Best course of action in Budgeting with SAP BPC

 

Business challenges:

In today’s challenging economy, the answers to three rudimentary

Performance questions are more important than   ever:

  • How are we doing?
  • Why are we on or off track?
  • What should we do to address performance gaps quickly?

To answer these questions and to anticipate the best course of action for better business out comes, your company needs to plan, forecast and budget effectively. You must also get the right information to the right people in the form they need it—and be able to make changes quickly. This coordinated approach requires a highly flexible enterprise planning solution that aligns financial and operational targets in one connected, dynamic solution.

What is budgeting..?

Budget is a financial plan for a defined period of time usually for a year. It may also include          planned Sales volumes and Revenues, Resource quantities, Costs and Expenses, Assets, Liabilities and cash flows.

Problems with using Spreadsheets for Budgeting:

  • Lack of data integrity and transparency:
  1. Data security is a big challenge in spread sheet based BSC process.
  2. Version control is nearly impossible.
  3. Audit trail is required by BSC team but very difficult to achieve if not impossible
  • Lack of collaboration:
  1. Collaboration is a major challenge in spread sheet based BSC process.
  2. Timely response by demand and supply teams is a challenge.
  • Speed is not a spreadsheet’s strong suit:
  1. Handling large volumes of data is a challenge.
  2. Data connectivity to multiple data sources is very complex for business users.
  • Aggregation and application maintenance:
  1. Consolidating different work sheets is very complex and needs lot of coding.
  2. What if scenarios and simulations are not easy in spread sheet based planning.
  • No standardization in the planning process:
    1. Spreadsheets, by design, are ad-hoc and individual.
    2. Email substitutes for any systematic workflow and time is often wasted in data contributions.
    3. Traceability of template version is a big problem.
    4. Formulas written in excel files are extremely error prone and challenge for data validations.

How SAP BPC Solves?

  • Integrated planning across the enterprise in a shared transactional system
  • Unrestricted access to the most atomic level of transactional and plan detail
  • Single version of the truth for operations and finance
  • Accelerated system response times on real-time information
  • Robust calculations, allocations and simulations for quicker insights
  • Modern user experience and use of Microsoft Excel to facilitate adoption and productivity
  • Web-based data visualization and dash boarding options to speed up discovery

Focusing on the Budget BPC is equipped with several tools ensuring an accelerated and accurate budget process. Examples of value-adding functionalities in SAP BPC:

  • Web-based business processes guide users through the budgeting process. It is also possible to facilitate different budgeting processes, for instance to distinguish between top-down and bottom-up.
  • Budget spreadsheets no longer need manual efforts for maintaining since BPC is master data-driven.
  • The Work Status feature in SAP BPC is used to lock data, preventing additional data changes after submitting the final budget.
  • Budget proposals can easily be generated based on actual or previous plan versions.
  • The system calculates data inconsistencies by one push of a button and then generates an overview containing data deviations.
  • The front-end of BPC is Excel-based. Drag and drop-functionalities enable stakeholders to easily analyze figures.
  • Facilitating flexible budgeting processes, enabling integration of financial elements (revenue, capacity, demand, workforce, P&L- and cash flow planning).
  • Load data from different source systems into SAP BPC.

Conclusion:

SAP BPC can give user friendly interface on Budgeting. It attains accurate results in budgeting very quickly for financial assistance

Categories: BPC
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