Liquidity Planning Starter Kit

A New Weapon in the Liquidity Management Fight

Marc Mertens
Partner
Deloitte Consulting

Why Improve Liquidity Planning?

I went to the ATM this morning and it said insufficient funds.

Im wondering, is it them or me

2011 SAP AG. All rights reserved.

Learning Points

Learn how the SAP BusinessObjects Planning and Consolidation application,

version for the SAP NetWeaver technology platform, can help you quickly
automate your liquidity forecasts and improve their accuracy.
The starter kit for liquidity planning, available for SAP BusinessObjects as a preconfiguration on top of SAP BusinessObjects Planning and Consolidation, helps
you align liquidity-planning goals with strategic business objectives to find
the best use for your cash.

Instead of starting with an empty planning and reporting application shell, you can
bring the starter kit for liquidity planning into the process and use the pre-built
components to enable a faster implementation.
2011 SAP AG. All rights reserved.

Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

What is a starter kit?

Presenting the starter kits functional scope

What SAP solutions is the starter kit a pre-configuration for?

Walking through the liquidity planning and forecasting scenario enabled by the
starter kit
3. Viewing a demo
4. Wrap-up

2011 SAP AG. All rights reserved.

Why Is Liquidity Planning So Important Today?

Tighter credit risk management of banking sector means more detailed cash
flow information requirements

Higher funding costs and pressure on working capital

Economic downturn and pressure on gross margins have increased added

value of effective hedging

The need to gain greater financial visibility and control pushed cash flow
to the forefront of corporate strategy.
Nasreen Quibria, Aberdeen Group. Source: Cash Management - What is best practice? FSN.CO.UK.
April 26, 2010
www.fsn.co.uk/channel_enterprise_financials/cash_management_what_is_best_practice

2011 SAP AG. All rights reserved.

Top Priorities for Treasurers

Liquidity and Cash Forecasting

The major uncertainties in the economic outlook mean higher funding costs
and uncertain revenues

Current cash forecasting features of Treasury IT systems are considered

insufficient
Treasury Priorities

Top Improvement Priorities

Treasury Technology

Liquidity Management
Implementing
New Structures
Liquidity Forecasting
FX Risk Management
Technology
SEPA

Source: 2009 global survey of treasury professionals conducted by Deloitte

2011 SAP AG. All rights reserved.

Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

What is a starter kit?

Presenting the starter kits functional scope

What SAP solutions is the starter kit a pre-configuration for?

Walking through the liquidity planning and forecasting scenario enabled by the
starter kit
3. Viewing a demo
4. Wrap-up

2011 SAP AG. All rights reserved.

What Is a Starter Kit?

Starter kits facilitate and accelerate implementation projects:

Starter kits are pre-configurations: prebuilt components in a starter kit enable a

faster implementation that supports best practices for better results

SAP and Deloittes Treasury Management and Responsive Finance Team

collaborated on a starter kit as a fast track to improved liquidity planning

Some services are required to tailor the solution to your organization's

specific needs

Deloitte is the preferred implementation/services partner for the starter kit

for liquidity planning
The starter kit for liquidity planning does not have to be purchased separately.
SAP is providing the starter kit at no additional license cost to customers that
already own SAP BusinessObjects Planning and Consolidation, version for SAP
NetWeaver and SAP BusinessObjects Dashboards

2011 SAP AG. All rights reserved.

Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

What is a starter kit?

Presenting the starter kits functional scope

What SAP solutions is the starter kit a pre-configuration for?

Walking through the liquidity planning and forecasting scenario enabled by the
starter kit
3. Viewing a demo
4. Wrap-up

2011 SAP AG. All rights reserved.

Starter Kit for Liquidity Planning

Functional Scope Addressing Typical Pain-Points in Liquidity Planning

Jump-starts the implementation of a liquidity planning

solution

Improves liquidity planning (forecast) accuracy

Reduces manual work by automating key calculations

with embedded financial intelligence

Delivers greater visibility into key working capital metrics

Works with your existing ERP systems

Delivers holistic coverage:

o

Import direct and indirect cash flow information from any

source systems

Modify rules and rates for different scenarios

Analyze liquidity scenarios in different time aggregations

Evaluate incoming and outgoing cash and net income

2011 SAP AG. All rights reserved.

Starter Kit for Liquidity Planning

Key Capabilities

Automatically converts SAP BusinessObjects Planning and Consolidation

planning data into cash flow data

Calculates mid- to long-term forecasts (up to 2 years) by integrating

committed transactions with forecasted financial data

Isolates impact of intercompany cash flows on a group level

Enables simulation and sensitivity analysis on source data and calculation rules

Directly integrates with SAP NetWeaver enabling data quality checks and
remediation procedures

2011 SAP AG. All rights reserved.

10

Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

What is a starter kit?

Presenting the starter kits functional scope

What SAP solutions is the starter kit a pre-configuration for?

Walking through the liquidity planning and forecasting scenario enabled by the
starter kit
3. Viewing a demo
4. Wrap-up

2011 SAP AG. All rights reserved.

11

Business Analytics Solutions from SAP

Achieve Remarkable Results
Analytic Applications

Enterprise Performance
Management
Strategy
Management

Planning,
Budgeting, and
Forecasting

Profitability and
Cost Management

Financial
Consolidation

By Industry

By LoB

Financial Services
Public Sector and Healthcare
Manufacturing
Consumer Products
Retail and Telco
Utilities and more.

Service, Sales, and Marketing

Procurement
Supply Chain
Finance
Sustainability
IT, HR, and more

Governance, Risk,
and Compliance
Enterprise GRC

Access Risk
Management

Global Trade
Services

Continuous
Transaction
Monitoring

Disclosure
Management

Enterprise Information
Management

Business Intelligence
Reporting and
Analysis

Dashboards and
Visualization

Data
Services

Master Data
Management

Data Exploration

Mobile

Event
Processing

Content
Management

Information
Governance

BI Platform

Data Warehousing
Enterprise Data
Warehousing

2011 SAP AG. All rights reserved.

High-performance
Analytic Solutions

Data Mart
Solutions

12

SAP BusinessObjects Planning and Consolidation

Version for SAP NetWeaver
Streamlined consolidation, planning, budgeting, and forecasting

Familiar and easy to use

User owned and managed. Enables rapid adoption by leveraging

native Microsoft Office tools (e.g., Excel).

Consolidation business rules are configured by finance users

Process-centric

Customizable business process flows ensure consistency and

minimize training

Enforces policies and procedures track process status and

completion

Step-by-step guidance for users

Unified planning and consolidation

Single, integrated application reduces maintenance, improves

data integrity

Simplified deployment while enabling flexible consolidation and

planning functions

Optimized for SAP and non-SAP environments

2011 SAP AG. All rights reserved.

13

Business Analytics Solutions from SAP

Achieve Remarkable Results
Analytic Applications

Enterprise Performance
Management
Strategy
Management

Planning,
Budgeting, and
Forecasting

Profitability and
Cost Management

Financial
Consolidation

By Industry

By LoB

Financial Services
Public Sector and Healthcare
Manufacturing
Consumer Products
Retail and Telco
Utilities and more.

Service, Sales, and Marketing

Procurement
Supply Chain
Finance
Sustainability
IT, HR, and more

Governance, Risk,
and Compliance
Enterprise GRC

Access Risk
Management

Global Trade
Services

Continuous
Transaction
Monitoring

Disclosure
Management

Enterprise Information
Management

Business Intelligence
Reporting and
Analysis

Dashboards and
Visualization

Data
Services

Master Data
Management

Data Exploration

Mobile

Event
Processing

Content
Management

Information
Governance

BI Platform

Data Warehousing
Enterprise Data
Warehousing

2011 SAP AG. All rights reserved.

High-performance
Analytic Solutions

Data Mart
Solutions

14

SAP BusinessObjects Dashboards

(Ex-Xcelsius)
Create Interactive Analytics and Dashboards

Consume attractive, personalized

dashboards online or offline
Access to personalized, Flash-based dashboards
Secure visualizations anywhere portal, reports, PDF, Office
documents

Empower business users with interactive

information
Powerful what-if analysis with sliders and other controls
Ability to drill-down into details
Pre-built components, skins, maps, charts, gauges, and selectors

2011 SAP AG. All rights reserved.

15

Key Differences: SAP ERP Financials Treasury Apps and

SAP BusinessObjects Planning and Consolidation
SAP ERP Financials Treasury Applications:

SAP Cash and Liquidity Management

o
o

Helps you monitor and manage cash flow and liquidity

Updates cash balances in real-time directly from receivables and payables in SAP ERP

SAP Treasury and Risk Management

o
o

Models risk scenarios and executes mitigation strategies

Initiates, tracks, and accounts for investments and borrowing

SAP BusinessObjects Planning and Consolidation starter kit for liquidity

planning:

Flexible cash flow forecasting/reporting

Scenario planning/what-if analysis to simulate the impact of different cash

flow strategies

2011 SAP AG. All rights reserved.

16

Starter Kit for Liquidity Planning

Prebuilt Components That Can Be Adapted to Your Organizations Needs

Templates and functions to import aggregated

liquidity data from SAP NetWeaver BW to SAP
BusinessObjects Planning and Consolidation,
version for SAP NetWeaver

Templates to maintain cash calculation rules

and currency conversion rates

Automated liquidity calculation and currency

translation functions

Templates for reporting and manual

adjustments, simulating liquidity strategies, and
displaying daily liquidity forecasts with monthly
and quarterly aggregation

Dashboards* that provide insight into working

capital metrics and incoming and outgoing cash,
with navigation and drill-down capabilities, as
well as the ability to make manual adjustments

*Created with SAP BusinessObjects Dashboards software licensed separately by SAP

2011 SAP AG. All rights reserved.

17

Starter Kit for Liquidity Planning

Prebuilt Components That Can Be Adapted to Your Organizations Needs
(cont.)
From a technical standpoint, the starter kit, which can be tailored to your organizations
specific needs, contains:
A transport file for SAP NetWeaver Business Warehouse to be imported via the stms
transaction (SAP transport request) containing:
o

BW objects incl. InfoProvider, InfoObjects, Update Rules, InfoPackage

A Backup and Restore file for SAP BusinessObjects Planning and Consolidation to be
imported via the ujbr transaction containing:
o

AppSet for Liquidity Planning, BW objects in the Planning and Consolidation namespace (incl.
InfoProvider, etc.), file folder for appset, examples of transaction data and master data, Excel
Workbook with cash flow calculation logic

A pre-defined SAP BusinessObjects Dashboards analytical dashboard (in .pdf, .ppt and
.xlf formats) to be connected with the data available in Planning and Consolidation for
read/write access
Technical documentation and end-user documentation
An example of an upload file (a .csv flat file) for integration of liquidity data from other sources

2011 SAP AG. All rights reserved.

18

Starter Kit for Liquidity Planning

Technical Process Diagram

Report on liquidity
Information with
Drill-through to SAP SAP BusinessObjects Planning SAP BusinessObjects different tools
BEx Report
and Consolidation Excel Interface
Dashboards

SAP BusinessObjects Planning and Consolidation

Excel and Web interfaces

SAP BusinessObjects Planning and Consolidation,

version for SAP NetWeaver

Maintain data and run

planning functions

Store data in
central database

Harmonization of source data in SAP NetWeaver BW EDW

SAP ERP
2011 SAP AG. All rights reserved.

Flat File

Database

Source Systems
19

Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

What is a starter kit?

Presenting the starter kits functional scope

What SAP solutions is the starter kit a pre-configuration for?

Walking through the liquidity planning and forecasting scenario enabled
by the starter kit
3. Viewing a demo
4. Wrap-up

2011 SAP AG. All rights reserved.

20

Starter Kit for Liquidity Planning

Liquidity Planning Process

Upload latest
Liquidity
Information (e.g., sales
forecast, salary info, sales
orders) from any Source
system

BEGIN

Cash Flow

Cash Flow
Calculation
Rules (e.g.,
DSO calculation)

END

Run
Cash Flow
Calculation

Generate
Liquidity
Planning
Report

Change
Parameters
(optional)

Currency Rates

2011 SAP AG. All rights reserved.

Analyze
Results and
Make Required
Top-Down
Adjustments

Projected
Currency
Conversion
Rates

Simulate
Different
Scenarios

Run
Currency
Translation

21

Starter Kit for Liquidity Planning

Scenario Diagram
System
Independent
Inputs

Analyze/
Remediate/
Aggregate

Define and
Maintain
Calculation
Rules

Calculate
Cash Flows

Report

Transaction Data

PO/AP

SO/AR
Define
calculation rules
Financials

CAPEX

Forecast Data

Calculate cash flow

Sales

Data analysis of
latest liquidity
information

HR
Aggregation in SAP
NetWeaver BW
2011 SAP AG. All rights reserved.

Maintain
calculation rules

Upload currency rates

for future time frame

SAP BusinessObjects
Planning and
Consolidation Excel
interface

Run currency
translation

Simulate in different
versions and do
manual adaptions

Dashboards embedded
in SAP BusinessObjects
Planning and
Consolidation

22

Starter Kit for Liquidity Planning

Scenario Diagram Upload and Harmonize Liquidity Data
System
Independent
Inputs

Analyze/
Remediate/
Aggregate

Define and
Maintain
Calculation
Rules

Calculate
Cash Flows

Report

Transaction Data

PO/AP

SO/AR
Define
calculation rules
Financials

CAPEX

Forecast Data

Calculate cash flow

Sales

Data analysis of
latest liquidity
information

HR
Aggregation in SAP
NetWeaver BW
2011 SAP AG. All rights reserved.

Maintain
calculation rules

Upload currency rates

for future time frame

SAP BusinessObjects
Planning and
Consolidation Excel
interface

Run currency
translation

Simulate in different
versions and do
manual adaptions

Dashboards embedded
in SAP BusinessObjects
Planning and
Consolidation

23

Demo

2011 SAP AG. All rights reserved.

24

Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

What is a starter kit?

Presenting the starter kits functional scope

What SAP solutions is the starter kit a pre-configuration for?

Walking through the liquidity planning and forecasting scenario enabled by the
starter kit
3. Viewing a demo
4. Wrap-up

2011 SAP AG. All rights reserved.

40

Starter Kit for Liquidity Planning

Functional Summary
Import aggregated liquidity data from the SAP NetWeaver BW EDW (capture
any liquidity relevant information from any source system)

Input Templates

Embedded
Intelligence

Import aggregated data into the Excel workbook in SAP BusinessObjects

Planning and Consolidation

Utilize embedded liquidity calculations and currency translation functions

Leverage dynamic time frame views of cash flows (daily, monthly and
quarterly views available)
Drill-through to source systems (e.g., BEx report, ERP or any Web application
that can be accessed via url)

Reports
Drill-down/up to daily, monthly and quarterly views in out-of-the-box liquidity
planning report

Dashboards

Visualize working capital metrics, cash inflow/outflows and other key

performance indicators in a highly-interactive, graphical environment
Make manual adjustments directly within the dashboard

2011 SAP AG. All rights reserved.

41

Resources

Dr. Karol Bliznak, What You Need to Know about the Starter Kit for Liquidity
Planning for SAP BusinessObjects Planning and Consolidation, version for SAP
NetWeaver (Financials Expert, February 2011):
www.financialsexpertonline.com/article.cfm?id=5667

Press release on the starter kit for liquidity planning:

www.sap.com/press.epx?pressid=14306

SAP and Deloitte Webcast recording: Building Blocks of Best Practices for
Liquidity Planning: How to Take Control of Your Cash Flow (November, 2010)
on cfo.com:
www.cfo.com/webcasts/index.cfm/l_eventarchive?webcast=14530437

YouTube: www.youtube.com/user/SAPBPC#p/u/0/NMDxzSY_U7k

SAP and Deloitte the joint Responsive Finance initiative:

www.deloitte.com/view/en_US/us/Services/consulting/technologyconsulting/sapconsulting/887d8968b2ab6210VgnVCM100000ba42f00aRCRD.htm

More info on SAP BusinessObjects Planning and Consolidation:

www.sap.com/sapbusinessobjects/planning_and_consolidation

To learn more about SAP BusinessObjects enterprise performance management

(EPM) products in general, go to:
www.sap.com/solutions/performancemanagement/
2011 SAP AG. All rights reserved.

42

7 Key Points to Take Home

SAP and Deloitte collaborated on the starter kit for liquidity planning.

Deloitte is the preferred implementation/services partner for the starter

kit for liquidity planning. Deloitte and SAP consultants have access to the
starter kit and provide implementation services to tailor it to your organizations
specific needs.

The starter kit as a pre-configuration is available for the SAP

BusinessObjects Planning and Consolidation application, version for the SAP
NetWeaver technology platform and for SAP BusinessObjects Dashboards.

With the starter kit, you can:

Access detailed cash-flow information
Model the impact of different company and currency scenarios on cash flows
And prepare executive reports based on those scenarios

2011 SAP AG. All rights reserved.

43

7 Key Points to Take Home (cont.)

The kit supports the automatic import of data from the SAP ERP Financials
solution and any other enterprise resource planning (ERP) system. You can
import:
Direct transaction data (such as information related to accounts payable, accounts
receivable, or financials)
As well as indirect forecast data (such as information related to capital expenditures,
sales, or human resources)

Using an intuitive interface, you can analyze:

Cash inflows (such as committed sales, pending accounts, or receivables)
As well as cash outflows (such as account payables and tax payables)

You can make manual calculation adjustments on the fly and run different
scenarios to see the potential effects of changes to specific liquidity variables.

2011 SAP AG. All rights reserved.

44

Your Turn: Questions?

Contact information:
Marc Mertens
Deloitte
mmertens@deloitte.com