SAP BPC NW 10.0 on HANA - Consolidation Business Rules- Implementation Guide

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SAP BPC NW 10.0 on HANA | KNOWLEDGEBASE
(A

SAP EPM & HANA Community Service)

Business Rules for Financial Close Implementation Guide

Author:
Murugesan Annamalai
SAP Project Manager/Lead
SAP EPM/BPC Solutions Lead
murugesana@cloneskills.com

SAP EPM/HANA Community Service
10/16/2013

Chief Architect:
Jothi Periasamy
SAP HANA/EPM/BI/EIM Community Leader
SAP BPC/BOBJ/BI/MDM Domain Champion
joesaran@gmail.com, (916)-296-0228 - Cell

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Table of Contents
1. Executive Summary: ........................................................................................ 4
2. Key Assumptions:............................................................................................. 5
3. Business Rules Flow of Control:....................................................................... 6
4. Business Scenario:........................................................................................... 8
4.1 Business Scenario – 1: ................................................................................... 9
5. Solutions Architecture: ................................................................................... 13
6. Solutions Building Blocks: .............................................................................. 17
7. Entity Structure: .............................................................................................. 20
8. Ownership Structure:...................................................................................... 21
9. Business Rules: Configuration ....................................................................... 22
10. Relationship Among Business Rules: ........................................................... 26
10.1 Example: Relationship Among Business Rules .......................................... 27
11 Business Rules Tables .................................................................................. 28
11.1 Business Rules Table: Methods ................................................................. 28
11.1.1 Business Rules Table Columns: Methods ............................................... 29
11.2 Business Rules Table: Methods Based Multipliers ..................................... 30
11.2.1 Business Rules Table Columns: Methods Based Multipliers ................... 32
11.2.1.1 Example: BR in Action (Step By Step Execution) ................................. 34
11.3 Business Rules Table: Eliminations and Adjustments ................................ 38
11.3.1 Business Rules Table Columns: Eliminations and Adjustments .............. 42
11.4 Business Rules Table: Carry Forward ........................................................ 44
11.4.1 Business Rules Table Columns: Carry Forward ...................................... 45
11.5 Business Rules Table: Account Based Calculations............................................. 47
11.5.1 Business Rules Table Columns: Account Based Calculations ................ 48
11.6 Business Rules Table: Intercompany Bookings ......................................... 50
11.6.1 Business Rules Table Columns: Intercompany Bookings ....................... 51
11.7 Business Rules Table: US Eliminations ..................................................... 53
11.7.1 Business Rules Table Columns: US Eliminations ................................... 54
11.8 Business Rules Table: Currency Translation ............................................. 55
11.8.1 Business Rules Table Columns: Currency Translation ........................... 56
12. Business Rules: Implementation .................................................................. 58
12.1 Business Scenario – 1: Implementation ..................................................... 58
12.2 Business Scenario – 2 & 3 : Implementation .............................................. 64
12.3 Business Scenario – 4: Implementation ..................................................... 82
12.4 Business Scenario – 5 : Implementation .................................................. 105
12.5 Business Scenario – 6: Implementation ................................................... 121
12.6 Business Scenario – 7 : Implementation .................................................. 172
Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy

CloneSkills, Inc., http://www.CloneSkills.com , Info@CloneSkills.com , 1.800.836.8959, Page - 2

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13. Appendix-A – Data Source File: ................................................................. 184
13. Appendix-A – Data Source File(Contd.): .................................................... 185
13. Appendix-B – Consolidated Balance Sheet ................................................ 191
14. Disclaimer: ................................................................................................. 192
15. SAP Community Contributors:.................................................................... 193

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

1. Executive Summary:
The purpose of this article is to provide enough functional and technical details
to implement SAP BPC NW 10.0 business rules on a consolidation model.
Users will learn the business rules that are required to implement financial
close process solution. In this article we are explaining the mandatory required
steps to implement business rules in detail.
This document explains the [a] objective of each business rule, [b] educates
you to understand the table fields/columns for each business rule, [a] explains
the business purpose of each column in the business table and then [d]
explains the value stored in each column along with sample values. Ultimately
we are showing you to implement the business rules step by step.
In this article, we cover the following business rules on a SAP BPC NW 10.0
platform for a consolidation implementation:
Methods
Methods Based Multipliers
Eliminations and Adjustments
Carry Forward
Account Based Calculations
Intercompany Bookings
Currency Translation
Equity Pickup
US Eliminations

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

2. Key Assumptions:
Before we move further in this journey, It has been assumed that the user has
basic knowledge and understanding on finical close process and also it’s
enabling technologies such as SAP BPC NW 10.0 product.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

3. Business Rules Flow of Control:
Below diagram explains “how a business user able to interact with business
rules, and perform their business functions using SAP BPC NW 10.0 out of
the box business rules functionality” – How business rules work within
business users?
Note: There are other options to call or to make the business rules to interact
with business users, here is a sample options to call/invoke a business rule
from user perspective.

Figure: 1: Business rules control and information flow

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
Based on the above diagram the following steps are explained to get a better
view on the step by step approach to implement SAP BPC NW 10.0 business
rules
Step # 1: Business users launches EPM “add-in” excel
Step # 2: Business users calls a specific data manager package via
EPM “add-in” excel, the data manager package may be standard
package or a custom package developed by customer
Step # 3: The data manager package intern calls a “logic script” with a
user prompt (note: the user prompts are optional).

Step # 4: On prompt, the business users should be able to provide their
valid inputs to the respective prompt
Step # 5: After accepting user inputs from the prompt, the “logic script”
intern calls business rule with relevant parameters, the parameters are
vary by business rules
Step # 6:Now the business rule reference the business rule table for the
associated context information’s, after reading the business rule table
the business rule function will read the applicable data region from
model
Step # 7:Now the business rule will perform the following task, each
business rules will have its own set of task based on the objective of the
business rules and it’s table values
Read model data based on the business rule table context
values/information
Apply business rules on the model data
Write the data back to model

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
Step # 8:Finally business users should be able to verify the outcome of
the business rules execution via a custom report, or a custom data input
form , or a SAP BW backend query, also through other options

4. Business Scenario:
CubeInsights, Inc. a Holding Company has legal subsidiaries in the United
States, Canada, Germany, United Kingdom, Singapore and India, and not all
of them are wholly owned. Besides that, these subsidiaries do make
intercompany transactions which need to be eliminated during the
consolidation/close process.
The company does many acquisitions and divestitures during the year that
has led to a complex and lengthy close process. To speed up the financial
close process, the company has decided to automate their consolidation
process using SAP BPC NW 10.
SAP BPC NW 10 uses minimal programming to automate the consolidation
process. The SAP BPC NW 10.0 software primarily uses predefined set of
Business Rules to automate the consolidation process. Business Rules are
table driven approach and it does not require complex programming/coding
efforts to implement the consolidation process.
SAP BPC implementation team decided to explore the business rules, instead
custom coding and custom artefacts.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

4.1 Business Scenario – 1:
Below diagram explains a global company’s operating model, in this business
scenario we are using a global company called CubeInsights, Inc.
CubeInsights, Inc. offers pre-packaged industry analytics on a cloud platform,
and they are specializing in SAP HANA and HADOOP technology.

Figure: 2: CubeInsights operating model

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

Figure: 3: CubeInsights subsidiaries and its ownership to parent
company
CubeInsights, Inc. Holding Company has subsidiaries in the following
countries:
o United States
o Canada
o Germany
o United Kingdom
o Singapore
o India
Subsidiaries have the following entity structure:
o USA and Canadian entities are part of North America region.
o German and UK entities are part of Europe region.
o Singapore and Indian entities are part of Asia Pacific region.
o North America, Europe and Asia Pacific regions are coming
under corporate headquarters.
Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

The Holding Company has ownership in its’ subsidiaries as follows:
o Has 80% stake in its US subsidiary.
o Has 90% stake in its German subsidiary.
o Has 80% stake in its Singapore subsidiary.
Subsidiaries have ownership interest among themselves i.e.
subsidiaries have invested in other subsidiaries.
o German subsidiary has 20% stake in UK subsidiary.
o Singapore subsidiary has 80% stake in Indian subsidiary.
o US subsidiary has 70% stake in Canadian subsidiary.
The Holding Company is adopting the following accounting standards
when consolidating assets of its subsidiaries:
o Equity method has to be followed for consolidation of
subsidiaries’ assets if the Holding Company is having less than
25% shares in its subsidiary.
o Proportionate method has to be followed for consolidation of
subsidiaries’ assets if the Holding Company is having more than
25% shares but less than or equal to 50% shares in its
subsidiary.
o Purchase/Full method has to be followed for consolidation of
subsidiaries’ assets if the Holding Company is having more than
50% shares but less than or equal to 100% shares in its
subsidiary.
All the subsidiaries/entities have intercompany transactions (among
themselves) i.e. they conduct transactions among themselves which
need to be eliminated when their assets are consolidated with the
Holding Company.
The company prepares consolidated cash flow statement based on
previous two months’ finance data.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
The company carries forward every month’s net income from P& L
statement to the next month’s opening balance in balance sheet.
The Holding Company does the consolidation of subsidiaries’ assets
based on its group’s currency - USD.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

5. Solutions Architecture:
The solution that we are demonstrating in this article makes use of SAP BW
system , our SAP BW system runs on SAP HANA in-memory database to
store, retrieve and process data in real-time. Our SAP BPC NW 10.0 system
runs on top of SAP BW.
The SAP BPC system provides various front end tools for business users to
perform planning, forecasting, consolidation, reporting and data management
functions, these font end tools are accessed via MS Office Tools and also a
web browser.
The financial data and also it’s supporting master (or dimension members)
data from various data sources and source systems can be extracted into
SAP HANA database either in real-time or in a near real-time mode as
needed.
Users can access the SAP BW system through SAP GUI – a Windows
desktop client, the SAP BW system enables users to review and manage the
collated data.
The following diagram explains our integrated consolidation solution reference
architecture, readers will learn and butter understand the various technologies
and its interfaces, including
SAP HANA
SAP BPC
SAP BW
SAP ECC
SAP BusinessObjects
Other Source Systems and Data Sources

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

Figure – 4: Our solutions proven reference architecture

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

5.1 Source Systems and Data Sources: Sample
Our solutions collect subsidiaries data from multiple systems and data sources,
including SAP GL system, Oracle GL systems and File systems. Following diagram
demonstrates our overall data flow between the source systems and the BPC
consolidation model

Figure – 4.1: Our solution source systems and data sources

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

5.2: Real-Time Data Management:
We use the following technology capabilities to manage our consolidation solution
data management, data mapping, data conversion, data transformation and data
load process
Data Management Capabilities - Best Options
#1 - SAP HANA Data Management Capabilities
#2 - SAP BW - BI Content
#3 - SAP BusinessObjects Data Services Capabilities
#4 - SAP BPC Data Manager Capabilities
#5 - SAP BW – Generic Extraction

Figure – 4.2: Our solution data management tools and functions
Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

6. Solutions Building Blocks: CubeInsights, Inc.’s
subsidiaries/entities are exporting their financial data to SAP BW. These data
are then transferred to SAP BPC cube. The Holding Company consolidates
subsidiaries’ financial data based on its accounting policy and reports the
consolidated data to Securities & Exchange Commission to comply with the
legal requirements.
#

Solution Building Blocks

System/Infrastructure

Technical Details

1

Environment : ENV075_JUL08

An environment is a SAP BPC
system artefact

An environment logically groups and
organizes all the SAP BPC application
components such as model, dimensions,
logic, etc.

2

Model : CONSOLIDATION

Model is a SAP BPC system
artefact. Model can be classified
as a main model and supporting
model.

A model is an SAP HANA optimized realtime info, and it holds the financial data
for consolidation.

3

Model : IC_MATCHING

A model is an SAP HANA optimized realtime info, and it holds the IC data for IC
matching & booking.

4

Model : OWNERSHIP

A model is an SAP HANA optimized realtime info, and it holds the Ownership data
to be used for consolidation.

5

Model : RATES

A model is an SAP HANA optimized realtime info, and it holds the exchange rates
data.

6

Dimensions : ACCOUNT, AUDITTRAIL,
CATEGORY, ENTITY, FLOW, INTERCO,
RPTCURRENCY, SCOPE, TIME,
IC_AUDITTRAIL, O_ACCOUNT,
INPUTCURRENCY, R_ACCOUNT, R_ENTITY

Dimension is a SAP BPC system
artefact. Dimension can be of any
type - . A,D,C,R,E,G,I,S,T& U.

A dimension is an SAP HANA optimized
real-time info, and it holds master data
such as ACCOUNT, AUDITTRAIL, etc....

7

Data Manager Packages, Scripts, Process
Chains, Logic Scripts, Input Forms, Reports &
Journal Templates

These are SAP BPC artefacts
and used to automate running of
tasks, apart from accepting the
inputs from users and displaying
the data to the users.

These are used to accept parameters
from the users and then run logic
scripts/BADIs using these parameters.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
8

Consolidation Monitor

Consolidation Monitor is an SAP
BPC artefact and a new feature
of SAP BPC 10.

Consolidation is used execute closing
activities and monitor its status. It is also
used to perform currency conversion and
to set the work status for data segments.

9

Controls Monitor

Controls Monitor is an SAP BPC
artefact and a new feature of
SAP BPC 10.

Controls Monitor is used to run validations
on data i.e. to validate the GL data.

10

Ownership Manager

Ownership Manager is an SAP
BPC artefact and a new feature
of SAP BPC 10.

Ownership Manager is used to create
ownership structure and to accept
ownership data from users. Also, it
generates system proposals using the
ownership data.

11

Business Rules – Methods

The Methods business rules are
is a SAP BPC application
artefact. Consolidation Methods
definitions are stored in the BR
table and are defined at the
environment level.

12

Business Rules – Methods Based Multipliers

Methods Based Multipliers are a
BR table and is an SAP BPC
artefact. Methods based formulae
are stored in this table at the
environment level.

13

Business Rules – Eliminations and
Adjustments

Elimination and Adjustments
rules are defined at the model
level and stored in this table.

14

Business Rules – Carry Forward

Carry Forward rules are defined
at the model level and stored in
this table.

15

Business Rules – Account Based Calculations

Account Based Calculations rules
are defined at the model level
and stored in this table.

16

Business Rules – Intercompany Bookings

Intercompany Bookings rules are
defined at the model level and
stored in this table.

17

Business Rules – US Eliminations

US Eliminations rules are defined
at the model level and stored in
this table.

18

Business Rules – Equity Pickup

Equity Pickup rules are defined at
the model level and stored in this
table.

19

Business Rules – Currency Translation

Currency Translation rules are
defined at the model level and
stored in this table.

Author:
Murugesan Annamalai

10/16/2013

Used to perform consolidation.
(see below for more functional details)

Used to perform currency translation

Chief Architect:
Jothi Periasamy


______________________________________________________________

Assumptions (Out of Scope):
Since the scope of the article is specific to Business Rules alone, we will be
focussing only on business rules and the necessary components to implement
the business rules.
In this article, we won’t be able to explain the following key functions of
SAP BPC NW 10.0 as it’s out of scope for this article
Journal Configuration
Ownership Calculations
Work Status Setup
Business Process Flow
Reports Generation
Data Input Forms for Manual Data Management
Security and Other SAP BPC NW 10.0 functions
Without proper and quality data it’s practically impossible to implement any
business rules. Data plays a significant role in implementing business
rules, please make sure you have valid data sets before we go for any
implementation steps, data includes
All dimension data
All model (transaction or actuals) data
Rate Data
Ownership Data
GL Posting Data
Intercompany Data
In this article we are not providing any sample data, it has been assumed
that the users are completely responsible for setting up their own data
Please feel free to contact us for any help and support to implement any of
the above functions. As a community service we support you...

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

7. Entity Structure:
The following diagram shows the entity structure of the Holding Company. US
and Canadian entities are part of North America region whereas Germany &
UK are part of Europe region. And, Singapore and India are coming under
Asia Pacific region. All the regions are coming under the Holding Company
which is at the top of the entity structure.

Figure – 5: Entity Structure

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

8. Ownership Structure:
The following picture shows the Ownership structure for the Holding Company
– CubeInsights, Inc. The Holding Company has invested in its’ subsidiaries –
US, Singapore and Germany.
While US have invested in Canada with 70% stake and Singapore in India
with 80% stake, Germany has invested in UK with 20% stake. As for the
Holding Company, it has 80% stake in the US subsidiary, 80% stake in the
Singapore subsidiary and 90% stake in the German subsidiary.
The Holding Company uses this information to consolidate assets of its
subsidiaries and applies Purchase, Proportionate or Equity method
accordingly.

Figure – 6: Ownership Structure

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

9. Business Rules: Configuration
The following table lists out the business rules along with their objectives and
sample scenarios:
BR #
1

Business Rule
Methods

Objective
To define different
consolidation methods
based on the ownership
control percentage

Sample Business Scenario
Business Scenario- 1: Equity, Proportionate &
Purchase Methods
If the parent company has less than 25% control/stake
over the child/subsidiary, Equity method has to be
used when consolidating financial assets of the parent
and child.
If the parent company has less than 50% control/stake
over the child/subsidiary, Proportionate method has to
be used when consolidating financial assets of the
parent and child.
If the parent company has more than 50%
control/stake over the child/subsidiary, Purchase/Full
method has to be used when consolidating financial
assets of the parent and child.

2

Methods Based
Multipliers

When consolidating
financial assets using
Purchase method, parent
company’s investment in
the subsidiary needs to be
eliminated(i.e. zeroed).

Business Scenario- 2 : Purchase Method
Parent Company – Holding company, has invested $
1,40,000 in its subsidiary – US.
1,30,000 in its subsidiary – SG.
1,30,000 in its subsidiary – DE(Germany).
Parent Company – SG, has invested $ 1,20,000 in its
subsidiary – IN(India).
Since Holding Company has more than 50%
stake/ownership in its subsidiaries – US, SG, DE and
IN, Purchase method will be used to consolidate
financial assets.
Since purchase method is used for consolidation,
parent company’s investment in the
subsidiaries($5,20,000) will be off-set using formula
defined under the Methods Based Multipliers section.

Formula defined under the
Methods Based Multipliers
section will be used to offset the parent’s
investment amount in the
subsidiary.
Off-setting of investments
is done through formula
defined under Methods
Based Multipliers.

3

Elimination and
Adjustments

Author:
Murugesan Annamalai

To define the business
rules to perform
eliminations, adjustments,
reclassifications and
minority interest
calculations.

Business Scenario- 3 : Purchase Method.

10/16/2013

1,40,000 in its subsidiary – US.
1,30,000 in its subsidiary – SG.

Chief Architect:
Jothi Periasamy


______________________________________________________________
1,30,000 in its subsidiary – DE(Germany).
Parent Company – SG, has invested $ 1,20,000 in its
subsidiary – IN(India).
Since Holding Company has more than 50%
stake/ownership in its subsidiaries – US, SG, DE and
IN, Purchase method will be used to consolidate
financial assets.
Since purchase method is used for consolidation,
parent company’s investment in the
subsidiaries($5,20,000) will be eliminated using
business rules defined under the Eliminations and
Adjustments section.

When consolidating
financial assets using
Purchase method, parent
company’s investment in
the subsidiary needs to be
eliminated(i.e. zeroed).
Elimination of investments
is done through business
rules defined under the
Eliminations and
Adjustments section.

4

Carry Forward

To define business rules
to perform carry forward
process to carry forward
the closing balances for
certain accounts for the
current financial period to
the next financial period.

Business Scenario- 4 : Closing Balances – Carry
Forward
Closing balance for the Cash account for the period –
Dec, 2011, is $10,000.00
Closing balance for the Machinery & Equipment
account for the period – Dec, 2011, is $20,000.00
Closing balance for the Trade Receivables account for
the period – Dec, 2011, is $30,000.00
Retained earnings for the current year - Dec, 2011, is
$10,00,0000.00
Business Rules defined under the Carry Forward
section will be used to carry forward the above closing
balances for the period – Dec, 2011, to the opening
balances for the next financial period – Jan, 2012.

5

Account Based
Calculations

To define rules to perform
account reclassifications,
in particular when
generating cash flow
statements.

Business Scenario- 5 : Account Reclassification
When generating cash flow statement, the company wants
to reclassify the following accounts:
‘ ANI Transfer’ account as ‘Net Income’ account
‘Depreciation-Machinery’ as ‘Add Back Depreciation’
account

To reclassify :
‘ ANI Transfer’
account as ‘Net
Income’ account
‘DepreciationMachinery’ as ‘Add
Back Depreciation’
account
Account based
calculations rules will be
used.

6

Intercompany
Bookings

Author:
Murugesan Annamalai

To define rules to book
differences that arises

Business Rules’ defined under the Carry Forward section,
will be used to carry forward the above closing balances to
the opening balances for the next financial period – Jan,
2012..

Business Scenario- 6 : IC Matching/Booking

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
among intercompany
transactions.

The entities – Holding Company, US, SG and IN, have the
following intercompany transactions happened among
them:
Holding Company has IC Receivables transactions
with US entity.
US entity has IC Payables transactions with the
Holding Company.
SG entity has IC Receivables transactions with India
entity.
India entity has IC Payables transactions with SG
entity.
Holding Company has IC Sales transactions with US
entity.
US entity has IC COGS transactions with the Holding
SG entity has IC Sales transactions with India entity.
India entity has IC COGS transactions with SG entity.
Business Rules will be used to match these IC transactions,
and to book the differences among them, if any.

7

Currency
Translation

currency translation from
one currency to another
currency.
Some entities/companies
may have their financial
data in their local
currency. But, they may
have a requirement to see
the data/report using their
group/regional currency.

Business Scenario- 9 : Currency Conversion from SGD
to USD
Singapore entity has its financial data in its local currency –
Singapore Dollar. And, wants to see the data in US Dollar.
The following data needs to be converted from local
currency to US Dollar:
Accounts Receivable
Cash
Intercompany Receivables

Currency Translation rules
perform this function.

Third Party Sales
Intercompany Sales
Material Cost
Business Rules will be used to perform currency conversion
from Singapore Dollar to US Dollar.

8

US Eliminations

US eliminations for
managerial accounting.
US elimination rules can
be run only thru the script
and NOT through
Consolidation Monitor.

In a managerial accounting scenario,
Group generates revenue by exchanging goods and
services among the subsidiaries/entities.
Group want to eliminate the revenue generated among
the subsidiaries.
US elimination BRs will be used to eliminate the
revenue generated among the subsidiaries.

9

Equity Pickup

A method of re-evaluating
the investments owned by
a holding company,

The Equity Pickup adjustment offsets the historical cost in
local currency, showing the actual value of the equity
owned.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
allowing the parent to
realize changes in equity.
This results in the holding
company’s balance sheet
showing the current value
of the corresponding share
in the equity of the
subsidiary.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

10. Relationship Between Business Rules:
The following diagram shows the relationship among business rules.
One ‘Elimination and Adjustments’ rule can have multiple ‘Methods
Based Multipliers’ rules.
One ‘Methods Based Multipliers’ rule can have multiple ‘Methods’
rules.

Figure – 7: Relationship Among BRs

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

10.1 Example: Relationship Among Business Rules
The following diagram shows the relationship among business rules with
sample data.
One ‘Elimination and Adjustments’ rule[P2_ELCOI1] has multiple
‘Methods Based Multipliers’ rules[P2_RULE010 & P2_RULE060]
One ‘Methods Based Multipliers’ rule [P2_RULE010] has multiple
‘Methods’ [100, 20,101 & 50].

Figure – 8: Relationship Among BRs - Example

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11 Business Rules Tables
11.1 Business Rules Table: Methods
The following picture shows the BR table meant for Methods:

Figure – 9: Methods Table

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.1.1 Business Rules Table Columns: Methods
The following table shows columns, along with their objectives and sample
values, from Methods BR table:
BR #

BR Table Column

Column Objective

1

Method Code

The Method code is a unique identifier
arbitrarily defined between the value 1
and 98. The value 99 is a
system reserved value representing all
method code values. Method codes are
referenced in the Ownership
Manager as the Consolidation Methods
assigned to specific Entities within a
Group hierarchy.

20
50
100
101

2

Description

Description for the method code. This
can be any text.

20 - Equity
50 - Proportionate
100 - Full
101 - Holding

3

Method Type

4

Share Range

Share Range represents the share
range for a given method. The
consolidation method can be
automatically derived by ownership
calculations based on share range rules.

0.00<, <= 0.25
0.25<, <= 0.50
0.50<, <= 1.00

5

Applicable Percent
Consolidation

Applicable Percent Consolidation holds
the value (e.g. ‘100’) that needs to be
copied to the Percent
Consolidation (‘PCON’) as part of
ownership calculations

30
50
100
100

Author:
Murugesan Annamalai

Method Type assigns the appropriate
consolidation logic to the method code
with the following
list of values:

10/16/2013

Sample Values

D – (disposed at last
year-end)
E – (Equity)
G – (Global)
H – (Holding)
L – (Leaving during the
year)
N – (New)
P – (Proportionate)

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.2 Business Rules Table: Methods Based Multipliers
Method Based Multipliers control how the amounts or the destination accounts
should be calculated during the consolidation process. Method-based
Multipliers are defined by a name (ID), a description, and a type (the type
relates to the consolidation method(s) using the method-based multiplier).
The calculation of consolidated data is controlled by which multiplier being
used, the consolidation method assigned to the current entity, and its
Intercompany partner (if applicable).
The following picture shows the BR table(Header) meant for Methods Based
Multipliers:

Figure – 10: Methods Based Multipliers (Header)
The following picture shows the BR table (Details) meant for Methods Based
Multipliers:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

Figure – 11: Methods Based Multipliers (Details)

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.2.1 Business Rules Table Columns: Methods Based
Multipliers
values, from Methods Based Multipliers BR table:
BR
#

BR Table
Column

1

ID

2

Description

3

Entity Method

4

IINTCO Method

5

ALL Formula

Author:
Murugesan Annamalai

Column Objective

Sample Values

To uniquely identify the BR table’s column entry

P2_RULE010

Description can be any text.

P2_RULE010 multiplier for the
methods – Equity, Proportionate &
Full.

Entity Method column is used to specify a filter
restriction. This Method-based Multiplier is only
applied to data records where the Entity dimension
member is assigned to Proportional (‘50’), Full
(‘100’) and Holding (‘101’) Method Codes.

•
•
•
•

100 for Full method
20 for Equity method
50 for Proportionate method
101 for Holding

INTCO Method column is also used to specify a
filter restriction. This Method-based Multiplier is
only applied to data records where the INTCO
dimension member is assigned to Proportional
(‘50’), Full (‘100’) and Holding (‘101’) Method
Codes.

•

99 – Intercompany members
with any method
20,100 – Intercompany
members with 20 & 100 method
codes

“ALL Formula” column has a corresponding and
matching column in the Business Rules
configuration for “Eliminations and Adjustments”.
In the “Eliminations and Adjustments”
Business Rules configuration, the “ALL Formula”
column contains one or many Account dimension
members.
The formula in the Method-based Multiplier is
applied to the amounts stored on these Account
dimension
Members.

10/16/2013

•

•
•
•

1 : Extract the singed data value
as is(100%)
POWN : Extract POWN% of
signed data
1 – POWN : Extract (1 –
POWN%) value of the signed
data.

Chief Architect:
Jothi Periasamy


______________________________________________________________
6

Group Formula

Group Formula column has a corresponding and
configuration for “Eliminations and Adjustments”.
In the “Eliminations and Adjustments” Business
Rules configuration. the “Group Formula” column
contains one or many Account dimension
members. The formula in the Method-based
Multiplier is applied to the amounts stored on these
Account dimension members. For consolidation of
investments, the group column is used for group
share interests calculation and postings to equity.
For intercompany eliminations, this field is used for
the offsetting clearing account. As a result, this
formula is exactly the same as the “ALL Formula”
column.

•
•
•

1 : Extract the singed data value
as is(100%)
signed data
1 – POWN : Extract (1 –
POWN%) value of the signed
data.

‘

7

8

Minority

Remark

Author:
Murugesan Annamalai

Minority’ column has a corresponding and
Configuration for “Eliminations and Adjustments”.
In the “Eliminations and Adjustments” Business
Rules configuration. The “Minority” column
contains one or many Account dimension
members. The formula in the Method-based
Multiplier is applied to the amounts stored on these
Account dimension members.

•
•
•

To capture the remarks or documentation or User
instructions

10/16/2013

1: Extract the singed data value
as is (100%)
signed data
1 – POWN: Extract (1 – POWN
%) value of the signed data.

Method code 100

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.2.1.1 Example: BR in Action (Step By Step Execution)
The following steps show the BR executions while financial assets of two
entities are consolidated using Purchase/Full method.
The following step shows how the parent’s investment made in the
subsidiary has been offset by using Purchase method as the Parent has
more than 50% stake in the subsidiary
As per the parent entity’s accounting policy, parent’s investment (AST005)
in the subsidiary has to be eliminated i.e. zeroed when Purchase method is
applied for consolidation.
When consolidation process is run from consolidation monitor or
through the script, the following steps are executed:
Step #

Task

1

Data source (Appendix-A) is read for the account AST005 (Investment Account-Purchase),
and the values for parent entity (Holding Company), subsidiary/INTCO (I_US) and signed
data has been identified and recorded for subsequent processing.

2

For the investment account (Purchase), parent entity has been identified and recorded for
subsequent processing (Holding Company). This parent entity has stake in the subsidiary
(I_US).

3

For the investment account (Purchase), subsidiary/INTCO is noted (I_US) in the data
source. This is the subsidiary wherein the parent (Holding Company) has stake.

4

Singed data (amount invested) is noted ($140000). This is the amount the parent has
invested in the subsidiary. During consolidation, this amount will be adjusted depending on
the control the parent exercises over the subsidiary.

5

Now, the system looks for the base level entity (Holding Company) within the Ownership
hierarchy.

6

System looks for the base level entity (I_US) in the Ownership Hierarchy.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
7

And, then the system looks for the common parent for both entities – Holding Company
and I_US. In this case, it is the top level entity – S_World.

8

Now, for the group – S_World, the system looks for ownership data with the Entity as
Holding Company on the right hand side.

9

For the entity – Holding Company, current consolidation (101 - Holding) method has
been identified and recorded.

9.1

System goes through the BR table for Elimination and Adjustments rules, and looks for
record/rule with AST005 as Source account.

9.2

For the Source account – AST005, Destination account (AST005) is noted. This is the
account to which, the final adjusted amount will be posted.

9.3

Multiplier ID has been identified and recorded (P2_RULE060). Formula in this rule will be
applied to the amount read from the data source and the final amount will be posted under
the Destination account.

10

System now goes through the Methods Based Multipliers BR table and looks for the
record/rule corresponding to the ID: P2_RULE060. It then looks for a record with the entity
method as 101. This is the entity method read at Step 9.

11

System looks for the column corresponding to the column noted in Step 9.2(Destination
All Account) i.e. All Formula column.

12

For the entity method – 101, and Formula (1) under the All Formula is now identified and
recorded for subsequent processing.

13

Signed data noted in Step 4($140000) is multiplied by the formula (1) and posted to the
Destination account has been identified and recorded in Step 9.2(AST005).
Steps 1 through 13 are applied to other records with AST005 as the accounts in the CSV
file and amount is posted. And the final posted/offset amount is: $520,000.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
Below screen image shows the steps that are explained in the above
table in a sequence, please follow the sequence number and then
compare the table above.

Figure – 12: Business Rules in Action

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.3 Business Rules Table: Eliminations and Adjustments
The following picture shows the BR table (General section) meant for
Eliminations and Adjustments:

Figure – 13: Eliminations and Adjustments- General View

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
values, from Eliminations and Adjustments BR table(General Section):
BR #

BR Table
Column

Column Objective

Sample Values

1

ID

Logical ID used to identify the rule in the Elimination and
Adjustments BR table.

P2_ELCOI1
P2_ELCOI2
P2_ELCOI3

2

Description

Description of the logical ID, which is used to identify the
rule in the Elimination and Adjustments BR table.

P2_ELCOI1
P2_ELCOI2
P2_ELCOI3

3

Source
Audit

Used to filter the data source records. If specified, BR will
be applied to those records with that particular data source.
If left blank, all the records will be processed and BRs will
be applied accordingly.

Journal
INPUT_DATA

4

Destination
Audit

Destination data source member.

AJ_COI1
AJ_COI2
AJ_COI3

6

Group Type
Filter

7

Entity
Property
Filter

8

Adjustment
Type

Author:
Murugesan Annamalai

If specified, final amount to be adjusted/offset will be written
under this data source.
If not specified, final amount to be adjusted/offset will
written under the Source data source.

The CONSO_TYPE property value from the Groups
(Currency) dimension. If, for example, you have the
GROUP GROUP1 with conso_type = A, all the Automatic
Eliminations with Blank are available for all groups. The
Automatic Eliminations with Group_filter member = A are
available for GROUP1 and all groups with Group filter
member = A.

A-A

This field is only used for intercompany eliminations. If this
field contains a value, the system looks for the existence of
a corresponding PROPERTY in the ENTITY dimension, and
only performs the elimination if the ENTITY. The INTCO
partner has the same value in this property.

OWNER
INTCO
HIR
CALC
CURRENCY
CONTROL_LEVEL

Used to specify the adjustment type. This type can be
Equity, Proportionate, New Company or Leaving method.
Else, if adjustment type has to be other than these four,

10/16/2013

E – (Equity)
P–
(Proportionate)

Chief Architect:
Jothi Periasamy


______________________________________________________________
leave this field as blank.

9

Adjustment
Level

10

Other
Dimensions
Filter

N – (New
Company)
L – (Leaving
Company)

This field must contain an integer value ranging from 0 to 99
and can be used to order the sequence of execution of the
various ELIM rules, if desired.

This field can be used to define a filter controlling the region
where the elimination can be applied. It can contain the
following values:

•
•

0
1
2
3

Blank(No Filter)
SINGEDDATA > 10
METHOD = 101
PPOWN <>0
I_POWN < POWN

Blank (No Filter)
An expression defining one or more filters. These
can be applied to any combination of the
following information:
o The SIGNEDDATA amount (example:
SIGNEDDATA> 10)
o Any ACCOUNT of the OWNERSHIP
cube (example: METHOD = 85)
cube as defined in Prior period
(example: PPOWN <>0, where
PPOWN is Prior period’s POWN
account)
cube as assigned to the
INTER_COMPANY partner (example:
I_POWN < POWN)

The filters can be concatenated with the AND operand.
Alternatively, any valid SQL expression filtering the values
in any desired way can be used. In this case the syntax
must strictly comply with SQL requirements, for example
single quotes around the members IDs.

11

Force
Destination
Members

This field can be used to enforce the destination member of
any dimension existing in the MAIN cube.

This field may contain the
following values:

•
•

Author:
Murugesan Annamalai

10/16/2013

Blank (No
Change)
An expression
enforcing the
value for one or
more dimensions

Chief Architect:
Jothi Periasamy


______________________________________________________________
of the MAIN cube.
Each dimension
must be separated
by a comma
(example:
CATEGORY=BUD
GET, ENTITY=
NewYorkBranch)

12

Ownership
Filter

Filters the ownership value

For example, to apply a rule
to only those entities whose
ownership percentage in a
group or scope is larger than
70%, you enter POWN >
0.7.

The following picture shows the BR table (Details section) meant for
Eliminations and Adjustments:

Figure – 14: Eliminations and Adjustments- Detail View
Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.3.1 Business Rules Table Columns: Eliminations and
Adjustments
values, from Eliminations and Adjustments BR table (Details Section):
BR #

BR Table Column

Column Objective

1

ID

Logical ID to identify the eliminations
and adjustments rule

2

Description

Description of the eliminations and
adjustments rule

3

Source Account

Select accounts to include. Use a base
or parent member, or a TYPEELIM or
DIMLIST property value

AST001
AST002
AST003
AST004
AST005

4

Source Flow

Select flow members to include. Use a
base or parent member, or a TYPEELIM
or DIMLIST property value

Balance
Increase
Opening
Decrease
Blank(all records will
be processed)

5

Reverse Sign

Reverse the sign of the data based on
account type

Checked or not
checked box

6

Destination All Account

Target account for the All Formula
percentage in the Method - Based
Multiplier table. Use a base or parent
member, or a TYPEELIM or
DIMLIST property value

AST001
AST002
AST003
AST004
AST005

7

Destination Group
Account

Target account for the Group Formula
Multiplier table. A base or parent
Account, a TYPEELIM or DIMLIST

AST001
AST002
AST003
AST004

Author:
Murugesan Annamalai

10/16/2013

Sample Values
ELIM_RULE1

Rule to offset the
investment made by the
parent in the subsidiary.

Chief Architect:
Jothi Periasamy


______________________________________________________________
property value in the account dimension

Destination Minority

9

Destination Equity
Account

10
Destination Flow

Target account for Minority Formula
Multiplier table. A base or parent
Account, a TYPEELIM or DIMLIST
property value in the account dimension

AST001
AST002
AST003
AST004
AST005

Target account for the All Formula
Multiplier table for the EquityMethod.
A base or parent Account, a TYPEELIM
or DIMLIST property value in the
account dimension

AST001
AST002
AST003
AST004
AST005

Target base level flow member

8

AST005

Balance
Increase
Opening
Decrease
Blank(all records will
be processed)

11

Multiplier

The Rule ID from the Method - Based
Multiplier table

P2_RULE010
P2_RULE020

12

Force Closing

If Y it generates an extra record on the
closing flow, otherwise leave blank

Checked
Unchecked

13

Swap Entity INTCO

If Y, it will swap the member of the Entity
dimension with the intercompany
member

Checked
Unchecked

14

Force INTCO Member

To hard code the target intercompany
member instead of using the source

Checked
Unchecked

15

Periodic CALC

Can be used in a YTD Model (or an
application) when the ownership
percentage should be applied on the
periodic values

Checked
Unchecked

16

Remark

Author:
Murugesan Annamalai

Remark text about the rule.

10/16/2013

Eliminations and
adjustments rules.

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.4 Business Rules Table: Carry Forward
The following picture shows the BR table meant for Carry Forward:

Figure – 15: Carry forward business rule

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.4.1 Business Rules Table Columns: Carry Forward
values, from Carry Forward BR table:
Column Objective

Sample Values

BR #

BR Table Column

1

Source Account

2

Source Flow

3

Source Audit

4

Destination Account

The destination account - base level or
parent. If blank, inherit
from source.

BS111
BS121
BS122
BS231

5

Destination Flow

The destination flow - base level or
parent. If blank, inherit from
source.

Balance
Opening
Increase
Decrease

6

Destination Audit

The destination data source - base level
or parent. If blank, inherit
from source.

INPUT_DATA
ADJ_BCF

7

Reverse Sign

Reverse the sign of the source value
based on an account type

Checked
Unchecked

Author:
Murugesan Annamalai

To identify the base/parent level
accounts to which the BRs are to be
applied. This can also be DIMLIST
property of accounts. DIMLIST allows
accounts to be grouped and selected for
BRs to be applied.

BS111
BS121
BS122
BS231

To identify the base/parent level Flow
members for which, BRs are to be
applied. This can also be DIMLIST
property which allows Flow members to
be grouped and selected for BRs to be
applied.

Balance
Opening
Increase
Decrease

To identify the base/parent level data
source members for which, BRs are to
be applied. This can also be DIMLIST
property which allows data source
members to be grouped and selected for
BRs to be applied.

10/16/2013

INPUT_DATA

Chief Architect:
Jothi Periasamy


______________________________________________________________
8

Audit Type

Select data source type to include: A All, I - Input, M - Manual

A – (All)
I – (Input)
M – (Manual
Journal)

9

Same Period

If selected, the source time period is the
same as the destination.
Otherwise, the source data is the last
period of the prior year

Checked (source
time period is same
as destination time
period)
Unchecked(source
data is the last data
of the prior year)

10

Apply To YTD

In a periodic model, select to calculate
the YTD value to copy

Checked (to
calculate YTD value
to copy)
Unchecked

11

Remark

Remark text about the carry forward
rule.

Author:
Murugesan Annamalai

10/16/2013

Remark text

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.5 Business Rules Table: Account Based Calculations
The following picture shows the BR table meant for Account Based
Calculations:

Figure – 16: Account Based Calculations Business Rules

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.5.1 Business Rules Table Columns: Account Based
Calculations
values, from Account Based Calculations BR table:
BR #

BR Table Column

Column Objective

Sample Values

1

ID

Logical ID used to identify the rule in
the Account Based Calculations BR
table.

CF

2

Description

Description of the logical ID, which is
used to identify the rule in the Account
Based Calculations BR table.

Cash Flow Calculations

3

Source Account

The source account base level, parent,
or dim list property value

PL700
AST002
LEQ002

4

Category

The source category - base level,
parent, or DIMLIST property value

Actual
Plan

5

Source Flow

The source flow base level, parent, or
dim list property value

Balance
Opening

6

Source Audit

The source data source base level,
parent, or dim list property
value

TOTAL_ADJ
AJ_COI1
AJ_COI2
AJ_COI3

Destination Account

The destination account base level or
parent. If blank, inherit
from source.

CF101
CF102
CF103
CF104

8

Destination Category

The destination category - base level,
parent, or property value

Actual
Plan

9

Destination Flow

The destination flow - base level or
parent. If blank, inherit from source.

Balance
Opening

The destination data source - base

TOTAL_ADJ

7

Author:
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10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
10

Destination Audit

level or parent. If blank, inherit from
source.

AJ_COI1
AJ_COI2
AJ_COI3

11

Reverse Sign

Reverse the sign of the source value
based on account type (ex: INC , EXP,
AST, etc)

Checked
Unchecked

12

Source Period

13

Source Year

If not specified, the source year is the
same as the destination. This could
also be used in planning scenarios.

2011
2012

14

Force INTCO Member

To hard code the target intercompany
member instead of using the source

Checked or
Unchecked

15

Apply To YTD

In a periodic model, select to calculate
the YTD value to copy. This could also
be used in planning scenarios.

Checked or
Unchecked

16

Level

This controls the sequence of execution
for each row/rule.

0
1
2

17

Remark

Remark text

Remark text

Author:
Murugesan Annamalai

If not specified, the source time period
is the same as the destination. This
could also be used in planning
scenarios.

10/16/2013

-1

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.6 Business Rules Table: Intercompany Bookings
The following picture shows the BR table meant for Intercompany Bookings:

Figure – 17: IC Bookings Business Rule

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.6.1 Business Rules Table Columns: Intercompany
Booking
values, from Intercompany Bookings BR table:
BR #

BR Table Column

Column Objective

Sample Values

1

ID

Logical ID used to identify the rule in the
Intercompany Bookings BR table.

BS_ACCT

2

Description

Description of the logical ID, which is used to
identify the rule in the Intercompany Bookings BR
table.

Parent Matching

3

Type

Determines whether the buyer or seller receives
thedifference.
• S - Seller: Buyer receives the difference
• B - Buyer: Seller receives the difference
• G - Greatest: Entity with the greatest amount
receives the difference

S
B
G

4

Other Destination
Dimension

Target dimension member other than account,
flow, and intercompany.

Blank

5

Booking
Destination

Target data source to which, the difference is to be
posted.

ICDIFF

6

Max. Booking
Amount
Debit Account

The limit of the balancing entry. Differences above
this amount will not be posted.

100000

Debit account for the difference

ICDIFFERENCE

Debit INTCO

Debit intercompany for the difference

I_US

Credit Account

Credit account for the difference

LEQ008

7

8

Author:
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10/16/2013

Chief Architect:
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______________________________________________________________
9
Balance
Debit flow for the difference

10

Credit Flow

11

Credit INTCO

Credit intercompany for the difference

I_US

12

Remark

Remark text about the IC booking rule.

Remark text

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.7 Business Rules Table: US Eliminations
The following picture shows the BR table meant for US Eliminations:

Figure – 18:US Eliminations Business Rule

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.7.1 Business Rules Table Columns: US Eliminations
values, from US Eliminations BR table:
BR #

BR Table Column

Column Objective

Sample Values

1

Elimination ID

ID used to identify the elimination rule.

ICELIM

2

Source Audit

This can be a base level or parent data
source member. Dim list property can
also be used to filter members.

INPUT_DATA

3

Destination Audit

The destination data source base level
or parent. If blank, inherit
from source.

US_ELIM

4

Remark

Remark text

US elimination

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.8 Business Rules Table: Currency Translation
The following picture shows the BR table meant for Currency Translation:

Figure – 19: Currency Translation Business Rule

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

11.8.1 Business Rules Table Columns: Currency
Translation
values, from Currency Translation BR table:
BR #

BR Table Column

1

ID

2

Description

3

Source Flow

4

Destination Account

5

Destination Flow

6

Formula

Author:
Murugesan Annamalai

Column Objective

Sample Values

Rule ID

AVG

Description of the rule.

Average Rate

The Source Flow column is used to
restrict the currency translation of
average rate to one or many Flow
dimension members. In this exercise,
the currency translation for ‘AVG’ rate
types is restricted to closing
balance (“Balance” source flow) records

Balance
Opening
Increase
Other

The Destination Account column is used
to specify which account to post the
currency translation results to.
When left blank the destination account
is the same as the source account.

AST001
AST002
AST003
LEQ001
LEQ002
LEQ003

The Destination Flow column is used to
specify which flow to post the currency
translation results. When left
blank the destination flow is the same as
the source flow.

Balance
Opening
Increase
Other

Formula. Formula syntax exists to
perform mathematical operations. In this
case, the first formula is simply to
find the AVG rate type in the Rate Model
and use it in the currency translation
calculation to translate local
currency records (reporting currency
‘LC’) into group and reporting currency
records. The second formula,
[COPYLC], copies the current records
LC values for any Entity defined with a
FX_TYPE property value of
“US”.

[AVG]
[COPYLC]

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

7

Force Closing

8

Periodic Calc

9

Entity FX Type

10

Remark

Author:
Murugesan Annamalai

The Force closing column will
automatically carry forward the
calculation into the closing flow. Since
this rule only applies to the closing flow
(i.e. Source Flow = ‘Balance’), this flag is
left blank. Otherwise, records would
double up.

Checked
Unchecked

The Periodic Calc column is used to
restrict the currency translation to a
period movements instead of a year-todate accumulated amounts within a
Reporting Model that is defined with a
“Data Entry Mode” as ‘YTD’.

Checked
Unchecked

The Entity Fx Type column is used to
restrict currency translation to a specific
Entity based on the property
“FX_TYPE” in the Entity dimension.

US

Remark text

Remark text

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

12. Business Rules: Implementation
12.1 Business Scenario – 1: Implementation
Business Scenario - 1:
If the parent company has less than 25% control/stake over the
child/subsidiary, Equity method has to be used when consolidating
financial assets of the parent and child.
If the parent company has less than 50% control/stake over the
child/subsidiary, Proportionate method has to be used when
consolidating financial assets of the parent and child.
If the parent company has more than 50% control/stake over the
child/subsidiary, Purchase/Full method has to be used when
consolidating financial assets of the parent and child.
Business Rules Implemented:
Business Rules for Methods(BR #1) will be configured to implement the
above.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[A]. Launch SAP BPC web admin. Interface.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[B]. Go to Rules section.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[C]. Select Business Rules link.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[D]. Click Methods link.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[E]. Enter the data as shown below and save the data.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

12.2 Business Scenario – 2 & 3 : Implementation
Business Scenario – 2 & 3:
Parent Company – Holding company, has invested $ 1, 40,000 in its
subsidiary – US.
subsidiary – SG.
subsidiary – DE (Germany).
Parent Company – SG has invested $ 1, 20,000 in its subsidiary – IN
(India).
Since Holding Company has more than 50% stake/ownership in its
subsidiaries – US, SG, DE and IN, Purchase method will be used to
consolidate financial assets.
Since purchase method is used for consolidation, parent company’s
investment in the subsidiaries ($5, 20,000) will be off-set using formula
defined under the Methods Based Multipliers section.
Business Rules for Method Based Multipliers(BR #2) and Business
Rules for Elimination and Adjustments(BR #3) will be configured to
implement the above.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[A]. Ensure that the data for Dec, 2011 is uploaded into SAP BPC server and
currency conversion is done on the data.
[B]. Go to Home workspace.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[C]. Go to Ownership manager as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[D]. Key-in Ownership data for the period – Dec, 2011, as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[E]. Launch web admin interface.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[F]. Go to Business Rules – Methods section as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[G]. Create Methods data as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[H]. Go to Methods Based Multipliers section.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[I]. Create a rule under Methods Based Multipliers section as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[J]. Go to Eliminations and Adjustments section.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[K]. Create a rule under Eliminations and Adjustments as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[L]. Go to Home workspace.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[M]. Click Consolidation Monitor.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[N]. Specify the data context as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[O]. Highlight the top level group and run Consolidation process.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[P]. Click OK button on the following screen.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[Q]. The following report shows the data after consolidation. In the report,
Investments made under Purchase method for all the entities have all been
off-set(highlighted in RED colour).

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________

12.3 Business Scenario – 4: Implementation
Business Scenario - 4:
Closing balance for the Cash account for the period – Dec, 2011, is
$10,000.00
Closing balance for the Machinery & Equipment account for the period
– Dec, 2011, is $20,000.00
Closing balance for the Trade Receivables account for the period –
Dec, 2011, is $30,000.00
Retained earnings for the current year - Dec, 2011, is $10,00,0000.00
Business Rules defined under the Carry Forward section will be used to
carry forward the above closing balances for the period – Dec, 2011, to
the opening balances for the next financial period – Jan, 2012..
Business Rules for Carry Forward (BR #4) will be configured to
implement the above.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[A]. Launch SAP BPC web admin. interface.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[B]. Create a model(BCF_DEMO) as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[C].Go to Business Rules section in the web admin. interface as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[D]. Highlight the model on the right hand side as shown below:

.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[E]. Click the Add/Remove Rule Types button at the top.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[F]. Enable the Carry-Forward rule as shown below:

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


______________________________________________________________
[G]. Go to BR section and click on the Carry- Forward link for the BCF_DEMO
model.

Author:
Murugesan Annamalai

10/16/2013

Chief Architect:
Jothi Periasamy


SAP BPC NW 10.0 on HANA - Consolidation Business Rules- Implementation Guide

SAP BPC NW 10.0 on HANA - Consolidation Business Rules- Implementation Guide

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