SAP Custom Development. User Guide. Version Status Date. November 19, Customer SAP AG Dietmar-Hopp-Allee 16 D Walldorf

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1 SAP Custom Development User Guide Version Status Date November 19, 2012 Dietmar-Hopp-Allee 16

2 Typographic Conventions Icons Format Example Text Example Text EXAMPLE TEXT Example Text Example Text Description Words or characters quoted from the screen. These include field names, screen titles, pushbutton labels, menu names, menu paths, and menu options. Cross-references to other documentation Emphasized words or phrases in body text, graphic titles, and table titles Technical names of system objects. These include report names, program names, transaction codes, table names, and key concepts of a programming language when they are surrounded by body text, for example, SELECT and INCLUDE. Output on the screen. This includes file and directory names and their paths, messages, names of variables and parameters, source text, and names of installation, upgrade, and database tools. Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation. <Example text> Variable user entry. Angle brackets indicate that you replace these words and characters with appropriate entries to make entries in the system. EXAMPLE TEXT Keys on the keyboard, for example, F2 or ENTER. Icon Meaning Caution Example Note Recommendation Syntax Additional icons are used in SAP Library documentation to help you identify different types of information at a glance. For more information, see Help on Help General Information Classes and Information Classes for Business Information Warehouse on the first page of any version of SAP Library. Page 2 of 39

3 Contents 1 Overview Prerequisites Prior Knowledge Logon and Local Authorizations Authorizations Special Notes Glossary General Overview Introduction Details Settings for Scenarios and Sample Assets Define Planning Scenarios Introduction Details and Execution Definition of Exceptions for Simulated Valuation Exclude Positions from Planning Functions Introduction Details and Execution Assign Alternative Position Management Procedure Introduction Details and Execution Different Valuation from Nominal Value Introduction Details and Execution Generation and Calculation in the Planning and Projection Solution Generate Market Data Shifts Introduction Details and Execution Create Sample Assets Introduction Details and Execution Virtual Interest Fixing Page 3 of 39

4 5.3.1 Introduction Details and Execution Virtual Accrual/Deferral Introduction Details and Execution Calculation of Scenario-Dependent Key Figures Introduction Details and Execution Calculation of Planning/Projection Key Figures Introduction Details and Execution Checking of Settings and Results of Planning and Projection Market Data Shifts Check/Comment on Shift Rules Maintain Market Data Shifts Key Figure Validation and Calculation Result Logging Analysis of Simulated Key Figures Calculation Result Logging Reorganization of Planning and Projection Calculation Runs Delete Scenario Data Introduction Details and Execution Delete Sample Assets Introduction Details and Execution Extraction of Planning Key Figures to the SAP BW System Extraction of Planning Values for Subledger Positions Extraction of Planning Values for Sample Assets Extraction of Planning Hierarchy Planning and Projection in the SAP BW System Configuration and -Specific Adjustments Page 4 of 39

5 1 Overview 1.1 Prerequisites The following prerequisites must be met before you can start working with the capital investment planning solution from SAP. EA-FINSERVE 605 software component is installed. SAP_BW 700 software component is installed. 1.2 Prior Knowledge This guide assumes that you have a certain degree of familiarity with the terminology and features of the capital investment planning solution. In this guide you will find all of the information you need to execute the capital investment planning solution from SAP and use it efficiently. We recommend that you use this guide together with the solution. 1.3 Logon and Local Authorizations Authorizations Not relevant Special Notes Graphics are used in this guide to demonstrate various details. The details shown in the graphics may differ from the details on your user interface. This guide may also describe work areas and functions to which you do not have access. Note that your access depends on your individual authorization. This document was created from the perspective of the capital investment planning solution and refers to the characteristics and functions of this application. 1.4 Glossary Term Capital investment planning Projection Definition Based on the capital investments managed in the direct portfolio and assuming certain general external conditions, it is possible to forecast the net earnings for the next X years (long-term perspective). This generally means that you can create a sound revenue forecast for the selected planning time frame based on the current actual position and control parameters to be set externally. Based on the capital investments managed in the direct portfolio and assuming certain general external conditions, it is possible to forecast the net earnings for the current year (short-term perspective). This generally means that you can create a sound revenue forecast for the current fiscal year based on the current actual position and control parameters to be set externally. Page 5 of 39

6 Sample asset (SA) Sample assets represent synthetic positions (such as stocks, bonds, fixed-term deposits, and so on) that are used as reinvestment vehicles. The aim of planning is to determine what cash will become available in future periods (such as income from interest, dividends, repayments, and so on) and to reinvest it on a period basis. 2 General Overview 2.1 Introduction The following section describes how the subfunctions required for the capital investment planning solution are organized. These subfunctions are mainly reports and transactions that can be grouped together under a user role and that can also be supplemented by customer-specific subfunctions if required. The user role delivered is /TCIP/PLFC, which includes the activities described below. 2.2 Details Navigation on the user interface of the capital investment planning solution from SAP follows the chronological sequence of the functions specified in the structure below (from top to bottom). The respective SAP transactions are given in parentheses. The SAP solution capital investment planning consists of the following activities: 1. Functions for configuring scenarios and sample assets Define Planning Scenarios (transaction /TCIP/SCENARIO_3) 2. Functions for defining exceptions for simulated valuation (optional) Exclude Positions from Planning Functions (transaction /TCIP/SIM_VAL6) Assign Alternative Position Management Procedure (transaction /TCIP/SIM_VAL5) Different Valuation from Nominal Value (transaction /TCIP/SIM_VAL7) 3. Functions for generating and calculating data in the planning and projection solution Generate Market Data Shifts (transaction /TCIP/SCENARIO_5) Create Sample Assets (transaction /TCIP/MASSET_2) Virtual Interest Fixing (transaction /TCIP/SIM_VAL3) Virtual Accrual/Deferral (transaction /TCIP/SIM_VAL4) Calculation of Scenario-Dependent Key Figures (transaction /TCIP/SIM_VAL1) Calculation of Planning and Projection Key Figures (transaction /TCIP/SIM_VAL2) 4. Functions for checking the settings and results of planning and projection (optional) a. Market data shifts Check/Comment on Shift Rules (transaction /TCIP/SCENARIO_4) Maintain Market Data Shifts (transaction JBR0) b. Key figure results and log file Key Figure Analysis (transaction /TCIP/GENERAL_5) Result Logging (transaction /TCIP/GENERAL_3) 5. Functions for reorganizing planning and projection calculation runs (optional) Page 6 of 39

To call the function, use transaction /TCIP/SCENARIO_3. 3.1.

7 Delete Scenario Data (transaction /TCIP/GENERAL_6) Delete Sample Assets (transaction /TCIP/MASSET_7) 3 Settings for Scenarios and Sample Assets 3.1 Define Planning Scenarios Introduction You can use the Define Planning Scenarios function to define planning scenarios that include assumptions for future periods. To call the function, use transaction /TCIP/SCENARIO_ Details and Execution In the Define Planning Scenarios function, you first define a planning scenario in which you enter assumptions for future periods. Indicate whether the planning scenario is relevant for planning and/or projection. Create a version and define the planning scenario by assigning the relevant planning horizons. Enter your respective assumptions or expectations for the planning horizons regarding developments in foreign exchange, interest, securities, and indexes. Proceed as follows: 1. You first define the scenario abstractly. You can define scenarios differently across different planning periods; you can therefore create different versions of a scenario that are semantically identical. Fig. 1: Define Planning Scenario Page 7 of 39

8 Fig. 2: Define Planning Scenario 2. For each version, define the market price parameters for each planning interval. Fig. 3: Define Planning Scenario 3. Assign the horizon-dependent market price parameter for each risk factor. Foreign exchange Page 8 of 39

9 Fig. 4: Define Planning Scenario Interest Fig. 5: Define Planning Scenario Securities Fig. 6: Define Planning Scenario Page 9 of 39

Define sample assets Sample assets represent synthetic positions (such as stocks, bonds, fixed-term deposits,

The aim of planning is to determine what cash will become available in future periods (such as income from

At this point in the application, you decide at which node of the planning hierarchy (here a portfolio

10 Index Fig. 7: Define Planning Scenario Configure the settings for each scenario using the view cluster displayed above. Define sample assets Sample assets represent synthetic positions (such as stocks, bonds, fixed-term deposits, and so on) that are used as reinvestment vehicles. The aim of planning is to determine what cash will become available in future periods (such as income from interest, dividends, repayments, and so on) and to reinvest it on a period basis. At this point in the application, you decide at which node of the planning hierarchy (here a portfolio hierarchy) cash is to be reinvested and in what type of instrument. You also configure the following settings for each hierarchy node: - Valuation rule - Interest frequency - Full term of the sample asset - Base reference interest rate - Interest calculation method Fig. 8: Define Sample Assets Page 10 of 39

4 Definition of Exceptions for Simulated Valuation 4.1 Exclude Positions from Planning Functions 4.1.1 Introduction With this function, you can exclude particular capital investments from the planning application.

2 Details and Execution If you want to exclude particular capital investments from the planning application, you can use transaction /TCIP/SIM_VAL6 to exclude positions from individual planning

11 4 Definition of Exceptions for Simulated Valuation 4.1 Exclude Positions from Planning Functions Introduction With this function, you can exclude particular capital investments from the planning application. To call the function, use transaction /TCIP/SIM_VAL Details and Execution If you want to exclude particular capital investments from the planning application, you can use transaction /TCIP/SIM_VAL6 to exclude positions from individual planning subfunctions (such as market value calculation). You configure the required settings as follows using the derivation tool for profitability analysis (CO-PA). The planning solution provides a set of source fields and a target field for defining a derivation rule. The derivation rule maps the source fields to the target field, on which the evaluation using the planning tool is based. To exclude positions from planning functions, proceed as follows: 1. Call transaction /TCIP/SIM_VAL6. 2. Choose Display/Change. 3. Choose Create Step. 4. Select the Derivation Rule radio button. 5. Choose Continue. Fig. 9: Exclude Positions from Planning Functions To create or change the derivation rule, first select the source and target fields that you want to include in the rule: a. Choose a step text. b. In the Source Fields list, select the values (for example, planning scenario) that you want to map to the target field. c. In the Target Field, choose EXCLUDE, for example. Page 11 of 39

Example For all holdings, simulated valuation should not be carried out for the International Financial Reporting Standards

12 Fig. 10: Exclude Positions from Planning Functions Choose Maintain Rule Values and select the required rule values for the derivation rule. Example For all holdings, simulated valuation should not be carried out for the International Financial Reporting Standards (IFRS) valuation area (VA) since reporting is carried out at the nominal value. Before you define a derivation rule, first select the following source fields. You map these source fields to the EXCLUDE target field: Page 12 of 39

13 Fig. 11: Define Derivation Rule for Exceptions for Simulated Valuation When you have specified the source and target fields, you can define the rule. Choose Maintain Rule Values and select the required entries: Fig. 12: Define Derivation Rule for Exceptions for Simulated Valuation Page 13 of 39

Fig. 13: Define Derivation Rule for Exceptions for Simulated

takes them into account when determining planning key figures.

14 Fig. 13: Define Derivation Rule for Exceptions for Simulated Valuation The system evaluates the rules defined here and takes them into account when determining planning key figures. You can also change the assignment using transaction /TCIP/SIM_VAL6. Choose the Move radio button and proceed as described above. Fig. 14: Exclude Positions from Planning Functions Page 14 of 39

4.2 Assign Alternative Position Management Procedure 4.2.1 Introduction This function enables you to valuate certain securities using a procedure that differs from the standard approach; in other

2 Details and Execution As part of simulated valuation, the accounting valuation of Treasury Ledger (TRL) positions and sample assets is carried out using the valuation framework in Investment

15 4.2 Assign Alternative Position Management Procedure Introduction This function enables you to valuate certain securities using a procedure that differs from the standard approach; in other words, to use a different position management procedure for the valuation Details and Execution As part of simulated valuation, the accounting valuation of Treasury Ledger (TRL) positions and sample assets is carried out using the valuation framework in Investment Management (IM). The position management procedure, which contains the individual valuation steps and the assigned valuation rules, is the basis for the simulated valuation. Real TRL subledger positions and CML (corporate mortgage loan) contracts are valuated using the same basic valuation method as that used for the real accounting valuation in the subledger. This is essential to ensure that the valuation results can be compared. For sample assets, the underlying position management procedure is derived by means of the respective assigned International Securities Identification Number (ISIN) and the product type derived from this. You can also valuate certain securities using a procedure that differs from this standard approach; in other words, you can use a different position management procedure for the valuation. To do this, you can configure settings in the derivation tool for profitability analysis (CO-PA) that enable you to define an alternative position management procedure based on a number of influencing factors. These settings are then taken into account during the simulated valuation. In other words, the procedure determined here overrides the standard position management procedure. To configure the settings for an alternative position management procedure, proceed as follows: Call transaction /TCIP/SIM_VAL5. Carry out the same sequence of steps as described in Details and Execution. Fig. 15: Assign Alternative Position Management Procedure Select the source and target fields that you want to include in the derivation rule. Carry out the same sequence of steps as described in Details and Execution. Page 15 of 39

Fig. 16: Assign Alternative Position Management Procedure Define

Carry out the same sequence of steps as described in 4.1.

You can also change the assignment as required using transaction

16 Fig. 16: Assign Alternative Position Management Procedure Define the settings for the derivation rule. Carry out the same sequence of steps as described in Details and Execution. You can also change the assignment as required using transaction /TCIP/SIM_VAL5. Choose the Move radio button and proceed as described above. Fig. 17: Assign Alternative Position Management Procedure Page 16 of 39

4.3 Different Valuation from Nominal Value 4.3.1 Introduction This function enables you to valuate certain securities using a procedure that differs from the standard approach; in other words, to

17 4.3 Different Valuation from Nominal Value Introduction This function enables you to valuate certain securities using a procedure that differs from the standard approach; in other words, to carry out a valuation that differs from the nominal value Details and Execution If you want to valuate particular capital investments without using the nominal value, you can configure the necessary setting using transaction /TCIP/SIM_VAL7 (Different Valuation from Nominal Value). You configure the settings as described in previous steps by using the derivation tool for profitability analysis (CO-PA). To configure the settings for a valuation that is different from the nominal value, proceed as follows: Call transaction /TCIP/SIM_VAL7. Carry out the same sequence of steps as described in Details and Execution. Fig. 18: Different Valuation from Nominal Value Select the source and target fields that you want to include in the derivation rule. Carry out the same sequence of steps as described in Details and Execution. Page 17 of 39

18 Fig. 19: Different Valuation from Nominal Value Define the settings for the derivation rule. Carry out the same sequence of steps as described in Details and Execution. You can also change the assignment as required using transaction /TCIP/SIM_VAL7. Choose the Move radio button and proceed as described above. Fig. 20: Different Valuation from Nominal Value Page 18 of 39

5 Generation and Calculation in the Planning and Projection Solution 5.1 Generate Market Data Shifts 5.1.1 Introduction This function enables you to create market data shifts automatically.

19 5 Generation and Calculation in the Planning and Projection Solution 5.1 Generate Market Data Shifts Introduction This function enables you to create market data shifts automatically. Simulated market values are determined subsequently for each scenario and planning interval on the basis of these market data shifts Details and Execution Execute this report for the respective Planning Scenario using the appropriate Valid from date and the evaluation type for market risk analysis (MRA Evaluation Type). To call the report, use transaction /TCIP/SCENARIO_5. Fig. 21: Generate Market Data Shifts Note The Valid from date must always be the same as or after the first version date of the defined scenario. Example If the date of the first version of the planning scenario is , the date you choose here must be or a later date. The same applies to all the calculation steps described in 5.2, 5.3, 5.4, 5.5, and 5.6. Caution Note that the date you choose must be homogeneous. The report updates the scenario settings made in 3.1 Define Planning Scenarios (shifts in foreign exchange rate, interest rate, and security prices) in the standard transaction. The following example shows the underlying logic: By scenario (for example, ID 100) By version (for example, ) Per period (for example, current year = 3 periods/following year = 12 periods/years 2-5 = 4 periods) => 19 periods The generation report for standard market data shifts therefore generates 19 standard shifts according to the scenario ID, version date, and the periods included. Page 19 of 39

5.2 Create Sample Assets 5.2.1 Introduction This function enables you to create sample assets whose content has been described using transaction /TCIP/SCENARIO_3 (see 3.1 Define Planning Scenarios).

To call the report, use transaction /TCIP/MASSET_2. The following screen appears: Fig. 22: Create Sample Assets The sample assets for each hierarchy node (see 3.

20 5.2 Create Sample Assets Introduction This function enables you to create sample assets whose content has been described using transaction /TCIP/SCENARIO_3 (see 3.1 Define Planning Scenarios) Details and Execution You can use this report to create sample assets that you have already described using transaction /TCIP/SCENARIO_3 (see 3.1 Define Planning Scenarios). To call the report, use transaction /TCIP/MASSET_2. The following screen appears: Fig. 22: Create Sample Assets The sample assets for each hierarchy node (see 3.1 Define Planning Scenarios) are multiplied out along the timeline specified by the scenario period. The sample assets are created by scenario (or horizon if applicable) and key date. The key date here means the planning key date. If you select the Individual SA Selection checkbox, a maintenance dialog appears in which you can explicitly further restrict the sample assets to be created. Page 20 of 39

Assets Only checkbox or the Individual SA Selection checkbox, a downstream selection dialog appears in which you can restrict the sample assets to be created.

21 Fig. 23: Create Sample Assets By selecting the checkboxes (in the Selection column), you ensure that only the assets selected here are created. If you select the Delete All checkbox, all selected sample assets are deleted. If you select the Delete Selected S. Assets Only checkbox or the Individual SA Selection checkbox, a downstream selection dialog appears in which you can restrict the sample assets to be created. However, in contrast to the Individual SA Selection checkbox, existing sample assets that are semantically identical to the selected sample assets are deleted beforehand in order to exclude duplicates. Note Use the Delete Selected S. Assets Only checkbox during adjustment runs for sample assets that have already been created. When the program is executed, the system first checks whether you have selected either of the two deletion options by selecting the checkboxes. If you have selected the Delete All option, all sample assets based on your selection criteria are deleted. Note Because sample assets have been created from a technical perspective as risk objects, make sure that you delete only those risk objects that were originally created by the planning application. Risk objects are created depending on the product type; in other words, the import structures for the risk object are filled depending on the context for each product type. Page 21 of 39

5.3 Virtual Interest Fixing 5.3.1 Introduction In virtual interest fixing, variable-rate interest flows that have not yet been fixed undergo virtual interest fixing so that their contribution is

2 Details and Execution Among the positions to be taken into account as part of capital investment planning, there may also be positions with variable interest conditions.

22 5.3 Virtual Interest Fixing Introduction In virtual interest fixing, variable-rate interest flows that have not yet been fixed undergo virtual interest fixing so that their contribution is taken into account for the scenario-dependent result Details and Execution Among the positions to be taken into account as part of capital investment planning, there may also be positions with variable interest conditions. In this context, variable means that the interest flows of this position are based on a particular reference interest rate (such as the 3 month Euribor). To, in turn, enable a future cash flow to be calculated, the interest rate has to be fixed on a specific date at the start of the calculation period. This means that the market rate of the reference interest rate (such as the 3 month Euribor) that is valid on that date is used as the fixing interest rate. The future cash flow is then calculated on the basis of the interest rate, the interest calculation method (360/360, for example), and the interest calculation period (for example, XXXX to XXXX). All cash flows with a due date after the planning key date and a fixing date before the planning key date are already fixed since this fixing is ensured operationally. However, for all flows whose due date and fixing date are both after the planning key date, the currently valid market interest rate and potential future developments of the interest rate are unknown. Fig. 24: Virtual Interest Fixing To obtain the most complete picture of future periods for all positions, it is essential that positions with variable interest rates are fixed virtually. This naturally raises the question of what interest rate should be set. To decide this, you need to determine which planning key figures will be influenced by a virtually fixed interest rate. The result of interest fixing influences the following key figures: 1. Future cash flows in nominal amounts in individual planning periods. 2. These future cash flows, in turn, influence the amount of future reinvestment flows. 3. The interest amount also influences the regular accounting result in the form of interest revenues and interest expenses to be accrued/deferred. Accrual/deferral must also be periodbased. 4. Future realized interest revenues and expenses also result from virtual interest fixing and these, in turn, influence own key figures and regular revenue. 5. Virtually fixed interest amounts also influence the market value calculation for individual products. To perform virtual interest fixing, proceed as follows: Call transaction /TCIP/SIM_VAL3. The following screen appears, on which you make the required entries. Page 22 of 39

23 Fig. 25: Virtual Interest Fixing In virtual interest fixing, variable-rate interest flows that have not yet been fixed undergo virtual interest fixing so that their contribution is taken into account for the scenario-dependent result. Page 23 of 39

5.4 Virtual Accrual/Deferral 5.4.1 Introduction This function enables you to accrue/defer the virtual interest fixing flows and thereby create a periodspecific statement for the respective planning period (horizon).

words, to accrue/defer them. The system uses this report to carry out accrual/deferral for the virtually fixed interest rates and saves the results.

24 5.4 Virtual Accrual/Deferral Introduction This function enables you to accrue/defer the virtual interest fixing flows and thereby create a periodspecific statement for the respective planning period (horizon) Details and Execution To obtain correctly accrued/deferred accounting valuation results, it is important to distribute interest revenues according to their period assignment; in other words, to accrue/defer them. The system uses this report to carry out accrual/deferral for the virtually fixed interest rates and saves the results. To call the report for virtual accrual/deferral, use transaction /TCIP/SIM_VAL4. Fig. 26: Virtual Accrual/Deferral Note Make sure that the key date is identical to the date chosen in the previous steps. Page 24 of 39

5.5 Calculation of Scenario-Dependent Key Figures 5.5.1 Introduction This function enables you to calculate a market value in future periods for positions.

for all positions (actual positions and sample assets) for each scenario based on the selected key date.

Basic key figures such as accrual/deferral results are also determined.

25 5.5 Calculation of Scenario-Dependent Key Figures Introduction This function enables you to calculate a market value in future periods for positions Details and Execution Execute this report to first calculate a market value for future period ends for all positions (actual positions and sample assets) for each scenario based on the selected key date. This market value is used as a basis for the simulated valuation in the next step. Basic key figures such as accrual/deferral results are also determined. To call this report, use transaction /TCIP/SIM_VAL1. Fig. 27: Calculation of Scenario-Dependent Key Figures Page 25 of 39

5.6 Calculation of Planning/Projection Key Figures 5.6.1 Introduction This function enables you to perform a simulated valuation of all positions in future periods. 5.6.2 Details and Execution This report performs a simulated valuation of all positions in future periods based on the periodspecific market values determined in the previous step.

26 5.6 Calculation of Planning/Projection Key Figures Introduction This function enables you to perform a simulated valuation of all positions in future periods Details and Execution This report performs a simulated valuation of all positions in future periods based on the periodspecific market values determined in the previous step. This valuation is performed according to the same principles as the real accounting valuation of actual positions. Actual positions and sample assets are both valuated according to parallel valuation areas in the future periods of a scenario. To call this report, use transaction /TCIP/SIM_VAL2. Fig. 28: Simulated Valuation Page 26 of 39

6 Checking of Settings and Results of Planning and Projection 6.1 Market Data Shifts 6.1.1 Check/Comment on Shift Rules 6.1.1.1 Introduction Based on the settings described in 3.

Manual changes are generally not necessary here. To call the report, use transaction /TCIP/SCENARIO_4. Fig. 29: Check/Comment on Shift Rules 6.1.2 Maintain Market Data Shifts 6.1.2.1 Introduction This function enables you to generate rules for market data shifts.

27 6 Checking of Settings and Results of Planning and Projection 6.1 Market Data Shifts Check/Comment on Shift Rules Introduction Based on the settings described in 3.1 Define Planning Scenarios, corresponding market data shifts are created automatically based on the respective planning interval Details and Execution This report enables you to check the assignment of the created market data shifts and to adjust them if required. Manual changes are generally not necessary here. To call the report, use transaction /TCIP/SCENARIO_4. Fig. 29: Check/Comment on Shift Rules Maintain Market Data Shifts Introduction This function enables you to generate rules for market data shifts Details and Execution The rules for market data shifts are generated automatically using the report Pl./Pr.: Generate MD Shift Tables. To call the report, use transaction /TCIP/SCENARIO_5. You can view the generated rules in the SAP standard context using the transaction JBR0 (Maintain Market Data Shifts). Example Page 27 of 39

28 Fig. 30: Generation of Market Data Shift Rules The following values are always encrypted in the shift text: Scenario Horizon Version The shift rules are required downstream for the simulated valuation of market values. Page 28 of 39

6.2 Key Figure Validation and Calculation Result Logging 6.2.1

1 Introduction This function enables you to validate and check all results generated by various subfunctions of the planning solution. 6.2.1.2

the various subfunctions of the planning solution. The set of calculated key figures is displayed for each planning interval.

29 6.2 Key Figure Validation and Calculation Result Logging Analysis of Simulated Key Figures Introduction This function enables you to validate and check all results generated by various subfunctions of the planning solution Details and Execution Execute the report Planning/Projection: Analysis of Simulated Key Figures to validate and check all results generated by the various subfunctions of the planning solution. The set of calculated key figures is displayed for each planning interval. To call the report, use transaction /TCIP/GENERAL_5. Fig. 31: Analysis of Simulated Key Figures Make the desired selection and choose Execute. Double-click to go to the detail view of the simulated market value determination. The system displays the simulated market values (on which the simulated valuation is based) by horizon. Page 29 of 39

6.2.2 Calculation Result Logging 6.2.2.1 Introduction This function enables you to display log data.

runs using the report Planning/Projection: Display Log Data.

30 6.2.2 Calculation Result Logging Introduction This function enables you to display log data Details and Execution You can display the results of the planning and projection calculation runs using the report Planning/Projection: Display Log Data. To call the report, use transaction /TCIP/GENERAL_3. You can display the log data separately for each product group. Fig. 32: Display Log Data Page 30 of 39

7 Reorganization of Planning and Projection Calculation Runs 7.1 Delete Scenario Data 7.1.1 Introduction This function enables you to delete scenario data. 7.1.2 Details and Execution You can use the report Plan.

To call this report, use transaction /TCIP/GENERAL_6.

31 7 Reorganization of Planning and Projection Calculation Runs 7.1 Delete Scenario Data Introduction This function enables you to delete scenario data Details and Execution You can use the report Plan./Proj.: Selective Deletion of Data from Planning/Projection, for example, to delete the virtual interest fixing for a planning scenario for a particular key date. To call this report, use transaction /TCIP/GENERAL_6. You can delete the following data: - Virtual interest fixing - Simulated accrual/deferral for virtual interest fixing - Market values and interest accrual/deferral - Simulated valuation Before you start the update run, you can perform a test run. Fig. 33: Test Run for Deletion of Data from Planning and Projection Solution Page 31 of 39

7.2 Delete Sample Assets 7.2.1 Introduction This function enables you to delete sample assets. 7.2.2 Details and Execution You can delete sample assets for a particular scenario using the report "Planning/Projection: Delete Sample Assets".

32 7.2 Delete Sample Assets Introduction This function enables you to delete sample assets Details and Execution You can delete sample assets for a particular scenario using the report "Planning/Projection: Delete Sample Assets". To call the report, use transaction /TCIP/MASSET_7. Fig. 34: Delete Sample Assets Page 32 of 39

33 8 Extraction of Planning Key Figures to the SAP BW System Within the planning application, the ERP system functions as a central computational kernel to provide all of the key figures required for planning and projection (abbreviated as Pl./Pr. in the system). The actual planning and projection takes place in the SAP BW system on the basis of plan values provided by means of extractors. 8.1 Extraction of Planning Values for Subledger Positions The simulated planning key figures that result from the following planning functions are transferred to the BW system using the /TCIP/NB_FLOWS DataSource. Simulated, scenario-dependent market value determination Simulated accrual/deferral Simulated valuation 8.2 Extraction of Planning Values for Sample Assets The simulated planning key figures that result from the following planning functions are transferred to the BW system using the /TCIP/MA_FLOWS DataSource. Simulated, scenario-dependent market value determination Simulated virtual accrual/deferral Simulated valuation The header data for the sample assets is transferred to the BW system using the /TCIP/MA_ATTR DataSource. 8.3 Extraction of Planning Hierarchy The extraction of the planning hierarchy is triggered from the BW system. From a technical perspective, this involves the RFC-enabled function module /TCIP/EXTRACT_PL_HIER_ATTR that presents financial objects from the ERP system in the hierarchy structure required for the BW system. Which data is to be extracted depends mainly on the planning hierarchy characteristics that you define. The customer-specific derivation logic of the financial objects for the various nodes of the planning hierarchy therefore needs to be implemented using the Business Add-In (BAdI) /TCIP/BI_EXTRACT_HIER_BADI. The corresponding BAdI implementation is called within the function module. Page 33 of 39

34 9 Planning and Projection in the SAP BW System Because user interfaces must be designed according to the specific needs of the customer, they are not delivered as part of the capital investment planning solution. However, the logic that underlies the planning and projection function and that has to be integrated on a customer-specific basis as part of the project is still described here. The central planning function in the capital investment planning solution is the planning and projection algorithm (Pl./Pr.algorithm). The basic idea behind the planning and projection algorithm is to clear any cash flow surpluses or deficits that arise by reinvesting in a sample asset or by using the sample asset as a financing source and is therefore based on the Complete Financial Budget. The level at which this clearing takes place is determined by the following factors: Budget category (node in the position hierarchy that contains assets) Calendar month Scenario The cash flow for this level depends on the following elements: Cash flow from assets in the position Cash flow from the position developments entered by the user at budget category level Cash flow from automatic reinvestments or financing from sample assets The planning and projection algorithm runs as follows: Note For the sake of simplicity, the scenario is not considered in the description. In the rest of the points, only one scenario is considered. 1. The months that are relevant for the projection or planning are determined. For projection, this includes all months between the projection key date and the end of the year. For planning, this includes all months between the start of the following year (as viewed from the planning key date) and the end of the planning horizon (currently five years). 2. For each level (identified by month and budget category), the following logic is processed whereby the levels are processed in an ascending monthly sequence: a. Determination of cash flow balance from assets in the position, sample assets, and manually entered developments in the cash flow position. b. If this balance is not equal to zero, the system searches for the sample asset relevant for the level. If no sample asset is found, the calculation terminates at this point with a corresponding error message. c. The values of the sample asset found (cash flow values and associated accounting values) are scaled. For this, a factor is generated for the month being examined from the Cash Flow balance (with no reinvestment) and the cash flow from reinvestment in sample assets. All values of the sample asset are multiplied by this factor. d. The scaled values of the sample asset are transferred to the other levels according to their chronological assignment. During this process, the accounting values of a sample asset are also taken into account in addition to its cash flows. The values are stored in the sample asset of the budget categories that is intended for reinvestments. To identify individual reinvestments, the counter in the "Reinvestment Cycle" characteristic is increased by 1 for each reinvestment. Page 34 of 39

35 The following example is provided to clarify this process further: Beispiel In the year 201X, there is a single asset in the position. This asset results in a revenue posting of 30 that is relevant for payment in the month X. The book value of this asset in X is expected to be A position increase of 20 is also planned for x. This can be represented as follows for the relevant budget category: Key Figure/Month X X X X Cash flow (from assets in position) 30 Cash flow (from position developments) 20 Cash flow (balance with no reinvestment) Cash flow (reinvestment) - Cash flow (total balance) Revenue (from assets in position) 50 Revenue (from reinvestments) - Revenue (total) 50 Book value (from assets in position) 1000 Book value (from reinvestments) - Book value (total) 1000 In this case, the cash flow (total balance) for X is negative. A sample asset is found for this level (budget category/month) that has the following information (displayed here for the projection time frame only): Key Figure/Month X X X X Cash flow (investment amount) -10 Cash flow (revenue) 1 Revenue 1 Book value 9 A factor of 5 and the following overview are generated for the required reinvestment amount of -50: Key Figure/Month X X X X Cash flow (investment amount) -50 Page 35 of 39

36 Key Figure/Month X X X X Cash flow (revenue) 5 Revenue 5 Book value 45 The sample asset is inserted into the budget category in this form: Key Figure/Month X X X X Cash flow (from assets in position) 30 Cash flow (from position developments) 20 Cash flow (balance with no reinvestment) Cash flow (reinvestment) Cash flow (total balance) Revenue (from assets in position) 50 Revenue (from reinvestments) - 5 Revenue (total) 50 5 Book value (from assets in position) 1000 Book value (from reinvestments) 45 Book value (total) 1045 The cash flow for the month X is now cleared. Since the cash flow is cleared, no activities are required for X either. A cash flow balance of -5 has arisen in X as a result of the revenue payment for the sample asset created. This must be neutralized. The system searches for another suitable sample asset for this purpose. Here is the scaled representation: Key Figure/Month X X X X Cash flow (investment amount) -5 Cash flow (revenue) Revenue Book value 5 Page 36 of 39

37 When the second sample asset is taken into account, the budget category now looks as follows: Key Figure/Month X X X X Cash flow (from assets in position) 30 Cash flow (from position developments) 20 Cash flow (balance with no reinvestment) Cash flow (reinvestment) -50 Cash flow (total balance) Revenue (from assets in position) 50 Revenue (from reinvestments) - 5 Revenue (total) 50 5 Book value (from assets in position) 1000 Book value (from reinvestments) 50 Book value (total) 1050 The projection finishes here since the cash flow for X is cleared. The evaluation produces the following projection result: Key Figure Total From Position From Reinvestment Revenue Book value The example above explains the general procedure for the planning and projection algorithm. The following notes provide more details: 1. The level of granularity (with reference to the key figures displayed) at which the algorithm described above works depends on the key figure category. If the revenue is split into ordinary and extraordinary components, for example, the planning and projection algorithm also delivers a result at this level. Corresponding sample asset values must of course be provided for this. The example above was intentionally kept simple. 2. Cash flows, revenues, and so on are recorded in the system with their dates. However, for the sake of simplicity (especially for the required sample assets), we assume that the cash flows are cleared on a monthly rather than a daily basis. 3. Each individual reinvestment can be traced (expanded and reported) in the planning and projection dataset. The "Reinvestment" characteristic of the data model is used for this. For reasons of clarity, this was not visualized in the representation provided in the example. 4. The clearing described above is based on values in local currency only. Position currency information is also included statistically (if it exists). 5. In phase 1 of the project, sample assets are also used for position reductions. We assume that the required amount can be "financed" using the conditions reflected in the sample asset. Page 37 of 39

38 To ensure that the most realistic model possible is developed, the search algorithm for finding a sample asset then distinguishes between investments and divestments. Page 38 of 39

39 10 Configuration and -Specific Adjustments For all information regarding configuration, see the Configuration Guide for the capital investment planning solution. For more information, see SAP Service Marketplace at SAP Support Portal Software Downloads Installations and Upgrades A Z Index C CAPITAL INVEST. PLANNING CAPITAL INVEST. PLANNING 1.0. Page 39 of 39

Configuration of Warehouse Management with Preconfigured Processes

Configuration of Warehouse Management with Preconfigured Processes CUSTOMER Document Version: 2012_SP35 January 25, 2013 Copyright Copyright 2013 SAP AG. All rights reserved. SAP Library document classification: