Sap teched sapbw_innovatively_nalabothula

BI 211

Leverage SAP BW-BPS Innovatively to

Replace Pervasive Spreadsheet Applications

Leverage SAP BW-BPS Innovatively toReplace Pervasive Spreadsheet Applications

Venu Kumar Nalabothula MBA, CISA, CIA, PMP

Information Systems Manager Miller Brewing CompanyE-Mail: [email protected]

SAP AG 2007, SAP TechEd ’07 / Session ID / BI 221 3

Agenda

About Miller Brewing Company

Pervasive Excel Spreadsheet Applications

– Microsoft Excel for Business Planning

– Excel Spreadsheet Challenges

– Miller Marketing Spend Tracking Challenges in the past

– Miller Excel Checkbook overview

Miller ―Checkbook‖ Spend Tracking/Consolidation requirements

Innovative usage of SAP BW-BPS

– BW-BPS Overview

– BW-BPS Planning – Checkbook Application Overview

– BW-BPS Analytical Reports

– BW- BPS Security Considerations

– BW- BPS Application Performance

Suggested Strategy for replacing Critical Spreadsheets

Questions


About Miller Brewing Company

A Dynamic Brewer, Employer and Partner


Miller Brewing Company - Building Great Brands


Miller Brewing Company - Part of a Global Brewing Force

North AmericaNumber of breweries: 8Brands include: Miller Lite, Miller Genuine Draft, Miller High Life, Milwaukee’s Best

Central AmericaNumber of breweries: 2Number of bottling plants: 5Brands include: Pilsener, Bahia, Suprema, Port Royal, Cristal (bottled water)

South AmericaNumber of breweries: 15Number of bottling plants: 9Brands include: Aguila, Cristal, Pilsener, Atlas

EuropeNumber of breweries: 19Brands include: Dorada, Dreher, Pilsner Urquell, Peroni Nastro Azzurro, Šariš, Tri Bogatyrya, Tyskie, Ursus

Africa and AsiaNumber of breweries: 76Number of sorghum breweries: 29Number of bottling plants: 17Brands include: Chibuku (sorghum), Eagle (sorghum), Kilimanjaro, Mosi, Haywards, Snow, St Louis, Coca-Cola, Fanta

South AfricaNumber of breweries: 7Number of bottling plants: 10Brands include: Carling Black Label, Castle Lager, Castle Lite, Castle Milk Stout, Sterling Light, Redd’s, Brutal Fruit, Appeltiser

SABMiller is a leading global brewery with 149.1 million

barrels in the fiscal year ending March 31, 2006


Microsoft Excel for Business Planning

Very user friendly

Flexible and easy to learn

Platform for powerful models

Pivot Tables

Excellent for personal use

Lack of controls

Error rates 70-90%

Inappropriate for storing data

―One of the biggest holes in

compliance: business-critical

information held on spreadsheets,‖

Keith Bishop, Qtier 2005

“Spreadsheet: No better than manual records for statutory reporting and Sarbanes-Oxley compliance. Consider migrating to formal IT control environment.” PWC

Pros Cons


“…the Company concluded the severance error was

the result of a failure in the operation of controls

surrounding the preparation and review of

spreadsheets that include new or changed formulas

and concluded this situation constitutes a “material

weakness,”

WHY??

Excel Spreadsheet Challenges


Excel Spreadsheet Challenges – Contd.


Miller Marketing Spend Tracking Challenges in the past

Lack of real-time visibility into spending throughout the enterprise

Reports are outdated before they arrive

Difficult to see expenditures by Internal Orders, budget etc.

About 300+ spreadsheets in multiple market areas

Information needed for decisions not readily available

Takes too much time and effort to consolidate spreadsheets

and create reports

Finance staff’s time may not be utilized to their best advantage

Valuable time spent on spreadsheet maintenance and

manipulation, not on value-added analysis

Difficult to maintain confidentiality of the data

Numerous spreadsheets need to be secured

With the right information, the right decisions can be made


Miller Excel “Checkbook” Overview (past)

Checkbook is a collection of Internal Orders (IOs) assigned to a given

individual budget owner.

It is a way of tracking and maintaining IO-level budget spending with sight

to spending at the plan version level.

Budget Owner : Budget owner/assignees are responsible for entering

and updating entries in a checkbook. A budget owner may have

multiple checkbooks but there is only one budget owner per

checkbook. Budget owner to approve items for accrual in SAP.

Sales Finance Accountant : Updates the checkbook as needed after it

has been approved by the Budget Owner. Noon of 3rd workday –

Sales Finance Accountant enters manual accrual entries in SAP R/3

Miller had to manage about 300+ spreadsheets (past)


Miller “Checkbook” Spend Tracking/Consolidation requirements

Roll-up capabilities by Market Area, Region & US in near real-time mode?

Need for centralized built-in security?

No need for 300+ copies of same spreadsheet?

No need to secure 300+ folders/ 1000+ passwords / various folder

permissions?

Ability to access and collaborate from remote locations ?

Improved usability (Web based) ?

Powerful audit mechanism – tracks changes by User ID?

Tracks status of updates every month?

Possible to automate booking of Financial Journal Entries to SAP?

Archiving of the Historical data?

Centralized adjustments & rollout of changes vs. sending 360 copies of the

spreadsheet to all market areas?


BW- BPS (Business Planning and Simulation) at a Glance

Cost Center

Manager

CFOInvestment

Planner

Sales Manager

Modeling Planning

Functions

Planning

Interfaces

Planning

Applications

Coordination

Business Planning and Simulation

BW Cubes


BW-BPS Planning Building Blocks

Data Model

Cube Design, Planning levels and Packages,

Plan/Actual comparison, Integration

Business Logic

Balance Sheet, P&L,Cash Flow, Contribution Margin,

Internal Rate of Return, Depreciation methods, Key Figures

(EVA,ROI, Working capital,...), Net Present Value,...

Best use of Planning Functions

Using the right generic core functions

New application specific functions (Depreciation, Offset

entry, Scoring, Time lag, Valuation,...)

User Interface

Using the right generic core interface (Excel InPlace, Web

Interface Builder, Excel in Web)

New application specific interface (SAPGUI)

Reporting / Roles

Queries, Web Reports, Portal Content


Selection1

BW-BPS Modeling: BW InfoCube

Sales Office

Re

gio

n

Chicago Dallas New York

North

Mid West

South

MGD

Miller Chill

Lite

Re

gio

n

North

Mid West

South

Sales Office

Region

Brand

Chicago

Mid West

Miller Lite

Volume

Revenue

…….

xx,xxx Bbls

xxx,xxx US$Key Figures

Characteristics

MGD

Miller Chill

Lite

Brand

The SAP BW Infocube is the base for

planning data

Chicago Dallas New York

Sales Office


BW-BPS Planning Functions

Basic Functions

• Manual Planning

• Attach Documents

Functions for

Allocation

• Top down

Distribution

• Bottom-Up

• Allocations

Functions for Data

Conversion/

Management

• Currency translation

• Unit conversion

• Copy

• Delete

• Repost

Functions for

Individual

Calculations

• Formulas

(Rolling Forecast,

Validation,..)

• User-Exits

Functions for

Simulation

• Multiple Versions

• Planning Sequence

• Forecast

• Excel Capabilities


Regio

nal

Adm

inis

trato

rs

Budget

Ow

ners

Sale

s F

inancia

l

Accounta

nt

Sys

tem

/ P

rocess

Adm

inis

trato

rs

Maintain

Checkbook

hierarchy

Review &

Update

Checkbook

entries

Approve the

Checkbook

entries

Review &

Challenge for

accruals

Initiate

automatic

approval

process

Che

ckb

ook re

po

rting

SAP Portal

BW-BPS / Portal

Maintain

Users &

roles

Maintain

Authorization

to checkbook

Maintain

Portal

roles

Maintain

BPS

variables

Maintain

Cost element

hierarchy

BW-BPS Checkbook Application Overview


BW-BPS Checkbook - Adding Expenses

3) Type an Amount

1) Insert one or more lines

2) Type or select

values for each field

4) Click Save

Users can enter the data on the screen one row/cell at a time into the Checkbook Application.


BW-BPS Leveraging Embedded Excel User Interface

Users can upload their entries from an Excel Spreadsheet into the Checkbook Application.

Please see the white space with row numbers, where the users can paste their data from Excel.


BW-BPS Checkbook Fiscal Year / Period Summary

Summary of plan & actual by month

Includes givebacks and transfers (Adjustments) in Adjusted Total


BW-BPS Checkbook Month End Process

No later than Noon of 2nd workday - Budget Owner must have approved the checkbook for

accrual (Note: Budget Owner can approve whenever entries are complete for the month)

Noon of 3rd workday – Sales Finance Accountant must have sent checkbooks to SAP ECC (R/3)

for month end Fiscal Close process

Checkbook Application demonstrating segregation of duties

SF

AS

AP

R/3

Bu

dg

et O

wn

er

Add expenses

to checkbook

Update status

and date of

expenses as

needed

Run Checkbook

Accrual Report

Approve for

Accrual

Entries

accurate?Yes

No

Review Checkbook

(Run Checkbook

Accrual Report,

Review & Challenge)

Entries

accurate?

Update

entries Send to R3

Post Accrual

Journal Entry &

Notify SFA

No

Yes

Maintenance Month End Process


BW-BPS Checkbook Review - Accrual Report

Select Checkbook Accrual Report (Budget Owner & Accountant normally run this report).

Select Node to report on:

Click Selection button for Order/ Hierarchy Node.

Expand hierarchy to see Market Area, DMA or Checkbook.

Click Node Name.

Type fiscal year (yyyy).

Click Execute button.

Check that information is accurate

If desired, print and/or Export to Excel


BW-BPS Checkbook – Review & Approve for Accrual

Click Approve to Accrual when ready to send accruals to Finance for month-end processing

Data associated with Process Code 0 is displayed. After approval, Process Code is changed to 1.

Checkbook line items move from Budget Owner tab to SFAcct tab.

After approval no line items are shown in Budget owner’s Tab as process code is changed to 1.


BW-BPS Checkbook - SFAcct Review & Update

Periodically run Checkbook Status Report (10) to determine

which checkbooks are ready for review

For approved checkbooks, run Checkbook Accrual Report (8) &

review

If needed, in Checkbook Maintenance – Expenses SFAcct tab,

update line items – include a comment saying what was changed

and why

Data associated with Process Code 1 is displayed.

The SFA enters the accrual Posting date, and Clicks Send Accrual to R/3, when he/she is ready to send accruals to SAP for month-end processing


BW-BPS Checkbook - Send Accrual to SAP ECC (R/3)

Enter Accrual Posting Date & click Send Accrual to ECC(R/3)

Message log shows SAP ECC (R/3) Journal entry….#

Expense lines collapsed & frozen – Avoiding double-posting to SAP ECC (R/3)

After accrual processing, Checkbook line items move to Fully processed State (Process Code is changed to 2)

The checkbook line items are no longer maintainable, until the month end process is completed


BW-BPS Analytical Reports

Compares actual spent to budget with sight to givebacks & transfers for a given Plan version and fiscal year.

Compares actual spent to budget with sight to givebacks & transfers for a calendar year. For budget data, PF3 plan version is used for January - March, and the selected plan version data is used for the other 9 months.

Compares total spent to budget with sight to givebacks & transfers for a given Plan version and fiscal year,

Compares total spent to budget with sight to givebacks & transfers for a given Plan version and calendar period. For budget data, PF3 plan version is used for January - March, and the selected plan version is used for the other 9 months.

Shows checkbook detail based on selection criteria used to limit the rows returned. No budget data is included.

Provides breakout of Actual Spent by status code and Total Spent compared to budget for a given Plan version and fiscal year with sight to givebacks & transfers.

1. Actual Spent vs Budget Fiscal Year Report

2. Actual Spent vs Budget Calendar YTD Report

3. Total Spent vs Budget Fiscal Year Report

4. Total Spent vs Budget Calendar YTD Report

5. Checkbook Detail Report

6. Checkbook Budget Fiscal Year Detail Report

BW-BPS Reports replaced and enhanced ALL existing Excel reports.

Note: The users could not readily generate consolidated reports using Excel in the past.


BW-BPS Analytical Reports Contd.

Provides breakout of Actual Spent by status code and Total Spent compared to budget for a given Plan version and calendar year with sight to givebacks & transfers.

Shows only the checkbook expenses that will be accrued and posted to SAP – those with a status code of "A" or "PV”.

Provides distributor allocation detail at the IO level within a given checkbook for the selected Plan version and fiscal year.

Shows the status of each checkbook indicating if it has been approved for accrual or sent to SAP for posting.

Compares each plan version by month with sight to givebacks and transfers.

Provides monthly summary of current fiscal year planned and actual spending against all IOs in checkbook with site to givebacks and transfers. Same as the Fiscal Year/Period Summary tab – but can be used regardless of the number of IOs in the Checkbook.

7. Checkbook Budget Calendar YTD Detail Report

8. Checkbook Accrual Report

9. Distributor Spent Summary Report

10. Checkbook Status Report

11. Plan Version Summary Report

12. Fiscal Year/Period Summary Report


BW-BPS Security utilizing BPS Variables

BPS Variable Security : User XXYY has access to two checkbooks.

By creating BPS variables to control Checkbook level security we had to create only 7 BW-BPS Roles.

Checkbook Administrators would be able to manage security, rather than SAP Security team


BW-BPS Security using PFCG

Sample Security Roles created for the application


BW-BPS leveraging BPS capabilities for Auditing

When the checkbook owner approves the data for the month, a snapshot of the data is copied into the Audit Cube.

Further, when SFA sends the accrual to SAP ECC, a snapshot of the data is copied into the Audit Cube.

Date approved and the User ID of the approver are captured in the Audit Cube


BW-BPS Application Performance

Apply OSS Note: 990000 BW-BPS Performance Monitoring and Analysis

***(Very important – for Easy Performance Analysis)***



Analysis of Planning functions



Analysis of Fox Formulas


Advantages of BW-BPS Checkbook Solution vs. Excel Challenges

Roll-up capabilities by Market Area, Region & US in real-time mode

Centralized built-in security

No need for 300+ copies of same spreadsheet

No need to secure 300+ folders/ 1000+ passwords / various folder

permissions

Improved usability (Web based)

Powerful audit mechanism – tracks changes by User ID

Automated re-allocation by distribution

Possible to automate booking of Financial Journal Entries to SAP

Tracks status of updates every month

Built in BW Archiving Functionality

Centralized rollout of changes vs. sending 300 copies of the spreadsheet


BW-BPS Planning Applications for Finance and Marketing

Critical spreadsheet consolidation

Accrual tracking Systems

Compensation Planning application

Head-count Planning application

Top-down Planning applications

Bottom-up planning applications

Cash forecasting systems

Month-end close systems

Expense tracking systems

Budget tracking systems


Development, maintenance and support of multiple Excel spreadsheets for Marketing /

Sales / Finance and other divisions

Ensure SOX controls in place for

critical spreadsheets

Leverage BW-BPS ***

for Planning &

Critical Spreadsheet consolidation

End User

capabilities

powered by IS

As Is

To Be

Suggested long term strategy for replacing critical Spreadsheets –

Consistent with your company’s SAP strategy

In the long term leveraging Excel for Departmental/Enterprise applications will be very costly and less reliable

compared to the implementation of an integrated solution leveraging tools like BW-BPS *** for SOX compliance.

***from NW2004s onwards leverage

BI Integrated Planning


Questions

Q&A


Further Information

SAP Public Web:

SAP Developer Network (SDN): www.sdn.sap.com

Business Process Expert (BPX) Community: www.bpx.sap.com

Related Workshops/Lectures at SAP TechEd ’07

BI 212, SAP NetWeaver BI – Integrated Planning Implementation Experience , Lecture

BI 250, Building Powerful Planning Applications with SAP NetWeaver BI Integrated Planning, Hands-on

BI 220, Tips and Tricks Using SAP NetWeaver BI Integrated Planning for Cost Center Planning /

Forecasting , Lecture

Americas’ SAP Users’ Group (ASUG)

www.asug.com

Related SAP Education and Certification Opportunities

http://www.sap.com/education/

http://www.sdn.sap.com/

http://www.bpx.sap.com/

http://www.asug.com/

http://www.sap.com/education/


ASUG and SAP: Partners in Education

ASUG, the Americas’ SAP Users’ Group, is the world’s largest, customer-run community of SAP

professionals and partners, with 45,000 individual members and 1,800 companies represented. ASUG

delivers the highest value to member companies, allowing them to maximize their SAP investments.

Some highlighted benefits include:

– Access to a year-round community for SAP customers and partners

– Diverse mix of educational topics and events through a variety of formats

– Exclusive opportunity to influence SAP future product direction

– Unparalleled networking opportunities with a dynamic professional network

– Unprecedented partnership with SAP

– Access to ASUG Groups and Chapters

To learn more about ASUG, visit the ASUG booth in the SDN Clubhouse, or visit our Web site at

www.asug.com.

http://www.asug.com/


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Sap teched sapbw_innovatively_nalabothula