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SAP BPC NW 10.0 on HANA | KNOWLEDGEBASE

(A SAP EPM & HANA Communit Service

Business Rules for Financial Close -

Implementation Guide


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Table of Contents

1. Executive Summary: ........................................................................................ 42. Key Assumptions:............................................................................................. 53. Business Rules Flow of Control:....................................................................... 64. Business Scenario: ........................................................................................... 84.1 Business Scenario 1: ................................................................................... 95. Solutions Architecture: ................................................................................... 136. Solutions Building Blocks: .............................................................................. 177. Entity Structure: .............................................................................................. 208. Ownership Structure: ...................................................................................... 21

9. Business Rules: Configuration ....................................................................... 2210. Relationship Among Business Rules: ........................................................... 2610.1 Example: Relationship Among Business Rules .......................................... 2711 Business Rules Tables .................................................................................. 2811.1 Business Rules Table: Methods ................................................................. 2811.1.1 Business Rules Table Columns: Methods ............................................... 2911.2 Business Rules Table: Methods Based Multipliers ..................................... 3011.2.1 Business Rules Table Columns: Methods Based Multipliers ................... 3211.2.1.1 Example: BR in Action (Step By Step Execution) ................................. 3411.3 Business Rules Table: Eliminations and Adjustments ................................ 3811.3.1 Business Rules Table Columns: Eliminations and Adjustments .............. 4211.4 Business Rules Table: Carry Forward ........................................................ 44

11.4.1 Business Rules Table Columns: Carry Forward ...................................... 45 ............................................. 4711.5.1 Business Rules Table Columns: Account Based Calculations ................ 4811.6 Business Rules Table: Intercompany Bookings ......................................... 5011.6.1 Business Rules Table Columns: Intercompany Bookings ....................... 5111.7 Business Rules Table: US Eliminations ..................................................... 5311.7.1 Business Rules Table Columns: US Eliminations ................................... 5411.8 Business Rules Table: Currency Translation ............................................. 5511.8.1 Business Rules Table Columns: Currency Translation ........................... 5612. Business Rules: Implementation .................................................................. 5812.1 Business Scenario 1: Implementation ..................................................... 5812.2 Business Scenario 2 & 3 : Implementation .............................................. 6412.3 Business Scenario 4: Implementation ..................................................... 8212.4 Business Scenario 5 : Implementation .................................................. 10512.5 Business Scenario 6: Implementation ................................................... 12112.6 Business Scenario 7 : Implementation .................................................. 172


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13. Appendix-A Data Source File: ................................................................. 18413. Appendix-A Data Source File(Contd.): .................................................... 18513. Appendix-A Data Source File(Contd.): .................................................... 18613. Appendix-A Data Source File(Contd.): .................................................... 18713. Appendix-A Data Source File(Contd.): .................................................... 18813. Appendix-A Data Source File(Contd.): .................................................... 18913. Appendix-A Data Source File(Contd.): .................................................... 19013. Appendix-B Consolidated Balance Sheet ................................................ 19114. Disclaimer: ................................................................................................. 19215. 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 hasbasic knowledge and understanding on finical close process and also itsenabling technologies such as SAP BPC NW 10.0product.


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3. Business Rules Flow of Control:

Below diagram explains how a business user able to interact with businessrules, and perform their business functions using SAP BPC NW 10.0 out ofthe box business rules functionality How business rules work withinbusiness users?

Note:There are other options to call or to make the business rules to interactwith business users, here is a sample options to call/invoke a business rulefrom 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 betterview on the step by step approach to implement SAP BPC NW 10.0 businessrules

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

Step # 2:Business users calls a specific data manager package viaEPM add-in excel, the data manager package may be standardpackage or a custom package developed by customer

Step # 3: The data manager package intern calls a logic script with auser prompt (note: the user prompts are optional).

Step # 4:On prompt, the business users should be able to provide theirvalid inputs to the respective prompt

Step # 5:After accepting user inputs from the prompt, the logic scriptintern calls business rule with relevant parameters, the parameters arevary by business rules

Step # 6:Now the business rule reference the business rule table for theassociated context informations, after reading the business rule tablethe business rule function will read the applicable data region frommodel

Step # 7:Now the business rule will perform the following task, eachbusiness rules will have its own set of task based on the objective of thebusiness rules and its 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 ofthe business rules execution via a custom report, or a custom data inputform , or a SAP BW backend query, also through other options

4. Business Scenario:

CubeInsights, Inc. a Holding Company has legal subsidiaries in the UnitedStates, Canada, Germany, United Kingdom, Singapore and India, and not allof them are wholly owned. Besides that, these subsidiaries do make

intercompany transactions which need to be eliminated during theconsolidation/close process.

The company does many acquisitions and divestitures during the year thathas led to a complex and lengthy close process. To speed up the financialclose process, the company has decided to automate their consolidationprocess using SAP BPC NW 10.

SAP BPC NW 10 uses minimal programming to automate the consolidationprocess. The SAP BPC NW 10.0 software primarily uses predefined set ofBusiness Rules to automate the consolidation process. Business Rules are

table driven approach and it does not require complex programming/codingefforts to implement the consolidation process.

SAP BPC implementation team decided to explore the business rules, insteadcustom coding and custom artefacts.


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4.1 Business Scenario 1:

Below diagram explains a global companys 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 parentcompany

CubeInsights, Inc. Holding Company has subsidiaries in the followingcountries:

o United Stateso Canadao Germanyo United Kingdomo Singaporeo 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 standardswhen consolidating assets of its subsidiaries:

o Equity method has to be followed for consolidation ofsubsidiaries assets if the Holding Company is having less than25% shares in its subsidiary.

o Proportionate method has to be followed for consolidation ofsubsidiaries assets if the Holding Company is having more than25% shares but less than or equal to 50% shares in itssubsidiary.

o Purchase/Full method has to be followed for consolidation ofsubsidiaries assets if the Holding Company is having more than50% shares but less than or equal to 100% shares in itssubsidiary.

All the subsidiaries/entities have intercompany transactions (amongthemselves) i.e. they conduct transactions among themselves whichneed to be eliminated when their assets are consolidated with theHolding Company.

The company prepares consolidated cash flow statement based onprevious two months finance data.


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The company carries forward every months net income from P& Lstatement to the next months opening balance in balance sheet.

The Holding Company does the consolidation of subsidiaries assetsbased on its groups 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 its 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.ssubsidiaries/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

system artefact

An environment logically groups and

organizes all the SAP BPC applicationcomponents such as model, dimensions,logic, etc.

2 Model : CONSOLIDATION Model is a SAP BPC systemartefact. Model can be classifiedas a main model and supportingmodel.

A model is an SAP HANA optimized real-time info, and it holds the financial datafor consolidation.

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

4 Model : OWNERSHIP A model is an SAP HANA optimized real-time info, and it holds the Ownership datato be used for consolidation.

5 Model : RATES A model is an SAP HANA optimized real-time info, and it holds the exchange ratesdata.

6 Dimensions : ACCOUNT, AUDITTRAIL,CATEGORY, ENTITY, FLOW, INTERCO,RPTCURRENCY, SCOPE, TIME,IC_AUDITTRAIL, O_ACCOUNT,INPUTCURRENCY, R_ACCOUNT, R_ENTITY

Dimension is a SAP BPC systemartefact. Dimension can be of anytype - . A,D,C,R,E,G,I,S,T& U.

A dimension is an SAP HANA optimizedreal-time info, and it holds master datasuch as ACCOUNT, AUDITTRAIL, etc....

7 Data Manager Packages, Scripts, Process

Chains, Logic Scripts, Input Forms, Reports &Journal Templates

These are SAP BPC artefacts

and used to automate running oftasks, apart from accepting theinputs from users and displayingthe data to the users.

These are used to accept parameters

from the users and then run logicscripts/BADIs using these parameters.


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8 Consolidation Monitor Consolidation Monitor is an SAPBPC artefact and a new featureof SAP BPC 10.

Consolidation is used execute closingactivities and monitor its status. It is alsoused to perform currency conversion andto set the work status for data segments.

9 Controls Monitor Controls Monitor is an SAP BPCartefact and a new feature ofSAP BPC 10.

Controls Monitor is used to run validationson data i.e. to validate the GL data.

10 Ownership Manager Ownership Manager is an SAPBPC artefact and a new featureof SAP BPC 10.

Ownership Manager is used to createownership structure and to acceptownership data from users. Also, itgenerates system proposals using theownership data.

11 Business Rules Methods The Methods business rules areis a SAP BPC applicationartefact. Consolidation Methodsdefinitions are stored in the BRtable and are defined at theenvironment level.

Used to perform consolidation.(see below for more functional details)

12 Business Rules Methods Based Multipliers Methods Based Multipliers are aBR table and is an SAP BPCartefact. Methods based formulaeare stored in this table at theenvironment level.

13 Business Rules Eliminations andAdjustments

Elimination and Adjustmentsrules are defined at the modellevel and stored in this table.

14 Business Rules Carry Forward Carry Forward rules are definedat the model level and stored inthis table.

15 Business Rules Account Based Calculations Account Based Calculations rulesare defined at the model leveland stored in this table.

16 Business Rules Intercompany Bookings Intercompany Bookings rules aredefined at the model level andstored in this table.

17 Business Rules US Eliminations US Eliminations rules are definedat the model level and stored inthis table.

18 Business Rules Equity Pickup Equity Pickup rules are defined at

the model level and stored in thistable.

19 Business Rules Currency Translation Currency Translation rules aredefined at the model level andstored in this table.

Used to perform currency translation


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Assumptions (Out of Scope):

Since the scope of the article is specific to Business Rulesalone, we will be

focussing only on business rules and the necessary components to implement

the business rules.

In this article, we wont be able to explain the following key functions of

SAP BPC NW 10.0 as its 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 its 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 anyimplementation 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 ofthe 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

1 MethodsTo define differentconsolidation methodsbased on the ownershipcontrol percentage

Business Scenario- 1: Equity, Proportionate &Purchase Methods

If the parent company has less than 25% control/stakeover the child/subsidiary, Equity method has to beused when consolidating financial assets of the parent

and child.

If the parent company has less than 50% control/stakeover the child/subsidiary, Proportionate method has tobe used when consolidating financial assets of theparent and child.

If the parent company has more than 50%control/stake over the child/subsidiary, Purchase/Fullmethod has to be used when consolidating financialassets of the parent and child.

2 Methods BasedMultipliers

When consolidatingfinancial assets usingPurchase method, parentcompanys investment inthe subsidiary needs to beeliminated(i.e. zeroed).

Formula defined under theMethods Based Multiplierssection will be used to off-set the parentsinvestment amount in thesubsidiary.

Off-setting of investmentsis done through formuladefined under MethodsBased Multipliers.

Business Scenario- 2 :Purchase Method

Parent Company Holding company, has invested $1,40,000 in its subsidiary US.

Parent Company Holding company, has invested $1,30,000 in its subsidiary SG.

Parent Company Holding company, has invested $1,30,000 in its subsidiary DE(Germany).

Parent Company SG, has invested $ 1,20,000 in itssubsidiary IN(India).

Since Holding Company has more than 50%stake/ownership in its subsidiaries US, SG, DE andIN, Purchase method will be used to consolidatefinancial assets.

Since purchase method is used for consolidation,parent companys investment in thesubsidiaries($5,20,000) will be off-set using formuladefined under the Methods Based Multipliers section.

3 Elimination andAdjustmentsTo define the businessrules to performeliminations, adjustments,reclassifications andminority interestcalculations.

Business Scenario- 3 :Purchase Method.

Parent Company Holding company, has invested $1,40,000 in its subsidiary US.

Parent Company Holding company, has invested $1,30,000 in its subsidiary SG.


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When consolidatingfinancial assets usingPurchase method, parentcompanys investment inthe subsidiary needs to beeliminated(i.e. zeroed).

Elimination of investmentsis done through businessrules defined under theEliminations andAdjustments section.

Parent Company Holding company, has invested $1,30,000 in its subsidiary DE(Germany).

Parent Company SG, has invested $ 1,20,000 in itssubsidiary IN(India).

Since Holding Company has more than 50%stake/ownership in its subsidiaries US, SG, DE andIN, Purchase method will be used to consolidatefinancial assets.

Since purchase method is used for consolidation,parent companys investment in thesubsidiaries($5,20,000) will be eliminated usingbusiness rules defined under the Eliminations andAdjustments section.

4 Carry Forward To define business rulesto perform carry forwardprocess to carry forwardthe closing balances forcertain accounts for thecurrent financial period tothe next financial period.

Business Scenario- 4 :Closing Balances Carry

Forward

Closing balance for the Cash account for the period Dec, 2011, is $10,000.00

Closing balance for the Machinery & Equipmentaccount for the period Dec, 2011, is $20,000.00

Closing balance for the Trade Receivables account forthe 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 Forwardsection will be used to carry forward the above closingbalances for the period Dec, 2011, to the openingbalances for the next financial period Jan, 2012.

5 Account BasedCalculations

To define rules to performaccount reclassifications,in particular whengenerating cash flowstatements.

To reclassify :

ANI Transferaccount as NetIncome account

Depreciation-Machinery as AddBack Depreciationaccount

Account basedcalculations rules will be

used.

Business Scenario- 5 : Account Reclassification

When generating cash flow statement, the company wantsto reclassify the following accounts:

ANI Transfer account as Net Income account Depreciation-Machinery as Add Back Depreciation

account

Business Rules defined under the Carry Forward section,will be used to carry forward the above closing balances tothe opening balances for the next financial period Jan,2012..

6 IntercompanyBookings

To define rules to bookdifferences that arises

Business Scenario- 6 : IC Matching/Booking


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among intercompanytransactions.

The entities Holding Company, US, SG and IN, have thefollowing intercompany transactions happened amongthem:

Holding Company has IC Receivables transactionswith US entity.

US entity has IC Payables transact ions with theHolding Company.

SG entity has IC Receivables transactions with Indiaentity.

India entity has IC Payables transactions with SGentity.

Holding Company has IC Sales transactions with USentity.

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 CurrencyTranslation

To define rules to performcurrency translation fromone currency to anothercurrency.

Some entities/companiesmay have their financialdata in their localcurrency. But, they may

have a requirement to seethe data/report using theirgroup/regional currency.

Currency Translation rulesperform this function.

Business Scenario- 9 :Currency Conversion from SGDto USD

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 localcurrency to US Dollar:

Accounts Receivable Cash

Intercompany Receivables

Third Party Sales Intercompany Sales Material CostBusiness Rules will be used to perform currency conversionfrom Singapore Dollar to US Dollar.

8 US Eliminations To define rules to performUS eliminations formanagerial accounting.US elimination rules canbe run only thru the scriptand NOT throughConsolidation Monitor.

In a managerial accounting scenario, Group generates revenue by exchanging goods and

services among the subsidiaries/entities. Group want to eliminate the revenue generated among

the subsidiaries. US elimination BRs will be used to eliminate the

revenue generated among the subsidiaries.

9 Equity Pickup A method of re-evaluatingthe investments owned bya holding company,

The Equity Pickup adjustment offsets the historical cost inlocal currency, showing the actual value of the equityowned.


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allowing the parent torealize changes in equity.This results in the holdingcompanys balance sheetshowing the current valueof the corresponding sharein the equity of thesubsidiary.


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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 identifierarbitrarily defined between the value 1and 98. The value 99 is asystem reserved value representing allmethod code values. Method codes are

referenced in the OwnershipManager as the Consolidation Methodsassigned to specific Entities within aGroup hierarchy.

20 50 100 101

2 DescriptionDescription for the method code. Thiscan be any text.

20 - Equity 50 - Proportionate 100 - Full 101 - Holding

3 Method TypeMethod Type assigns the appropriateconsolidation logic to the method codewith the followinglist of values:

D (disposed at lastyear-end)E (Equity)G (Global)H (Holding)L (Leaving during theyear)N (New)P (Proportionate)

4 Share Range Share Range represents the sharerange for a given method. Theconsolidation method can beautomatically derived by ownershipcalculations based on share range rules.

0.00


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11.2 Business Rules Table: Methods Based Multipliers

Method Based Multipliers control how the amounts or the destination accountsshould be calculated during the consolidation process. Method-basedMultipliers are defined by a name (ID), a description, and a type (the typerelates to the consolidation method(s) using the method-based multiplier).

The calculation of consolidated data is controlled by which multiplier beingused, the consolidation method assigned to the current entity, and itsIntercompany 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 TableColumn

Column Objective Sample Values

1 ID To uniquely identify the BR tables column entry P2_RULE010

2 Description Description can be any text. P2_RULE010 multiplier for themethods Equity, Proportionate &Full.

3 Entity Method Entity Method column is used to specify a filterrestriction. This Method-based Multiplier is onlyapplied to data records where the Entity dimensionmember is assigned to Proportional (50), Full(100) and Holding (101) Method Codes.

100 for Full method 20 for Equity method 50 for Proportionate method 101 for Holding

4 IINTCO Method INTCO Method column is also used to specify afilter restriction. This Method-based Multiplier isonly applied to data records where the INTCOdimension member is assigned to Proportional(50), Full (100) and Holding (101) MethodCodes.

99 Intercompany memberswith any method

20,100 Intercompanymembers with 20 & 100 methodcodes

5 ALL Formula ALL Formula column has a corresponding andmatching column in the Business Rulesconfiguration for Eliminations and Adjustments.In the Eliminations and AdjustmentsBusiness Rules configuration, the ALL Formulacolumn contains one or many Account dimension

members.The formula in the Method-based Multiplier isapplied to the amounts stored on these AccountdimensionMembers.

1 : Extract the singed data valueas is(100%)

POWN : Extract POWN% ofsigned data

1 POWN : Extract (1 POWN%) value of the signed

data.


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6 Group Formula Group Formula column has a corresponding andmatching column in the Business Rulesconfiguration for Eliminations and Adjustments.In the Eliminations and Adjustments BusinessRules configuration. the Group Formula columncontains one or many Account dimensionmembers. The formula in the Method-basedMultiplier is applied to the amounts stored on theseAccount dimension members. For consolidation ofinvestments, the group column is used for groupshare interests calculation and postings to equity.For intercompany eliminations, this field is used forthe offsetting clearing account. As a result, thisformula is exactly the same as the ALL Formulacolumn.

1 : Extract the singed data valueas is(100%)


1 POWN : Extract (1 POWN%) value of the signeddata.

7 Minority

Minority column has a corresponding andmatching column in the Business RulesConfiguration for Eliminations and Adjustments.In the Eliminations and Adjustments BusinessRules configuration. The Minority columncontains one or many Account dimensionmembers. The formula in the Method-basedMultiplier is applied to the amounts stored on theseAccount dimension members.

1: Extract the singed data valueas is (100%)


1 POWN: Extract (1 POWN%) value of the signed data.

8 Remark To capture the remarks or documentation or Userinstructions Method code 100


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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 parents 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 entitys accounting policy, parents 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 signeddata has been identified and recorded for subsequent processing.

2For 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 datasource. 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 hasinvested in the subsidiary. During consolidation, this amount will be adjusted depending onthe control the parent exercises over the subsidiary.

5Now, 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.


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7 And, then the system looks for the common parent for both entities Holding Companyand 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 asHolding Companyon the right hand side.

9 For the entity Holding Company, current consolidation (101 - Holding) method hasbeen identified and recorded.

9.1 System goes through the BR table for Elimination and Adjustments rules, and looks forrecord/rule with AST005 as Sourceaccount.

9.2 For the Sourceaccount AST005, Destinationaccount (AST005) is noted. This is theaccount to which, the final adjusted amount will be posted.

9.3 Multiplier IDhas been identified and recorded (P2_RULE060). Formulain this rule will beapplied to the amount read from the data source and the final amount will be posted underthe Destinationaccount.

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 entitymethod 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(DestinationAll Account) i.e. All Formulacolumn.

12 For the entity method 101, and Formula (1) under the All Formulais now identified andrecorded for subsequent processing.

13 Signed data noted in Step 4($140000) is multiplied by the formula (1) and posted to theDestinationaccount has been identified and recorded in Step 9.2(AST005).

Steps 1 through 13 are applied to other records with AST005as the accounts in the CSVfile and amount is posted. And the final posted/offset amount is: $520,000.


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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


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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


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values, from Eliminations and Adjustments BR table(General Section):

BR # BR TableColumn

Column Objective Sample Values

1 IDLogical ID used to identify the rule in the Elimination andAdjustments BR table.

P2_ELCOI1 P2_ELCOI2 P2_ELCOI3

2 DescriptionDescription of the logical ID, which is used to identify therule in the Elimination and Adjustments BR table.

P2_ELCOI1 P2_ELCOI2 P2_ELCOI3

3 SourceAudit

Used to filter the data source records. If specified, BR willbe applied to those records with that particular data source.If left blank, all the records will be processed and BRs willbe applied accordingly.

Journal INPUT_DATA

4 DestinationAudit

Destination data source member.

If specified, final amount to be adjusted/offset will be writtenunder this data source.If not specified, final amount to be adjusted/offset will

written under the Source data source.

AJ_COI1 AJ_COI2 AJ_COI3

6 Group TypeFilter

The CONSO_TYPE property value from the Groups(Currency) dimension. If, for example, you have theGROUP GROUP1with conso_type = A, all the AutomaticEliminations with Blank are available for all groups. TheAutomatic Eliminations with Group_filter member = A areavailable for GROUP1 and all groups with Group filtermember = A.

A - A

7 EntityProperty

Filter

This field is only used for intercompany eliminations. If thisfield contains a value, the system looks for the existence ofa corresponding PROPERTY in the ENTITY dimension, andonly performs the elimination if the ENTITY. The INTCOpartner has the same value in this property.

OWNER INTCO HIR CALC CURRENCY

CONTROL_LEVEL

8 AdjustmentType

Used to specify the adjustment type. This type can beEquity, Proportionate, New Company or Leaving method.Else, if adjustment type has to be other than these four,

E (Equity) P

(Proportionate)


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leave this field as blank. N (NewCompany)

L (LeavingCompany)

9 AdjustmentLevel

This field must contain an integer value ranging from 0 to 99and can be used to order the sequence of execution of thevarious ELIM rules, if desired.

0 1 2 3

10 OtherDimensions

Filter

This field can be used to define a filter controlling the regionwhere the elimination can be applied. It can contain thefollowing values:

Blank (No Filter) An expression defining one or more filters. These

can be applied to any combination of thefollowing information:

o The SIGNEDDATA amount (example:SIGNEDDATA> 10)

o Any ACCOUNT of the OWNERSHIPcube (example: METHOD = 85)

o Any ACCOUNT of the OWNERSHIPcube as defined in Prior period(example: PPOWN 0, wherePPOWN is Prior periods POWNaccount)

o Any ACCOUNT of the OWNERSHIPcube 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 valuesin any desired way can be used. In this case the syntaxmust strictly comply with SQL requirements, for examplesingle quotes around the members IDs.

Blank(No Filter) SINGEDDATA > 10 METHOD = 101 PPOWN 0 I_POWN < POWN

11 ForceDestinationMembers

This field can be used to enforce the destination member ofany dimension existing in the MAIN cube.

This field may contain thefollowing values:

Blank (NoChange)

An expressionenforcing thevalue for one ormore dimensions


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of the MAIN cube.Each dimensionmust be separatedby a comma(example:CATEGORY=BUDGET, ENTITY=NewYorkBranch)

12 OwnershipFilter

Filters the ownership value For example, to apply a ruleto only those entities whoseownership percentage in agroup or scope is larger than70%, 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


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11.3.1 Business Rules Table Columns: Eliminations and

Adjustments


values, from Eliminations and Adjustments BR table (Details Section):


1 IDLogical ID to identify the eliminationsand adjustments rule

ELIM_RULE1

2 DescriptionDescription of the eliminations andadjustments rule

Rule to offset theinvestment made by theparent in the subsidiary.

3 Source AccountSelect accounts to include. Use a baseor parent member, or a TYPEELIM orDIMLIST property value

AST001 AST002 AST003 AST004 AST005

4 Source FlowSelect flow members to include. Use abase or parent member, or a TYPEELIMor DIMLIST property value

Balance Increase Opening Decrease Blank(al l records will

be processed)

5 Reverse SignReverse the sign of the data based onaccount type

Checked or notchecked box

6 Destination All AccountTarget account for the All Formulapercentage in the Method - BasedMultiplier table. Use a base or parentmember, or a TYPEELIM orDIMLIST property value


7 Destination GroupAccount

Target account for the Group Formulapercentage in the Method - BasedMultiplier table. A base or parentAccount, a TYPEELIM or DIMLIST

AST001 AST002 AST003 AST004


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property value in the account dimension AST005

8 Destination MinorityTarget account for Minority Formulapercentage in the Method - BasedMultiplier table. A base or parentAccount, a TYPEELIM or DIMLISTproperty value in the account dimension


9 Destination EquityAccount

Target account for the All Formulapercentage in the Method - BasedMultiplier table for the EquityMethod.A base or parent Account, a TYPEELIMor DIMLIST property value in theaccount dimension


10Destination Flow

Target base level flow member Balance Increase Opening Decrease Blank(al l records will

be processed)

11 MultiplierThe Rule ID from the Method - BasedMultiplier table

P2_RULE010 P2_RULE020

12 Force ClosingIf Y it generates an extra record on theclosing flow, otherwise leave blank

Checked Unchecked

13 Swap Entity INTCO If Y, it will swap the member of the Entitydimension with the intercompanymember

Checked Unchecked

14 Force INTCO MemberTo hard code the target intercompanymember instead of using the source

Checked Unchecked

15 Periodic CALCCan be used in a YTD Model (or anapplication) when the ownershippercentage should be applied on theperiodic values

Checked Unchecked

16 RemarkRemark text about the rule. Eliminations and

adjustments rules.


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11.4 Business Rules Table: Carry Forward

The following picture shows the BR table meant for Carry Forward:

Figure 15: Carry forward business rule


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11.4.1 Business Rules Table Columns: Carry Forward


values, from Carry Forward BR table:


1 Source AccountTo identify the base/parent levelaccounts to which the BRs are to beapplied. This can also be DIMLIST

property of accounts. DIMLIST allowsaccounts to be grouped and selected forBRs to be applied.

BS111 BS121 BS122

BS231

2 Source FlowTo identify the base/parent level Flowmembers for which, BRs are to beapplied. This can also be DIMLISTproperty which allows Flow members tobe grouped and selected for BRs to beapplied.

Balance Opening Increase Decrease

3 Source AuditTo identify the base/parent level datasource members for which, BRs are tobe applied. This can also be DIMLISTproperty which allows data sourcemembers to be grouped and selected forBRs to be applied.

INPUT_DATA

4 Destination AccountThe destination account - base level orparent. If blank, inheritfrom source.

BS111 BS121 BS122 BS231

5 Destination FlowThe destination flow - base level orparent. If blank, inherit fromsource.

Balance Opening Increase Decrease

6 Destination AuditThe destination data source - base levelor parent. If blank, inherit

from source.

INPUT_DATA ADJ_BCF

7 Reverse SignReverse the sign of the source valuebased on an account type

Checked Unchecked


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8 Audit TypeSelect data source type to include: A -All, I - Input, M - Manual

A (All) I (Input) M (Manual

Journal)

9 Same PeriodIf selected, the source time period is thesame as the destination.Otherwise, the source data is the lastperiod of the prior year

Checked (sourcetime period is sameas destination timeperiod)

Unchecked(sourcedata is the last dataof the prior year)

10 Apply To YTDIn a periodic model, select to calculatethe YTD value to copy

Checked (tocalculate YTD valueto copy)

Unchecked

11 RemarkRemark text about the carry forwardrule.

Remark text


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The following picture shows the BR table meant for Account Based

Calculations:

Figure 16: Account Based Calculations Business Rules


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11.5.1 Business Rules Table Columns: Account Based

Calculations


values, from Account Based Calculations BR table:


1 ID

Logical ID used to identify the rule in

the Account Based Calculations BRtable.

CF

2 DescriptionDescription of the logical ID, which isused to identify the rule in the AccountBased Calculations BR table.

Cash Flow Calculations

3 Source AccountThe source account base level, parent,or dim list property value

PL700 AST002 LEQ002

4 CategoryThe source category - base level,parent, or DIMLIST property value

Actual Plan

5 Source Flow

The source flow base level, parent, or

dim list property value

Balance

Opening

6 Source AuditThe source data source base level,parent, or dim list propertyvalue

TOTAL_ADJ AJ_COI1 AJ_COI2 AJ_COI3

7Destination Account

The destination account base level orparent. If blank, inheritfrom source.

CF101 CF102 CF103 CF104

8 Destination CategoryThe destination category - base level,parent, or property value

Actual Plan

9 Destination FlowThe destination flow - base level orparent. If blank, inherit from source.

Balance Opening

The destination data source - base TOTAL_ADJ


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10 Destination Audit level or parent. If blank, inherit fromsource.

AJ_COI1 AJ_COI2 AJ_COI3

11 Reverse SignReverse the sign of the source valuebased on account type (ex: INC , EXP,AST, etc)

Checked Unchecked

12 Source PeriodIf not specified, the source time periodis the same as the destination. Thiscould also be used in planningscenarios.

-1

13 Source Year

If not specified, the source year is the

same as the destination. This couldalso be used in planning scenarios.

2011

2012

14 Force INTCO MemberTo hard code the target intercompanymember instead of using the source

Checked orUnchecked

15 Apply To YTDIn a periodic model, select to calculatethe YTD value to copy. This could alsobe used in planning scenarios.

Checked orUnchecked

16 LevelThis controls the sequence of executionfor each row/rule.

0 1 2

17 Remark Remark text Remark text


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11.6 Business Rules Table: Intercompany Bookings

The following picture shows the BR table meant for Intercompany Bookings:

Figure 17: IC Bookings Business Rule


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11.6.1 Business Rules Table Columns: Intercompany

Booking


values, from Intercompany Bookings BR table:


1 ID

Logical ID used to identify the rule in the

Intercompany Bookings BR table.

BS_ACCT

2 DescriptionDescription of the logical ID, which is used toidentify the rule in the Intercompany Bookings BRtable.

Parent Matching

3 TypeDetermines whether the buyer or seller receivesthedifference. S - Seller: Buyer receives the difference B - Buyer: Seller receives the difference G - Greatest: Entity with the greatest amountreceives the difference

SBG

4 Other DestinationDimension

Target dimension member other than account,flow, and intercompany.

Blank

5 BookingDestination

Target data source to which, the difference is to beposted.

ICDIFF

6 Max. BookingAmount

The limit of the balancing entry. Differences abovethis amount will not be posted.

100000

7Debit Account Debit account for the difference ICDIFFERENCE

8Debit INTCO

Debit intercompany for the difference I_US

Credit Account Credit account for the difference LEQ008


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9

10 Credit FlowDebit flow for the difference

Balance

11 Credit INTCO Credit intercompany for the difference I_US

12 Remark Remark text about the IC booking rule. Remark text


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11.7 Business Rules Table: US Eliminations

The following picture shows the BR table meant for US Eliminations:

Figure 18:US Eliminations Business Rule


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11.7.1 Business Rules Table Columns: US Eliminations


values, from US Eliminations BR table:


1 Elimination IDID used to identify the elimination rule. ICELIM

2 Source AuditThis can be a base level or parent datasource member. Dim list property canalso be used to filter members.

INPUT_DATA

3 Destination AuditThe destination data source base levelor parent. If blank, inheritfrom source.

US_ELIM

4 RemarkRemark text US elimination


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11.8 Business Rules Table: Currency Translation

The following picture shows the BR table meant for Currency Translation:

Figure 19: Currency Translation Business Rule


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11.8.1 Business Rules Table Columns: Currency

Translation


values, from Currency Translation BR table:


1 IDRule ID AVG

2 DescriptionDescription of the rule. Average Rate

3 Source FlowThe Source Flow column is used torestrict the currency translation ofaverage rate to one or many Flowdimension members. In this exercise,the currency translation for AVG ratetypes is restricted to closingbalance (Balance source flow) records

BalanceOpeningIncreaseOther

4 Destination AccountThe Destination Account column is usedto specify which account to post thecurrency translation results to.When left blank the destination account

is the same as the source account.

AST001AST002AST003LEQ001

LEQ002LEQ003

5 Destination FlowThe Destination Flow column is used tospecify which flow to post the currencytranslation results. When leftblank the destination flow is the same asthe source flow.

BalanceOpeningIncreaseOther

6 FormulaFormula. Formula syntax exists toperform mathematical operations. In thiscase, the first formula is simply tofind the AVG rate type in the Rate Modeland use it in the currency translationcalculation to translate localcurrency records (reporting currency

LC) into group and reporting currencyrecords. The second formula,[COPYLC], copies the current recordsLC values for any Entity defined with aFX_TYPE property value ofUS.

[AVG][COPYLC]


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7 Force ClosingThe Force closing column willautomatically carry forward thecalculation into the closing flow. Sincethis rule only applies to the closing flow(i.e. Source Flow = Balance), this flag isleft blank. Otherwise, records woulddouble up.

CheckedUnchecked

8 Periodic CalcThe Periodic Calc column is used torestrict the currency translation to aperiod movements instead of a year-to-date accumulated amounts within aReporting Model that is defined with aData Entry Mode as YTD.

CheckedUnchecked

9 Entity FX TypeThe Entity Fx Type column is used torestrict currency translation to a specificEntity based on the propertyFX_TYPE in the Entity dimension.

US

10 RemarkRemark text Remark text


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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.


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


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[B]. Go to Rules section.


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[C]. Select Business Rules link.


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[D]. Click Methods link.


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


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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 companys

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.


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[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 Homeworkspace.


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


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


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[E]. Launch web admin interface.


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[F]. Go to Business Rules Methodssection as shown below:


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[G]. Create Methodsdata as shown below:


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[H]. Go to Methods Based Multiplierssection.


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[I]. Create a rule under Methods Based Multiplierssection as shown below:


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[J]. Go to Eliminations and Adjustmentssection.


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[K]. Create a rule under Eliminations and Adjustmentsas shown below:


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[L]. Go to Homeworkspace.


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[M]. Click Consolidation Monitor.


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


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


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


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[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 REDcolour).


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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.


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[A]. Launch SAP BPCweb admin. interface.


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


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


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

.


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


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[F]. Enable the Carry-Forwardrule as shown below:


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[G]. Go to BRsection and click on the Carry- Forwardlink for the BCF_DEMO

model.


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[H]. Create business rules for Carry-Forwardas shown below.


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[I]. Go to the Logic Scriptssection now.


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


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[K]. Create a logic script(if it does not exist) to call Carry-ForwardBADI as

shown below.


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[M]. In the Connection Managerwindow, choose the connection to

BCF_DEMO model and click OK button.


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[N]. Click on Data Managermenu.


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[O]. Click on Organize Package List.


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[P]. Create a DM package script which calls the Carry-Forwardlogic

script(COPY_OPENING_LGF).


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[Q].Click on EPMmenu now.


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[R]. Create an input form to accept closing balances for the accounts BS122,

BS121, BS111, BS231 & BS232- .


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


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


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[V]. Carry-ForwardBADI is run and balances are carried forward now.

Refresh the following INPUT form/report to see the carried-forward balances.


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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.


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


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


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


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[D]. Go to BRsection and click on the Account Based Calculationslink for the

RECLASSIFY_DEMOmodel.


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[E]. Create BRsfor Account Based Calculationsas shown below.


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[F]. Go to Logic Scriptssection and click on RECLASSIFY_DEMOlink.


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

BADI(CALCACCOUNT.LGF).


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


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[I]. In theConnectionManagerwindow, choose the connection to

RECLASSIFY_DEMOmodel.


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[J]. Click Data Managermenu and then click Organize Package Listsub-

menu.


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[K]. Create a DMpackage script which calls the Account Based Calculations

logic script.


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[L]. Create an input form to accept data for the accounts 30527140,

39000000, CF901 & CF902.


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


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[N]. Now, run the DMpackage with the following inputs.


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[O]. Refresh the input form to see the Account Based Calculationsresults.


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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 t

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