In most organizations planning Budgets, Forescast, Sales, Resource Planning or a variety of different scenarios are still made around Excel, resulting in long term planification cycles with possible inaccuracies.
The well defined planning is essential for a business to react and adapt to changing circumstances, regulations or the competition requiring changes in the operations and finances of the company. SAP BusinessObjects Planning and Consolidation (SAP BPC) enables the creation of flexible planning solutions, calculating real time planification of models and scenarios, and budgeting at all the levels.
SAP BPC is a simple and user-friendly tool, enabling a fast adaptation thanks to it being incorporated natively with Microsoft Office, and web browers tools.
The same tool contains, in a unified way, planning and budgeting together with financial consolidation. A tool focused on the business process, and managed by business users, reduces application maintanence, improves data integrity and simplifies the release.
The planning results are available immediately, since all the calculations are SAP BPC data in real time, and are available to other users.
SAP BPC is also a tool that provides the basic mechanisms for carrying out processes of consolidation of financial information. The consolidated financial statements present the financial results of operations (profit and loss), financial position (balance sheet), and cash flow (statement of cash flow) of the organization, and its subsidiaries, which operate legally as independent entities, but want to have a centralized economic control.
The grouping of revenues, expenses, assets and liabilities provides a clear image of the actual operations, and real financial situation of the group, which may be of interest to shareholders, and investors. SAP BPC enables typical aspects to be considered in a process of financial consolidation:
- Elimination of intercompany transactions (sales or cost of goods solds bewteen, accounts receivable or payable, or investments between companies in the same group)
- Consolidation net income after deleting transactions between companies in the same group.
- External minority interests, when no one owns 100% of the subsidiary, the portion should be reflected in the balance sheet, income statements, and cash flow.
SAP BPC is an adaptable, and open application which you can begin the best practices, and base line to adapt to the needs of your organization.