Business Rules For Financial Close PDF

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SAP BPC NW 10.0 on HANA | KNOWLEDGEBASE
(A SAP EPM & HANA Community Service)
Business Rules for Financial Close -

Implementation Guide
Author: Chief Architect:

Murugesan Annamalai Jothi Periasamy
SAP Project Manager/Lead SAP EPM/HANA Community Service SAP HANA/EPM/BI/EIM Community Leader
SAP EPM/BPC Solutions Lead SAP BPC/BOBJ/BI/MDM Domain Champion
murugesana@cloneskills.com 10/16/2013 joesaran@gmail.com, (916)-296-0228 - Cell
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Table of Contents
1. Executive Summary: ........................................................................................ 4

2. Key Assumptions:............................................................................................. 5
3. Business Rules Flow of Control:....................................................................... 6
4. Business Scenario:........................................................................................... 8
4.1 Business Scenario – 1: ................................................................................... 9
5. Solutions Architecture: ................................................................................... 13
6. Solutions Building Blocks: .............................................................................. 17
7. Entity Structure: .............................................................................................. 20
8. Ownership Structure:...................................................................................... 21
9. Business Rules: Configuration ....................................................................... 22
10. Relationship Among Business Rules: ........................................................... 26
10.1 Example: Relationship Among Business Rules .......................................... 27
11 Business Rules Tables .................................................................................. 28
11.1 Business Rules Table: Methods ................................................................. 28
11.1.1 Business Rules Table Columns: Methods ............................................... 29
11.2 Business Rules Table: Methods Based Multipliers ..................................... 30
11.2.1 Business Rules Table Columns: Methods Based Multipliers ................... 32
11.2.1.1 Example: BR in Action (Step By Step Execution) ................................. 34
11.3 Business Rules Table: Eliminations and Adjustments ................................ 38
11.3.1 Business Rules Table Columns: Eliminations and Adjustments .............. 42
11.4 Business Rules Table: Carry Forward ........................................................ 44
11.4.1 Business Rules Table Columns: Carry Forward ...................................... 45
11.5 Business Rules Table: Account Based Calculations............................................. 47
11.5.1 Business Rules Table Columns: Account Based Calculations ................ 48
11.6 Business Rules Table: Intercompany Bookings ......................................... 50
11.6.1 Business Rules Table Columns: Intercompany Bookings ....................... 51
11.7 Business Rules Table: US Eliminations ..................................................... 53
11.7.1 Business Rules Table Columns: US Eliminations ................................... 54
11.8 Business Rules Table: Currency Translation ............................................. 55
11.8.1 Business Rules Table Columns: Currency Translation ........................... 56
12. Business Rules: Implementation .................................................................. 58
12.1 Business Scenario – 1: Implementation ..................................................... 58
12.2 Business Scenario – 2 & 3 : Implementation .............................................. 64
12.3 Business Scenario – 4: Implementation ..................................................... 82
12.4 Business Scenario – 5 : Implementation .................................................. 105
12.5 Business Scenario – 6: Implementation ................................................... 121
12.6 Business Scenario – 7 : Implementation .................................................. 172

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 2

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13. Appendix-A – Data Source File: ................................................................. 184

13. Appendix-A – Data Source File(Contd.): .................................................... 185
13. Appendix-B – Consolidated Balance Sheet ................................................ 191
14. Disclaimer: ................................................................................................. 192
15. SAP Community Contributors:.................................................................... 193


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1. Executive Summary:
The purpose of this article is to provide enough functional and technical details
to implement SAP BPC NW 10.0 business rules on a consolidation model.
Users will learn the business rules that are required to implement financial
close process solution. In this article we are explaining the mandatory required
steps to implement business rules in detail.
This document explains the [a] objective of each business rule, [b] educates
you to understand the table fields/columns for each business rule, [a] explains
the business purpose of each column in the business table and then [d]
explains the value stored in each column along with sample values. Ultimately
we are showing you to implement the business rules step by step.
In this article, we cover the following business rules on a SAP BPC NW 10.0
platform for a consolidation implementation:
Methods
Methods Based Multipliers
Eliminations and Adjustments
Carry Forward
Account Based Calculations
Intercompany Bookings
Currency Translation
Equity Pickup
US Eliminations


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2. Key Assumptions:
Before we move further in this journey, It has been assumed that the user has
basic knowledge and understanding on finical close process and also it’s
enabling technologies such as SAP BPC NW 10.0 product.


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3. Business Rules Flow of Control:

Below diagram explains “how a business user able to interact with business
rules, and perform their business functions using SAP BPC NW 10.0 out of
the box business rules functionality” – How business rules work within
business users?
Note: There are other options to call or to make the business rules to interact
with business users, here is a sample options to call/invoke a business rule
from user perspective.
Figure: 1: Business rules control and information flow


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Based on the above diagram the following steps are explained to get a better
view on the step by step approach to implement SAP BPC NW 10.0 business
rules
Step # 1: Business users launches EPM “add-in” excel
Step # 2: Business users calls a specific data manager package via

EPM “add-in” excel, the data manager package may be standard
package or a custom package developed by customer
Step # 3: The data manager package intern calls a “logic script” with a
user prompt (note: the user prompts are optional).
Step # 4: On prompt, the business users should be able to provide their

valid inputs to the respective prompt
Step # 5: After accepting user inputs from the prompt, the “logic script”
intern calls business rule with relevant parameters, the parameters are
vary by business rules
Step # 6:Now the business rule reference the business rule table for the
associated context information’s, after reading the business rule table
the business rule function will read the applicable data region from
model
Step # 7:Now the business rule will perform the following task, each
business rules will have its own set of task based on the objective of the
business rules and it’s table values
Read model data based on the business rule table context

values/information
Apply business rules on the model data
Write the data back to model


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Step # 8:Finally business users should be able to verify the outcome of

the business rules execution via a custom report, or a custom data input
form , or a SAP BW backend query, also through other options
4. Business Scenario:
CubeInsights, Inc. a Holding Company has legal subsidiaries in the United
States, Canada, Germany, United Kingdom, Singapore and India, and not all
of them are wholly owned. Besides that, these subsidiaries do make
intercompany transactions which need to be eliminated during the
consolidation/close process.
The company does many acquisitions and divestitures during the year that
has led to a complex and lengthy close process. To speed up the financial
close process, the company has decided to automate their consolidation
process using SAP BPC NW 10.
SAP BPC NW 10 uses minimal programming to automate the consolidation

process. The SAP BPC NW 10.0 software primarily uses predefined set of
Business Rules to automate the consolidation process. Business Rules are
table driven approach and it does not require complex programming/coding
efforts to implement the consolidation process.
SAP BPC implementation team decided to explore the business rules, instead
custom coding and custom artefacts.


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4.1 Business Scenario – 1:

Below diagram explains a global company’s operating model, in this business
scenario we are using a global company called CubeInsights, Inc.
CubeInsights, Inc. offers pre-packaged industry analytics on a cloud platform,

and they are specializing in SAP HANA and HADOOP technology.
Figure: 2: CubeInsights operating model


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Figure: 3: CubeInsights subsidiaries and its ownership to parent

company
CubeInsights, Inc. Holding Company has subsidiaries in the following

countries:
o United States
o Canada
o Germany
o United Kingdom
o Singapore
o India
Subsidiaries have the following entity structure:

o USA and Canadian entities are part of North America region.
o German and UK entities are part of Europe region.
o Singapore and Indian entities are part of Asia Pacific region.
o North America, Europe and Asia Pacific regions are coming
under corporate headquarters.

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The Holding Company has ownership in its’ subsidiaries as follows:

o Has 80% stake in its US subsidiary.
o Has 90% stake in its German subsidiary.
o Has 80% stake in its Singapore subsidiary.
Subsidiaries have ownership interest among themselves i.e.

subsidiaries have invested in other subsidiaries.
o German subsidiary has 20% stake in UK subsidiary.
o Singapore subsidiary has 80% stake in Indian subsidiary.
o US subsidiary has 70% stake in Canadian subsidiary.
The Holding Company is adopting the following accounting standards

when consolidating assets of its subsidiaries:
o Equity method has to be followed for consolidation of
subsidiaries’ assets if the Holding Company is having less than
25% shares in its subsidiary.
o Proportionate method has to be followed for consolidation of
subsidiaries’ assets if the Holding Company is having more than
25% shares but less than or equal to 50% shares in its
subsidiary.
o Purchase/Full method has to be followed for consolidation of
subsidiaries’ assets if the Holding Company is having more than
50% shares but less than or equal to 100% shares in its
subsidiary.
All the subsidiaries/entities have intercompany transactions (among

themselves) i.e. they conduct transactions among themselves which
need to be eliminated when their assets are consolidated with the
Holding Company.
The company prepares consolidated cash flow statement based on

previous two months’ finance data.


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The company carries forward every month’s net income from P& L
statement to the next month’s opening balance in balance sheet.
The Holding Company does the consolidation of subsidiaries’ assets

based on its group’s currency - USD.


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5. Solutions Architecture:
The solution that we are demonstrating in this article makes use of SAP BW
system , our SAP BW system runs on SAP HANA in-memory database to
store, retrieve and process data in real-time. Our SAP BPC NW 10.0 system
runs on top of SAP BW.
The SAP BPC system provides various front end tools for business users to
perform planning, forecasting, consolidation, reporting and data management
functions, these font end tools are accessed via MS Office Tools and also a
web browser.
The financial data and also it’s supporting master (or dimension members)
data from various data sources and source systems can be extracted into
SAP HANA database either in real-time or in a near real-time mode as
needed.
Users can access the SAP BW system through SAP GUI – a Windows
desktop client, the SAP BW system enables users to review and manage the
collated data.
The following diagram explains our integrated consolidation solution reference

architecture, readers will learn and butter understand the various technologies
and its interfaces, including
SAP HANA
SAP BPC
SAP BW
SAP ECC
SAP BusinessObjects
Other Source Systems and Data Sources


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Figure – 4: Our solutions proven reference architecture


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5.1 Source Systems and Data Sources: Sample

Our solutions collect subsidiaries data from multiple systems and data sources,
including SAP GL system, Oracle GL systems and File systems. Following diagram
demonstrates our overall data flow between the source systems and the BPC
consolidation model
Figure – 4.1: Our solution source systems and data sources


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5.2: Real-Time Data Management:

We use the following technology capabilities to manage our consolidation solution
data management, data mapping, data conversion, data transformation and data
load process
Data Management Capabilities - Best Options
#1 - SAP HANA Data Management Capabilities

#2 - SAP BW - BI Content
#3 - SAP BusinessObjects Data Services Capabilities
#4 - SAP BPC Data Manager Capabilities
#5 - SAP BW – Generic Extraction

Figure – 4.2: Our solution data management tools and functions


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6. Solutions Building Blocks: CubeInsights, Inc.’s

subsidiaries/entities are exporting their financial data to SAP BW. These data
are then transferred to SAP BPC cube. The Holding Company consolidates
subsidiaries’ financial data based on its accounting policy and reports the
consolidated data to Securities & Exchange Commission to comply with the
legal requirements.
# Solution Building Blocks System/Infrastructure Technical Details
1 Environment : ENV075_JUL08 An environment is a SAP BPC An environment logically groups and

system artefact organizes all the SAP BPC application
components such as model, dimensions,
logic, etc.
2 Model : CONSOLIDATION Model is a SAP BPC system A model is an SAP HANA optimized real-
artefact. Model can be classified time info, and it holds the financial data
as a main model and supporting for consolidation.
model.
3 Model : IC_MATCHING A model is an SAP HANA optimized real-

time info, and it holds the IC data for IC
matching & booking.
4 Model : OWNERSHIP A model is an SAP HANA optimized real-

time info, and it holds the Ownership data
to be used for consolidation.
5 Model : RATES A model is an SAP HANA optimized real-

time info, and it holds the exchange rates
data.
6 Dimensions : ACCOUNT, AUDITTRAIL, Dimension is a SAP BPC system A dimension is an SAP HANA optimized
CATEGORY, ENTITY, FLOW, INTERCO, artefact. Dimension can be of any real-time info, and it holds master data
RPTCURRENCY, SCOPE, TIME, type - . A,D,C,R,E,G,I,S,T& U. such as ACCOUNT, AUDITTRAIL, etc....
IC_AUDITTRAIL, O_ACCOUNT,
INPUTCURRENCY, R_ACCOUNT, R_ENTITY
7 Data Manager Packages, Scripts, Process These are SAP BPC artefacts These are used to accept parameters
Chains, Logic Scripts, Input Forms, Reports & and used to automate running of from the users and then run logic
Journal Templates tasks, apart from accepting the scripts/BADIs using these parameters.
inputs from users and displaying
the data to the users.


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8 Consolidation Monitor Consolidation Monitor is an SAP Consolidation is used execute closing

BPC artefact and a new feature activities and monitor its status. It is also
of SAP BPC 10. used to perform currency conversion and
to set the work status for data segments.
9 Controls Monitor Controls Monitor is an SAP BPC Controls Monitor is used to run validations
artefact and a new feature of on data i.e. to validate the GL data.
SAP BPC 10.
10 Ownership Manager Ownership Manager is an SAP Ownership Manager is used to create

BPC artefact and a new feature ownership structure and to accept
of SAP BPC 10. ownership data from users. Also, it
generates system proposals using the
ownership data.
11 Business Rules – Methods The Methods business rules are

is a SAP BPC application
artefact. Consolidation Methods
definitions are stored in the BR
table and are defined at the
environment level.
12 Business Rules – Methods Based Multipliers Methods Based Multipliers are a

BR table and is an SAP BPC
artefact. Methods based formulae
are stored in this table at the
environment level.
13 Business Rules – Eliminations and Elimination and Adjustments

Adjustments rules are defined at the model
level and stored in this table.
Used to perform consolidation.
14 Business Rules – Carry Forward Carry Forward rules are defined
(see below for more functional details)
at the model level and stored in
this table.
15 Business Rules – Account Based Calculations Account Based Calculations rules

are defined at the model level
and stored in this table.
16 Business Rules – Intercompany Bookings Intercompany Bookings rules are

defined at the model level and
stored in this table.
17 Business Rules – US Eliminations US Eliminations rules are defined

at the model level and stored in
this table.
18 Business Rules – Equity Pickup Equity Pickup rules are defined at

the model level and stored in this
table.
19 Business Rules – Currency Translation Currency Translation rules are Used to perform currency translation
defined at the model level and
stored in this table.


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Assumptions (Out of Scope):

Since the scope of the article is specific to Business Rules alone, we will be
focussing only on business rules and the necessary components to implement
the business rules.
In this article, we won’t be able to explain the following key functions of

SAP BPC NW 10.0 as it’s out of scope for this article
Journal Configuration
Ownership Calculations
Work Status Setup
Business Process Flow
Reports Generation
Data Input Forms for Manual Data Management
Security and Other SAP BPC NW 10.0 functions
Without proper and quality data it’s practically impossible to implement any
business rules. Data plays a significant role in implementing business
rules, please make sure you have valid data sets before we go for any
implementation steps, data includes
All dimension data
All model (transaction or actuals) data
Rate Data
Ownership Data
GL Posting Data
Intercompany Data
In this article we are not providing any sample data, it has been assumed
that the users are completely responsible for setting up their own data
Please feel free to contact us for any help and support to implement any of
the above functions. As a community service we support you...


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7. Entity Structure:
The following diagram shows the entity structure of the Holding Company. US
and Canadian entities are part of North America region whereas Germany &
UK are part of Europe region. And, Singapore and India are coming under
Asia Pacific region. All the regions are coming under the Holding Company
which is at the top of the entity structure.
Figure – 5: Entity Structure


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8. Ownership Structure:
The following picture shows the Ownership structure for the Holding Company
– CubeInsights, Inc. The Holding Company has invested in its’ subsidiaries –
US, Singapore and Germany.
While US have invested in Canada with 70% stake and Singapore in India
with 80% stake, Germany has invested in UK with 20% stake. As for the
Holding Company, it has 80% stake in the US subsidiary, 80% stake in the
Singapore subsidiary and 90% stake in the German subsidiary.
The Holding Company uses this information to consolidate assets of its

subsidiaries and applies Purchase, Proportionate or Equity method
accordingly.
Figure – 6: Ownership Structure


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9. Business Rules: Configuration

The following table lists out the business rules along with their objectives and
sample scenarios:
BR # Business Rule Objective Sample Business Scenario

To define different Business Scenario- 1: Equity, Proportionate &
1 Methods consolidation methods Purchase Methods
based on the ownership
control percentage If the parent company has less than 25% control/stake
over the child/subsidiary, Equity method has to be
used when consolidating financial assets of the parent
and child.
If the parent company has less than 50% control/stake

over the child/subsidiary, Proportionate method has to
be used when consolidating financial assets of the
parent and child.
If the parent company has more than 50%

control/stake over the child/subsidiary, Purchase/Full
method has to be used when consolidating financial
assets of the parent and child.
When consolidating Business Scenario- 2 : Purchase Method

2 Methods Based financial assets using
Multipliers Purchase method, parent Parent Company – Holding company, has invested $
company’s investment in 1,40,000 in its subsidiary – US.
the subsidiary needs to be Parent Company – Holding company, has invested $
eliminated(i.e. zeroed). 1,30,000 in its subsidiary – SG.
Parent Company – Holding company, has invested $
Formula defined under the 1,30,000 in its subsidiary – DE(Germany).
Methods Based Multipliers Parent Company – SG, has invested $ 1,20,000 in its
section will be used to off- subsidiary – IN(India).
set the parent’s Since Holding Company has more than 50%
investment amount in the stake/ownership in its subsidiaries – US, SG, DE and
subsidiary. IN, Purchase method will be used to consolidate
financial assets.
Off-setting of investments Since purchase method is used for consolidation,
is done through formula parent company’s investment in the
defined under Methods subsidiaries($5,20,000) will be off-set using formula
Based Multipliers. defined under the Methods Based Multipliers section.
3 Elimination and To define the business Business Scenario- 3 : Purchase Method.

Adjustments rules to perform
eliminations, adjustments, Parent Company – Holding company, has invested $
reclassifications and 1,40,000 in its subsidiary – US.
minority interest Parent Company – Holding company, has invested $
calculations. 1,30,000 in its subsidiary – SG.


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Parent Company – Holding company, has invested $
When consolidating 1,30,000 in its subsidiary – DE(Germany).
financial assets using Parent Company – SG, has invested $ 1,20,000 in its
Purchase method, parent subsidiary – IN(India).
company’s investment in Since Holding Company has more than 50%
the subsidiary needs to be stake/ownership in its subsidiaries – US, SG, DE and
eliminated(i.e. zeroed). IN, Purchase method will be used to consolidate
financial assets.
Elimination of investments Since purchase method is used for consolidation,
is done through business parent company’s investment in the
rules defined under the subsidiaries($5,20,000) will be eliminated using
Eliminations and business rules defined under the Eliminations and
Adjustments section. Adjustments section.
4 Carry Forward To define business rules Business Scenario- 4 : Closing Balances – Carry
to perform carry forward Forward
process to carry forward
the closing balances for Closing balance for the Cash account for the period –
certain accounts for the Dec, 2011, is $10,000.00
current financial period to Closing balance for the Machinery & Equipment
the next financial period. account for the period – Dec, 2011, is $20,000.00
Closing balance for the Trade Receivables account for
the period – Dec, 2011, is $30,000.00
Retained earnings for the current year - Dec, 2011, is

$10,00,0000.00
Business Rules defined under the Carry Forward

section will be used to carry forward the above closing
balances for the period – Dec, 2011, to the opening
balances for the next financial period – Jan, 2012.
5 Account Based To define rules to perform Business Scenario- 5 : Account Reclassification

Calculations account reclassifications,
in particular when When generating cash flow statement, the company wants
generating cash flow to reclassify the following accounts:
statements.
‘ ANI Transfer’ account as ‘Net Income’ account
To reclassify : ‘Depreciation-Machinery’ as ‘Add Back Depreciation’
account
‘ ANI Transfer’
account as ‘Net
Income’ account Business Rules’ defined under the Carry Forward section,
‘Depreciation- will be used to carry forward the above closing balances to
Machinery’ as ‘Add the opening balances for the next financial period – Jan,
Back Depreciation’ 2012..
account
Account based
calculations rules will be
used.
6 Intercompany To define rules to book Business Scenario- 6 : IC Matching/Booking

Bookings differences that arises


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among intercompany The entities – Holding Company, US, SG and IN, have the
transactions. following intercompany transactions happened among
them:
Holding Company has IC Receivables transactions

with US entity.
US entity has IC Payables transactions with the
Holding Company.
SG entity has IC Receivables transactions with India

entity.
India entity has IC Payables transactions with SG
entity.
Holding Company has IC Sales transactions with US

entity.
US entity has IC COGS transactions with the Holding
SG entity has IC Sales transactions with India entity.

India entity has IC COGS transactions with SG entity.
Business Rules will be used to match these IC transactions,

and to book the differences among them, if any.
7 Currency To define rules to perform Business Scenario- 9 : Currency Conversion from SGD
Translation currency translation from to USD
one currency to another
currency. Singapore entity has its financial data in its local currency –
Singapore Dollar. And, wants to see the data in US Dollar.
Some entities/companies
may have their financial The following data needs to be converted from local
data in their local currency to US Dollar:
currency. But, they may
have a requirement to see Accounts Receivable
the data/report using their Cash
group/regional currency. Intercompany Receivables
Currency Translation rules Third Party Sales

perform this function. Intercompany Sales
Material Cost
Business Rules will be used to perform currency conversion
from Singapore Dollar to US Dollar.
8 US Eliminations To define rules to perform In a managerial accounting scenario,

US eliminations for Group generates revenue by exchanging goods and
managerial accounting. services among the subsidiaries/entities.
US elimination rules can Group want to eliminate the revenue generated among
be run only thru the script the subsidiaries.
and NOT through US elimination BRs will be used to eliminate the
Consolidation Monitor. revenue generated among the subsidiaries.
9 Equity Pickup A method of re-evaluating The Equity Pickup adjustment offsets the historical cost in
the investments owned by local currency, showing the actual value of the equity
a holding company, owned.


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allowing the parent to
realize changes in equity.
This results in the holding
company’s balance sheet
showing the current value
of the corresponding share
in the equity of the
subsidiary.


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10. Relationship Between Business Rules:

The following diagram shows the relationship among business rules.
One ‘Elimination and Adjustments’ rule can have multiple ‘Methods

Based Multipliers’ rules.
One ‘Methods Based Multipliers’ rule can have multiple ‘Methods’

rules.
Figure – 7: Relationship Among BRs


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10.1 Example: Relationship Among Business Rules

The following diagram shows the relationship among business rules with
sample data.
One ‘Elimination and Adjustments’ rule[P2_ELCOI1] has multiple

‘Methods Based Multipliers’ rules[P2_RULE010 & P2_RULE060]
One ‘Methods Based Multipliers’ rule [P2_RULE010] has multiple

‘Methods’ [100, 20,101 & 50].
Figure – 8: Relationship Among BRs - Example


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11 Business Rules Tables

11.1 Business Rules Table: Methods
The following picture shows the BR table meant for Methods:
Figure – 9: Methods Table


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11.1.1 Business Rules Table Columns: Methods

The following table shows columns, along with their objectives and sample
values, from Methods BR table:
BR # BR Table Column Column Objective Sample Values
1 Method Code The Method code is a unique identifier 20

arbitrarily defined between the value 1 50
and 98. The value 99 is a 100
system reserved value representing all 101
method code values. Method codes are
referenced in the Ownership
Manager as the Consolidation Methods
assigned to specific Entities within a
Group hierarchy.
Description for the method code. This 20 - Equity

2 Description can be any text. 50 - Proportionate
100 - Full
101 - Holding
Method Type assigns the appropriate D – (disposed at last

3 Method Type consolidation logic to the method code year-end)
with the following E – (Equity)
list of values: G – (Global)
H – (Holding)
L – (Leaving during the
year)
N – (New)
P – (Proportionate)
4 Share Range Share Range represents the share 0.00<, <= 0.25
range for a given method. The 0.25<, <= 0.50
consolidation method can be 0.50<, <= 1.00
automatically derived by ownership
calculations based on share range rules.
5 Applicable Percent Applicable Percent Consolidation holds 30

Consolidation the value (e.g. ‘100’) that needs to be 50
copied to the Percent 100
Consolidation (‘PCON’) as part of 100
ownership calculations


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11.2 Business Rules Table: Methods Based Multipliers

Method Based Multipliers control how the amounts or the destination accounts
should be calculated during the consolidation process. Method-based
Multipliers are defined by a name (ID), a description, and a type (the type
relates to the consolidation method(s) using the method-based multiplier).
The calculation of consolidated data is controlled by which multiplier being

used, the consolidation method assigned to the current entity, and its
Intercompany partner (if applicable).
The following picture shows the BR table(Header) meant for Methods Based
Multipliers:
Figure – 10: Methods Based Multipliers (Header)
The following picture shows the BR table (Details) meant for Methods Based
Multipliers:


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Figure – 11: Methods Based Multipliers (Details)


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11.2.1 Business Rules Table Columns: Methods Based

Multipliers
values, from Methods Based Multipliers BR table:
BR BR Table Column Objective Sample Values

# Column
1 ID To uniquely identify the BR table’s column entry P2_RULE010
2 Description Description can be any text. P2_RULE010 multiplier for the

methods – Equity, Proportionate &
Full.
3 Entity Method Entity Method column is used to specify a filter • 100 for Full method
restriction. This Method-based Multiplier is only • 20 for Equity method
applied to data records where the Entity dimension • 50 for Proportionate method
member is assigned to Proportional (‘50’), Full • 101 for Holding
(‘100’) and Holding (‘101’) Method Codes.
4 IINTCO Method INTCO Method column is also used to specify a • 99 – Intercompany members
filter restriction. This Method-based Multiplier is with any method
only applied to data records where the INTCO • 20,100 – Intercompany
dimension member is assigned to Proportional members with 20 & 100 method
(‘50’), Full (‘100’) and Holding (‘101’) Method codes
Codes.
5 ALL Formula “ALL Formula” column has a corresponding and • 1 : Extract the singed data value
matching column in the Business Rules as is(100%)
configuration for “Eliminations and Adjustments”. • POWN : Extract POWN% of
In the “Eliminations and Adjustments” signed data
Business Rules configuration, the “ALL Formula” • 1 – POWN : Extract (1 –
column contains one or many Account dimension POWN%) value of the signed
members. data.
The formula in the Method-based Multiplier is
applied to the amounts stored on these Account
dimension
Members.


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6 Group Formula Group Formula column has a corresponding and • 1 : Extract the singed data value
matching column in the Business Rules as is(100%)
configuration for “Eliminations and Adjustments”. • POWN : Extract POWN% of
In the “Eliminations and Adjustments” Business signed data
Rules configuration. the “Group Formula” column • 1 – POWN : Extract (1 –
contains one or many Account dimension POWN%) value of the signed
members. The formula in the Method-based data.
Multiplier is applied to the amounts stored on these
Account dimension members. For consolidation of
investments, the group column is used for group
share interests calculation and postings to equity.
For intercompany eliminations, this field is used for
the offsetting clearing account. As a result, this
formula is exactly the same as the “ALL Formula”
column.
7 Minority Minority’ column has a corresponding and • 1: Extract the singed data value
matching column in the Business Rules as is (100%)
Configuration for “Eliminations and Adjustments”. • POWN : Extract POWN% of
In the “Eliminations and Adjustments” Business signed data
Rules configuration. The “Minority” column • 1 – POWN: Extract (1 – POWN
contains one or many Account dimension %) value of the signed data.
members. The formula in the Method-based
Multiplier is applied to the amounts stored on these
Account dimension members.
8 Remark To capture the remarks or documentation or User Method code 100

instructions


______________________________________________________________
11.2.1.1 Example: BR in Action (Step By Step Execution)

The following steps show the BR executions while financial assets of two
entities are consolidated using Purchase/Full method.
The following step shows how the parent’s investment made in the
subsidiary has been offset by using Purchase method as the Parent has
more than 50% stake in the subsidiary
As per the parent entity’s accounting policy, parent’s investment (AST005)
in the subsidiary has to be eliminated i.e. zeroed when Purchase method is
applied for consolidation.
When consolidation process is run from consolidation monitor or
through the script, the following steps are executed:
Step # Task
1 Data source (Appendix-A) is read for the account AST005 (Investment Account-Purchase),
and the values for parent entity (Holding Company), subsidiary/INTCO (I_US) and signed
data has been identified and recorded for subsequent processing.
2 For the investment account (Purchase), parent entity has been identified and recorded for
subsequent processing (Holding Company). This parent entity has stake in the subsidiary
(I_US).
3 For the investment account (Purchase), subsidiary/INTCO is noted (I_US) in the data
source. This is the subsidiary wherein the parent (Holding Company) has stake.
4 Singed data (amount invested) is noted ($140000). This is the amount the parent has
invested in the subsidiary. During consolidation, this amount will be adjusted depending on
the control the parent exercises over the subsidiary.
5 Now, the system looks for the base level entity (Holding Company) within the Ownership
hierarchy.
6 System looks for the base level entity (I_US) in the Ownership Hierarchy.


______________________________________________________________
7 And, then the system looks for the common parent for both entities – Holding Company
and I_US. In this case, it is the top level entity – S_World.
8 Now, for the group – S_World, the system looks for ownership data with the Entity as
Holding Company on the right hand side.
9 For the entity – Holding Company, current consolidation (101 - Holding) method has
been identified and recorded.
9.1 System goes through the BR table for Elimination and Adjustments rules, and looks for
record/rule with AST005 as Source account.
9.2 For the Source account – AST005, Destination account (AST005) is noted. This is the
account to which, the final adjusted amount will be posted.
9.3 Multiplier ID has been identified and recorded (P2_RULE060). Formula in this rule will be
applied to the amount read from the data source and the final amount will be posted under
the Destination account.
10 System now goes through the Methods Based Multipliers BR table and looks for the
record/rule corresponding to the ID: P2_RULE060. It then looks for a record with the entity
method as 101. This is the entity method read at Step 9.
11 System looks for the column corresponding to the column noted in Step 9.2(Destination
All Account) i.e. All Formula column.
12 For the entity method – 101, and Formula (1) under the All Formula is now identified and
recorded for subsequent processing.
13 Signed data noted in Step 4($140000) is multiplied by the formula (1) and posted to the
Destination account has been identified and recorded in Step 9.2(AST005).
Steps 1 through 13 are applied to other records with AST005 as the accounts in the CSV
file and amount is posted. And the final posted/offset amount is: $520,000.


______________________________________________________________


______________________________________________________________
Below screen image shows the steps that are explained in the above
table in a sequence, please follow the sequence number and then
compare the table above.
Figure – 12: Business Rules in Action


______________________________________________________________
11.3 Business Rules Table: Eliminations and Adjustments

The following picture shows the BR table (General section) meant for
Eliminations and Adjustments:
Figure – 13: Eliminations and Adjustments- General View


______________________________________________________________
values, from Eliminations and Adjustments BR table(General Section):
BR # BR Table Column Objective Sample Values

Column
Logical ID used to identify the rule in the Elimination and P2_ELCOI1

1 ID Adjustments BR table. P2_ELCOI2
P2_ELCOI3
Description of the logical ID, which is used to identify the P2_ELCOI1

2 Description rule in the Elimination and Adjustments BR table. P2_ELCOI2
P2_ELCOI3
Used to filter the data source records. If specified, BR will Journal

3 Source be applied to those records with that particular data source. INPUT_DATA
Audit If left blank, all the records will be processed and BRs will
be applied accordingly.
Destination data source member. AJ_COI1

4 Destination AJ_COI2
Audit If specified, final amount to be adjusted/offset will be written AJ_COI3
under this data source.
If not specified, final amount to be adjusted/offset will
written under the Source data source.
The CONSO_TYPE property value from the Groups A-A

6 Group Type (Currency) dimension. If, for example, you have the
Filter GROUP GROUP1 with conso_type = A, all the Automatic
Eliminations with Blank are available for all groups. The
Automatic Eliminations with Group_filter member = A are
available for GROUP1 and all groups with Group filter
member = A.
This field is only used for intercompany eliminations. If this OWNER

7 Entity field contains a value, the system looks for the existence of INTCO
Property a corresponding PROPERTY in the ENTITY dimension, and HIR
only performs the elimination if the ENTITY. The INTCO CALC
Filter partner has the same value in this property. CURRENCY
CONTROL_LEVEL
Used to specify the adjustment type. This type can be E – (Equity)

8 Adjustment Equity, Proportionate, New Company or Leaving method. P–
Type Else, if adjustment type has to be other than these four, (Proportionate)


______________________________________________________________
leave this field as blank. N – (New
Company)
L – (Leaving
Company)
This field must contain an integer value ranging from 0 to 99 0

9 Adjustment and can be used to order the sequence of execution of the 1
Level various ELIM rules, if desired. 2
3
Blank(No Filter)
10 Other This field can be used to define a filter controlling the region
SINGEDDATA > 10
Dimensions METHOD = 101
where the elimination can be applied. It can contain the
PPOWN <>0
Filter following values:
I_POWN < POWN
• Blank (No Filter)

• An expression defining one or more filters. These
can be applied to any combination of the
following information:
o The SIGNEDDATA amount (example:
SIGNEDDATA> 10)
o Any ACCOUNT of the OWNERSHIP
cube (example: METHOD = 85)
cube as defined in Prior period
(example: PPOWN <>0, where
PPOWN is Prior period’s POWN
account)
cube as assigned to the
INTER_COMPANY partner (example:
I_POWN < POWN)
The filters can be concatenated with the AND operand.

Alternatively, any valid SQL expression filtering the values
in any desired way can be used. In this case the syntax
must strictly comply with SQL requirements, for example
single quotes around the members IDs.
11 Force This field can be used to enforce the destination member of This field may contain the
Destination any dimension existing in the MAIN cube. following values:
Members
• Blank (No
Change)
• An expression
enforcing the
value for one or
more dimensions


______________________________________________________________
of the MAIN cube.
Each dimension
must be separated
by a comma
(example:
CATEGORY=BUD
GET, ENTITY=
NewYorkBranch)
Filters the ownership value For example, to apply a rule

12 Ownership to only those entities whose
Filter ownership percentage in a
group or scope is larger than
70%, you enter POWN >
0.7.
The following picture shows the BR table (Details section) meant for
Eliminations and Adjustments:
Figure – 14: Eliminations and Adjustments- Detail View


______________________________________________________________
11.3.1 Business Rules Table Columns: Eliminations and

Adjustments
values, from Eliminations and Adjustments BR table (Details Section):
Logical ID to identify the eliminations ELIM_RULE1

1 ID and adjustments rule
Description of the eliminations and Rule to offset the

2 Description adjustments rule investment made by the
parent in the subsidiary.
Select accounts to include. Use a base AST001

3 Source Account or parent member, or a TYPEELIM or AST002
DIMLIST property value AST003
AST004
AST005
Select flow members to include. Use a Balance

4 Source Flow base or parent member, or a TYPEELIM Increase
or DIMLIST property value Opening
Decrease
Blank(all records will
be processed)
Reverse the sign of the data based on Checked or not

5 Reverse Sign account type checked box
Target account for the All Formula AST001

6 Destination All Account percentage in the Method - Based AST002
Multiplier table. Use a base or parent AST003
member, or a TYPEELIM or AST004
DIMLIST property value AST005
Target account for the Group Formula AST001

7 Destination Group percentage in the Method - Based AST002
Account Multiplier table. A base or parent AST003
Account, a TYPEELIM or DIMLIST AST004


______________________________________________________________
property value in the account dimension AST005
Target account for Minority Formula AST001

8 Destination Minority percentage in the Method - Based AST002
Multiplier table. A base or parent AST003
Account, a TYPEELIM or DIMLIST AST004
property value in the account dimension AST005
Target account for the All Formula AST001

9 Destination Equity percentage in the Method - Based AST002
Account Multiplier table for the EquityMethod. AST003
A base or parent Account, a TYPEELIM AST004
or DIMLIST property value in the AST005
account dimension
10 Target base level flow member Balance
Destination Flow Increase
Opening
Decrease
Blank(all records will
be processed)
The Rule ID from the Method - Based P2_RULE010

11 Multiplier Multiplier table P2_RULE020
If Y it generates an extra record on the Checked

12 Force Closing closing flow, otherwise leave blank Unchecked
If Y, it will swap the member of the Entity Checked

13 Swap Entity INTCO dimension with the intercompany Unchecked
member
To hard code the target intercompany Checked

14 Force INTCO Member member instead of using the source Unchecked
Can be used in a YTD Model (or an Checked

15 Periodic CALC application) when the ownership Unchecked
percentage should be applied on the
periodic values
Remark text about the rule. Eliminations and

16 Remark adjustments rules.


______________________________________________________________
11.4 Business Rules Table: Carry Forward

The following picture shows the BR table meant for Carry Forward:
Figure – 15: Carry forward business rule


______________________________________________________________
11.4.1 Business Rules Table Columns: Carry Forward

values, from Carry Forward BR table:
To identify the base/parent level BS111

1 Source Account accounts to which the BRs are to be BS121
applied. This can also be DIMLIST BS122
property of accounts. DIMLIST allows BS231
accounts to be grouped and selected for
BRs to be applied.
To identify the base/parent level Flow Balance

2 Source Flow members for which, BRs are to be Opening
applied. This can also be DIMLIST Increase
property which allows Flow members to Decrease
be grouped and selected for BRs to be
applied.
To identify the base/parent level data INPUT_DATA

3 Source Audit source members for which, BRs are to
be applied. This can also be DIMLIST
property which allows data source
members to be grouped and selected for
BRs to be applied.
The destination account - base level or BS111

4 Destination Account parent. If blank, inherit BS121
from source. BS122
BS231
The destination flow - base level or Balance

5 Destination Flow parent. If blank, inherit from Opening
source. Increase
Decrease
The destination data source - base level INPUT_DATA

6 Destination Audit or parent. If blank, inherit ADJ_BCF
from source.
Reverse the sign of the source value Checked

7 Reverse Sign based on an account type Unchecked


______________________________________________________________
Select data source type to include: A - A – (All)

8 Audit Type All, I - Input, M - Manual I – (Input)
M – (Manual
Journal)
If selected, the source time period is the Checked (source

9 Same Period same as the destination. time period is same
Otherwise, the source data is the last as destination time
period of the prior year period)
Unchecked(source
data is the last data
of the prior year)
In a periodic model, select to calculate Checked (to

10 Apply To YTD the YTD value to copy calculate YTD value
to copy)
Unchecked
Remark text about the carry forward Remark text

11 Remark rule.


______________________________________________________________
11.5 Business Rules Table: Account Based Calculations

The following picture shows the BR table meant for Account Based
Calculations:
Figure – 16: Account Based Calculations Business Rules


______________________________________________________________
11.5.1 Business Rules Table Columns: Account Based

Calculations
values, from Account Based Calculations BR table:
Logical ID used to identify the rule in CF

1 ID the Account Based Calculations BR
table.
Description of the logical ID, which is Cash Flow Calculations

2 Description used to identify the rule in the Account
Based Calculations BR table.
The source account base level, parent, PL700

3 Source Account or dim list property value AST002
LEQ002
The source category - base level, Actual

4 Category parent, or DIMLIST property value Plan

The source flow base level, parent, or Balance
5 Source Flow dim list property value Opening

The source data source base level, TOTAL_ADJ
6 Source Audit parent, or dim list property AJ_COI1
value AJ_COI2
AJ_COI3
7
The destination account base level or CF101
Destination Account parent. If blank, inherit CF102
from source. CF103
CF104
The destination category - base level, Actual

8 Destination Category parent, or property value Plan
The destination flow - base level or Balance

9 Destination Flow parent. If blank, inherit from source. Opening
The destination data source - base TOTAL_ADJ


______________________________________________________________
10 Destination Audit level or parent. If blank, inherit from AJ_COI1

source. AJ_COI2
AJ_COI3
Reverse the sign of the source value Checked

11 Reverse Sign based on account type (ex: INC , EXP, Unchecked
AST, etc)
If not specified, the source time period -1

12 Source Period is the same as the destination. This
could also be used in planning
scenarios.
If not specified, the source year is the 2011

13 Source Year same as the destination. This could 2012
also be used in planning scenarios.
To hard code the target intercompany Checked or

14 Force INTCO Member member instead of using the source Unchecked
In a periodic model, select to calculate Checked or

15 Apply To YTD the YTD value to copy. This could also Unchecked
be used in planning scenarios.
This controls the sequence of execution 0

16 Level for each row/rule. 1
2
Remark text Remark text

17 Remark


______________________________________________________________
11.6 Business Rules Table: Intercompany Bookings

The following picture shows the BR table meant for Intercompany Bookings:
Figure – 17: IC Bookings Business Rule


______________________________________________________________
11.6.1 Business Rules Table Columns: Intercompany

Booking
values, from Intercompany Bookings BR table:
Logical ID used to identify the rule in the BS_ACCT

1 ID Intercompany Bookings BR table.
Description of the logical ID, which is used to Parent Matching

2 Description identify the rule in the Intercompany Bookings BR
table.
Determines whether the buyer or seller receives S

3 Type thedifference. B
• S - Seller: Buyer receives the difference G
• B - Buyer: Seller receives the difference
• G - Greatest: Entity with the greatest amount
receives the difference
Target dimension member other than account, Blank

4 Other Destination flow, and intercompany.
Dimension
Target data source to which, the difference is to be ICDIFF
5 Booking posted.
Destination
The limit of the balancing entry. Differences above 100000

6 Max. Booking this amount will not be posted.
Amount
Debit Account Debit account for the difference ICDIFFERENCE
Debit INTCO Debit intercompany for the difference I_US
Credit Account Credit account for the difference LEQ008


______________________________________________________________
Balance
Debit flow for the difference
10 Credit Flow
11 Credit INTCO Credit intercompany for the difference I_US
12 Remark Remark text about the IC booking rule. Remark text


______________________________________________________________
11.7 Business Rules Table: US Eliminations

The following picture shows the BR table meant for US Eliminations:
Figure – 18:US Eliminations Business Rule


______________________________________________________________
11.7.1 Business Rules Table Columns: US Eliminations

values, from US Eliminations BR table:
ID used to identify the elimination rule. ICELIM

1 Elimination ID
This can be a base level or parent data INPUT_DATA

2 Source Audit source member. Dim list property can
also be used to filter members.
The destination data source base level US_ELIM

3 Destination Audit or parent. If blank, inherit
from source.
Remark text US elimination

4 Remark


______________________________________________________________
11.8 Business Rules Table: Currency Translation

The following picture shows the BR table meant for Currency Translation:
Figure – 19: Currency Translation Business Rule


______________________________________________________________
11.8.1 Business Rules Table Columns: Currency

Translation
values, from Currency Translation BR table:
Rule ID AVG
1 ID
Description of the rule. Average Rate
2 Description
The Source Flow column is used to Balance
3 Source Flow restrict the currency translation of Opening
average rate to one or many Flow Increase
dimension members. In this exercise, Other
the currency translation for ‘AVG’ rate
types is restricted to closing
balance (“Balance” source flow) records
The Destination Account column is used AST001

4 Destination Account to specify which account to post the AST002
currency translation results to. AST003
When left blank the destination account LEQ001
is the same as the source account. LEQ002
LEQ003
5 Destination Flow The Destination Flow column is used to Balance

specify which flow to post the currency Opening
translation results. When left Increase
blank the destination flow is the same as Other
the source flow.
Formula. Formula syntax exists to [AVG]

6 Formula perform mathematical operations. In this [COPYLC]
case, the first formula is simply to
find the AVG rate type in the Rate Model
and use it in the currency translation
calculation to translate local
currency records (reporting currency
‘LC’) into group and reporting currency
records. The second formula,
[COPYLC], copies the current records
LC values for any Entity defined with a
FX_TYPE property value of
“US”.


______________________________________________________________
The Force closing column will Checked

7 Force Closing automatically carry forward the Unchecked
calculation into the closing flow. Since
this rule only applies to the closing flow
(i.e. Source Flow = ‘Balance’), this flag is
left blank. Otherwise, records would
double up.
The Periodic Calc column is used to Checked

8 Periodic Calc restrict the currency translation to a Unchecked
period movements instead of a year-to-
date accumulated amounts within a
Reporting Model that is defined with a
“Data Entry Mode” as ‘YTD’.
The Entity Fx Type column is used to US

9 Entity FX Type restrict currency translation to a specific
Entity based on the property
“FX_TYPE” in the Entity dimension.
Remark text Remark text

10 Remark


______________________________________________________________
12. Business Rules: Implementation

12.1 Business Scenario – 1: Implementation
Business Scenario - 1:
If the parent company has less than 25% control/stake over the
child/subsidiary, Equity method has to be used when consolidating
financial assets of the parent and child.
If the parent company has less than 50% control/stake over the
child/subsidiary, Proportionate method has to be used when
consolidating financial assets of the parent and child.
If the parent company has more than 50% control/stake over the
child/subsidiary, Purchase/Full method has to be used when
consolidating financial assets of the parent and child.
Business Rules Implemented:
Business Rules for Methods(BR #1) will be configured to implement the

above.


______________________________________________________________
[A]. Launch SAP BPC web admin. Interface.


______________________________________________________________
[B]. Go to Rules section.


______________________________________________________________
[C]. Select Business Rules link.


______________________________________________________________
[D]. Click Methods link.


______________________________________________________________
[E]. Enter the data as shown below and save the data.


______________________________________________________________
12.2 Business Scenario – 2 & 3 : Implementation

Business Scenario – 2 & 3:
Parent Company – Holding company, has invested $ 1, 40,000 in its

subsidiary – US.
subsidiary – SG.
subsidiary – DE (Germany).
Parent Company – SG has invested $ 1, 20,000 in its subsidiary – IN
(India).
Since Holding Company has more than 50% stake/ownership in its
subsidiaries – US, SG, DE and IN, Purchase method will be used to
consolidate financial assets.
Since purchase method is used for consolidation, parent company’s
investment in the subsidiaries ($5, 20,000) will be off-set using formula
defined under the Methods Based Multipliers section.
Business Rules for Method Based Multipliers(BR #2) and Business

Rules for Elimination and Adjustments(BR #3) will be configured to
implement the above.


______________________________________________________________
[A]. Ensure that the data for Dec, 2011 is uploaded into SAP BPC server and
currency conversion is done on the data.
[B]. Go to Home workspace.


______________________________________________________________
[C]. Go to Ownership manager as shown below:


______________________________________________________________
[D]. Key-in Ownership data for the period – Dec, 2011, as shown below:


______________________________________________________________
[E]. Launch web admin interface.


______________________________________________________________
[F]. Go to Business Rules – Methods section as shown below:


______________________________________________________________
[G]. Create Methods data as shown below:


______________________________________________________________
[H]. Go to Methods Based Multipliers section.


______________________________________________________________
[I]. Create a rule under Methods Based Multipliers section as shown below:


______________________________________________________________
[J]. Go to Eliminations and Adjustments section.


______________________________________________________________
[K]. Create a rule under Eliminations and Adjustments as shown below:


______________________________________________________________


______________________________________________________________
[L]. Go to Home workspace.


______________________________________________________________
[M]. Click Consolidation Monitor.


______________________________________________________________
[N]. Specify the data context as shown below:


______________________________________________________________
[O]. Highlight the top level group and run Consolidation process.


______________________________________________________________
[P]. Click OK button on the following screen.


______________________________________________________________
[Q]. The following report shows the data after consolidation. In the report,
Investments made under Purchase method for all the entities have all been
off-set(highlighted in RED colour).


______________________________________________________________

Closing balance for the Cash account for the period – Dec, 2011, is
$10,000.00
Closing balance for the Machinery & Equipment account for the period
– Dec, 2011, is $20,000.00
Closing balance for the Trade Receivables account for the period –
Dec, 2011, is $30,000.00
Retained earnings for the current year - Dec, 2011, is $10,00,0000.00
Business Rules defined under the Carry Forward section will be used to
carry forward the above closing balances for the period – Dec, 2011, to
the opening balances for the next financial period – Jan, 2012..
Business Rules for Carry Forward (BR #4) will be configured to

implement the above.


______________________________________________________________
[A]. Launch SAP BPC web admin. interface.


______________________________________________________________
[B]. Create a model(BCF_DEMO) as shown below:


______________________________________________________________
[C].Go to Business Rules section in the web admin. interface as shown below:


______________________________________________________________
[D]. Highlight the model on the right hand side as shown below:


______________________________________________________________
[E]. Click the Add/Remove Rule Types button at the top.


______________________________________________________________
[F]. Enable the Carry-Forward rule as shown below:


______________________________________________________________
[G]. Go to BR section and click on the Carry- Forward link for the BCF_DEMO
model.


______________________________________________________________
[H]. Create business rules for Carry-Forward as shown below.


______________________________________________________________
[I]. Go to the Logic Scripts section now.


______________________________________________________________
[J]. Click on BCF_DEMO link as shown below:


______________________________________________________________
[K]. Create a logic script(if it does not exist) to call Carry-Forward BADI as
shown below.


______________________________________________________________
[L]. Go to Home workspace and launch Excel add-in for MS Office:


______________________________________________________________
[M]. In the Connection Manager window, choose the connection to

BCF_DEMO model and click OK button.


______________________________________________________________
[N]. Click on Data Manager menu.


______________________________________________________________
[O]. Click on Organize Package List.


______________________________________________________________
[P]. Create a DM package script which calls the Carry-Forward logic

script(COPY_OPENING_LGF).


______________________________________________________________
[Q].Click on EPM menu now.


______________________________________________________________
[R]. Create an input form to accept closing balances for the accounts BS122,
BS121, BS111, BS231 & BS232- .


______________________________________________________________
[S]. Key in the data in the input form and save it.


______________________________________________________________
[T]. Now, run the DM package with the following inputs.


______________________________________________________________
[U]. Click Finish button now.


______________________________________________________________
[V]. Carry-Forward BADI is run and balances are carried forward now.
Refresh the following INPUT form/report to see the carried-forward balances.


______________________________________________________________
12.4 Business Scenario – 5 : Implementation

When generating cash flow statement, the company wants to reclassify

the following accounts:
o ‘ ANI Transfer’ account as ‘Net Income’ account
o ‘Depreciation-Machinery’ as ‘Add Back Depreciation’ account
Business Rules’ defined under the Accounts Based Calculations
section, will be used to reclassify the above accounts.
Business Rules for Account Based Calculations(BR #5) will be

configured to implement the above.


______________________________________________________________
[A]. Launch SAP BPC web admin. interface.


______________________________________________________________
[B]. Create a model(RECLASSIFY_DEMO) as shown below:


______________________________________________________________
[C]. For the model, enable the Account Based Calculations BR.


______________________________________________________________
[D]. Go to BR section and click on the Account Based Calculations link for the
RECLASSIFY_DEMO model.


______________________________________________________________
[E]. Create BRs for Account Based Calculations as shown below.


______________________________________________________________
[F]. Go to Logic Scripts section and click on RECLASSIFY_DEMO link.


______________________________________________________________
[G]. Create a logic script to call Account Based Calculations

BADI(CALCACCOUNT.LGF).


______________________________________________________________
[H]. Go to Home workspace and launch Excel add-in for MS OS Office.


______________________________________________________________
[I]. In the Connection Manager window, choose the connection to

RECLASSIFY_DEMO model.


______________________________________________________________
[J]. Click Data Manager menu and then click Organize Package List sub-
menu.


______________________________________________________________
[K]. Create a DM package script which calls the Account Based Calculations
logic script.


______________________________________________________________
[L]. Create an input form to accept data for the accounts 30527140,
39000000, CF901 & CF902.


______________________________________________________________
[M]. Key in the data in the input form as shown below and save it.


______________________________________________________________
[N]. Now, run the DM package with the following inputs.


______________________________________________________________
[O]. Refresh the input form to see the Account Based Calculations results.


______________________________________________________________

Business Scenario – 6 – IC Matching/Booking:
The entities – Holding Company, US, SG and IN, have the following
intercompany transactions happened among them:
Holding Company has IC Receivables transactions with US entity.

US entity has IC Payables transactions with the Holding Company.
SG entity has IC Receivables transactions with India entity.
India entity has IC Payables transactions with SG entity.
Holding Company has IC Sales transactions with US entity.
US entity has IC COGS transactions with the Holding
SG entity has IC Sales transactions with India entity.
India entity has IC COGS transactions with SG entity.
Business Rules will be used to match these IC transactions, and to book the
differences among them, if any.


______________________________________________________________
1) Create a model(Consolidation) of type – consolidation, as shown below:


______________________________________________________________
2) Create a model(IC_Matching) of type – Financial, as shown below:


______________________________________________________________
3) create a model(Rates) of type - Exchange Rates, as shown below:


______________________________________________________________
4) Create a model(Ownership) of type Ownership as shown below:


______________________________________________________________
5) Configure AUDITTRAIL DIM for consolidation model as follows:


______________________________________________________________
6) Create an input form to collect exchange rates data for Dec, 2011. We
will use this a little later.


______________________________________________________________
7) Create an input form to collect ownership data for all the entities for the
period - Dec 2011. We will use this a little later.


______________________________________________________________
8) Create a DM script, package and logic script to export IC transactions

from Consolidation to a separate model – IC_Matching. We run this a
little later.


______________________________________________________________


______________________________________________________________
9) Create a DM script, package and logic script to import booked IC

transactions back into Consolidation model. We will run this a little later.


______________________________________________________________


______________________________________________________________
10) Configure IC_AUDITTRAIL DIM as follows: This will be used by

the Consolidation model.


______________________________________________________________
11) Create a logic script to export IC transactions to a separate

model(IC_Matcing). We will use this a little later.


______________________________________________________________
12) Create a logic script to export IC transactions from IC_Matching

model into Consolidation model. We will use this a little later.


______________________________________________________________
13) Create BR to perform currency conversion on IC transactions

alone, within the IC_Matching model. We will use this a little later.


______________________________________________________________


______________________________________________________________


______________________________________________________________
14) Create BR to perform currency conversion on the GL

data(complete set). We will use this a little later.


______________________________________________________________


______________________________________________________________


______________________________________________________________
15) Create a DM package script, process chain and logic script to

match IC transactions.


______________________________________________________________


______________________________________________________________
16) Create a DM package script, process chain and logic script to

book IC transactions.


______________________________________________________________


______________________________________________________________
17) Create a report to review IC transactions within the IC_Matching

model. We will use this a little later.


______________________________________________________________
18) Create a report to verify currency conversion process after

currency conversion is performed on IC transactions. We will use this a
little later.


______________________________________________________________
19) Create a report to view matching IC transactions. We will use this

a little later.


______________________________________________________________
20) Create a report to view booked IC transactions. We will use this a

little later.


______________________________________________________________
21) Create a report to view data after group currency conversion is

performed on the GL data. We will use this a little later.


______________________________________________________________
22) Create a report to view consolidated report after regional

consolidation is done. We will use this a little later.


______________________________________________________________
23) Create a report showing consolidated BS statement after group

consolidation is performed. We will use this a little later.


______________________________________________________________
24) Upload the GL data shown below.


______________________________________________________________
25) Run DM package to import GL data into consolidation model.


______________________________________________________________


______________________________________________________________


______________________________________________________________
26) Collect exchange rates data for the period - Dec, 2011 through
the input form created(in step 6) earlier.


______________________________________________________________
27) Collect ownership data thru the input form created(in step 7)
earlier for the period – Dec, 2011.


______________________________________________________________
28) Generate consolidation methods based on ownership data

collected earlier(in step 27).
Note that the consolidation methods in the Current column will be used
for consolidation. For CA entity, Proportionate method will be used even
though the system suggested Full method. This is because the user
has manually changed, to Proportionate method, the system
suggested proposal.


______________________________________________________________
29) Run DM package(in step 8) to export IC transactions to a

separate model.


______________________________________________________________


______________________________________________________________
30) Review the IC transactions through the report(in step 17) created
earlier.


______________________________________________________________
31) Perform currency conversion on IC transactions as shown below

using BR created in step 13:


______________________________________________________________


______________________________________________________________
32) View the report (created in step 18) showing IC transactions

records after currency conversion is performed.


______________________________________________________________
33) Run DM package(created in step 15) which runs IC matching

process as shown below:


______________________________________________________________


______________________________________________________________
34) View the report(created in step 19) showing matching IC

transactions as shown below:


______________________________________________________________
35) Run DM package(created in step 16 ) which runs IC booking

process as shown below:


______________________________________________________________
36) View the report(created in step 20) showing booked IC

transactions as shown below:


______________________________________________________________
37) Run logic DM package(created in step 9) to export booked IC

transactions into consolidation model from IC_Matching model.


______________________________________________________________
12.6 Business Scenario – 7 : Implementation

Business Scenario – 7 – Currency Conversion :
Singapore entity has its financial data in its local currency – Singapore Dollar.
And, wants to see the data in US Dollar
The following data needs to be converted from local currency (SGD) to US

Dollar:
Accounts Receivable
Cash
Intercompany Receivables
Third Party Sales
Intercompany Sales
Material Cost
Business Rules will be used to perform currency conversion from Singapore

Dollar to US Dollar.


______________________________________________________________
1. Configure the following accounts in the Account DIM to make sure that
BS accounts are using CLOSING(CLO) conversion rate whereas PL
accounts are using AVERAGE(AVG) rate:
a. BS121
b. BS122
c. BS123
d. PL010
e. PL020
f. PL110
Similarly, configure the other accounts too.


______________________________________________________________
2. Create a model - CONVERSION_DEMO, of type Financial.:


______________________________________________________________
3. Create an input form to accept conversion rates for AVG and CLO rate
types.


______________________________________________________________
4. Create an input form to accept data for the accounts - BS121, BS122,
BS123, PL010, PL020 & PL110.


______________________________________________________________
5. Create a DM package, process chain and logic script to perform

currency conversion on the model - CONVERSION_DEMO. Create BRs
for currency conversion for the model – CONVERSION_DEMO


______________________________________________________________


______________________________________________________________


______________________________________________________________
6. Collect conversion rates for AVG and CLO.


______________________________________________________________
7. Collect data for the accounts - BS121, BS122, BS123, PL010, PL020 &
PL110 .


______________________________________________________________
8. Now, run the DM package created in step 5.


______________________________________________________________
9. Open an input form created in step 4 and refresh it. USD column shows
the converted data.


______________________________________________________________
13. Appendix-A – Data Source

Our solutions use many source systems and its data sources, including
SAP ECC GL System

Oracle GL System
JDE GL System
File
Our data management activities are carried out by using SAP HANA, SAP BW, SAP
BO Data Services and SAP BPC Data Manager Capabilities
Our data file layout – Sample


______________________________________________________________
13. Appendix-A – Data Source File (Contd.):



______________________________________________________________



______________________________________________________________



______________________________________________________________



______________________________________________________________

Our data file layout – Sample (Contd.)


______________________________________________________________

Our data file layout – Sample (Contd.)


______________________________________________________________
13. Appendix-B – Consolidated Balance Sheet

Our consolidation solutions creates many consolidated financial statements
and financial close packet reports, including
Consolidated P&L
Consolidated Balance Sheet
Consolidated Cash Flow
Consolidated GL Account Balance at Entity Level
Cost Allocation at WBS Level
Cost Allocation at Cost Center Level , etc
Consolidated Balance Sheet - Sample


______________________________________________________________
14. Disclaimer:
This article is a preliminary version and not subject to a license agreement or
any other agreement with SAP®. This document contains only intended
strategies, developments, and functionalities of the SAP product and is not
intended to be binding upon SAP to any particular course of business, product
strategy, and/or development. Please note that this preview is subject to
change and may be changed by SAP at any time without notice.
Either SAP or we assume no responsibility for errors or omissions in this

document. Either SAP or we does not warrant the accuracy or completeness
of the information, text, graphics, links, or other items contained within this
material. This preview is provided without a warranty of any kind, either
express or implied, including but not limited to the implied warranties of
merchantability, fitness for a particular purpose, or non-infringement.
Either SAP or we shall have no liability for damages of any kind including
without limitation direct, special, indirect, or consequential damages that may
result from the use of these materials. This limitation shall not apply in cases
of intent or gross negligence. The statutory liability for personal injury and
defective products is not affected.


______________________________________________________________
15. SAP Community Contributors:

Author : Chief Architect :

SAP Project Manager/ Lead SAP HANA/EPM/BI/EIM Community Leader
MurugesanA@cloneskills.com joesaran@gmail.com, (916)-296 0228 - Cell
As always, we appreciate your help and support in growing SAP

HANA/EPM/BI/EIM community. Don’t hesitate to contact us for on any of
your needs, including:
SAP BPC NW 10.0 Design guidelines

SAP BPC NW 10.0 Leading practices
SAP BPC NW 10.0 “end-to-end” implementation
Rolling Forecast
Planning
Budgeting
SKU-Level/Top-Down Planning
Consolidation / Financial Close
Analytics
Data Management
SAP HANA
etc.


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______________________________________________________________

SAP BPC NW 10.0 on HANA | KNOWLEDGEBASE

(A SAP EPM & HANA Community Service)

Business Rules for Financial Close -

Author: Chief Architect:

1. Executive Summary: ........................................................................................ 4

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 2

13. Appendix-A – Data Source File: ................................................................. 184

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 3

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 4

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 5

3. Business Rules Flow of Control:

Figure: 1: Business rules control and information flow

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 6

Step # 1: Business users launches EPM “add-in” excel

Step # 2: Business users calls a specific data manager package via

Step # 4: On prompt, the business users should be able to provide their

Read model data based on the business rule table context

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 7

Step # 8:Finally business users should be able to verify the outcome of

SAP BPC NW 10 uses minimal programming to automate the consolidation

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 8

4.1 Business Scenario – 1:

CubeInsights, Inc. offers pre-packaged industry analytics on a cloud platform,

Figure: 2: CubeInsights operating model

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 9

Figure: 3: CubeInsights subsidiaries and its ownership to parent

CubeInsights, Inc. Holding Company has subsidiaries in the following

Subsidiaries have the following entity structure:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 10

The Holding Company has ownership in its’ subsidiaries as follows:

Subsidiaries have ownership interest among themselves i.e.

The Holding Company is adopting the following accounting standards

All the subsidiaries/entities have intercompany transactions (among

The company prepares consolidated cash flow statement based on

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 11

The Holding Company does the consolidation of subsidiaries’ assets

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 12

The following diagram explains our integrated consolidation solution reference

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 13

Figure – 4: Our solutions proven reference architecture

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 14

5.1 Source Systems and Data Sources: Sample

Figure – 4.1: Our solution source systems and data sources

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 15

5.2: Real-Time Data Management:

Data Management Capabilities - Best Options

#1 - SAP HANA Data Management Capabilities

Author: Chief Architect:

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 16