The signs in Consolidation with SAP BPC

Note: Checks and Screenshots taken from the SAP BPC 10.1 Embedded version

 

When we start a Consolidation Project in SAP BPC, we have to think about our Business Rules. If we work with the Standard version we do not need to start from scratch, we have the Starter Kit. However, when we work with the Embedded version we have to start our Business Rules from scratch.

 

In the following lines, I will try to explain:

 

• • How the Method-based Multipliers affect our Rules
  • How the signs work when we run the Consolidation
  • Some Business Rules flags: “Reverse Sign” and “Swap Entity – Intco”

 

 

1 How the Method-based Multipliers affect our Rules

 

The Method-based Multipliers tells us the Entities and Intcos that will be affected for the Business Rules where they are selected.

 

In the example of the following screenshot, the corresponding Rule will be run only in the case the Entity uses methods 100 (Full), 101 (Holding) or 110 (New) and Inco uses methods 100 (Full) or 110 (New). If we want to use it for all Inco methods, we just have to enter “99” for the “Inco Method” fields.

 

Method-based Multipliers [Administration –> Rules –> Business Rules –> Global Definitions]

 

Here we also have the information about the percentage to eliminate of the account (considering the Ownership percentages: POWN and PCON) we have in the Rules in the “Destination All Account” (ALL Formula), “Destination Group Account” (Group Formula) and “Destination Minority Account” (Minority Formula) fields.

 

That means:

 

• • “ALL Formula” is the global percentage to be eliminated and it is linked to the “Destination All Account” field in the Eliminations and Adjustments Rules. It has to be equal to the sum of the “Group Formula” field and the “Minority Formula” field.
  • “Group Formula” is the Group Part percentage to be eliminated.
  • “Minority Formula” is the Minority Interest Part percentage to be eliminated.

 

 

2 How the signs and the flags work when we run the Consolidation

 

I will consider the following example:

Eliminations and Adjustments [Administration –> Rules –> Business Rules –> Model: model_name]

 

I will define the meanings of some fields:

 

In the number 1, we have the Source account and in the numbers 2, 3 and 4, the destination accounts. The flags “Reverse Sign” and “Swap Entity – Intco” are marked with the numbers 6 and 7 respectively.

 

 

2.1 Reverse Sign: unflagged; Swap Entity – Intco: unflagged

 

We initially enter:

 

After that, we run the Consolidation (Eliminations and Adjustments) and we will get the following as result (considering “PCON” and “POWN” 100%):

 

Therefore, the “Destination All Account” will change the sign and the “Destination Group Account” will leave the sign as in the origin (the “Destination Minority Account” is zero, because in this case “PCON-POWN” is zero).

 

 

2.2 Reverse Sign: flagged; Swap Entity – Intco: unflagged

 

We initially enter:

 

After that, we run the Consolidation (Eliminations and Adjustments) and we will get the following as result (considering “PCON” and “POWN” 100%):

 

Therefore, the “Destination All Account” will not change the sign and the “Destination Group Account” will change the sign (the “Destination Minority Account” is zero, because in this case “PCON-POWN” is zero).

 

 

2.3 Reverse Sign: unflagged; Swap Entity – Intco: flagged

 

We initially enter:

 

After that, we run the Consolidation (Eliminations and Adjustments) and we will get the following as result (considering “PCON” and “POWN” 100%):

 

Therefore, the “Destination All Account” will change the sign and the “Destination Group Account” will leave the sign as in the origin (the “Destination Minority Account” is zero, because in this case “PCON-POWN” is zero). In addition, in the elimination the Entity is the one we had as Inco and the Into is the one we had as Entity.

 

 

2.4 Reverse Sign: flagged; Swap Entity – Intco: flagged

 

We initially enter:

 

After that, we run the Consolidation (Eliminations and Adjustments) and we will get the following as result (considering “PCON” and “POWN” 100%):

 

Therefore, the “Destination All Account” will not change the sign and the “Destination Group Account” will change the sign (the “Destination Minority Account” is zero, because in this case “PCON-POWN” is zero). In addition, in the elimination the Entity is the one we had as Inco and the Into is the one we had as Entity.

 

 

If you need further information about scenarios within BPC, do not hesitate to contact me under miguel@mruizsolutions.com