IBM Global Business Services

SAP Business Objects Planning V10.0

2012 IBM Corporation

IBM Global Business Services

Agenda
BPC 10.0 Demo Scenarios

Revenue Planning
HR Planning

Inventory Planning

CAPEX Planning

Cost Planning

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BPC 10.0 Integrated Planning Scenario Overview

Integrated Financial Statements (IFP)

CAPEX Planning Revenue Planning Inventory Planning Cost Center

Planned by CC Planned by Profit Planning
Center (PC) Planned by CC
Planned by CC

Depreciation on Project Planning

Employee Cost
Assets pushed to
(HR) Planning
CC Planning Planned by WBS
Planned by CC

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SAP BPC Planning Scenarios

Revenue Planning

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Revenue Planning Overview

Target setting for next 5 years at regional level.
Target distribution from the regional level to the plant level.
Sale Price is planned at plant level in the local currency for 2013
Sales Volume is planned at plant level in the local currency for 2013
Run Data Manager package to calculate revenue.
Run Currency Translation to convert all local currency revenue values to USD. USD is
the Group Currency.
View Region wise report for Target Vs Budget revenue analysis
Consider a what-if scenario for achievement of targets.
View Sales Dashboard.
View product wise revenue reports.
Actual Vs Budget variance analysis.

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SAP BPC Planning Scenarios

HR Planning

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HR Planning Overview

Headcount Planning
Last year actual headcount will be taken as input by each plant to support
headcount planning
Planning is done for 1 budget year by the plants using Employee Grade &
Employment Type.
Plants will make the adjustment in the budgeted headcount figure in
respective month based on internal projects, expected partitions etc.
HR will take the first cut headcount figures and save it as initial headcount
requirement
After discussion with respective plant, HR shall finalize the headcount
numbers considering the industry dynamics, sharing model, skill crunch etc.

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HR Planning Overview (continued)

Payroll Planning
Planned headcount numbers are available from the headcount planning process for
each plant
Previous years actual payroll cost are taken as the base for payroll planning by each
plant
HR payroll cost planning is done considering Employment type, Employee Grade
HR has been given an option to input the annual increment at employee grade level
either as percentage (%) or fixed amount, which should be applied to selectable wage
type
The planned headcount and planned payroll is used to calculate the HR cost for each
plant

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SAP BPC Planning Scenarios

Inventory Planning

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Inventory Planning Scenario

Material cost estimate for producing 1 unit of finished product can be taken from SAP
ECC system for the plant
The planned sales quantity data in revenue planning will be the base for the quantity of
finished product required for the plant for only the budget year (only 1 year)
Total planned inventory cost will be calculated by multiplying cost estimate for 1 unit of
finished product and planned sales quantity for each plant
Final planned Inventory value for each plant will be approved by plant heads
The Inventory cost for plants will collate to achieve the numbers for the each company
code as bottom up planned targets.
Currency translation will be done to convert the planned inventory cost in input currency
to final group reporting currency
The following details need to be reported
Period wise material cost for each finished good

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SAP BPC Planning Scenarios

CAPEX Planning

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CAPEX Planning Scenario

Monthly depreciation cost for asset type CAPEX, WIP & fixed assets will be planned
along with the capital expenditure cost for 1 budget year
CAPEX items, belonging to a cost center, will be planned monthly under different
buckets like HR cost, Installation cost, Setup cost etc. by each plant
Existing fixed assets & WIP assets value will be available for calculating the
depreciation cost for each plant
Planned depreciation for existing fixed assets will be provided by finance as it will be
captured in other system
Depreciation of planned CAPEX and WIP assets need to be calculated from the
month in which the asset is planned to be capitalized and by providing the useful life
The CAPEX value and depreciation costs for plants will collate to achieve the
numbers for the each company code as bottom up planned targets
Currency translation will be done to convert the budgeted data in input currency to
final group reporting currency
The following details need to be reported
Monthly planned and actual tracking for all 3 asset types

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SAP BPC Planning Scenarios

Cost Planning

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Cost Planning Scenario

Yearly cost center wise cost will be taken from HR planning (HR Cost), CAPEX planning ( capital
expenditure & depreciation), project planning (project expenses). Inventory cost will be taken
into a dummy cost center as it will not be captured at cost center level
Sales value plan be taken from revenue planning as a base for sales related expense planning like
freight, octroi, discount etc.
All the above data will be taken month wise at plant level in local currency, all the other expense
areas are manually planned monthly against the respective cost center & GL for that plant
Last year actual data can be taken as the base for above manual planning
The expenses can be allocated to all or selected cost centers for planning. Properties will be
created against cost element to group cost elements into expense heads.
Electricity: To be allocated to each cost center based on KWH given to each cost center.
Property watt" can be defined for all cost center member and separate value for allocation
need to be maintained for each cost center
Rent: To be allocated to each cost center based on SQF area of each cost center. Property
area" can be defined for all cost center member and separate value for allocation need to
be maintained for each cost center
General administration expenses will be allocated equally among selected cost centers
Non-allocable expenses like conferences, trainings etc will be taken as per manual plan

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Cost Planning Scenario

The planned cost for plants will collate to achieve the numbers for the each company code as
bottom up planned targets
Currency translation will be done to convert the budgeted data in input currency to final group
reporting currency on final cost arrived after manual planning and allocation
The final cost plan will be used as the base for budget planning, planned data is reduced by a
% value as per group strategy to determine the optimistic budget
The final budget will be taken as the base and will be released against the plan submitted,
any supplementary budget will be released after due approval if it will be within the planned
value
The following details need to be reported
Monthly planned and actual tracking

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Q&A/ Way Forward

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