Business Planning Profitability and Cost Consolidation Management

Business Planning Profitability and Cost Consolidation Management

Business Planning Profitability and Cost Consolidation Management
  Business Planning Profitability and Cost Consolidation Management 

SAP is the world's most innovative software company as not only do they produce software to meet the needs of their customers but also give them a plethora of options. Enterprise Performance Management (EPM) software generally is used to provide management information for decisions to be made from a position of evidence-based knowledge and insight.
In the UK, consulting in EPM is largely about BPC (Business Planning and Consolidation) as the majority of firms use it to produce statutory reporting and financial consolidations but specifically legal consolidations.Profitability and Cost Management is seen as a necessary but additional level of analysis which adds the element of realism to business planning.
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Legal Consolidation as a feature is offered in SAP BPC and is vital for businesses because its essentially a true-up of the group accounts for an entire business and its subsidiaries.
The reality of businesses today is that acquisitions and mergers need to be assessed for value and viability and SAP PCM and SAP BPC together provide the means to do this.
I worked with an investment firm who were interested in performing profitability analysis on potential mergers and acquisitions.
The only way to do this in a way that would make it more realistic was to consolidate totals and build profitability models built on the assumed structure of the business post-transformation.  It is actually surprising that this type of analysis is not more common given the huge investment and business transformation involved in mergers and acquisitions, and the trend that shows they can sometimes be the reason for the loss of value rather than the creation of value.
The Finance Transformation was done using BPC models and the Controlling Transformation done using PCM models.
A seamless platform for SAP Analytics where BPC Models feed ERP, consolidated and planning data to PCM models and PCM models, in turn, write back profitability data, predictive and Monte Carlo scenario analysis data into BPC models.  Which of your possible futures do you want to end up in? Want to leave it to chance? Then start business planning profitability for cost (and revenue) consolidation.
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The Author: Michael Mkpadi

Business Planning and Consolidation System Manager
Extensive experience in Activity Based Costing and other cost allocation methodologies. Performance Management Analysis and Reporting (SLR,PLIC,Dynamic Insight) experience. Scorecards, Shared Service Costing, Whole Life Costing, Cost Benefit Analysis, Process Re-engineering. Profitability and Overhead analysis.  Leading multiple Enterprise Performance Management Projects. Experienced practitioner for Quality Assurance on Performance Management, Business Intelligence and Enterprise Information Management at Enterprise level.  SAP Author of SAP Profitability and Cost Management - 
Modeling (Ebite Series)  Strategic Methodologies for Best Practice SDLC, including Agile and Quality Assured Project Delivery.  SAP EPM Certified Consultant (BPC,PCM,SSM) SAP PCM Pre-Sales Certified Consultant SAP Hana Certified Consultant  Specialties: SAP PCM, SAP BPC, BPC Script Logic, BPC Allocations, ABAP and BADI development, Prodacapo ABM, SAP DataServices, ETL, C++, VB, PHP Prince 2, Business Objects Universe Designer, DBA, Business Systems Engineering

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