The SAP BPC embedded model is showing increasing adoption in productive deployments worldwide. This can be explained by providing an alternative to the SAP BPC standard model in which data needs to be replicated from the source systems into the BPC target system. The fact that the embedded model evolved from SAP’s BW-IP (Integrated Planning) solution and can be based on HANA gives the best of both worlds, taking advantage of both in-memory optimizations and the various BPC specific capabilities such as process flows, etc., whilst retaining and continuing to utilize the applications which you have previously defined.
That being said, BPC embedded deployments can still suffer from performance issues if the planning application is not designed and implemented properly. We will address why this may have happened and will explore ways to tackle the issues.
Account-based vs Key-Figure-based
BPC standard utilizes an account based model which is optimal for designing Financial based Planning applications. When someone is looking to design a solution focused on other types of planning (i.e. sales planning) where account is not necessarily the key to differentiating between reported amounts, it is possible to store “multiple” values as well as their corresponding unit of measure against “each” specific record (combination of dimensions being planned upon). This second approach is often referred to as a key figure as opposed to account based model and is something which the embedded option is fully designed to support.
Even in the case of a financial budgeting and forecasting application, one can argue that it is well-advised not to just employ the exact same models and dimensions construct from the BPC standard model.
Recall that BPC Standard requires all supporting facts (Actuals data) be present on the model. This is necessary in general for any planning application since when planning data is being entered in the input schedules, a lot of historical data and actuals need to be side-by-side in order for the planner to make a more reliable budget and forecast. The embedded model, on the other hand, can allow a composite provider to sit on top of both the planning and actuals data, streamlining the planning model to be solely for planning data and facilitating all actuals data to be side-by-side in the input schedules and reporting.
Model Design
The above is one of the typical design of a corporate-wide planning application. The satellite models deal with the more granular details on the different functions such as Revenue/Sales, HR, OpEx or Capex. The Integrated Finance model digests what is required from the satellites. For example, the HR model may contain dimensions that have no bearings whatsoever at the integrated model level, since at the integrated level, it is only concerned with the headcounts growth for each entity and the cost associated with it. This type of layered approach to planning application would resolve performance issues that is the result of one model containing too many dimensions and too much master data.
The same approach also applies to a model geared towards a single function. A single model can be split in two where one model requires entity security and concurrency and the other has no requirement whatsoever on security and concurrency. This can speed up performance since a lot of performance issues arise from the locking mechanism due to security and concurrency conflicts.
Consolidations
Traditional Consolidations: Each legal consolidations goes through the above steps. The main objectives of BPC consolidation is the automation of each of the step, resulting in significant reduction of manual efforts required during the consolidation process. That being said, it is still a painstaking process in which there needs to be validation between each step. The time required to gather all the information and replicate on the consolidation system is also one factor for the performance issue. Due to the complexity and manual efforts still involved, such process is usually only undertaken once every month or every quarter.
Real Time Consolidations: Real Time consolidations is a capability that is introduced with S/4 Hana Finance. The goal is to reduce data replication and to allow consolidation on-the-fly. The glue to enabling such is by direct access to the Universal Journal and the master data. The planning functions and calculation logic are run directly in-memory, supporting simulation of certain key consolidation functions on demand, in support of the soft close process as well as preparation and validation of data “at source” when initial postings are made.
For clarification Real Time consolidations does not mean that every time a posting is made to the underlying general ledger system, fully consolidated results will immediately be updated. Rather customers have the ability to control when a consolidation or simulation is run and when executed (on-demand) to be able to immediately and directly access the current real time data and to be able to see the updated consolidated results in the shortest time possible. Also, it continues to support the ability to source data that is not maintained within the S/4 Finance directly into the consolidations system.
The fact that real time consolidations can run soft-close on-demand means that a lot of manual efforts that were usually concentrated at month-end or quarter-end can now be tackled during the month or early in the quarter. Discrepancies that were usually discovered towards the end can be remedied right away, instead of being piled up and causing cascading issues. This is one major factor how it can help with speeding up the performance of consolidation. It also helps with management being kept abreast of the health of the consolidated company real-time.
Planning Functions
Planning functions that were usually run at the ABAP layer can now be pushed to the HANA engine to speed up performance. For custom BADI planning functions, instead of running heavy logics on the ABAP engine, implementation can be switched to one based mostly on CDS.
How Dataworks can support your consolidation process or team
- Identifying potential optimisations for improving the reporting process or the organisation of your consolidation cycle
- Hands-on support insourcing in your consolidation cycle to cover peak periods
- Supporting the requirements gathering or software selection phases for consolidation and group reporting projects
- Implementing consolidation and reporting software solutions
- Training on a broad variety of consolidation topics, complemented with practical how-to guides to embed and handle these within your software solution
- Financial reporting support service desk covering go-live and post go live support
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