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]
© SAP 2009 / Page 2
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 / Page 3
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 / Page 4
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 / Page 5
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 / Page 6
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 / Page 7
© SAP 2009 / Page 8
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 / Page 9
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 reduced bottlenecks
5. Implementation effort
6. Live Product Overview
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
Slide 10
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
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
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 reduced bottlenecks
5. Implementation effort
6. Live Product Overview
© 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
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 reduced bottlenecks
5. Implementation effort
6. Live Product Overview
© 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
Compliance, trust, and reliabilitySAP BusinessObjects Financial Information Management
© 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
Compliance, trust, and reliabilitySAP BusinessObjects Financial Information Management
© 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
Compliance, trust, and reliabilitySAP BusinessObjects Financial Information Management
© 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
Compliance, trust, and reliabilitySAP BusinessObjects Financial Information Management
*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
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 / 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
© SAP 2009 / Page 45
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 reduced bottlenecks
5. Implementation effort
6. Live Product Overview
© SAP AG 2009. All rights reserved. / Page 46
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)
BusinessObjectsFinancial
Consolidation (BFC)
BusinessObjectsIntercompany (IC)
BusinessObjectsFinancial
Consolidation (BFC)
BusinessObjectsExtended Analytics
(BI)
BusinessObjectsFinancial Information
Management
(Optional Future)
Scope:
Financial Consolidation
Budget, Planning &Management Reporting
BusinessObjectsFinancial
Consolidation (BFC)
BusinessObjectsIntercompany (IC)
BusinessObjectsFinancial Information
Management
© SAP AG 2009. All rights reserved. / Page 47
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 48
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 reduced bottlenecks
5. Implementation effort
6. Live Product Overview
© 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
© SAP 2009 / Page 50
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