BUSINESS PROCESS DESIGN

REQUIREMENT SPECIFICATION

PROJECT IDENTIFICATION

Project Name CPI/Project Number Project Type

(CBI, Implementation, CSS, Upgrade, Internal, other)

Customer Name Customer Number Planned Start/Finish

SAP Customer Partner Project Sponsor Program Manager

SAP Project Manager Customer Project Manager Partner Project Manager

The table above can be deleted if not applicable to the accelerator you are developing
(Example a white Paper). If required then please leave this table on the front page so
that it can be completed when the accelerator is used.

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BUSINESS PROCESS DESIGN/REQUIREMENT
SPECIFICATION

ABC Company
Business Scenario: Legal Consolidation
Business Process: Consolidation and
Reporting
Document Title: BPC Consolidation
Blueprint

V1.0

ii
Table of Contents

Table of Contents.................................................................................................... ii
Amendment History............................................................................................... iii
Business Scenario: Legal Consolidation.................................................................1
Business Process: Consolidation and Reporting.....................................................1
1. Business Process Description.....................................................................1
1.1. Flow Diagram............................................................................................. 2
1.2. Written Explanation, Flow Diagram............................................................2
1.3. Inputs ( Events Trigger).............................................................................. 3
1.4. Outputs ( Process results)..........................................................................4
1.5. Business and Functional Requirements......................................................4
1.6. Regional /Divisional Requirements / Differences........................................5
1.7. Business Interdependence.........................................................................5
1.8. Necessary IT Systems (Legacy Systems That Are Still Required)...............5
1.9. Gaps in the Process Coverage by the SAP Standard..................................5
1.10. Identification of the Gaps..........................................................................6
1.11. Solutions for the Gaps...............................................................................6
1.12. Necessary Custom Developments.............................................................6
1.13. Permanent Interfaces................................................................................ 6
1.14. Migration Programs................................................................................... 7
1.15. Required Evaluations/Reports....................................................................7
1.16. Workflows.................................................................................................. 7
1.17. Changes to the Program Code...................................................................7
1.17.1. Enhancements.......................................................................................... 7
1.17.2. Modifications............................................................................................. 7
1.18. Quantification............................................................................................ 7
1.19. Transaction and Data Volumes..................................................................8
1.20. Frequency of the Processes.......................................................................8
1.21. User Roles.................................................................................................. 8
1.22. Requirements for the Authorization Concept.............................................9
1.23. Organizational Change Related Items........................................................9
1.23.1. End User Training Considerations..............................................................9
1.23.2. Additional Information...............................................................................9
1.23.3. Change Impact Summary........................................................................10
1.24. Improvements to the Process Compared to As-Is Status.........................10
1.25. Master Data (Dimensions).......................................................................11
Other Requirements.............................................................................................. 12
Appendix A: Glossary............................................................................................ 12
Appendix B: Issues List......................................................................................... 12

iii
Amendment History
Amendment History - Draft

Document Modified By Section, Page(s)and Text Revised

Version #
1.0
1.1

iv
Business Scenario: Legal Consolidation
Business Process: Consolidation and
Reporting

1.Business Process Description

ABC Company must produce monthly, quarterly, and annual consolidated financial
statements, for consumption by both Managerial resources and by their parent
company.

The trigger to begin the consolidation process is the official ABC Company Financial
Close calendar; dates on this calendar indicate when data submissions to SAP
BusinessObjects Business Planning and Consolidation (BPC) will begin each period.
Master data within BPC must be reviewed for changes from the prior period, and
updated prior to any data submissions for the current period. Subsequently, the
individual entities’ data is submitted into BPC in order to consolidate the data (this
includes both SAP and non-SAP transactional entities). Multiple data submissions
occur during the Close, and a final data submission is done when the SAP
transaction system has been closed and individual entity financial statements have
been validated.

The data for each entity is submitted to BPC in both local currency (the currency in
which the individual entities keep their books of record) and group currency (a
common currency, in this case USD, already translated from the local currency and
adhering to the required US GAAP Accounting Standards). Included in the data
submission is a posting of current year profit/loss for each entity into Retained
Earnings for the entity. A validation of each entity’s submitted data will insure that
for the individual entity, data is properly recorded.

The consolidation of individual entity financial statements will be accomplished by

utilizing automated tasks for the elimination of affiliate activity between entities
(both Legal and Management), with the elimination postings properly recorded in
BPC. This is enabled by requiring any transactional data labeled as “Affiliate” to be
broken down by the involved Legal and Management affiliate (Company and Profit
Center). In other words, the recording of a sale to an affiliate must include, at the
transaction level, a designation of the “to” affiliate. In addition, the “to” affiliate
must indicate the “from” affiliate when recording the reciprocal transaction. (These
requirements apply to both SAP and non-SAP transactional entities.) This recording
of affiliates on the transactions allows functionality in BPC to automatically
eliminate affiliate activity. Following the posting of eliminations, a validation is done
to insure all Intercompany accounts have been zeroed out.

Manual Input of certain data elements is required in order to support Cash Flow and
Free Cash Flow reporting; this manual Input will be done by users via defined Input
Schedule templates.

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When all tasks are complete, Consolidated financial statements are produced, for
both Legal/Tax and Management results. Once finalized, Legal Consolidation results
are submitted to the Consolidation system of the Parent company, for consolidation
at that Parent level.

An additional requirement of the process is to copy Actual data results into the ABC
Company Planning application, in order to support the annual Planning Cycle.
Annual Planning data (once approved) will also be copied into the Consolidation
application, for use in comparative reporting.

BPC is a separate system from any transactional systems of record, and as such has
its’ own authorizations related to the processing of consolidation, and data access
for Reporting.

1.1. Flow Diagram

BPC Consolidation
Process Flow.vsd

See Embedded Visio document above.

1.2. Written Explanation, Flow Diagram

This scenario is for an implementation of the 7.0M version of BPC, hence the Master
Data maintenance and SAP Data Load sections would most likely differ from an
implementation of the 7.x NW version.

Update to BPC Master Data

Any changes or updates to Dimension members during the period (addition of
Accounts, Profit Centers, Functional Areas, Entities) are entered manually to BPC
dimensions, by resources in ABC Company’s IT Support. This is done before any
period processing begins, in order to avoid errors during data loading.

SAP Data Loaded into BPC

A data file is produced from the Transactional system each month in a defined
format, and placed on a File Server for import into BPC (this process is repeated 3
times during the ABC Company Close Calendar). The file will be moved to the BPC
Server by IT Support resources, and then loaded via a Data Manager Package to
BPC. A transformation file associated with the Data Manager Package will make
required changes to the fixed field delimited load file; a conversion file will make
required changes to the Year/Period date format and will include required Functional
Area mappings.

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Validation of Loaded Data to Source Data
Two BPC reports will be created and used by Corporate Finance to perform a high
level comparison and validation of Balance Sheet and P&L results in the
Translactional system, with BPC.

Group Currency Logic

Translation Business Rules will be created in order to populate USD values into the
Groups set up in the Ownership application. This is required in order to run
Automatic Adjustments for those Groups. The Data Source Dimension property
“IS_CONVERTED” will be utilized, along with Business Rules, to allow standard logic
(via a Data Manager Package) to copy the already existing USD values into the
“Groups” for further processing by Elimination functionality.

Eliminations Logic, Legal and PC

Automatic Adjustment Business Rules will be created and used to automatically post
InterUnit Eliminations based upon Entity/Intco dimensions. The postings will be
assigned to a designated Data Source dimension member, in order to segregate the
results in the database. Standard Logic will then be run by IT Support via a Data
Manager Package within BPC to initiate the postings.

IC Elim Script Logic (custom developed) will be created to automatically post

InterUnit Eliminations based upon Profit Center/PC Intco dimensions. The postings
will be assigned to a designated Data Source dimension member, in order to
segregate the results in the database. The Logic will be run by IT Support via a
Data Manager Package within BPC to initiate the postings.

Validation of Elimination Results

A BPC report will be created and used by Corporate Finance to perform a
comparison and validation of ending balances in Intercompany-designated
accounts, between the Transactional system and BPC.

Manual Input, Free Cash Flow and BU Cash Flow Data

Two Input Schedule Templates will be created (one for Free Cash Flow Input, one for
BU Cash Flow Input) to support the manual entry of supplemental Data which will
support Cash Flow reporting Requirements.
Corporate Finance resources are responsible for input of the Free Cash Flow
template; BU resources are responsible for input of the BU Cash Flow template.

Review Reporting
Reports for Entity Consolidated results, and for Profit Center, or Management,
Consolidated results will be reviewed by Corporate Finance and all Business Units to
validate the results of the monthly Consolidation. Standard reports will be included
in a Report Library within BPC.

Submission to Parent
A BPC report will be created, which when output, will provide required data for input
into ABC Company’s Parent Consolidation system; this entry is performed manually
by Corporate Finance resources.

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Copy Actual Data to Planning Application
During the planning cycle starting in September of the current fiscal year, actual
data results will be copied from the Consolidation application to the Planning
application. Data sent from the Planning application will be distinguished using the
Data Source dimension. This process is run via a Data Manager Package on a
monthly basis, after the actual results have been validated.

Copy Plan Data to Consolidation Application

Plan data will be copied from the Planning application to the Consolidation
application after the planning cycle has ended and plan data results have been
approved. Only monthly data for the current and following fiscal year will be copied
and summarized into a YTD format. Data sent from the Planning application will be
distinguished using the Data Source dimension. This process is run via a Data
Manager Package once per year, after the plan has been validated.

1.3. Inputs ( Events Trigger)

The ABC Company Consolidation process within BPC will be executed primarily by IT
Support resources located at the Shared Services Center. In addition, manual Input
Schedules will be completed by users in multiple geographic locations, as
appropriate.

Inputs to BPC:
 Data file extracted from the Transactional system, during the monthly
Financial System Close, and following the final system GL close.
o The data file includes values for Intercompany dimensions, in order to
support elimination activity.

 Manual inputs via Input Schedules, for required Cash Flow information

1.4. Outputs ( Process results)

Outputs from BPC:
 Consolidated Management results, multiple reports

 Consolidated Legal results, multiple reports

 Parent Consolidation submission template

 Actual data results, to Planning application within BPC (during annual

Planning cycle)

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 1.5. Business and Functional Requirements

ABC Company must produce monthly, quarterly, and annual consolidated financial
statements, for consumption by both Managerial resources and by their parent
company.
 Pre-consolidated data will be sourced from ABC Company’s Transactional
system; data is extracted from that system into a fixed format file. This file is
placed in a File Share location for loading to BPC. Some conversion and
transformation of data is required to be performed during the load into BPC.
 General Ledger Account level detail, in both the Company Code’s Local
currency and in a Reporting (USD) currency will be included in the source file
for all relevant Company Codes and Profit Centers. The detailed data feed
will also include any values for Trading Partner, Partner Profit Center,
Functional Area, and Period/Year.
 Two hierarchies will exist for Account; one to support Internal Reporting, and
one for the Parent Consolidation system Reporting.
 A Consolidation Application is needed to support the requirements .
 Validation Reports will be created to ensure data integrity from the
Transaction system to the BPC system.

An Internal Management view of consolidated results is required in order to

accurately and efficiently react to ABC Company’s business requirements.
 Profit Center-based eliminations will be configured. This means that all
relevant intercompany transactions must include both a Profit Center and a
Partner Profit Center. BPC will include separate dimensions for these two
elements. Actual Accounts and Elimination Profit Centers involved in the
eliminations will be replicated from the current legacy system settings.
 One hierarchy will exist for Profit Center, representing Internal Management
Reporting.
 BU Cash Flow Reporting will be supported by manual input of supporting
data, via a custom Input Schedule template.

Legal consolidated results must be produced in order to support the Parent

Company’s External reporting requirements, and various Legal Tax reporting
requirements in the United States.
 Currency Translation is not required in BPC; US GAAP requirements will be
met in the Transactional system.
 Legal Entity based eliminations will be configured. This means all relevant
intercompany transactions must include both an Entity and a Trading Partner.
BPC will include separate dimensions for these two elements. Actual
Accounts and Entities involved in the eliminations will be replicated from the
current legacy system settings. In addition, currency conversion will need to
be performed within BPC (in order to populate the Consolidation “groups”
with USD values that will exist in Reporting Currency) prior to performing the
Legal Eliminations.
 Two hierarchies will exist for Entity; one for Internal Reporting purposes, and
one for the Parent Company’s Reporting.
 Free Cash Flow Reporting will be supported by manual input of supporting
data, via a custom Input Schedule template.

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The Consolidation Application in BPC will include links with two other applications,
as dictated by requirements:
 A Rate Application. This will be used for future enhancements to support
Currency Translation functionality. (This is a shared application, also being
used by the Planning Application).
 An Ownership Application. This will be used for future enhancements to
support automated Consolidation of Investment functionality, and also in this
project to capture the ownership structure of ABC Company to support the
Legal Elimination functionality.

Master Data requirements for each Application are discussed below in Section 1.25.

1.6. Regional /Divisional Requirements /

Differences
 No Local Requirements beyond the Corporate requirements are in scope.

1.7. Business Interdependence

 Transaction system Profit Center Accounting data must exist for initial input

 The Parent Company’s requirements, such as specifically formatted Account

and Functional Area hierarchies, may change or affect the current process at
any time.

1.8. Necessary IT Systems (Legacy Systems

That Are Still Required)
 Transaction System: Ongoing data extraction required for the base data to
start the Consolidation process, and historical monthly data extraction for
loading FY2008 – FY2010 data to BPC.

 Legacy Reporting System: Historical consolidated results for a certain number

of fiscal years (see Migration, section 1.14 below) will be required, for
comparison to and validation with BPC results subsequent to data conversion.
Older historical data, for those fiscal years not converted into BPC, will need
to be available as well, for access as determined by ABC Company audit
requirements.

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 1.9. Gaps in the Process Coverage by the SAP
Standard
 No identified gaps

1.10. Identification of the Gaps

 N/A

1.11. Solutions for the Gaps

 N/A

1.12. Necessary Custom Developments

All custom development, except where noted, will be done by the BPC Consolidation
project team; it will not require traditional development effort. All efforts are simply
customizations of standard functionality, and similar efforts exist on every BPC
project.
 SAP Profit Center Accounting data extract file changes (developed by ABC
Company IT Support)
 Conversion and Transformation Files, BPC Data Import

 Business Rules, Legal Eliminations

 Script Logic, Profit Center Eliminations

 Script Logic, Profit Center Alternate “hierarchy” Rollups

 Script Logic, Functional Area population (contribution margin Functional

Areas)
 Script Logic, Intra-Application copy of data from Consolidation to Planning
application
 Script Logic, Intra-Application copy of data from Planning application to
Consolidation application

1.13. Permanent Interfaces

Data is sourced from SAP, and subsequently loaded into BPC.

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 An SAP program is run periodically (within the SAP system, as per the ABC
Company monthly Close calendar) in order to produce a file based upon an
SAP Profit Center Accounting table. This file is automatically placed on a File
Share system, which is accessible to IT support resources.
 An IT Support resource will manually copy this file to a local Windows system
and/or the BPC server, and subsequently load the file to BPC via a customized
Data Manager Import Package using pre-defined Transformation and
Conversion Files.

1.14. Migration Programs

 FY 2010 monthly Actual data for periods 1 through 9, and FY 2008/2009
monthly Actual data for all periods will be loaded using the permanent
interface for SAP data, and processed through BPC as if the system were live.
The BPC Project team and ABC Company IT resources will be responsible for
this load.
 ABC Company resources will be responsible for the line item reconciliation of
BPC results with actual reported ABC Company historical results from the
legacy system. Some reconciling differences may occur due to differences in
calculation and posting of Intercompany eliminations, resulting from
functionality differences in BPC and the legacy system.

1.15. Required Evaluations/Reports

 Report List to be developed and validated during the Realization phase.

1.16. Workflows
 No anticipated automated Workflows

1.17. Changes to the Program Code

1.17.1. Enhancements

 N/A.

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 1.17.2. Modifications

 N/A

1.18. Quantification
The current monthly data extract from the SAP Profit Center Accounting tables has
on average 124,631 rows and is approximately 10 MB in size (average is based on
current FY2010 April, May, June data). The data files were provided by ABC
Company IT Support. The estimates of data volumes and usage used in the first
phase of the BPC Planning project remain valid.

1.19. Transaction and Data Volumes

 Loading of the current period actuals will be executed on a monthly basis.

 Copying of current period plan to the Consolidation application will be

executed on a yearly basis
 Copying of current period actuals to the Planning application will be executed
on monthly basis for months of April to September during the current
Planning cycle.

 See Quantification, section 1.18, for estimated volumes.

1.20. Frequency of the Processes

The Consolidation and Reporting process is done 3 times during each month-end
close. With “Day” being the first working day of the new period, the process is run
first on Day -2, then again on Day -1, and for a final run on Day 1 of the new period.

The manual process of Cash Flow and Free Cash Flow input templates may or may
not be performed with each process run, but must be complete at the final run of
the process on Day 1.

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 1.21. User Roles

User Role Description of the Role Activities

Administrator BPC Administrator Update dimensions, load data,

create DM packages, run logic
scripts, process and optimize
applications, create and manage
reports and input templates

Input User Update User, Input Schedules Submitting BU cash flow data or
Free cash flow data

Reporting Administrator Report Administration Create and Manage reports within

Team Folders

Reporting User Report Review Viewing Reports

1.22. Requirements for the Authorization

Concept
Administrator Role: Includes access to BPC Workbench for maintenance of
Dimensions, Applications, Business Rules, Script Logic, etc.; running of DM packages
and script logic to populate data within BPC; creating and managing reports and
Input templates.

Input Role: Includes access to write data based upon Input Schedule templates.

Reporting Administration Role: Creation and management of reports in Team

Folders, at BU level.

Reporting Role: Includes read access for all reports.

At this time, there is no requirement to secure BPC by dimension. All users will have
either read or write access to all dimensions, depending on their assigned role.

As part of User set up, teams will be created to facilitate the Reporting Strategy for
BPC Consolidation reports. Teams will allow each BU, plus Corporate Finance, to
have separate ‘folders’ within BPC to hold standardized report formats. A User
within each team will have authorization to upload new reports, or change existing
report formats in the designated Team Folder.

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 1.23. Organizational Change Related Items
1.23.1. End User Training Considerations
End User Training will be performed via Classroom-type instruction. Several classes
may be required, as End Users have differing responsiblitites. The following topics
will be covered during training sessions:

Basic BPC Navigation

Data Input, Input Schedules
Report Navigation
Report creation, using BPC Excel functionality

1.23.2. Additional Information

N/A

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 1.23.3. Change Impact Summary

Change Impact
Summary Old Way New Way Positive Impacts Negative Impacts
To Company To company
To individual To individual
roles roles
Recording of Eliminations Eliminations Increased
Legal between are recorded visibility to
Eliminations company at the actual actual
codes Entity elimination
recorded in holding the activity
an transaction
“elimination”
company
code, at the
first common
parent within
the company
hierarchy
Reporting of Reports Shared Standardization
Consolidated created and reports and of report formats
Results maintained Input and maintenance
by users Schedules
locally using are
Legacy maintained
functionality within the
BPC Library
for use by all
authorized
users. Local
reports may
be created
and
maintained
locally by
authorized
users.

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 1.24. Improvements to the Process Compared to
As-Is Status
The BPC Consolidation project is a ‘Replication’ of the current Consolidation process
in the legacy system, and therefore no process improvements are included in this
phase.

1.25. Master Data (Dimensions)

CONSOLIDATION Application Dimensions:

 Account: represents detail down to the GL transactional account; values will

exist for all Trial Balance Accounts used in the SAP system, as well as
selected statistical accounts. Hierarchies will also be created as required.
 Entity: represents a Legal Entity; values will exist for all Company Codes
within the SAP system, and for any other relevant Legal Entities as required.
Hierarchies will also be created as required.
 Category: identifies the type of data represented, such as Actual, Plan.
 Data Source: differentiates between the types of input data and the types
of data adjustments. Provides the user with a clear understanding of the
source of data, as well as the ability to make changes/adjustments to original
data without the loss of that original data.
 Flow: provides the ability to track movements within an Account, for
purposes of roll-forward and/or cash flow reporting.
 Functional Area: provides the ability to further break down expense
postings, to a required level of functional granularity (Admin, Sales, SG&A,
etc.). Hierarchies will also be created as required.
 Profit Center: represents a Management entity; values will exist for all
Profit Centers within the SAP system. Hierarchies will also be created as
required.
 Groups: identifies the currency associated with a transaction. Currencies
may be Reporting, Local, or Group (used in conjunction with the Ownership
Application for Legal Consolidation functions).
 Intco: defines ‘Trading Partners’ used in conjunction with Entity members to
identify the details of Intercompany transactions.
 PC Intco: defines ‘Profit Center Trading Partners’ used in conjunction with
Profit Center members to identify the details of Intra-company transactions.
 Time: contains the time periods of the Application Set; values will include
Monthly, Quarterly, Half-Yearly, and Yearly components. Hierarchies will also
be created as required.

RATE Application Dimensions:

 Rate: represents the types of translation that needs to occur; examples

include “average” and “end of month”.
 Rate Entity: represents the required “Entity” type dimension within an
Application; a single member, GLOBAL, will be used.
 Category: identifies the type of data represented, such as Actual, Plan.

17
  Time: contains the time periods of the Application Set; values will include
Monthly, Quarterly, Half-Yearly, and Yearly components.
 Input Currency: identifies all the base level currencies that are being used
by ABC Company.

OWNERSHIP Application Dimensions:

 Ownership Account: contains members to store ownership and

consolidation percentages and consolidation methods to support the legal
consolidation process.
 Entity: represents a Legal Entity; values will exist for all Company Codes
within the SAP system, and for any other relevant Legal Entities as required.
 Category: identifies the type of data represented, such as Actual, Plan.
 Groups: identifies the currency associated with a transaction. Currencies
may be Reporting, Local, or Group (used in conjunction with the Ownership
Application for Legal Consolidation functions).
 Intco: defines ‘Trading Partners’ used in conjunction with Entity members to
identify the details of Intercompany transactions.
 Time: contains the time periods of the Application Set; values will include
Monthly, Quarterly, Half-Yearly, and Yearly components.

Other Requirements
None at this time

Appendix A: Glossary

BPC SAP BusinessObjects Planning & Consolidation software

SAP The ABC Company General Ledger Transactional system
BU Business Unit, referring to ABC Company’s organization
structure
Application Set This refers to the BPC solution that includes the Microsoft
(AppSet) SQL Server database and Microsoft Analysis Services cubes
that support the application.
Application (App) Micrsoft Analysis Services cubes built within BPC that
support a particular business process.
Dimension Detailed elements that together make up an Application.
Examples are Category, Entity, Account.
Member Individual components of a Dimension (which Entity, which
Account). Members may be arranged into hierarchies, using
‘parent’ members as hierarchy nodes.
Property Describe Dimension members, and may be used in filtering
data and in reporting.

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 Data manager Data Manager is the automation framework for BPC that
(DM) allows you to move data into, out of, and within BPC, run
script logic, run administrative tasks, and schedule any of
the above to run at a certain time or on a recurring
schedule.

Appendix B: Issues List

Issue Mitigation Owner Due
Date
The current Report List has not The project team has
been reviewed by the BU’s, for prioritized the reports as
either completeness or they exist on the current
prioritization. This means that list, and will conduct
the list may not be completely follow up meetings with
accurate, and may need to be BU representatives
expanded when BU during the Realization
requirements are confirmed. phase to validate the
captured requirements.

19