SAP BUSINESSOBJECTS PLANNING AND CONSOLIDATION 10.0, VERSION FOR SAP NETWEAVER STARTER KIT FOR IFRS SP1. Simplified Configuration Description

Transcription

1 SAP BUSINESSOBJECTS PLANNING AND CONSOLIDATION 10.0, VERSION FOR SAP NETWEAVER STARTER KIT FOR IFRS SP1 Simplified Configuration Description 1

2 Copyright 2012 SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. Legal Disclaimer No part of this starter kit may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. The information in this starter kit is proprietary to SAP. No part of this starter kit s content may be reproduced, copied, or transmitted in any form or for any purpose without the express prior permission of SAP AG. This starter kit is not subject to your license agreement or any other agreement with SAP. This starter kit contains only intended content, and pre-customized elements of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this starter kit is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this starter kit. SAP does not warrant the accuracy or completeness of the information, text, pre-configured elements, or other items contained within this starter kit. SAP DOES NOT PROVIDE LEGAL, FINANCIAL OR ACCOUNTING ADVISE OR SERVICES. SAP WILL NOT BE RESPONSIBLE FOR ANY NONCOMPLIANCE OR ADVERSE RESULTS AS A RESULT OF YOUR USE OR RELIANCE ON THE STARTER KIT. THIS STARTER KIT IS PROVIDED WITHOUT A WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SAP SHALL HAVE NO LIABILITY FOR DAMAGES OF ANY KIND INCLUDING WITHOUT LIMITATION DIRECT, SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES THAT MAY RESULT FROM THE USE OF THIS STARTER KIT. THIS LIMITATION SHALL NOT APPLY IN CASES OF INTENT OR GROSS NEGLIGENCE. The statutory liability for personal injury and defective products (under German law) is not affected. SAP has no control over the use of pre-customized elements contained in this starter kit and does not endorse your use of the starter kit nor provide any warranty whatsoever relating to third-party use of the starter kit.

3 Contents Chapter 1 Foreword... 4 Chapter 2 Data Collection... 5 Data Entry Format... 5 Business Process Flow for Data Entry... 6 Data Entry Principles... 7 Chapter 3 Consolidation Process... 9 Business Process Flows for Consolidation... 9 Consolidation Processing Converting data Automatic Entries Chapter 4 Report and Analysis Process Reports Library Validation Reports Publishable Key Financial Statements Data Analysis Chapter 5 Presentation of Financial Statements Statement of Financial Position Income Statement Statement of Other Comprehensive Income Statement of Cash Flows Statement of Changes in Equity

4 Foreword The SAP BusinessObjects Planning and Consolidation starter kit for IFRS is created to deliver consolidation business logic on top of a unified planning, budgeting and consolidation application using both product and functional best practices. This pre-configuration assists you in setting up your application in order to adhere to IFRS while accelerating and securing the implementation project. The starter kit for IFRS is pre-configured with input documents, rules, control reports and financial statements for performing, validating and publishing a statutory consolidation in accordance with IFRS.

5 Data Collection Data Entry Format Account Typology The chart of accounts of the starter kit for IFRS is based on the IFRS Taxonomy. This chart of accounts enables financial statements to be presented following the requirements of IAS 1: Assets and liabilities are classified according to the current/non-current distinction and in the income statement expenses are classified by function. The chart of accounts is presented in Chapter 1 of the appendix. Naming Convention for Accounts In the financial accounts, the first letter of the ID enables you to identify the accounting class: A for assets, E for equity, L for liabilities and P for profit and loss (net income). Total accounts are indicated with a T as the last digit after the account number. Example: Subtotal Account ID Lands and buildings Lands and buildings, Dep. A1110 A1120 Property, plant and equipment A119T Customizing the Chart of Accounts The chart of accounts has been designed to be enhanced with customer specific accounts. In the starter kit for IFRS, accounts are created with dimension properties to define their behavior throughout the configuration: for instance analysis by flow, currency translation and position in the account hierarchy. Enhancing the chart of accounts by duplication template accounts allows you to assign the appropriate attributes automatically to new accounts. This implementation principle has been used for data entry and analysis reports as well as consolidation rules to ensure a dynamic configuration facilitating the integration of new accounts. 5

6 Business Process Flow for Data Entry A Business Process Flow for data entry has been configured to guide the business user through the data collection process and the different data input forms. L1 Data Entry In the Data Entry Business Process Flow are listed the tasks for uploading data from a source system, entering balance data and breakdown by flow, running the controls and checking data consistency as well as for submitting data.

7 Order of Data Entry The Business Process Flow for data entry and the organization of the different input schedules into subfolders guide the end-user through a step-by-step approach for entering data: 1. Closing balances (Assets, Equity and Liabilities and Income Statement) 2. Period movements (breakdown by flow with display of account/flow pair not open for data entry) 3. Intercompany details (data entry in single account schedules and an overview report for control) A detailed list of all input forms is presented in Chapter 5 of the appendix and a selection of input forms is shown in Chapter 7 of the appendix. Data Entry Principles Breakdown by Flow Flow entries allow you to distinguish variation types in the balance sheet between the opening and closing balance and thus allow for the automatic calculation of line items in the statement of cash flows, the statement of changes in equity and the statement of comprehensive income. The flows available in input forms can be classified into two categories: Flows for current transactions (purchase, increase in depreciation, fair value, etc.) Flows for special transactions (changes in accounting policies, internal merger, etc.) A detailed list of accounting flows is presented in Chapter 2 of the appendix. Sign of indicators Assets are entered as positive amounts except for amortization and depreciation of assets. These are entered as negative amounts. Equity and liabilities are entered as positive amounts. Expenses and income are entered as positive amounts (unless opposite of the account balance type). In retrieval reports, contra assets and expenses will be displayed as negative. The table below summarizes the different entry and display signs. Assets Amortization/ Depreciation Equity Liabilities & Income Expenses Entry Display 100 (100) (100) 7

8 Data Entry Validation A number of controls have been configured in the starter kit to validate the coherence of data entered/imported into the input forms. Main types of control AIM EXAMPLE Check main balances Assets = Liabilities + Equity Gross value of assets depreciation at closing Flow analysis Complete analysis of assets and liabilities by flows The transfer flow must balance Intercompany breakdown Intercompany detail account total at closing After data entry validation has been completed, data is submitted to the approver. The final approval of data will change the status of the reporting to Approved and no user will be able to modify input data. A detailed list of all controls is presented in Chapter 4 of the appendix.

9 Consolidation Process Business Process Flows for Consolidation Business Process Flows are available for preparing and running the consolidation, guiding the business end user through set up, consolidation processing, data analysis and the delivery of financial statements. C1 Preparatory Tasks In the Preparatory Tasks Business Process Flow are listed the tasks for preparing the consolidation and generating the input opening balance. C2 Consolidation In the Consolidation Business Process Flow are listed the tasks for verifying the consolidation perimeters, posting possible manual journal entries, running the consolidation, checking the main balances, consulting the various analysis and accounting reports and finally delivering the financial statements. 9

10 Consolidation Processing The consolidation engine handles the following consolidation methods: Full consolidation Proportionate consolidation Equity method The starter kit for IFRS includes a set of automatic and manual processes which handles the processing of the following scope changes: Acquisitions Loss of control Equity transactions Step acquisitions Internal mergers Converting data Foreign subsidiary accounts are converted using the closing rate method: The closing balances of balance sheet accounts are converted using the closing rate, except for equity and consolidated investments kept at their historical value. Currency translation reserves are calculated automatically. The income statement is converted using the average rate for the period. The statement of cash flows is based on balance sheet variations which are converted at the average rate for the period. Automatic Entries The Consolidation application of the starter kit for IFRS includes a set of elimination and adjustment rules for automatically calculating consolidated data using input data from each entity. This set of rules can be enhanced in order to meet your specific accounting policies. The automatic consolidation entries calculated by the elimination and adjustment rules are: Elimination of intercompany reciprocal operations Elimination of internal dividends Goodwill booking (on the basis of a manual declaration) Elimination of investments in subsidiaries Calculation of the currency translation adjustments Calculation of non-controlling interests

11 Report and Analysis Process Reports Library Once the consolidation process is completed, a Business Process Flow with all financial statements and accounting reports can be made available to end users for analysis and review. R1 Report Library In the Report Library Business Process Flow are listed all reports delivered in the starter kit, including publishable financial statements, analysis reports for key financial statements, general ledgers and ledgers and overview and control reports. 11

12 Validation Reports The data consistency dashboard is one of the validation reports that are configured in the starter kit for IFRS. It gives an at a glance overview of the consolidation process with main balance and intercompany elimination controls. Other detailed reports allow the consolidation manager to check miscellaneous consistencies such as opening carry-over, flow balances and balance sheet net income versus profit and loss net income. Data Consistency Dashboard

13 Publishable Key Financial Statements The starter kit for IFRS contains a complete set of financial statements following the requirements of IAS 1: Statement of Financial Position with a separation between current and non-current assets and liabilities Income Statement with an expense classification by function Statement of Other Comprehensive Income Statement of Cash Flows Statement of Changes in Equity over two periods The key financial statements are shown in Chapter 5. Data Analysis Analysis Reports A series of reports allow for the analysis of consolidated data: All of these reports are configured to leverage the analysis features of the application to give access to detail by account, reporting unit, partner, flow and audit ID: Analysis reports for analyzing financial statements by flow, audit ID and entity Accounting reports which provide details by partner (intercompany), entity and audit ID for each account Control reports to give an overview of main balances and possible inconsistencies A detailed list of retrieval reports is presented in Chapter 6 of the appendix. Audit ID Each data item in the configuration is identified by an audit ID making the audit trail possible and facilitating the analysis of consolidated data. The audit ID allows the accounting origin to be tracked. For instance: The INPUT Input data audit ID tracks data entered or imported into input forms The ELIM10 - Intercompany Eliminations audit ID tracks elimination of reciprocal transactions A detailed list of audit IDs is presented in Chapter 3 of the appendix. 13

14 Analysis of a Statement of Financial Position line item by flow

15 Analysis of an Income Statement line item by entity and partner S001 has sold goods for 594,986 EUR to S000. This reciprocal operation is eliminated during the consolidation process. 15

16 Presentation of Financial Statements 1 Statement of Financial Position 1 Data shown in this chapter comes from the demonstration data set delivered with the starter kit: ACTUAL 2012.DEC EUR - CORPORATE

17 Income Statement

18 Statement of Other Comprehensive Income 2012.DEC

19 Statement of Cash Flows 2012.DEC 19

20 Statement of Changes in Equity

21 Sets of sample data Two sets of consolidated data are provided with the starter kit, a standard set of consolidated data and a set of data demonstrating several scope changes scenarios named Cases (see Scope changes cases documentation) The standard set is the most complete and should be considered as the reference set. Within these sets, the first periods (2011.DEC and 2015.DEC) are only the closing position. Standard set of consolidated data TIME CATEGORY ENTITY CONSOSCOPE CONSOLIDATION CURRENCY 2011.DEC 2012.DEC 2013.DEC ACTUAL Beginning with S (e.g. S000, S001) CORPORATE EUR Local, not converted data is available on the G_NONE (Consoscope), I_NONE (Interco), LC (Currency) context selection. Scope changes cases 1 to 7 TIME CATEGORY ENTITY CONSOSCOPE CONSOLIDATION CURRENCY 2015.DEC 2016.DEC 2017.DEC ACTUAL Depending of the case scenario Depending of the case scenario USD Local, not converted data is available on the G_NONE (Consoscope), I_NONE (Interco), LC (Currency) context selection. IMPORTANT: The years provided above for the scope change scenarios differ from the years illustrated in the scope change cases documentation. In case no update is done in the documentation and blogs please consider the following mapping of years : 2015.DEC=2012.DEC 2016.DEC=2013.DEC 2017.DEC=2014.DEC 21

22 Data recovery These sample data sets are delivered as files in.txt format before and after the conversion/consolidation process. They can be re-imported at any time through the Import package.