sap business objects financial consolidation (mar 17th 2010)

SAP BusinessObjects Financial Consolidation

Measuring your companies performace intoday’s new reality

For SAP BusinessObjects Financial Consolidation, Financial InformationManagement and Intercompany

SUG MENA, Bahrain, March 17th 2010

Thomas Benaroya

Entreprise Performance Managment [email protected]

mailto:[email protected]

© SAP 2009 /

What is today’s new reality?

We are facing a new economic reality (source IMF)

We are facing an increased regulatory realityExternal Reporting for Auditors, Banking authorities and other stakeholdersSOX compliancyIFRS / US GAAPSolvency rules for Financial institutions

Middle East Capitalistic RealityFast growing (6-8% Estimated growth for 2010)Joint Venture Capitalistic based structureCross ownerships

© SAP 2009 /

The CFO’s challenges in this new reality

Lack of trust indata and reporting

Lengthy financial performancemanagement cycles

Lack of financial andoperational predictability

Lack of alignmentbetween strategy andday-to-day operations

Disparate data intools from multiple

vendors

Lackof accountability

Coping with a compliancemarathon

Outperformcompetitors’ costsand margins

Mitigate risk

Retaining the rightfinance talent

How to be thestrategic advisor

to the business

© SAP 2009 /

What is a Consolidation and ReportingSolution for SAP

Lack of trust in data and reporting

Lengthy financial performance managementcycles

Lack of financial and operational predictability

Lack of alignment b/w strategy and dailyoperations

Disparate data in tools from multiplevendors

Lack of accountability

Coping with a compliance marathon

Outperform competitors’ costs and margins

Mitigate risk

Retaining the right finance talent

How to be the strategic advisor to the business

Audit Trial with rollback to ledger account

Reducing close time without killing quality: BFC’spriority

BFC designed for both Internal & External reporting,Actuals and Budget

Seats in between the ERP, Strategy Management and BI

Financial Information Management (ETL)

Workflow with Controls and Publication Process

SOX compliant, IFRS and US GAAP Starter kits

XBRL publishing is a component of BFC

Extensive Reporting capabilities (in-built or withBI)

BFC is a Self service application

Fastest solution: Stop Producing, start analyzing

© SAP 2009 /

What is a Consolidation with BFC

Consolidatedfigures

Controlledand

Validated Integratedwith Legacy

System(ETL)

Leger drillback

posibility

For InternalReporting

For ExternalReporting

Management &StatutoryActuals

Forecasts,Budget

Reporting

Consolidationby Business

segment

Consolidationby

Goegraphicalarea

By Product,Customer,Project…

(Free)CashFlow

DSI /DSO

WorkingCap

Opex /Capex

byProject

Headcount

AgingStatements

Equitystudy

TaxproofAcquisitions

/ Disposals

Stepconsolidations

BPC / PCM /SSM

Integration Business BIIntegration

Variances, as of %

…

Intercompanies

Enterprise Performance ManagementA best in class suite by SAP BusinessObjects

Business PlanningFinancial Consolidation& Extended Analytics

Profitability & CostManagement Strategy Management

Product Enhancements Product Enhancements Product Enhancements Product Enhancements

Product Enhancements

Intercompany

Costs & CapacityActual / Plan

KPIs & Initiatives

Process Control Risk Management

Starter KitsIFRS 2009 - Process Controls - XBRL

Crystal ReportsVoyager XcelsiusWeb Intelligence

InfoView

Financial Information Management

SAPNetWeaver

BI

Chart of AccountsProfit & Cost CentersDrivers

BusinessSuite Non-SAP sources and platforms

© SAP 2009 /

SAP® BusinessObjects™ PortfolioEnabling Closed-Loop Strategy to Execution

StrategyManagement

Planning,Budgeting, and

Forecasting

Profitability andCost Management Consolidation

Spend andSupply Chain

Enterprise PerformanceManagement

Reporting InteractiveAnalysis

Dashboards andVisualization

DataExploration

AdvancedAnalytics

Business Intelligence

RiskManagement

AccessControl

Process Control Global TradeServices

Governance, Risk,and Compliance

DataIntegration

Data QualityManagement

Master DataManagement

MetadataManagement

Enterprise InformationManagement

Environment,Health, and Safety

Management

SustainabilityPerformanceManagement

© SAP 2009 /

© SAP 2009 /

Agenda

1. Case study

2. SAP BusinessObjects Financial Consolidation and the problem it solves

3. Benefits for both SAP and Non SAP ERP customers

4. Best Practices for accelerated close, increased quality and reducedbottlenecks

5. Implementation effort

6. Live Product Overview

© SAP 2009 /

Agenda

1. Case study



4. Best Practices for accelerated close, increased quality and reduced bottlenecks



MAF Hypermarkets LLC – BusinessObjects:Financial Consolidation

Challenges and Opportunities

Needed a solution for faster financialclose and consolidation whichcomplies to International Standards

Flexible and scalable to diversifiedneeds of corporate management

Single source of Business ProcessManagement data which caters forfrequent changing rolling forecasts.

Objectives

Replace existing standaloneconsolidation and reporting tool

Comply with rapid expansion andgrowth of the company

Capitalize on unique centralreporting platform for integratedreporting (Actual, Budget, forecast)

Implementation Highlights

Phase 1 - Migration from standaloneconsolidation system (2mths)

Phase 2 - Phased revamping Chartof Account, upgrade/automation ofreports, enhance financialconsolidation processes (18mths)

QUICK FACTS

MAF Hypermarkets LLCLocation: Dubai, United Arab EmiratesIndustry: RetailProducts and services: HypermarketEmployees: 10,000 +www.carrefourme.comSAP® solutions and services:BusinessObjects Financial Consolidation,EPMImplementation partner: SAP Field Services

Phase 3 - Deployment of BFC datain Business Objects Mart for ad-hocanalysis (4mths)

Why SAP

Simplicity of architecture for ease ofimplementation and roll out

SAP’s professional support for asuccessful implementation andshared risks

Correct methodology

Benefits

Timely financial closing and multiplelevel of consolidation, assisting in"Fast Close“

Fully integrated with Finance ERPand elimination of manual needs fordata capturing

Provide reporting and analysispower to all decision makers

Save 2000+ man-hours per monthfor financial close, consolidation andreporting process

“SAP Finance Consolidation is theperfect financial tool for our

organization and helped us toperform our financial close.”

Shahrukh DasturBusiness Analytics ManagerMajid Al Futtaim Retail LLC

(YY/

MM

)

S1

S2

S3

S4

S5

http://www.carrefourme.com/

S1 What were the business drivers to take action in selecting/implementing a new solution? Examples: M&A activity, legacy solutions nolonger supporting business needs, lack of integration, high support costs, no visibility into consistent data across the enterprise, rapidgrowth plans, competitive pressures, etc.I812039, 11/19/2009

S2 What are the business and technology goals of the project? Examples: moving to a common enterprise platform, supporting the needsof a line of business, reducing costs, better decision-making through better information, standardization of business processes, etc.I812039, 11/19/2009

S3 Scope of rollout, implementation approach, timeframe, number of sites/users, on-time/on-budget, IT staff required toimplement/support?I812039, 11/19/2009

S4 What were the compelling reasons for selecting SAP? Examples include clarity of platform/product direction, competitive evaluation vs.Oracle or other competitors, previous successful SAP implementations, industry focus, industry/solution references, partner network,etc.I812039, 11/19/2009

S5 What are the tangible benefits received or expected from the SAP implementation? Please be as specific as possible and includepublicly discloseable metrics where possibleI812039, 11/19/2009

QUICK FACTS

NISSAN BENEFITS FROM INCREASED SPEED,QUALITY AND RELIABILITY

© SAP 2009 / Page 11

“With Financial Consolidations, wehave been able to move from a limitedbi-monthly financial close of 33 daysto a ten day monthly full closeprocess. The outcome is a significantimprovement in the quality of datawhich in turn has increased ourconfidence and understanding ofNissan’s performance.”

Alain Pierre RaynaudGlobal Controller

Location: Tokyo, JapanIndustry: AutomotiveProducts and Services: Internationalautomotive manufacturerRevenue: Global consolidated netrevenues of 10.49 trillion yen (FY06);Annual sales of 3.48 million units (FY06)Employees: over 130,000 people, exc.ChinaWeb Site: www.nissan-global.comSAP Solutions and Services: FinancialConsolidationListed on the Tokyo Stock Exchange(“7201”) and NASDAQ (“NSANY”)

Challenges and OpportunitiesLow performance in externaldisclosures: financial results producedonly bi-monthly, 33 days from periodend to release resultsLack of trust in the numbers due tolimited control over source data,little traceability of processed data /reliance on spreadsheets and manualactions, no inter-companyreconciliation processLimited central monitoring ofperformance: no time for analysis,limited vision on overseas operations

ObjectivesSpeed reporting processesCreate greater trust and visibility intofinancialsFocus on understanding the business

Implementation HighlightsImplementation covered 240operating unitsGlobal SAP customer

Why SAPConsolidation, reconciliation andmanagement reportingMulti-dimensional capabilities toanalyze data by region, by function,by product, etc.

BenefitsMore time for analysis thanks to betterperformance for financials:Publish financial reports within10 days after period endProduce monthly Profit and Loss,Balance Sheet and Cash flowstatements within 30 minutesImproved management processesresulting in:

Increase car sales by one million unitsAchieve a gross profit of above 8%Reduce the interest liabilities to zeroConsiderable time and cost savings

http://www.nissan-global.com/

SOME REFERENCES

© SAP AG 2009. All rights reserved. / Page 12

Top 10 SAP BusinessObjects Financial Consolidation customers by revenue:Shell, Total, AXA, Arcelor Mittal, Aviva, Nestlé, PSA Peugeot Citroën, Cargill, Nissan, Renault

© SAP 2009 / Page 13

Agenda

1. Case study






© SAP 2009 / Page 14

The essential ingredients offinancial excellence

Financial excellenceFinancial excellence is achieved whenresources, people, and technology are combinedto optimize and streamline processes, decreaseoperating costs, manage business performance,and avoid certain risks

Gaining efficiency in FinanceOptimize working capitalDriving strategy and growthManaging risk and compliance

Financial closeA streamlined, efficient, and high-quality financialclose is a key ingredient of financial excellenceInitial wave during the late 1990’sNow re-emerging due to close times slowing inrecent years

Processes were not industrializedUnderestimated the impact of SOX

Inefficient processes drive up costs, contribute toerrors, and increase time needed to close books

Local close cycleManual journal entriesManual reconciliation of datafrom disparate systemsEmail and spreadsheet statusreports and communications

ImplicationsTime wasted checking errors andtracking versionsMissed deadlinesWrong sequence of closing tasksLack of clear, streamlinedcommunication

Intercompanyreconciliation

Manual reconciliation andeliminationManual phone calls and emails tocorrect mismatches

ImplicationsTime consumingError prone

ImplicationsData validation is labor-intensiveand time consumingLack of clear ownership andresponsibilitiesInefficient communications

Group closeLack of automationHigh volumes of late adjustmentsPerformance of consolidation applicationsManual eliminations, poor consolidation logicCFO has limited visibility into full close process

ImplicationsHigh costs for financial operations/complianceInability to ensure on-time closeLack of controls and audit trails

External financialreporting

Need to comply with newreporting formats (e.g.XBRL)Long audit sign-offperiodsIncorrect data used to filereports

ImplicationsIncreased audit costsLack of audit trail fromsource to digitaldisclosureOver-dependence onexternal publishers

Financialmanagementreview

Difficult to certifycorrectness of datafrom multiple originsData may containundetected errorsTime consuming manualprocesses

ImplicationsDifficult to respond to ad-hoc requests for analysisand other value addedactivitiesRisk sign-off on incorrectdataLacks reliability andquality for managementdecision making

1

Controlling

Internal Audit

Consolidations

2

6

5 4 3 Data submission for group closeManual processes to transfer data fromheterogeneous GL systems;no automated validation or controlsNo audit trailSpreadsheets used to transfer local to groupchart of accountsCorporate finance must validate transferreddata for accuracyError reconciliation with subsidiary via phoneand email

© SAP 2009 / Page 15

© SAP AG 2009. All rights reserved. / Page 16© SAP 2008 / Page 16

Most Common Requirements SAP Fact and Figures1. Database, Actual, Budget, 5 Year Plan,Historical and Current Reporting?

BFC provides one single platform for Actual / Forecast / Budget / Plan / TaxProof with integrated Audit TrialSingle Version of the Truth

2. Consolidation,Consolidation by Operating Field, by Division, byGeographical area,With breakdown by Channel, Customer, productline…

BFC provides native consolidation capabilities to comply with IAS14 andSegment Reporting• Consolidation by Division with Intra Division eliminations and GroupEliminations (example)• Consolidation by Country with Intra Country eliminations and GroupEliminations

3. Reporting,• Financial, Income Statement, Balance Sheet,Cash Flow, Statement of Change in Equity• Operatoinal , KPIs by Project and Activity• HR

IFRS Starter kit provides: Complete data collection Reports that provide :Financial Statements including Off Balance sheet commitments, sample

KPI’s, HR reports and ageing statementsCan support up to 40 different dimensions (Activity, Customers…)

4. Analysis,• Butterfly Reports / Actual/Budget/ForecastComparative• Interaction with Excel,• Dashboarding

BFC includes:- Static Web and Windows Reports- BFC Extended Analytics Cubes and Star Schemas for Dynamic analysis anddrill through and drill downs- Excel Links Add-in for pivot tables and fast Excel retrieve for business users

5. Flexibility of interface with other systems,no restriction with upstream systems

BFC is product agnostics and comes with an Integrated ETL: DATALINK (ForBusiness Users not IT) and FIM

6. Forex Translation, Multi currency conversion The IFRS starter kit automatizes:• Translation of Income Statement, Balance sheet, Investments and Equity• CTA calculations

7. Validation Reports IFRS starter kit offers 70 process blocking controls, and over 200 AnnualReport Statements, Validation documents, Ledgers, Trial balances andConsolidation Analysis documents

8. Centralized Closing Process BFC is a Web platform with a central database

9. Financial Ratios & KPIs DSI / DSO CAPEX by Project…will be covered by BFC

© SAP 2009 / Page 17

Drivers for a fast high-quality financial close

Internal and external stakeholdersTouch points in an organization wherea fast-close project can have impact

InternalExecutive managementDepartmental and business unitaccounting teamsBusiness analysts

ExternalAuditorsInvestorsMarket analysts

“The ability to prepare trustedfinancial statements in a timelymanner is not only a reflectionon the strength of a company’sfinancial reporting and controlsystems, but also ensuresfinance professionals cancommunicate the rightinformation to key stakeholdersat the right time.”

Ashley DollingDirector of Accounting, Rexam PLC.

“

© SAP 2009 / Page 18

Benefits Derived from Cycle Time Reduction

Drivers for a fast high-quality financial close

The benefits of a fast close

Improved control systems andprocesses at lower cost

Greater quality and greater efficiency

Faster access to financial informationfor decision making

More time for value add financialanalysis

Ability to respond to managementrequests and support key initiatives

Marketing tool

Work-life balance for accounting

Source: BusinessObjects Fast Close Survey. BPM Magazine. May 2006

Redeployment of staff and resources towards morevalue added activitiesAbility to meet regulators deadlinesI do not see any value in cycle time reductionBe able to work fewer hours, less late nightsand weekendsCost reduction

62%

7%

8%

13%

10%

© SAP 2009 / Page 19

Agenda

1. Case study






© SAP 2009 / Page 20

SpeedUnrivalled single and parallel processing speedSimultaneous legal and management reportingviewsPerformance without compromise on audit trail

Power and agilitySuperior dimensionality and extensible datamodelFinancial intelligence for faster, more flexiblereportingSelf-service user-oriented analysis

Compliance, trust, and reliabilityPowerful connectivity, mapping, and loadingIntelligent controls and validationsFaster legal compliance

SAP BusinessObjects Financial Consolidation

Eliminate Bottlenecks for a Faster Close

© SAP 2009 / Page 21

Fina

ncia

lC

ompl

ianc

eTr

uste

dFo

unda

tion

Pow

er a

ndA

gilit

ySp

eed

Monitor and Analyze

Processing Speed Simultaneous Legal and ManagementReporting Views

No Compromise on Audit Trail

Dimensionality and Extensible Data Model Financial Intelligence Self-service user-oriented

Controls and Validations Powerful connectivity, mapping, and loading Faster Legal Compliance via Starter Kits

Open Architecture Global Customer BaseIT StandardsLeverage BI Platform

© SAP 2009 / Page 22

Close faster

Make financial information availablemore quickly to all stakeholders

Improve decision-making andmarket visibility

Open and standards-based

Leverages $ million investments madeby Oracle and Microsoft in their RDBMS

All consolidations run in database engine

Unique parallel processing capabilities

Incremental consolidations

Optimized hardware infrastructure costs

Unrivalled single and parallel processing speed - leverages RDBMS investment

Speed

© SAP 2009 / Page 23

Record breaking results - 3rd partybenchmark*

Supported 1,500 active concurrent userconnections with one statutory consolidationrunning in loops

12 consolidations running in parallel with500 simultaneous users performing aselection of tasks in a single application

Average response times measured on 100user actions was < 3 seconds

Proven ability to scale

Unrivalled single and parallel processing speed

Speed

Seconds

0

10

20

30

40

50

60

70

80

90

100

030

060

090

012

0015

0018

0021

0024

0027

0030

0033

0036

0039

0042

0045

0048

0051

0054

0057

0060

0063

0066

0069

0072

0075

0078

0081

0084

0087

0090

0093

0096

0099

0010

20010

50010

800

% C

PU

bl460C-9 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]bl460C-10 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]bl460c-11 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]dl380g4-10 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]dl380g4-12 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]dl380g4-14 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]dl380g4-19 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]

dl380g4-20 - Processor % Processor Time\_Total [ Magnitude 1000users 19server(s) 3webserver(s) IIS-6 SQL-Server-2005 SP1 (Xeon - 4 CPU -numa 3+1 / 8 conso) ]

% CPU by# users:

250, 500,1000, 1500

* Benchmarking tests performed by Business Objects(Cartesis) in partnership with HP, Microsoft andCompuware at a Microsoft Technology Center usingMicrosoft SQL Server 2005 database, HP serverhardware, and leveraging Compuware’s QACentrePerformance Edition solution to simulate, through real lifeusage scenarios and user profiles the equivalent of 6-months of actual reporting cycles involving more than14,000 data submissions and 160,000 input schedules.Results published in January 2007.

© SAP 2009 / Page 24

Speed

Single task consolidates both viewsin parallel

Includes actual, budget and forecast data

Single version of the truth

Less time spent waiting for individualconsolidations to complete

Faster availability for reportingand analysis

Simultaneous legal and management reporting views - save time

© SAP 2009 / Page 25

Speed

7 dedicated dimensions for audit,transparency and compliance

Full traceability at all timesNo “on/off” switchAutomatic logsPrecise information

No impact on system performance

Performance without compromise on audit trail

© SAP 2009 / Page 26

Power and agility

Single trusted source for allcorporate information

40 dimensions22 client-defined dimensions7 built-in audit trail dimensionsUnlimited characteristicsUnlimited properties

Breadth and depth of analysis

Beyond financial reporting

Expands to meet ever-growing needsProductBrandChannelCustomerCost center

Superior dimensionality and extensible data model – expands to meet growing needs

© SAP 2009 / Page 27

Power and agility

Multiple reporting channelsDifferent charts of accountsDifferent account flowsAnalysis dimensions

Past reporting frameworks are retainedWill not re-state historyNo need to destroy or re-build previousreporting scenarios

Users always see correct dataBalance Sheet vs. Income Statementamounts over timeAutomated currency conversions andequity eliminations

Safely adapt to ever-changingfinancial needs

Financial intelligence for faster, more flexible reporting

© SAP 2009 / Page 28

Power and agility

Designed and maintained by Financeusers

Design data viewsAuthor new reportsPerform in-process ad-hoc OLAP analysisSend consolidated results to SAPNetWeaver BW

Drastically reduced need for supportfrom IT

Leads to faster results and greaterindependence and productivity

Respond more rapidly to business events

Self-service user-oriented analysis – for greater productivity

Integration with BI platform

Direct access to extended analytics cubesBusinessObjects Voyager for web-based “slice anddice” OLAP analysis

OLAP universes enable access to extended analyticscubes from universe-based tools

Crystal Xcelsius for dashboardsBusinessObjects Web Intelligence forad-hoc reportingBusinessObjects Live Office for integration withMicrosoft Office

WordPowerPointEtc.

Etc.

© SAP 2008 / Page 29

© SAP 2009 / Page 30

Ease of use for finance usersBusiness users maintain sophisticated mappingsand launch loading tasks

Secure access to dimensional metadata, intelligentchecking and filtering of data

Simple to use and easy to deploy

Compliance, trust, and reliabilityFully automated and easily accessible audit trail

Drill-back allows tracing of consolidated resultsback to the original sources

Comprehensive validations ensure error prone datais loaded right-first-time

Connectivity to SAP and non-SAP sourcesApplication connectivity removes the need forintermediate flat files or manual re-keying of data

Database connectivity ensures almost any sourcecan be integrated with a full audit trail

Rapid Marts speed implementation

Compliance, trust, and reliabilitySAP BusinessObjects Financial Information Management

Powerful connectivity, mapping, and loading designed for business users

© SAP 2009 / Page 31

Intuitive web-based dialogs

Designed for financial business users

Maintain sophisticated mappings

Automatic lists for source / target values

Ability to paste from Excel whetherindividual cells, columns, or entire rows

Support for manual entry, patternsincluding wildcards, and complexexpressions

Up to six source and targets permapping

Launch and monitor loading tasks

Launch loading tasks at will

Monitor task execution status

Business users maintain sophisticated mappings and launch loading tasks


© SAP 2009 / Page 32

Helps lower the cost of compliance

Mapping table history

Timestamp, user, from and to values forall affected dimensions

Launch of load tasks

Task name, timestamps, user, status

Detailed task feedback including anyrejected data, events etc.

Easily accessible yet secureenvironment

Business users may view their ownmapping and load history

Audit users may view all mapping andload history

Fully automated and easily accessible audit trail


© SAP 2009 / Page 33

For any amount that has been loadedusing SAP BusinessObjects FinancialInformation Management

View breakdown at a more detailed levelthan has been loaded / stored in theconsolidation application

Trace an amount across all contributingloading tasks

See before / after values for alldimension mappings

Filter by any combination of dimensions

From any suitably configured SAPBusinessObjects FinancialConsolidation report or schedule

Web and desktop clients

Drill-back allows tracing of consolidated results back to the original sources


© SAP 2009 / Page 34

Leverages the power and opennessof SAP BusinessObjects Data Services

Market leader in data integration*

Application and database connectivity

SAP Business Suite and NetWeaver BW

J.D. Edwards, Oracle Apps, PeopleSoft

DB2, Teradata, Microsoft SQL Server,Informix, Sybase, Oracle etc.

Ensures information is alwayscorrect and easily auditable

Removes the need for intermediate flatfiles or manual re-keying of data

Saves time and reduces integrationcosts

Connectivity to SAP and non-SAP sources


*Source: Gartner Magic Quadrant for Data Integration Tools, September 2008

© SAP 2009 / Page 35

SAP BusinessObjects FinancialInformation Management validationsbefore loading

Invalid mappings

Missing dimensions

Custom validations

SAP BusinessObjects FinancialConsolidation validationsduring loading

Import controls and logs

Manual journal entry and input controls

Automated rules

Full transparency with time stamps anduser names

Intelligent controls and validations ensure error prone data is right-first-time

Compliance, trust, and reliability

SAP BusinessObjects Financial ConsolidationIntegrating with SAP ERP

Extraction of source data from SAPERP FinancialsWrite back to SAP NetWeaver BW forreporting and analysisSupports the financial reportingprocess in full

Integrates a best of breed product withSAP technologyBusiness user focusedFull audit trails

SAP’s own fully supported and“certified” technology

SAP BusinessObjects FinancialInformation ManagementSAP BusinessObjects FinancialConsolidation

ERP

FinancialInformation

Management

FinancialConsolidation

BW

FIM

TransactionTable

Transformation Application

FinancialConsolidation

Web Service

Source Table

BW

TransactionTablePSA

OpenHub/DSO

SAP BusinessObjects Financial ConsolidationIntegrating with SAP ERP ECC / FI via BW

Recommended approach is to use SAP BusinessObjects Financial Information Managementto extract data from SAP ERP via BW

BW OpenHub is used to provide a standard interface to extract data from BW

SAP ERPECC

FI Extractor

SAP BusinessObjects Financial ConsolidationSupporting SAP NetWeaver BW as a Target

Save consolidated results to SAP NetWeaver BW for additional reporting and analysisSelect and transfer data using Designer

– Multiple parent-child hierarchies supported for each dimensionAnalyze with any tool that supports BW infocubes

– Analyzer– SAP Business Explorer tools– SAP BusinessObjects BI tools

Can be combined with other BW data for broader financial analysis and reportingCompatible with SAP NetWeaver BW v7.1

ConsolidatedAmounts

Financial Consolidation

Designer

NetWeaver BW

Infocube

Analysis and Reporting

SAP Business Explorer

Analyzer

SAP BusinessObjects BI

© SAP 2009 / Page 39

Agenda

1. Case study



4. Best Practices for accelerated close, increased quality and reducedbottlenecks



© SAP 2009 / Page 40

The biggest hurdle to a faster close

What is the most commonnon-value-added task that slows

down the reporting cycle?

Sources: 1) PwC Consulting Survey of Group Reporting Functions in Multinational Enterprises 20022) BPMi EMEA Group Reporting Survey 2006

Intercompany balance reconciliation and elimination

© SAP 2009 / Page 41

Faster peer-to-peer intercompany reconciliationBusiness units reconcile intercompany balancesand transactions in real time via the web and allowscorporations to close faster

Headquarters process monitoringHeadquarters can continuously monitor a collaborativematching process using centrally defined rules, foreignexchange rates, and materiality levels

Full audit trail and reportingAn audit trail, highly sophisticated status tracking,status reporting and email alerts

Rapid implementationRapid implementation and a highly intuitive UIdrives down TCO and increases ROI

Open and application agnosticFor both SAP and non-SAP ERP environments andworks with any underlying consolidation application

SAP BusinessObjects Intercompany

Eliminate the biggest bottleneck to your financial close

Consolidation

D + 0 D + 5D - 5

Reportingunit B

Reportingunit A

D + 10

HQ

Peer-to-Peer

Agree / Disagree

Agree / Disagree

ReconciledIntercompany

Balances

Intercompany matching

Close BooksIntercompanyReconciliation

Source: BusinessObjects Fast Close Survey. BPM Magazine. May 2006

Redeploy staff/resources

Meetdeadlines

Work fewerhours

Cost reduction

Uses for Saved Time

No value

62%7%

13%

10%8%

© SAP 2009 / Page 42

IFRS Data Entry & Collection ControlsCoA with most common BS and IS accountsComplete data entry package

Preventive controls blocking invalid data

Consolidation ProcessingFull, proportionate and equity methodScope changes and rate variationsElimination of IC reciprocal operationsElimination of provisions & dividendsElimination of gain/loss on disposal of assetsGoodwill booking (on manual declaration)Elimination of sharesCalculation of the currency translation reservesCalculation of non-controlling interests

SAP BusinessObjects Financial ConsolidationStarter Kit for IFRS

Data collection, control and processing

© SAP 2009 / Page 43

Monitoring and ControllingAccounting and analysis reportsSmart links between reports for quick drill downto detailed data

Audit IDs for audit trail

IAS 1 Publishable Financial StatementsBalance Sheet (current/non-current format)Income Statement (by function)Cash Flow Statement (generated automatically)Statement of Changes in EquitySegment information (area and activity)

XBRL TemplatesExcel templates pre-mapped with IFRStaxonomy

SAP BusinessObjects Financial ConsolidationStarter Kit for IFRS

Analysis, audit trail and publishing of financial statements

© SAP 2009 / Page 44

SpeedQuickly navigate taxonomies and map dataEasy to use drag-and-drop mapping environmentFast, thorough validation of generated XBRLdocuments

SimplicityWorks with EPM solutions and SAP Business SuiteLink to and import disclosures stored in Microsoft WordInsulates users from dealing with complex XBRL syntax

FlexibilityEasily extend published XBRL taxonomiesComplies with the XBRL 2.1 specificationSupports basic and block-text footnotes, dimensions,and business rules

Compliance, trust, and reliabilitySAP BusinessObjects XBRL Publishing by UBmatrix

Streamlining XBRL publishing for business users


Project Overview3 phase integration – Based on EPM* solutions

*EPM: Entreprise Performance Management by SAP BusinessObjects

Kick off + 12 monthKick off + 4 monthsKick off Kick off + 6 months

Phase 2Phase 1 Phase 3

Key PointsPhase 1: Design & Build Core application: Financial Consolidation, Budget, Planning & ReportingPhase 2: Address Intercompany reconciliation (for easier reconciliation & faster close)Phase 3: FIM, Data transforming, mapping and loadingPhase 4: BI overlay for Dashboards & Graphical representations and integration with Group BI toolsFuture: For better data quality and integration with Accounting, BI, Planning & Budgeting Platform

BusinessObjectsFinancial

Consolidation (BFC)

BusinessObjectsIntercompany (IC)


Consolidation (BFC)



Consolidation (BFC)

BusinessObjectsExtended Analytics

(BI)

BusinessObjectsFinancial Information

Management

(Optional Future)

Scope:

Financial Consolidation

Budget, Planning &Management Reporting


Consolidation (BFC)


BusinessObjectsFinancial Information

Management


Aug Aug SepJune July JulyMay May JuneMar Apr Apr

2010

Kick Off Legend: Duration Milestone

Planning& Analysis

Design BuildTesting

& Documentation

Design

Roll Out

Installation of IT Plaform (DEV)

Delivery of Design

Roll Out

GO LIVE

Kick-off Training

Design of Interco isbundled with BFCDesign for mapping Recovery of Historical data

Sign-off Build

High Level Time Plan (IFRS Starter Kit impl.)Based on RFQ & SAP experience

ICIC

FIMFIM

BFCBFC

BIBI

Pre-Design

Planning& Analysis

Planning& Analysis

- Financial Consolidation IFRS

- Monthly Management Reporting

- Budget & Forecast Reporting

IT Architecturerecommendations Installation of IT Plaform (PROD)

Roll Out

Delivery of Build

Build & Testing

+ 2 months

Build & Testing

Mapping and data loading

© SAP 2009 / Page 49

Thank you!

Thomas BenaroyaEPM Consultant

GSM +971 5 06 51 71 [email protected]://www.sap.com/mena

http://www.sap.com/mena/solutions/sapbusinessobjects

mailto:[email protected]

http://www.sap.com/mena

http://www.sap.com/mena/solutions

© SAP 2009 / Page 50

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