person

00:05:06 or a new location into this database. And so then we have the calculations,

00:05:11 and now the calculation engine is doing things like, "Hey, I've planned 10 people,

00:05:15 I've paid them on average $100,000 a year." Then that 10 times 100,000 becomes a million dollar annual salary budget.

00:05:24 And so these calculations are already set up to take number of people times salary,

00:05:29 and then generate a salary budget. And some of that's spread over 12 months, so divided by 12,

00:05:35 and that gives you an annual total and the monthly individual pieces you need

00:05:40 for some of your variance analysis. And so very similar structure to sales planning,

00:05:44 the introduction of job and location. And with that, here's the design.

00:05:49 You have company code and you have cost center, which are shared with the financial planning and analysis model.

00:05:55 Company code is also shared with the sales planning model, but then it introduces job and location,

00:06:00 which are specific to the SAP SuccessFactors system. The accounts then, most of them come from S/4HANA,

00:06:06 and then you have our required dimensions and private dimensions.

00:06:10 The required dimension is the version which keeps track of... We have actuals from SuccessFactors,

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00:06:16 which tell me how many people are in the company, actuals from S/4 which tells me what salaries and bonus

00:06:21 and benefits and travel and office we pay. And then as we do input against planned count versions,

00:06:27 then you will have a plan version of how many people and a plan version of what the expenses are,

00:06:33 and then you can compare actual to plan. It's all set up to do that, and away we go with the demo.

00:06:42 So when it comes to the demo, I'm going to start and first show you

00:06:44 the SAP Best Practices Explorer. The Best Practices Explorer is where you go to get to...

00:06:50 how to implement this. You could actually look at this and you'll be able to see

00:06:55 the business benefits, the key process flows, the test script, there's also a user guide.

00:07:00 We have this, if you recall, this one guide, 2JX, to show you how to import the model.

00:07:06 This will tell you how to import this workforce planning model to your instance.

00:07:10 We also have how to import the data. And this guide, it covers both the SuccessFactors data

00:07:17 and the S/4HANA data that you need to import in. Remember with that prerequisite,

00:07:22 that those two are already integrated to each other, meaning that S/4HANA and SuccessFactors

00:07:27 are sharing master data, and they're sharing some financial data.

00:07:32 And then that allows SAP Analytics Cloud to bring it together here.

00:07:36 And so you have that, and that's covered in those guides.

00:07:40 Now, when it comes to the solution itself, we're going to go ahead,

00:07:43 and I'm logged into SuccessFactors here. I'm going to go to the Content Network,

00:07:51 and then I'm going to go ahead and search for sales. There's a lot of content here.

00:07:56 And then you will see here Sales Planning for SAP S/4HANA. I'm going to open that up.

00:08:03 It has my descriptors, some import options about overwriting and so on.

00:08:07 And then I could select what I need and then import. And that guide we have there actually explains that,

00:08:13 and so on the Best Practices Explorer. And so what you have now is,

00:08:18 that's how you're going to import the content, into your own instance of SAC.

00:08:23 But now we go through some of the other things that you want to be able to see, and which includes the model.

00:08:29 So let's talk about the model. So the model here,

00:08:32 we will open the model. And the model for workforce planning

00:08:37 includes these two new dimensions. First of all, two shared dimensions.

00:08:41 So we have cost center and company code, which are already in the financial planning model.

00:08:45 Once you update those, it'll also make it available in workforce planning,

00:08:49 and then you actually have location and job class. Those are two dimensions that you're going to connect

00:08:54 to SuccessFactors and pull those in. And then you have accounts,

00:08:58 most of which are going to come from S/4HANA, which is, those are your physical accounts

00:09:03 that you're going to use for storing. You can see here, travel expenses,

00:09:08 payroll, and so on. And if I go to the hierarchy editor,

00:09:13 the hierarchy editor will tell you kind of how the structure works, where you have all employee expenses,

00:09:19 which is a node in FP and A, with payroll and benefits, other expenses, travel, and all other employee.

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00:09:26 You're going to end up planning all of that here in the workforce planning.

00:09:30 And remember, that's all part of that FPA1 hierarchy we talked about in the first and second planning sessions about prerequisites.

00:09:41 So you've got your model here, and that's the design with these dimensions

00:09:46 that are coming a little bit, a couple of them are coming from S/4,

00:09:50 a couple of them are coming from SuccessFactors. And this is a great example of how SAP Analytics Cloud

00:09:55 can bring two systems together, and turn it into one planning experience.

00:10:01 So now we go to some dashboarding. We have some dashboarding here where you can actually see

00:10:07 the trends in your analytics and how things are looking over time.

00:10:11 And really, maybe by location or even by job. You can see peaks and valleys in your hiring plans,

00:10:21 and what your headcount is made up of, and then you can actually compare that to plan.

00:10:27 And then back to some of the more standard ones you can look at, here's my change in FTE.

00:10:32 And by the way, FTE means full-time equivalent. So if it's 1.0,

00:10:37 that means that somebody is a full-time, they're 40 hours a week,

00:10:41 but if they're working half-time, then they're .5. So they're like .5 of a headcount.

00:10:45 And so the FTE means everybody's on a full- time equivalent, and it's really those numbers reflect their role

00:10:52 and how many hours they spend. And now you have a company...

00:10:57 I could break this up by company code, I could break this up by cost center,

00:11:00 and I could say, "Oh, my cost center, 40 people have been added to the consulting unit A in Germany,

00:11:08 and that's where my headcount growth is really coming from", you can see here.

00:11:12 And then you have this ability to look at trending. So these are all the analytics features

00:11:16 that are very valuable as part of SAP Analytics Cloud. Down here I have employee expense over time,

00:11:23 and against the number of employees. And so you can see that by quarter,

00:11:28 you'd be able to drill into months and so on. Now in reporting, in the reporting side,

00:11:34 we're going to go ahead and look at... You're going to have a very unique structure here

00:11:38 because what you're going to see here is you're going to see right off that we have number of employees,

00:11:43 that's sourced from SuccessFactors, and then you also have

00:11:48 the employee expense item here, and that's coming from SAP S/4HANA.

00:11:55 So the top half is coming from SuccessFactors, the bottom half is coming from S/4HANA.

00:12:01 And so that's showing you the blend of data here that's taking place within this module

00:12:07 of SAP Analytics Cloud. And then inside of here we can also go to a KPI report,

00:12:16 which puts a lot of things on a per unit basis. So you can say salaries per employee.

00:12:20 You could look at travel per employee, that's a nice metric to know.

00:12:24 It's not just your total travel budget, but how much on average is it by employee.

00:12:29 I could break this up by cost center, I could break it up by location,

00:12:33 and you'd be able to see these different aspects. Now, if I come down to Compare Time and Version,

00:12:41 that's the version that you'll remember that we had from the other modules where we are able to compare

00:12:50 actual to plan in this case. But I could also look at year over year, actual to actual,

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00:12:55 to say, what's my headcount growth? And I could say that,

00:12:58 "Hey, where's most of my change coming from?" And against maybe what cost centers,

00:13:03 maybe against what jobs, against what locations. Then the final piece here -

00:13:07 because you've seen many of these before, I'm just kind of showing you the unique blend -

00:13:11 is in the planning process. And the planning process is relatively simple,

00:13:15 it simplifies headcount planning. You actually start with your beginning headcount.

00:13:19 You can see here, in this case, I have one director of sales in this region,

00:13:26 in the Denver region. Maybe I need to really increase my sales.

00:13:30 So I showed you an example here, I was putting it in here. I put in 10 new hires and that bumped it up to 11

00:13:36 and that carried it forward. So what I'm doing as a planner is I'm...

00:13:40 We take your existing headcount and carry it forward. If you have 10,000 employees in your payroll,

00:13:45 the end of the actual periods, then we just carry that forward.

00:13:49 We show you a script that actually does that. It executes and brings those people forward,

00:13:54 says that, "Hey, those people will be here, unless you hire more,

00:13:58 unless you terminate or retire them, and/or if you transfer them to another division."

00:14:04 So your ability, you go into here and make these inputs here.

00:14:08 You can see that it's on headcount. You can see that then you could supply inputs on salary and merit.

00:14:13 So it has the latest salary that comes from SuccessFactors, and then you can come in here, and here we put in assumptions

00:14:19 around what percentage, and maybe your merit kicks in in August 1st every year,

00:14:25 so now you're going in here and changing the merit increase. Maybe the CEO is getting a high increase,

00:14:30 everybody else is getting three and a half. That's reflected here.

00:14:33 Your HR people might be the people that own this process, or it might be the individual cost center managers.

00:14:39 You can make the decision yourself, but this is the ability that, remember in the first tab

00:14:44 I plan the people, a number of people I'm going to have, and the second tab I'm now planning the average salary

00:14:50 against those roles - cost center, location and job classifications. And then the math, the calculations that we have will multiply this out.

00:15:00 Again, you might have 100,000 in salary here, 10 people in your plan,

00:15:05 10 times 100,000 will lead to a million dollar salary budget, and that will be reflected after you submit this data.

00:15:12 And so it pretty much walks someone through the process. Plan your headcount, then plan your salary and merit,

00:15:20 and then go in here, maybe HR controls some of this, but maybe some of this is centrally.

00:15:24 But these are now all things that are budgeted on a percentage of salary basis.

00:15:28 So bonus percentage, benefits percentage, payroll tax, overtime percentage, and payroll.

00:15:34 You put in the percentages here, then whatever you do on headcount, it'll...

00:15:39 First of all, headcount times salary will create a total salary,

00:15:42 then this percentage point will be applied to the total salary

00:15:45 to create the total benefits and bonus assumptions.

00:15:52 And then we have, in the last page we have the ability

00:15:55 to plan other aspects on a per person basis. So you can say travel per person.

00:16:00 What that allows you to do is you could say, we could automatically have this populated

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00:16:05 and say my trended travel per person for my director of sales is 2,800.

00:16:10 I've now bumped it up during the prior planning process to 5,000, but as you hire those 10 directors of sales that we did in the first tab,

00:16:18 then this'll be multiplied by 10, so my travel budget will go up.

00:16:22 Now, if you're hiring 10 people, and you don't think the travel budget should go up,

00:16:26 then you can put this down on a lower per person basis and it won't increase your travel budget.

00:16:31 But usually if you're going to add 10 salespeople, you need to add more travel budget.

00:16:35 This will all happen automatically. So what you're seeing here is kind of something

00:16:39 that's already been well thought out. The headcount goes in,

00:16:43 then we get the salary. Then we have some components that are related to salary

00:16:47 on a percentage basis, which is what we saw on the prior tab.

00:16:50 And then some things are put into this budget on a per person basis,

00:16:56 like travel and office and other expense. What is other expense?

00:17:00 Could be training. You might be training your new people.

00:17:03 And you have all these levers, so you can change all these levers.

00:17:07 In the end, we know we have these calculations. Remember we talked about the data actions in the past,

00:17:12 because here I've just walked you through. You did salary,

00:17:16 you did headcount, you did your salary,

00:17:19 you did your things that are based on a percentage salary basis, things that are based on a per person basis.

00:17:26 There's about 11 components, 9 to 11 components that you end up having these options to change.

00:17:33 And then at the end, it creates your employee expense plan. And then you push a button,

00:17:38 and that goes up into your financial planning process. So this has all been thought out.

00:17:42 The integration has been thought out. The sequencing of this has been thought out

00:17:47 and you're ready to go. And then we have from there a plan costs report.

00:17:54 This plan costs report is really for the planner, that after they've just done this,

00:17:57 it really details out, okay, now that I've done all that,

00:18:01 now that I've put in all these inputs, multiplied them all out, tell me what my budget is.

00:18:06 And they can come in here and they have a nice, clean way to look at by cost center,

00:18:10 by location, and by job. After all that, here is what my cost center...

00:18:15 This is how this is going to hit my cost center. And then once you have this,

00:18:18 then you can start comparing this to actuals down the road, as you make a new load of S/4HANA, a new load of jobs,

00:18:25 location headcounts from SuccessFactors, you can do this variance analysis.

00:18:29 And the last thing I'll show you here will be just the data actions.

00:18:33 We've talked about calculations, it's the last part. We've delivered a dashboard.

00:18:37 We've delivered a report. We've delivered input forms.

00:18:40 And now what you have is under here, if we come into here and then go to "wfp",

00:18:46 we can now see calculations. And so if we go to here to plan data,

00:18:52 we can see a variety of things that we're doing with plan data, which is calculate the total historical percentages.

00:18:59 This is kind of a thing that's looking at some of the, what's the historical travel per head,

00:19:03 and then it pre-populates that. So you, as the planner,

00:19:06 don't have to think about this from a blank slate. It'll say on average,

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00:19:09 you're spending 500 per person in travel. It'll pre-populate that,

00:19:13 and that's what this script does here. And then we have another script that takes the...

00:19:24 Let's go to that. If I go to calculate plan,

00:19:27 this is the one that multiplies everything out, and it says, okay, I'm going to look at the number of heads,

00:19:33 and then I'm going to look at the amount of the salary, and I'm going to multiply, salary times the number of heads,

00:19:41 and I'm going to post it to a salary and wages account. This is similar to what we talked about on the revenue,

00:19:47 it's going to go to a salary and wages account that actually the actuals come against, so that when the actuals

00:19:52 come in against that account, we can compare actual to plan. So this is all well thought out,

00:19:57 integrated back to S/4, SuccessFactors, okay? And so you now have a fully baked

00:20:03 workforce planning solution. Again, the content is free to consume

00:20:08 once you're an SAP Analytics Cloud customer. So let's jump back into our presentation,

00:20:15 and let's just go through the recap. Workforce planning for S/4HANA is again,

00:20:19 one of the supporting models for financial planning and analysis. Along with sales planning, workforce planning

00:20:26 supports the financial planning analysis. And in the future,

00:20:29 we will release capital planning, which will kind of complete the first part of this.

00:20:33 And then we plan after that to have strategic financial planning,

00:20:36 and that kind of completes our overall suite. The supporting model is Best Practices,

00:20:41 but remember it's also very unique in that it includes both SAP S/4HANA and SuccessFactors.

00:20:47 That's probably the most unique thing about workforce planning here,

00:20:50 is that it's blending two different SAP systems into one planning experience. And then the design is based on

00:20:58 common worldwide things that we've seen. For instance, plan your headcounts,

00:21:03 and then travel should drive from it. You may not have thought of that as being a factor before,

00:21:07 but in general, when you're adding people or subtracting people,

00:21:11 travel goes up or down. So why not make it a driver off of headcount?

00:21:15 And that's what we recommend here. And then workforce planning consists of

00:21:19 planning headcounts, salary/wages, bonus/benefits, and other employee-related expense.

00:21:24 So it's that entire node. If you remember up in financial planning

00:21:27 from the first session, we showed you how there was a node there called employee expense.

00:21:31 That employee expense node can be planned up in FP and A at a cost-center level

00:21:36 and at a high level aggregate by account. You could take a guess at how much salary and so on.

00:21:41 But by leveraging workforce planning, this solution, you're going to go deeper

00:21:45 and put it into the job and location level, really understand your headcount, and then push that button

00:21:50 up into financial planning analysis. And so now you have this integrated solution

00:21:55 with detail by job and location, down by workforce planning within the cost center details,

00:22:00 by account up in your FP and A process. And so thank you very much.

00:22:05 That is actually the end of this week. You will now have an opportunity

00:22:12 to do the weekly assignment based on the activity for this week.

00:22:16 We appreciate, I really do appreciate your time listening about this exciting area of planning.

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00:22:23 SAP Analytics Cloud is really helping customers plan better. And good luck on your weekly assignment

00:22:29 as you finish up this week. My name is Mark Burke.

00:22:32 I wish you the best and thank you very much for listening.

www.sap.com/contactsap

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