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Financial Contract Analysis for SAP BI-IPM

Applies to:


SAP BI , SAP CRM – Intellectual Property Management


Summary:


This Article answers various questions on how to model financial contract analysis buckets in BI for SAP CRM


IPM solution


Author : Kamlakant Mishra


Company : Capgemini US LLC


Updated on : July 31′ 2013


Kamlakant is responsible for delivering a SAP Reporting Solution for one of the Media & Entertainment Client of Capgemini. He works as a Manager in SAP BI & EPM space within the BIM SL of Capgemini. Kamlakant is SAP Certified BPC 10.0 Managing consultant, holds B-Tech (Gold Medalist) in Electronics Engineering & MBA in Supply Chain Management.


FCA answers various questions for which the organization is seeking answers viz. What is the value of contracts that meet specific criteria? How much of it could be considered as earned revenue? What portion of this earned revenue is billed? Did customer pay what we billed? Are there any payments that could not be associated contract (Cash on Account)? What is the effect of Foreign Exchange variations (F/X Variation) on international deals? Is it favorable or un-favorable?


Financial Contract Analysis (FCA) is an important activity that needs to be performed to check the health of an organization and ensure the profitability. While most of the revenue comes from TV Deals, analyzing these deals is not simple. This document provides a solution to this problem through a series of complex transformations of data in a layered approach.


The Challenge:

While the SAP solution for media (IPM) provides a frame work for by-title FCA using the Special Purpose Ledger (FI-SL) data, granularity of data needs to be refined for analysis and reconciliation purposes. Also, there are several characteristics that are to be derived based on the data available. FCA needs to serve as the basis to Title/Deal/Scope level splitof A/R data.


The Solution:


The cash ledger (C3 – Ledger) data is pulled in BW system and is stored in a staging Data Store Object (DSO) after deriving the profit center, location code, and cost type information. This data is also stored in a corporate database data store object called FCA corp. data DSO at document item level for quick look-up and audit purposes. The data from staging DSO is then transformed into desired format by using complex coding that uses the reason codes, account numbers, document types to classify the data into various measures (amount fields/ key figures) called FCA buckets and is stored in a second level DSO. The transformed data is stored in a data mart (InfoCube) for quick reporting.


Here are the FCA buckets :


FCA Buckets


Total Sales


Recognized Revenue (Total Earned Revenue)


Unrecognized Revenue (Total Unearned Revenue)


Total Billed


Total Unbilled


Paid (Total Cash Applied) or (Billed / Paid)


Billed /Paid Withholding Taxes


Unpaid (Billed / Unpaid)


Cash on Account


Financial Contract Analysis for SAP BI-IPM


Generated by Jive on 2012-10-08+02:00


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Foreign Exchange Gain / Loss


Total Receivables


Earned Revenues Billed


Earned Revenues Unbilled


Earned Revenues Paid


Earned Revenues Unpaid


Total Earned Receivables


Unearned Revenues Billed


Unearned Revenues Unbilled


Unearned Revenues Paid


Unearned Revenues Unpaid


Total Unearned Receivables


Earned Revenues Paid Withholding Taxes


Unearned Revenues Paid Withholding Taxes


Earned Foreign Exchange Gain / Loss


Unearned Foreign Exchange Gain / Loss


Accrued Billed WH taxes


Accrued Unearned Billed WH taxes


Financial Contract Analysis for SAP BI-IPM


Generated by Jive on 2012-10-08+02:00


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