blinovdaniil-sap-bpc-nw-10.0-knowledgebase-consolidation-on-investment-implementation-guide-eng.pdf

8/9/2019 BLINOVDANIIL-SAP-BPC-NW-10.0-Knowledgebase-Consolidation-on-Investment-Implementation-Guide-ENG.pdf

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Author: Chief Architect: Blinov Daniil

[email protected] 8 (915) 350 47 07

Blinovdaniil, Inc., http://www.bliovdaniil.com

SAP BPC NW 10.0 Knowledgebase

:- - - -


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process to take care of these ownership and to do minoritycalculations.

Overview:

This document illustrates every necessary step that is required to setup an Ownership and Consolidation on investment model in SAPBPC NW 10.0. A typical Ownership Manager process will have thefollowing functionalities.

Hierarchies are used to keep track of the parent-childrelationships.

The ownership model is used to store the ownership data. The method definitions are configured in the business tables. The method assignments are stored in the ownership model

In this guide, we will be looking at the following topics using thepurchase consolidation method.

1. Ownership Calculations2. Elimination of Investment3. Elimination of Equity4. Minority Interest Booking

SAP BPC Consolidation Solutions Overview:


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Implementation Steps:

Create and Populate Dimensions & Model:


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1. Log into Web Admin Client using Primary Admin account (orany account with necessary task profile access that cancreate Model/Dimension and other building blocks)

2. Click on Planning and Consolidation Administration optionat the lower right corner


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3. Create all the following dimensions for the Ownership Model.


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4. The account dimension members are as follows.

5. Create the following ownership model. There should not beany intercompany member and I_NONE is selected. Thevalues in the PARENT_GROUP property will be used toform the ownership hierarchy for the ownership manager.


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6. Create the following dimensions for Legal Consolidationmodel.


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Data preparation:

1. Go to EPM add-in excel and create the following input scheduleto enter data for the percent ownership and percent control.


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Business Rules for Ownership Calculations:

1. Go to Administration/Business Rules, click on Methods.


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2. Enter the following data for the method table. The share rangeand the percent consolidation are used in the system topropose the method of calculation.

Note: 0.75


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Business Rules for consolidation:

1. Now click on Method Based Multipliers and create the ruleRULE10 with the following values.

a. This rule will be used to select entities with method codeassignments of 86 and intercompany members with any(99) method code.

b. 100% (1) of the source value will be written to the ALL

account specified in the eliminations and adjustmentsbusiness rule.


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c. The POWN % of the source value will be written to theGroup account specified in the eliminations andadjustments business rule.

d. The 1-POWN % of the source value will be written to the

Minority account specified in the eliminations andadjustments business rule.

Note: The ALL formula will reverse the sign of the sourcevalues while the Group and Minority formulas will not.

2. Create the RULE60, method-based multiplier as follows.


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3. Choose Elimination and adjustments for the consolidationmodel as follows.

4. Create ELIMINVEST rule id and fill in the data for both General& details as follows.


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Choose RULE60 from Method-Based Multiplier. The source anddestination accounts are same.

5. Create ELIMEQTY rule id and fill in the data for both General &details as follows.


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Choose RULE10 from the multiplier and the source and destinationaccounts are added as given below.

6. Create ELIMMRTY rule id and fill in the data as given below forboth General and Detail tabs


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Choose RULE 10 for the multiplier and assign source account anddestination to minority as given below.


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Logic Scripts:

1. The following standard logic script is called from the DataManager package. This has both currency translation andconsolidation scripts.

// Currency Conversion*RUN_PROGRAM CURR_CONVERSIONCATEGORY = %O_CATEGORY_SET%GROUP=%SCOPE_SET%TID_RA = %TIME_SET%RATEENTITY = GLOBAL*ENDRUN_PROGRAM

// Consolidation*RUN_PROGRAM CONSOLIDATION

CATEGORY = %O_CATEGORY_SET%GROUP=%SCOPE_SET%TID_RA = %TIME_SET%

*ENDRUN_PROGRAM


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Data Input/ Reports:

1. The input form used for the investment elimination calculation isas follows.

Data Manager Packages:

The process chain used for legal consolidation is

/CPMB/LEGAL_CONSOLIDATION

Consolidation Building Blocks:

Consolidation Central


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This module enables to generate and manage consolidated data.This is an all-in-one web interface for accountants. This gives anaccurate view of the status of collected and consolidated data of anorganization and is also a unified environment to perform

consolidation tasks over the web. It is available under HOME tab hasthe following functions.

Consolidation Monitor

Its a workspace for monitoring the consolidation progress for aspecific consolidation scope for a given category, period, group orsubgroup.

The Consolidation Monitor displays the Group/Entity hierarchycreated in the Ownership Manager for Consolidation type models.

In the consolidation monitor we can see the status of the following.

Controls Status Work Status Currency Translation status Consolidation status

Controls Monitor

This is the place where user defined checks are performed to makesure the data entry or at subsequent points in the consolidationprocess to help ensure completeness and accuracy of the data. Thisis mainly used to control the consistency of the financial data, forexample the balance sheet is balanced or not.

Journals


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Journals work spaces are to record and make adjustments to data inthe database. This is typically done as part of the month-end orquarter-end process. For example, administrators load general ledgerinformation into a model using the Data Manager. Before the close,

line managers can review the data and make adjustments asnecessary using a journal entry.

Journals Workspace Features:

List journal IDsSelect journals based on your context or advanced search criteriaSelect columns to display

Ownership Manager

The Ownership Manager in the Consolidation Central moduleenables you to create and manage ownership-based hierarchiesused for performing statutory consolidation.

Ownership calculations are run from the ownership manager.

An ownership based hierarchy combines Group and Entity members,

where entities can be assigned to groups by Category and Time.Groups are nodes and entities are base level members. We defineownership based hierarchies in the system to set up and report onentity hierarchies that cannot be managed by a dimensionalhierarchy.


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In the above example, USA is the holding company, the percent ofownership is 100% and it owns 70% of Australia. Australia owns 60%of China.

Security

The following tasks required for the consolidation processes.


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Ownership Calculations

The ownership calculations specify a parent entitys ownershipinterest in its subsidiaries, and the consolidation rates and methods tobe applied. The steps followed for each ownership calculationprocess is explained in the appendix under Ownership Calculations.

Elimination of OwnershipPurchase Method usingConsolidation Monitor

1. Log into EPM Add-in excel to enter data for the consolidationmodel using the following input form.


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In this guide we will address the consolidation of investmentincome for the following items using the purchase method.

a. USA invests $80,000

b. Australias stock purchase is 20,000c. Chinas stock purchase is 30,000d. The minority interest will be booked.

2. Go to Home Tab, click consolidation central then clickconsolidation monitor.


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3. Select the model at the right top corner and the context at thetop of the screen as follows.

4. To run the consolidation process, highlight the corporate levelgroup (World) and press consolidate.

5. In the following pop up window, make sure the context iscorrect and then select the option of Incremental or Fullconsolidation as follows. The incremental option is chosenwhenever the entitys transaction data is most recent than thelast consolidation process. Then press okay in the pop upwindow.


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7. After the successful completion of the consolidation, the statusshould as follows.

8. Now log in back to the EPM Add-in Excel and refresh thefollowing input form. The report should display as given below.So what we learn from this is as follows.

a. The investment of USA (80,000) is adjusted to0.

b. The stock purchase of Australia is adjusted to0

c. The stock purchase of China is also adjustedto 0.

d. The minority interest for both Australia andChina are booked


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Controls Monitor

This process is used to identify if there is any inconsistency in thefinancial data by defining some user checks. In the following steps,we will see how to configure in checking if there is any in-balance oftotal assets & total liability.


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1. Go to Administration tab, click Controls under Rules.

2. Enable the controls for a model by highlighting the model andpress Enable controlsat the top. Then click Ok.


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3. Click Newto create a new control and enter the followingdetails.

ID: Name of the control (BALANCE_CHECK)Type: Blockingmust be passed before advancing to next work state.


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Type: WarningCan let to proceed with the next step in the work status.

Breakdown Dimensions: Two additional dimensions can be selected to balance

by.

4. The description, the tolerance Thresholds based on absolutevalue or percentage are entered as follows.

5. In the following screen the accounts are entered as follows tocompare the total assets and total liability.

BS100-Total Assets at the top part of the screenBS200-Total Liability at the bottom of the screen.

6. If there is a need to display the input schedule or web report

when the control is executed, then the Documentssection isused as follows.


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12. Now we are ready to run the controls. Go to Home, clickConsolidation central, and then click Controls Monitor.

13. Choose the model at the top right hand corner and set thecontext at the top of the screen.

14. Highlight the higher level group (S_World) and click the

Run controls.

15. After successful run of the control, click the open controlresults to see the failed items. The following screen shoulddisplay the Failedstatus as follows.


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16. Click on the failed controls to see detail error message asfollows.

17. Now click the line Balance Check for Australia, thescreen should display the following details where it shows theliability not equal to assets. Here the control failed for thedifference of $19,361


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18. We will adjust this amount by using a journal entry andrerun the control in the next section.

Journal

1. From the Home tab on the Start Page, choose Planning andConsolidation Administration Features Journals.

2. Now highlight the model and click New to create a Journaltemplate as given in the following screen.


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3. Save and close the template.

4. Access the Journal Landing Page for your Legal model.a) From the Home tab n the Start Page, chooseConsolidation Central Journals.b) On the upper right, select your Legal model.

5. Create new Journal Entry as given in the following screen.


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6. Now go to the controls monitor and run the controls one moretime by clicking the Run controls. Here it shows the controls ransuccessfully and it balanced on the liability and assets.

Appendix:

Ownership Calculations:

1. Go to Consolidation Central in the home tab and click onownership manager as in the following screen.


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2. Select the context in the top of the screen and click edit.

Category = Actual, TIME= 2012.12 and Group = S_WORLD(Corporate)

3. Click Add and select the holding and subsidiaries as follows.


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4. Define the holding company by double clicking the currentconsolidation method and choose 101 Holding in the dropdown list and save the model.

5. Click the Calculate button at the top right corner and select thedirect share method in the pop window as in the followingscreen. Then press okay.


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6. The following screen shows the generated values of percentcontrol and percent ownership by the direct share method asentered in the input schedule in step #1 of data preparationsection.


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7. Now click calculate and choose group share method as follows.Then Click okay.

8. Now the percent control and percent ownership are calculatedby the group share method option.

The Group Share of China is 22% Percent Control since Australiaonly has 55% control (.55 x .40 = .22).The Group Share of China is 42% Percent Control since Australiaonly has70% ownership (.70 x .60 = .42) .


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9. Now overwrite the Percent Ownership Currentby using thegroup share method as follows.

10. In the following scree, the generated values are copied

into current percent of Ownership (POWN) since the overwriteoption was chosen.


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11. Now update the method Percent Consolidation andPercent Ownershipvalues using the Group Share Method.

12. The options selected in the above screen, updated 4items as follows.

a. The Method for Australia is updated to Proportional sinceits Percent Control falls between the range of .25 to .75

specified in the Methods above.b. The Method for China is updated to Equity since itsPercent Control falls between the range of .00 to .25specified in the Methods above.

c. The Percent Consolidation (PCON) for Australia isupdated to .75 since its Percent Control falls between therange of .25 to .75 specified in the Methods above.

d. The Percent Consolidation (PCON) for China is updatedto .25 since its Percent Control falls between the range of.00 to .25 specified in the Methods above.


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13. Now calculate the methods and percentages by choosingdirect share method as follows.

14. Now the method and PCON are calculated based on thedirect share method.

a. The Method for C2000 is updated to Proportional since its

Percent Control falls between the range of .25 to .75specified in the Methods above.


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b. The Percent Consolidation for C2000 is updated to .75since its Percent Control falls between the range of .25 to.75 specified in the Methods above.

15. Now calculate for Group shares only without any otheroptions as given below.

16. The output of the above option will change thecalculations as follows.


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17. Now we will test the option of calculating methods and thepercent of consolidation (PCON) based on the previouscalculation.

18. In the below screen the method and PCON are updatedwith the previous calculations.


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Key Financial Terms


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Disclaimer:

This description is a preliminary version and not subject to a license agreementor any other agreement with SAP. This document contains only intendedstrategies, developments, and functionalities of the SAP product and is notintended to be binding upon SAP to any particular course of business, product

strategy, and/or development. Please note that this preview is subject to changeand may be changed by SAP at any time without notice.


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SAP assumes no responsibility for errors or omissions in this document. SAPdoes not warrant the accuracy or completeness of the information, text, graphics,links, or other items contained within this material. This preview is providedwithout a warranty of any kind, either express or implied, including but not limitedto the implied warranties of merchantability, fitness for a particular purpose, or

non-infringement.

SAP shall have no liability for damages of any kind including without limitationdirect, special, indirect, or consequential damages that may result from the use ofthese materials. This limitation shall not apply in cases of intent or grossnegligence. The statutory liability for personal injury and defective products is notaffected.

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SAP Communi ty Contr ibutors :

Author: Chief Architect:

Sulthan Mohammad Jothi PeriasamySAP EPM/BPC Project Lead/Manager /Architect SAP HANA/EPM/BI/EIM Community Thought LeaderSAP EPM Community Member SAP BPC/BOBJ/BI/MDM Community Domain [email protected] [email protected], (916)-296-0228 - Cell

Contact Us For:

IC Eliminations IC Matching , IC Booking , Account Transformations , Carry Forward Consolidation Leading Practices and Design Advisory Minority Interest and Equity Calculations, and Much More
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