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SAP BPC Consolidations


Simplify your BPC Consolidations implementation with Method360

By Graham Jordan 

SAP’s BPC Consolidations functionality is a very important tool for multinational corporations, but can be intimidating to implement.

Method360’s experience in implementing complex consolidations solutions means that with us on your team, your project is in a great position to succeed on time and under budget.

For those of you who are not familiar with SAP’s BPC Consolidation functionality, SAP summarizes it best:

“SAP Financial Consolidation is a consolidation and management reporting solution. The solution provides full process control and data transparency, permitting simulation of unlimited scenarios that address all performance management reporting requirements of an organization.

All calculations and consolidations occur in the database.

The solution combines legal and management reporting structures into one process, permitting consolidation and direct comparison of all possible views in one integrated data model. The integrated data model also allows organizations to perform side-by-side, what-if simulations.

All processes run with a detailed audit trail providing full trace-ability.

The data model ensures application scalability, enabling an organization to scale-up to meet new requirements as its growth demands. It allows a typical user to rapidly achieve consolidated projections and to perform the following tasks:

  • Currency translation adjustments
  • Minority interest and equity calculations
  • Intercompany reconciliations
  • Automatic cash flows

The application can handle multiple reporting channels with different charts of accounts, different account flows, or analysis dimensions over time. It also manages the retention of past reporting frameworks.

The financial consolidation solution allows companies to implement financial disclosure policies completely and from a single performance management solution. Data coming into the financial consolidation solution is intelligently checked and filtered based on the reporting framework and the rules defined by the organization’s central finance team. Examples of automatic checkpoints include the following:

  • GAAP presentation
  • Required information breakdowns
  • Starting dates, and end dates

Intelligent checking and filtering ensures data quality at every level of the corporate reporting cycle. The validations and controls in the application ensure that incoming information has the following characteristics:

  • Is timely
  • Is in the expected format
  • Makes sense
  • Is consistent, complete, and commented appropriately
  • Goes through the right approval process

Using simple, standard reports, SAP Financial Consolidation provides a transparent view of accounting data, from source to disclosure. System-dedicated dimensions such as flow, audit ID, ledger name, journal entry number, and geographical origin, automatically feed the audit trail, revealing precise accounting movements and postings, whether manual or automatic.

The financial consolidation solution provides the following:

  • Secure authentication
  • Granular functional rights management
  • Optimal data confidentiality and access control
  • Thorough data access definition at the dimensional-value level

SAP Financial Consolidation tracks all maintenance activities, such as adding an account or user, and automatically generates log trails with author, date of creation, and modification. An event log provides an additional overview of any action performed in the system, enabling system managers to document and describe all changes.

 

Business Scenario:

cons-blog-1

cons-blog-2

This diagram shows the different possible configurations:

  • One TOP site, where users directly enter data through the Financial Consolidation web site, or locally through a standalone configuration with a local database. Packages are sent via transfers.
  • Sub-groups for sub-consolidations sites. Setup can be customized for each sub-group. Users enter data through the Financial Consolidation web site, or locally through a standalone configuration with a local database. Packages are sent via transfers.

 

The Financial Consolidation Platform with HANA:

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Contact BPCUpgrades@Method360.com today to schedule a free Consolidations workshop, and begin your journey toward faster, more accurate, and more detailed consolidated reporting.

 

References:

https://help.sap.com/viewer/16510f9844ae44c98d879ef32eadf08c/10.1.5/en-US/fa0dd29f6faf1014878bae8cb0e91070.html

https://help.sap.com/viewer/16510f9844ae44c98d879ef32eadf08c/10.1.5/en-US/fa0bd6df6faf1014878bae8cb0e91070.html

https://help.sap.com/viewer/16510f9844ae44c98d879ef32eadf08c/10.1.5/en-US/fa0da5316faf1014878bae8cb0e91070.html

 


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