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Business Planning and Consolidation

 

 

SAP BPC stands for Business Planning and Consolidation. It provides you with a single view of financial and operational data and unified solution which supports Performance Management processes. It delivers built-in functionalities for

  • Strategic Planning
  • Budgeting
  • Reporting
  • Forecasting

 

There are two platforms in SAP BPC. About 80% of its functionality is same except the difference in the back-end. In each platform, there is two version.

SAP BPC Overview

  • SAP BPC MS (Microsoft Platform) - SAP BPC 7.5 MS and SAP EPM 10
  • SAP BPC NW (Net Weaver Platform) – SAP BPC 7.5 NW and SAP BPC 10 NW.

Like any other SAP module, BPC module too holds master and transaction data. SAP BPC is divided into two components namely "Administration" and "Reporting".

 

SAP BPC Overview

For any organization to run a business successfully financial planning, budgeting, and forecasting are important attributes. SAP BPC provide everything in one package.

  • Unified - Planning and Consolidation in One Product. Single application lessens maintenance, enhance data integrity, and simplifies deployment. It also enables flexible planning & consolidation functions.

 

  • Owned and Managed by Business Users: - Business users manage processes, models & reports with little IT dependence.

 

  • An open, adaptable application: - Extends the value of your investment in both SAP and non-SAP environments.

 

  • Familiar, Easy to use: - It is easy to use and support native Microsoft Office tools (e.g. Excel) and web browsers accessing a central database.

 

  • Align Financial and Operational plans: - It helps to determine financial goals and operational plans with strategic objectives.

 

  • Reduce budget cycle time: - It helps to reduce budget cycle time.

 

 

Let's see each attribute of SAP BPC in detail,

Strategic Planning helps management team to formulate its vision, mission, core values, and objectives. The team develops strategic plans to uphold its competitive advantage in the marketplace. It helps them to answer the following questions.

  • What does corporate want to be?
  • What to do?
  • How to do?
  • How to measure what we do?
  • What do operating units need to do to achieve corporate objectives?

 

Budgeting is not just a prediction of future results. It is also a plan of actions and expected operations of the organization over the next year. Budgeting is done for proactive management and measurement of corporate performance.

  • How to execute corporate strategy at operating unit level?
  • How to measure what operating units do?
  • What is the quantitative execution plan of operating units?

 

Reporting ensures performance progress is monitored, problems are anticipated, and continuous improvement efforts are promoted.

  • How to measure that we perform towards achieving our targets and objectives?
  • What information would help management decision making?
  • How to control performance of corporate?

 

Forecasting is the act of predicting outcomes. It is done throughout the year to reflect changes that have occurred both in the internal and external environment. It determines how the internal or external environment impact on the original plans and budgets? The main objective is to provide more accurate information for less risk management planning and decision making.