DEMO SCRIPT (Internal Document)

Planning and Consolidation (NW)

Annual Plan Demo
Scenario ID: 8151

General Information

Cross Industry
SAP BusinessObjects Planning and Consolidation 10, version for
the Netweaver Platform

Authors

Balaram Pattanaik
Thijs Jan Hansen
Roy Ostergren

Date Last Updated

01 May 2012

 COPYRIGHT 2011 SAP AG. ALL RIGHTS RESERVED.

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Scenario ID: 8151

SAP AG 2011 / INTERNAL

Contents
1

Demo Script Overview...................................................................................................................... 4

Demo Access and Information ......................................................................................................... 5

2.1

Demo Environment and Access .............................................................................................. 5

2.2

User Information ...................................................................................................................... 5

2.3

Used Solutions and Versions .................................................................................................. 5

Pre-Demo Steps & Recommendations ............................................................................................ 6

Demo Script ...................................................................................................................................... 7

4.1

Story flow ................................................................................................................................. 7

4.2

Step-by-Step Guide ................................................................................................................. 8

4.2.1

Initiate Budget & Set Targets ............................................................................................... 8

4.2.2

Revenue and Cost of Sales Planning ................................................................................ 16

4.2.3

HR Planning ....................................................................................................................... 24

4.2.4

Expense Planning .............................................................................................................. 27

4.2.5

Capital Expenditure Planning ............................................................................................ 29

4.2.6

Balance Sheet & Cash Flow Budget ................................................................................. 32

4.2.7

Consolidation & Review ..................................................................................................... 35

Appendix ........................................................................................................................................ 42
5.1

Document Update Notes ....................................................................................................... 42

Scenario ID: 8151

SAP AG 2011 / INTERNAL

1 Demo Script Overview

Demo description:

This demo scenario showcases how SAP BusinessObjects Planning and

Consolidation can help organizations streamline the planning process
and reduce cycle time in creating and approving budgets. It also shows
how the solution enables finance and line of-business managers to
collaborate to align budgets.

Intended audience:

Line of Business Finance

Business pain points:

Accelerate cycle time for planning and budgeting and increase

business user productivity
Improve the accuracy of planning and forecasting
Model potential business strategies and decide on a course of action
that maximizes value creation

Value proposition:

The SAP BusinessObjects Planning and Consolidation application,

version for the SAP NetWeaver platform, brings order to business
planning processes by helping you plan, budget, and forecast more
effectively. With embedded support for financial consolidation, the
software facilitates compliance with regulatory and financial reporting
requirements.

Protagonists

Story flow summary

Reduce cycle time in creating and approving budgets by enabling

finance and line of-business managers to collaborate to align
budgets
Improve planning and forecasting accuracy via a unified, agile
solution that supports rapid re-forecasting and standard business
processes
Increase business user productivity with native access to familiar
tools such as Microsoft Office
Corporate Business Controller responsible for the corporate
budgeting process.
Local Financial Controller responsible for the subsidiarys budget and
aligning with line of business managers to align budgets.

This demo scenario is a deep dive into SAP BusinessObjects Planning

and Consolidation, version for the SAP NetWeaver platform, and
illustrates using the solution for a companys Annual Budgeting process.
The business process in this demo consists of 7 steps with various
action items many companies might use to complete an annual or
periodic budget. The steps and processes include:

Initiating a plan,
Revenue and Cost of sales planning,
HR planning
Expense planning,
Capital Expenditure,
Balance sheet,
Consolidation and review.

See section 4.1 for a full description

Scenario ID: 8151

SAP AG 2011 / INTERNAL

2 Demo Access and Information

2.1 Demo Environment and Access
This demo scenario uses the component SAP BusinessObjects Planning and Consolidation
v.10.0, version for the Netweaver Platform.
Before starting the demo several pre-demo steps have to be completed.
Please refer to section 3 Pre-demo Steps for more information.
To learn more also see next section.

2.2 User Information

User

Password

Component / Role

bpc01

sbo123

User for running the BPC NW demo scenario

bpc02-10

sbo123

For Shared Landscape: Users created in backend NW system but not configured in BPC NW
application.

2.3 Used Solutions and Versions

Software Component

Release

Service Pack

SBO Planning and Consolidation

10

SP05

EPM add-in

10

SP08 Patch 1

Scenario ID: 8151

SAP AG 2011 / INTERNAL

3 Pre-Demo Steps & Recommendations

Before a demo make sure you perform the following steps:
a) Logon to your image in your Demo Landscape
b) Make sure the BW system is started on the ABAP / SBO BI machine (see fact sheet).
c) Run the demo from the SBO EPM machine (see fact sheet)
d) On the Remote Desktop:

Click on the BPC NW Web shortcut in Favorites

Logon with user bpc01 and password sbo123

Ensure that the Environment is set to: EPM10_DEMO_PL

e) Before starting the demo try to Cache the machine as much as possible. Refer to
section 7.1 Caching upon (re)starting a machine of the fact sheet for further
information.
f)

Before a demo, make sure you launch the Excel and logon to a model (e.g. Financial).

g) In the current situation with BPC NW 10 SP05 it takes approximately 16 seconds to open the
BPF. First tests with SP06 show 10 seconds. It is recommended to open the Activity
Workspace before the demo and keeping it opened.
h) Please take notice of section 7 Appendix: BPC NW / EPM add-in Performance &
Recommendations of the fact sheet and the remarks on Time to open reports and forms:

Launch Excel and connect to a model just before a demo

When closing a report do not close Excel but stay connected to a Model
Launch Activities from the BPF Activities in EPM Pane (a.k.a. Action Pane). This only
applies to reports and templates within the same sub-activity / workspace.

Note: The script does not mention when to close the report. It is recommended to do
this before moving to the next report or form.

Scenario ID: 8151

SAP AG 2011 / INTERNAL

4 Demo Script
4.1 Story flow
The business process in this demo consists of 7 steps with various action items many companies
might use to complete an annual or periodic budget. The steps and processes include:
Initiating a budget
The protagonist in this part of the demo scenario is a Corporate Business Controller responsible
for the corporate budgeting process. After a presentation of the Business Process Flow for the
Annual Budget the controller needs to perform certain action before releasing it to the budget
owners. In this step he will initiate the budget and copy a new version, review global rates, set and
allocate targets.
Revenue and Cost of sales planning
After initiating the budget the business unit manager for Italy starts with the 2nd budget cycle.
After reviewing the procedures and policies he starts by adjusting the sales planning. To meet
target he adds additional sales for a new product in 2010. After wards he checks the version
comparison to review the adjusted figures.
HR Planning
In this step the budget owner for Italy will adjust the HR Planning figures. Before entering
departmental employee information, he reviews the payroll related assumptions. Then he plans
the headcount at an employee level of detail. Many customers plan at a position or job code level
rather than going down to an employee level of detail. BPC can easily facilitate either process.
Expense budgeting
In this step of the budget process the Italy business unit manager will update the entered
expenses. It highlights many of BPC's spreading capabilities which enable budget owners to look
at an annualized amount, and allow users a variety of methods to spread annual amounts into the
months.
Capital Expenditure
In this step the Capital Expenditure budget will be updated. It highlight BPC's capability of
automatically calculating the depreciation expenses by capturing standard asset cost, the asset
life and the depreciation method depending on the asset class. This method allows the budget
administrator to control planned asset expenditures as well as ensure everyone is using consistent
accounting methods throughout the organization.
Balance sheet
This steps highlights BPC's capability of working Balance Sheet Drivers and capturing Balance
Sheet Rollforwards. It shows the impact on the Balance Sheet and that the Cash Flow logic is
inherent in the application, allowing easy, accurate cash flow development.
Consolidation and review
After having completed all the input for the budget this highlights some additional consolidation
tasks before finalizing the budget such as allocating the costs to products based on allocation
drivers.

Scenario ID: 8151

SAP AG 2011 / INTERNAL

4.2 Step-by-Step Guide

4.2.1

Initiate Budget & Set Targets

Clicks

1.

Screenshots

Talking Points

On the Demo Image click on the BPC NW Web

shortcut in Favorites
Logon with user bpc01 and password sbo123
Ensure that the Environment is set to:
EPM10_DEMO_PL

Logon with user bpc01 and password sbo123

Ensure that the environment it set to Your Newly
copied Environment as created in the pre-demo steps

Select the Home tab

Select the Start page in the action pane on left

Scenario ID: 8151

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Clicks
2.

Screenshots

Talking Points
In this demo scenario we will look at an Annual Budget process.
Lets assume with are currently in October and we are going to
revise the initial version of next years budget for one of the
business units or entities, in this case Italy.

In the left-hand menu click on Activities

In the Activities menu select Annual Budget
In the Details window select Overview

Due to the time open the Activity Workspace make sure

you do this before the demo and keep the workspace
open.

Process-centric
Simplified guidance through a complex process
User acceptance significantly higher because of guided
navigation and familiar interfaces
We will do so using an Annual Budget activity we have created
and which is an example of how Planning and Consolidation will
provide you with the ability to embed your specific business
processes within the application.
Planning and Consolidation provides the ability for your
organization to streamline repeatable business processes. These
activities can be configured to give you control & consistency,
while giving users the benefit of being guided through the
business process instead of having to search for information or
go through an intensive training course.

3.

In this scenario the Annual Budget consists of 7 steps or

processes. Users can clearly see the 7 steps of the annual
budget process and work their way through the steps in the
appropriate order.

In the left-hand menu click on Initiate Budget & Set

Targets.

We will start with initiating the budget and setting target. These
are activities performed at a centralized level for example by a
controller responsible for the total company budget process.
Before releasing users to begin planning, you need to get the
budget ready. This may include creating a new budget version,
for example.

Scenario ID: 8151

SAP AG 2011 / INTERNAL

Clicks
4.

Screenshots

Talking Points

NOTE:
Before the demo make sure you have Excel open and are
connected to the FINANCIAL Model.

You do not need to actually run the copy process

because the data has already been copied.
This step is a discussion point. If you need to show
copying data, you can copy from Budgetv2 to Budgetv3.

Click Create New Budget version

This will open the data manager package in Excel.
Click Next in the first screens of the Copy package

Click on the Add button next to Category Source

Select BudgetV1 from the EPM Member Selector
Select Member Only from a drop down list
Click on the arrow pointing form left to right
Click Ok

Do the same for Category Destination and select

BudgetV2 as the target.

Creating new versions is very easy in BPC. Users/administrators,

with appropriate security, can utilize an assistant to walk through
the process. New versions can be seeded based on existing
versions.
For example, lets say you need a new version for the budget
because youve already completed one iteration of the budget
process. You want to retain the results of Version 1, but want
users to be able to make adjustments for Version 2.
In this case, you simply want to copy everything from BudgetV1
into BudgetV2.
You could further narrow the selection by selecting specific
Entities to copy. As you can see, this offers a high degree of
flexibility in defining what you want to copy. As you can see,
creating multiple versions of information is quite easy within the
application.

Note: This step is already performed:

5.

Click on Cancel to close the Data Manager Package.

Return to the Activities in BPC Web

Click on Enter Currency Rates in the Excel EPM Pane

Talking Point only

Close the report and Return to Activities in BPC Web

Scenario ID: 8151

Unified - Easily maintain the integrity of current data

versions while facilitating what-if scenarios because all data
is stored in a single repository
Familiar and Easy to Use - Creating Versions is very easy
to use
Owned and Managed by Business
Security controls ensure that as a user I can only write to
categories to which I have been given proper authority

10

Unified - Currencies can be shared for all processes,

including actuals, budget, forecast, etc.
Application Intelligence - BPC delivers the flexibility to
define where currency rates come from: a source system or
service or direct input via an input schedule

SAP AG 2011 / INTERNAL

Clicks

Screenshots

Talking Points
Before you begin budgeting for the new version, you need to
collect currency rates. Currency rates can be imported from a
source system, downloaded from a web service, or directly input
in an input schedule, as you see here.
Most customers utilize two rate types: Average & End, although
additional rate types can also be defined for historical rates, etc.
Currency translations happen in real time as users are submitting
or importing data.

6.

In the Activities click on Enter Human Capital Rates in

the Excel EPM Pane (HCM Model)

Talking point only

Application Intelligence - Global Rates can be defined and

applied across various business units, etc.
Driver based calculations are completed real-time as
information is being submitted to the application

In addition to currency rates, there are several other types of

global rates you may need to collect before the budget is open for
input. The first set of global rates is for the Human Capital
calculations. Within this input schedule, there are three types of
rates: % of Salary, Cost/Head ($/Head), and FICA Caps. In the
first view, we see the accounts that are calculated based on % of
Salary. Notice the % can vary across business unit and position,
offering a high degree of flexibility in the planning process. In this
case, these rates are controlled globally; however, you also have
the flexibility to allow local overrides, if desired. You will also see
later in the demonstration that end users have the ability to view
the global rates that were entered to better understand the final
budget.

Scenario ID: 8151

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Clicks
7.

Screenshots

Talking Points
Familiar and easy to use - BPC utilizes Excel as a primary
mechanism for data collection, offering the full flexibility of native
Excel

Click the button Cost/Head Rates.

In the second view, you see the accounts that are calculated
based on a cost/head. In this case, the cost/head will be entered
in the Local Currency of each Country, which allows greater
flexibility in defining regional differences. Again, notice the
cost/head can also vary based on position. Employees in a higher
job grade may receive a higher car allowance, for example, than
employees in a lower job grade. Also, some positions/business
units may not give a car allowance, as we see for the North
American companies.
8.

Delivered Application Intelligence

Out-of-box ability to allow for caps drives a more accurate,
detailed budget
Allows managers to easily account for frequent modifications
to caps

Click the button FICA Caps

Close the report and Return to Activities in BPC Web

NOTE: FICA is not applicable for areas outside the US.

The final view allows FICA caps to be set. Again, these caps may
not apply to all countries or regions, so users have the flexibility of
defining the cap by business unit and by position. BPC
automatically calculates FICA as salaries change, new
employees are added, etc. As this cap changes from year to year,
it is easy to accommodate changing caps and still maintain
accuracy in the budgeting process.
9.

Delivered Application Intelligence

Consistent cost assumptions create a more accurate,
realistic budget
Ensure compliance with corporate governances
Allow summary of common assets (Laptops, etc.) to help IT,
Facilities, HR, etc. plan appropriately

In the Activities click on Enter Standard Capex Rates

the Excel EPM Pane (Capex model)

Talking Point only

Close the report and Return to Activities in BPC Web

Often in a budget cycle, users in different parts of the

organizations make different assumptions. For example,
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Clicks

Screenshots

Talking Points
someone in the sales department plans to purchase 5 new
laptops at 5,000 each, while someone in Finance plans to
purchase 3 laptops at 2,000 each. By creating cost assumptions
for commonly purchased assets, you can ensure all users use the
same cost for equivalent assets. The other benefit is that you can
see the total number of laptops, for example, you expect to
purchase. This information may help IT or procurement negotiate
a better price for the year with preferred vendors, knowing they
can commit to a specified number of laptop purchases.
You may already capture this information somewhere in your
organization, such as a Fixed Asset system. You can easily
import the fixed assets assumptions in from the fixed asset
system as part of an automated process, rather than manually
entering the rates, as you see here.

10.

In the the Excel EPM Pane > BPF click on Set Targets

Select the Direct Costs & Net Revenue amounts for

2012
In the EPM ribbon click on Planning and select Weight

The first step to top down planning is to set the targets. As you
can see, the targets are set at a summarized level, including only
the key items from the Income Statement. We are going to input
targets for BestRun Corporation the total consolidated entity in
the application, although this exercise could be completed at any
level. The level of detail is completely configurable to your
organizations requirements.

Click the radio button next to By Percentage

In the Increase value to Allocate field, Enter 5
Click OK
Click Save Data on the EPM ribbon
Click YES, to send 2 records
Close the report.

Scenario ID: 8151

Establish a Financial Foundation - Targets help drive

accountability by providing visibility in to required
spending/revenue to achieve company objectives
Unified - Unlike most Performance Management
Applications, targets/strategic plans are held in the same
unified application, making comparisons to budget, forecast,
actuals, etc. seamless

As you may recall from the Overview Demo, BPC provides users
the ability to Spread, Trend, and Weight data to assist in the
creation of forecasts or plans. In this case, lets say you want to
increase the Revenue & Direct Costs by 5%. You can easily
complete this exercise by using the Weight capability. Also, as we
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Clicks

Screenshots

Talking Points
have discussed, you can use native Excel capability to create
formulas, etc. to calculate values.

11.

In the the Excel EPM Pane click on Allocate Targets

Enter 2012 in Year field and click on Next

Enter E00 in Entity field Important: make sure you
enter in UPPER CASE
Click Finish
Click OK when prompted

Familiar and Easy to Use - Assistant drives users through the

process of running an allocation, offering options, where
applicable
After setting the top level targets, you need to allocate these
down to the individual business units. You will recall that we input
a summarized income statement for the total company. Ideally,
you might like to allocate this to base level accounts, entities,
products, and departments, so users can easily compare
information as they complete the bottoms up budgeting process.

Click View status in the Data Manager ribbon

In the Package Status windows check the box Refresh
status every
When the job status has changed to Succeeded click
Close
Close the report and Return to Activities in BPC Web

BPC delivers powerful allocation capability, providing a variety of

methods and a very flexible way of defining allocations. In this
case, the user has the ability to pick the entity and time for the
allocation. This allows different users to set targets at different
levels in the organization, then allocate as appropriate. You may
restrict the allocations to only specific users or administrators.
You also have the ability to schedule the allocations to be run on
a regular basis, if desired.

12.

Establish a Financial Foundation - Allocation applies across

multiple dimensions, breaking back top down targets to all
dimensions (Account, Product, Department, etc.)

In the the Excel EPM Pane click on REPORT- Version

Comparison
Ensure the Context is set to the following value.

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Clicks

Screenshots

Talking Points
After allocating the targets, lets return to the Version Comparison
report to see the results of the allocation. Notice the Net Revenue
target was broken down into 3 separate accounts that total the
target we input earlier.

Lets change the Entity to Italy. Users with access to only a

specific entity, such as Italy, can see their portion of the allocation
broken into a fine level of detail.

In the EPM Context set the Entity to Italy

Close all reports, keep Excel open, and return to BPC
Web.

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4.2.2

Revenue and Cost of Sales Planning

Clicks
13.

Screenshots

Talking Points
Process-centric - Users have access to internal policies and
procedures. Users confirm that they have reviewed the Policies
and Procedures by completing this step

In the Activity workspace click on Revenue & COS

Click on Review Policies & Procedures which will
bring you to the Documents menu
In the right window click on Review Policies &
Procedures to open the PDF document.
Afterwards close the document.

As the business unit manager for Italy, you are now ready to
begin entering information for BudgetV2. The first thing you may
need to do is review the Policies & Procedures. In this case, the
document is a document that has been posted by an
administrator that includes important information about the
Budget Process. You can view the calendar for important due
dates and review the revenue & expense guidance.
By including this information as part of the Business Process,
managers/administrators can ensure users have reviewed the
Policies & Procedures.

14.

Unified - Power and benefit of a truly unified solution and one

point of maintenance updates everything in the application

Return to the Revenue & CoS workspace by clicking on

the Overview tab

As you saw earlier in the overview demo, maintenance changes,

such as the addition of a product line, automatically update
everywhere in the application. There is zero maintenance
required to update input templates and reports. As a user, you
can see there is a new product line available.

Notes: you may replace the Product 04 used in this step by

the new product you created in the Overview Demo

In the Revenue and CoS workspace click on Enter

Units and Rates

Scenario ID: 8151

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Clicks
15.

Screenshots

Talking Points

If you are skipping showing a report against a BW cube

skip to step

Before we update the Budget for Revenue & Cost of Sales I might
want to view some Sales history that is stored in a BW cube.

26

A powerful feature of the EPM Add-in for reporting is the ability to

report against other data sources such as a BW cube.
Lets create an ad-hoc report to view some sales order history.

16.

Note: Reporting against BW cube is only available on

LDL.

17.

Add a Blank workbook to Excel

Click the Report Layout tab in the EPM Action

Pane

Click the drop-down arrow next to the Active

Connection

Choose Select Another Connection

Scenario ID: 8151

Lets connect to the BW cube containing sales transaction history

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Clicks
18.

Screenshots

Talking Points

Select Connection:
BW Sales Cube
Click OK

19.

Security kicks in here to ensure the user has been granted

access to this Cubes information.

Login with:
bpc01/sbo123

20.

In the EPM Excel ribbon. Click Open, Open Server

Root Folder

Choose BW Sales Cube Report in the

REPORTS\BUDGET folder

Scenario ID: 8151

Now that were connected to the BW Sales cube. Lets open a

report displaying data from the cube.

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Clicks

Screenshots

Talking Points

21.

Double-click on Product Group A

22.

Double-click on Customer Group 1

23.

Double-click on Quarter 3

Scenario ID: 8151

This report can be drilled on by double-clicking dimension

members.

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Clicks
24.

Screenshots

Talking Points

In the Context Bar click

Key Figures Sales Revenue
Choose Open Orders

25.

26.

Click Refresh

Click the Excel icon in the Windows Task Bar

Click EVDRE S01-REVENUECOS1 to go back to the

Sales Forecast Input Schedule

Click Input Units button

You also see that the appropriate tasks, such as spreading,

trending, and weighting are automatically available in the EPM
Ribbon.
You plan to sell 500 units over the year; however you dont know
exactly how they will phase into the months. You could write an
Excel formula to do this, but you also have the ability to Spread
Data in the action pane. BPC provides this capability, such as
spreading, trending, and weighting, in addition to the native
capabilities of Excel.
You enter the amount to spread and the destination. Optionally,
you can also enter weights. In this example, lets say you expect
the seasonality to be the same as the Product 01. Notice BPC
automatically generates the appropriate monthly values based on
the input.

Note: In the Input Units template do not input data on the

xxxx.TOTAL column else you will get a warning after save
the data.

Select the Jan 2012 cell for Product 04

In the EPM ribbon click on Planning and select Spread

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Clicks

27.

Screenshots

Talking Points

Type 500 in the Source Value field

Click in the Destination field and click on the select
cells icon.
Highlight January December for the new Product 04
and press enter
Click in the Weights field and click on the select cells
icon.
Highlight January December for the Product 01 and
press enter
Click on OK to close the spread dialog box. Note that
the cells for January December are populated with the
sales unit values.
Now you are ready to input rates for the new product line.

Click on the Input Rates button

Select the values for Product 01 from Jan till Dec

Right-click, select Paste in to the Product 04 for sales

revenue

In the EPM ribbon click on Planning and select Weight

Type 5 in the By Percentage box
Click OK

In the EPM ribbon click on the drop-down icon on the

Save button and select Save and Refresh Workbook
Data

Click Yes to send confirmation > 84 records will be

written to the database and Close the dialog Box.

Scenario ID: 8151

Lets say you expect the rates to be similar to the Product 1, so

you can simply copy and paste the rates into the new product
line.
After entering the rates, you are ready to send data to the
application. As you submit changes, the application automatically
calculates the accounts that are driven by sales units (revenue,
rebates, etc.).

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Clicks
28.

Screenshots

Talking Points
Real-time consolidation Data is automatically calculated,
translated, and consolidated when users submit information

After the confirmation click on Expand Workbook in the

EPM ribbon

You can now return to the report to see the direct profit for the
new product line, which was automatically calculated by
multiplying the units times the rates.

29.

Click on the View Amounts button

In the EPM Pane on the right, click REPORT Product

Line KPIs

In the EPM Context click on USD and select LC from

the member selector.
Go back to USD

Entering revenue & cost of sales information is part of a typical

planning process, but eventually you need to see the impact of
the modeling exercise in various analysis and production reports.
In this example, you see a budget package report that is broken
into sections for revenue and profitability analysis. Notice that the
new product line automatically appears in every section of the
report. But waitthe direct profit for your new product line is not
the same as what you just saw in the input schedule. As you can
see, we are viewing this information in USD. However, remember
we entered this information in Euro. To view the same report in
Euro, the local currency of Italy, you can change your point of
view to local currency. As you can see, currency was translated
real-time in the application, allowing you the ability to view fully
calculated, translated results immediately after modifying
information.

Close the worksheet and select No when prompted to

save
Click Back to BPF (Action Pane). Click No if prompted to
save changes.

Note: Budget amounts are written in LC, while Targets are

only calculated in USD.

Scenario ID: 8151

Unified - Changes update all areas of the solution Minimal

maintenance and no technical expertise required
Familiar and Easy to Use - Excel-based allowing current
production reports to be easily replicated
Real-time Consolidation - Instant currency translation
WITHOUT having to run batch processes

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Clicks
30.

In the EPM Pane click on Report - Version

Comparison

Close Excel. Do not save any changes when prompted.

Screenshots

Talking Points
Real-time Consolidation - Changes to units drive through to the
P&L, Balance Sheet & Cash Flow, allowing real-time what-if
modeling
As you saw in the KPI report, inputting units & Cost of Sales
information for the new product line automatically calculated the
revenue, rebates, materials, etc. However, wouldnt a change in
budgeted revenue also impact the balance sheet? Specifically
Accounts Receivable?

Return to the Activities in BPC Web.

Lets go back to the Version Comparison report. As you can see,

not only has revenue and the cost of sales accounts updated, but
it has flowed all the way through to Net Income. Even better you
can see that the Balance Sheet & Cash Flow have automatically
updated based on the change to units & rates, which flowed
through to the Balance Sheet/Cash Flow based on drivers you
will see later in the demonstration. Only BPC can deliver this
powerful, real-time modeling capability in a single, unified
application.

Scenario ID: 8151

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4.2.3

HR Planning
Clicks

31.

Screenshots

Talking Points

In the Activities click on HR Budget.

Click on Review HR Assumptions

Close the Excel Report. Click no when prompted to

save.

Unified - Disparate functions, such as HR Planning, Capital

Planning, etc. are unified in a single application to provide a
superior user experience
Process-centric - Common business processes, such as
HR Planning are packaged and delivered as application
functionality

Before entering departmental employee information, you may

want to review the payroll related assumptions. As you will recall,
these have already been input as global rates, but as a
departmental manager, you have the ability to review the rates to
better understand your final budget.

32.

After reviewing the assumptions, you are ready to begin inputting

information for your employees. In this example, you are planning
for headcount at an employee level of detail. Many customers
plan at a position or job code level rather than going down to an
employee level of detail. BPC can easily facilitate either process.

In the EPM Pane click on Enter Employee information

In the first view, you see Exempt (Salaried) employees. As

discussed earlier, this information is typically pulled into BPC from
the payroll system to avoid having to re-key information.
In addition to the information loaded from the payroll system,
managers can also input additional information, such as a
proposed salary increase, promotions, transfers, terminations,
etc.
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Clicks
33.

Screenshots

Talking Points

Note: the format of dates to enter depends on your

Regional Settings.

Familiar and Easy to Use - Users are notified instantly when

they exceed a threshold or hit an exception, rather than having to
wait for a validation report
Process-centric - Business Process Menus deliver packaged
application functionality, such as headcount planning

For employee Fabrizio Ciavarra:

select the Percent field and enter 10

Click Yes to the Invalid Percent Increase pop up
message that appears (this is not an error but an Excel
validation)

In the Explanation Field enter Planned promotion.

In the Promotion Filed enter 01/01/2012 ( January)

Select the New Position and select A2-Area Sales

Director from the drop down box

As the manager, you know that Fabrizio Ciavarra was the top
regional sales manager in the business unit. To recognize
Fabrizios efforts, you want to promote him to Area Sales Director
and give him a 10% salary increase. When you enter 10% in the
PCT increase column, you are directed to enter an explanation as
to why you want to exceed the promotion cap corporate has
instituted. As you can see, BPC facilitates cell level validation,
allowing users to be instantly notified when they enter something
incorrectly or trigger an exception. For the promotion, you can
enter the planned promotion date and the new position Fabrizio
will be taking. You also must enter an explanation for the
promotion, due to the salary increase that exceeded the
corporate maximum.
You also may need to transfer an employee out of the
department. You can easily do this by entering a transfer date
and selecting the department to which the employee will transfer.

For employee Danielle Della Casa

select the Transfer Date and enter 4/1/2012 (April)
select General & Administrative as Department

34.

Familiar and Easy to Use - Users can easily add additional

employees by inserting new lines, rather than having a long list of
available positions to fill

Right click on New Hire 01

In the EPM context menu select EVDRE: Insert Member
Select EM_NH05 as Employee
Select HP0111 (B2 Regional Sales Manager) as
Position
Click OK
Enter 6/1/2012 as the start date (June)
Enter 75000 as Annual Salary

After adjusting existing Exempt employees, you also may need to

add additional headcount. In many applications, this could be a
painful exercise because it can be difficult to get a new employee
to show up in the list. However, BPC allows users to insert new
rows, in this case representing a new employee and a predefined position. The positions could also be free form text entry,
if desired.
Lets say you are planning for a regional expansion and need a
new Regional Sales Manager to support this expansion. You
select Regional Sales manager for my new employee and input a

In the EPM ribbon click Save Data > xx data records

and x comments are written to the database
Click Yes to the pop-up box

Scenario ID: 8151

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Clicks

Screenshots

Talking Points
start date, say June 1, 2010. You can also enter salary
information for this new employee. As you can see, the input
schedule allows users to dynamically add new lines without
cluttering the schedule with a predefined list of open positions.

Click Close to the successful send confirmation box

(Refresh Schedule Results)

Warning: Measured times ~ 60 seconds with default

script logic (similar to 7.5)
35.

Real-time Consolidation - Real-time calculation, currency

translation, and consolidation WITHOUT having to run a batch
process

In the EPM Pane click on REPORT Personal

Expenses

As we saw earlier with the revenue schedule, when information is

submitted to the application, it automatically calculates results.
For example, we have just updated annual salaries, added
employees, etc. How does this drive all the tax and benefit
accounts we reviewed earlier? As you can see,
headcount/salaries are driving a variety of headcount related
expenses, such as benefits, payroll taxes, etc., allowing you to
view fully burdened headcount expenses utilizing the global
assumptions we reviewed earlier. For the new employee you
added, you see that all the associated payroll lines have
automatically been calculated, allowing us to review total
departmental personnel expense.
36.

In the EPM Pane click on REPORT- Employee Trend

Close Excel. Click No when prompted to save.

Return to the Activities in BPC Web

Scenario ID: 8151

You may also want to review an Employee Trend to see how

Personnel Expense looks over time. Notice Danielle Della Casa
drops off in April, as a result of the transfer you entered earlier.

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4.2.4

Expense Planning

Clicks
37.

38.

Screenshots

Talking Points

Line Item Details have not been implemented at this time

In the Activities click on Expense Budget.

In the Activity Workspace click on Enter Expenses

For Supplies: enter 8%in the % Inc / Dec and select 44-5 as the New Method

For Insurance: delete the % Inc / Dec value and Enter

300000 in the Annual Input

Establish a Financial Foundation

BPC delivers financial intelligence, allowing users to quickly
select methods, such as last year, growth, even, 4-4-5, etc.
Users/administrators can easily add additional methods to
the application
The next step in the budget process is entering expenses. Many
customers prefer to look at an annualized amount, and allow
users a variety of methods to spread annual amounts into the
months.
On the far left, you can see that last years actual (or forecast) is
supplied as a basis. You can elect to increase/decrease last
years amount by a percentage or input a new annual amount.
For example, lets say you plan to increase supplies by 8% and
want to spread that into the months based on last year actual. In
the list of methods, you can see a variety of provided methods
such as 4-4-5, calendar days, work days, even, growth and
decline.
You also just received a new insurance quote of 300,000 for next
year and need to update this line, too.

Click on Save Data in the EPM Ribbon

Line Item Details have not been implemented at this time

39.

Real-time Consolidation
Modifications to data are immediately available for review,

In the EPM Pane click on Report - Expense

Comparison

Scenario ID: 8151

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Clicks

Screenshots

Talking Points

Click USD in Current View (Action Pane)

Select LC
Click OK
Change back to USD
Click No when prompted to save changes
Close the Excel Report

due to SAPs real-time calculation, currency translation, and

consolidation
Users no longer have to wait for lengthy batch process to
run to review results

After inputting expenses, you want to review some reports before

moving on to the next step. The expense comparison report
demonstrates the real-time calculation & consolidation of the
application. For example, you are currently viewing USD. If you
change your view to Local Currency, you can clearly see the
impact of the changes made in the prior step.
After completing the expense section, you are ready to move on
to the Capital Expenditure budget.

Scenario ID: 8151

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4.2.5

Capital Expenditure Planning

Clicks
40.

41.

In the Activities click on Capital Expenditure Budget.

Click on Review Capex Assumptions

Close the Report. Click no when prompted to save.

In the EPM Pane click on Enter Capital Expenditures

Enter 1 in January for quantity PC Replacement >
select Enter

Screenshots

Talking Points
Familiar and Easy to Use - Users can review corporate/global
assumptions to better understand the final budget
Earlier, we input global assumptions for standard capital
expenditures. In this case, the budget manager does not have the
ability to change the assumptions, but may want to review them
to better understand the budget.

Process-centric
BPC delivers packaged application functionality, such as
capital expenditure planning
Rapid deployment using best practice methodologies
packaged in business process menus
In addition to capturing standard asset cost, BPC also stores
asset life and depreciation method depending on the asset class.
The depreciation expense is then calculated automatically. This
method allows the budget administrator to control planned asset
expenditures as well as ensure everyone is using consistent
accounting methods throughout the organization.
You plan to hire a new employee and can see that the PC for a
new employee has already been entered into the template.

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Clicks

Screenshots

Talking Points
Furthermore, you know that you plan to promote one of your staff.
Consequently, you would like to replace his desktop with a laptop
and his desk with new desk. You also have one additional laptop
you need to purchase for another employee.
The PC replacement is already in the schedule, so you can
simply enter a quantity of 1 in January.

42.

43.

Right click on PC-Replacement

Select Insert Member
Select ID in the View Members by box
Select PR0301 (Facility Repair) as Project
Select AS003 (Conference Tables) as Asset
Select Refresh Data from the EPM Add-in (to retrieve
the Standard Costs)
In February, Enter 5 for quantity.
In the EPM add-in click on Save Data
Confirm that 129 data items will be send; after saving
close the confirmation box.

If you need to add a new asset (or project in Other Assets),

simply right click to insert a new member, then select the project
and the asset. The selected asset drives the life assumptions and
standard costs. These are controlled centrally by an
administrator, For example, lets say you plan to repair
conference tables in February,. By entering to quantity in
February the standard expenditure will be calculated as well as
the monthly depreciation and therefor the cash out flow. As we
have discussed, BPC calculates depreciation, PPE balance, etc.
when the data is submitted, so users can immediately see the
impact of this change on the balance sheet.

In the EPM Pane click on REPORT - CapEx by Project

After completing the capex input, you may want to review a few
reports before moving on in the business process. The first report
summarizes capital expenditures by project. This allows you to
easily identify which projects are consuming budget dollars.

Scenario ID: 8151

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Clicks
44.

Screenshots

Talking Points
Establish a Financial Foundation - Both existing and new
assets easily reported to enable better decisions about where to
spend scarce resources

In the EPM Pane click on REPORT - CapEx by Asset

Class.

A second report shows total capital balances for both existing and
new assets. This analysis is important in the event we need to cut
capital expenditures as part of the budgeting process. You cannot
reduce existing asset balances, but may be able to forego
purchasing new assets. The existing asset balances are typically
imported from a fixed assets system.
45.

Unified - Updates automatically update the balance sheet & cash

flow and Real-time consolidation provides immediate analysis
capability

In the EPM Pane click on REPORT - Version

Comparison

Note: at this moment there is an issue with the Balance

Sheet and Cash Flow logic. To be investigated.

Finally, before moving to the Balance Sheet & Cash Flow plan,
you may want to better understand the impact of the changes we
have made. Returning to the version comparison report, you see
the balance sheet & cash flow continue to update based on
detailed changes, such as capex.
Because BPC offers a unified, real-time application, users can
immediately consolidated results across all financials, including
the P&L, Balance Sheet, & Cash Flow.

Scenario ID: 8151

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4.2.6

Balance Sheet & Cash Flow Budget

Clicks
46.

In the Activities click on Capital Expenditure Budget.

Click on Enter Balance Sheet Drivers

Click on Inv Turns button to open the Inventory Turns

sheet.

Screenshots

Talking Points
Process-centric
Global business calculations are handled centrally in the
application rather than by individual users in the spreadsheet
Application intelligence is packaged to deliver best practice
approach to driver based Balance Sheet planning
As we have already seen, as users update units, costs,
expenses, etc. the results flow through not only the P&L, but also
the Balance Sheet & Cash Flow. How are these updates made
possible? We have already reviewed several examples of driver
based planning, including units * rates and HR drivers for payroll
taxes, benefits, etc. BPC can also leverage drivers for Balance
Sheet planning. Many customers utilize DSO & DPO
assumptions, for example, to drive Accounts Receivable &
Accounts Payable on the Balance Sheet. As you can see, the
assumption is broken down into two components: a target &
overdue assumption. Inventory Turns may also be input to drive
Inventory balances. The idea is to identify known relationships
between P&L accounts & the Balance Sheet so users dont have
to manually input every line of the Balance Sheet. This also helps
drive consistency in the process; if revenue changes, Accounts
Receivable will change appropriately without requiring a user to
remember to manually make this change.

Scenario ID: 8151

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Clicks
47.

48.

In the EPM Pane click on Balance Sheet Rollforwards

Change Common Stock Buyback in June to -5550
Click Save Data (EPM add-in)

Click Yes to Send Confirmation: 1 data record will be

sent
Close the Save Result dialog box

In the EPM Pane click on REPORT - Balance Sheet

Screenshots

Talking Points
In addition to Balance Sheet Drivers, it is also often important to
capture Balance Sheet Rollforwards. For example, you may know
we anticipate issuing or buying back common stock, and need to
plan accordingly. You can plan this level of detail using the
Rollforward Schedule.

After making the necessary adjustments to the balance sheet

drivers & rollforwards, you are ready to review the Balance Sheet.
You can see the impact of all the changes you have made to
BudgetV2 reflected in this comparison report.

Note: there is an issue with the logic and Balance Sheet

impact. Avoid focusing on this.

Scenario ID: 8151

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Clicks
49.

Screenshots

Talking Points
Establish a Financial Foundation - Cash Flow logic inherent in
the application, allowing easy, accurate cash flow development

In the EPM Pane click on Report - Cash Flow

You also may want to review the Cash Flow statement at this
point. The Cash Flow is derived by measuring changes on the
Balance Sheet. You can immediately see the result of the cash
flow based on changes we have been making to BudgetV2.

50.

Finally, we return to the Version Comparison report, where we

started the demonstration today. Here, you can see a summary of
the financial impact of your changes to the BudgetV2.

In the EPM Pane click on REPORT - Version

Comparison

Scenario ID: 8151

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4.2.7

Consolidation & Review

Clicks
51.

Screenshots

Talking Points
Unified - The same business rules can be leveraged anywhere in
the application. Allocations used in Consolidation can also be
leveraged for Budget or Forecast

In the Activities click on Consolidation & Review.

Click on Click Report Product Profitability

After completing all the input for the budget, you may have some
additional consolidation tasks to complete before finalizing the
budget. For example, you collected input for expenses by entity
and department, but didnt specify the product line. However, one
of the required outputs from the budget process is the ability to
review product profitability reports. In order to accomplish this
objective, you will need to allocate the expenses to the individual
product lines. You saw an example of allocations earlier in the
demonstration when you allocated top level targets to the
business units. This time, you want to allocate expenses to
individual product lines, based on each product lines contribution
to revenue. In other words, if the X100 represents 30% of total
revenue, the X100 will receive 30% of the total expenses.

52.

In the EPM Pane on the right, click on Process Allocations

You process the allocation using the same method for the top
down allocation. When running the allocation, you will select the
Category, Entity, and Time periods. Remember, due to the unified
application, you have the ability to apply this same allocation
definition to actual, if desired.

In the Run Package dialog windows enter the values

EXACTLY (Upper Case) as follows:

Category: BUDGETV2
Entity: E0202

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Clicks

Screenshots

Talking Points

Time: 2012

(click Next between every step and end with Finish)

53.

Click on View Status and check the Refresh every 5

seconds option.
Once finished (60 90 sec) close the View Status
window to return to the Product Profitability Report.

Note: when opening the data manager package the EPM

context settings change. Therefore either:
Close the report and re-open it, or
Change the context to see screenshot on the right

In the EPM ribbon click on refresh

In the EPM Context click on the AUDITP dimension and

click on Select Other Members

In the Member Selector expand the TotWithAlloc node

and Select TotWithAdj
Click OK and click Refresh in the EPM ribbon

Click on TotWithAdj in the EPM Context

Select ProdAlloc under TotWithAlloc node and click

Refresh in the EPM ribbon

Change Current View to TotWithAlloc and click

Refresh in the EPM ribbon.

Scenario ID: 8151

Once the allocation has successfully run, you can review the
results. As you can see, the operating expenses have now been
fully allocated to the product lines. But what if you need to see
what the Income Statement looked like before we ran the
allocation? Is it too late to do this?
BPC separates allocation results into separate buckets so users
dont lose visibility into what was allocated. For example, you can
easily select the TotWithAdj data source to view pre-allocation
results. If you want to see what was recorded as part of the
allocation, you can change to the Product Allocation data source.
To review the post-allocation values, you return to TotWithAlloc.
This methodology of splitting allocated results into separate
buckets keeps complex allocations clean and gives users a better
understanding of allocated results.

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Clicks
54.

Talking Points

In the EPM Pane click on Report Allocated

Expenses
Close Excel. Click No if prompted to save changes.

Another report that is helpful is the Allocation Verification report.

This report compares the allocation result that is stored in the
database with the result calculated in Excel. This is an easy way
to check the results of the allocation to ensure everything
allocated correctly.

Click Report Budget Package in the Action Pane

within Excel

In the EPM ribbon click Book Publication, Publish

Books. Walk thru the Book Publish Wizards options.

The Wizard will output a Book containing the 4 reports

shown here.

The report package has multiple pages within

it. As I scroll across the different reports, I
can see we have an income statement,
balance sheet and full cash flow. As we moved
through the business process flow, we
completed all the tasks required to generate a
full set of financial statements for each entity,
and on a consolidated basis. This report
package would typically be published to an
html environment, where it is archived and
available to a wider audience, including
reporting entity, regional and corporate
managers.

55.

Screenshots

Scenario ID: 8151

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Clicks
56.

To run the Wizard choose Publish Now, Next

57.

Choose Publish to PDF format. Choose Single PDF

Scenario ID: 8151

Screenshots

Talking Points

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Clicks
58.

59.

Give the Book a file name.

Publish the Book to the Public folder

Enter a filename Italy 2013 Budget v2 Report Package

Choose BUDGET PACKAGE.xlt

After the wizard evaluates the packaging template,
check the Budget Package

Scenario ID: 8151

Screenshots

Talking Points

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Clicks
60.

Click Next on the Summary

61.

The Wizard takes about 45-50 seconds to process &

output the Book.

Close Excel & return to the BPF

Scenario ID: 8151

Screenshots

Talking Points

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Clicks
62.

Click the Home tab in BPC Web

Click Library in the left navigation pane

Click on the Public folder

Click the on the Italy 2012 Budget v2 Report

Package book to open it

Screenshots

Talking Points
Here you can see the Book has been published
to the library.

Note: If you did not run the wizard you can still show the
audience a book. In the Public folder you will find the book
Great Britain 2012 Budget v2 Report Package.
The book for Great Britain was also saved as a Favorite
& appears on the Start Page.
63.

Talking point only: Work Status has not been implemented

in the model. Do not launch the Set Work Status.

Workflow - Work Status controls data and allows

locking/approval of data, providing strict control over data
After completing the allocations, you may want to view the Budget
Package, distribute reports, etc., similar to what you saw in the
overview demo. You also may need to update the status of the
budget to Submitted, locking the data from further revision. This
also signifies to the European manager that the data for Italy has
been finalized and is ready for review/approval. After updating the
status and completing the step, this business process is finished
for this region.

Scenario ID: 8151

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5 Appendix
5.1 Document Update Notes
Date

Notes

11 March 2012

Initial version of the script

6 April 2012

Demo & script updated for reporting against BW cube, Book publishing,
and other minor fixes

24 April 2012

Adjusted pre-demo steps and recommendations. Replace open in

Activities by open from EPM Pane when the template or form is in the
same sub-step.

Scenario ID: 8151

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