FINANCIAL PLANNING

&
BUDGETING

Achyuth Kakarla
Financial Planning Process
FINANCIAL PLANNING
OVERVIEW
This process supports detailed financial planning to set operational targets and
provide a baseline for evaluating operational processes. It includes:

 Cost and activity planning to determine cost flows and activity rates

 Sales and profitability planning to determine volume and price targets,

expected discounts, and cost of goods sold 

 Product cost simulation to determine raw material prices and activity

usage

 Project planning to provide a baseline for revenue recognition and for

capital expense projects

 Financial statement planning, including profit and loss, balance sheet, and
cash flow
 Planning Admin

Expenses Planning

Cost center activity price and output quantity

planning.

Cost Center Activity Price calculation.

Planning and
Budgeting Cost center budgeting.

Cost center analytics.

Planning Admin
Expenses Planning
Cost Center Activity Price and Output Quantity Planning
Activity Price Calculation
Cost Center Budgeting
Cost Center Reports
Cost Center Analytics
 Sales and Profitability Planning

PLANNING ADMIN PROFITABILITY SALES AND REVENUE SALES AND

PLANNING PLANNING PROFITABILITY
REPORTS
Planning Admin
Profitability Planning
Sales and Revenue Planning
Sales and Profitability Reports
Sales and Profitability Analytics
 Internal Order Planning

PLANNING ADMIN PLANNING ADMIN

Planning Admin
Internal Order Planning
Investment Planning

• Planning Admin
• Investment Planning
Planning Admin
Investment Planning
Financial Statement Planning

• Planning Admin
• Financial Statement Planning
• Review Financial Statement
Reports
• Review Financial Statement
Analytics
Planning Admin
 Financial Statement Planning
Step # Step Name Instruction Expected Result

1 Access the Story Page From the main menu, open Browse > Files. The Files page is displayed.

2 Access the Story Find and display the story SAP__FI_BPL_IM_FINANCIAL_STATEMENT_PLANNING. The story SAP__FI_BPL_IM_FINANCIAL_STATEMENT_PLANNINGis displayed.

3 Copy Net Income Actual On the Profit and Loss tab, use data action Copy P&L and Balance Sheet from Actuals. Resulting Plan data is displayed.
Data to Plan

4 Transfer Plan Data from On the Profit and Loss tab, use data action Copy Gross Margin from Profitability Plan. Resulting Plan data is displayed.
Sales and Profitability model

5 Transfer Plan Data from On the Profit and Loss tab, use data action Copy Operating Expense from Cost Center Plan. Resulting Plan data is displayed.
Cost Center model

6 Transfer Plan Data from On the Profit and Loss tab, use data action Copy Investments & Depreciation from Resulting Plan data is displayed.
Investment Planning model Investment Plan.

7 Review and Adjust Profit On the Profit and Loss tab, adjust the net income amounts. Entered amounts are accepted.
and Loss Amounts

8 Allocate Trading Partner On the Profit and Loss tab, use data action Split Profit and Loss by Trading Partner. With the Allocated amounts are correct.
story filter on Trading Partner check that the amounts allocated on trading partners are correct
- see the Factors for Trading Partner Splitting from the Trading Partner tab in the admin story
for reference.

9 Plan Balance Sheet On the Balance Sheet - Changing tab, adjust the changing amounts and first period opening Entered amounts are accepted.
Changing Balance amount.

10 Plan Balance Sheet Closing On the Balance Sheet - Closing tab, adjust the closing amounts and first period opening Entered amounts are accepted.
Balance amount.

11 Carryforward Balance On the Balance Sheet - Closing tab, use data action Calculate Balance Sheet. Resulting plan data is adjusted.
Amounts

12 Review Balance Sheet Plan On the Balance Sheet Report tab, review the resulting plan data. Resulting Plan data is displayed.

13 Calculate Cash Flow On the Cash Flow tab, use data action Calculate Cash Flow - For Plan. Resulting Plan data is displayed.

14 Review Cash Flow On the Cash Flow tab, use data, review resulting plan data. Validation Balance row is zero for all plan periods.
Review Financial Statement Reports
Review Financial Statement Analytics