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Simplify and Accelerate your Planning & Budgeting Process through SAP Business Planning.

Sumil Vikamsey, ACA
EPM Specialist Business Objects, an SAP company Email: sumil.vikamsey@sap.com

Piyush Doshi FCA, ICWA
Managing Consultant PricewaterhouseCoopers Email: piyush.doshi@in.pwc.com

AGENDA

Budget, Planning and Forecasting BPC Strength Budget process demo

AGENDA Budget. Planning and Forecasting BPC Strength Budget process demo .

SAP – Delivering a Coherent. Consistent. Harmonisation. etc Shared Services Tax Access Control Process Control CSR Treasury Standardisation. Fast Close Real Estate Reliable Close Financial Value Chain Risk Management ERP GRC . Consolidation (SHC) Accounting. AP. FPM Suite for the CFO Office Strategy Management Business Profitability Management Business Planning Business Planning Business Consolidation BI Platform BI Platform Financial Transactions & Services Compliance & Audit Core Transactions AR.

Budgeting/Planning Traditionally done once a year Many companies moving to a rolling monthly/quarterly forecast Often begins with setting top level targets and pushing down Top down process typically followed by intensive bottom up process at a fairly low level of detail Detailed Revenue/COS planning Detailed Headcount plan (employee level detail or higher) Detailed Expense plan Detailed Capital Expenditure plan Balance Sheet/Cash Flow plan Allocations/Corporate Adjustments Various Overhead Allocations Adjustments to bring Bottom up plan in line with Top Down Targets Consolidation/Reporting Consolidate. Distribute budget reporting package(s) . etc. eliminations.

Forecasting Typically summary level of information Often includes extensive assumptions/driver based models Most companies moving to a rolling 12. 18. or 24 month forecast Frequently included as part of quarterly guidance provided to analysts P&L Consolidated or divisional level of detail (not usually cost centers) Largely handled by finance with less input from division managers Balance Sheet Derived from P&L using drivers/assumptions Some lines may include complex assumptions/forecasting methodologies Cash Flow Derived from Balance Sheet & P&L using assumptions Often the most important component of the forecast – everything else done in support of the Cash Flow .

Alignment and Communication of Plans .

Spreadsheets Nightmare Flexibility without control Difficult to maintain Budgeting nightmare Longer budget cycle time Versioning Problems Security Workflow .

Planning & Budgeting : Basic Expectations Automate budgeting & forecasting processes Accurately consolidate information for reporting to HO Proper workflow & security controls Flexibility in company financial performance analysis Instant & easy access to financial and planning data (Drill Downs / Drill through) Shorten the time to close and produce report No personal spreadsheets Streamline Audit and compliance issues. .

The Performance Management Challenge KM1 Data source BPM Application “Suites/Modules” Reporting User Interface structured data Planning ? Process unstructured data 11 June 2008 .

make the build convey that it's a complex process user interface (each section builds on click): * make reporting icon a stack of papers. 12/Mar/07 . * process use a green screen legacy app (black screen. (keep the photograph for later use) Kathleen McMahon. make * planning a stack of paper that are charts and graphs. lime green type on it fills the UI) right picture should be an icon of a person looking confused. process red arrows need to build after the individ cyls line up under each module. and more separated (done) we want to convey chaos (things that our customers are dealing with) rather than gray arrows. on click 1 representative from each cyl type lines up underneath reporting.Slide 10 KM1 put slide in corp template cylinders need to me more distinctive. planning.

High-Level Architecture .

Planning and Forecasting SAP BPC Solution Budget process demo Piyush Doshi FCA.doshi@in.AGENDA Budget.pwc.com . ICWA Managing Consultant PricewaterhouseCoopers Email: piyush.

SAP Business Planning & Consolidation .A Unified Approach to CPM Business Processes SAP BP&C: 1 Product Competition: 8-9 products Operational Tasks Collection of Data Communicate Consolidation Analysis & Reporting Report Distribution Re Me por as tin ur g em & en t Fo re ca st in g Bu dg et in g nn in g Fi na Cl nci os al e Pl a .

BPC for Planning SAP BPC 5. The Budget is organized by Business Process Flow.1 provide in a single tool a solution for all Budgeting processes. managing automatically Budget Version validation and approval as well as complex budget workflow Keys Functionalities: Automatic Budget Consolidation HR Budgeting process COS Budgeting Process OPEX and CAPEX Budgeting Process Automatic Multi Currency Conversion Top Down and Bottoms up Budget Driver Based budget Cash Flow Calculation … .

Very low cost of ownership Business Process Flows to reinforce control. Ensure consistency of process everywhere in the group Offline Capabilities – Ease of deployment and flexibility . OPEX sharing all or subset of Master Data and Data. familiar environment. One version of the truth across all budget process. COGS.Key Strength of the Solution Unification of all Budgeting Process – HR. review and validation – Control and reinforce Budget process across all BU. most powerful reporting and analysis capabilities. Excel Based and action pane – Ease of use. CAPEX.

User Experience: Microsoft Offices Office Integration TIAA-CREF (US) “Unified experience with familiar OFFICE interface” FranceTelecom (France) Action Panes “Drag&Drop and Contextual relevant Office Integration”. “ZFP” Jefferies Group (US) “expanded and fully unified interface with Office significantly simplifies internal and external Unique in the market financial processes” Charter Mac TIAA-CREF. Ace “user experience of the future” Insurance Across office and browsers . France Telecom. Curtiss Wright.

User Experience : Business Process Flows TIAA-CREF (US) Prepackaged application functionality … “simplify and unify budgeting and consolidations process”. NRG. “shift ownership: from 2 people to the finance … to manage the performance of business group and beyond” processes Ladbrokes (UK) “easier to integrate. involve users. and leverage the market Unique in IT and processes across company” “next generation functionality” NRG (US) TIAA-CREF.the way to standardize all “we see BPFs as Pyrotek performance management processes on SAP BPC” .

HR Budgeting Driver Based Automatic Calculation Department Transfer Process & Approval Promotion Process & Approval Salary Budgeting & Planning Personnel expense …. Expenses Budget Driver Based Automatic Calculation Multiple Calculation Method …. CAPEX OPEX Driver Based Automatic Calculation Capex by Assets Class Capex by Project Consolidated Review Product Profitability Allocated Expense PDF Publication Cashflow …. ….Budgeting Process Budget & Target Multiple Rates Multiple Budget Hierarchies Driver & Global assumption Setup Target Allocation Revenue & COS Driver Based Automatic Calculation Product Lines Management …. What-if Analysis Budget Version Setup …. .

DEMO .

we were able to produce that month's financial reports using the new software. All in a fraction of the time it used to take.LITASCO Selects SAP BPC® “The implementation process was incredibly quick. KPI analysis and scorecarding Why SAP BPC Easily integrated with existing SAP systems Seamless budgetary reporting integration Central data repository with real-time enterprise wide accessibility Easy KPI analysis with scorecarding Benefits Greater 360 business insight across the enterprise Compliance with GAAP consolidation regulations Streamlined three month consolidation process into one week Predictive analytics for non-financial KPIs allowing them to compare business targets Objectives Highlights . scalable solution that enhanced the ability to easily manage operation and financial requirements Cut reporting time Remove reliance on spreadsheets Enhance ability to analyze KPIs Easy integration with existing SAP systems Excellent training and ease of use Streamlined successful implementation in 5months Immediate access to reporting.litasco. The implementation was so quick that during the same month the financial reporting component went live.” Laurent Corbaz Head of Financial Reporting & Planning LITASCO Challenges and Opportunities Needed insight into the vital reporting and analysis of the organization Needed forward-looking capability to shape business success and insight to identify key performers Enterprise-wide. GAAP consolidation. and the Company Location Industry Products/Services Revenue Employees Web Site SAP® Solutions and Services www. Switzerland Oil traders of crude oil and refined petroleum easy-to use nature of the software meant our employees only required three days training.com SAP Business Planning & Consolidation LITASCO (LUKOIL International Trading and Supplky Company) Geneva.

Listasco Cockpit Management .

Cockpit Room .

Customers… .

com .doshi@in.pwc.com Piyush Doshi piyush.Thank You for Your Time Questions Sumil Vikamsey sumil.vikamsey@sap.