bpcnw10 ifrs operating sp5

SAP BUSINESS PLANNING AND CONSOLIDATION 10.0, VERSION FOR SAP NETWEAVER, POWERED BY HANA

STARTER KIT FOR IFRS, SP5 Operating Guide

STARTER KIT FOR IFRS, SP5 OPERATING GUIDE

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TABLE OF CONTENTS

A. INTRODUCTION .................................................................................................................................... 6

1. Presentation .......................................................................................................................................... 6

2. Starter Kit Fundamentals ..................................................................................................................... 7 2.1. Models .................................................................................................................................................... 7 2.2. Dimensions ............................................................................................................................................. 7 2.3. Understanding How Exchange Rates work ............................................................................................ 8 2.4. Understanding How the Perimeter works ............................................................................................... 9 2.5. Understanding How the Table of Data is structured ............................................................................. 11 2.6. Understanding the AuditID Dimension ................................................................................................. 12

3. Before Starting .................................................................................................................................... 13 3.1. Updating Users ..................................................................................................................................... 13 3.2. Updating Entities ................................................................................................................................... 13 3.3. Generating Business Process Flow (BPF) instances ........................................................................... 15 3.4. Assigning Controls to the reporting ....................................................................................................... 16

B. ACTUAL VERSION .............................................................................................................................. 17

1. Foreword .............................................................................................................................................. 17 1.1. Models .................................................................................................................................................. 17 1.2. Time / Periodicity / Measure ................................................................................................................. 17 1.3. Specific Dimensions.............................................................................................................................. 17 1.4. Process Overview ................................................................................................................................. 21 1.5. Business Process Flows ....................................................................................................................... 21

2. Preparing for Consolidation .............................................................................................................. 24 2.1. Populating Exchange Rates ................................................................................................................. 24 2.2. Defining the Perimeter .......................................................................................................................... 24 2.3. Checking Perimeter variations .............................................................................................................. 25 2.4. Populating the Opening position of Balance Sheet accounts ............................................................... 25 2.5. Checking Work Status .......................................................................................................................... 25

3. Data Input ............................................................................................................................................ 26 3.1. Local Data Input .................................................................................................................................... 26 3.2. Manual Journal Entries ......................................................................................................................... 30 3.3. Making Adjustments to Individual Accounts ......................................................................................... 31 3.4. Managing Deferred Taxation ................................................................................................................ 38

4. Intercompany Reconciliation ............................................................................................................. 39 4.1. Intercompany Group of Accounts ......................................................................................................... 39 4.2. Data Transfer ........................................................................................................................................ 40 4.3. Data Reconciliation ............................................................................................................................... 40 4.4. Reconciliation Report Retrieval ............................................................................................................ 41

5. Data Processing .................................................................................................................................. 41 5.1. Monitoring the Process ......................................................................................................................... 42 5.2. Running a Consolidation Processing .................................................................................................... 42 5.3. Converting Foreign Subsidiaries Accounts ........................................................................................... 42 5.4. Managing Intercompany Eliminations ................................................................................................... 45 5.5. Managing Consolidation Entries ........................................................................................................... 53 5.6. Managing Business Combinations (M&A, scope changes) .................................................................. 66

6. Completion .......................................................................................................................................... 67 6.1. Procedure to Access Reports ............................................................................................................... 67 6.2. Check Consolidated Data ..................................................................................................................... 67 6.3. Financial Statements ............................................................................................................................ 68

C. ANNUAL BUDGET VERSION ............................................................................................................. 72

1. Foreword .............................................................................................................................................. 72 1.1. Models .................................................................................................................................................. 72 1.2. Time / Periodicity / Measure ................................................................................................................. 72 1.3. Specific Dimensions.............................................................................................................................. 72 1.4. Process Overview ................................................................................................................................. 74


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1.5. Business Process Flows ....................................................................................................................... 74

2. Initialization ......................................................................................................................................... 75 2.1. Exchange Rates.................................................................................................................................... 75 2.2. Consolidation Perimeter ....................................................................................................................... 76 2.3. Data Transfer ........................................................................................................................................ 76

3. Data Input ............................................................................................................................................ 76 3.1. Data Entry Principles ............................................................................................................................ 76 3.2. Validating Data Entry ............................................................................................................................ 77 3.3. Approving Data Entry ............................................................................................................................ 78 3.4. Manual Journal Entry ............................................................................................................................ 78

4. Intercompany Reconciliation ............................................................................................................. 79 4.1. Intercompany Accounts ........................................................................................................................ 79 4.2. Data Transfer ........................................................................................................................................ 79 4.3. Data Reconciliation ............................................................................................................................... 79

5. Data Processing .................................................................................................................................. 81 5.1. Monitoring the Process ......................................................................................................................... 81 5.2. Procedure to Run the Consolidation Process ....................................................................................... 81 5.3. Conversion of Foreign Subsidiaries Accounts ...................................................................................... 81 5.4. Consolidation Methods & Calculation of NCI ........................................................................................ 81 5.5. Elimination and Adjustment entries ...................................................................................................... 81 5.6. Business Combinations ........................................................................................................................ 83

6. Completion .......................................................................................................................................... 86 6.1. Reports ................................................................................................................................................. 86 6.2. Procedure to Access the Reports ......................................................................................................... 87 6.3. Examples of Retrievals ......................................................................................................................... 87

D. MONTHLY BUDGET VERSION ........................................................................................................... 89

1. Foreword .............................................................................................................................................. 89 1.1. Models .................................................................................................................................................. 89 1.2. Time / Periodicity / Measure ................................................................................................................. 89 1.3. Specific Dimensions.............................................................................................................................. 90 1.4. Process Overview ................................................................................................................................. 90 1.5. Business Process Flows ....................................................................................................................... 91

2. Initialization ......................................................................................................................................... 93 2.1. Exchange Rates.................................................................................................................................... 93 2.2. Consolidation Perimeter ....................................................................................................................... 93 2.3. Data Transfer ........................................................................................................................................ 94

3. Data Input ............................................................................................................................................ 95 3.1. Data Entry Principles ............................................................................................................................ 95 3.2. Validating Data Entry ............................................................................................................................ 95 3.3. Approving Data Entry ............................................................................................................................ 95 3.4. Manual Journal Entry ............................................................................................................................ 95

4. Intercompany Reconciliation ............................................................................................................. 96 4.1. Intercompany accounts ......................................................................................................................... 96 4.2. Data Transfer ........................................................................................................................................ 96 4.3. Data Reconciliation ............................................................................................................................... 96

5. Data Processing .................................................................................................................................. 97 5.1. Monitoring the Process ......................................................................................................................... 97 5.2. Procedure to Run the Consolidation Process ....................................................................................... 97 5.3. Conversion of Foreign Subsidiaries Accounts ...................................................................................... 98 5.4. Consolidation Methods & Calculation of NCI ........................................................................................ 98 5.5. Elimination and Adjustment Entries ...................................................................................................... 98 5.6. Business Combinations ........................................................................................................................ 98

6. Completion ........................................................................................................................................ 100 6.1. Reports ............................................................................................................................................... 100 6.2. Procedure to Access the Reports ....................................................................................................... 101 6.3. Examples of Retrievals ....................................................................................................................... 102


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E. MONTHLY BUDGET AT ACTUAL RATE ......................................................................................... 104

1. Foreword ............................................................................................................................................ 104 1.1. Models ................................................................................................................................................ 104 1.2. Periodicity / Measure .......................................................................................................................... 104 1.3. Dimensions ......................................................................................................................................... 104 1.4. Process Overview ............................................................................................................................... 104 1.5. Business Process Flows ..................................................................................................................... 104

2. Initialization ....................................................................................................................................... 105 2.1. Exchange Rates.................................................................................................................................. 105 2.2. Consolidation Perimeter ..................................................................................................................... 105

3. Collecting Data .................................................................................................................................. 105 3.1. Data entry ........................................................................................................................................... 105 3.2. Manual Journal Entry .......................................................................................................................... 106

4. Intercompany Reconciliation ........................................................................................................... 106

5. Data Processing ................................................................................................................................ 106 5.1. Running a Consolidation Processing .................................................................................................. 106 5.2. Conversion, Consolidation Methods, Eliminations and Business Combination ................................. 106

6. Completion ........................................................................................................................................ 106 6.1. Reports ............................................................................................................................................... 106 6.2. Procedure to Access the Reports ....................................................................................................... 107

F. FORECAST VERSION ....................................................................................................................... 108

1. Foreword ............................................................................................................................................ 108 1.1. Models ................................................................................................................................................ 108 1.2. Time / Periodicity / Measure ............................................................................................................... 108 1.3. Specific Dimensions............................................................................................................................ 109 1.4. Process Overview ............................................................................................................................... 109 1.5. Business Process Flows ..................................................................................................................... 110

2. Initialization ....................................................................................................................................... 113 2.1. Exchange Rates.................................................................................................................................. 113 2.2. Consolidation Perimeter ..................................................................................................................... 114 2.3. Opening Data Transfer ....................................................................................................................... 114 2.4. Transfer to the Consolidation Model (Periodic Approach) .................................................................. 115

3. Data Input .......................................................................................................................................... 115 3.1. Data Entry Principles .......................................................................................................................... 116 3.2. Validating Data Entry .......................................................................................................................... 116 3.3. Approving Data Entry .......................................................................................................................... 117 3.4. Manual Journal Entry .......................................................................................................................... 117

4. Intercompany Reconciliation ........................................................................................................... 117 4.1. Intercompany Accounts ...................................................................................................................... 117 4.2. Data Transfer ...................................................................................................................................... 117 4.3. Data Reconciliation ............................................................................................................................. 118

5. Data Processing ................................................................................................................................ 119 5.1. Monitoring the Process ....................................................................................................................... 119 5.2. Running a Consolidation Processing .................................................................................................. 119 5.3. Conversion of Foreign Subsidiaries Accounts .................................................................................... 120 5.4. Consolidation Methods & Calculation of NCI ...................................................................................... 120 5.5. Elimination and Adjustment Entries .................................................................................................... 120 5.6. Business Combinations ...................................................................................................................... 120

6. Completion ........................................................................................................................................ 123 6.1. Reports ............................................................................................................................................... 123 6.2. Procedure to Access the Reports ....................................................................................................... 124 6.3. Examples of Retrievals ....................................................................................................................... 124

STARTER KIT FOR IFRS, SP3 OPERATING GUIDE INTRODUCTION

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A. INTRODUCTION

1. Presentation

The operating guide is organized according to the steps performed during a consolidation process.

Initialization: This step describes the essential actions to be performed in order to start the consolidation process.

Data input: This step describes how to enter data through input forms as well as by posting manual journal entries.

Intercompany reconciliation: This step describes how to reconcile intercompany transactions declared by each entity.

Data processing: This step describes the main concepts of the consolidation and the automated entries configured in the Starter Kit.

Completion: This final step of the process will help understanding how to use the retrievals configured in the Starter Kit.

This organization applies to all versions implemented in the Starter Kit to perform the full financial reporting:

Actual (Actual) Annual Budget (BA)

Monthly Budget (BM) Monthly Budget at Actual Rate (BM_AR)

Forecast (F09 & F09TEC1)

The chart below illustrates how the versions would work:

Beforehand, a first section is dedicated to explain the main concepts shared by all versions.

If need be, the following documentation is available:

Product Documentation: This document, available in the application via the help button, describes functions and procedures.

Configuration Design: This document offers in-depth knowledge about customizing the configuration. You should refer to this documentation to get detailed information about using the application for customization purposes or making changes to the setup of the Starter Kit.

Data Entry Guide: This document is based on the Starter Kits Business Process Flow (BPF) for Data Entry at local entities, and provides a step by step guidance for data entry.

Simplified Description: This document provides general information on the data collection process, consolidation process, reports and the analysis process with the starter kit. A description appendix document is also published which details the list of items that exist in the Starter Kit.

Year Y-1

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Act Act Act Act Act Act Act Act Act Act

F09 F09 F09 F09

BM BM BM BM BM BM BM BM BM BM BM BM

BM_AR BM_AR BM_AR BM_AR BM_AR BM_AR BM_AR BM_AR BM_AR

BA

Year Y


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2. Starter Kit Fundamentals

2.1. Models

The Starter Kit for Business Planning and Consolidation (BPC) includes one environment, SAP_IFRS_SP5. This environment is made up of five models:

One model dedicated to collect, consolidate on a year to date basis (YTD) and retrieve financial data:

- CONSOLIDATION

Two Financial models:

- ICMATCHING, to reconcile intercompany transactions - PERIODICENTRY, to enter reporting data on a periodic basis (PER)

Two support models used to collect non-reporting data:

- RATES, to collect exchange rates - OWNERSHIP, to enter the consolidation perimeters

2.2. Dimensions

All of the information in the database is identified by a set of elements required for storing, processing and retrieving data. These elements are called dimensions.

The SAP_IFRS_SP5 environment includes 15 dimensions. The following table gives a description of each dimension and an overview of how dimensions are assigned to the models.

Dimension Description

Models

Co

ns

oli

da

tio

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Pe

rio

dic

En

try

ICM

atc

hin

g

Rate

s

Ow

ne

rsh

ip

VERSION Seven pre-defined versions: ACTUAL, BA, BM, BM_AR, F09, F09TEC1, F09TEC2

X X X X X

TIME The date on which the information is entered X X X X X

ENTITY The Company or Business Unit whose data is being entered X X X X

CURRENCY The currency in which the data is stored X X X

ACCOUNT The Balance Sheet, Profit & Loss and Cash Flows accounts as well as technical accounts for consolidation purposes, for example clearing accounts

X X

FLOW Balance position (at opening /closing) or variation types explaining the change occurred during the period.

X X

AUDIT TRAIL The audit ID that identifies the origin of the data for input data, local adjustments, manual journal entries, and automatic journal entries

X X

INTERCO The entity involved in an intercompany transaction X X X X

SCOPE The scope for which consolidated data is generated X X

INPUTCURRENCY The currency for which an exchange rate is defined X

FXRATE The rate type (such as Average rate, Opening rate) X


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Dimension Description

Models

Co

ns

oli

da

tio

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Pe

rio

dic

En

try

ICM

atc

hin

g

Ra

tes

Ow

ne

rsh

ip

FXRATENTITY Entity for which a generic or a specific rate is entered X

OWNACCOUNT The type of information stored in a scope (such as Consolidation method, Financial interest rate)

X

ICACCOUNT List of intercompany accounts included in the reconciliation process X

ICAUDITID List of audit IDs included in the reconciliation process X

Any amount stored in a model (for example, CONSOLIDATION) is identified with one member of each dimension assigned to this model.

Example

Entity E2 (whose currency is EUR) has 5 000 in cash at the end of the 2012 fiscal year (Actual). This information is stored as follows in the database:

Version Time Entity Currency Account Flow Audit ID Interco Conso scope

Amount

ACTUAL 2012.12 E2 LC-local currency

A2610-Cash on hand

F99-Closing position

INPUT-Input Data

I_NONE- No intercompany

S_NONE- No consolidation

5 000

In each model, all the assigned dimensions must be populated when an amount is entered or generated by an automated processing. On some dimensions, dedicated members are available to store the data when no detail is required (such as I_NONE for the Interco dimension and S_NONE for the Scope dimension).

The way to populate the Interco dimension depends on the account:

If the account is non-interco (for example, A2610-Cash on hand): enter I_NONE. If the account accepts an intercompany breakdown (for example, A2210-Trade receivables, Gross):

enter the total amount for this account on Interco I_NONE. When required, enter the details of intercompany amounts by partner on the relevant Interco member(s) (for example, I_E1).

The amount attributable to third-parties is not stored on a dedicated member of the Interco dimension. It is equal to the difference between I_NONE and the sum of identified group partners. This difference is displayed in relevant input forms or reports but is not stored in the database.

Note: For more information on the database structure, see the Configuration Design documentation.

2.3. Understanding How Exchange Rates work

Before running a conversion process, the exchange rates for the relevant period must be entered by a central user. This task has to be performed in the RATES model.


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2.3.1. Conversion Rate Tables

A set of conversion rates applied to one consolidation is identified using the two following dimensions:

Version

Time (period)

2.3.2. Conversion Rate Types

For a given Version and Time, the following conversion rate types are available:

CLO: Closing rate AVG: Average rate

DIV: Dividends rate INC: Incoming rate (new Entities)

The conversion rates entered are based on a base currency. This currency must have a conversion rate equal to 1 for all rate types. The choice of this base currency is not related to the consolidation currency.

2.3.3. Calculation Methods

The Starter Kit is designed to express exchange rates using the "Certain for uncertain" (also called Divide) calculation method. This is defined on a currency by currency basis via the native MD property (Multiply or Divide) of the InputCurrency dimension. Example

The base currency is EUR. Exchange rate for USD and EUR are entered as follows:

Currency Rate

EUR 1

USD 1.32

This means 1 EUR = 1.32 USD. In other words, an amount entered in USD will be divided by 1.32 to be converted in EUR.

2.3.4. Entering Specific Rates by Entity

In order to apply specific rates by entity, it is necessary to input the specific rate for the entity (FXRATENTITY dimension) not only against its respective local currency (INPUTCURRENCY dimension) but also against the consolidation currency.

This is because the conversion engine will not refer to the default rate stored on the GLOBAL FXRATENTITY member in the case of a specific rate for one entity.

2.4. Understanding How the Perimeter works

2.4.1. Principles

The consolidation perimeter data is stored in the OWNERSHIP model. It is used when a consolidation process is run. The consolidation scope is defined using a BPF or directly through the Ownership Manager in the Consolidation Central module.


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2.4.2. Definitions

The scope shows the following information for all of the Entities included in it:

The consolidation method

The ownership rate

The consolidation rate

Consolidation methods

For each Entity included in the consolidation scope, a method must be specified. This method is represented by a numeric value, and combines two different notions:

The consolidation method itself, like:

- Full consolidation - Equity method consolidation

The change in scope, like:

- Leaving entity (during the year) - Leaving entity (end of last year)

The following table sums up the combination of consolidation method and scope changes that are represented in the Starter Kit.

Method

Consolidation event

No

variation

Divestment

during the

year

Divestment

last year

end

Parent (holding) company 10

Full consolidation 20 28 29

Equity method 30 38 39

Ownership rate

The Financial interest represents the percentage of capital that a parent company holds directly or indirectly in the held company.

Example

60%

50%

50%

F2

F1

M

Subsidiary Financial

interest rate

F1 60%

F2 80% (1)

(1) Percentage of financial interest of M in F2 = 50% (direct) + 60% x 50% (indirect via F1) = 80%

Consolidation Rate

Besides the financial interest rate, the scope also displays the consolidation rate, which depends on the consolidation method:

For a fully consolidated company (purchase method), it is 100%.

For a proportionate company consolidation, it represents the share of assets and liabilities (or expenses and income) included in the Group balance sheet (or income statement). It is equal to the sum of all direct shareholdings in the subsidiary held by companies in the scope, after the consolidation rates for the latter have been applied accordingly.

For a company consolidated using the equity method, it represents the Group share used to calculate the consolidated value of the investments in associated undertakings. It is calculated in the same way as in a proportionate consolidation.


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Example

20%

80%

F2

F1

M

Subsidiary Ownership

interest Consolidation

method Financial interest

Consolidation rate

F1 80% Full 80% 100% (1)

F2 20% Equity method

16%

20% (2)

(1) F1 fully consolidated, consolidation rate = 100%

(2) Consolidation rate for F2 = direct rate via F1 (20%) x F1 consolidation rate (100%) = 20%

2.5. Understanding How the Table of Data is structured

The structure of the table storing the data for the Consolidation application enables you differentiating between:

Data stored in Local Currency (LC) vs. data stored in Consolidation Currency,

Data attached to a given scope vs. data that can be loaded in several consolidations.

This distinction relies on two dimensions:

Currency,

Scope.

The process to path from local data (in LC) to consolidated data (in consolidation currency) is as follows:

1. Data is entered in local currency and scope = S_NONE

Entity Account Flow Audit ID Currency Scope Amount

E1 P1110 F10 INPUT LC S_NONE 350

2. Data is converted during the consolidation processing and stored in Consolidation Currency without being assigned to any scope (S_NONE) in a first step (Average exchange rate is 1 USD = 0.85714 EUR)



E1 P1110 F10 INPUT EUR S_NONE 300

3. Then, data is linked to the scope (SCOPE1) in consolidation currency.



E1 P1110 F10 INPUT EUR S_NONE 300

E1 P1110 F10 INPUT EUR SCOPE1 300

In the reference table for the Scope dimension, any scope (except S_NONE) must be associated with one or several Group currencies. This information is used to identify the currency or currencies in which the converted and consolidated data are stored in the database.

Even if during Step 2 above, the data is not associated with a scope (Scope is set to S_NONE), the conversion process is triggered based on the scope you specify when running a consolidation.


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2.6. Understanding the AuditID Dimension

2.6.1. Basics

Each type of data is assigned with a different AuditID member in order to help facilitate the analysis of the transition from local to consolidated figures.

AuditIDs are used to:

Provide an audit trail for the amount (e.g. data entered in the input forms is associated with the INPUT AuditID, or other local level adjustment AuditIDs such as LOCAL_ADJ)

Distinguish manual journal entries from automatic entries generated by the consolidation processing. The codes of the AuditIDs used to post manual journal entries always end with an M (e.g. ADJ_ELI_M, Manual Elimination entries vs. ADJ_ELIM_AUTO, Adjustments and Elimination Auto).

AuditIDs are organized in a hierarchical manner. The main groups of the hierarchy are:

All Local Input

- Data input + adjustments

Automated Adjustments and Eliminations

- Elimination of intercompany accounts - Elimination of investments - Elimination of dividends - Goodwill adjustments - Consolidation of equity accounts

Centralized Manual Entries

- Adjustments and eliminations - Adjustments to Financial Statements

2.6.2. AuditIDs configured in the Starter Kit

The table below presents the list of AuditIDs configured in the Starter Kit:

The column Automated indicates whether the AuditID is used as an input (I), manual entry (M) or automated entry (A)

The column Scope indicates whether a perimeter name must be used when posting a manual journal entry.

- S_NONE = no perimeter required - SCOPE1 = perimeter required

The column Currency indicates whether the manual journal entry must be posted using the local currency (LC) or the consolidated currency (EUR)

Name Description Auto/Man Scope Currency

INPUT Input I S_NONE LC

LOCAL_ADJ Local adjustments I S_NONE LC

ADJ_LC_M Manual adjustment entries (LC) M S_NONE LC

ADJ_GC_M Manual adjustment entries (GC) M SCOPE1 EUR

CONS_EQ Consolidation of equity accounts A

DIVIDENDS Elimination of internal dividends - A A

IC_ELIM Elimination of intercompany accounts A A

INVESTMENTS Elimination of investments - A A

ADJ_ELI_M Manual elimination entries M SCOPE1 EUR

FS_ADJ Adjustment on Financial Statements SCF, SCI, SCE M SCOPE1 EUR


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3. Before Starting

3.1. Updating Users

3.1.1. Creating Users

Two users are predefined in the Starter Kit:

LOCALUSER: user that can only enter local data

CONSOMNGR: user in charge of the consolidation

When installing the Starter Kit, it is possible to either create these users in the NetWeaver backend or replace them with real users that are assigned to the same teams of users.

If these users are replaced, the default property values of OWNER and REVIEWER properties must be changed in the ENTITY and the VERSION dimensions.

3.1.2. Updating Entity Dimension

In the ENTITY dimension, update the columns:

OWNER: The owner property identifies the person that must perform a step in a business process flow. This property also sets the OWNER of a given entity regarding the Work status.

REVIEWER: The Reviewer designating property is a special property used to identify the person or team that must review an activity performed by another user in a business process flow. This person or team member can approve or reject the action carried out by the user. A reviewer can also reopen the previous step of a business process flow.

3.1.3. Updating Version Dimension

Only update the column OWNER.

3.1.4. Updating BPF

Assigning the right owners and reviewers must be done before creating process instances.

3.2. Updating Entities

3.2.1. Key Concepts

The Entity is the elementary component of the Groups structure. In a statutory consolidation, an Entity is usually a legal entity, but it can also be a sub-group, a branch, a business unit, or a department. You can also assign a code to companies which are not owned by the Group in the following cases:

When the Group is included in the consolidated accounts of another Group, even though it consolidates data at its own level. By creating an entity ID for sister or parent companies, you can manage all of the data required for the top level consolidation process (for example, investments and intercompany transactions).

When the Group wants to perform breakdowns by partner (customers/suppliers) using consolidated data. The Entity table will then contain all of the reporting units for which the Group has defined a code, regardless of whether or not they will be consolidated.

In the Starter Kit, updating Entities involves maintaining the three following dimensions:

- ENTITY, - INTERCO, - FXRATENTITY.


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The INTERCO and FXRATENTITY dimensions should mirror the ENTITY dimension as regards the leaf-level members (not necessarily the parents or the hierarchy). In the Starter Kit, I_ prefix is used to distinguish entity members and intercompany members. In the FXRATENTITY dimension, enter the code of the ENTITY members.

To avoid any inconsistency in the reported data or when building the perimeter, it is mandatory to ensure that these three tables are up-to-date. For instance, you should not add a new occurrence to the Entity table without adding the corresponding occurrence to the Interco and to the Rate entity tables.

The following names are mandatory and shouldnt be deleted:

- ALL_ENTITY and CONSO of the ENTITY dimension - I_NONE and I_ALL of the INTERCO dimension - GLOBAL of the FXRATENTITY dimension.

3.2.2. Structure of the Entity Dimension

Each Entity stored in the database owns properties enabling it to be correctly included in the consolidation processing and in consolidated reports. When creating a new entity, you should take care of these properties:

Currency

This property identifies the currency in which data is collected.

Parenth1

This property is used to build an Entity hierarchy and therefore to retrieve aggregated contributive amounts by segment in reports. Additional hierarchies can be defined by creating the corresponding property with the Parenth prefix as column header (e.g. Parenth2). Make sure that the Parenth1 property value corresponds to an existing Entity.

IntCo

This property is used to define the link between an Entity and the corresponding member in the Interco table. For instance, in the Starter Kit, the Entity ID E0 corresponds to the ID I_E0 of the Interco table. The Interco table has the homologous property Entity that allows the application to make the link between a member of the Interco table and the corresponding entity member.

Control_level

This property must be populated with 1 in order to trigger the controls.

Owner

This property defines who should enter data at subsidiary level and approve it at the upper leaf level, as defined in the work status settings. It must be updated for all entities before generating the BPF instances.

Reviewer

This property defines who should approve the BPF. It must be updated for all entities before generating the process instances. In the Starter Kit, it is recommended to assign the same user to the reviewer and owner roles.

Country

This indicates the country in which the Entity's headquarters are located. This property can be used to produce geographical area analysis.


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The following other properties are not used in the Starter Kit configuration:

ELIM (US elimination process) STYLE

FX METHOD FX TYPE CTRL_CURRENCY_NOT_LC

3.3. Generating Business Process Flow (BPF) instances

3.3.1. For Local End-Users (at subsidiary level)

Before entering their data in the system, it is necessary to grant local end-users access to the relevant data sets (Version/Time/Entity combinations).

Procedure to generate the instance of the local end-user BPF:

This is done by assigning users to teams that have the appropriate data access profiles (e.g. Data Entry Users team)

1. Go to the BPC Administration module.

2. Click on Business Process Flows > Process Instances.

3. Click on the +New button.

4. Select the BPF then click on Next.

5. Select the owner (The BPF Instance Owner).

6. Select the version and the time then click on Next. A warning appears to say that a BPF instance will be created for all the leaf level entities of the ENTITY dimension. Click Next.

7. Activate the Start the process instance box then click on Finish.

8. Close.

3.3.2. For Users in charge of the Consolidation

Before consolidating data in the system, it is necessary to grant central end-users access to the relevant data sets (Version/Time/Entity combinations).

This is done by assigning users to teams that have the appropriate data access profiles (e.g. Data Entry Users team)

Procedure to generate the instance of the central end-user BPF:


2. Click on Business Process Flows > Process Instances.

3. Click on the +New button.

4. Select the correct BPF then click on Next.

5. Select the owner (the BPF instance owner).

6. Select the time then click on Next.

7. Activate the Start the process instance box then click on Finish.

8. Close.


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3.4. Assigning Controls to the reporting

This task enables the local end-user to run the controls on data entered in the input forms.

Procedure to generate the controls:


2. Click on Rules > Controls.

3. Select the correct model.

4. Click the Edit Assignments button > Edit.

5. Click on Version and active the box (Actual, BA, BM, etc).

6. Click on Time and active the box for the relevant period.

7. Click on Edit.

8. Double-click on the cell and select the corresponding Set of controls.

9. Save and close.

STARTER KIT FOR IFRS, SP5 OPERATING GUIDE Actual version

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B. ACTUAL VERSION

1. Foreword

1.1. Models

The Actual version relies on the following models:

- CONSOLIDATION model, to enter and consolidate data. - ICMATCHING model, to reconcile intercompany transactions. - RATES model, to enter exchange rates. - OWNERSHIP model, to create consolidation scopes.

1.2. Time / Periodicity / Measure

In the Starter Kit, the Actual version is performed at each month of a fiscal year starting in January and closing in December.

Data entry and consolidation are performed on a year to date basis (YTD).

1.3. Specific Dimensions

1.3.1. Chart of Accounts

The chart of accounts is built in a way that makes it possible to map accounts with the IFRS taxonomy items.

Balance Sheet accounts:

- Assets accounts (A + four digit number) are classified between Current and Non-Current - Liabilities accounts (L + four digit number) are classified between Current and Non-Current - Equity accounts (E + four digit number).

Profit & Loss accounts:

P&L accounts (P + four digit number) are disclosed by function and are composed of the following blocks:

- Operating profit - Financial result - Tax (Current and deferred) - Profit (Loss) from discontinued operations.

Statement of Cash Flow accounts:

The Cash Flow accounts (SCF + four digit number) are composed of the following groups of account:

- Operating - Investing - Financing

Be aware that the Cash Flow accounts ending with a B are not used in the Actual version.

Statement of Comprehensive Income accounts:

The SCI accounts (SCI + four digit number) are composed of the following groups of accounts:

- Net Income - Other Comprehensive Income

Statement of Changes in Equity accounts:

The SCE accounts (SCE + four digit number) are composed of the following groups of accounts:

- Balance at Opening


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- Comprehensive Income - Other Equity movements

In any case, the total accounts start with a T.

1.3.2. Flows

The flow dimension is used to identify and analyze the changes between the opening and closing balances. The accuracy of automatic processing depends on whether data has been correctly entered in flows. Flows members to be used differ according to the account being analyzed.

1.3.2.1. List of Accounting Flows

Types of Flow

Opening and closing balances correspond respectively to flows F00 and F99. Variation flows can be organized into the following versions:

Flows for Usual Transactions

- Income statement:

Transactions for the income statement are posted in flow F10.

- Current assets and liabilities other than provisions:

Movements in current assets and liabilities (excluding provisions) and the cash flow are posted in variation flow F15. Example You want to enter an amount of 100 excluding VAT from the sale of goods. In the accounting system:

Accounts Debit Credit

Sale of goods 100

Accounts receivables 100

In BPC:

Accounts Flow Debit Credit

P1100 Revenues F10 100

A2210 Trade receivables, Gross F15 100

- Depreciation, impairment and provisions:

The balance sheet movements due to depreciation, impairment and provisions are posted using the following flows:

F25 - Increase in depreciation F35 - Decrease in depreciation

Example You want to enter a gross amount of 100 as allowances for provisions on shares. In the accounting system:


Depreciation on investment 100

Allowance/depreciation of investments 100


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In BPC:


A1812 Investments in subsidiaries, JV and associates, Impair.

F25 100

P2210 Allowances for provisions on shares F10 100

- Equity:

Some dedicated flows have been created specifically for analyzing the changes in equity accounts. Movements in shareholders' equity usually originate from:

The distribution of dividends (posted in flow F06) The income of the current fiscal year (recorded in flow F10) The increase or decrease in capital (posted in flow F40) Movements that come under Other comprehensive income, for example, flow F55 on fair value

reserve Other specific operations, like acquisition (flow F20) and disposal (flow F30) of treasury shares

Note: In the Equity section of the Balance sheet, there is no specific account for the Net profit of the period. This net profit must be included in account E1610-Retained earnings.

- Non-current assets and liabilities:

Increases are posted in F20. Decreases are posted in F30. Investments in subsidiaries and capital subscription (increase, decrease or creation of capital) are

posted in F40.

Example You invest in the creation of Company F by subscribing 1 000 to its capital. During the year, you buy an associates share for 250. This investment is financed by a bank loan. In the accounting system:


Investments in subsidiaries 1250

Bank loans 1250

In BPC:


A1810 Investments in subsidiaries, JV and associates F40 1000

A1810 Investments in subsidiaries, JV and associates F20 250

L1510 Borrowings, Non-current F20 1250

- Transfers between items:

Transfers between balance sheet accounts are recorded in flow F50-Reclassification.

- Adjustment to IFRS:

Variations in fair value for financial assets and liabilities are posted in flow F55-Fair value.

Flows for Specific Transactions

- Changes in accounting policies: The impact on balance sheet items is posted in flow F05-Change in accounting policies, which must balance (Total Assets = Total Liabilities).


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Flows Specific to Consolidated Accounts

The flows specific to consolidated accounts are populated automatically by the application during the consolidation process and are as follows:

- Effect of foreign exchange rate variations: F80 - Effect of variations in scope:

F01: Incoming units F02: Change in consolidation method. This flow is used for entities that change their

consolidation method, for example from the equity method to a full or proportionate consolidation or vice versa.

F92: Change in interest rate. This flow corresponds to the impact of change in Group financial interest on the equity.

F98: Outgoing units

The Flow dimension includes a dedicated member, END, used to sum up the opening and movement flows. It is mainly used for control purposes (by comparing the amount calculated for the END flow and the amount stored on flow F99), and should neither be used in input forms nor manual journal entries.

1.3.2.2. Entering Data in Flows

In input forms

In the input forms, you must enter the closing balance in flow F99. Flow F15-Net variation is then automatically calculated by subtracting the sum of the opening flow and other movement flows from the closing flow (F99). Flow F15 is used as a control flow whose amounts should be allocated using the relevant variation flows, for all the balance sheet items except:

- Cash accounts - Current assets/liabilities accounts, excluding depreciation, impairment and provisions, for which no

detailed breakdown by flow, like increase/decrease, is required to build the statement of cash flows.

Example

Company A has assets of up to 100 at closing, as compared to 50 at opening. After entering or importing closing data, the assets variation table should be as follows:

F00 F99 F20

Increase F30

Decrease

F55 Fair

value

F50 Reclass.

F15

Control

A11xx Assets 50 100 50

Movements during the fiscal year correspond to an investment of 80 and a sale of 30. Data should therefore be entered in the schedule as follows:

F00 F99 F20

Increase F30

Decrease

F55 Fair

value

F50 Reclass.

F15

Control

A11xx Assets 50 100 80 -30 0

In Journal Entries

Regardless of whether they are automatic or manual, journal entries on balance sheet accounts are recorded via a movement flow whose amount is carried over to the closing balance F99.


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1.3.2.3. Balancing Flows

Certain flows must be balanced for assets and liabilities/equity. Others must ensure that assets - liabilities = income.

Flows Assets - Liabilities = Equity Assets - Liabilities = Income (income statement accounts)

F00 Opening X

F01 Incoming units X

F09 Change in accounting policies X

F50 Reclassification X

F80 Currency translation adjustment X

F99 Closing X

1.4. Process Overview

The chart below illustrates the relationship between models involved during the consolidation process of the Actual version.

1 Opening balances are loaded from the previous year closing

2 Data input and or loaded from other source systems

3 Actual IC local data is loaded intoICMATCHING Model

4 Conversion of local data into consolidation currency and reconciliation

5 Conversion of local data into consolidation currency and consolidation

1.5. Business Process Flows

The Starter Kit provides Business Process Flows (BPFs) to assist users with the process of consolidation of Actuals data.

There are two BPFs pertaining to the Input of Local data (A10_Input_Closing and A20_Input_Inflow); these are directed to local end-users. The decision of which of these two to use depends upon your requirements for detailed reporting at the FLOW dimension level.

The first BPF (A10_Input_Closing) is relevant where detailed use of the FLOW dimension is NOT required for reporting (i.e., you require no more than simply Opening, Variation, and Closing flows). The second (A20_Input_Inflow) includes additional steps for the user, which allow for more detailed entry/breakdown, and therefore reporting, on Flow members (i.e. you require more than just Opening, Variance, and Closing Flow details).

ICMATCHING Model (YTD)

CONSOLIDATION Model (YTD)

Actual (Y)

Local data Consolidated data

Local data Converted data

3

Actual (Y)

Actual (Y) Actual (Y)

Actual (Y-1)

1

2

4

5

Rates Model

OwnershipModel

Actual (Y)

Actual (Y)

4

5

5


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The process shown below reflects all Steps and Actions for both versions. Steps and actions in Black Text are included in both versions; steps and actions in Red Text are relevant to and included ONLY in the A20 version:

A20_Input_Inflow

Steps Actions

Import data Upload import file

Import data

Enter data Enter Balance Sheet

Enter Profit and Loss

Enter Balance Sheet by Flow

Enter Intercompany detail

Validate data Run controls

Check consistency with Previous years closing balance

Run Intercompany control report

Run Local Reports Retrieve Statement of Financial Position

Retrieve Income Statement

Retrieve Statement of Cash Flows

Intercompany Reconciliation Run P&L Reconciliation

Run BS Reconciliation

Run Dividends Reconciliation

Run BS by flows for 1 Partner Reconciliation

Submit data Submit data (change work status)

The remaining two BPFs (A11_Consolidation_Closing and A21_Consolidation_Inflow) are used to perform the steps required for Consolidation of data, and are directed to central end users.

Again, as with the Input BPFs, the distinction between them relates to the detailed use of the FLOW dimension. Depending on the requirements, the two A1x versions will be used together, OR the two A2x versions will be used together.

The Consolidation Process Flow below reflects all Steps and Actions for both versions. Steps and actions in Black Text are included in both versions; steps and actions in Red Text are relevant to and included ONLY in the A21 version:

A21 Consolidation_Inflow

Steps Actions

Preparatory tasks Enter exchange rates

Create perimeter

Check perimeter variations

Copy Opening

Check Work Status

Manual Journal Entries Post manual journal entries

Intercompany Reconciliation Push data to ICMATCHING model


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A21 Consolidation_Inflow

Steps Actions

Generate IC Matching postings

Reconcile Total BS and P&L

Reconcile SubTotal BS and P&L

Reconcile detail P&L accounts

Reconcile detail BS accounts

Reconcile Dividends paid / received

Consolidation Run Actual consolidation

Control Reports Data Consistency Dashboard

Opening Balance Intangibility

Flow by Audit ID

Flow by Entity

A = L by Audit ID

A = L by Entity

BS = IS by Audit ID

BS = IS by Entity

Analysis Reports BS by Flow

BS by Flow and Audit ID

BS by Audit ID

BS by Entity

IS by Audit ID

IS by Entity

SCF by Audit ID

SCF by Entity

SCI by Audit ID

SCI by Entity

Breakdown Reports Breakdown by Entity

Breakdown by Partner

Financial Statements Income Statement

Statement of Other Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

This step is combined with Control Reports in the A11 BPF, and therefore does not exist in that BPF These Actions are included in the step Control Reports in the A11 BPF


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2. Preparing for Consolidation

In the Starter Kit, the preparation process is managed through the Process Flows for Consolidation (either A11_Consolidation_Closing or A21 _Consolidation_Inflow), and is divided into 5 steps:

Enter the exchange rates for the period

Create or modify the consolidation perimeter(s)

Check for any perimeter variations compared to the prior year

Run the CopyOpening process for local and consolidation currencies in order to generate the opening balances

Check the current Work Status for the period for Entities included in the perimeter

2.1. Populating Exchange Rates

Procedure to enter conversion rates:

BPF: Ax1_Consolidation_, Preparatory Tasks BPC Web Client

Select Enter exchange rates From the Start Page, choose Library

Select the Public folder Open the Input Form Rates input by currency/entity

Select the appropriate context, and then click Refresh: Version = Actual Time = xxxx.XX

For each InputCurrency/Entity combination, enter the correct rates in the Rate columns as required

Click on Save

Warning: Do not forget to enter reporting currency and base currency for each Entity. Also check that closing rates for the previous year have been entered!

2.2. Defining the Perimeter

Procedure to create/modify the perimeter:

BPF: Ax1_Consolidation_, Preparatory Tasks BPC WEB Client

Select Create perimeter Click on Consolidation Central

Select Ownership Manager

Select the relevant data range: Version = ACTUAL Time = xxxx.XX Consolidation Perimeter (Scope) name

Click on edit, then add and select the entities in the right pane

Fill out the Consolidation method, Consolidation rate and financial interest rate for each entity

Click on Save


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2.3. Checking Perimeter variations

Procedure to check perimeter variations:

BPF: Ax1_Consolidation_, Preparatory Tasks EPM Excel Add-In

Select Perimeter variations Log on into the model OWNERSHIP

Select the EPM menu

Select Open, and Open Server report folder Select the file Perimeter Variations.xlsx

Select the appropriate EPM context: Version = Actual Time = xxxx.XX Scope OwnAccount

Click on Refresh

2.4. Populating the Opening position of Balance Sheet accounts

Procedure to populate the opening balance:

BPF: Ax1_Consolidation_, Preparatory Tasks EPM Excel Add-In

Select Copy opening Log on into the model CONSOLIDATION

Select the Data Manager menu

Open Run Package / Financial Processes Select Copy Opening

Select the correct data range: Version = Actual Currency = LC + Consolidation currency Entities= All entities of the perimeter except entities outgoing during

the previous year Time = xxxx.XX

Run

2.5. Checking Work Status

The Work State for all Entities at the start of a new period should be Started, which allows local users to enter data.

Procedure to check work status:

BPF: Ax1_Consolidation_, Preparatory Tasks BPC Web Client

Select Check Work Status Click on Consolidation Central

Click on Consolidation Monitor

Select the correct context: Version = Actual Time = xxxx.XX Scope = Scope1

Review the column Work Status for each Entity


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3. Data Input

The objective of this section is to describe how data is collected, validated and approved.

The data collection relies on two separated actions:

Local data input

Manual journal entries

3.1. Local Data Input

3.1.1. Data Entry via Importing Files

3.1.1.1. Uploading Files and Importing Data

If desired, the local entry user may upload a pre-defined file containing the all of the required input data for the consolidation period, by accessing the step Import Data in either of the Input Process Flows. The format of the file should include all dimensions as appropriate; the file may include Balance Sheet, Income Statement, Intercompany and Flow detailed data as appropriate. Only files in the format xxxxx.csv should be used. Once uploaded to the BPC server by using the action Upload import file, the file may then be imported by using the action Import Data to trigger a Data Manager package which will load the file to the database.

3.1.1.2. Importing transaction data from BW

Transaction data can be imported from an SAP NETWEAVER BW SAP Business Planning and Consolidation staging cube. Imported data is filtered through Transformation and Conversion files. Prerequisite: the BW staging cube is already pre-populated with data from SAP General Ledger

Data import can be launched from the EPM Excel Add-In.

EPM Excel Add-In

Log on into the model CONSOLIDATION Select the Data Manager menu

Select Run Package, and Display Consolidation and Data Management

Run the Package Load Transaction Data from BW InfoProvider UI

Select the appropriate infoProvider

Click on Next

Select the appropriate Transformation file: ECC GL Data PL (for P&L) or ECC GL Data (for Balance sheet)

Click on Next Overwrite records with match key

Select Yes and Finish

The transformation files provided in the starter kit are based on a BW staging cube PKG/FC_C01 delivered with the EPM RDS Financial Close & Disclosure Management. The BW system has been connected to an ECC source system where financial data from the US baseline (SAP General Ledger) has been loaded. All information regarding RDS offering can be found at http://www.sap.com//solution/rapid-deployment.html Transformation files should be updated according to data storage in the BW InfoObjects. An update procedure can be found in the Configuration Design description.


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3.1.2. Data Entry via Manual Input Forms

3.1.2.1. Accessing Input Forms

Input forms can be launched from either a BPF or from the EPM Excel Add-In.

BPF: Ax0_Input_, Enter Data EPM Excel Add-In

Select the appropriate Input Form Log on into the model CONSOLIDATION

Select the EPM menu

Select Open, and Open server input form folder Select the appropriate input form

Select the appropriate EPM context: Version = Actual Time = xxxx.XX Entity or Account, as appropriate

Click on Refresh

3.1.2.2. Data Input Organization

Data input forms are grouped together under the ACTUAL > INPUT FORMS folder:

10- Balance Sheet folder : Opening/closing balances for balance sheet accounts

20- Profit and Loss folder: Closing balances for profit and loss accounts 30- Intercompany folder: intercompany breakdowns

40- Balance Sheet by Flow: detailed flow breakdowns

Note: when accessing through a BPF, the 40-Balance Sheet by Flow schedule does not appear in the A10 actions; the A10 BPF is used when Flow detail is not required.

3.1.2.3. Structure of the Input Forms

The Data input forms are structured as follows:

Balance Sheet

- Data may be entered for either of the Input Audit IDs in the same worksheet - Opening flow data (F00) is reflected for comparison purposes, but this flow is normally populated via

the Copy Opening process - Clicking on the Blue link in the columns (upper left corner of the Audit ID for Input and for Local

Adjustments) opens the detailed input schedule 40- Balance Sheet by Flow, allowing direct entry of the flow breakdowns for relevant balance sheet accounts.

- Clicking on the Red link in certain account rows (upper left corner in intercompany-relevant account cells) opens the detailed input schedule 30-Intercompany, allowing direct entry of the intercompany partner breakdowns for these accounts.

Profit and Loss

- Data may be entered for either of the Input Audit IDs in the same worksheet - Clicking on the Red link in certain account rows (upper left corner in intercompany-relevant account

cells) opens the detailed input schedule 30-Intercompany, allowing direct entry of the intercompany partner breakdowns for these accounts.

Intercompany

- Data may only be entered on Intercompany-relevant accounts, for one account at a time - Breakdowns by Flow relevant to partner breakdowns are accounted for within the form

Balance Sheet by Flow

- Details by flow by account may only be entered for valid flows on the particular account; non-valid flows per account are visually blocked and will not allow data entry


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Entry area To keep the data entry consistent and guide the user through the data entry process:

A red symbol at the left of the account indicates whether the account can be detailed by partners or not and provides a direct link to open the Intercompany input form.

The formatting imposes certain rules to indicate that some cells are not to be filled:

- Cell hidden by thin gray diagonal stripes: Account/flow crossover is not authorized. For example, an increase in depreciation (flow F25) is not relevant for tax accounts.

- Colored fill and bold font cell: The cell contains a subtotal resulting from a calculation formula.

When needed, the schedule displays in the last column a visual control that should be equal to zero if all values are correctly entered.

3.1.3. Validating Data Entry

3.1.3.1. Running Controls

Controls can be launched from either a BPF or from the BPC Web Client.

BPF: Ax0_Input_, Validate Data BPC Web Client

Click on Run Controls Click on Consolidation Central

Click on Controls Monitor

Select the appropriate context values: Version = Actual Time = xxxx.XX Scope

Select Refresh Click on a Parent or Entity member, and then click Run Controls

3.1.3.2. Principles

A number of controls are preconfigured in the Starter Kit to validate the consistency of the data entered (either through file uploads/imports or directly in data input forms).

These controls are grouped together into several sets. Your requirements will determine which set should be assigned for your particular consolidation period (assignment of sets is explained in the section Assigning Controls to the reporting in this document). Set descriptions are:

- A_CLOSING: Assign this set if utilizing the CLOSE set of BPFs (A1x versions). - A_FIRSTCONSO_CLOSING: Assign this set if utilizing the CLOSE set of BPFs (A1x versions),

and the period is the First Consolidation for the relevant Version (e.g., ACTUAL) - A_INFLOW: Assign this set if utilizing the INFLOW set of BPFs (A2x versions). This set includes

additional controls that are specific to validating detailed flow data. - A_FIRSTCONSO_INFLOW: Assign this set if utilizing the INFLOW set of BPFs (A2x versions),

and the period is the First Consolidation for the relevant Version (e.g., ACTUAL). This set includes additional controls that are specific to validating detailed flow data.

Individual controls are displayed logically and can be carried out progressively throughout the data entry process.

The main types of controls are listed below:

Total assets equals to total liabilities

For assets, gross value > or = provision/allowance/depreciation checks

For intercompany account balances, all values have a partner assignment

Analysis of movements between opening and closing positions for the balance sheet items

Breakdown analysis by partner

Controls apply to local audit IDs (INPUT and LOCAL_ADJ), either Audit ID-by-Audit ID or all Audit IDs aggregated.


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All the accounting controls are blocking controls. This means that if they are not validated, data entered for the {Version, Time, Entity} combination is not valid and cannot be submitted for approval. Note that this does not prevent invalidated data from being loaded in the consolidation.

3.1.3.3. Reports

There are two control reports available to help insure that data is correct, prior to submission for consolidation.

BPF: Ax0_Input_ EPM Excel Add-In

Click on Validate Data

Choose the step for Check consistency w/ previous years closing balance first

After reviewing this report, choose the step for Run intercompany control report

Log into the model CONSOLIDATION Select the EPM menu

Select Open, and Open server input form folder Select the folder ACTUAL, then REPORTS

Select the appropriate control report

Select the appropriate context values: Version = Actual Time = xxxx.XX Scope

Select Refresh

3.1.4. Running Local Reports

Three Financial Statements are available at the local level, to help the user validate that data is correctly reported.

- Statement of Financial Position - Income Statement - Statement of Cash Flows (when using Flow detail)

BPF: Ax0_Input_ EPM Excel Add-In

Go to the step Run Local Reports Log on into the model CONSOLIDATION

Select the financial statement Select the EPM menu

Select Open, and Open server input form folder Select the folder ACTUAL, then REPORTS

Select the appropriate financial statement

SFP, IS, SCF

Select the relevant EPM context Entity Currency = consolidation currency Scope Time = xxxx.XX

Refresh

3.1.5. Approving Data Entry

The approval of data input is made through changing Work Status. Two types of users are entitled to set Work Status:

Local entry users, also known as performers. Managers, also known as reviewers of the BPF (Reviewer property of the Entity dimension) and

owners of the parent entity (Owner property of the Entity dimension), who validate data input.

Depending on their attributions, users will therefore have different roles according to the data entry process.

Submission

Once all controls are valid, the performer can submit data for approval to the manager by changing the Work Status of the particular Entity or parent Entity to Submitted.


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Note that once you have submitted data entry as a performer, you cannot undo the operation. No performer will be able to access data in write mode once an Entitys status reflects Submitted.

Procedure to submit data:

BPF: Ax0_Input_, Submit Data EPM Excel Add-In

Click on Submit Data Log on into the model CONSOLIDATION Select the EPM menu

Select Save Data menu / Change Work status

Select the correct data range: Version = Actual Entity(s) Time = xxxx.XX

Select new status = Submitted

Apply

Approval

The reviewer can approve data or reject it.

If the reviewer approves the data input submitted by the performer, he should change the Work Status from Submitted to Approved, which will lock data entry for all users. Then, he can complete the BPF.

If corrections are required, they can only be made by the performer. The reviewer selects the work status Rejected, and rejects the BPF to make data input available to the performer again. This is an iterative process. The modified data entry must once again go through the validation steps and be submitted to the reviewer/manager before being ultimately approved.

3.2. Manual Journal Entries

The second way to enter data is to post manual journal entries. In the Starter Kit, entering manual journal entries is considered a function for central end-users.

3.2.1. Procedure

BPF: Ax1_Consolidation_ BPC Web Client

Select step Manual Journal Entries Go to Consolidation Central Select Journals

New

3.2.2. Defining a Journal Entry Header

When you create a journal entry, all header fields should be filled out as follows for the entry being made:

- Version - Time - Entity - Currency - Scope - Audit Trail

The Description field is optional, but it is recommended to use this for easier identification of particular journals. In addition, you may choose from several other options for the particular journal entry:

- Balanced Journal - Reopen journal in next period - Auto reverse journal - Multiple headers (allowing multiple member choices for header dimensions) - Multiple values (allowing multiple values)


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3.2.3. Dimensions used in the Journal Entry Details

Each dimension must be populated when you create a journal entry. In particular, each journal entry row should specify the following dimensions:

- Account - Flow - Interco

If a Manual Journal Entry should impact both the account total and one or several group partners, one journal row must be defined to record the impact on I_NONE in addition to the journal row(s) recording the impact on the group partner(s).

3.3. Making Adjustments to Individual Accounts

This section outlines:

Corrections made to input data,

Adjustments booked at central site.

The manual adjustments described below are based on the following examples:

Processing differences for net income N-1

Correcting input data

Making fair value adjustments

3.3.1. Correcting Input Data

3.3.1.1. Processing Differences for Net Income N-1

After an Entitys results have been sent to the Group and used for the consolidation, corrections may need to be performed to the data. As a result, there may be differences between the data sent and the modified data. You can manage these differences in two ways during the next accounting period.

The recommended solution consists of taking these differences into account in the input forms or import files. The second solution consists of posting these differences in manual journal entries at central site. However, this second solution may create some inconsistency. This is because if the N-1 difference is not processed, this generates a variation flow F15 in net equity and this will prevent the data from being validated. For this reason, the second solution is not recommended and should be reserved for exceptional cases.

Regardless of the solution, local and consolidated data will balance only during period N+1. At the closing of N, even if the amount of retained earnings is the same, the calculation of the net income (flow F10) will differ between company and consolidated accounts (see example below).

Recommended Solution: Input forms/Import files

Existing differences in N-1 net income can be processed as follows in the input forms:

The first solution consists in integrating the difference between the provisional N-1 net income and the final N-1 net income in the net income for the period. In this way, the consolidation department does not need to post any manual journal entry. However, it creates a discrepancy between local accounting data and the data entered on net income (flow F10) in the input form. In other words, the local results and the results reported to consolidation will be different.

The second solution consists of posting this difference in transfer flow F50 in order to impact both reserves asset and liability items affected by the last journal entries of period N-1. In this way, local data and the data entered in input forms will both balance at closing. However, this solution requires the consolidation department to book this difference by manual journal entry.


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Example: corrections made to Revenues

Accounts Input data 31/12/N-1

(1)

Final accounts

(2)

Difference

(2) (1)

Assets

A2210 Trade receivables, Gross 1 000 1 100 + 100

Liabilities

E1610 Retained earnings / F10 600 660 + 60

L2410 Current income tax liabilities 400 440 + 40

Profit and Loss

P1110 Revenues 1 000 1 100 + 100

P5010 Income tax expense - 400 - 440 - 40

At period N closing, we assume that:

- No income has been entered during the period. - The net income for N-1 was allocated to retained earnings (scenario 1) or distributed (scenario 2). - All receivables and debts have been settled.

Booking the Difference in Net Income (Solution 1)

Input forms 31/12/N (scenario 1 no distribution)

The data entered for period N must contain the net income from N-1 that is not taken into account in Group income. The closing balance entered in the workbook Balance is shown below:

Accounts Local 31/12/N Input data 31/12/N

Assets

A2610 Cash on hand 660 660 = receivables (1100) debts (440)

Liabilities

E1610 Retained earnings 660 660

Profit and Loss

P1110 Revenues 0 100

P5010 Income tax expense 0 - 40

Enter data in schedule Net Equity to show variations in net equity:

Accounts Code F00 F99 F06 F10 F20 F30 F40 F55 Spec. Control

Retained earnings E1610 600 660 60

Net equity 600 660 60

Input forms 31/12/N (scenario 2 distribution of net income)

The closing balance entered in workbook Balance is shown below:

Accounts Local 31/12/N Input data 31/12/N

Liabilities

E1610 Retained earnings 0 0

Profit and Loss

P1110 Revenues 0 100

P5010 Income tax expense 0 - 40


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Accounts Code F00 F99 F06 F10 F20 F30 F40 F55 Spec. Control

Retained earnings E1610 600 0 -660 60

Net equity 600 0 -660 60

Further remarks

When the difference between final net income and local income is spread over small sums in a large number of accounts in the income statement, the Group may authorize its subsidiaries to enter the difference in other operating income/expense accounts.

Processing the Difference in Reclassification Flow F50 (Solution 2)

Input forms 31/12/N (scenario 1 no distribution)

The closing balance shows the company accounts. The impact from the last journal entries for period N-1 is booked in flow F50.


Accounts Code F00 F99 F06 F10 F20 F30 F40 F55 F50 Control

Retained earnings E1610 600 660 60

Net equity 600 660 60

Enter data in flow F50 in Asset and Liability account using Input Form Balance Sheet by Flow to show the impact of the reclassification:

Accounts Code F05 F50

Trade receivables, Gross A2210 100

Cash on hand A2610

Assets 100

Retained earnings E1610 60

Current income tax liabilities

L2410 40

Equity and liabilities 100

Input forms 31/12/N (scenario 2 distribution of net income)

Enter data in flow F50 in Asset and Liability account using Input Form Balance Sheet by Flow to show variations in net equity:

Accounts Code F00 F99 F06 F10 F20 F30 F40 F55 F50 Control

Retained earnings E1610 600 0 -660 60

Net equity 600 0 -660 60


34

Enter data in flow F50 in Asset and Liability account using Input Form Balance Sheet by Flow to show the impact of the reclassification:

Accounts Code F05 F50

Trade receivables, Gross A2210 100

Cash on hand A2610

Assets 100

Retained earnings E1610 60

Current income tax liabilities L2410 40

Equity and liabilities 100

Journal entry to be posted at central site

The subsidiary should provide the consolidation department with

bpcnw10 ifrs operating sp5

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