Simplify and Accelerate your Planning & Budgeting Process through SAP Business Planning.

Sumil Vikamsey, ACA

EPM Specialist Business Objects, an SAP company Email: sumil.vikamsey@sap.com

Piyush Doshi FCA, ICWA

Managing Consultant PricewaterhouseCoopers Email: piyush.doshi@in.pwc.com

AGENDA

Budget, Planning and Forecasting BPC Strength Budget process demo

AGENDA

Budget, Planning and Forecasting BPC Strength Budget process demo

SAP Delivering a Coherent, Consistent, FPM Suite for the CFO Office
Strategy Management

Business Profitability Management

Business Planning
Business Planning Business Consolidation

BI Platform BI Platform
Financial Transactions & Services

Compliance & Audit

Core Transactions AR, AP, etc

Shared Services

Tax

Access Control

Process Control

CSR

Treasury

Standardisation, Harmonisation, Consolidation (SHC)

Accounting, Fast Close

Real Estate Reliable Close Financial Value Chain Risk Management

ERP

GRC

Budgeting/Planning

Traditionally done once a year Many companies moving to a rolling monthly/quarterly forecast Often begins with setting top level targets and pushing down Top down process typically followed by intensive bottom up process at a fairly low level of detail
Detailed Revenue/COS planning Detailed Headcount plan (employee level detail or higher) Detailed Expense plan Detailed Capital Expenditure plan Balance Sheet/Cash Flow plan

Allocations/Corporate Adjustments
Various Overhead Allocations Adjustments to bring Bottom up plan in line with Top Down Targets

Consolidation/Reporting
Consolidate, eliminations, etc. Distribute budget reporting package(s)

Forecasting

Typically summary level of information Often includes extensive assumptions/driver based models Most companies moving to a rolling 12, 18, or 24 month forecast Frequently included as part of quarterly guidance provided to analysts P&L
Consolidated or divisional level of detail (not usually cost centers) Largely handled by finance with less input from division managers

Balance Sheet
Derived from P&L using drivers/assumptions Some lines may include complex assumptions/forecasting methodologies

Cash Flow
Derived from Balance Sheet & P&L using assumptions Often the most important component of the forecast everything else done in support of the Cash Flow

Alignment and Communication of Plans

Spreadsheets Nightmare

Flexibility without control Difficult to maintain Budgeting nightmare Longer budget cycle time Versioning Problems Security Workflow

Planning & Budgeting : Basic Expectations

Automate budgeting & forecasting processes Accurately consolidate information for reporting to HO Proper workflow & security controls Flexibility in company financial performance analysis Instant & easy access to financial and planning data (Drill Downs / Drill through) Shorten the time to close and produce report No personal spreadsheets Streamline Audit and compliance issues.

The Performance Management Challenge

KM1

Data source

BPM Application Suites/Modules

Reporting

User Interface

structured data

Planning

Process

unstructured data

11 June 2008

Slide 10 KM1 put slide in corp template cylinders need to me more distinctive, and more separated (done) we want to convey chaos (things that our customers are dealing with) rather than gray arrows, on click 1 representative from each cyl type lines up underneath reporting, planning, process red arrows need to build after the individ cyls line up under each module. make the build convey that it's a complex process user interface (each section builds on click): * make reporting icon a stack of papers, make * planning a stack of paper that are charts and graphs, * process use a green screen legacy app (black screen, lime green type on it fills the UI) right picture should be an icon of a person looking confused. (keep the photograph for later use)
Kathleen McMahon, 12/Mar/07

High-Level Architecture

AGENDA

Budget, Planning and Forecasting SAP BPC Solution Budget process demo Piyush Doshi FCA, ICWA
Managing Consultant
PricewaterhouseCoopers

Email: piyush.doshi@in.pwc.com

SAP Business Planning & Consolidation - A Unified Approach to CPM

Business Processes
SAP BP&C: 1 Product Competition: 8-9 products

Operational Tasks

Collection of Data

Communicate

Consolidation Analysis & Reporting Report Distribution

Re Me por as tin ur g em & en t

Fo re ca st in g

Bu dg et in g

nn in g

Fi na Cl nci os al e

Pl a

BPC for Planning

SAP BPC 5.1 provide in a single tool a solution for all Budgeting processes. The Budget is organized by Business Process Flow, managing automatically Budget Version validation and approval as well as complex budget workflow Keys Functionalities:
Automatic Budget Consolidation HR Budgeting process COS Budgeting Process OPEX and CAPEX Budgeting Process Automatic Multi Currency Conversion Top Down and Bottoms up Budget Driver Based budget Cash Flow Calculation

Key Strength of the Solution

Unification of all Budgeting Process

HR,

COGS, CAPEX, OPEX sharing all or subset of Master Data and Data. One version of the truth across all budget process.

Excel Based and action pane

Ease

of use, most powerful reporting and analysis capabilities, familiar environment. Very low cost of ownership

Business Process Flows to reinforce control, review and validation

Control

and reinforce Budget process across all BU. Ensure consistency of process everywhere in the group

Offline Capabilities
Ease

of deployment and flexibility

User Experience: Microsoft Offices

Office Integration TIAA-CREF (US) Unified experience with familiar OFFICE interface FranceTelecom (France) Action Panes Drag&Drop and Contextual relevant Office Integration; ZFP Jefferies Group (US) expanded and fully unified interface with Office significantly simplifies internal and external Unique in the market financial processes Charter Mac TIAA-CREF, France Telecom, Curtiss Wright, Ace user experience of the future Insurance
Across office and browsers

User Experience : Business Process Flows

TIAA-CREF (US) Prepackaged application functionality simplify and unify budgeting and consolidations process; shift ownership: from 2 people to the finance to manage the performance of business group and beyond processes Ladbrokes (UK) easier to integrate, involve users, and leverage the market Unique in IT and processes across company next generation functionality NRG (US) TIAA-CREF, NRG,the way to standardize all we see BPFs as Pyrotek performance management processes on SAP BPC

Budgeting Process
Budget & Target
Multiple Rates Multiple Budget Hierarchies Driver & Global assumption Setup Target Allocation

Revenue & COS

Driver Based Automatic Calculation Product Lines Management .

HR Budgeting
Driver Based Automatic Calculation Department Transfer Process & Approval Promotion Process & Approval Salary Budgeting & Planning Personnel expense .

Expenses Budget
Driver Based Automatic Calculation Multiple Calculation Method .

CAPEX OPEX
Driver Based Automatic Calculation Capex by Assets Class Capex by Project

Consolidated Review
Product Profitability

Allocated Expense

PDF Publication

Cashflow . .

What-if Analysis Budget Version Setup .

DEMO

LITASCO Selects SAP BPC

The implementation process was incredibly quick, and the
Company Location Industry Products/Services Revenue Employees Web Site SAP Solutions and Services www.litasco.com SAP Business Planning & Consolidation LITASCO (LUKOIL International Trading and Supplky Company) Geneva, Switzerland Oil traders of crude oil and refined petroleum

easy-to use nature of the software meant our employees only required three days training. The implementation was so quick that during the same month the financial reporting component went live, we were able to produce that month's financial reports using the new software. All in a fraction of the time it used to take.
Laurent Corbaz Head of Financial Reporting & Planning LITASCO

Challenges and Opportunities

Needed insight into the vital reporting and analysis of the organization Needed forward-looking capability to shape business success and insight to identify key performers Enterprise-wide, scalable solution that enhanced the ability to easily manage operation and financial requirements Cut reporting time Remove reliance on spreadsheets Enhance ability to analyze KPIs Easy integration with existing SAP systems Excellent training and ease of use Streamlined successful implementation in 5months Immediate access to reporting, GAAP consolidation, KPI analysis and scorecarding

Why SAP BPC

Easily integrated with existing SAP systems Seamless budgetary reporting integration Central data repository with real-time enterprise wide accessibility Easy KPI analysis with scorecarding

Benefits
Greater 360 business insight across the enterprise Compliance with GAAP consolidation regulations Streamlined three month consolidation process into one week Predictive analytics for non-financial KPIs allowing them to compare business targets

Objectives

Highlights

Listasco Cockpit Management

Cockpit Room

Customers

Thank You for Your Time

Questions

Sumil Vikamsey sumil.vikamsey@sap.com

Piyush Doshi piyush.doshi@in.pwc.com