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Liquidity Planning Starter KitA New Weapon in the Liquidity Management Fight

Marc MertensPartnerDeloitte Consulting

© 2011 SAP AG. All rights reserved. 1

Why Improve Liquidity Planning?

I went to the ATM this morning and it said “insufficient funds.”

I’m wondering, is it them or me …


Learning Points

Instead of starting with an empty planning and reporting application shell, you can bring the starter kit for liquidity planning into the process and use the pre-built components to enable a faster implementation.

Learn how the SAP BusinessObjects Planning and Consolidation application, version for the SAP NetWeaver® technology platform, can help you quickly automate your liquidity forecasts and improve their accuracy .

The starter kit for liquidity planning, available for SAP BusinessObjects as a pre-configuration on top of SAP BusinessObjects Planning and Consolidation, helps you align liquidity-planning goals with strategic busin ess objectives to find the best use for your cash .


Agenda

1. Understanding liquidity planning as a top priority for treasurers

2. Reviewing the starter kit for liquidity planning

� What is a starter kit?

� Presenting the starter kit’s functional scope

� What SAP solutions is the starter kit a pre-configuration for?

� Walking through the liquidity planning and forecasting scenario enabled by the starter kit

3. Viewing a demo

4. Wrap-up


Why Is Liquidity Planning So Important Today?

The need to gain greater financial visibility and control pushed cash flow to the forefront of corporate strategy.”

Nasreen Quibria, Aberdeen Group. Source: Cash Management - What is best practice? FSN.CO.UK.April 26, 2010

www.fsn.co.uk/channel_enterprise_financials/cash_management_what_is_best_practice

“

• Tighter credit risk management of banking sector means more detailed cashflow information requirements

• Higher funding costs and pressure on working capital

• Economic downturn and pressure on gross margins have increased added value of effective hedging


Top Priorities for TreasurersLiquidity and Cash Forecasting

Source: 2009 global survey of treasury professionals conducted by Deloitte

Top Improvement PrioritiesTreasury Technology

Treasury Priorities

Liquidity Management

ImplementingNew Structures

Liquidity Forecasting

FX Risk Management

Technology

SEPA

• The major uncertainties in the economic outlook mean higher funding costsand uncertain revenues

• Current cash forecasting features of Treasury IT systems ar e considered insufficient


Agenda







3. Viewing a demo

4. Wrap-up


What Is a Starter Kit?

Starter kits facilitate and accelerate implementati on projects:

• Starter kits are pre-configurations : prebuilt components in a starter kit enable a faster implementation that supports best practices for better results

• SAP and Deloitte’s Treasury Management and Responsive Finance Team collaborated on a starter kit as a “fast track” to improved liquidity planning

• Some services are required to tailor the solution to your organization's specific needs

• Deloitte is the preferred implementation/services p artner for the starter kit for liquidity planning

The starter kit for liquidity planning does not have to be purchased separately. SAP is providing the starter kit at no additional license cost to customers that already own SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver and SAP BusinessObjects Dashboards


Agenda







3. Viewing a demo

4. Wrap-up


Starter Kit for Liquidity PlanningFunctional Scope Addressing Typical Pain-Points in Liquidity Planning

• Jump-starts the implementation of a liquidity planning solution

• Improves liquidity planning (forecast) accuracy

• Reduces manual work by automating key calculations with embedded financial intelligence

• Delivers greater visibility into key working capital metrics

• Works with your existing ERP systems

• Delivers holistic coverage :

o Import direct and indirect cash flow information from any source systems

o Modify rules and rates for different scenarios

o Analyze liquidity scenarios in different time aggregations

o Evaluate incoming and outgoing cash and net income


Starter Kit for Liquidity PlanningKey Capabilities

• Automatically converts SAP BusinessObjects Planning and Consolidation planning data into cash flow data

• Calculates mid- to long-term forecasts (up to 2 years) by integrating committed transactions with forecasted financial da ta

• Isolates impact of intercompany cash flows on a group level

• Enables simulation and sensitivity analysis on source data and calculation rules

• Directly integrates with SAP NetWeaver enabling data quality checks and remediation procedures


Agenda





� What SAP solutions is the starter kit a pre-configu ration for?


3. Viewing a demo

4. Wrap-up


Business Analytics Solutions from SAPAchieve Remarkable Results

Strategy Management

Planning, Budgeting, and

Forecasting

Profitability and Cost Management

Financial Consolidation

Enterprise Performance Management

Disclosure Management

Enterprise Data Warehousing

Data Mart Solutions

High-performance Analytic Solutions

Data Warehousing

Reporting and Analysis

Dashboards and Visualization

Data Exploration Mobile

BI Platform

Business Intelligence

Enterprise GRC Access Risk Management

Global Trade Services

Continuous Transaction Monitoring

Governance, Risk,and Compliance

Data Services

Master Data Management

Event Processing

Content Management

Enterprise Information Management

Information Governance

Analytic ApplicationsBy LoB

Service, Sales, and Marketing

Procurement

Supply Chain

Finance

Sustainability

IT, HR, and more…

By IndustryFinancial Services

Public Sector and Healthcare

Manufacturing

Consumer Products

Retail and Telco

Utilities and more….


SAP BusinessObjects Planning and Consolidation Version for SAP NetWeaver

Familiar and easy to use• User owned and managed. Enables rapid adoption by leveraging

native Microsoft Office tools (e.g., Excel).

• Consolidation business rules are configured by finance users

Process-centric• Customizable business process flows ensure consistency and

minimize training

• Enforces policies and procedures — track process status and completion

• Step-by-step guidance for users

Unified planning and consolidation• Single, integrated application reduces maintenance, improves

data integrity

• Simplified deployment while enabling flexible consolidation and planning functions

• Optimized for SAP and non-SAP environments

Streamlined consolidation, planning, budgeting, and forecastingStreamlined consolidation, planning, budgeting, and forecasting


Business Analytics Solutions from SAPAchieve Remarkable Results

Strategy Management

Planning, Budgeting, and

Forecasting

Profitability and Cost Management

Financial Consolidation

Enterprise Performance Management

Disclosure Management

Enterprise Data Warehousing

Data Mart Solutions

High-performance Analytic Solutions

Data Warehousing

Reporting and Analysis

Dashboards and Visualization

Data Exploration Mobile

BI Platform

Business Intelligence

Enterprise GRC Access Risk Management

Global Trade Services

Continuous Transaction Monitoring

Governance, Risk,and Compliance

Data Services

Master Data Management

Event Processing

Content Management

Enterprise Information Management

Information Governance

Analytic ApplicationsBy LoB

Service, Sales, and Marketing

Procurement

Supply Chain

Finance

Sustainability

IT, HR, and more…

By IndustryFinancial Services

Public Sector and Healthcare

Manufacturing

Consumer Products

Retail and Telco

Utilities and more….


SAP BusinessObjects Dashboards(Ex-Xcelsius®)

Consume attractive, personalized dashboards online or offline•Access to personalized, Flash-based dashboards

•Secure visualizations anywhere – portal, reports, PDF, Office documents

Empower business users with interactive information •Powerful “what-if” analysis with sliders and other controls

•Ability to drill-down into details

•Pre-built components, skins, maps, charts, gauges, and selectors

Create Interactive Analytics and DashboardsCreate Interactive Analytics and Dashboards


Key Differences: SAP ERP Financials Treasury Apps a nd SAP BusinessObjects Planning and Consolidation

SAP ERP Financials – Treasury Applications:

• SAP Cash and Liquidity Management o Helps you monitor and manage cash flow and liquidity

o Updates cash balances in real-time directly from receivables and payables in SAP ERP

• SAP Treasury and Risk Management o Models risk scenarios and executes mitigation strategies

o Initiates, tracks, and accounts for investments and borrowing

SAP BusinessObjects Planning and Consolidation – sta rter kit for liquidity planning:

• Flexible cash flow forecasting/reporting

• Scenario planning/what-if analysis to simulate the impact of different cash flow strategies


Starter Kit for Liquidity PlanningPrebuilt Components That Can Be Adapted to Your Organization’s Needs

• Templates and functions to import aggregated liquidity data from SAP NetWeaver BW to SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver

• Templates to maintain cash calculation rules and currency conversion rates

• Automated liquidity calculation and currency translation functions

• Templates for reporting and manual adjustments , simulating liquidity strategies, and displaying daily liquidity forecasts with monthly and quarterly aggregation

• Dashboards * that provide insight into working capital metrics and incoming and outgoing cash, with navigation and drill-down capabilities, as well as the ability to make manual adjustments

*Created with SAP BusinessObjects Dashboards software licensed separately by SAP


Starter Kit for Liquidity PlanningPrebuilt Components That Can Be Adapted to Your Organization’s Needs (cont.)

From a technical standpoint, the starter kit, which can be tailored to your organization’s specific needs, contains:

•A transport file for SAP NetWeaver Business Warehou se – to be imported via the “stms”transaction (SAP transport request) containing:

o BW objects incl. InfoProvider, InfoObjects, Update Rules, InfoPackage

•A Backup and Restore file for SAP BusinessObjects P lanning and Consolidation to be imported via the “ujbr” transaction containing:

o AppSet for Liquidity Planning, BW objects in the Planning and Consolidation namespace (incl. InfoProvider, etc.), file folder for appset, examples of transaction data and master data, Excel Workbook with cash flow calculation logic

•A pre-defined SAP BusinessObjects Dashboards analyt ical dashboard (in .pdf, .ppt and .xlf formats) to be connected with the data available in Planning and Consolidation for read/write access

•Technical documentation and end-user documentation

•An example of an upload file (a .csv flat file) for integration of liquidity data from other sources


Starter Kit for Liquidity PlanningTechnical Process Diagram

SAP BusinessObjects Planning and Consolidation,version for SAP NetWeaver

SAP BusinessObjects Planning and Consolidation,version for SAP NetWeaver

SAP BusinessObjects Planning and ConsolidationExcel and Web interfaces

SAP BusinessObjects Planning and ConsolidationExcel and Web interfaces

Source Systems

Maintain data and run planning functions

Store data in central database

Report on liquidityInformation with different tools

Harmonization of source data in SAP NetWeaver BW EDWHarmonization of source data in SAP NetWeaver BW EDW

SAP ERPSAP ERP DatabaseDatabase …… ….….Flat FileFlat File

Drill-through to SAP BEx Report

SAP BusinessObjects Dashboards

SAP BusinessObjects Planning and Consolidation Excel Interface


Agenda






� Walking through the liquidity planning and forecast ing scenario enabled by the starter kit

3. Viewing a demo

4. Wrap-up


Cash Flow

Currency Rates

Change Parameters

(optional)

RunCash FlowCalculation

END

Cash FlowCalculation Rules (e.g.,

DSO calculation)

Projected Currency

Conversion Rates

BEGIN

RunCurrency

Translation

Generate Liquidity Planning Report

Simulate Different

Scenarios

Analyze Results and

Make Required Top-Down

Adjustments

Upload latest Liquidity

Information (e.g., sales forecast, salary info, sales orders) from any Source

system

Starter Kit for Liquidity PlanningLiquidity Planning Process


System Independent

Inputs

CAPEXCAPEX

SalesSales

HRHR

PO/APPO/AP

SO/ARSO/AR

FinancialsFinancials

Tra

nsac

tion

Dat

a F

orec

ast D

ata

Aggregation in SAP NetWeaver BW

Analyze/ Remediate/ Aggregate

Data analysis of latest liquidity information

Define calculation rules

Maintain calculation rules

Define and Maintain

Calculation Rules

Upload currency rates for future time frame

Calculate Cash Flows

Calculate cash flow

Run currency translation

Simulate in different versions and do

manual adaptions

Report

SAP BusinessObjects Planning and

Consolidation Excel interface

Dashboards embedded in SAP BusinessObjects

Planning and Consolidation

Starter Kit for Liquidity PlanningScenario Diagram


System Independent

Inputs

CAPEXCAPEX

SalesSales

HRHR

PO/APPO/AP

SO/ARSO/AR

FinancialsFinancials

Tra

nsac

tion

Dat

a F

orec

ast D

ata

Aggregation in SAP NetWeaver BW

Analyze/ Remediate/ Aggregate

Data analysis of latest liquidity information

Define calculation rules

Maintain calculation rules

Define and Maintain

Calculation Rules

Upload currency rates for future time frame

Calculate Cash Flows

Calculate cash flow

Run currency translation

Simulate in different versions and do

manual adaptions

Report

SAP BusinessObjects Planning and

Consolidation Excel interface

Dashboards embedded in SAP BusinessObjects

Planning and Consolidation

Starter Kit for Liquidity PlanningScenario Diagram – Upload and Harmonize Liquidity Data


Demo


Agenda







3. Viewing a demo

4. Wrap-up


Input Templates

• Import aggregated liquidity data from the SAP NetWeaver BW EDW (captureany liquidity relevant information from any source system)

• Import aggregated data into the Excel workbook in SAP BusinessObjects Planning and Consolidation

Embedded Intelligence

• Utilize embedded liquidity calculations and currency translation functions

• Leverage dynamic time frame views of cash flows (daily, monthly andquarterly views available)

Reports

• Drill-through to source systems (e.g., BEx report, ERP or any Web applicationthat can be accessed via url)

• Drill-down/up to daily, monthly and quarterly views in out-of-the-box liquidity planning report

Dashboards• Visualize working capital metrics, cash inflow/outflows and other key

performance indicators in a highly-interactive, graphical environment

• Make manual adjustments directly within the dashboard

Starter Kit for Liquidity PlanningFunctional Summary


Resources

• Dr. Karol Bliznak, “What You Need to Know about the Starter Kit for Liquidity Planning for SAP BusinessObjects Planning and Consolidation, version for SAP NetWeaver” (Financials Expert, February 2011): www.financialsexpertonline.com/article.cfm?id=5667

• Press release on the starter kit for liquidity planning: www.sap.com/press.epx?pressid=14306

• SAP and Deloitte Webcast recording: “Building Blocks of Best Practices for Liquidity Planning: How to Take Control of Your Cash Flow” (November, 2010) on cfo.com: www.cfo.com/webcasts/index.cfm/l_eventarchive?webcast=14530437

• YouTube: www.youtube.com/user/SAPBPC#p/u/0/NMDxzSY_U7k

• SAP and Deloitte – the joint Responsive Finance initiative: www.deloitte.com/view/en_US/us/Services/consulting/technology-consulting/sap-consulting/887d8968b2ab6210VgnVCM100000ba42f00aRCRD.htm

• More info on SAP BusinessObjects Planning and Consolidation: www.sap.com/sapbusinessobjects/planning_and_consolidation

• To learn more about SAP BusinessObjects enterprise performance management (EPM) products in general, go to: www.sap.com/solutions/performancemanagement/


7 Key Points to Take Home

• SAP and Deloitte collaborated on the starter kit fo r liquidity planning .

• Deloitte is the preferred implementation/services p artner for the starter kit for liquidity planning . Deloitte and SAP consultants have access to the starter kit and provide implementation services to tailor it to your organization’s specific needs.

• The starter kit as a pre-configuration is available for the SAP BusinessObjects Planning and Consolidation application, version for the SAP NetWeaver technology platform and for SAP BusinessObjects Dashboards.

• With the starter kit, you can:

Access detailed cash-flow information

Model the impact of different company and currency scenarios on cash flows

And prepare executive reports based on those scenarios


7 Key Points to Take Home (cont.)

• The kit supports the automatic import of data from the SAP ERP Financials solution and any other enterprise resource planning (ERP) system. You can import:

Direct transaction data (such as information related to accounts payable, accounts receivable, or financials)

As well as indirect forecast data (such as information related to capital expenditures, sales, or human resources)

• Using an intuitive interface , you can analyze:

Cash inflows (such as committed sales, pending accounts, or receivables)

As well as cash outflows (such as account payables and tax payables)

• You can make manual calculation adjustments on the fly and run different scenarios to see the potential effects of changes to specific liquidity variables.

Your Turn: Questions?

Contact information:

Marc [email protected]

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