ATE -- BPC -- CONSO Consolidation.pdf

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© 2011 SAP AG 1

SAP BusinessObjects EPM

Customer Solution Adoption

(CSA) How-To Guide

How to … Configure the Ownership Manager Automated Calculations for SAP BusinessObjects Planning and Consolidation 10.0, version for Netweaver.

Applies to:

SAP BusinessObjects Planning and Consolidation 10, version for Netweaver, SP03+

Summary

Ownership Manager has the ability to calculate proposals for key financial parameters (Consolidation Method to be employed, Consolidation Percent, Percent Control, and Percent Financial Interest). This guide provides a detailed explanation of the technical components of the Ownership Manager’s data model and the key components required for these calculations.

Author: Sheldon Edelstein

Company: SAP

Created on: 15 August 2011

Author Bio

Sheldon Edelstein is a CSA [previously known as the Regional Implementation Group] Specialist specializing in SAP BusinessObjects Planning & Consolidations [BPC] and the SAP EPM [Enterprise Performance Management] product suite. Sheldon has ten+ years experience specializing in Planning and Analytic applications for large scale implementations. As a former SAP Platinum consultant, he has implemented planning solutions for over a dozen large scale projects. His current area of focus is BPC, but has previously specialized in BI-IP [Integrated

Planning] and BW-BPS [Business Planning and Simulation]. Sheldon is an active contributor to SAP Developer Network (SDN) responding to EPM forum inquiries, actively blogging on a variety of topics, and publishing “How To Guides” for use by the extended SAP community. Wiki: https://wiki.sdn.sap.com/wiki/display/profile/Sheldon%20Edelstein

https://wiki.sdn.sap.com/wiki/display/profile/Sheldon%20Edelstein


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Table of Contents

Ownership Manager ........................................................................................................................................... 3

Ownership Manager Calculations ....................................................................................................................... 4

Ownership Manager Calculations relevant Master Data ................................................................................ 5 O_ACCOUNT Dimension Members ............................................................................................................................. 5

Member ids used internally during Ownership Manager Calculations: ......................................................................... 7

O_ACCOUNT Dimension Properties ........................................................................................................................... 8

Defining the Method Business Rule ................................................................................................................ 9

Creating the Cross Ownership Matrix: .......................................................................................................... 10

Related Content ................................................................................................................................................ 14

Copyright........................................................................................................................................................... 15


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Ownership Manager

Similar in function to the Dynamic Hierarchy Editor available in BPC 7.x versions, the BPC 10 Ownership Manager allows the definition of complex holding/subsidiary relationships that can be time, category, and scope specific. The organizational structures defined by Ownership Manager are also used by the Consolidation Monitor and the Controls Monitor to display and status the defined organizational levels.

You define Ownership Manager hierarchies in the system to set up and report on entity hierarchies that cannot be managed by a fixed hierarchy. While management reporting entity structures are fixed, and children roll up 100% to their associated parent, Ownership Manager hierarchies support the legal structure of statutory consolidations that are much more fluid in their definition and cannot be managed by a fixed hierarchy.

There are two scenarios where you should define Ownership Manager entity hierarchies:

If a child member is owned by more than one parent

If the child is partially owned by a parent (not 100%)

When you set up a statutory application, the system tracks hierarchies for statutory reporting. Statutory applications have an upper-level static hierarchy associated with a Group or Currency-type dimension, called Groups.

The Ownership Manager in the Consolidation Central module enables you to create and manage ownership-based hierarchies used for performing statutory consolidations.

An ownership-based hierarchy combines Groups and Entity members, where entities can be differently connected to or disconnected from groups according to Category and Time. Groups are nodes whereas entities are base members.

You define ownership-based hierarchies in the system to set up and report on entity hierarchies that cannot be managed by a fixed hierarchy.

While management reporting entity structures are fixed, and children roll up 100% to their associated parent, ownership-based hierarchies support the legal structure of statutory consolidations that cannot be managed by a fixed hierarchy.

Ownership-based hierarchies are only available in consolidation type models.


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Ownership Manager Calculations

Ownership Manager provides the ability to generate system proposals for key consolidation relevant parameters based upon business rule and share ownership data for the group/entity structure defined.

The calculated key parameters include:

Consolidation Method (METHOD) - examples: Full, Proportional, Equity

Consolidation Rate (PCON) – the rate that will be used to consolidate the financial records of the selected entity

Financial Interest Rate (POWN) – the ultimate ownership calculation based upon a selected accounting method of calculation (Direct Share or Group Share).

The calculation feature can be accessed when editing the ownership manager structure:

User can select the accounting principle for calculating the ultimate ownership and control (Direct or Group share methods).

Checkbox options allow the user to update the “Current” sub column values for Method, Percent Consolidation, and calculated ownership percentages.


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Ownership Manager Calculations relevant Master Data

O_ACCOUNT Dimension Members

Supporting member ids in the O_ACCOUNT (ownership model account) dimension METHOD The METHOD account identifies the consolidation method associated with the entity as defined within the ownership hierarchy. The METHOD values are directly connected to the methods defined within the “Methods” business rules:

PCON PCON stores the percent of consolidation for the selected entity. This is the percentage that will be applied to the records requiring consolidation. For example, if PCON is 75% and the data value is 400, this record will consolidate 0.75 * 400 = 300. The 300 value will be written to the Elimination node specified. POWN POWN is also known as the ultimate percent ownership of an entity by the holding company. It is the calculated share percentage based upon a specified calculation method (Direct Share or Group Share). For the Direct Share calculation, the percent ownership is assumed to be 100% of the subsidiary ownership. For Group Share calculations, the percent ownership is the product between the various subsidiaries percentages. Example: Holding Company (H1) owns 70% of subsidiary (S1) and S1 owns 50% of subsidiary S2. Using the Direct Share method, the ultimate percent ownership of S2 is 50%. Using the Group Share method, the ultimate percent ownership of S2 is 35% (=70%x50%). POWN is used internally by the ownership manager calculation engine to determine POWN_SYS based upon the financial process selected by the user (i.e.: Direct Share or Group Share calculation). PCTRL PCTRL identifies the ultimate percent of control for each entity in a model. This value may differ from POWN, for example if 60% of outstanding shares of a subsidiary is owned, the control on that company may be greater than 60% (it may be 100%, for example). PCTRL is used internally by the ownership manager calculation engine to determine METHOD_SYS and PCON_SYS selections from the METHOD business rule. Example of transactional records in the Ownership model (cube):


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Notes:

PGROUP (not used in the automated calculation) identifies the relative position of the specified entity in the ownership hierarchy. The relative positions of the three entities in this example are: DE is on top, followed by FR, and UK is in the third position of the hierarchy.

Entity DE is assigned as the holding company (Method = 101). Entity FR and UK are both assigned to use a Full (Global) consolidation method (Method = 100).


© 2011 SAP AG 7

Member ids used internally during Ownership Manager Calculations:

METHOD_SYS METHOD_SYS is populated by the system to store the generated proposal for the consolidation method PCON_SYS PCON_SYS is populated by the system to store the generated proposal for the consolidation rate POWN_SYS POWN_SYS is populated by the system to store the generated proposal for the financial interest rate, or percent shares owned. Shares Owned contains the number of shares and voting shares that an entity owns of another entity. PCTRL_SYS PCTRL_SYS is populated by the system to store the generated proposal for the percent of subsidiary control


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O_ACCOUNT Dimension Properties

The IS_INPUT property for the O_ACCOUNT dimension identifies the dimension members which can be displayed in the Ownership Manager hierarchy display.


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Defining the Method Business Rule

The Method Business Rule table supports the Ownership Manager calculations by identifying a relationship between a range of shares allowing a system derived consolidation method (METHOD) as well as a proposed Financial Interest Rate (PCON):

The business rule can be developed using the variable PCTRL to specify a value for PCON:

Note the unique syntax for identifying the share ranges in the above example.

0.20<,<=0.499 is interpreted by the system as a range definition: “any value greater than 20%, through any value less than or equal to 49.9%”.

0.499 <,<=0.501 is interpreted by the system as a range definition: “any value greater than 49.9%, through any value less than or equal to 50.1%”.

0.501<,<=1.00 is interpreted by the system as a range definition: “any value greater than 50.1%, through any value less than or equal to 100%”.


© 2011 SAP AG 10

Creating the Cross Ownership Matrix:

Automatic ownership calculations require additional information to allow the ultimate ownership share ownership values. An input schedule providing details on Percent Control and Percent Ownership data must be provided by entity and intercompany partner. Data is saved to the OWNERSHIP model.

To create a Cross Ownership Matrix input schedule, enter the Ownership Accounts (PCTRL and POWN) along with all entities occurring in your ownership manager structure into static rows. Define the columns by entering all “owned” entities by their corresponding Intercompany dimension value. For these values to be considered in any calculation, the Category, Time, and Group values need to correspond to the structure under consideration.

In the following example:

- Germany controls 80% of a UK subsidiary, and the UK subsidiary controls 60% of a French subsidiary

- Germany owns a 70% share of a UK subsidiary, and the UK subsidiary owns a 50% share of a French subsidiary

Note: Share and control data must be entered without any scope (group) specification (i.e.: S_NONE or G_NONE). Alternative method: The same information can be uploaded directly into the system using Data Manager import packages. This technique should be considered when there are complex and/or high volume control/ownership relationships. Please refer to SAP Note1599504 for additional details surrounding the use of a Cross Ownership Input schedule.


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How the calculation works:

1) User selects share calculation method (Direct Share or Group Share) to determine how the ownership percentages are combined to generate PCTRL_SYS and POWN_SYS (Direct Share method: use entered values directly; Group Share method: multiply the rates through the hierarchy):

In the previous example, where:

- Germany owns a 70% share of a UK subsidiary, and the UK subsidiary owns a 50% share of a French subsidiary

A Direct Share calculation would assign a 70% POWN value to the United Kingdom subsidiary and 50% to the France subsidiary.

A Group Share calculation will chain the ownership calculation, so that the assignment will then be 70% United Kingdom subsidiary and 35% to the France subsidiary (calculated by multiplying 70% by 50%).

System will access the data entered in the Cross Ownership Matrix to determine calculated values for PCTRL_SYS and POWN_SYS and apply the user specified Direct or Group Share calculation method:


© 2011 SAP AG 12

3) The calculated percent share value (stored in POWN_SYS) is compared to the defined share ranges in the METHOD business rule. If a match is found, the system will look up the corresponding METHOD code and Percent Consolidation values and store these in PCON_SYS and METHOD_SYS.

4) Upon refresh, the ownership manager structure displays the system generated values in the “Generated” sub column:


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The entire process outlined:


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Related Content

help.sap.com: http://help.sap.com/saphelp_bpc10_nw/helpdata/en/4c/6a6d2f4c9a01cde10000000a42189e/content.htm SAP Note 1599504: “Ownership Calculations” https://service.sap.com/sap/support/notes/1599504

http://help.sap.com/saphelp_bpc10_nw/helpdata/en/4c/6a6d2f4c9a01cde10000000a42189e/content.htm

https://service.sap.com/sap/support/notes/1599504


© 2011 SAP AG 15

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Documents

ATE -- BPC -- CONSO Consolidation.pdf