Sap teched sapbw_innovatively_nalabothula

BI 211
Leverage SAP BW-BPS Innovatively to
Replace Pervasive Spreadsheet Applications

Leverage SAP BW-BPS Innovatively to
Replace Pervasive Spreadsheet Applications

Venu Kumar Nalabothula MBA, CISA, CIA, PMP
Information Systems Manager
Miller Brewing Company
E-Mail: vnalabothula@mbco.com

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

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

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

SABMiller is a leading global brewery with 149.1 million
barrels in the fiscal year ending March 31, 2006

Europe
Number of breweries: 19
Brands include: Dorada,
North America Dreher, Pilsner Urquell, Peroni
Number of breweries: 8 Nastro Azzurro, Šariš, Tri
Brands include: Miller Lite, Bogatyrya, Tyskie, Ursus
Miller Genuine Draft, Miller
High Life, Milwaukee’s Best

Africa and Asia
Number of sorghum breweries: 29
Number of bottling plants: 17
Brands include: Chibuku
(sorghum), Eagle (sorghum),
Central America Kilimanjaro, Mosi, Haywards,
Number of breweries: 2 Snow, St Louis, Coca-Cola, Fanta
Brands include: Pilsener, South America
Bahia, Suprema, Port Royal, Number of breweries: 15 South Africa
Cristal (bottled water) Number of bottling plants: 9
Brands include: Aguila,
Cristal, Pilsener, Atlas
Brands include: Carling Black
Label, Castle Lager, Castle Lite,
Castle Milk Stout, Sterling Light,
Redd’s, Brutal Fruit, Appeltiser


Microsoft Excel for Business Planning

Pros Cons
Very user friendly Lack of controls

Flexible and easy to learn Error rates 70-90%

Platform for powerful models Inappropriate for storing data

Pivot Tables ―One of the biggest holes in
compliance: business-critical
Excellent for personal use 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


Excel Spreadsheet Challenges

WHY?? “…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,”


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

Modeling Planning Planning Planning Coordination
Functions Interfaces Applications

Investment
CFO Planner

Business Planning and Simulation

Cost Center
Sales Manager Manager

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


BW-BPS Modeling: BW InfoCube

The SAP BW Infocube is the base for
North planning data
Region

Mid West
MGD
South Miller Chill Brand
Lite
Chicago Dallas New York

Sales Office

1 Selection

Sales Office Chicago
North Region Mid West
Brand Miller Lite Characteristics
Region

Mid West
MGD
Volume xx,xxx Bbls
Miller Chill
South Revenue xxx,xxx US$
Lite ……. Key Figures
Chicago Dallas New York
Sales Office

BW-BPS Planning Functions

Functions for Functions for Data Functions for
Simulation Conversion/ Individual
Management Calculations
• Multiple Versions • Currency translation • Formulas
• Planning Sequence • Unit conversion (Rolling Forecast,
• Copy Validation,..)
• Forecast
• Delete • User-Exits
• Excel Capabilities
• Repost
Functions for Basic Functions
Allocation • Manual Planning
• Top down • Attach Documents
Distribution
• Bottom-Up
• Allocations


BW-BPS Checkbook Application Overview

SAP Portal
System / Process
Administrators
BW-BPS / Portal

Maintain Maintain Maintain Maintain
Users & Authorization BPS Portal
roles to checkbook variables roles
Administrators

Maintain Maintain
Regional

Checkbook Cost element
hierarchy hierarchy

Checkbook reporting
Review &
Approve the
Owners
Budget

Update
Checkbook
Checkbook
entries
entries
Sales Financial

Initiate
Accountant

Review &
automatic
Challenge for
approval
accruals
process


BW-BPS Checkbook - Adding Expenses

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

4) Click Save

2) Type or select 3) Type an Amount
values for each field

1) Insert one or more lines


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
Maintenance Month End Process
Budget Owner

Update status
Add expenses and date of Run Checkbook Entries Approve for
Yes
to checkbook expenses as Accrual Report accurate? Accrual
needed

No

Review Checkbook
Update (Run Checkbook Entries Yes
SFA

Send to R3
entries Accrual Report, accurate?
Review & Challenge)

No
SAP R/3

Post Accrual
Journal Entry &
Notify SFA


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
BW-BPS Reports replaced and enhanced ALL existing Excel reports.
Note: The users could not readily generate consolidated reports using Excel in the past.

1. Actual Spent vs Budget Compares actual spent to budget with sight to givebacks &
Fiscal Year Report transfers for a given Plan version and fiscal year.

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

3. Total Spent vs Budget Compares total spent to budget with sight to givebacks &
transfers for a given Plan version and fiscal year,
Fiscal Year Report

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

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

6. Checkbook Budget Fiscal Provides breakout of Actual Spent by status code and Total Spent
compared to budget for a given Plan version and fiscal year with sight
Year Detail Report to givebacks & transfers.


BW-BPS Analytical Reports Contd.

7. Checkbook Budget Provides breakout of Actual Spent by status code and Total
Spent compared to budget for a given Plan version and
Calendar YTD Detail calendar year with sight to givebacks & transfers.
Report

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

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

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

11. Plan Version Summary Compares each plan version by month with sight to givebacks and
Report transfers.

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


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


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
End User BI Integrated Planning
capabilities
To Be powered by IS

Leverage BW-BPS ***
for Planning &
Critical Spreadsheet consolidation
Ensure SOX controls in place for
critical spreadsheets

As Is Development, maintenance and support of
multiple Excel spreadsheets for Marketing /
Sales / Finance and other divisions


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
 Americas’ SAP Users’ Group (ASUG)
www.asug.com

 Related SAP Education and Certification Opportunities
http://www.sap.com/education/

 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


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.


Q&A

THANK YOU FOR YOUR
ATTENTION !

QUESTIONS – SUGGESTIONS – DISCUSSION
please contact: vnalabothula@mbco.com


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