Financial Contract Analysis for SAP BI-Intellectual Property Management
This Article answers various questions on how to model financial contract analysis buckets in BI for SAP CRM IPM solution
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.
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 split of A/R data.
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 :
Recognized Revenue (Total Earned Revenue)
Unrecognized Revenue (Total Unearned Revenue)
Paid (Total Cash Applied) or (Billed / Paid)
Billed /Paid Withholding Taxes
Unpaid (Billed / Unpaid)
Cash on Account
Foreign Exchange Gain / Loss
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