clone skills, inc sap hana & bobi 4.0 coursework - case study - v1

CloneSkills, Inc.

SAP HANA & BOBI 4.0 Competency Development Program Financial Analytics

Case Study

CloneSkills, Inc. http://www.CloneSkills.com , 916. 631.1980, 800.836.5696, [email protected]

SAP HANA Enabled SAP BOBI 4.0 Solutions

Analyzing Financial Statements (FS) Through SAP BOBI 4.0

a “SAP HANA” enabled solutions

CloneSkills, Inc.


Case Study

OBJECTIVES:

To understand the essentials of finical statements, including Balance Sheet Income Statement Cash Flow

To understand the data sources of a given finical statement in a SAP system environment To understand the structure and layout of a finical statements To understand the structure calculations and formulas that are used while generating a finical statement

GOALS: Analyze , Design and Implement Dimensions and Measures ( KPI) for a finical statement

Dimension modeling KPI modeling

Analyze, Design and Implement Data Model for a finical statement Classic Star Schema SAP BW Extended Star Schema

Analyze, Design and Implement Layout and Mockup, Calculations for a finical statement



Learn Financial Statements (FS)

Essentials

Develop Conceptual &

Logical View of Financial

Statements

Develop Physical View of Financial

Statements

Dimension KPI’s/ Measures

Classic Star Schema

SAP BW Extended Star

Schema

Deliverables

Problem Requirements Functional Design Technical Design . . .

.

.

.

.

.

.

.

.

Report Layout, Calculations,

Formulas

Case Study – Approach and Roadmap

CloneSkills, Inc.


Case Study



FINANCIAL STATEMENTS(FS) ESSENTIALS

BALANCE SHEET (BS):

KEY POINTS:

The Balance Sheet presents the financial picture of the enterprise on one particular day, an instant in time, the date it was written The Balance Sheet presents

What the enterprise has Today : Assets How much the enterprise owes today : Liabilities What the enterprise is worth today : Equity

The Balance Sheet reports Has Today = Owes Today + Worth Today Asses = Liabilities + Shareholders Equity

By definition, this equation must always be in balance with assets equaling the sum of liabilities and worth

CloneSkills, Inc.


Case Study



Financial Statements(FS) Essentials

Income Statement (IS):

Key Points:

The income statement gives one important perspective of the health of a business , its profitability The income statement does not tell you whole picture about a company's financial position The Income statement report on making and selling activities of a business over a period of time The income statement documents for a specific period ( month , quarter , year) , this is the second basis equation of accounting

SALES - ( COSTS + EXPENSES) = INCOME The Income statement shows for a period all the action taken by the enterprise to either increase assets or decrease liabilities on the Balance Sheet The Income statement and Balance Sheet are inevitably linked

Example: If the enterprise's Income statement shows income, then retained earnings are increased on the Balance Sheet

CloneSkills, Inc.


Case Study



Financial Statements(FS) Essentials

CASH FLOW(CF):

KEY POINTS:

The Cash Flow Statement tracks the movement of cash through the business over a period of time A company's Cash Flow statement is just like a check register…recording all the company’s transaction that use cash ( check) or supply cash ( deposits) The Cash Flow shows

Cash on the hand at the

start of a period + Cash Received

in the period -‐ Cash Spend in the period =

Cash on hand at the end of the period

The cash transactions that are reported in the Cash Flow statements usually has some impact to the Income Statement and Balance Sheet If no actual cash changes hands in a particular transaction, then the Cash Flow statement is not changed

CloneSkills, Inc.


Case Study



Balance Sheet (BS) Analysis

CloneSkills, Inc.


Case Study



Assets Liabili.es & Equity A Cash K Accounts Payable

B Account Receivable (AR) L Accrued Expenses

C Inventory M Current Portion of Debt

D Prepaid Expenses N Income Taxes Payable

E Current Assets O Current Liabilities

F Other Assets P Long Term Debt

G Fixed Assets at Cost Q Capital Stock

H Accumulated Depreciations R Retained Earnings

I Net Fixed Assets S Shareholder's Equity

J Total Assets T Total Liabilities & Equity

Balance Sheet Format - for a Given Period

KEY POINTS: Assets ( Have) - Liabilities ( Owe) = Worth ( Value to Owner) Assets = Liabilities + Worth

CloneSkills, Inc.


Case Study



Assets Calcula.ons/ Formula

A Cash

B Account Receivable (AR)

C Inventory

D Prepaid Expenses

E Current Assets A+B+C+D

F Other Assets

G Fixed Assets at Cost

H Accumulated Depreciations

I Net Fixed Assets G-H

J Total Assets E+F+I


Most Liquid

Least Liquid

CloneSkills, Inc.


Case Study



Liabili.es & Equity Calcula.ons/ Formula

K Accounts Payable

L Accrued Expenses

M Current Portion of Debt

N Income Taxes Payable

O Current Liabilities K + L+M+N

P Long Term Debt

Q Capital Stock

R Retained Earnings

S Shareholder's Equity Q+R

T Total Liabilities & Equity O+P+S


CloneSkills, Inc.


Case Study



HOMEWORK # 1

Explain the following Balance Sheet building blocks with examples ( no story please) Identify the data sources for the following in a SAP system environment

Cash Account Receivable (AR) Inventory Prepaid Expenses Current Assets Other Assets Fixed Assets at Cost Accumulated Depreciations Net Fixed Assets

Total Assets Accounts Payable Accrued Expenses Current Portion of Debt Income Taxes Payable Current Liabilities Long Term Debt Capital Stock Retained Earnings Shareholder's Equity Total Liabilities & Equity

Assets Building Blocks

Liability Building Blocks

CloneSkills, Inc.


Case Study



Income Statement (IS) Analysis

CloneSkills, Inc.


Case Study



Income and Expenses Calcula.ons/ Formula

A Net Sales

B Cost of Goods Sold

C Gross Margin A - B

D Sales and Marketing

E Research and Development

F General and Administrative

G Operating Expenses D + E + F

H Income From Operations C – G

I Interest Income

J Income Taxes

K Net Income H + I - J

Income Statement Format - Between a Given Period

CloneSkills, Inc.


Case Study



HOMEWORK # 2

Explain the following Income Statement building blocks with examples ( no story please) Identify the data sources for the following in a SAP system environment

Net Sales Cost of Goods Sold Gross Margin Sales and Marketing Research and Development General and Administrative Operating Expenses Income From Operations Interest Income Income Taxes Net Income

Income Statement Building Blocks

CloneSkills, Inc.


Case Study



Cash Flow (CF) Analysis

CloneSkills, Inc.


Case Study



Cash In and Cash Out Calcula.ons/ Formula

A Beginning Cash Balances

B Cash Receipts

C Cash Disbursement

D Cash From Operations B – C

E Fixed Assets Purchase

F Net Borrowings

G Income Tax Paid

H Sale of Stock

I Ending Balance A + D – E + F – G + H

Cash Flow Format – Between Periods

CloneSkills, Inc.


Case Study



HOMEWORK # 3

Explain the following Cash Flow building blocks with examples ( no story please) Identify the data sources for the following in a SAP system environment

Beginning Cash Balances Cash Receipts Cash Disbursement Cash From Operations Fixed Assets Purchase Net Borrowings Income Tax Paid Sale of Stock Ending Balance

Cash Flow Building Blocks

CloneSkills, Inc.


Case Study



Accrual Basis vs. Cash Basis Analysis

CloneSkills, Inc.


Case Study



Accrual Basis vs. Cash Basis

Two major ways of running a company’s books , Accrual Basis or Cash Basis, this differs on when the company records expenses and income

CASH BASIS:

Cash basis accenting is the simplest accenting function as compare to Accrual Basis, in Cash basis accounting transactions are triggered only by the movement of cash

ACCRUAL BASIS:

If income is measured when cash is received and expenses are measured when cash is spend , the business is said to be operating on a cash basis, this is like our check book If income is measured when the transactions occurs irrespective of physical flow of cash, the business is said to be operating on a accrual basis In accrual basis accounting, expenses occur when the company incurs the obligation to pay, not when it actually parts with the cash In accrual basis accounting, sales and cost are recorded when the goods are shipped and customers incur the obligation to pat, not when they actually pay. Ex:

Under accrual basis accounting you would lower your net worth when you user your charge card rather than when you ultimately paid the bill Under accrual basis accounting, the income statement does not reflect the movement of cash, but rather, the generation of obligation to pay cash in the future

CloneSkills, Inc.


Case Study



HOMEWORK # 4

Develop conceptual and logical data model for Cash Flow Balance Sheet Income Statement

CloneSkills, Inc.


Case Study



Beginning Cash Balances

Cash Receipts

Cash Disbursement

Cash From Operations

Fixed Assets Purchase

Net Borrowings

Income Tax Paid

Sale of Stock

Ending Balance

$155,000

2,584,900

2,796,438

211, 538

1,750,000

900, 000

0

1,550,000

$643,462

Cash Flow Statement

Cash

Account Receivable (AR)

Inventory

Prepaid Expenses

Current Assets

Other Assets

Fixed Assets at Cost

Accumulated Depreciations

Net Fixed Assets

$643,462

454, 760

414, 770

0

1,512,992

0

1, 750, 000

78, 573

1,671,427

Balance Sheet

Total Assets $3,184,419

Ending Cash on the Cash Flow statement always equals CASH on the balance sheet

Accounts Payable $236,297

Accrued Expenses 26,435

Current Portion of Debt 100,000

Income Taxes Payable 139, 804

Current Liabilities 502, 536

Long Term Debt 800, 000

Total Liabilities & Equity $3,184,419

Capital Stock 1,550,000

Retained Earnings 331,883

Shareholder's Equity 1,881,883

CloneSkills, Inc.


Case Study



INTEGRATION OF CASH FLOW AND BALANCE SHEET

CloneSkills, Inc.


Case Study



HOMEWORK # 5

Develop an income statement report similar to the cash flow report in slide # 21

Integrate the Income Statement and Balance Sheet for the following accounts, develop a slide deck same as slide # 21

Net Income (IS Account) Retained Earning ( BS Account) Shareholders Equity ( BS Account)

Net Sales (IS Account) Account Receivable ( BS Account)

CloneSkills, Inc.


Case Study



APPENDIX - SAMPLE LOGICAL DATA MODEL

Sales Revenue

GL Account

Entity

Time

Currency

Customer

Product

clone skills, inc sap hana & bobi 4.0 coursework - case study - v1

Documents

sap bobi

sap hana bobi

finical statement cloneskills

period cash

balance sheet cloneskills

income statement report

companys cash flow statement

income statement documents