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Copyright 2007, Hyperion. All rights reserved.3 0000 | Title of Presentation
BearingPoint Synopsis
BearingPoint, Inc. (NYSE: BE - News) is one of the world's largest providers ofmanagement and technology consulting services to Global 2000 companies andgovernment organizations in 60 countries worldwide.
Based in McLean, Va., the firm has over 17,000 employees and major practice areasfocusing on the Public Services, Financial Services and Commercial Services markets.
For nearly 100 years, BearingPoint professionals have built a reputation for knowing what ittakes to help clients achieve their goals, and working closely with them to get the job done.
For more information, visit the Company's website at http://www.BearingPoint.com.
BearingPoint means helping ourclients set direction to achieveend results
Serve more than 2,100clients, including more than 700Global 2000 companies, medium-
sized businesses, governmentagencies and other organizations
15,000+ professionals
$3.1 billion in revenues
NYSE: BE
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BearingPointGeo Presence
~ 16,000 employees in 39countries around the world
Over 600 World Class Financepractitioners with 190 focusedon BPM Solutions
Successfully implementedglobal development model forHyperion implementations
To date 12 projects have utilizedoffshore practice capabilities
GDC India Hyperion Application
Development
GDC China
Stress and Volume Test(SVT) using Mercury Loadrunner
ETL/Data warehousedevelopment
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BearingPointWorld Class Finance PracticeWe are global, we serve more than 2,100 companies and we are proud to list 704of the Global 2000 as our clients.
World-Class Finance Solution Services
Finance Strategy &Transformation
Enterprise RiskManagement
Enterprise PerformanceManagement
Strategic Role of Finance
Finance OperationsOptimization
Shared Services/Business Process
Outsourcing Advisory
Risk Assessment &Strategy Development
Risk ManagementImplementation
Compliance Solutions
PerformanceManagement Strategy
PerformanceManagementImplementation
Business Intelligence &Data Warehousing
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BearingPoint Has Extensive BPM Experiencewith Many Leading Companies
Solutions
Clients
Sample Clients
Alcoa
Carlson Companies
Carnegie Mellon
CoBank
District of Columbia
Follett Corporation
General Motors
George Washington University
Harris Bank
ING Direct
J&J
KBR
MetLife
Microsoft
Moodys
Motorola
Pfizer
Reuters
Symbol Techologies
Temple U Health System
United Technologies
Verisign
West Pharmaceuticals
Wolters Kluwer
XM Satelli te RadioLennox
Planning and
Budgeting
BI,
Dashboards,
Scorecarding
Business Performance Management
Financial
Consolidation and
Reporting
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Presentation
Background
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Abstract
For a number of years Hyperion solutions have beenimplemented at clients using SAP as their ERP solution. In thispresentation the presenters address dimensional modeling
aspects that are typical for SAP FICO clients. Using cost centerand profit center planning as an example, learn about a designsolution to integrate FICO output in Hyperion System 9 BI+cubes. The presentation also will include design considerations
and challenges relating to cube sizing and attribute data, andpresent design recommendations to tackle such challenges.
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Presentation Focus
Prepared from a perspective of Hyperion Planning System 9
FICO Foundational Concepts Modules Downward Flow Processes
FI
Overview Key ElementsOrganizational Data, Master Data, Rules, Transactions
CO Overview
Key ElementsOrganizational Data, Master Data, Rules, Transactions Design Considerations
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SAP R/3 Platform
ERPCollections of logically related transactions within identifiable
business functions e.g.PP (Make)MM (Buy)SD (Sell)FI and CO (Track)
HR Document Concept
Each business transaction that writes data to the database creates auniquely numbered electronic document
Each document contains information such asResponsible personDate and time of the transactionCommercial contentOnce created, a document can not be deleted from the database
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Downward Flow Concept
Sales Order to Procure to Receive Sales Order to Produce to Deliver
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Process Concept
Downward flow is key to the process concept
Not all processes create a posting to FI
All steps create a document
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Reporting ScopeFI and CO
Financial Accounting (FI)
External Reporting Retained
Earnings
Report
Liquidity
Calculation
Income
Statement
Balance
Sheet
Cost
Center
Reports
Profit
Center
Reports
Profit
Margin
Managerial Accounting (CO)
ProductCosts
Reports
Internal Reporting
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FI Module
The Financial Accounting (FI) module is designed to collect datanecessary for the preparation of Financial Statements for external
users SAP R/3 FI Audience
External & Internal
Preparation and presentation of external reporting:Balance Sheet
Income Statement
Statement of Cash
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Copyright 2007, Hyperion. All rights reserved.15 0000 | Title of Presentation
Basic Foundations of BusinessProcess Integration
For SAP ModulesConfigurationsOrganizational Data
A hierarchy in which the organizational units in an enterprise are arranged
according to tasks and functions.The definition of organization units is a fundamental step, it is a critical factor in
how the company will be structured
Master DataMaster data is relatively fixed E.G. Material master, Vendor master, Customer
Master, Supplier Master, General Ledger master dataProceeds setting up organizational structures
RulesDefines the parameters and functionality for Master Data and Transactions
Relatively fixedChanges as policy changes
TransactionsIncludes transactions that describe business activitiesTransactional data is dynamic - it constantly changes, many times per day
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FI Organizational Data
Consolidated financial statements arecreated at the company level
A company can include one or morecompany codes
All company codes must use the same
chart of accounts and fiscal year A chart of accounts must be assigned to
every company code
Several company codes can use thesame chart of accounts
A legally independent entity
The smallest organizational unit forwhich accounting can be carried out
Business transactions are processed atthis level
Accounts are managed at this level
Legal financial statements, such as thebalance sheet and the incomestatement, are generated at this level
Consideration:- What detail to bring in actuals?-What detail to plan by scenario?- Naming Conventions- Grouping
-Accounts-Company Codes
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FIMaster Data
Local currency
Foreign currency
Tax category
Open item management
Line item display Sort key
Reconciliation accounts
Sold-to party.
Ship-to party.
Bill-to party.
Payer.
Movable assets
Operating facilities
Land and buildings
Assets under
construction Low-value assets
Intangible Assets
Address
Control
Payment Transactions
Accounting Information
Correspondence
Purchasing Data
Partner Functions.
Material Type
Industry Sector
Maintenance Features
Organizational Levels
MRP 1, 2, 3, 4
Work scheduling
Storage
Warehouse management
Quality management
Accounting 1, 2 Costing 1, 2
FICustomer MasterFIGL
FIMM (Material)
FIFixed Assets
FIMM (Vendor)
Sales org
General
Plant
Foreign tradeexport
Text
Purchasing
Accounting 1
FISD
German/
English
D DebitorsCustomers
K Kreditors/
VendorsS Sachkonto/
GeneralLedger
A Anlagen/Assets
M Materiel/Material
This is just a snap shot of master data information
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FIRules and Transactions
Posting Periods Fiscal years are divided into one or more posting
periods 12 months and 4 quarter ending postingperiods
Each posting period is delimited by both a startand finish date
Tolerance Groups Internal control -- amount limits that serve to
define the maximum authorization levels for youremployees
Payment Program Select payment method and bank
Cash discount periods
Payment document
Payment medium
Document Number & Types Number Ranges
Document Principles Each completed accounting transaction writes data
to the database and creates a unique electronicdocument
Audit trails allow an accountant to begin with anaccount balance on a financial statement and tracethrough the accounting records to the transactions.
Each document contains information such as:Responsible person, Date and time of thetransaction, Commercial content, Company codes
Document Numbers Unique Codes
Document Types SA General ledger account documents DR Customer invoices DG Customer credit memos DZ Customer payments
KR Vendor invoices KG Vendor credit memos KZ Vendor payments KN Vendor net invoices and credit memos
Posting Keys Debit or a credit Type of account
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CO Module
The Managerial Accounting and Controlling (CO) module is designed to collect data for thepreparation and analysis of reports for use by internal users
Utilizes the SAP R/3 information system to help the organization hit its targets
Involves planning, monitoring, reporting, advising, and informing
Is not bound to the rules of GAAP
Cost and Revenue Element Accounting
Overhead Cost Controlling
Cost Center Accounting
Internal Orders
Activity-Based Costing
Product Cost Controlling:
Product Cost Planning
Cost Object Controlling Actual Costing/ Material Ledger
Profitability Management
Profitability Analysis
Profit Center Accounting
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COOrganizational Data
Controlling Area A self-contained, organizational element for which
the management of costs can be performed A controlling area may include one or more
company codes
Cost Centers Operates as a cost collector One or more value-added activities are performed
within each cost center Unit that is distinguished, for example, by area of
responsibility, location, or type of activity Copy center Security department Maintenance department
Internal Order Temporary cost object that is used to collect,
plan, and monitor costs of a distinct event,activity, or project e.g. Company picnic, Trade
show, recruiting campaign Profit Center
Organizational unit that is evaluated on profit orreturn on investment
Both revenues and costs are collected Organizations are commonly divided into profit
centers based on Region Function Product
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COMaster Data
FI CO Connection Cost Elements: Used to categorize costs Primary
Originate in the General Ledger within FI postings Automatically transferred to CO
Secondary Secondary cost elements are used exclusively in
Controlling (CO) for allocations and settlements to Between Controlling (CO) objects
Cost Element Groups Groupings of primary and secondary cost elements
Facilitates reporting, planning, and allocating costs Statistical Key Figures
To support internal cost allocations e.g. number ofemployees, square footage
Activity Types - Measurement of productiveoutput from a cost center Used to facilitate the internal cost allocation
process Labor hours
Number of copies Machine hours
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CORules and Transactions
Rules ExampleControlling Areas are assigned document number rangesThe number ranges determine the treatment of a transaction as it
relates to primary or a secondary cost element
Transactions ExamplesPeriodic Allocations
Sender (CC/CE), Receiver (CC/CE) Rules, Percentage/FixedDistributions
Allocate the primary costs of a cost centerOriginal cost element is retained
SettlementsSettlements for other cost centers or allocationsAssessmentsRe-postings or transfers
Periodic re-postings for correcting cost center allocations
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Typical Design
Challenges and
Considerations
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PretextDisclaimer
Suggestions identified are meant to be just that
Depending upon the client, business, budget challenges theanswers to the design considerations may vary
The following discussion packages experiences from a HyperionPlanning integration standpoint
Design Consideration:
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Design Consideration:Account Dimension Accounts Dimension
Could have more than of 4000 accounts Different Level of Account Detail by Planning Scenarios
Suggestions: Summarize accounts by major account buckets
Treat Planning application as a planning application Consider Interactive Reporting or Web Analysis on SAP BW, SQL Database orASO/BSO for detail reporting
Try to achieve some level uniformity in the level of detail Utilize pre-population calculations of accounts as much as possible
Cost Centers/Cost Elements Cost Centers are not 1 to 1 to company codes Handling Cost Elements and Cost Centers Non SAP Cost Centers do not map to SAP cost centers
Suggestions: Isolate Cost Center Planning as a separate plan type or application Treat cost elements as part of the accounts dimension Associate currencies with cost centers rather than company codes Adding an attribute dimension called Cost Center Category may facilitate reporting and
analysis
Try to map Non SAP Cost Centers to SAP cost centers using a data process
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Design Considerations
Profit Center Planning within SAP is at a different level Profit Centers (at times synonymous with product) are in thousands e.g. 30,000 BOM Detail does not exist as opposed to FICO which is integrated with ERP Revenue Planning, Pricing data, Unit pricing, CVP Analysis detail from multiple SAP and Non-SAP sources
Suggestions: High number profit centers will result in high level of maintenance. Consider a separate revenue planning
plan type For a large number of profit Consider standard pricing and costing at a higher level of the profit center
hierarchy. Allow for planners to modify standard pricing/costing data. Try to finalize the pricing/costing prior to loading
to the planning application
Multiple Dimension Names/Aliases are common For example numeric codes will be same within FICO
Suggestions Utilize alphanumeric codes to create unique dimension names across databases
Transaction Level and Associate Detail is required Associated Master Data information is needed
Suggestions Consider Interactive Reporting or Web Analysis on SAP BW, SQL Database or ASO/BSO for detail reporting Consider AIS with Essbase
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Design Consideration
Data Reconciliations Cost Centers are not 1 to 1 to company codes Handling Cost Elements and Cost Centers
Suggestions: Isolate Cost Center Planning as a separate plan type or application
Treat cost elements as part of the accounts dimension Verify if currencies can be attributed with cost centers rather than company codes Adding an attribute dimension called Cost Center Category may facilitate reporting and
analysis
Hierarchy updates in Hyperion Planning If hierarchies are updated in Hyperion Planning, how will they be replicated in SAP?
Suggestions Multiple Options. Leverage MDM to institute a process especially when hierarchies are summarized A) Do not update Hyperion Planning. Maintain a regimen of importing hierarchies from SAP B) Replicate the IT process to update the SAP to update Hyperion Planning as well C) Isolated management
Design Consideration:
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Design Consideration:Data Synchronization and Reconciliations
Converting SAP Master Data and Integrating Special Purpose Ledgersin to hierarchies
Introducing dimensions such as business areas, management reporting areas
Suggestions Consider a reporting cube if the purpose of the added dimension is purely reporting Verify if the relationship between candidate master data element and another dimension is
one to many: Intermediate roll up Attribute Dimension
Checkered Planning Process Non SAP Cost Centers loading data to SAP using Excel and summarized data Planning steps such as allocations & assessments are executed at in excel (Non-
SAP) & CO (SAP) Suggestions Introduce a process. Try to convince Non SAP cost-centers to centralize planning
and then load the data back to SAP You have to ensure that the dimensionality captures the detail that is required to drive
allocations
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Design Consideration
Loading Data Back to SAPMaster Data SynchronizationData Synchronization
SuggestionsLeverage an intermediate repository or a process concept to re-process the
data to a loadable format to SAPIt will be challenging especially if summarized data export is loaded back. Data
may have to be forced to detail organizational elements for variance reporting
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No mirror ever became iron again;
No bread ever became wheat (again);No ripened grape ever became sour fruit (again).
Mature yourself and be secure from a change for theworse; Become the light.
Only from the heart Can you touch the sky
Jalal ad-Din Rumi quote
Famous Turkish Philosopher
1207-1273
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